Mortgage insurance provider NMI Holdings (NASDAQ: NMIH) reported Q2 CY2026 results exceeding the market’s revenue expectations, with sales up 8.1% year on year to $187.9 million. Its non-GAAP profit of $1.38 per share was 7.6% above analysts’ consensus estimates.

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Adam Pollitzer, President and Chief Executive Officer of National MI, said, “In the second quarter, we again delivered standout operating performance, consistent growth in our high-quality insured portfolio, and record financial results. We have a strong customer franchise, a talented team driving us forward every day, an exceptionally high-quality book covered by a comprehensive set of risk transfer solutions, and a robust balance sheet supported by the significant earnings power of our platform. Looking forward, we’re well positioned to continue delivering differentiated growth, returns and value for our shareholders.”

Company Overview

Founded in the aftermath of the 2008 housing crisis to bring new capacity to the mortgage insurance market, NMI Holdings (NASDAQ: NMIH) provides mortgage insurance that protects lenders against losses when homebuyers default on their mortgage loans.

Revenue Growth

Insurance companies generate revenue three ways. The first is the core insurance business itself, represented in the income statement as premiums earned. The second source is investment income from investing the “float” (premiums collected but not yet paid out as claims) in assets such as fixed-income assets and equities. The third is fees from policy administration, annuities, and other value-added services. Over the last five years, NMI Holdings grew its revenue at a solid 10% compounded annual growth rate. Its growth beat the average insurance company and shows its offerings resonate with customers, a helpful starting point for our analysis.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. NMI Holdings’s annualized revenue growth of 8.8% over the last two years is below its five-year trend, but we still think the results were respectable.

This quarter, NMI Holdings reported year-on-year revenue growth of 8.1%, and its $187.9 million of revenue exceeded Wall Street’s estimates by 1.5%.

Net premiums earned made up 87.4% of the company’s total revenue during the last five years, meaning NMI Holdings barely relies on non-insurance activities to drive its overall growth.

Net premiums earned command greater market attention due to their reliability and consistency, whereas investment and fee income are often seen as more volatile revenue streams that fluctuate with market conditions.

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Book Value Per Share (BVPS)

Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float (premiums collected but not yet paid out) is invested, creating an asset base supported by a liability structure. Book value per share (BVPS) captures this dynamic by measuring these assets (investment portfolio, cash, reinsurance recoverables) less liabilities (claim reserves, debt, future policy benefits). BVPS is essentially the residual value for shareholders.

We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality. While other (and more commonly known) per-share metrics like EPS can sometimes be lumpy due to reserve releases or one-time items and can be managed or skewed while still following accounting rules, BVPS reflects long-term capital growth and is harder to manipulate.

NMI Holdings’s BVPS grew at an incredible 16.7% annual clip over the last five years. BVPS growth has also accelerated recently, growing by 19.9% annually over the last two years from $25.65 to $36.88 per share.

Key Takeaways from NMI Holdings’s Q2 Results

It was good to see NMI Holdings narrowly top analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Overall, this print had some key positives. The stock remained flat at $43.45 immediately following the results.

Is NMI Holdings an attractive investment opportunity right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).