Radian | 10-Q: FY2025 Q2 Revenue Misses Estimate at USD 318 M

Revenue: As of FY2025 Q2, the actual value is USD 318 M, missing the estimate of USD 324.88 M.

EPS: As of FY2025 Q2, the actual value is USD 1.02, beating the estimate of USD 0.9725.

EBIT: As of FY2025 Q2, the actual value is USD 175.01 M.

Total Mortgage Insurance revenues were $288.316 million in Q2 2025 and $285.983 million in Q2 2024, with H1 2025 revenues at $572.614 million compared to $571.006 million in H1 2024.

Provision for losses was $11.954 million in Q2 2025, compared to - $1.769 million in Q2 2024, and $27.294 million in H1 2025 compared to - $8.655 million in H1 2024.
Policy acquisition costs were $7.205 million in Q2 2025 and $6.522 million in Q2 2024, with H1 2025 costs at $13.593 million compared to $13.316 million in H1 2024.
Direct other operating expenses were $19.874 million in Q2 2025 and $17.157 million in Q2 2024, with H1 2025 expenses at $36.441 million compared to $34.427 million in H1 2024.
Allocated corporate operating expenses were $42.328 million in Q2 2025 and $43.197 million in Q2 2024, with H1 2025 expenses at $77.451 million compared to $77.706 million in H1 2024.
Interest expense was $17.428 million in Q2 2025 and $21.957 million in Q2 2024, with H1 2025 expenses at $33.917 million compared to $45.290 million in H1 2024.

Direct depreciation expense was $1.916 million in Q2 2025 and $2.069 million in Q2 2024, with H1 2025 expenses at $3.856 million compared to $3.992 million in H1 2024.
Loss Ratio was 5.1% in Q2 2025 compared to -0.8% in Q2 2024, and 5.8% in H1 2025 compared to -1.8% in H1 2024.
Expense Ratio was 29.7% in Q2 2025 compared to 28.5% in Q2 2024, and 27.3% in H1 2025 compared to 26.8% in H1 2024.

Mortgage Insurance adjusted pretax operating income was $189.522 million in Q2 2025 and $198.763 million in Q2 2024, with H1 2025 income at $383.815 million compared to $408.613 million in H1 2024.

Services revenue was $10.924 million in Q2 2025 and $13.265 million in Q2 2024, with H1 2025 revenue at $23.040 million compared to $25.853 million in H1 2024.

All Other adjusted pretax operating income (loss) was - $16.361 million in Q2 2025 and - $6.080 million in Q2 2024, with H1 2025 loss at - $19.820 million compared to - $13.113 million in H1 2024.

Total revenues were $318.004 million in Q2 2025 and $321.147 million in Q2 2024, with H1 2025 revenues at $636.118 million compared to $640.565 million in H1 2024.

Total expenses were $142.991 million in Q2 2025 and $133.024 million in Q2 2024, with H1 2025 expenses at $272.665 million compared to $253.793 million in H1 2024.

Pretax income was $175.013 million in Q2 2025 and $188.123 million in Q2 2024, with H1 2025 income at $363.453 million compared to $386.772 million in H1 2024.

Net income was $141.796 million in Q2 2025 and $151.903 million in Q2 2024, with H1 2025 income at $286.354 million compared to $304.257 million in H1 2024.

Basic net income per share was $1.03 in Q2 2025 and $0.99 in Q2 2024, with H1 2025 at $2.02 compared to $1.98 in H1 2024.
Diluted net income per share was $1.02 in Q2 2025 and $0.98 in Q2 2024, with H1 2025 at $2.00 compared to $1.96 in H1 2024.

Net cash used in operating activities was - $645.529 million in H1 2025 compared to - $156.238 million in H1 2024.

Net cash provided by investing activities was $231.310 million in H1 2025 compared to - $74.433 million in H1 2024.

Net cash provided by financing activities was $394.942 million in H1 2025 compared to $226.390 million in H1 2024.

Radian Guaranty has agreed to terms on three quota share reinsurance arrangements with third-party reinsurance providers, expecting to cede 30% of NIW starting July 1, 2025, and July 1, 2026, and 15% starting July 1, 2027, over three sequential one-year periods.

Radian Mortgage Capital completed two private label prime jumbo securitization transactions in H1 2025, issuing $368 million and $396 million of unregistered mortgage pass-through certificates.