Enact Holdings, Inc. operates as a private mortgage insurance company in the United States. The company engages in writing and assuming residential ...
Enact Holdings, Inc. (NASDAQ: ACT) is the parent company of Enact Mortgage Insurance Corporation, a leading private mortgage insurer in the United States. Founded in 1981 and based in Raleigh, North Carolina, Enact provides residential mortgage guaranty insurance to a broad range of financial institutions, including large money center banks, ...Enact Holdings, Inc. (NASDAQ: ACT) is the parent company of Enact Mortgage Insurance Corporation, a leading private mortgage insurer in the United States. Founded in 1981 and based in Raleigh, North Carolina, Enact provides residential mortgage guaranty insurance to a broad range of financial institutions, including large money center banks, non-bank lenders, national and local mortgage bankers, community banks, and credit unions. The company's core product is private mortgage insurance (PMI), which protects lenders against borrower default on residential mortgages, enabling borrowers to purchase homes with lower down payments. Enact also offers pool mortgage insurance, contract underwriting services, and mortgage-related reinsurance products, expanding its value proposition to clients. Financially, Enact demonstrates strong performance with a market capitalization around $6.83 billion, a price-to-earnings ratio of approximately 10.3, and a net profit margin of nearly 55%, reflecting efficient operations. The company's revenue per share is about $8.98, with a dividend yield of 1.8% as of the latest data, indicating a commitment to shareholder returns. With 419 full-time employees, Enact maintains a lean organizational structure while serving a vast network of over 1,800 lenders across the country. Under the leadership of President and CEO Rohit Gupta, who also serves as a director, Enact emphasizes responsible lending and homeownership. The company was formerly known as Genworth Mortgage Holdings, Inc. and rebranded to Enact in May 2021, marking a new chapter in its 40-year operating history. As a subsidiary of Genworth Holdings Inc., Enact benefits from strong parent backing while operating as a standalone publicly traded entity on NASDAQ since its IPO in September 2021. The company's business model is asset-light with minimal capital expenditures, generating substantial free cash flow, which underpins its ability to invest in technology, expand product offerings, and maintain industry-leading credit quality. Enact's mission centers on helping more people responsibly achieve and maintain the dream of homeownership, and its strategic focus includes prudent risk management, customer-centric innovation, and sustainable growth in the evolving housing finance market.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$1.2B
+2.4%
+1.7%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$674.2M
-2.0%
+4.2%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+91.1%
+16.4%
+1.6%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+69.8%
-4.5%
+1.4%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+54.8%
-4.3%
+2.5%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$724.5M
+5.6%
-47.1%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+58.9%
+3.1%
-48.0%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
13.9%
-8.6%
-1.0%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
6.86x
+24.7%
+1096.0%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Hello, and welcome to Enact's Second Quarter Earnings Call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker, Daniel Kohl, Vice President of Finance. You may begin.
Daniel Kohl: Thank you, and good morning. Welcome to our second quarter earnings call. Joining me today are Rohit Gupta, President and Chief Executive Officer; and Dean Mitchell, Chief Financial Officer and Treasurer. Rohit will provide an overview of our business performance and progress against our strategy. Dean will then discuss the details of our quarterly results before turning the call back to Rohit for closing remarks. We will then take your questions. The earnings materials we issued after market close yesterday contain our financial results for the quarter, along with a comprehensive set of financial and operational metrics. These are available on the Investor Relations section of our website. Today's call is being recorded and will include the use of forward-looking statements. These statements are based on current assumptions, estimates, expectations and projections as of today's date. Additionally, they are subject to risks and uncertainties, which may cause actual results to be materially different, and we undertake no obligation to update or revise such statements as a result of new information. For a discussion of these risks and uncertainties, please review the cautionary language regarding forward-looking statements in today's press release as well as in our filings with the SEC, which will be available on our website. Please keep in mind the earnings materials and management's prepared remarks today include certain non-GAAP measures. Reconciliations of these measures to the most relevant GAAP metrics can be found in the press release, our earnings presentation and our upcoming SEC filing on our website. With that, I'll turn the call over to Rohit.
Rohit Gupta: Thank you, Daniel. Good morning, everyone. Before discussing our second quarter results, I would like to begin by saying that our thoughts are with Tom McInerney, who is a valued member of our Board and strong supporter of Enact. We wish Tom a full and speedy recovery. I also want to express my support for Jerome Upton as he steps into the role of Interim President and CEO of Genworth. Jerome has been an important member of Genworth's leadership team as well as Enact's Board of Directors for many years, and I'm confident he will provide thoughtful and steady leadership during this time, and I look forward to our continued partnership. Turning to our results. Enact closed the first half of 2026 with another strong quarter, reflecting the disciplined execution of our strategy, resilient credit performance and our continued focus on long-term sustainable value creation. As a result of our strong performance, we are updating our 2026 capital return expectations to between $550 million and $600 million, up from our prior …