Essent Group Ltd. reported third‑quarter 2025 results with net income of $164.2 million and earnings per share of $1.67, compared with $176.2 million and $1.65 in the same quarter last year. Revenue reached $311.83 million, and the company declared a quarterly cash dividend of $0.31 per share, payable on December 10, 2025 to shareholders of record on December 1, 2025.
The company’s earnings fell short of consensus expectations. Analysts had projected EPS of $1.75 (some cited $1.81), so the actual $1.67 missed the estimate by $0.08 (or $0.14). Revenue also missed the higher analyst forecasts—most estimates ranged from $315.73 million to $321.75 million—though it beat the Zacks consensus of $311.83 million. The revenue miss reflects softer mortgage originations and higher underwriting costs that weighed on the company’s top line, while the EPS miss is largely attributable to the revenue shortfall and a modest increase in operating expenses.
Net income declined year‑over‑year, but EPS rose slightly because Essent reduced its diluted share count. The share‑count reduction helped lift EPS from $1.65 to $1.67, yet the lower revenue and higher costs dragged net income down from $176.2 million to $164.2 million. Compared with Q2 2025, when net income was $195.3 million and EPS $1.93, the company’s profitability contracted, indicating a slowdown in the quarter‑to‑quarter performance.
Investors reacted negatively to the miss, with the stock trading down about 2.9 % in pre‑market sessions. Management’s comments underscored confidence in the business model: CEO Mark Casale said the results “demonstrate the strength and resilience of our franchise” and highlighted favorable credit trends and the benefits of the current interest‑rate environment. The company maintained its dividend policy and a $500 million share‑repurchase authorization through 2027, signaling ongoing capital returns.
Essent received a rating upgrade from Moody’s, moving its insurance financial‑strength rating to A2 and its senior unsecured debt rating to Baa2 with a stable outlook. The upgrade reflects the company’s solid balance sheet and continued profitability, providing a positive backdrop to the earnings miss.
Overall, the results paint a mixed picture. While the earnings miss and revenue shortfall may raise short‑term concerns, the company’s resilient business model, capital‑return strategy, and rating upgrade suggest that its long‑term trajectory remains on track.
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