ESNT Essent Group Ltd.

Overview and Growth

In fiscal 2025, Essent Group Ltd. recorded $1.26B of revenue, net income of $689.97M, and an operating cash inflow of $856.05M. The $1.26B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Revenue was 1.5% above fiscal 2024 revenue of $1.24B, marking a year-over-year increase. Diluted earnings per share were $6.90, translating the period’s attributable earnings into the amount reported for each diluted share. Against diluted EPS of $6.85 in fiscal 2024, the current result was 0.7% higher. The diluted weighted-average share count was 100.02M, linking total earnings with the per-share result received by shareholders. Total assets stood at $7.44B, showing the scale of resources supporting revenue, earnings, liquidity, and financing. Revenue equaled 0.17x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

Net income came to $689.97M, completing the progression from revenue through gross and operating profitability to the final reported result. Measured against reported revenue, net income produced a 54.7% margin after operating costs and the remaining recognized items. The earnings statement records $821.86M of pretax income, the profit base against which the reported tax provision can be assessed. Pretax income represented 65.2% of revenue, placing earnings before tax in the context of the company’s operating scale. The company recognized $131.89M of income tax for the period, completing the transition from pretax income to net income. The income-tax provision equaled 16.0% of pretax income, showing the tax burden absorbed by the year’s earnings. Net income equaled 12.0% of period-end equity, showing the earnings generated on shareholders’ book capital. Net income represented 9.3% of period-end assets, placing the company’s bottom-line result against the total resource base employed. The company moved from fiscal 2024 net income of $729.40M to $689.97M, with the current outcome ending below that comparison.

Liquidity and Capital Structure

At period end, the $7.44B asset base was financed through $1.68B of liabilities and $5.76B of equity. Reported cash and equivalents were $123.05M, separating immediately recognizable cash resources from the rest of the current-asset base. Equity equaled 77.4% of assets, showing the shareholder-capital layer within the company’s balance sheet. The liabilities-to-assets relationship was 22.6%, placing reported obligations against the full positive asset balance. The cash-to-assets relationship was 1.7%, comparing reported cash and equivalents with the full positive asset balance. The asset base changed 4.6% from $7.11B in fiscal 2024, leaving current total assets higher year over year. Against $5.60B of equity in fiscal 2024, the current book-equity balance moved 2.7% and ended higher. The reported cash balance changed 6.4% from $131.48M in fiscal 2024, ending lower year over year.

Cash Flow and Earnings Quality

Cash flow from operations was $856.05M, a reported cash inflow that can be compared directly with net income and capital spending. Against net income, operating cash flow measured 1.24x, showing the relationship between accrual earnings and operating cash. The cash-flow statement records $7.36M of capital expenditures, the investment amount considered after operating cash generation. Capital spending absorbed 0.9% of operating cash flow, quantifying the share of cash from operations directed to investment. After capital spending, free cash flow was $848.69M, leaving cash available for debt reduction, shareholder returns, or further investment. Free cash flow represented 67.3% of revenue, linking post-investment cash generation with the company’s operating scale. The free-cash-flow-to-assets relationship was 11.4%, comparing post-investment cash with the balance-sheet asset base. Compared with $861.53M in fiscal 2024, current operating cash flow of $856.05M was below the prior result.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.