At a glance
NMI Holdings Inc is worth $3.17B, about 9 times its fiscal 2025 earnings. Revenue grew 8.5% to $706.4M in fiscal 2025, with 55.1% kept as profit; over 5 years it has grown 10.3% a year. It pays no dividend; it spent $350.9M buying back its shares over FY2021–FY2025. The stock returned +17.1% over the past year with dividends reinvested and +11.7% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 67.7% in the 2020 crash (S&P 500: 33.7%) and 41.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 40 months and 13 months after the lows.
The business in plain English
NMI Holdings provides private mortgage insurance across the US through its main subsidiary, NMIC, which is licensed in all 50 states and D.C. Mortgage insurance protects lenders and investors, not the homeowner, against part of the loss if a borrower stops paying. It is used mostly on loans where the borrower makes a down payment of less than 20%. Fannie Mae and Freddie Mac are the government-sponsored enterprises that purchase the most home loans from lenders. They generally cannot take these loans without this kind of protection.
As of December 31, 2025, NMI had 2,193 lender customers. They range from national mortgage banks and credit unions to community banks, builder-owned lenders and online lenders. It insured $221.4 billion of mortgages (its insurance in force). Its share of potential losses on those loans (its risk in force) was $59.3 billion. It wrote $48.9 billion of new coverage in 2025 and had 225 employees.
NMI makes money mainly from the premiums it charges. Either the borrower or the lender pays, and lenders can pass the cost to borrowers through higher rates or fees. Coverage levels range from 6% to 35%, and premiums rise with coverage. Revenue was $706.4 million in fiscal 2025, up 8.5%. Mortgage insurance is the core business. A subsidiary, NMIS, also offers loan review services to lenders.
Price history
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NMIH +17.1% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $187.9M, up 8.1% from a year earlier, and net income was $105.8M (+10.0%).
- For fiscal 2025, revenue was $706.4M (+8.5% year over year; +10.3% a year from FY2020 to FY2025) with a 55.1% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +10.3% good |
|---|---|
| Free cash flow margin | 58.4% good |
| Return on equity (FY2025) | 15% good |
| Return on assets (FY2025) | 10.1% good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $433.3M | $171.6M | $240.4M |
| FY2021 | $485.1M | $231.1M | $313.5M |
| FY2022 | $523.3M | $292.9M | $302.8M |
| FY2023 | $579.0M | $322.1M | $333.3M |
| FY2024 | $651.0M | $360.1M | $386.7M |
| FY2025 | $706.4M | $388.9M | $412.5M |
Valuation snapshot
| Market value | $3.17B |
|---|---|
| P/E ratio | 8.6 |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
NMI Holdings’s market value went from $629.8M at the end of 2016 to $3.17B on Oct 28, 2026, about 5.0 times as much; since the end of 2025 it is up 1%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $3.17B | +1.0% |
| 2025 | $3.14B | +7.8% |
| 2024 | $2.91B | +20.9% |
| 2023 | $2.41B | +37.8% |
| 2022 | $1.75B | -6.8% |
| 2021 | $1.87B | -2.5% |
| 2020 | $1.92B | -14.8% |
| 2019 | $2.26B | +90.6% |
| 2018 | $1.18B | +16.0% |
| 2017 | $1.02B | +62.0% |
| 2016 | $629.8M |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| NMIH price data to Oct 28, 2026 | +3.2% | +17.1% | +16.3% | +11.7% | +18.6% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +3.2% |
| 2025 | +11.0% |
| 2024 | +23.9% |
| 2023 | +42.0% |
| 2022 | -4.3% |
| 2021 | -3.5% |
| 2020 | -31.7% |
| 2019 | +85.9% |
| 2018 | +5.0% |
| 2017 | +59.6% |
| 2016 | +57.3% |
| 2015 | -25.9% |
| 2014 | -28.3% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 67.7% over that stretch · deepest drop along the way 67.7%, back to its old high 40.4 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 6.2% over that stretch · deepest drop along the way 41.8%, back to its old high 13 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 12 sales ($16.2M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Sep 4, 2026 | Adam Pollitzer Chief Executive Officer, Director | sell | $7.7M |
| Feb 18, 2026 | Bradley M Shuster Executive Chairman, Director | sell | $2.2M |
| Feb 17, 2026 | Norman Peter Fitzgerald EVP, Chief Sales Officer | sell | $899K |
| Feb 26, 2026 | Bradley M Shuster Executive Chairman, Director | sell | $779K |
| Mar 5, 2026 | Bradley M Shuster Executive Chairman, Director | sell | $756K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 15.2% | Mar 31, 2025 |
| Vanguard Capital Management | 5.26% | Mar 31, 2026 |
ETFs with the most weight in NMIH
| GSC Goldman Sachs Small Cap Core Equity ETF | 1.54% |
| KBE SPDR S&P Bank ETF | 1.13% |
| FSCS First Trust SMID Capital Strength ETF | 1% |
| PSCF Invesco S&P SmallCap Financials ETF | 0.84% |
| SQLV Royce Quant Small‑Cap Quality Value ETF | 0.68% |
| FYT First Trust Small Cap Value AlphaDEX Fund | 0.66% |
| RZG Invesco S&P SmallCap 600® Pure Growth ETF | 0.53% |
| SVAL iShares US Small Cap Value Factor ETF | 0.53% |
What could go wrong
- A housing downturn could drive claims sharply higher. If many borrowers default, losses could far exceed NMI's expectations, especially in regions where its business may be concentrated. NMI also expects claims to rise as its insured loans grow and age.
- Heavy reliance on Fannie Mae and Freddie Mac. NMI must stay approved by Fannie Mae and Freddie Mac and meet their capital rules (PMIERs). It beat the requirement by 70% as of December 31, 2025. Losing approval or tougher rules would hurt.
- Premiums and reserves may prove too low. Prices are set when a policy is written, but claims can arrive years later. If premiums, or the reserves set aside for claims, fall short of actual losses, earnings could take an unexpected hit.
- Tough competition from rivals and government programs. NMI competes with five other approved private insurers, including MGIC, Radian and Essent, plus FHA, VA and USDA programs. Government programs accounted for an estimated 62% of low-down-payment loan volume in 2025.
- Fewer low-down-payment loans would shrink new business. Higher mortgage rates or a slower housing market could reduce the number of loans needing insurance. Rate shifts also change how long policies stay in force, which affects future premium income.
- Substantial debt and limits on subsidiary cash. NMI describes its debt as substantial. As a holding company, it depends on cash from its insurance subsidiaries, which regulators can restrict. It could need to raise more capital.
Recent events
- Quarterly results released
- Shareholder vote results
- Quarterly results released
- Executive or board change; Investor presentation or announcement
- Quarterly results released
- Quarterly results released
For income and retirement investors
NMI Holdings had paid no dividend as of its 10-K filed February 12, 2026, and it said it may not pay one in the future. For an income investor, returns come only from changes in the share price. Getting cash out would mean cashing in shares. NMI returns cash through share repurchases instead: $350.9 million over fiscal 2021–2025. That included $105.1 million in fiscal 2025, when net income was $388.9 million. Shares outstanding fell 12.2%, from 85.7 million in July 2021 to 75.2 million in July 2026.
The stock has fallen hard in downturns. In the 2020 COVID crash it dropped 67.7% between February 19 and March 23, 2020. It did not get back to that peak until August 2023. In the 2022 bear market it fell 41.8% from February to June 2022, then took 13 months to recover. The company was formed in 2011, so it has no record from the 2008 crisis. Single stocks like NMIH carry more risk than diversified funds.
Questions investors ask
How does NMI Holdings make money?
NMI Holdings makes money mainly by charging premiums for private mortgage insurance. This coverage protects lenders and investors against part of the loss if a borrower who put down less than 20% defaults. Its main subsidiary, NMIC, is approved by Fannie Mae and Freddie Mac. As of December 31, 2025, it insured $221.4 billion of mortgages and had 2,193 lender customers. Fiscal 2025 revenue was $706.4 million, and net income was $388.9 million.
Does NMI Holdings pay a dividend?
No. NMI Holdings had paid no dividend on its common stock as of its 10-K filed February 12, 2026, and it said it may not pay one in the future. It returns cash through share repurchases instead, totaling $350.9 million over fiscal 2021–2025. Its share count fell 12.2% between July 2021 and July 2026. Without a dividend, the only way to draw income from the shares is to cash some in.
Who are NMI Holdings' competitors?
NMI competes with five other approved private mortgage insurers: Arch Capital Group, Essent Group, Enact Holdings, MGIC Investment and Radian Group. It also competes with government programs run by the FHA, VA and USDA. Those programs accounted for an estimated 62% of low-down-payment loan volume in 2025, against 38% for private insurers. Piggy-back loans can also remove the need for mortgage insurance. With these, a second loan keeps the first mortgage at 80% of the home's value.
How has NMIH stock performed over the long term?
NMIH shares returned about 18.6% a year over the 10 years to October 28, 2026, and about 11.7% a year over five years. Those figures reflect price only, since the company pays no dividend. The path was uneven. The stock lost 31.7% in calendar 2020, slipped again in 2021 and 2022, then gained 42.0% in 2023. Its deepest drop from a peak since it began trading was 73.1%.
What is NMIH's P/E ratio?
NMIH's P/E ratio was about 8.6 as of October 28, 2026. That is based on fiscal 2025 diluted earnings of $4.92 per share, and the company's market value was about $3.17 billion. The price-to-earnings (P/E) ratio compares the share price with the profit behind each share. A low P/E can mean investors doubt how steady profits will be. That concern often applies to businesses whose losses can rise sharply in a housing or credit downturn.