MGIC Investment Corp (NYSE:MTG) Reports Mixed Q3 2025 Results with Earnings Beat and Revenue Miss

MGIC Investment Corp (NYSE:MTG) has released its financial results for the third quarter of 2025, presenting a mixed performance against analyst expectations. The company, a provider of private mortgage insurance and credit risk management solutions, reported strong profitability but fell slightly short on the top line, leading to a nuanced market response in recent trading sessions.

Earnings and Revenue Performance

The core of the earnings release centered on the company's bottom-line strength. MGIC reported an adjusted net operating income of $190.8 million, or $0.83 per diluted share. This figure comfortably surpassed the consensus estimate among analysts, which had projected a Non-GAAP EPS of $0.7535. This represents an earnings beat of approximately 10%, underscoring efficient operations and profitability during the quarter.

On the revenue front, the results were more tempered. The company reported revenue of $304.34 million for the quarter. This came in below the analyst consensus estimate of $311.28 million, marking a slight miss. The key figures from the quarter are summarized below:

• Reported Non-GAAP EPS: $0.83
• Analyst EPS Estimate: $0.7535
• Reported Revenue: $304.34 million
• Analyst Revenue Estimate: $311.28 million

Market Reaction and Price Action

The market's reaction to this mixed report has been cautiously negative in the lead-up to and following the announcement. While the significant earnings beat is a positive signal, the revenue shortfall appears to have weighed more heavily on investor sentiment. The stock's performance over recent weeks reflects this caution.

• Performance over the last month: -5.64%
• Performance over the last two weeks: -3.22%
• Performance over the last week: -1.47%

The muted after-market performance, showing no significant movement immediately following the release, suggests a period of digestion as investors weigh the strong profitability against the softer revenue figure.

Press Release Summary and Forward Outlook

The press release, headlined by the net income of $191.1 million and adjusted net operating income of $190.8 million, primarily highlighted the company's solid quarterly profit. The announcement from CEO Tim Mattke emphasized the company's operating and financial results for the period. The provided materials did not include a specific quantitative financial outlook from management for the upcoming quarters.

Looking ahead, analyst estimates for the company's future performance are already established. For the fourth quarter of 2025, the consensus points to revenue of $313.44 million and an EPS of $0.74942. For the full 2025 year, analysts are estimating sales of $1.24 billion and revenue of $3.08 billion. The absence of formal company guidance in the press release means the market will continue to rely heavily on these external benchmarks to gauge future performance.

Conclusion

MGIC Investment Corp's third-quarter results paint a picture of a company with robust earnings power, as evidenced by its substantial profit beat. However, the slight revenue miss has contributed to a negative near-term trend in its stock price. Investors are likely balancing the positive signal of high profitability against concerns about top-line growth and the broader housing market dynamics. The company's ability to translate its operational efficiency into sustained revenue growth will be a key focus in subsequent quarters.

For a more detailed breakdown of historical earnings and future analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation to buy or sell any security, or an offer to solicit any transaction. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.