Enact Holdings (NASDAQ:ACT) Reports Sales Below Analyst Estimates In Q1 CY2026 Earnings

Mortgage insurance provider Enact Holdings (NASDAQ:ACT) missed Wall Street’s revenue expectations in Q1 CY2026, with sales flat year on year at $312.1 million. Its non-GAAP profit of $1.21 per share was 1.2% above analysts’ consensus estimates.

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“Enact delivered a strong start to 2026, reflecting disciplined execution, resilient credit performance, and our continued focus on long-term value creation,” said Rohit Gupta, President and CEO of Enact.

Company Overview

Playing a critical role in helping first-time homebuyers access the housing market, Enact Holdings (NASDAQ:ACT) provides private mortgage insurance that enables lenders to offer home loans with lower down payments while protecting against borrower defaults.

Revenue Growth

Insurance companies earn revenue from three primary sources: 1) The core insurance business itself, often called underwriting and represented in the income statement as premiums 2) Income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities 3) Fees from various sources such as policy administration, annuities, or other value-added services. Over the last five years, Enact Holdings grew its revenue at a sluggish 1.9% compounded annual growth rate. This was below our standards and is a rough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Enact Holdings’s annualized revenue growth of 2.9% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Enact Holdings’s $312.1 million of revenue was flat year on year, falling short of Wall Street’s estimates.

Net premiums earned made up 82% of the company’s total revenue during the last five years, meaning Enact Holdings barely relies on non-insurance activities to drive its overall growth.

Our experience and research show the market cares primarily about an insurer’s net premiums earned growth as investment and fee income are considered more susceptible to market volatility and economic cycles.

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Book Value Per Share (BVPS)

Insurers are balance sheet businesses, collecting premiums upfront and paying out claims over time. Premiums collected but not yet paid out, often referred to as the float, are invested and create an asset base supported by a liability structure. Book value per share (BVPS) captures this dynamic by measuring these assets (investment portfolio, cash, reinsurance recoverables) less liabilities (claim reserves, debt, future policy benefits). BVPS is essentially the residual value for shareholders.

We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality because it reflects long-term capital growth and is harder to manipulate than more commonly-used metrics like EPS.

Enact Holdings’s BVPS grew at a solid 9.5% annual clip over the last five years. BVPS growth has also accelerated recently, growing by 12.9% annually over the last two years from $29.89 to $38.09 per share.

Key Takeaways from Enact Holdings’s Q1 Results

We struggled to find many positives in these results. Its EPS slightly beat and its revenue fell slightly short of Wall Street’s estimates. Overall, this quarter could have been better. The stock remained flat at $42.33 immediately after reporting.

So do we think Enact Holdings is an attractive buy at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).