Mortgage insurance provider Radian Group (NYSE:RDN) missed Wall Street’s revenue expectations in Q2 CY2026, but sales rose 93.8% year on year to $575 million. Its non-GAAP profit of $1.14 per share was 15.7% below analysts’ consensus estimates.
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Radian Group (RDN) Q2 CY2026 Highlights:
- Net Premiums Earned: $504 million (112% year-on-year growth)
- Revenue: $575 million vs analyst estimates of $581.8 million (93.8% year-on-year growth, 1.2% miss)
- Pre-tax Profit: $150.7 million (26.2% margin)
- Adjusted EPS: $1.14 vs analyst expectations of $1.35 (15.7% miss)
- Book Value per Share: $36.00 (8.5% year-on-year growth)
- Market Capitalization: $5.21 billion
Company Overview
Founded during the housing boom of 1977 and weathering multiple real estate cycles since, Radian Group (NYSE:RDN) provides mortgage insurance and real estate services, helping lenders manage risk and homebuyers achieve affordable homeownership.
Revenue Growth
Big picture, insurers generate revenue from three key sources. The first is the core business of underwriting policies. The second source is income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities. The third is fees from various sources such as policy administration, annuities, or other value-added services. Unfortunately, Radian Group’s 3.9% annualized revenue growth over the last five years was sluggish. This was below our standard for the insurance sector and is a tough starting point for our analysis.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Radian Group’s annualized revenue growth of 10.5% over the last two years is above its five-year trend, suggesting its demand recently accelerated. 
Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Radian Group achieved a magnificent 93.8% year-on-year revenue growth rate, but its $575 million of revenue fell short of Wall Street’s lofty estimates.
Net premiums earned made up 76.5% of the company’s total revenue during the last five years, meaning insurance operations are Radian Group’s largest source of revenue.
While insurers generate revenue from multiple sources, investors view net premiums earned as the cornerstone — their direct link to core operations stands in sharp contrast to the unpredictability of investment returns and fees.
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Book Value Per Share (BVPS)
Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float (premiums collected but not yet paid out) is invested, creating 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.
Radian Group’s BVPS grew at a solid 9.4% annual clip over the last five years. The last two years show a similar trajectory as BVPS grew by 10.2% annually from $29.66 to $36.00 per share.
Key Takeaways from Radian Group’s Q2 Results
We struggled to find many positives in these results. Its EPS missed and its revenue fell slightly short of Wall Street’s estimates. Overall, this was a softer quarter. The stock traded down 4.9% to $37.25 immediately after reporting.
Radian Group underperformed this quarter, but does that create an opportunity to invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).