RDN

Radian Group is a private mortgage insurer generating consistent, high-margin profits. FY2025 net income was $583M (down a modest 3.6%) on $1.20B of revenue, producing a striking 48.7% net margin and a 12.2% return on equity — strong, stable economics typical of a well-run mortgage-insurance franchise. Diluted EPS actually rose 5.6% to $4.14 despite slightly lower net income, because the company retired 6.1% of its shares. The five-year earnings record is remarkably steady ($583-743M), reflecting a benign credit environment and disciplined underwriting.

The capital-return story is the centerpiece. Radian repurchased $432M of stock (up 91.9%) and paid $146M in dividends, while operating cash flow more than doubled (+118.1% to $120M). The balance sheet strengthened — liabilities fell 17.8% and now sit at a conservative 0.70x equity, with equity up 3.4% to $4.78B and retained earnings up 9.3% to $5.13B. This is a company returning substantial capital while building book value.