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SEC filingQ1 revenue grew 5.9% to $183.5M from portfolio expansion, driving strong $115.0M free cash flow, though net income dipped 3.1% to $99.3M amid claims pressure from recent-vintage loans and rising default inventory.
Diluted EPS held steady at $1.28, matching the prior year, as revenue gains and operational efficiencies offset claims pressure. The company's investment strategy emphasizes generating income while preserving capital and maintaining liquidity for operating needs, which aligns with stable per-share results.
Cash generation remained a strength, with net cash from operating activities climbing to $116.1 million from $101.2 million, after minimal $1.1 million in capital expenditures versus $1.7 million last year. This produced $115.0 million in free cash flow, positioning NMIH to meet insurance subsidiaries' capital needs and pursue growth initiatives. The undrawn credit facility further bolsters liquidity amid potential housing market risks, such as declines in demand, house prices, or rising unemployment that could elevate future defaults.
Changes in other revenues tied to NMIS' outsourced loan review volume also influenced the quarter, while the investment portfolio's objectives support ongoing capital preservation. These factors collectively explain the quarter's performance, balancing growth with risk management in a shifting mortgage insurance landscape.