Mortgage insurance provider Enact Holdings (NASDAQ: ACT) met Wall Street’s revenue expectations in Q3 2026, with sales up 1.4% year on year to $318.8 million. Its non-GAAP profit of $1.19 per share was in line with analysts’ consensus estimates.

Is now the time to buy ACT? Find out in our full research report (it’s free for active Edge members).

StockStory’s take

Enact Holdings delivered results in line with Wall Street expectations for the third quarter, with the market responding positively following management’s focus on portfolio resilience and disciplined capital management. CEO Rohit Gupta credited the solid performance to favorable credit trends, prudent underwriting, and effective expense controls. He noted, “Our insurance-in-force portfolio continues to demonstrate resilience, supported by prudent underwriting standards, strong borrower credit characteristics, and meaningful embedded home equity.” The company also highlighted progress in its capital return initiatives and a stable operating environment despite elevated mortgage rates.

Looking ahead, Enact Holdings’ guidance is shaped by ongoing attention to risk management, capital strength, and the evolving regulatory environment. Management pointed to continued high persistency rates, strong cure performance, and proactive engagement with policymakers as key factors influencing future outcomes. CFO Dean Mitchell emphasized, “Our improved expense outlook and increased capital return expectations reflect disciplined execution, continued financial strength, and confidence in the underlying performance of our business.” The company remains focused on supporting sustainable homeownership while managing potential policy changes and macroeconomic uncertainties.

Key insights from management’s remarks

Management attributed third quarter performance to strong credit quality, elevated persistency, and ongoing expense discipline, alongside measured responses to regulatory and market changes.

• Credit quality remains strong: Enact’s portfolio performance was driven by high borrower credit scores and stable loan-to-value ratios, with a risk-weighted average credit score of 747 and a risk-weighted average loan-to-value of 93%. Management noted that recent vintages are performing in line with pricing expectations, even as purchase-heavy books introduce modestly higher risk.
• Elevated persistency supports revenue: Persistency, the percentage of policies remaining in force, stayed high at 81%, aided by prevailing mortgage rates that kept 89% of loans below a 7% interest rate. Elevated persistency has now exceeded 80% for 18 straight quarters, supporting premium revenue stability.
• Expense management and efficiency: Operating expenses declined year-over-year, with Enact operating at its lowest headcount in over a decade. The company expects to end the year at the low end of its expense range, reflecting a sustained focus on cost control amid a challenging originations market.
• Capital return acceleration: Management increased its 2026 capital return guidance to approximately $600 million, attributing this shift to strong business performance and limited opportunities to deploy capital in a slower originations environment. Share repurchases and dividends remain the primary vehicles for returning excess capital.
• Regulatory and policy engagement: Enact continues to monitor and engage on federal housing policy, with management emphasizing support for initiatives to lower the cost of homeownership. The company is preparing for potential changes from upcoming pilot programs and automation in mortgage insurance cancellation, highlighting its readiness to adapt underwriting and pricing in response.

Drivers of future performance

Enact’s outlook is centered on disciplined risk selection, elevated persistency, and responsive capital allocation, as well as navigating regulatory changes.

• Persistency trends and portfolio seasoning: Management expects persistency to remain above historical averages, supporting stable premium revenue. However, as older loan vintages roll off and newer, purchase-heavy portfolios mature, there could be gradual increases in delinquency rates, though current cure rates remain strong.
• Expense discipline and capital deployment: The company aims to sustain its low expense base while flexibly allocating capital between organic growth opportunities and shareholder returns. Management cited confidence in maintaining robust capital ratios and a flexible response to market conditions, including opportunistic share repurchases.
• Regulatory pilot and policy risk: Enact is closely watching developments linked to the presidential executive order on housing costs and pilot programs for mortgage insurance cancellation automation. Management is advocating for prudent guardrails in policy changes and expects to adjust pricing and underwriting as further details emerge from the FHFA and GSEs.

Catalysts in upcoming quarters

In upcoming quarters, the StockStory team will monitor (1) persistency trends as older loan vintages continue to roll off, (2) the impact of potential regulatory changes on cancellation rates and underwriting standards, and (3) the effectiveness of ongoing cost management initiatives. We will also be watching for updates on capital return execution and further developments in the federal housing policy landscape.

Enact Holdings currently trades at $50.03, up from $48.17 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

High quality stocks for all market conditions

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.