Alexander Bond

Alexander Bond asked about the expected cadence of revenue recognition for the coming year, particularly if it would be more back-half weighted, and for an updated view on the comp ratio's trajectory towards the low 60s.

Answer

CEO Navid Mahmoodzadegan indicated a constructive environment with high new business generation and pipeline, noting that Q1 is typically the weakest quarter seasonally. He expressed optimism for 2026 and beyond. Regarding compensation, he highlighted progress in reducing the ratio to 65.8% and outlined factors for 2026, including revenue, banker pay competition, and new hires, while committing to further reductions.

Alexander Bond from Keefe, Bruyette & Woods, Inc. questioned the trend in gain on sale margins for Q1 and the factors contributing to the stronger margins seen in NEO Home Loans.

Answer

CFO Kevin Ryan confirmed that Q1 gain on sale margins were trending higher, driven by the NEO Home Loans business, which operates at about 150 basis points higher than the direct-to-consumer (D2C) channel. CEO Vishal Garg added that in the D2C channel, the AI agent Betsy improves margins by increasing conversion speed, reducing the need to compete solely on rate.

Alexander Bond of Keefe, Bruyette & Woods inquired about the future issuance cadence for Radian Mortgage Capital and sought details on the $10 million software impairment and the strategic direction of the 'All Other' business segment.

Answer

CEO Rick Thornberry stated that while Radian will not provide forward guidance on issuance, it expects to be a regular issuer as the Radian Mortgage Capital business scales. CFO Sumita Pandit clarified the $10 million software impairment was a one-time item related to the 'All Other' category. Thornberry then provided an update on the businesses within that segment, including the conduit, title, and real estate services, noting a focus on scaling and managing expenses.