NMI Holdings, Inc.NMIH

NMI Holdings, Inc. Leases Disclosure

10-KFiled Feb 12, 20262 min read
Leases
We have two operating lease agreements related to our corporate headquarters and a data center facility for which we recognized operating ROU assets and lease liabilities of $6.7 million and $8.5 million in “Other Assets” and “Other Liabilities,” respectively, on our consolidated balance sheets as of December 31, 2025. As of December 31, 2024, we recognized operating ROU assets and lease liabilities of $8.2 million and $10.3 million, respectively. As of December 31, 2025 and 2024, we did not have any finance leases.
We did not enter into any new operating leases or recognize any new ROU assets or lease liabilities during the year ended December 31, 2025.
The following table provides a summary of our ROU asset and lease liability assumptions as of December 31, 2025 and 2024:
December 31, 2025December 31, 2024
Weighted average remaining lease term
4.2 years5.1 years
Weighted average discount rate
6.50 %6.50 %
Cash paid on our operating leases for the years ended December 31, 2025, 2024 and 2023 was $2.4 million, $2.3 million and $1.5 million and lease expense incurred was $2.1 million, $2.1 million and $2.0 million during each respective period.
Future payments due under our existing operating leases as of December 31, 2025 are as follows:
Years ending December 31, (In Thousands)
2026$2,211 
20272,256 
20282,322 
20292,392 
2030602 
Total undiscounted lease payments9,783 
Less effects of discounting(1,276)
Present value of lease payments$8,507 
Lease expense is recorded in “Underwriting and Operating Expenses” on the consolidated statements of operations and comprehensive income. Our existing leases have original terms that range from two to eight years. The lease for our corporate headquarters includes an option to renew for an additional five years at prevailing market rates at time of renewal. This renewal option is not included in the calculation of future lease payments due under the existing lease as presented above as it is not reasonably certain to be exercised.

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 14, 2025
2023Feb 15, 2024

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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