ARX earnings analysis
What we found in ARX's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Accelerant delivered a strong second quarter, with revenue up 63% year over year to $356.9 million, net income rising to $80.0 million, and Adjusted EBITDA increasing 46% to $93.1 million. Exchange Services and MGA Operations grew materially, while the platform expanded to 314 Members and third-party insurers represented 47% of quarterly Exchange Written Premium. However, underwriting segment EBITDA declined to $1.9 million, operating cash flow was negative $90.0 million year to date, and the company withdrew forward guidance amid the proposed Thoma Bravo acquisition, supporting a neutral overall assessment.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and earnings accelerated
- Total revenue increased 63% year over year to $356.9 million from $219.1 million. Income before income taxes rose to $87.4 million from $22.3 million, while net income increased to $80.0 million from $13.1 million.
- Platform scale continued to expand
- Exchange Written Premium grew 23% year over year to $1.3223 billion, or 28% excluding the Member placed into runoff. Members increased to 314 from 248, and Net Revenue Retention was 111%.
- Exchange Services delivered strong growth
- Exchange Services revenue grew 30% to $111.8 million and Adjusted EBITDA increased 33% to $74.0 million, with the segment's Adjusted EBITDA margin improving to 66% from 65%.
- Mix shifted toward third-party insurers
- Third-party insurers accounted for 47% of Exchange Written Premium in the quarter versus 27% a year earlier. Direct commission income increased 170% to $92.5 million, including $22.1 million from planned contract modifications and $12.6 million from a return of unearned premium.
- Underwriting metrics improved
- Net earned premium rose 83% to $129.1 million, while the net loss ratio improved to 55.5% from 72.7%, including a $7.3 million gain from a commutation agreement. Adjusted EBITDA margin increased to 31% from 29%.
- Acquisition agreement provides liquidity event
- The company entered into a merger agreement providing for $20.25 in cash per share, plus a potential ticking fee accruing at 6% annually if certain regulatory approvals are delayed. Closing is expected in the first half of 2027.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Operating cash flow turned negative
- Operating cash flow was negative $90.0 million for the first six months, versus positive $309.3 million in the prior-year period. Management attributed the outflow primarily to the underwriting segment, including a reinsurance fund-withheld transfer and settlement timing.
- Forward visibility remains limited
- Guidance was withdrawn in connection with the pending acquisition, leaving no quantitative Q3 2026 or full-year 2026 outlook. The merger remains subject to shareholder and regulatory approvals and is only expected to close in the first half of 2027.
- Underwriting profitability weakened
- Underwriting Adjusted EBITDA fell to $1.9 million from $15.9 million despite revenue growth of 22% to $133.9 million. Ceding commission income declined to $1.1 million from $29.6 million, including a $7.1 million reduction from sliding-scale commission adjustments.
- Claims and reserve exposure increased
- Gross loss ratio increased to 52.0% from 50.5%, while gross loss and LAE rose to $400.2 million from $395.4 million. Gross loss reserves increased to $2.2737 billion from $2.0054 billion at December 31, 2025.
- Earnings benefited from investment gains
- Reported net income benefited from $53.0 million of net realized and unrealized investment gains, including $54.1 million of total gains related to one TPA investment. This gain was not representative of recurring operating performance.
- Retention and reserve exposure rose
- The company retained 23.5% of Accelerant GWP in the quarter versus a targeted retention level of 10%, increasing retained insurance exposure. The company also reported $180.8 million of net loss and LAE reserves and a $4.0 million reserve sensitivity for a 3% increase in ultimate losses.
What they reported.
What the company itself reported, taken out of the document.
- Segment
- Exchange Services revenue: $111.8 million, up 30% year over year; segment Adjusted EBITDA was $74.0 million, up 33%.
- Segment
- MGA Operations revenue: $70.1 million, up $11.6 million year over year; segment Adjusted EBITDA was $30.3 million versus $24.7 million.
- Segment
- Underwriting revenue: $133.9 million, up 22% year over year; segment Adjusted EBITDA was $1.9 million versus $15.9 million.
What they said about what is next.
No numeric revenue or EPS guidance was provided in the 10-Q. The company entered into a merger agreement on August 13, 2026, with the transaction expected to close in the first half of 2027; prior company guidance for Q3 2026 and full-year 2026 was withdrawn because of the pending acquisition.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 13, 2026
- Accelerant Holdings reported a robust Q1 2026 performance with revenues of $1.66 billion, a 23.6% increase compared to the prior period. EPS rose to $1.03, significantly exceeding expectations, primarily driven by…
- 10-K · March 18, 2026
- Accelerant describes a fast-growing, data-driven specialty insurance Risk Exchange that connects MGAs (Members) with Risk Capital Partners. Revenue accelerated to $913.0M in 2025 (up 51% vs. $603.0M in 2024) and…
- 10-Q · November 12, 2025
- Accelerant reported total revenues of $267.4M for the quarter ended September 30, 2025, up from $153.7M in the prior-year quarter (+$113.7M). The company recorded a GAAP net loss of $1,367.0M (loss before tax $1,357.5M)…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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