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…
Earnings analysis · 10-Q
ARX earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
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…
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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.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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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.
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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%.
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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%.
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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.
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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%.
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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.
What to watch
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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.
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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.
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 3
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 itself. Analysis can contain errors; check the source document for full context.