Operating cash flow exhibits significant instability, fluctuating from a peak of $241.6 million in 2024Q4 to a deficit of $21.4 million in 2026Q1.
| Cash from Operations | 331.9M | 445.1M | 785.5M | 289.9M | 65.7M | 112.7M |
| Operating CF Growth % | -197.69% | -43.34% | 170.96% | 341.25% | -41.7% | - |
| Operating CF / Revenue % | 37.41% | 50.61% | 131.42% | 87.93% | 30.83% | 109.21% |
| Net Income | -1.37B | -1.35B | 22.4M | -64.1M | -96.4M | -24.4M |
| Depreciation & Amortization | 37.8M | 35.2M | 26.6M | 14.5M | 5.8M | 1.6M |
| Stock-Based Compensation | 69.5M | 43.1M | 8.4M | 4.8M | 0 | 0 |
| Deferred Taxes | -32.7M | -32M | -40.9M | 300K | -5.8M | -1.7M |
| Other Non-Cash Items | 1.35B | 1.35B | -32.1M | -22.1M | 4.2M | 9.5M |
| Working Capital Changes | 266.5M | 397.8M | 801.1M | 356.5M | 157.9M | 127.7M |
| Cash from Investing | -297.6M | -173.6M | -380.1M | -11.7M | -147.5M | -132.5M |
| Capital Expenditures | 6.6M | -41.4M | -34.4M | -32.6M | -26.7M | -14.7M |
| Acquisitions | 0 | -10.4M | -4.8M | 2.2M | -11.2M | -21.2M |
| Purchase of Investments | 126.9M | -509.3M | -557.6M | -122M | -263.5M | -125.4M |
| Sale/Maturity of Investments | -53.8M | 388M | 218M | 140.8M | 153.3M | 28.9M |
| Other Investing | -377.3M | -500K | -1.3M | -100K | 600K | -100K |
| Cash from Financing | 191M | 205.8M | 110.3M | 10.3M | 254.7M | 233.7M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -12.2M | -175.3M | 0 | 0 | 0 | 0 |
| Stock Issued | 0 | 392M | 0 | 0 | 0 | 30.9M |
| Debt Issuance (Net) | 200K | -800K | -700K | 1000K | 1000K | 1000K |
| Other Financing | 204M | 165.2M | -3.5M | -8.4M | -1.4M | 0 |
| Net Change in Cash | 245.8M | 526.3M | 497.4M | 291.8M | 158.3M | 216.1M |
| Exchange Rate Effect | 20.5M | 49M | -18.3M | 3.3M | -14.6M | 2.2M |
| Cash at Beginning | 1.8B | 1.27B | 775.8M | 484M | 325.7M | 85.8M |
| Cash at End | 1.54B | 1.8B | 1.27B | 775.8M | 484M | 301.9M |
| Free Cash Flow | 326.9M | 403.7M | 751.1M | 257.3M | 39M | 98M |
| FCF Growth % | -41.11% | -46.25% | 191.92% | 559.74% | -60.2% | - |
| FCF Margin % | 36.85% | 45.9% | 125.67% | 78.04% | 18.3% | 94.96% |
| FCF per Share | 1.47 | 2.12 | 3.47 | 1.19 | 0.24 | 0.45 |
Underwriting and liquidity volatility
As evidenced by the quarterly data, Accelerant Holdings' underwriting cash generation remains highly erratic, with operating cash flow swinging from a peak of $241.6 million in 2024Q4 to a deficit of $21.4 million in 2026Q1, reflecting the inherent instability of its risk-bearing model.
The significant variance in operating cash flow suggests that the company's reliance on underwriting paper creates substantial timing mismatches between premium inflows and claim outflows. Investors should monitor whether this volatility is a structural feature of the MGA-exchange model or a temporary byproduct of rapid portfolio expansion.
Based on reported financial figures, claims payments have trended upward from $25.1 million in 2023Q4 to $81.8 million in 2026Q1, indicating that the company's loss-settlement obligations are scaling rapidly alongside its premium volume and potentially outpacing the efficiency of its data-driven underwriting platform.
The steady rise in claims payments appears to correlate with the company's aggressive growth, suggesting that the underwriting segment is absorbing an increasing volume of risk. This trend warrants further investigation into whether the loss ratios are being adequately managed or if the company is facing adverse selection within its MGA network.
According to the provided quarterly statements, the relationship between net income and operating cash flow is highly inconsistent, with OCF/NI ratios ranging from -103.17 to 24.72, which suggests that non-cash accruals and reserve adjustments are significantly distorting the company's reported profitability metrics.
The extreme disconnect between net income and cash generation implies that traditional earnings metrics may be poor indicators of the company's actual liquidity health. Analysts should focus on the cash flow statement as the primary gauge of operational viability, as accounting earnings appear heavily influenced by non-cash items.
As reported in the financial data, the company has demonstrated a pattern of active portfolio management, with significant fluctuations in investment purchases and sales, including a notable $273.1 million investment purchase in 2025Q3 that coincided with a period of extreme earnings volatility.
The active deployment and liquidation of investment assets suggest that the company is utilizing its portfolio as a secondary liquidity buffer to manage underwriting cash flow gaps. This strategy may indicate that the company's core underwriting operations are not yet self-sustaining, necessitating frequent portfolio adjustments to maintain liquidity.
Quick answers to the most common questions about buying ARX stock.
Accelerant Holdings (ARX) generated $445.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Accelerant Holdings (ARX) generated $403.7M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Accelerant Holdings (ARX) spent $41.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Accelerant Holdings (ARX) spent $175.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.