Despite reporting $78.7 million in net income for Q2 2026, operating cash flow was negative $68.6 million, creating a significant disconnect that suggests the core business is not yet self-funding its growth.
Accelerant Holdings (ARX) cash flow statement — 5-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 |
|---|
| Cash from Operations | 45.8M | 445.1M | 785.5M | 289.9M | 65.7M | 112.7M |
| Operating CF Growth % | -402.49% | -43.34% | 170.96% | 341.25% | -41.7% | - |
| Operating CF / Revenue % | 4.4% | 50.61% | 131.42% | 87.93% | 30.83% | 109.21% |
| Net Income | -1.3B | -1.35B | 22.4M | -64.1M | -96.4M | -24.4M |
| Depreciation & Amortization | 39.9M | 35.2M | 26.6M | 14.5M | 5.8M | 1.6M |
| Stock-Based Compensation | 99.2M | 43.1M | 8.4M | 4.8M | 0 | 0 |
| Deferred Taxes | -18.5M | -32M | -40.9M | 300K | -5.8M | -1.7M |
| Other Non-Cash Items | 1.28B | 1.35B | -32.1M | -22.1M | 4.2M | 9.5M |
| Working Capital Changes | 4.1M | 397.8M | 801.1M | 356.5M | 157.9M | 127.7M |
| Cash from Investing | 60.6M | -173.6M | -380.1M | -11.7M | -147.5M | -132.5M |
| Capital Expenditures | -11.6M | -41.4M | -34.4M | -32.6M | -26.7M | -14.7M |
| Acquisitions | -9.3M | -10.4M | -4.8M | 2.2M | -11.2M | -21.2M |
| Purchase of Investments | -111.4M | -509.3M | -557.6M | -122M | -263.5M | -125.4M |
| Sale/Maturity of Investments | 184.9M | 388M | 218M | 140.8M | 153.3M | 28.9M |
| Other Investing | 8M | -500K | -1.3M | -100K | 600K | -100K |
| Cash from Financing | 114.1M | 205.8M | 110.3M | 10.3M | 254.7M | 233.7M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -82.6M | -175.3M | 0 | 0 | 0 | 0 |
| Stock Issued | 0 | 392M | 0 | 0 | 0 | 30.9M |
| Debt Issuance (Net) | -2.4M | -800K | -700K | 1000K | 1000K | 1000K |
| Other Financing | 199.1M | 165.2M | -3.5M | -8.4M | -1.4M | 0 |
| Net Change in Cash | 197.8M | 526.3M | 497.4M | 291.8M | 158.3M | 216.1M |
| Exchange Rate Effect | -22.7M | 49M | -18.3M | 3.3M | -14.6M | 2.2M |
| Cash at Beginning | 1.54B | 1.27B | 775.8M | 484M | 325.7M | 85.8M |
| Cash at End | 1.66B | 1.8B | 1.27B | 775.8M | 484M | 301.9M |
| Free Cash Flow | 51.5M | 403.7M | 751.1M | 257.3M | 39M | 98M |
| FCF Growth % | -93.48% | -46.25% | 191.92% | 559.74% | -60.2% | - |
| FCF Margin % | 4.95% | 45.9% | 125.67% | 78.04% | 18.3% | 94.96% |
| FCF per Share | 0.23 | 2.12 | 3.47 | 1.19 | 0.24 | 0.45 |
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.
Key Metrics
Top Statement Risk
Operating margin sustainability
Metrics are mathematically derived from official filings.
Float Generation Turns Negative
Accelerant's underwriting operations consumed $106.5 million in cash during Q2 2026, a stark reversal from the $69.5 million generated in Q2 2025, suggesting the rapid premium growth is being outpaced by claims outflows and operational costs.
The shift from positive to negative underwriting cash flow indicates that the company's rapid expansion is not yet generating the traditional insurance float. This suggests that claims payments and other underwriting-related cash outflows are growing faster than premium collections, which may be a temporary byproduct of scaling or a sign of deteriorating underwriting economics.
Investment Activity Signals Liquidity Shift
In Q2 2026, ARX deployed $252.2 million into investments while only realizing $62.2 million from sales, a significant net outflow that contrasts with the net inflows seen in prior quarters like Q4 2025.
The substantial net investment outflow in the latest quarter suggests a strategic shift towards deploying the large cash balance into longer-duration or higher-yielding assets. This move may be intended to boost investment income to offset operating losses, but it also reduces immediate liquidity and exposes the portfolio to interest rate and credit risk.
Buybacks Initiated Amidst Cash Burn
ARX initiated $70.4 million in share buybacks during Q2 2026, its first recorded capital return, despite operating cash flow being negative $68.6 million for the same period.
The initiation of buybacks while operating cash flow is negative is an unusual signal. It may indicate management's confidence in future cash generation or a desire to offset dilution, but it also means the repurchases are being funded from the existing cash balance rather than from ongoing operational cash generation, which warrants monitoring for sustainability.
Net Income and Cash Flow Diverge Sharply
Q2 2026 reported net income of $78.7 million, yet operating cash flow was negative $68.6 million, creating a significant disconnect that suggests non-cash items or working capital changes are heavily influencing reported profitability.
This divergence implies that the strong bottom-line result may be driven by favorable reserve adjustments or other non-cash accounting entries rather than actual cash generation. Investors should scrutinize the quality of earnings, as the cash reality appears materially weaker than the statutory income figure suggests.
Cash Flow Obscures Reserve and Liquidity Risks
The $1.79 billion cash balance may be partially restricted, and the negative operating cash flow in Q2 2026 suggests the company is not yet self-funding its growth from core operations.
The cash flow statement does not distinguish between corporate cash and fiduciary or regulatory capital held for the underwriting segment. Furthermore, the persistent negative operating cash flow, even as revenue grows, indicates that the business model is currently reliant on external capital or asset liquidation to fund its activities, which is a key risk if growth stalls or capital markets tighten.