Revenue growth accelerated sharply to 74.8% in Q2 2026, while the combined ratio improved to a profitable 83.4%, though the loss ratio's volatility from 26.2% to 42.4% over recent quarters suggests inconsistent claims experience.
Accelerant Holdings (ARX) annual income statement — 5-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 |
|---|
| Revenue | 1.04B | 879.5M | 597.7M | 329.7M | 213.1M | 103.2M |
| Revenue Growth % | 49.52% | 47.15% | 81.29% | 54.72% | 106.49% | - |
| Medical Costs & Claims | 340.8M | 284.3M | 248.7M | 130.2M | 134.5M | 39.7M |
| Medical Cost Ratio % | 32.78% | 32.33% | 41.61% | 39.49% | 63.12% | 38.47% |
| Gross Profit | 699M | 595.2M | 349M | 199.5M | 78.6M | 63.5M |
| Gross Margin % | 67.22% | 67.67% | 58.39% | 60.51% | 36.88% | 61.53% |
| Gross Profit Growth % | - | 70.54% | 74.94% | 153.82% | 23.78% | - |
| Operating Expenses | 2B | 1.92B | 317M | 243.4M | 162.9M | 83.5M |
| OpEx / Revenue % | 192.09% | 217.98% | 53.04% | 73.82% | 76.44% | 80.91% |
| Depreciation & Amortization | 39.9M | 35.2M | 26.6M | 14.5M | 5.8M | 1.6M |
| Combined Ratio % | 224.87% | 250.3% | 94.65% | 113.32% | 139.56% | 119.38% |
| Operating Income | -1.3B | -1.32B | 32M | -43.9M | -84.3M | -20M |
| Operating Margin % | -124.87% | -150.3% | 5.35% | -13.32% | -39.56% | -19.38% |
| Operating Income Growth % | - | -4230.94% | 172.89% | 47.92% | -321.5% | - |
| EBITDA | -1.26B | -1.29B | 58.6M | -29.4M | -78.5M | -18.4M |
| EBITDA Margin % | -121.03% | -146.3% | 9.8% | -8.92% | -36.84% | -17.83% |
| Interest Expense | 63.6M | 69M | 32.4M | 15.1M | 4.2M | 2.9M |
| Non-Operating Income | -50M | -69M | -32.4M | -15.1M | -4.2M | -2.9M |
| Pretax Income | -1.27B | -1.32B | 32M | -43.9M | -84.3M | -20M |
| Pretax Margin % | -122.17% | -150.3% | 5.35% | -13.32% | -39.56% | -19.38% |
| Income Tax | 19.9M | 23.3M | 9.1M | 20.2M | 11.3M | 4.3M |
| Effective Tax Rate % | -1.57% | -1.76% | 28.44% | -46.01% | -13.4% | -21.5% |
| Net Income | -1.3B | -1.35B | 27.2M | -48.8M | -91.7M | -21.5M |
| Net Margin % | -124.63% | -153.96% | 4.55% | -14.8% | -43.03% | -20.83% |
| Net Income Growth % | -3018.69% | -5078.31% | 155.74% | 46.78% | -326.51% | - |
| EPS (Diluted) | -5.86 | -7.49 | 0.13 | -0.23 | -0.55 | -0.10 |
| EPS Growth % | -3362.9% | -5861.54% | 156.52% | 58.18% | -454.44% | - |
| EPS (Basic) | - | -7.49 | 0.17 | -0.30 | -0.55 | -0.13 |
| Diluted Shares Outstanding | 221.1M | 190.26M | 216.67M | 216.67M | 165.6M | 216.67M |
Quick answers to the most common questions about buying ARX stock.
For fiscal year 2025, Accelerant Holdings (ARX) reported total revenue of $879.5M. This represents a 752.2% increase compared to $103.2M in 2021.
Accelerant Holdings (ARX) reported a net loss of $1.35B for the fiscal year ending 2025.
Accelerant Holdings (ARX) reported an operating income of $-1321.9M, resulting in an operating profit margin of -150.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Accelerant Holdings (ARX) generated $595.2M in gross profit for the year, representing a gross profit margin of 67.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Operating margin sustainability
Metrics are mathematically derived from official filings.
Premium Growth Accelerates Sharply
Accelerant's revenue growth accelerated to 74.8% year-over-year in Q2 2026, a significant jump from the 12.9% growth in Q1, suggesting a rapid expansion of its MGA member base and premium throughput on the Exchange platform.
The sequential acceleration from $192.8M to $356.9M in quarterly revenue indicates a potential inflection point in platform adoption, likely driven by successful onboarding of new Managing General Agents. This growth trajectory appears to be outpacing the broader specialty insurance market, as evidenced by peers like Kinsale Capital growing at 18% and Ryan Specialty at 21.3%. The sustainability of this pace will depend on the company's ability to maintain member retention while scaling its operational infrastructure.
Underwriting Profitability Emerges
The combined ratio improved dramatically to 83.4% in Q2 2026 from 99.0% in Q1, indicating a shift to underwriting profitability, though the loss ratio's volatility from 26.2% to 42.4% over recent quarters suggests inconsistent claims experience.
The Q2 2026 combined ratio of 83.4% represents a meaningful underwriting profit, a stark contrast to the near break-even or loss positions in Q1 2026 and Q4 2025. This improvement appears driven by both a lower loss ratio (29.8%) and likely operating leverage as revenue scales. However, the historical volatility in the loss ratio, ranging from 22.6% to 44.3% over the past ten quarters, warrants close monitoring as it may indicate inconsistent risk selection or reserve adequacy within the underwriting segment.
Reserve Volatility Masks Core Earnings
The massive $1.4 billion net loss in Q3 2025, despite a 5.8% combined ratio, strongly suggests a significant reserve strengthening or one-time charge, indicating that prior-period earnings may have been inflated by favorable reserve development.
The Q3 2025 results present a major analytical puzzle: a combined ratio of 5.8% would typically imply extraordinary underwriting profit, yet the company reported a $1.4 billion net loss. This discrepancy almost certainly points to a large, non-operational charge, potentially a reserve adjustment for legacy liabilities or a write-down related to the underwriting segment. Investors should scrutinize the notes to financial statements for this period to understand the nature of this charge, as it raises questions about the quality of earnings in surrounding quarters.
Scale Fails to Absorb Fixed Costs
Despite 47.15% annual revenue growth, the operating margin remains deeply negative at -150.30%, indicating that the high fixed-cost base of the Exchange platform and regulatory infrastructure is not yet being leveraged by the current scale of operations.
The persistent negative operating margin, even as revenue approaches a $1.4 billion annualized run rate, suggests that the cost structure is heavily weighted toward technology development, personnel, and compliance rather than variable acquisition costs. The gross margin of 67.67% confirms the core service is profitable, but the overhead required to run the multi-jurisdictional platform is overwhelming. A path to profitability likely requires either a significant further increase in premium throughput per member or a strategic reduction in the pace of investment spending.
Q2 2026 Marks Potential Turnaround
Q2 2026 appears to be a critical inflection point, delivering $78.7 million in net income and a 7.8% EPS growth, the strongest quarterly performance in the dataset, which may signal the beginning of scalable profitability.
After several quarters of losses or minimal profits, the Q2 2026 results show a combination of strong revenue growth, an improved combined ratio, and positive net income. This quarter's performance, if sustained, would validate the company's growth-at-all-costs strategy by demonstrating that the platform can generate underwriting profit at scale. The key question for analysts is whether this represents a new baseline or a favorable quarter driven by benign loss experience, as the loss ratio of 29.8% is at the lower end of its historical range.
Adverse Selection Risk in MGA Portfolio
The company's rapid growth may be attracting a disproportionate share of MGAs that cannot find capacity elsewhere, creating a potential adverse selection problem that could lead to higher long-term loss ratios than the current data suggests.
Accelerant's value proposition as a 'capacity-as-a-service' provider could inadvertently attract risk that traditional carriers have rejected. If the Exchange is primarily serving as a last resort for niche or difficult-to-place risks, the current loss ratios may not be representative of the portfolio's true risk profile. This adverse selection risk is particularly concerning given the volatility in the loss ratio and the lack of a long operating history to establish credible actuarial benchmarks. Investors should monitor the composition of new member additions and the performance of cohorts added during periods of rapid growth.