Revenue growth remains inconsistent, fluctuating from a 21.4% contraction in 2025Q4 to a 2.5% expansion in 2026Q1, while underwriting profitability remains under pressure with a 93.8% combined ratio in the most recent quarter.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 |
|---|
| Revenue | 863.4M | 858.2M | 880.7M | 850.9M | 713.5M | 703.1M | 711.4M | 835.9M | 800.4M | 799.3M | 779.8M | 752.1M | 773.5M | 723.5M | 579.18M | 464.15M | 415.6M | 495.94M | 396.78M | 429.92M | 520.25M | 496.49M |
| Revenue Growth % | 0.37% | -2.55% | 3.5% | 19.26% | 1.48% | -1.17% | -14.89% | 4.44% | 0.14% | 2.5% | 3.68% | -2.77% | 6.91% | 24.92% | 24.78% | 11.68% | -16.2% | 24.99% | -7.71% | -17.36% | 4.79% | - |
| Medical Costs & Claims | 567.2M | 581.8M | 557.4M | 505.7M | 486.9M | 391.3M | 381.2M | 454M | 470.9M | 508.6M | 501.4M | 514.8M | 534.8M | 541.9M | 353.49M | 309.86M | 232.58M | 214.46M | 136.51M | 143.3M | 129.75M | 211.69M |
| Medical Cost Ratio % | 65.69% | 67.79% | 63.29% | 59.43% | 68.24% | 55.65% | 53.58% | 54.31% | 58.83% | 63.63% | 64.3% | 68.45% | 69.14% | 74.9% | 61.03% | 66.76% | 55.96% | 43.24% | 34.41% | 33.33% | 24.94% | 42.64% |
| Gross Profit | 296M | 276.4M | 323.3M | 345.2M | 226.6M | 311.8M | 330.2M | 381.9M | 329.5M | 290.7M | 278.4M | 237.3M | 238.7M | 181.6M | 225.69M | 154.3M | 183.03M | 281.47M | 260.26M | 286.62M | 390.5M | 284.8M |
| Gross Margin % | 34.28% | 32.21% | 36.71% | 40.57% | 31.76% | 44.35% | 46.42% | 45.69% | 41.17% | 36.37% | 35.7% | 31.55% | 30.86% | 25.1% | 38.97% | 33.24% | 44.04% | 56.76% | 65.59% | 66.67% | 75.06% | 57.36% |
| Gross Profit Growth % | - | -14.51% | -6.34% | 52.34% | -27.33% | -5.57% | -13.54% | 15.9% | 13.35% | 4.42% | 17.32% | -0.59% | 31.44% | -19.54% | 46.27% | -15.7% | -34.98% | 8.15% | -9.2% | -26.6% | 37.11% | - |
| Operating Expenses | 287.1M | 264.4M | 176.6M | 196.8M | 170.8M | 164.8M | 182.5M | 188.1M | 160M | 146.7M | 137.7M | 137.9M | 132.1M | 128.5M | 128.15M | 107.78M | 116.03M | 189.18M | 148.21M | 135.74M | 136.2M | 116.81M |
| OpEx / Revenue % | 33.25% | 30.81% | 20.05% | 23.13% | 23.94% | 23.44% | 25.65% | 22.5% | 19.99% | 18.35% | 17.66% | 18.34% | 17.08% | 17.76% | 22.13% | 23.22% | 27.92% | 38.15% | 37.35% | 31.57% | 26.18% | 23.53% |
| Depreciation & Amortization | 7M | 0 | 3.6M | 4.8M | 5.3M | 7.4M | 8.2M | 9M | 6.3M | 8.2M | 8.5M | 8.3M | 7M | 6.1M | 5.6M | 6.39M | 7.1M | 9.9M | 7.23M | 6.41M | 4.15M | 2.22M |
| Combined Ratio % | 98.95% | 98.6% | 83.34% | 82.56% | 92.18% | 79.09% | 79.24% | 76.82% | 78.82% | 81.98% | 81.96% | 86.78% | 86.22% | 92.66% | 83.16% | 89.98% | 83.88% | 81.39% | 71.76% | 64.9% | 51.12% | 66.16% |
| Operating Income | 8.9M | 12M | 146.7M | 148.4M | 55.8M | 147M | 147.7M | 193.8M | 169.5M | 144M | 140.7M | 99.4M | 106.6M | 53.1M | 97.54M | 46.52M | 66.99M | 92.3M | 112.05M | 150.89M | 254.29M | 167.99M |
| Operating Margin % | 1.03% | 1.4% | 16.66% | 17.44% | 7.82% | 20.91% | 20.76% | 23.18% | 21.18% | 18.02% | 18.04% | 13.22% | 13.78% | 7.34% | 16.84% | 10.02% | 16.12% | 18.61% | 28.24% | 35.1% | 48.88% | 33.84% |
| Operating Income Growth % | - | -91.82% | -1.15% | 165.95% | -62.04% | -0.47% | -23.79% | 14.34% | 17.71% | 2.35% | 41.55% | -6.75% | 100.75% | -45.56% | 109.7% | -30.56% | -27.42% | -17.63% | -25.74% | -40.66% | 51.37% | - |
| EBITDA | 16.1M | 12.5M | 150.3M | 153.2M | 61.1M | 154.4M | 155.9M | 202.8M | 175.8M | 152.2M | 149.2M | 107.7M | 113.6M | 59.2M | 103.14M | 52.91M | 74.09M | 102.2M | 119.28M | 157.29M | 258.44M | 170.22M |
| EBITDA Margin % | 1.86% | 1.46% | 17.07% | 18% | 8.56% | 21.96% | 21.91% | 24.26% | 21.96% | 19.04% | 19.13% | 14.32% | 14.69% | 8.18% | 17.81% | 11.4% | 17.83% | 20.61% | 30.06% | 36.59% | 49.68% | 34.28% |
| Interest Expense | 1.5M | 500K | 100K | 5.8M | 3.5M | 500K | 400K | 600K | 1.5M | 1.4M | 1.6M | 2.7M | 3M | 3.2M | 3.5M | 3.64M | 5.69M | 7.41M | 2.13M | 0 | 0 | 0 |
| Non-Operating Income | -400K | -500K | -100K | -5.8M | -3.5M | -500K | -400K | -600K | -1.5M | -1.4M | -1.6M | -2.7M | -3M | -3.2M | -3.5M | -3.64M | -5.69M | -7.41M | -2.13M | 0 | 0 | 0 |
| Pretax Income | 8.9M | 12M | 146.7M | 148.4M | 55.8M | 147M | 147.7M | 193.8M | 169.5M | 144M | 140.7M | 99.4M | 106.6M | 53.1M | 97.54M | 46.52M | 66.99M | 92.3M | 112.05M | 150.89M | 254.29M | 167.99M |
| Pretax Margin % | 1.03% | 1.4% | 16.66% | 17.44% | 7.82% | 20.91% | 20.76% | 23.18% | 21.18% | 18.02% | 18.04% | 13.22% | 13.78% | 7.34% | 16.84% | 10.02% | 16.12% | 18.61% | 28.24% | 35.1% | 48.88% | 33.84% |
| Income Tax | 700K | 1.2M | 28.1M | 30.3M | 7.4M | 27.7M | 27.9M | 36.7M | 28.2M | 42.8M | 34M | 5M | 5.9M | -10.7M | -9.35M | -2.11M | 3.52M | 9.28M | 10.27M | 30.6M | 82.72M | 30.39M |
| Effective Tax Rate % | 7.87% | 10% | 19.15% | 20.42% | 13.26% | 18.84% | 18.89% | 18.94% | 16.64% | 29.72% | 24.16% | 5.03% | 5.53% | -20.15% | -9.58% | -4.53% | 5.26% | 10.05% | 9.16% | 20.28% | 32.53% | 18.09% |
| Net Income | 8.2M | 10.8M | 118.6M | 118.1M | 48.4M | 119.3M | 119.8M | 157.1M | 141.3M | 101.2M | 106.7M | 94.4M | 100.7M | 63.8M | 106.89M | 48.62M | 63.47M | 83.02M | 101.78M | 120.28M | 171.57M | 137.6M |
| Net Margin % | 0.95% | 1.26% | 13.47% | 13.88% | 6.78% | 16.97% | 16.84% | 18.79% | 17.65% | 12.66% | 13.68% | 12.55% | 13.02% | 8.82% | 18.46% | 10.48% | 15.27% | 16.74% | 25.65% | 27.98% | 32.98% | 27.71% |
| Net Income Growth % | -92.05% | -90.89% | 0.42% | 144.01% | -59.43% | -0.42% | -23.74% | 11.18% | 39.62% | -5.15% | 13.03% | -6.26% | 57.84% | -40.31% | 119.84% | -23.39% | -23.55% | -18.43% | -15.38% | -29.89% | 24.69% | - |
| EPS (Diluted) | 0.34 | 0.45 | 4.71 | 4.45 | 1.75 | 4.17 | 3.97 | 4.83 | 4.24 | 3.06 | 3.24 | 2.90 | 3.14 | 2.00 | 3.37 | 1.28 | 1.51 | 1.80 | 2.07 | 2.19 | 3.21 | 2.61 |
| EPS Growth % | -92.23% | -90.45% | 5.84% | 154.29% | -58.03% | 5.04% | -17.81% | 13.92% | 38.56% | -5.56% | 11.72% | -7.64% | 57% | -40.65% | 163.28% | -15.23% | -16.11% | -13.04% | -5.48% | -31.78% | 22.99% | - |
| EPS (Basic) | - | 0.45 | 4.74 | 4.48 | 1.76 | 4.22 | 4.01 | 4.89 | 4.30 | 3.11 | 3.29 | 2.94 | 3.19 | 2.05 | 3.40 | 1.28 | 1.52 | 1.81 | 2.07 | 2.19 | 3.21 | 2.61 |
| Diluted Shares Outstanding | 24.14M | 24.14M | 25.2M | 26.52M | 27.68M | 28.6M | 30.2M | 32.54M | 33.31M | 33.06M | 32.98M | 32.56M | 32.07M | 31.94M | 31.7M | 37.42M | 41.52M | 46.09M | 49.26M | 51.94M | 53.53M | 52.72M |
California regulatory and loss concentration
As reported in recent financial statements, Employers Holdings experienced significant top-line volatility, with quarterly revenue growth swinging from a 21.4% contraction in 2025Q4 to a 2.5% expansion in 2026Q1, reflecting the inherent cyclicality of small business payroll-linked premiums in a shifting economic environment.
The erratic revenue trajectory suggests that EIG's reliance on small business payrolls leaves it highly susceptible to macroeconomic fluctuations. Investors should monitor whether the recent return to growth in 2026Q1 represents a sustainable recovery or merely a temporary rebound from the sharp contraction observed in the prior quarter.
Based on the provided quarterly data, the combined ratio reached a concerning 117.3% in 2025Q4, indicating that underwriting costs significantly exceeded earned premiums, a sharp departure from the more disciplined 81.6% combined ratio reported by the company during the 2024Q2 period.
The deterioration in the combined ratio suggests that EIG is struggling to maintain underwriting discipline amidst potential medical inflation or adverse loss frequency. This margin compression warrants further investigation into whether the company's niche pricing model is losing its efficacy against current loss trends.
According to historical income statement data, the 2025Q4 period marked a critical inflection point where the loss ratio spiked to 36.6% alongside a massive operating loss of $29.7 million, highlighting the company's sensitivity to sudden, unexpected shifts in claim severity or reserve adjustments.
This period of negative profitability suggests that the company's underwriting model may be prone to sudden shocks that are not fully mitigated by its current risk management framework. Analysts should evaluate if this event was an isolated anomaly or a precursor to more persistent underwriting challenges.
Financial disclosures indicate that EIG maintains a heavy reliance on the California market, which may mask underlying underwriting risks and expose the firm to localized regulatory or legal shifts that could disproportionately impact future earnings compared to more geographically diversified commercial insurance peers.
The persistent geographic concentration appears to be a structural weakness that limits the company's ability to diversify its risk profile. Investors should consider whether the current valuation adequately discounts the potential for regulatory-driven margin compression within this single, highly regulated jurisdiction.
Quick answers to the most common questions about buying EIG stock.
For fiscal year 2025, Employers Holdings, Inc. (EIG) reported total revenue of $858.2M. This represents a 72.9% increase compared to $496.5M in 2005.
Employers Holdings, Inc. (EIG) is profitable, generating $10.8M in net income for the fiscal year ending 2025 with a net profit margin of 1.3%.
Employers Holdings, Inc. (EIG) reported an operating income of $12.0M, resulting in an operating profit margin of 1.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Employers Holdings, Inc. (EIG) generated $276.4M in gross profit for the year, representing a gross profit margin of 32.2%. This demonstrates the company's core pricing power and production efficiency.