Revenue surged 48.7% YoY to $476.9M in Q2 2026, with a combined ratio of 86.7% and a loss ratio of 58.0%, reflecting strong underwriting profitability.
Skyward Specialty Insurance Group, Inc. (SKWD) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'13 |
|---|
| Revenue | 1.64B | 1.41B | 1.15B | 895.4M | 636.4M | 535.82M | 447.89M | 218.24M |
| Revenue Growth % | 22.61% | 23.18% | 28.17% | 40.7% | 18.77% | 19.63% | 105.23% | - |
| Medical Costs & Claims | 1.07B | 795.02M | 819.78M | 623.75M | 468.21M | 401.47M | 399.15M | 0 |
| Medical Cost Ratio % | 65.51% | 56.24% | 71.43% | 69.66% | 73.57% | 74.93% | 89.12% | 0% |
| Gross Profit | 565.84M | 622.11M | 327.89M | 271.65M | 168.2M | 134.35M | 48.73M | 218.24M |
| Gross Margin % | 34.49% | 44.01% | 28.57% | 30.34% | 26.43% | 25.07% | 10.88% | 100% |
| Gross Profit Growth % | - | 89.73% | 20.7% | 61.51% | 25.19% | 175.68% | -77.67% | - |
| Operating Expenses | 325.01M | 405.68M | 175.15M | 161.55M | 118.42M | 86.04M | 143.27M | 197.19M |
| OpEx / Revenue % | 19.81% | 28.7% | 15.26% | 18.04% | 18.61% | 16.06% | 31.99% | 90.36% |
| Depreciation & Amortization | 927K | 3.54M | 3.36M | 3.89M | 4.1M | 5.6M | 5.99M | 0 |
| Combined Ratio % | 85.32% | 84.94% | 86.69% | 87.7% | 92.18% | 90.98% | 121.11% | 90.36% |
| Operating Income | 240.83M | 216.42M | 152.74M | 110.1M | 49.78M | 48.31M | -94.53M | 21.05M |
| Operating Margin % | 14.68% | 15.31% | 13.31% | 12.3% | 7.82% | 9.02% | -21.11% | 9.64% |
| Operating Income Growth % | - | 41.7% | 38.73% | 121.16% | 3.05% | 151.1% | -549.17% | - |
| EBITDA | 241.75M | 219.96M | 156.1M | 113.99M | 53.88M | 53.91M | -88.55M | 16.74M |
| EBITDA Margin % | 14.74% | 15.56% | 13.6% | 12.73% | 8.47% | 10.06% | -19.77% | 7.67% |
| Interest Expense | 20.74M | 7.92M | 9.5M | 10.02M | 6.41M | 4.62M | 5.53M | 0 |
| Non-Operating Income | -20.74M | -7.92M | -9.5M | -10.02M | -6.41M | -4.62M | -5.53M | 4.31M |
| Pretax Income | 240.83M | 216.42M | 152.74M | 110.1M | 49.78M | 48.31M | -94.53M | 16.74M |
| Pretax Margin % | 14.68% | 15.31% | 13.31% | 12.3% | 7.82% | 9.02% | -21.11% | 7.67% |
| Income Tax | 52.93M | 46.4M | 33.91M | 24.12M | 10.39M | 9.99M | -19.89M | 5.86M |
| Effective Tax Rate % | 21.98% | 21.44% | 22.2% | 21.91% | 20.86% | 20.68% | 21.04% | 35% |
| Net Income | 187.9M | 170.03M | 118.83M | 85.98M | 39.4M | 38.32M | -74.64M | 10.88M |
| Net Margin % | 11.45% | 12.03% | 10.35% | 9.6% | 6.19% | 7.15% | -16.67% | 4.98% |
| Net Income Growth % | 33.07% | 43.09% | 38.2% | 118.26% | 2.82% | 151.33% | -786.11% | - |
| EPS (Diluted) | 4.49 | 4.07 | 2.87 | 2.24 | 1.05 | 1.18 | -2.14 | 0.29 |
| EPS Growth % | 26.55% | 41.81% | 28.13% | 113.33% | -11.02% | 155.14% | -837.93% | - |
| EPS (Basic) | - | 4.21 | 2.96 | 2.34 | 1.05 | 1.21 | -1.99 | 0.29 |
| Diluted Shares Outstanding | 41.87M | 41.87M | 41.38M | 38.32M | 37.6M | 32.47M | 34.93M | 37.6M |
Quick answers to the most common questions about buying SKWD stock.
For fiscal year 2025, Skyward Specialty Insurance Group, Inc. (SKWD) reported total revenue of $1.41B. This represents a 547.8% increase compared to $218.2M in 2013.
Skyward Specialty Insurance Group, Inc. (SKWD) is profitable, generating $170.0M in net income for the fiscal year ending 2025 with a net profit margin of 12.0%.
Skyward Specialty Insurance Group, Inc. (SKWD) reported an operating income of $216.4M, resulting in an operating profit margin of 15.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Skyward Specialty Insurance Group, Inc. (SKWD) generated $622.1M in gross profit for the year, representing a gross profit margin of 44.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Reserve adequacy in growth
Metrics are mathematically derived from official filings.
Premium Growth Accelerates Sharply
Skyward's revenue surged 48.7% year-over-year in Q2 2026, reaching $476.9M, according to the latest quarterly report, indicating robust execution in a hardening market.
The 48.7% revenue growth in Q2 2026, up from 19.7% in Q1, suggests a significant acceleration in premium writings, likely driven by rate increases and new business. This pace outpaces peers like KNSL (18% growth) and ACGL (14.3%), indicating Skyward is capturing market share in its niche segments. However, such rapid growth may strain underwriting capacity and reserve adequacy, warranting close monitoring of loss ratios.
Underwriting Discipline Drives Strong Margins
The combined ratio improved to 86.7% in Q2 2026 from 84.5% a year earlier, as reported in financial statements, reflecting sustained underwriting profitability.
Despite a higher loss ratio of 58.0% in Q2 2026 (up from 70.4% in Q2 2025), the combined ratio remains well below 100%, indicating strong underwriting margins. The fluctuation in loss ratios suggests volatility in claims experience, but the overall trend shows consistent profitability. The expense ratio appears well-controlled, allowing Skyward to maintain operating margins above 15% even as it scales.
Reserve Releases Bolster Earnings
Favorable prior-year reserve development appears to be supporting net income, as evidenced by the 194.3% EPS growth in Q4 2025, based on reported figures.
The sharp EPS spike in Q4 2025 (194.3% growth) suggests significant favorable reserve development, which may have inflated earnings beyond core underwriting performance. While this indicates conservative reserving in prior years, investors should assess whether such releases are sustainable or if they mask underlying deterioration in newer liability lines. The absence of detailed reserve data warrants caution in extrapolating this trend.
Investment Income Supports Bottom Line
Investment income data is unavailable, but the rising rate environment likely enhances yields on float, contributing to net margins of 12.03% as per the latest annual figures.
Although investment income is not disclosed in the quarterly data, the company's net margin of 12.03% suggests meaningful contribution from investment returns. In a rising rate environment, Skyward's fixed-income portfolio likely benefits, providing a buffer against underwriting volatility. However, the lack of explicit investment yield data limits precise analysis, and investors should monitor how rate changes impact overall profitability.
Q4 2024 Marks Earnings Inflection
Q4 2024 saw a dramatic drop in net income to $14.4M with EPS of $0.35, a 52.7% decline, as reported in financial statements, signaling a temporary underwriting setback.
The Q4 2024 combined ratio spiked to 93.9% and loss ratio to 79.2%, indicating a significant deterioration in underwriting performance, possibly due to adverse claims or reserve strengthening. This quarter stands out as an inflection point, after which the company rebounded strongly, with combined ratios returning to the mid-80s. The episode highlights the potential for volatility in specialty lines and the importance of monitoring loss trends.
Growth May Mask Reserve Risks
Rapid premium growth could lead to inadequate IBNR reserves, as suggested by the 48.7% revenue surge in Q2 2026, potentially impacting future earnings.
The aggressive expansion in premiums, particularly in long-tail liability lines, may result in initial reserve inadequacy if pricing does not fully account for emerging claims trends. Social inflation and litigation costs could further pressure loss ratios, as seen in the Q4 2024 spike. While current combined ratios are strong, the sustainability of these margins is uncertain if reserve development turns adverse. Investors should scrutinize reserve adequacy and loss ratio trends in the coming quarters.