The company achieved a 19.7% year-over-year revenue expansion in 2026Q1 while maintaining a structurally sound 84.3% combined ratio, signaling effective pricing power in its specialty segments.
| Revenue | 1.55B | 1.41B | 1.15B | 895.4M | 636.4M | 535.82M | 447.89M | 218.24M |
| Revenue Growth % | 22.89% | 23.18% | 28.17% | 40.7% | 18.77% | 19.63% | 105.23% | - |
| Medical Costs & Claims | 1.02B | 795.02M | 819.78M | 623.75M | 468.21M | 401.47M | 399.15M | 0 |
| Medical Cost Ratio % | 66.24% | 56.24% | 71.43% | 69.66% | 73.57% | 74.93% | 89.12% | 0% |
| Gross Profit | 484.81M | 622.11M | 327.89M | 271.65M | 168.2M | 134.35M | 48.73M | 218.24M |
| Gross Margin % | 31.36% | 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 | 233.49M | 405.68M | 175.15M | 161.55M | 118.42M | 86.04M | 143.27M | 197.19M |
| OpEx / Revenue % | 15.1% | 28.7% | 15.26% | 18.04% | 18.61% | 16.06% | 31.99% | 90.36% |
| Depreciation & Amortization | 10.14M | 3.54M | 3.36M | 3.89M | 4.1M | 5.6M | 5.99M | 0 |
| Combined Ratio % | 81.34% | 84.94% | 86.69% | 87.7% | 92.18% | 90.98% | 121.11% | 90.36% |
| Operating Income | 237.82M | 216.42M | 152.74M | 110.1M | 49.78M | 48.31M | -94.53M | 21.05M |
| Operating Margin % | 15.38% | 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 | 248.04M | 219.96M | 156.1M | 113.99M | 53.88M | 53.91M | -88.55M | 16.74M |
| EBITDA Margin % | 16.05% | 15.56% | 13.6% | 12.73% | 8.47% | 10.06% | -19.77% | 7.67% |
| Interest Expense | 13.8M | 7.92M | 9.5M | 10.02M | 6.41M | 4.62M | 5.53M | 0 |
| Non-Operating Income | -13.8M | -7.92M | -9.5M | -10.02M | -6.41M | -4.62M | -5.53M | 4.31M |
| Pretax Income | 227.06M | 216.42M | 152.74M | 110.1M | 49.78M | 48.31M | -94.53M | 16.74M |
| Pretax Margin % | 14.69% | 15.31% | 13.31% | 12.3% | 7.82% | 9.02% | -21.11% | 7.67% |
| Income Tax | 49.36M | 46.4M | 33.91M | 24.12M | 10.39M | 9.99M | -19.89M | 5.86M |
| Effective Tax Rate % | 21.74% | 21.44% | 22.2% | 21.91% | 20.86% | 20.68% | 21.04% | 35% |
| Net Income | 184.76M | 170.03M | 118.83M | 85.98M | 39.4M | 38.32M | -74.64M | 10.88M |
| Net Margin % | 11.95% | 12.03% | 10.35% | 9.6% | 6.19% | 7.15% | -16.67% | 4.98% |
| Net Income Growth % | 40% | 43.09% | 38.2% | 118.26% | 2.82% | 151.33% | -786.11% | - |
| EPS (Diluted) | 4.41 | 4.07 | 2.87 | 2.24 | 1.05 | 1.18 | -2.14 | 0.29 |
| EPS Growth % | 35.85% | 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 |
Social inflation litigation exposure
As reported in financial statements, Skyward Specialty achieved a 19.7% year-over-year revenue increase in 2026Q1, demonstrating consistent top-line expansion that suggests the company is successfully leveraging current market pricing power to capture share within its specialized, non-commoditized niche underwriting segments across the United States.
The consistent double-digit growth trajectory indicates that the firm's focus on underserved specialty markets remains a potent driver of volume. Investors should monitor whether this rapid expansion persists without compromising the quality of the underlying risk selection as the competitive landscape evolves.
Based on the company's reported figures, the combined ratio of 84.3% in 2026Q1 highlights a robust underwriting margin, reflecting a disciplined approach to claims management that appears to effectively insulate the bottom line from the volatility often seen in broader commercial insurance market cycles.
Maintaining a combined ratio consistently below 90% suggests that the company's specialized underwriting talent is successfully pricing risk above the expected loss costs. This performance implies that the firm is not currently reliant on investment income to achieve overall profitability, which provides a significant buffer against potential market downturns.
According to historical income data, the firm successfully navigated a significant earnings dip in 2024Q4, where the combined ratio spiked to 93.9%, by rapidly returning to a sub-85% ratio in subsequent quarters, signaling an effective recovery from localized underwriting pressures or potential reserve adjustments.
The sharp rebound from the 2024Q4 earnings trough suggests that the company's operational infrastructure is capable of absorbing short-term shocks without long-term impairment to its profitability profile. This recovery warrants further investigation into whether the 2024Q4 event was a structural anomaly or a recurring risk inherent in the company's specific liability lines.
While current underwriting margins appear strong, analysis of the loss ratio trends suggests that rising social inflation and litigation costs in casualty lines may pose a latent risk to future reserve adequacy, as indicated by the fluctuations in loss ratios observed over the last ten quarters.
Investors should remain cautious regarding the potential for future reserve strengthening, which could mask underlying underwriting deterioration if loss trends in commercial auto and professional liability continue to accelerate. The current profitability may be partially dependent on favorable reserve development that could prove unsustainable if litigation severity trends persist.
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.