Accelerant (ARX) Q2 2025 earnings summary

Executive summary

• Achieved $1.1 billion in Exchange Written Premium for Q2 2025, up 42% year-over-year, and $3.8 billion for the trailing 12 months, all organic growth.

• Total revenues for Q2 2025 rose 68% year-over-year to $219.1 million, driven by strong growth in ceding and direct commission income, and net earned premiums.

• Net income for Q2 2025 was $13.1 million, reversing a net loss of $9.2 million in Q2 2024; net income for the first half of 2025 was $20.9 million, up from a loss of $7.1 million in the prior year period.

• Adjusted EBITDA for Q2 2025 was $63.5 million (29% margin), up from $13.0 million (10% margin) in Q2 2024.

• IPO completed in July 2025, raising $393.4 million in net proceeds, marking the first earnings call as a public company.

Financial highlights

• Exchange Written Premium grew 42% year-over-year to $1,072.3 million in Q2 2025.

• Net revenue retention was 151% for the trailing 12 months, up from 135% in Q2 2024.

• Adjusted EBITDA for the first half of 2025 was $106.3 million, up from $40.5 million in the first half of 2024.

• Net income for the first half of 2025 was $20.9 million, compared to a net loss of $7.1 million in the prior year period.

• Gross loss ratio improved to 50.5% from 54.7% year-over-year.

Outlook and guidance

• Q3 2025 exchange written premium expected between $1.01–$1.04 billion, 14–17% growth year-over-year.

• Q3 2025 adjusted EBITDA (excluding a minority stake sale) expected at $41–$51 million, up 58–95% year-over-year.

• Minority stake sale in an owned MGA expected to add $25–$30 million to Q3 adjusted EBITDA, totaling $66–$81 million (up 154–210%).

• Effective tax rate for 2025 is projected to fall below prior years due to a change in tax residency to the UK and related operational efficiencies.

• Management anticipates continued growth in members and premium volumes, with a focus on technology investment and platform expansion.