Accelerant (ARX) Q3 2025 earnings summary

Executive summary

• Achieved strong Q3 results with Exchange Written Premium of $1.043 billion, up 17% year-over-year, and revenue of $267 million, reflecting robust organic growth and expanding margins.

• Adjusted EBITDA rose 302% year-over-year to $105 million (39% margin), with underlying EBITDA at $66 million, and adjusted net income surged 320% to $79.8 million.

• Member count increased by 17 to 265, with ongoing global expansion and onboarding of new third-party insurers, including a Lloyd's facility.

• Net loss of $1.367 billion was driven by a non-cash, equity-neutral profits interest distribution expense related to the IPO.

• Significant data infrastructure advancements expanded unique data attributes from 23,000 to 57,000, fueling risk model improvements.

Financial highlights

• Exchange-rated premium reached $1.04 billion in Q3, up 17% year-over-year; revenue grew 74% to $267 million.

• Adjusted EBITDA was $105 million (39% margin), up over 300% year-over-year; underlying EBITDA (excluding $39 million investment gains) was $66 million.

• Adjusted net income grew to $80 million from $19 million, with adjusted EPS of $0.38.

• Gross loss ratio improved to 50.1% (Q3) and 51.2% (nine months), outperforming industry averages.

• Net revenue retention was 135% for the quarter.

Outlook and guidance

• Q4 2025 guidance: exchange-rated premium of $1.06–$1.1 billion, third-party direct written premium of $415–$430 million, adjusted EBITDA of $57–$62 million.

• Full-year 2025: exchange-rated premium of $4.18 billion, adjusted EBITDA of $270 million (including investment gains).

• 2026 guidance: at least $5 billion exchange-rated premium, $2.1 billion third-party direct written premium, $269 million adjusted EBITDA.

• Two-thirds of portfolio expected to be written by third-party insurers within 3–5 years.

• Effective tax rate for 2025 expected to fall below prior years due to UK tax residency.