Accelerant (ARX) Q4 2025 earnings summary

Executive summary

• Exchange Written Premium grew 35% year-over-year to $4.2 billion for FY 2025, with Q4 reaching $1.1 billion, up 24% year-over-year.

• Adjusted EBITDA for FY 2025 was $282 million, up 149% year-over-year, with Q4 Adjusted EBITDA at $71 million, up 52% year-over-year.

• Member count increased by 63 to 280, representing 29% year-over-year growth, with 15 new members added in Q4.

• Third-party written premium rose to 40% of Exchange Written Premium in Q4 2025, up from 21% in the prior year quarter.

• Proprietary data, AI-driven platform, and technology are core differentiators, driving underwriting and operational efficiency.

Financial highlights

• Q4 2025 revenue was $248 million, up 30% year-over-year; full-year revenue reached $913 million, up 51% year-over-year.

• Adjusted EBITDA margin was 28% in Q4 2025 and 31% for the full year, up from 19% in 2024.

• Adjusted net income for Q4 2025 was $51 million ($0.23 per share); for FY 2025, $179 million ($0.93 per share).

• Free cash flow conversion was 87% for FY 2025, generating $157 million of unrestricted, unlevered free cash flow.

• Gross loss ratio improved to 51.4% in Q4 2025 from 57.8% in Q4 2024.

Outlook and guidance

• FY 2026 guidance: Exchange Written Premium of at least $5.1 billion, third-party direct written premium of at least $2.2 billion, Adjusted EBITDA of at least $275 million.

• Q1 2026 guidance: Exchange Written Premium of $1.07–$1.13 billion, third-party direct written premium of $450–$470 million, Adjusted EBITDA of $64–$66 million.

• Expect continued shift toward fee-based segments and higher third-party premium proportion.

• Loss ratio performance expected to remain in line with previous years.