Accelerant (ARX) Q3 2025 earnings summary

Executive summary

• Delivered strong Q3 2025 results with Exchange Written Premium of $1.043 billion, up 17% year-over-year, and adjusted EBITDA of $105 million, up 302% year-over-year, including $39 million in irregular investment gains.

• Member count increased to 265, with 17 new members added, and continued expansion of third-party insurer partnerships, including a Lloyd's facility.

• Completed IPO in July 2025, raising $392 million in net proceeds and redeeming all Class C preference shares.

• Net loss of $1.367 billion to $1.424 billion was driven by a non-cash, equity-neutral profits interest distribution expense related to the IPO.

• Achieved significant data infrastructure advancements, expanding unique data attributes to 57,000, fueling risk model improvements.

Financial highlights

• Total revenues for Q3 2025 were $267.4 million, up 74% year-over-year; for the nine months ended September 30, 2025, revenues were $664.5 million, up from $411.9 million.

• Adjusted EBITDA was $105 million for Q3 2025 (39% margin), and $211.3 million for the nine months (32% margin); underlying EBITDA was $66 million, up 153% year-over-year.

• Adjusted net income rose to $80 million for Q3 2025, up 320% year-over-year; adjusted EPS was $0.38.

• Gross loss ratio improved to 50.1% for Q3 2025 and 51.2% for the nine months, down from 52.8% year-over-year.

• Cash, cash equivalents, and restricted cash increased to $1.68 billion as of September 30, 2025.

Outlook and guidance

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

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

• FY2026 guidance: $5.0 billion exchange-rated premium, $2.1 billion third-party direct written premium (42% of EWP), and $269 million adjusted EBITDA.

• Two-thirds of the portfolio expected to be written by third-party insurers within three to five years.

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