Accelerant (ARX) Q4 2025 earnings summary

Executive summary

• Exchange Written Premium reached $1.1B in Q4 2025 (up 24% YoY) and $4.2B for the full year (up 35% YoY), exceeding guidance on all key metrics.

• Adjusted EBITDA for Q4 was $71M (up 52% YoY), and $282M for FY 2025 (up 149% YoY), with margin expanding to 31%.

• Member count grew to 280 at year-end 2025, with 15 new members added in Q4 and a 29% YoY increase.

• Third-party direct written premium accounted for 40% of Exchange Written Premium in Q4, up from 21% in the prior year quarter.

• AI-driven platform and proprietary data are core differentiators, enabling superior underwriting, portfolio management, and claims optimization.

Financial highlights

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

• Adjusted net income for Q4 was $51M ($0.23/share), up from $39M last year; FY 2025 adjusted net income was $179M ($0.93/share).

• Gross loss ratio improved to 51.4% in Q4 2025 from 57.8% in Q4 2024; full-year gross loss ratio was 51%.

• Free cash flow conversion reached 87% for the year, generating $157M unrestricted free cash flow.

• Net income for the full year 2025 was a loss of $1,345.2M, primarily due to non-recurring IPO-related expenses.

Outlook and guidance

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

• Full-year 2026 guidance: Exchange Written Premium of at least $5.1B, third-party direct written premium of at least $2.2B, Adjusted EBITDA of at least $275M.

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

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