Octave Specialty Group (OSG) Q2 2026 earnings summary

Executive summary

• Total revenue for Q2 2026 increased 51% year-over-year to $83.0 million, driven by Insurance Distribution segment growth and the ArmadaCare acquisition.

• Insurance Distribution revenue grew 77% year-over-year, with organic growth of 44% and contributions from the ArmadaCare acquisition.

• Net loss to shareholders improved to $(14.4) million from $(20.5) million in Q2 2025, reflecting better segment performance.

• Adjusted EBITDA to shareholders rose to $3.7 million from $(4.6) million year-over-year, with significant contributions from Insurance Distribution and Specialty P&C segments.

• AI-driven underwriting platform launched, reducing quote times and expected to drive efficiency and growth.

Financial highlights

• Insurance Distribution segment revenue reached $58.4 million, with organic revenue growth of 44%.

• Specialty P&C Insurance segment net premiums written increased 52% to $23 million, while gross premiums written declined 2% to $95 million.

• Net income for Specialty P&C Insurance was $1.1 million, up from $0.4 million year-over-year.

• Adjusted EBITDA to shareholders for Insurance Distribution was $9.8 million, up from $2.5 million; for Specialty P&C, $1.8 million, up from $0.7 million.

• Consolidated adjusted EBITDA improved to $3.7 million from -$4.6 million in Q2 2025.

Outlook and guidance

• Raised Insurance Distribution organic growth guidance to 25%+ (from 20%+) and adjusted EBITDA to $45 million (from $40 million).

• Everspan adjusted EBITDA guidance revised to $6 million (from $7.5 million) due to higher acquisition costs.

• Adjusted net income per share guidance updated to $0.15–$0.20 (from $0.50), reflecting refined estimates.

• Management expects the new AI-driven underwriting platform to accelerate and improve underwriting decisions and bring additional MGAs to market faster.

• 2026 expected to be first year of positive adjusted net income per share since P&C strategy launch.