Executive Summary

Accelerant delivered strong topline and profitability: total revenues $219.1M (+68% y/y), net income $13.1M (vs. $(9.2)M y/y), diluted EPS $0.04 (vs. $(0.05) y/y), and Adjusted EBITDA $63.5M with a 29% margin .
Exchange Written Premium (EWP) was $1.07B (+42% y/y), net revenue retention 151%, third‑party direct written premium rose to 27%, and Accelerant net retention decreased to 6% (management expects ~10% over time) .
Versus S&P Global consensus for Q2: EPS beat ($0.139 actual vs. $0.121* estimate), revenue missed on S&P’s definition ($204.7M actual vs. $253.1M* estimate); note definition differences vs. company’s “Total revenues” ($219.1M) . Values with * retrieved from S&P Global.
Near‑term catalysts: Q3 guidance for EWP of $1.01–$1.04B and Adjusted EBITDA of $66–$81M (including gains from a minority stake sale), plus continued onboarding of third‑party risk exchange insurers (e.g., Lloyd’s facility) and strong member growth .

What Went Well and What Went Wrong

What Went Well

Rapid platform scale and member growth: “We had more members writing more premium… than ever before,” with 248 members and $1.1B EWP in Q2, +42% y/y; “the platform is singing” .
Margin expansion and profitability: Adjusted EBITDA $63.5M vs. $13.0M y/y; Adjusted EBITDA margin 29% vs. 10% y/y; CFO emphasized “continued and consistent expansion of our operating margins” .
Underwriting improvement: gross loss ratio improved to ~50.5% in Underwriting (Q2) from ~54.7% y/y, driven by more stable claims and prior reserve strengthening in 2024 on pre‑2023 UK/EU lines .

What Went Wrong

Revenue miss versus S&P consensus: S&P “Revenue” actual $204.7M vs. estimate $253.1M*, while company “Total revenues” reported $219.1M (definition differences likely caused discrepancy) . Values with * retrieved from S&P Global.
FX volatility: net foreign exchange losses of $14.2M in Q2 (largely offset in OCI, per management, but a drag on GAAP net income) .
Elevated non‑GAAP adjustments and complexity: sizable “Other expenses” ($16.2M) and consolidation/elimination effects, requiring careful interpretation of segment profitability and cash conversion timing .

Financial Results

Reported Financials (GAAP/Non-GAAP)

Metric	Q2 2024	Q2 2025
Total revenues ($USD Millions)	$130.1	$219.1
Net income ($USD Millions)	$(9.2)	$13.1
Diluted EPS ($USD)	$(0.05)	$0.04
Adjusted EBITDA ($USD Millions)	$13.0	$63.5
Adjusted EBITDA Margin (%)	10%	29%

Consensus vs. Actual (S&P Global definitions)

Metric	Q2 2025 Estimate	Q2 2025 Actual	# of Estimates
Primary EPS Consensus Mean ($USD)	0.12143*	0.13887*	7*
Revenue Consensus Mean ($USD)	253.10M*	204.70M*	7*

Values with * retrieved from S&P Global.

Sequential Context (QoQ)

Metric	Q1 2025	Q2 2025
Revenues ($USD Millions)	$161.8*	$219.1

Values with * retrieved from S&P Global.

Segment Breakdown (Q2 2025 vs. Q2 2024)

Segment	Revenue Q2 2024 ($M)	Revenue Q2 2025 ($M)	Adj. EBITDA Q2 2024 ($M)	Adj. EBITDA Q2 2025 ($M)
Exchange Services	$53.7	$85.7	$40.3	$55.7
MGA Operations	$32.9	$58.1	$6.2	$24.3
Underwriting	$79.3	$110.2	$(5.2)	$16.2
Total Segments	$165.9	$254.0	$41.3	$96.2
Consolidation & Elims / Corporate	$(35.9)	$(36.0)	$(28.3)	$(32.7)
Total Consolidated	$130.1	$219.1	$13.0	$63.5

KPIs (Q2 2025 vs. Q2 2024)

KPI	Q2 2024	Q2 2025
Number of Members	186	248
Net revenue retention	135%	151%
Exchange written premium ($USD Millions)	$756.8	$1,072.3
Accelerant direct written premium (%)	90%	73%
Third‑party direct written premium (%)	10%	27%
Accelerant‑retained exchange premium (%)	11%	6%
Exchange written premium growth rate (%)	83%	42%
Income (loss) before taxes ($M)	$(4.3)	$22.3
Net income (loss) ($M)	$(9.2)	$13.1
Adjusted EBITDA ($M)	$13.0	$63.5
Adjusted EBITDA margin (%)	10%	29%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Exchange Written Premium ($B)	Q3 2025	Not provided	$1.01–$1.04	New
Adjusted EBITDA ($M) – Underlying (excl. MGA minority stake sale)	Q3 2025	Not provided	$41–$51	New
Adjusted EBITDA ($M) – Sale contribution	Q3 2025	Not provided	$25–$30	New
Adjusted EBITDA ($M) – Total	Q3 2025	Not provided	$66–$81	New
Net retention (%)	Medium term	~10% target	Expect trend toward ~10%	Directional
Stock‑based compensation (non‑cash)	Multi‑year	Not provided	RSUs $50M and options $243M to be expensed over 4 years; one‑time $1.38B profit interests settlement at IPO (equity‑neutral)	New disclosure

Note: Management did not provide a GAAP reconciliation for Q3 quarterly guidance due to tax rate, FX, and one‑time items uncertainty .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q‑2 and Q‑1)	Current Period (Q2 2025)	Trend
AI/technology initiatives	Not available in public docs	ML‑led risk indices; LLMs on claims; 200%+ improvement in subrogation; 95M rows, 23k attributes; 150 FTEs on platform	Strengthening capability
Supply side (Member growth)	Not available in public docs	+16 new members to 248; robust pipeline; embedded growth via net revenue retention 151%	Accelerating
Demand side (Risk capital, third‑party insurers)	Not available in public docs	Onboarding Lloyd’s, etc.; third‑party mix up to 27%; Hadron $170M in Q2; desire for diversified mix (insurers/reinsurers/institutional)	Broadening and diversifying
Net retention optimization	Not available in public docs	Net retention 6% with additional reinsurance; expected ~10% over time	Lower near‑term, normalize later
Rate cycle/macro	Not available in public docs	US ~7% rate increase; UK/EU ~flat; SME focus reduces cycle sensitivity	Stable portfolio pricing
Loss ratios/reserving	Not available in public docs	Gross loss ratio ~50.5% Q2; prior year had reserve strengthening on pre‑2023 EU/UK lines	Improved y/y

Management Commentary

CEO: “We’re building the best specialty insurance marketplace in the world… our pipeline is robust and the network effects are compounding.”
Head of Strategy: “We launched machine learning‑led Accelerant risk indices… improved claims subrogation rates by over 200%… increasing underwriting profitability by 1% of premium for our reinsurers.”
CFO: “We accelerated our growth, reduced our percentage net retention and saw increasing margin expansion and profitability… Adjusted EBITDA was $63.5M for the quarter versus $13.0M in 2024.”

Q&A Highlights

Hadron exposure: ~$170M third‑party premium in Q2; management expects Hadron mix to decline over time as other partners ramp; ARX management has no equity in Hadron .
Third‑party mix and retention: third‑party insurers expected to be part of a diversified “three‑legged stool” (insurers, reinsurers, institutional investors); long‑term balanced mix desired; net retention expected to trend to ~10% .
Underwriting performance: gross loss ratio ~50.5% (Q2) vs. ~54.7% prior year, reflecting portfolio stability and prior reserve actions; net FX losses largely offset in OCI .
Guidance mechanics: Q3 Adjusted EBITDA split between underlying $41–$51M and $25–$30M from minority stake sale; no GAAP reconciliation due to variability .

Estimates Context

S&P Global consensus EPS: $0.121* vs. actual $0.139* (beat). S&P revenue: $253.1M* vs. actual $204.7M* (miss). Note: S&P “Revenue” may differ from company “Total revenues” ($219.1M) reported in the 8‑K . Values with * retrieved from S&P Global.
Expect analysts to raise EBITDA estimates given demonstrated margin expansion and Q3 contribution from the minority stake sale, while aligning revenue definitions across sources .

Key Takeaways for Investors

Platform momentum: EWP $1.07B (+42% y/y) with 248 members and 151% net revenue retention underscores strong embedded growth and network effects .
Profitability inflection: Adjusted EBITDA up 4.9x y/y with margins at 29%; segment profitability broad‑based across Exchange Services, MGA, and improved Underwriting .
Capital‑light shift: Third‑party direct written premium up to 27% and net retention down to 6% reduce balance sheet intensity; management targets ~10% retention longer‑term .
Risk controls: Gross loss ratio improved (~50.5% Q2) with tech‑enabled claims and reserving discipline; mix shift toward diversified risk capital partners lowers concentration risk .
Near‑term setup: Q3 guidance (EWP $1.01–$1.04B; Adjusted EBITDA $66–$81M including transaction gains) plus continued third‑party insurer onboarding are key catalysts .
Watch items: FX volatility in GAAP results, revenue definition differences across sources (S&P vs. company), and timing effects from consolidation/eliminations .
Medium‑term thesis: A data‑driven, two‑sided exchange in specialty insurance with stable take rates and expanding margins supports durable fee‑based growth and compounding earnings power .

Non‑GAAP note: Adjusted EBITDA and related margins are reconciled in the 8‑K and should be considered alongside GAAP results; management definitions and reconciliations provided in “Use of Non‑GAAP Financial Measures” and the reconciliation tables .

Accelerant Holdings (ARX)·Q2 2025 Earnings Summary