Accelerant Q2 Earnings Beat Estimates on Strong Premium Growth

Accelerant Holdings Price, Consensus and EPS Surprise

Accelerant's Q2 Operations

Exchange Written Premium increased 23.3% year over year to $1.3 billion. Third-Party Direct Written Premium accounted for 47% of total Exchange Written Premium, up from 27% in the year-ago quarter, as Accelerant continued expanding its third-party insurer base. The company had 314 members at the end of the reported quarter compared with 248 in the prior-year period.

Pretax income rose to $87.4 million from $22.3 million a year ago, while GAAP net income increased to $80 million from $13.1 million. Share-based compensation was $25.2 million in the second quarter compared with $3 million a year earlier.

Adjusted EBITDA climbed 46.4% year over year to $93.1 million, while the adjusted EBITDA margin expanded 200 basis points to 31%. Adjusted net income increased 165.2% to $70 million.

Q2 Segmental Performance

Exchange Services

Operating revenues increased 30.5% year over year to $111.8 million. Adjusted EBITDA rose 32.9% to $74 million, while the adjusted EBITDA margin expanded 120 basis points to 66.2% from 65% in the prior-year quarter.

MGA Operations

Operating revenues increased 19.8% year over year to $70.1 million. Adjusted EBITDA rose 22.7% to $30.3 million, while the implied adjusted EBITDA margin expanded 100 basis points to 43.2% from 42.2% in the prior-year quarter.

Underwriting

Operating revenues increased 21.8% year over year to $133.9 million. Adjusted EBITDA declined 88.1% to $1.9 million, while the implied adjusted EBITDA margin contracted 1,310 basis points to 1.4% from 14.5% a year ago.

Accelerant's Q2 Financial Position

Accelerant exited the second quarter with cash, cash equivalents and restricted cash of $1.7 billion. Debt totaled $120.1 million.

Operating cash outflow was $90 million, primarily reflecting the timing of reinsurance payments within the underwriting business.

Accelerant's Capital Deployment Update

During the second quarter, ARX repurchased 4.73 million Class A common shares for approximately $66 million under its share repurchase program. As of June 30, 2026, the company had approximately $123 million of remaining authorization under the program.

Accelerant Fiscal 2026 Outlook

The company will be acquired by Thoma Bravo in an all-cash deal valued at more than $4 billion. Shareholders will receive $20.25 per share, representing a 49% premium to ARX’s Aug. 12 closing price. The transaction is expected to close in the first half of 2027, subject to shareholder and regulatory approvals. Following the completion of the deal, Accelerant will become a private company and leave the NYSE. Due to the pending transaction, it will not provide guidance for the third quarter or full-year 2026.

ARX’s Zacks Rank

Accelerant currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Here are some other stocks from the broader Finance space that have also reported their quarterly results: Kinsale Capital Group, Inc. KNSL, RLI Corp. RLI and Arch Capital Group Ltd. ACGL. Here's how they have performed:

Kinsale Capital delivered second-quarter 2026 net operating earnings of $5.54 per share, which outpaced the Zacks Consensus Estimate by 8.6%. The bottom line increased 15.9% year over year. KNSL’s operating revenues increased 16.8% year over year to $548.5 million, which surpassed the Zacks Consensus Estimate by 12.3%. The quarterly results benefited from growth in net earned premiums, increased net investment income, favorable prior-year reserve development and disciplined underwriting. However, these gains were partially offset by lower gross written premiums and higher operating expenses.

RLI reported second-quarter 2026 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate by 16.9%. The bottom line increased 1.2% from the prior-year quarter. RLI’s operating revenues for the reported quarter were $463 million, up 4.9% year over year. The top line beat the Zacks Consensus Estimate by 1.6%. The quarterly results reflect continued premium growth and higher investment income. However, weaker underwriting performance in the casualty segment partly offset these positives.

Arch Capital reported second-quarter 2026 operating income of $2.56 per share, which beat the Zacks Consensus Estimate by 2.8%. The bottom line decreased 0.8% year over year. ACGL’s revenues of $4.43 billion declined 6.9% year over year and missed the consensus mark by 3.1%. The results reflected lower earned premiums and catastrophe pressure, partly offset by higher net investment income.

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