Accelerant Holdings (ARX): Results of Operations and Financial Condition
Accelerant Holdings (ARX) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Accelerant Announces Second Quarter 2026 Results Accelerant Cancels Earnings Conference Call Following Announcement of Agreement with Thoma Bravo to Become a Private Company Second Quarter 2026 Results • Exchange Written Premium of $1.32 billion grew 23% year-over-ye
How this was made
The 30-second read
Why it matters
Traders get fresh quarterly performance data plus a major corporate event that changes the information set (no guidance) and shifts focus toward deal progression, terms, and timing.
Market read
This is a combined earnings-and-deal disclosure: Q2 shows strong growth and profitability, while the take-private agreement removes near-term guidance and increases deal-driven trading focus.
What to watch
The company explicitly updates non-GAAP definitions (excluding investment gains/losses) and provides no Q3/full-year guidance, which can change how traders model forward earnings and deal economics.
Accelerant Announces Second Quarter 2026 Results; company cancels earnings conference call following agreement with Thoma Bravo to become a private company.
Exchange Written Premium grew 23% year-over-year to $1.32 billion, operating revenues increased 56% year-over-year, and adjusted EBITDA increased 91% year-over-year. GAAP net income was $80.0 million versus $13.1 million in the prior year, although results included $53.0 million of net realized and unrealized investment gains.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Number of membersother | 314 | – | – |
| Net revenue retentionother | 111 % | – | – |
| Exchange written premiumother | $ 1,322.3 | – | 23 % |
| Accelerant direct written premiumother | 53 % | – | – |
| Third-party direct written premiumother | 47 % | – | – |
| Accelerant-retained exchange premiumother | 13 % | – | – |
| Exchange written premium growth rateother | 23 % | – | – |
| Total revenuesGAAP | $ 356.9 | – | – |
| Ceding commission incomeGAAP | $ 75.1 | – | – |
| Direct commission incomeGAAP | $ 92.5 | – | – |
| Net earned premiumsGAAP | $ 129.1 | – | – |
| Net investment incomeGAAP | $ 7.2 | – | – |
| Net realized gains on investmentsGAAP | $ 26.0 | – | – |
| Net unrealized gains (losses) on investmentsGAAP | $ 27.0 | – | – |
| Gross loss ratioGAAP | 52.0 % | – | – |
| Income before income taxesGAAP | $ 87.4 | – | – |
| Income tax expenseGAAP | $ (7.4 ) | – | – |
| Net incomeGAAP | $ 80.0 | – | – |
| Net income attributable to Accelerant common shareholdersGAAP | $ 78.7 | – | – |
| Basic earnings per common shareGAAP | $ 0.36 | – | – |
| Diluted earnings per common shareGAAP | $ 0.36 | – | – |
| Operating revenuesnon-GAAP | $ 303.9 | – | 56% |
| Adjusted EBITDAnon-GAAP | $ 93.1 | – | 91% |
| Adjusted EBITDA marginnon-GAAP | 31 % | – | – |
| Adjusted net incomenon-GAAP | $ 70.0 | – | 165% |
| Adjusted earnings per diluted sharenon-GAAP | $ 0.32 | – | 146% |
| Exchange Written Premium during the trailing twelve months ended June 30, 2026other | $4.59 billion | – | – |
| Net cash (used in) provided by operating activities, six months ended June 30GAAP | (90.0 ) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Exchange ServicesOperating revenues | $ 111.8 | – | – |
| MGA OperationsOperating revenues | $ 70.1 | – | – |
| UnderwritingOperating revenues | $ 133.9 | – | – |
Capital returns
- Repurchased 4,725,968 Class A common shares for $66 million.
- The company has approximately $123 million of remaining authorization under its share repurchase program.
- Acquisition of common shares was (82.6 ) for the six months ended June 30, 2026.
- Dividends paid to non-controlling interests were (1.7 ) for the six months ended June 30, 2026.
What drove it
- Exchange Written Premium grew 23% year-over-year.
- Third-Party Direct Written Premium accounted for 47% of Exchange Written Premium volume.
- The company grew with third-party insurers and connected them directly to its Risk Capital Partners.
- The company facilitated the formation of a new third-party insurance company and announced enhanced partnership agreements with three existing Accelerant Risk Exchange Insurers.
- The company introduced its front door data AI agent, ARC, and rolled out AI office hours and the Accelerant Talent Portal.
Concerns
- Gross loss ratio was 52.0 % compared with 50.5 % in the prior year.
- Net revenue retention was 111 % compared with 151 % in the prior year.
- GAAP total revenues included $ 26.0 of net realized gains on investments and $ 27.0 of net unrealized gains (losses) on investments.
- Net cash (used in) provided by operating activities was (90.0 ) for the six months ended June 30, 2026.
- The company will not provide guidance for the third quarter of 2026 or the full year of 2026 as a result of the pending transaction.
What to watch
- Completion and terms of the pending acquisition by Thoma Bravo.
- Exchange Written Premium and the proportion of Third-Party Direct Written Premium.
- Net revenue retention and gross loss ratio.
- Operating cash flow, other reinsurance recoverables, and payables to reinsurers.
- Any future disclosures relating to the company's decision not to provide third-quarter or full-year 2026 guidance.
Balance sheet and cash flow
- Cash, cash equivalents and restricted cash were $ 1,656.3 as of June 30, 2026, compared with $ 1,799.3 as of December 31, 2025.
- Total investments were $ 763.3 as of June 30, 2026, compared with $ 806.4 as of December 31, 2025.
- Debt was $ 120.1 as of June 30, 2026, compared with $ 121.3 as of December 31, 2025.
- Total assets were $ 8,943.3 as of June 30, 2026, compared with $ 8,263.1 as of December 31, 2025.
- Total liabilities were $ 8,199.3 as of June 30, 2026, compared with $ 7,536.7 as of December 31, 2025.
- Total Accelerant shareholders’ equity was $ 717.4 as of June 30, 2026, compared with $ 697.7 as of December 31, 2025.
- Net cash (used in) provided by operating activities was (90.0 ) for the six months ended June 30, 2026, compared with 309.3 for the six months ended June 30, 2025.
- Capitalized technology development expenditures were (19.9 ) for the six months ended June 30, 2026, compared with (17.3 ) for the six months ended June 30, 2025.
Analysis
Accelerant reported strong premium and operating-revenue growth in the second quarter. Exchange written premium was $ 1,322.3, compared with $ 1,072.3 in the prior year, with the company reporting a 23 % exchange written premium growth rate. The platform had 314 members, compared with 248, while net revenue retention was 111 % compared with 151 %. Trailing twelve-month Exchange Written Premium was $4.59 billion.
The mix of written premium shifted toward third-party business. Accelerant direct written premium was 53 %, compared with 73 %, and Third-party direct written premium was 47 %, compared with 27 %. Accelerant-retained exchange premium was 13 %, compared with 6 %. Management cited growth with third-party insurers, direct connections to Risk Capital Partners, formation of a new third-party insurance company, and enhanced agreements with three existing Accelerant Risk Exchange Insurers.
GAAP total revenues were $ 356.9, compared with $ 219.1. Operating revenues, which exclude net realized and unrealized gains or losses on investments, were $ 303.9 compared with $ 219.2, and management said this represented a 56% increase. Adjusted EBITDA was $ 93.1 compared with $ 63.6, with adjusted EBITDA margin at 31 % compared with 29 %. The quarter's GAAP revenue and earnings included $ 26.0 of net realized gains on investments and $ 27.0 of net unrealized gains (losses) on investments.
Income before income taxes was $ 87.4 compared with $ 22.3, and net income was $ 80.0 compared with $ 13.1. Adjusted net income was $ 70.0 compared with $ 26.4, while adjusted earnings per diluted share were $ 0.32 compared with $ 0.13. The gross loss ratio was 52.0 %, compared with 50.5 %, an item that contrasts with the improvement in adjusted EBITDA margin.
Capital allocation included repurchases of 4,725,968 Class A common shares for $66 million, with approximately $123 million of authorization remaining. Cash, cash equivalents and restricted cash were $ 1,656.3 and debt was $ 120.1 as of June 30, 2026. Net cash (used in) provided by operating activities was (90.0 ) for the six months ended June 30, 2026. The company will not host its scheduled earnings call and will not provide third-quarter or full-year 2026 guidance because of its definitive agreement to be acquired by Thoma Bravo.
Management, verbatim
We had a great second quarter financially, operationally, and strategically. Financially, we delivered strong growth in exchange written premium, third-party premium, and adjusted EBITDA.
Jeff Radke, Chairman and CEO
Our second quarter financial results highlight the attractive growth and durability of our business.
Linda S. Huber, Chief Financial Officer
Not in the filing
stated, not guessed- GAAP operating income was not reported.
- GAAP gross margin was not reported.
- Free cash flow was not reported.
- A quarterly operating cash flow figure was not reported; cash flow was reported only for the six months ended June 30.
- A prior-quarter comparison was not reported for the listed second-quarter metrics.
- Third-quarter 2026 guidance was not provided.
- Full-year 2026 guidance was not provided.
- Prior outlook was not provided, so comparison with prior guidance is unavailable.
- A dividend to Accelerant common shareholders was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Accelerant filed an 8-K with Q2 2026 results and referenced a separate definitive agreement to be acquired by Thoma Bravo, leading to cancellation of the scheduled earnings call.
Ticker impact
Accelerant reports Q2 2026 results and discloses it has a definitive agreement with Thoma Bravo to become private, canceling the earnings call and guidance.
Near-term trading likely bifurcates between upbeat operating metrics and deal-arbitrage dynamics, with guidance uncertainty adding volatility.
The filing includes specific Q2 financial metrics (exchange written premium, net income, adjusted EBITDA) and a definitive agreement to be acquired, plus explicit cancellation of the call and no Q3/full-year guidance due to the pending transaction.
Market effects
Highlights continued growth in specialty insurance exchange models and the role of private-equity-backed platform consolidation.
Primarily US-listed small-cap risk exchange sentiment; limited direct regional spillover.
Thoma Bravo deal framing may influence cross-border specialty insurance tech M&A expectations, but no additional global specifics are provided.
Counterpoint
Strong Q2 exchange metrics may be less predictive for equity value if the take-private terms imply a discount or if deal timing/conditions introduce execution risk.
Key entities
- public_companyAccelerant Holdings
NYSE-listed risk exchange platform reporting Q2 2026 results and disclosing a definitive take-private agreement with Thoma Bravo.
- private_equityThoma Bravo
Acquirer in a definitive agreement to take Accelerant private, prompting cancellation of the earnings call and removal of guidance.
