Accelerant Announces Third Quarter 2025 Results

• Exchange Written Premium of $1.043 billion grew 17% year-over-year and 39% on a year-to-date basis
• Net loss of $1.367 billion driven by non-cash and equity-neutral profits interest distribution expenses
• Adjusted net income of $79.8 million, up 320% over the prior year
• Net loss per basic and diluted share of $6.99, adjusted earnings per diluted share of $0.38
• Adjusted EBITDA of $105.0 million and $66.3 million when excluding in-period investment gains (Adjusted EBITDA was up 302% year-over-year and 164% when excluding the investment gains)
• Additional key measures are presented below

ATLANTA--(BUSINESS WIRE)--
Accelerant Holdings (NYSE: ARX), a leading technology company operating a data-driven risk exchange platform for the specialty insurance market, today announced financial results for the third quarter ended September 30, 2025.

“We delivered a strong third quarter, reflecting the continued momentum across our platform,” said Jeff Radke, Co-Founder and CEO. “We exceeded both top- and bottom-line growth expectations, added new third-party insurers including a Lloyd’s facility and continued to bring high-quality Members to the Risk Exchange. Our technology and data capabilities are deepening our advantage, strengthening relationships across the network and driving consistent, profitable growth across the business.”

“Our third quarter results underscore the scalability of our model and the quality of our earnings,” said Jay Green, Accelerant’s Chief Financial Officer. “Adjusted EBITDA and Adjusted Net Income each grew over 300%, which headline another quarter of strong profitability and expanding margins. Our disciplined execution and high-conversion, fee-based model continue to create durable, long-term value. We’ve introduced a more robust earnings presentation this quarter that will be available on our investor relations website.”

Third Quarter 2025 Key Results

	Three Months Ended September 30,								Nine Months Ended September 30,
(in millions, unless indicated)		2025				2024				2025				2024
Number of members		265				204				265				204
Net revenue retention		135	%			146	%			135	%			146	%
Exchange written premium	$	1,042.9			$	888.4			$	3,100.4			$	2,229.0
Accelerant direct written premium		68	%			79	%			74	%			86	%
Third-party direct written premium		32	%			21	%			26	%			14	%
Accelerant-retained exchange premium		7	%			10	%			7	%			10	%
Exchange written premium growth rate		17	%			94	%			39	%			84	%
Total revenues	$	267.4			$	153.7			$	664.5			$	411.9
Gross loss ratio		50.1	%			51.8	%			51.2	%			52.8	%
(Loss) income before income taxes	$	(1,357.5	)		$	1.3			$	(1,319.7	)		$	9.0
Net (loss) income	$	(1,367.0	)		$	9.4			$	(1,346.1	)		$	2.3
Non-GAAP financial measures (1)
Adjusted net income (1)	$	79.8			$	19.0			$	127.5			$	27.3
Adjusted EBITDA (1)	$	105.0			$	26.1			$	211.3			$	66.6
Adjusted EBITDA margin (1)		39	%			17	%			32	%			16	%

Conference Call Information

Accelerant will host a webcast and conference call to discuss the third quarter financial results on November 13, 2025, at 8:00 a.m. ET. A live webcast of the call can be accessed on Accelerant’s Investor Relations website at https://investor.accelerant.ai. To access the call via telephone in North America, please dial 800-715-9871. For callers outside the United States, please dial +1 646-307-1963. Participants should reference the conference call ID code “6232893” after dialing in.

A webcast replay of the call will be available on Accelerant's website at accelerant.ai in its Investors section for one year following the call.

About Accelerant

Accelerant is a data-driven Risk Exchange connecting underwriters of specialty insurance risk with risk capital providers. Accelerant was founded in 2018 by a group of longtime insurance industry executives and technology experts who shared a vision of rebuilding the way risk is exchanged – so that it works better, for everyone. The Accelerant Risk Exchange does business across 22 different countries and more than 500 specialty insurance products.

The Company generates revenue by charging fees on the Exchange Written Premium shared with Risk Capital Partners that rely on Accelerant to source, manage and monitor portfolios of specialty risk. There was $1.043 billion in Exchange Written Premium during the third quarter 2025. Accelerant harnesses advanced data analytics and AI to optimize risk management, align incentives across the insurance value chain and provide transparent and efficient solutions for MGAs and Risk Capital Partners globally.

Forward-Looking Statements

All statements in this release and in the corresponding earnings call that are not historical are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve substantial risks and uncertainties. You can generally identify forward-looking statements by our use of forward-looking terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “projection,” “seek,” “should,” “will” or “would,” or the negative thereof or other variations thereon or comparable terminology. In particular, statements about the markets in which we operate, including growth of our various markets, and our expectations, beliefs, plans, strategies, objectives, prospects, assumptions or future events or performance contained in this release and in the corresponding earnings call are forward-looking statements.

We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed in our Quarterly Report on Form 10-Q under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements, or could affect our share price.

Use of Non-GAAP Financial Measures

In assessing the performance of our business, non-GAAP financial measures are used that are derived from our consolidated financial information but are not presented in our consolidated financial statements prepared in accordance with GAAP. We consider these non-GAAP financial measures to be useful metrics for management and investors to evaluate our financial performance by excluding certain items that are related to our non-core business operations and therefore are not considered to be directly attributable to our underlying operating performance.

Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income (Loss) and Adjusted earnings per diluted share should not be considered substitutes for the reported results prepared in accordance with GAAP and should not be considered in isolation or as alternatives to GAAP net income or net (loss) as indicators of our financial performance. Although we use Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income (Loss) and Adjusted earnings per diluted share as financial measures to assess the performance of our business, such use is limited because it does not include certain material costs necessary to operate our business. Our presentation of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income (Loss) and Adjusted earnings per diluted share should not be construed as indications that our future results will be unaffected by unusual or non-recurring items. These non-GAAP financial measures, as determined and presented by us, may not be comparable to related or similarly titled measures reported by other companies. Set forth below are reconciliations of our most directly comparable financial measures calculated in accordance with GAAP to these non-GAAP financial measures on a consolidated basis.

Adjusted EBITDA and Adjusted Net Income (Loss)

We define Adjusted EBITDA as GAAP net income (loss) less the impact of depreciation and amortization, interest expenses, income tax expenses and the following items:

• Other expenses: Represents costs related to our non-core business operations, primarily related to our global enterprise resource planning system and integrated financial reporting systems, and legal and advisory costs in connection with corporate development activities including mergers and acquisitions, capital raising activities and entity formations that support our growing business.

• Nonrecurring profit interest distribution expenses resulting from the IPO: Represents non-cash profits interest distribution expenses related to the settlement of all outstanding profits interest awards through the distribution of 65,270,453 Class A common shares of the Company held by Accelerant Holdings LP to certain officers and employees of the Company that fully vested upon the IPO. These expenses were entirely offset by a corresponding capital contribution for that distribution of shares. These expenses only occurred at one point in time and will not recur.

• Share-based compensation expenses included within general and administrative expenses: Represents non-cash expense related to the fair value of share-based awards granted to employees and directors, including restricted stock units and stock options and other awards that can be settled in cash, recognized over the requisite service period for the awards.

• Net foreign currency exchange gains (losses): The functional currency for each of our operating subsidiaries is generally the currency of the local operating environment. Transactions in currencies other than the local operation’s functional currency are remeasured into the functional currency, and the resulting foreign exchange gains or losses are reflected in net foreign currency exchange gains (losses). Such gains and losses are generally offset by the translation of our subsidiaries who have the corresponding reinsurance-related balances within their own functional currencies, whereby such effects are translated to other comprehensive income, yielding a much lower net impact on total comprehensive income and equity.

We define Adjusted Net Income (Loss) as GAAP net income (loss) less the impact of other expenses, nonrecurring profits interest distribution expenses, share-based compensation expenses and the tax effect of the adjustments for other expenses (such measure differs from Adjusted EBITDA as it includes the effect of interest, taxes, depreciation and amortization, as well as foreign currency exchange gains (losses)). Adjusted earnings per diluted share is calculated as adjusted net income for the respective periods divided by the sum of US GAAP basis diluted shares presented herein and certain dilutive restricted stock units which added 2,963,668 shares for the three months ended September 30, 2025. None of the share options were included, as the average share price over the period was below that of the exercise prices and the effect of their inclusion would be anti-dilutive.

Adjusted EBITDA Margin

We define Adjusted EBITDA margin, a non-GAAP financial measure, as Adjusted EBITDA divided by total revenue. Adjusted EBITDA margin is an internal performance measure used in the management of our operations.

The reconciliation of the above non-GAAP measures to each of their most directly comparable GAAP financial measures is set forth in the reconciliation table accompanying this release.