Accelerant Holdings — Third Quarter 2026 Earnings Summary

Financial Performance:

• Exchange Written Premium reached $1.33 billion for the quarter, representing a 27% year-over-year increase compared to $1.04 billion in Q3 2025.
• Total revenues were $278.6 million for the quarter, up from $267.4 million in Q3 2025; operating revenues were $280.2 million, up from $227.9 million in Q3 2025.
• Net loss was $9.2 million for the quarter, compared to a net loss of $1.37 billion in Q3 2025; net loss per diluted share was $0.06.
• Adjusted net income was $38.2 million for the quarter, down from $48.6 million in Q3 2025; adjusted net income per diluted share was $0.18.
• Adjusted EBITDA was $71.3 million for the quarter, up from $65.5 million in Q3 2025, with an adjusted EBITDA margin of 25.4% (down from 29% in Q3 2025).
• For the nine months ended September 30, 2026, total revenues were $908.8 million (up from $664.5 million in 2025), operating revenues were $857.3 million (up from $621.1 million), and adjusted EBITDA was $230.5 million (up from $167.9 million).
• Gross loss ratio was 56.8% for the quarter, compared to 50.1% in Q3 2025.
• Cash, cash equivalents, and restricted cash totaled $2.10 billion as of September 30, 2026, up from $1.80 billion as of December 31, 2025.
• Debt was $119.5 million as of September 30, 2026, compared to $121.3 million as of December 31, 2025.
• Net cash provided by operating activities was $231.0 million for the nine months ended September 30, 2026, compared to $383.2 million in the same period in 2025.

Guidance and Future Outlook:

• Accelerant will not provide guidance for the fourth quarter of 2026 or the full year of 2026 due to the pending transaction with Thoma Bravo.
• The company expects the merger with Thoma Bravo to close in the first half of 2027, subject to customary closing conditions.
• Management expects to execute strategic priorities to position the business for growth in 2027 and beyond.

Business Segments and Product Lines:

• Exchange Services operating revenues were $112.6 million for the quarter, up from $85.0 million in Q3 2025.
• MGA Operations operating revenues were $86.5 million for the quarter, up from $50.1 million in Q3 2025.
• Underwriting segment operating revenues were $113.4 million for the quarter, down from $117.2 million in Q3 2025.
• Third-party direct written premium accounted for 49% of Exchange Written Premium volume in the quarter, up from 32% in Q3 2025.
• Accelerant added 26 Managing General Agents (MGAs) during the quarter, bringing the total number of members to 340.
• Net revenue retention was 116% for the quarter, down from 135% in Q3 2025.
• Exchange Written Premium for the trailing twelve months ended September 30, 2026, was $4.88 billion.

Market and Competitive Landscape:

• The Accelerant Risk Exchange operates across 24 different countries and supports approximately 700 specialty insurance products.
• The company leverages advanced data analytics and AI to optimize risk management and align incentives across the insurance value chain.

Risks and Challenges:

• The press release notes that actual results may differ materially from forward-looking statements due to known and unknown risks and uncertainties, including market conditions and regulatory factors, as detailed in the company's Form 10-K and subsequent reports.
• The pending transaction with Thoma Bravo introduces uncertainty regarding future guidance and the timing of the close.

Management Commentary and Tone:

• Jeff Radke, Chairman and CEO, stated the quarter showed the strength of the Accelerant Risk Exchange, highlighting the addition of high-quality underwriting talent and the platform's ability to provide long-term capacity and insights.
• Linda S. Huber, CFO, emphasized disciplined growth and noted that fee-based businesses (consolidated results less Underwriting) delivered $84.5 million of adjusted EBITDA, representing 75% year-over-year growth.
• Management expressed excitement about the pending transaction with Thoma Bravo and confidence in the business's positioning for future growth.

Other Key Points:

• Accelerant entered into a definitive merger agreement with Thoma Bravo, a technology and software expert.
• Accelerant will not host an earnings conference call in connection with the third quarter 2026 results due to the pending transaction.
• Non-GAAP financial measures were updated beginning in Q1 2026 to exclude the impact of net realized and unrealized investment gains or losses; prior period figures were recast to reflect this change.
• Share-based compensation expenses included in general and administrative expenses were $32.3 million for the quarter and $89.6 million for the nine months ended September 30, 2026.
• Profits interest distribution expenses related to the IPO, which totaled $1.38 billion in Q3 2025, were not present in the 2026 periods.