Accelerant (ARX -24.48%), a specialty insurance platform operator, reported its second quarter 2025 results on August 28, 2025. The headline news was revenue and premium growth compared to the prior year, as well as a shift to profitability on both net income (GAAP) and adjusted earnings (non-GAAP). GAAP revenue reached $219.1 million, up 68.4% year-over-year. Exchange Written Premiums, a crucial measure of platform activity, rose 42% to $1.07 billion. The company delivered $0.04 in diluted earnings per share (GAAP), compared to a loss of $0.05 in the prior-year period. Adjusted EBITDA margin increased from 10% to 29%. The quarter marks Accelerant’s first as a public company.
| Metric | Q2 2025 | Q2 2024 | Y/Y Change |
|---|---|---|---|
| EPS – Diluted (GAAP) | $0.04 | ($0.05) | $0.09 |
| Adjusted EBITDA (Non-GAAP) | $63.5 million | $13.0 million | 388.5% |
| Adjusted EBITDA Margin (Non-GAAP) | 29% | 10% | 19 pp |
| Adjusted Net Income (Non-GAAP) | $28.6 million | ($0.7 million) | $29.3 million |
| Revenue (GAAP) | $219.1 million | $130.1 million | 68.4% |
| Exchange Written Premium | $1.07 billion | $757 million | 42% |
About Accelerant’s Business and Key Success Factors
Accelerant (ARX -24.48%) operates a data-driven insurance risk exchange platform that connects specialty insurance underwriters, called members, with risk capital partners. The platform streamlines the process of sourcing, underwriting, and distributing risk, enabling small and mid-sized commercial clients to access insurance coverage efficiently. Accelerant provides technology, analytics, and operational support to its network of agencies, with its business model centered on fee-based revenues and sharing insurance risk with its partners.
Recently, the company has concentrated on expanding its technology capabilities, growing the number of network members, and increasing the platform’s overall scale. Maintaining strong partnerships with both underwriters and risk capital providers is critical for success. Effective risk management, supported by data analytics, is a key factor in its long-term strategy.
Key Developments and Performance in the Quarter
Accelerant posted GAAP revenue growth of 68.4% year-over-year, with Exchange Written Premium—the total insurance premiums written through its platform—jumping 42%. Net Revenue Retention, which measures expansion and retention of business from existing partners, rose to 151%, up from 135% a year ago.
The number of platform members increased to 248 from 186 a year ago. MGA Operations Members, who are specialty insurance agencies with direct platform access, grew modestly, reaching 47 from 44 a year ago. Exchange Services, MGA Operations, and Underwriting segments all reported higher revenues and Adjusted EBITDA compared to the previous year. In particular, MGA Operations, focusing on agency operations, saw a significant improvement in profitability, moving from $6.2 million to $24.3 million in Adjusted EBITDA.
Profitability improved sharply. Adjusted EBITDA, a measure used to track operating earnings before interest, taxes, depreciation, and amortization, rose to $63.5 million compared to $13.0 million a year ago, and the adjusted EBITDA margin increased to 29% from 10% (non-GAAP). Net income (GAAP) swung from a loss of $9.2 million to a profit of $13.1 million. These improvements reflect robust top-line growth, though general and administrative expenses (GAAP) also grew by 49% year-over-year to $86.1 million as the company scaled.
One-time items and material trends in the quarter included a notable increase in net foreign exchange losses (GAAP), rising to $14.2 million from a $0.8 million gain a year ago, highlighting exposure to currency risk as international operations expand. The company continued to invest in its technology platform, with $17.3 million in capitalized technology spending for the first six months of 2025. Accelerant did not pay a dividend during the period.
Looking Ahead
Management did not provide explicit forward earnings or revenue guidance in the current release. Instead, leadership highlighted its strategic aims to further expand platform reach and continue investing in technology and operations.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
