Accelerant Holdings (ARX) Stock

Accelerant Holdings (ARX) is a Financials stock trading at $19.71 (as of 2026-09-02), with a market capitalization of $4.35B. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Accelerant Holdings, together with its subsidiaries, operate a data-driven risk exchange that connects selected specialty insurance underwriters with risk capital partners. The Exchange Services segment consists of risk exchange, its operating platform that incorporates various technology, data ingestion, and agency operations that serve the needs of its members and risk capital partners. Its Risk capital partners write premiums directly through the Risk Exchange pay us a fixed-percentage, volume-based fee for sourcing, managing, and monitoring the business they write. The MGA Operations segment includes the fees earned by members, predominantly for originating and underwriting a portfolio of insurance policies, reduced by the expenses associated with providing services. The Underwriting segment is involved in underwriting insurance policies and assumption of reinsurance policies issued or accepted by consolidated insurance companies. Its Underwriting segment is a strategic asset that enables access to portfolio for current and prospective risk capital partners. The activities of insurance companies include property and casualty insurance, policy issuance, and reinsurance arrangements. The company focuses on small-to-medium sized commercial clients primarily in the United States, Europe, Canada, and the United Kingdom. The company was founded in 2018 and is based in Grand Cayman, the Cayman Islands.

Understand Accelerant Holdings: how it makes money

Accelerant runs a data-driven platform that routes specialty insurance premium from underwriters to risk capital partners, earning a fixed-percentage fee on every dollar of premium written through the exchange. Most of the near-term growth comes from third-party partners writing premium directly on the platform, with Accelerant retaining a smaller share for its own MGA underwriting.

Revenue scales linearly with premium volume at a fixed percentage fee (near-zero marginal cost), while the MGA/underwriting arm carries actual insurance risk and capital, creating a two-speed profit model where the fee side compounds faster than the balance-sheet side.

Business quality (Solid): Growth is strong (63% YoY revenue) and the fee-based core is highly margin-accretive, but the company still burns operating cash and carries GAAP losses. Quality is improving as third-party premium share grows, yet the balance-sheet portion keeps the whole-company ROE deeply negative.

Bull case

  • Four billion dollar pipeline: Management cites a $4 billion annualized member pipeline, implying substantial headroom for premium growth beyond the current quarter. This pipeline is the clearest leading indicator of where fee revenue is heading next.
  • Seventy percent fee-based margins: Exchange Services produced a 67% adjusted EBITDA margin in Q1, with management guiding to roughly 70% going forward. Each incremental dollar of premium written through the platform converts to profit at near-software economics.
  • AI lifts execution speed: Management reports AI improved engineering productivity by more than 24%, pointing to faster feature delivery and a lower cost-to-serve as the platform adds members and partners.

Bear case

  • Negative cash flow persists: Operating cash flow was negative $21 million in Q1, driven by reinsurance-payment timing and growth-related spending. Until the fee engine outstrips working-capital needs, the company remains dependent on external or internal capital.
  • Hadron concentration still material: Hadron represents a material share of the premium book, with management only planning to reduce its share below one-third by Q4. A disruption or withdrawal at that single partner would hit volume and fee revenue sharply.
  • GAAP loss vs adjusted gain: Q1 posted a $4 million GAAP net loss alongside $38 million adjusted net income. The gap reflects amortization and non-cash charges, but it makes the income statement unconvincing to fundamental screens and value-oriented investors.
Valuation — source: SEC EDGAR (first-party)
Price$19.71
Market Cap$4.35B
Price / Book5.84
Price / Sales3.79
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$912.90M
Net Margin-147.4%
Revenue Growth (YoY)62.9%
EPS Growth (YoY)620.0%
Valuation vs Sector & Industry
Sector P/E (Financials)14.9
Industry P/E (Insurance)12.1
Company
SectorFinancials
IndustryInsurance
CEOJeffrey Lee Radke
Employees451
CountryKY
IPO Date2025-07-24

Accelerant Holdings earnings call transcripts

  • ARX Q1 FY26 earnings call transcript (reported 2026-05-13) · analysis
  • ARX Q2 FY25 earnings call transcript (reported 2025-08-28) · analysis

All ARX earnings calls

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ARX earnings history · ARX institutional & insider holders · ARX KPIs & operating metrics · ARX financials · ARX investor presentations & press releases · ARX SEC filings · ARX peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-09-02.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.