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Octave Specialty Group Reports Fourth Quarter 2025 Results
•Total P&C premium production increased 15% for the quarter to $303 million
•Insurance Distribution Segment
◦Commission Income grew to $37 million, an increase of 13%
◦Organic revenue growth equaled 8.1%
◦Net loss to Shareholders of $(1) million for the quarter, an improvement of 76%
◦Adjusted EBITDA to Shareholders of $7 million for the quarter, up 33%
•Specialty P&C Insurance ("Everspan")
◦Gross and net premiums written of $80 million and $23 million were up 34% and 978%, respectively
◦Combined ratio fell below 100%
◦Net income to Shareholders was $1 million, down 37%
◦Adjusted EBITDA to Shareholders of $1.5 million, down 46%

NEW YORK, NY, February 23, 2026 (BUSINESS WIRE) -- Octave Specialty Group, Inc. (NYSE: OSG) ("Octave" or "OSG"), a global specialty insurance firm, today reported its results for the Fourth Quarter 2025.
Claude LeBlanc, President and Chief Executive Officer, stated, "The fourth quarter of 2025 marked the end of a transformational year and the beginning of what we believe is a new era for our company. Following the sale of our legacy financial guarantee business in the third quarter, the acquisition of ArmadaCare in the fourth quarter, and our rebranding as Octave Specialty Group, we emerged as a pure-play specialty P&C company. In the fourth quarter, our insurance distribution business delivered organic growth of over 8%, finishing the year at just over 14%, as we continued to execute on our strategy to build a high-growth, specialty insurance distribution platform that delivers significant long-term value to our shareholders. ArmadaCare, a leading specialty A&H and workplace benefit MGA platform that we recently acquired, materially advances our strategic position by further diversifying our specialty business model in uncorrelated, high-growth segments of the market. During the fourth quarter, we also launched 1889 Specialty, a management liability and professional lines MGA focused on the SME market and backed by A+ capacity. We expect these investments, our expanded and further diversified portfolio of MGA/Us, and our recent corporate cost reduction actions to substantially advance our long-term growth strategy."
LeBlanc continued, “This is truly an exciting time for us. We believe our partnership structure and unique MGA incubator model, which includes aligned capacity and shared technology and business services, continue to distinguish us in the marketplace. As we enter 2026, we expect strong organic growth, bolstered by continued momentum across our core business, including the stable of strong start-ups launched in 2024 and 2025, which are positioned to deliver strong top- and bottom-line growth as these businesses continue to scale."

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Octave's Fourth Quarter 2025 Summary Results
Three Months Ended December 31,Year Ended December 31,
(in thousands, except per share data)1
20252024% Change 20252024% Change
Total revenues from continuing operations 66,903 65,222 3%251,222 235,815 7%
Total expenses from continuing operations 97,757 86,322 13%352,236 295,660 19%
Pretax income (loss) from continuing operations(30,854)(21,100)46%(101,014)(59,845)69%
Provision (benefit) for income taxes from continuing operations(1,181)(157)NM(5,211)(924)NM
Net income (loss) from continuing operations(29,673)(20,943)42%(95,803)(58,921)63%
Net income (loss) from continuing operations attributable to Octave shareholders, net of tax(29,982)(22,163)35%(98,404)(59,282)66%
Net income (loss) from discontinued operations— (526,102)NM(163,288)(497,167)(67)%
Net income (loss) attributable to Octave shareholders(29,982)(548,264)NM(261,692)(556,448)(53)%
Net income (loss) from continuing operations attributable to stockholders per diluted share 3
$(0.84)$(0.56)50%$(2.47)$(1.37)80%
Net income (loss) attributable to stockholders per diluted share 3
$(0.84)$(11.49)(93)%$(5.93)$(11.96)(50)%
Non-GAAP
EBITDA to shareholders 2
(19,509)(10,387)88%(54,929)(36,966)49%
Adjusted EBITDA to shareholders2
1,351 520 NM(7,471)2,195 NM
Adjusted net income (loss) attributable to shareholders(1,097)(5,676)(81)%(27,731)(8,606)NM
Per Share
Adjusted net income (loss) to shareholders per diluted share 2
$(0.02)$(0.12)(83)%$(0.58)$(0.18)NM
Adjusted EBITDA to shareholders per diluted share2
$0.03 $0.01 NM$(0.16)$0.05 NM
Weighted-average diluted shares outstanding
45,146 48,129 (6)%47,181 46,970 0.4 %
(1)Some financial data in this press release may not add up due to rounding
(2)See Non-GAAP Financial Data section of this press release for further information
(3)Per diluted share includes the impact of adjusting redeemable noncontrolling interests to current redemption value


Fourth Quarter 2025 Summary*
Total revenue from continuing operations for the fourth quarter of 2025 was $67 million, an increase of 3% compared to the $65 million in the same prior-year period. The growth in total revenue was driven by the Insurance Distribution (ID) Segment and Corporate operations, which more than offset a decline in revenue in the Specialty Property and Casualty Segment. Organic growth in our Insurance Distribution Segment was 8.1% during the fourth quarter 2025.
Net loss from continuing operations to Octave shareholders for the fourth quarter of 2025 increased by $(8) million to $(30) million compared to $(22) million in the same prior-year period. The higher net loss was primarily attributed to costs associated with the acquisition of ArmadaCare, expenses associated with the exit from the financial guarantee business, and related expense reduction initiatives, and the impairment of a minority investment from a legacy strategy. Significantly lower interest expense and the impact of the ArmadaCare acquisition helped to partially offset these transactional and transitional expenses.
Adjusted EBITDA from continuing operations to Octave shareholders for the fourth quarter of 2025 was $1.4 million compared to $0.5 million in the same prior-year period, driven by a $1.7 million increase in ID Adjusted EBITDA partially offset by a $1.2 million decline in Adjusted EBITDA at Everspan, associated primarily with Everspan's decline in revenue. Adjusted EBITDA also benefited from a $0.4 million improvement at Corporate related to the initial benefits of our corporate expense reduction initiatives.



* For definitions of each non-GAAP measure referred to above, as well as reconciliation of such non-GAAP measures to their most directly comparable GAAP measures, see "Non-GAAP Financial Measures" below.
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Earnings Call and Webcast
On February 24, 2026, at 8:30am ET, Claude LeBlanc, President and Chief Executive Officer, and David Trick, Executive Vice President and Chief Financial Officer, will discuss Octave's fourth quarter 2025 results during a conference call. A live audio webcast of the call will be available through the Investor Relations section of Octave’s website, https://octavegroup.com/investor-relations/events-and-presentations/. Participants may also listen via telephone by dialing (877) 407-9716 or (201) 493-6779 .
The webcast will be archived on Octave's website. A replay of the call will be available through March 10, 2026, and can be accessed by dialing (Domestic) (844) 512-2921 or (International) (412) 317-6671; and using ID#13757987 .
Additional information is included in an operating supplement and presentations on Octave's website at www.octavegroup.com.
Results of Operations by Segment
Insurance Distribution Segment
Three Months Ended December 31,Year Ended December 31,
($ in thousands)20252024% Change20252024% Change
Premiums placed$223,286 $204,909 9 %$951,781 $493,372 93 %
Total revenues$46,466 $44,070 5 %$163,726 $99,236 65 %
Pretax income (loss)$(2,295)$(4,958)(54)%$(20,456)$(7,809)162 %
Pretax income (loss) to shareholders$(2,604)$(6,178)(58)%$(23,057)$(8,172)182 %
Net income (loss)
$(1,114)
@
$(4,786)(77)%$(15,353)$(6,881)123 %
Net income (loss) to shareholders
$(1,423)$(6,006)(76)%$(17,954)$(7,244)148 %
EBITDA$10,280 $9,827 5 %$36,918 $19,653 88 %
EBITDA to shareholders1
$6,905 $5,286 31 %$22,411 $13,205 70 %
Adjusted EBITDA$10,481 $9,827 7 %$37,041 $19,894 86 %
Adjusted EBITDA to shareholders1
$7,030 $5,286 33 %$22,542 $13,446 68 %
Pretax income margin to shareholders2
(5.6)%(14.0)%840 bps(14.1)%(8.2)%(590)bps
Adjusted EBITDA margin to shareholders1,3,5
15.1 %12.0 %310 bps13.8 %13.5 %30 bps
Organic Growth4
8.1 %(3.2)%14.2 %5.4 %
(1) After the impact of noncontrolling interests
(2)Represents Pretax income divided by total revenues
(3) See Non-GAAP Financial Data section of this press release for further information
(4) Organic revenue growth includes a $1.2m reduction to 4Q24 revenue to adjust for a revenue recognition accounting policy adjustment made in 4Q24 to recognize revenues that otherwise should have been recorded in 3Q24.
(5) Represents Adjusted EBITDA to shareholders divided by total revenues

Specialty Property & Casualty Insurance Segment
Three Months Ended December 31,Year Ended December 31,
($ in thousands)20252024% Change20252024% Change
Gross premium written$80,102 $59,987 34 %$360,449 $382,771 (6)%
Net premiums written$22,910 $(2,608)978 %$73,898 $88,682 (17)%
Net premiums earned$18,324 $18,931 (3)%$67,232 $99,005 (32)%
Total revenue$23,068 $24,818 (7)%$88,403 $126,320 (30)%
Net income (loss)
$1,158 $1,836 (37)%$2,956 $10,469 (72)%
Adjusted EBITDA to shareholders(1)
$1,460 $2,698 (46)%$3,777 $5,136 (26)%
Loss Ratio 61.8 %51.9 %990  bps70.2 %73.4 %(320) bps
Expense Ratio37.6 %44.6 %(700) bps35.0 %28.2 %680  bps
Combined Ratio99.4 %96.5 %290  bps105.2 %101.6 %360  bps
(1) After the impact of noncontrolling interests. See Non-GAAP Financial Data section of this press release for further information
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OSG Corporate (holding company only)
OSG on a standalone basis, excluding its ownership interests in its Specialty P&C Insurance and Insurance Distribution subsidiaries, had net assets of $76 million as of December 31, 2025. Assets included cash and liquid securities of $49 million and other investments of $25 million.
Consolidated Octave Financial Group, Inc. Stockholders' Equity and NCI Impact to EPS
Stockholders’ equity attributable to common shareholders at December 31, 2025, was $715,790, or $15.90 per share compared to $783,323 or $16.77 per share as of September 30, 2025. The decline was primarily a result of the net loss from continuing operations attributable to common shareholders of $(30) million, the cost of shares repurchased of $(27) million and change in redeemable noncontrolling interest of $(8) million.
Share Repurchase
Subsequent to September 30, 2025, OSG repurchased in the open market over 3.1 million shares of its outstanding common stock through a 10B5-1 program. These repurchases represented 6.7% of shares outstanding and 6.5% of basic weighted shares outstanding as last reported.
Calculation of Earnings Per Share
Diluted net income per share is computed by dividing net income attributable to shareholders, including adjustments to the redemption value of redeemable noncontrolling interests, by the basic weighted-average shares outstanding plus all potentially dilutive common shares outstanding during the period. The following table provides a reconciliation of net income attributable to shareholders to the numerator in the diluted earnings per share calculation, together with the resulting earnings per share amounts:
Three Months Ended December 31,Year Ended December 31,
(in thousands, except per share data)
2025202420252024
Net income (loss) from continuing operations attributable to shareholders$(29,982)$(22,163)$(98,404)$(59,282)
Adjustment for Redeemable NCI(8,017)(4,917)$(18,175)$(5,222)
Numerator of diluted EPS$(37,999)$(27,080)$(116,579)$(64,504)
Per Share — Diluted$(0.84)$(0.56)$(2.47)$(1.37)
Net income (loss) attributable to Octave shareholders$(29,982)$(548,264)$(261,692)$(556,448)
Adjustment for Redeemable NCI(8,017)(4,917)(18,175)(5,222)
Numerator of diluted EPS$(37,999)$(553,181)$(279,867)$(561,670)
Per Share — Diluted$(0.84)$(11.49)$(5.93)$(11.96)
WASO-Diluted45,146 48,129 47,181 46,970 
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OCTAVE SPECIALTY GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Loss) (Unaudited)
Three Months Ended December 31,Year Ended December 31,
($ in thousands, except share data)2025202420252024
Revenues:
Commissions$40,229 $38,009 $143,381 $92,023 
Servicing and other fees6,128 4,087 20,419 6,353 
Net premiums earned18,324 18,931 67,232 99,005 
Program fees3,583 3,989 14,322 13,506 
Investment income2,557 3,557 10,647 14,448 
Other(3,918)(3,351)(4,780)10,480 
Total revenues66,903 65,222 251,222 235,815 
Expenses:
Commissions8,102 13,667 37,037 40,876 
Losses and loss adjustment expenses11,333 9,826 47,193 72,626 
Policy acquisition costs4,759 7,850 15,790 23,666 
General and administrative58,843 39,730 191,624 129,166 
Intangible amortization and depreciation13,289 9,615 41,952 19,947 
Interest1,431 5,634 18,640 9,379 
Total expenses97,757 86,322 352,236 295,660 
Pretax income (loss) from continuing operations(30,854)(21,100)(101,014)(59,845)
Provision (benefit) for income taxes from continuing operations(1,181)(157)(5,211)(924)
Net income (loss) from continuing operations(29,673)(20,943)(95,803)(58,921)
Net income (loss) from discontinued operations— (526,102)(163,288)(497,167)
Net income (loss)(29,673)(547,045)(259,091)(556,087)
Net (gain) loss attributable to noncontrolling interest(309)(1,220)(2,601)(361)
Net income (loss) attributable to shareholders$(29,982)$(548,264)$(261,692)$(556,448)
Net income (loss) from continuing operations attributable to stockholders$(29,982)$(22,163)$(98,404)$(59,282)
Net income (loss) from discontinued operations attributable to stockholders— (526,102)(163,288)(497,166)
Net income (loss) attributable to shareholders$(29,982)$(548,264)$(261,692)$(556,448)
Net income (loss) from continuing operations per share attributable to stockholders
Basic$(0.84)$(0.56)$(2.47)$(1.37)
Diluted$(0.84)$(0.56)$(2.47)$(1.37)
Net income (loss) per share attributable to stockholders
Basic$(0.84)$(11.49)$(5.93)$(11.96)
Diluted$(0.84)$(11.49)$(5.93)$(11.96)
Weighted average number of common shares outstanding:
Basic45,146,058 48,128,820 47,181,227 46,969,708 
Diluted45,146,058 48,128,820 47,181,227 46,969,708 
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OCTAVE SPECIALTY GROUP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
($ in thousands, except share data)December 31,
2025
September 30, 2025 (1)
Assets:
Investments:
Fixed maturity securities, at fair value (amortized cost: $123,415 and $132,617)$122,295 $131,101 
Short-term investments, at fair value (amortized cost: $146,433 and $295,815)146,442 295,825 
Other investments (includes $7,454 and $7,684 at fair value)24,971 28,302 
Total investments (net of allowance for credit losses of $0 and $0)293,708 455,228 
Cash and cash equivalents (including $40,754 and $17,669 of restricted cash)68,440 51,767 
Premium receivables (net of allowance for credit losses of $500 and $142)75,085 74,760 
Commission and fees receivable86,549 75,480 
Reinsurance recoverable on paid and unpaid losses (net of allowance for credit losses of $450 and $338)436,092 440,462 
Deferred ceded premium146,365 160,906 
Policy acquisition costs9,732 9,284 
Intangible assets, less accumulated amortization474,998 339,197 
Goodwill540,345 445,382 
Other assets92,003 95,424 
Total assets$2,223,317 $2,147,890 
Liabilities and Stockholders’ Equity:
Liabilities:
Unearned premiums$187,178 $197,133 
Loss and loss adjustment expense reserves459,990 437,539 
Ceded premiums payable80,561 87,635 
Deferred program fees and reinsurance commissions6,978 7,754 
Deferred taxes65,217 68,865 
Long-term debt117,558 — 
Accrued interest payable1,343 — 
Commission payable115,555 109,317 
Other liabilities102,771 92,226 
Total liabilities1,137,151 1,000,469 
Redeemable noncontrolling interest252,981 248,308 
Stockholders’ equity:
Preferred stock, par value $0.01 per share; 20,000,000 shares authorized shares; issued and outstanding shares—none— — 
Common stock, par value $0.01 per share; 130,000,000 shares authorized; issued shares: 48,876,882 and 48,875,167489 489 
Additional paid-in capital369,860 367,077 
Accumulated other comprehensive income (loss)8,483 7,426 
Retained earnings370,431 436,026 
Treasury stock, shares at cost: 3,871,598 and 2,368,194(33,473)(27,695)
Total Octave Specialty Group, Inc. stockholders’ equity 715,790 783,323 
Nonredeemable noncontrolling interest117,395 115,790 
Total stockholders’ equity 833,185 899,113 
Total liabilities, redeemable noncontrolling interest and stockholders’ equity$2,223,317 $2,147,890 
(1) The September 30, 2025 Consolidated Balance Sheet reflects a correction to redeemable noncontrolling interest and total stockholders' equity $60.1 million
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Non-GAAP Financial Data
In addition to reporting the Company’s quarterly financial results in accordance with GAAP, the Company is reporting non-GAAP financial measures: EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin, Organic Revenue Growth Rate (Insurance Distribution segment only), Adjusted Net Income and Adjusted Net Income Margin. These amounts are derived from our consolidated financial information, but are not presented in our consolidated financial results.
We present non-GAAP supplemental financial information because we believe such information is of interest to the investment community, and that it provides greater transparency and enhanced visibility into the underlying drivers and performance of our businesses on a basis that may not be otherwise apparent on a GAAP basis. We view these non-GAAP financial measures as important indicators when assessing and evaluating our performance on a segmented and consolidated basis and they are presented to improve the comparability of our results between periods by eliminating the impact of the items that may not be representative of our core operating performance. These non-GAAP financial measures are not substitutes for the Company’s GAAP reporting, should not be viewed in isolation and may differ from similar reporting provided by other companies, which may define non-GAAP measures differently
The following paragraphs define each non-GAAP financial measure. A tabular reconciliation of the non-GAAP financial measure and the most comparable GAAP financial measure is also presented below.
Non-GAAP Financial Measures
Organic Revenue Growth & Rate (Insurance Distribution Only.) — Organic revenue is based on commissions and fees for the relevant period by excluding (i) the first twelve months of commissions and fees generated from acquisitions, (ii) commissions and fees from divestitures and (iii) and other items such as contingent commissions and the impact of changes in foreign exchange rates.
Organic Revenue Growth is the change in organic revenue period-to-period, with prior period results adjusted to (i) include commissions and fees that were excluded from organic revenue in the prior period and reached the twelve-month owned mark in the current period, and (ii) exclude commissions and fees related to divestitures from organic revenue.
Total Specialty P&C Insurance Production Specialty P&C Insurance production, which includes gross premiums written by Octave's Specialty P&C Insurance segment and premiums placed by the Insurance Distribution segment. Specialty P&C Insurance revenues are dependent on gross premiums written, as specialty program insurance companies earn premiums based on the portion of gross premiums written retained (i.e. net premiums written) and fees on gross premiums written that are ceded to reinsurers. Insurance Distribution revenues are dependent on premium volume, as Managing General Agents/Underwriters and brokers receive commissions based on the amount of premiums placed (i.e. gross premiums written on behalf of insurance carriers) with insurance carriers.
EBITDA — EBITDA is net income (loss) from continuing operations before interest expense, income taxes, depreciation and amortization of intangible assets.
EBITDA Margin — EBITDA divided by total revenues.
Adjusted EBITDA and Adjusted EBITDA Margin — We define Adjusted EBITDA as net income (loss) from continuing operations before interest expense, income taxes, depreciation, amortization of intangible assets, change in fair value of contingent consideration and certain items of income and expense, including share-based compensation expense, acquisition and integration-related expenses, severance, and other exceptional or non-recurring items, including those related to raising capital. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of income and expenses that may obfuscate business performance, and that the presentation of this measure enhances an investor's understanding of our financial performance.
Adjusted Net Income and Adjusted Net Income Margin — We define Adjusted Net Income as net income (loss) from continuing operations attributable to Octave adjusted for amortization of intangible assets, change in fair value of contingent consideration and certain items of income and expense, including share-based compensation expense, acquisition and integration -related expenses, severance and non-recurring income and loss items that, in the opinion of management, significantly affect the period-over-period assessment of operating results, and the related tax effect of those adjustments. Per share amounts exclude any impact of revaluing non-controlling interests
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as otherwise reported under GAAP earnings per share. We believe that Adjusted Net Income is an appropriate measure of operating performance because it eliminates the impact of income and expenses that may obfuscate business performance.
Results of Operations by Segment (Continued)
Three Months Ended December 31, 2025Specialty Property & Casualty InsuranceInsurance DistributionCorporate & OtherConsolidated
($ in thousands)
Gross premiums written$80,102 $80,102 
Net premiums written22,910 22,910 
Total revenues from Continuing Operations23,068 46,466 (2,631)66,903 
Total expenses from Continuing Operations21,814 48,761 27,181 97,757 
Pretax income (loss)1,254 (2,295)(29,812)(30,854)
Provision (benefit) for income taxes96 (1,181)(96)(1,181)
Net income (loss) from Continuing Operations$1,158 $(1,114)$(29,716)$(29,673)
Adjustments to EBITDA
Add: Interest expense$1,431 $1,431 
Add: Income tax expense96 (1,181)(96)(1,181)
Add: Depreciation— 347 2,145 2,492 
Add: Intangible amortization10,797 10,797 
EBITDA from Continuing Operations$1,254 $10,280 $(27,667)$(16,134)
EBITDA from Continuing Operations attributable to
Octave shareholders		$1,254 $6,905 $(27,667)$(19,509)
Adjustments to Adjusted EBITDA
Add: Acquisition and integration related expenses$— $— $7,796 $7,796 
Add: Equity-based compensation expense206 201 2,072 2,479 
Add: Severance and restructuring expense— — 7,561 7,561 
Add: Other non-operating (income) losses— — 3,100 3,100 
Adjusted EBITDA from Continuing Operations1,460 10,481 (7,138)4,802 
Adjusted EBITDA from Continuing Operations attributable to
Octave shareholders		$1,460 $7,030 $(7,138)$1,351 
Net income (loss) (Continuing Operations)$1,158 $(1,114)$(29,716)$(29,673)
Adjustments:
Add: Acquisition and integration related expenses— — 7,796 7,796 
Add: Intangible amortization— 10,797 — 10,797 
Add: Equity-based compensation expense206 201 2,072 2,479 
Add: Severance and restructuring expense— — 9,453 9,453 
Add: Other non-operating (income) losses— — 3,100 3,100 
Adjusted net income (loss) before tax and NCI1,364 9,884 (7,295)3,952 
Income tax effects(43)(2,050)43 (2,050)
Adjusted net income (loss) before NCI1,321 7,834 (7,252)1,902 
Net (income) loss attributable to noncontrolling interest— (2,999)— (2,999)
Adjusted net income (loss) attributable to shareholders$1,321 $4,835 $(7,252)$(1,097)
Net income (loss) margin5.0 %(2.4)%NM(44.4)%
Adjusted EBITDA Margin6.3 %22.6 %NM7.2 %
Adjusted EBITDA Margin to Octave shareholders6.3 %15.1 %NM2.0 %
Adjusted Net income (loss) after NCI margin5.7 %10.4 %NM(1.6)%
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Three Months Ended December 31, 2024Specialty Property & Casualty InsuranceInsurance DistributionCorporate & OtherConsolidated
($ in thousands)
Gross premiums written$59,987 $59,987 
Net premiums written(2,608)(2,608)
Total revenues from Continuing Operations24,818 44,070 (3,666)65,222 
Total expenses from Continuing Operations22,252 49,028 15,042 86,322 
Pretax income (loss)2,566 (4,958)(18,708)(21,100)
Provision (benefit) for income taxes730 (172)(715)(157)
Net income (loss) from Continuing Operations
$1,836 $(4,786)$(17,993)$(20,943)
Adjustments to EBITDA
Add: Interest expense$5,639 $5,639 
Add: Income tax expense730 (172)(715)(157)
Add: Depreciation245 469 714 
Add: Intangible amortization8,901 8,901 
EBITDA from Continuing Operations
$2,566 $9,827 $(18,239)$(5,846)
EBITDA from Continuing Operations attributable to
Octave shareholders		$2,566 $5,286 $(18,239)$(10,387)
Adjustments to Adjusted EBITDA
Add: Acquisition and integration related expenses— $— $1,561 1,561 
Add: Equity-based compensation expense132 — 2,689 2,821 
Add: Severance and restructuring expense— — 362 362 
Add: Other non-operating (income) losses— — 6,163 6,163 
Adjusted EBITDA from Continuing Operations
2,698 9,827 (7,464)5,061 
Adjusted EBITDA from Continuing Operations attributable to
Octave shareholders		$2,698 $5,286 $(7,464)$520 
Net income (loss) (Continuing Operations)$1,836 $(4,786)$(17,993)$(20,943)
Adjustments:
Add: Acquisition and integration related expenses— — 1,561 1,561 
Add: Intangible amortization— 8,901 — 8,901 
Add: Equity-based compensation expense132 — 2,689 2,821 
Add: Severance and restructuring expense— — 362 362 
Add: Other non-operating (income) losses— — 6,163 6,163 
Adjusted net income (loss) before tax and NCI1,968 4,115 (7,218)(1,135)
Income tax effects— — — — 
Adjusted net income (loss) before NCI1,968 4,115 (7,218)(1,135)
Net (income) loss attributable to noncontrolling interest— (4,541)— (4,541)
Adjusted net income (loss) attributable to shareholders$1,968 $(426)$(7,218)$(5,676)
Net income (loss) margin7.4 %(10.9)%NM(32.1)%
Adjusted EBITDA Margin10.9 %22.3 %NM7.8 %
Adjusted EBITDA Margin to Octave shareholders10.9 %12.0 %NM0.8 %
Adjusted Net income (loss) after NCI margin7.9 %(1.0)%NM(8.7)%
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Results of Operations by Segment (Continued)
Year Ended December 31, 2025Specialty Property & Casualty InsuranceInsurance DistributionCorporate & OtherConsolidated
($ in thousands)
Gross premiums written$360,449 $360,449 
Net premiums written73,898 73,898 
Total revenues from Continuing Operations88,403 163,726 (907)251,222 
Total expenses from Continuing Operations85,073 184,182 82,981 352,236 
Pretax income (loss)3,330 (20,456)(83,888)(101,014)
Provision (benefit) for income taxes374 (5,103)(482)(5,211)
Net income (loss) from Continuing Operations$2,956 $(15,353)$(83,406)$(95,803)
Adjustments to EBITDA
Add: Interest expense$— $18,640 $— $18,640 
Add: Income tax expense374 (5,103)(482)(5,211)
Add: Depreciation— 690 3,218 3,908 
Add: Intangible amortization— 38,044 — 38,044 
EBITDA from Continuing Operations$3,330 $36,918 $(80,670)$(40,422)
EBITDA from Continuing Operations attributable to
Octave shareholders		$3,330 $22,411 $(80,670)$(54,929)
Adjustments to Adjusted EBITDA
Add: Acquisition and integration related expenses$— $375 $9,106 $9,481 
Add: Equity-based compensation expense447 368 11,494 12,309 
Add: Severance and restructuring expense— 60 21,173 21,233 
Add: Other non-operating (income) losses— (591)5,108 4,517 
Adjusted EBITDA from Continuing Operations3,777 37,041 (33,789)7,028 
Adjusted EBITDA from Continuing Operations attributable to
Octave shareholders		$3,777 $22,542 $(33,789)$(7,471)
Net income (loss) (Continuing Operations)$2,955 $(15,353)$(83,404)$(95,800)
Adjustments:
Add: Acquisition and integration related expenses— 375 9,106 9,481 
Add: Intangible amortization— 38,044 — 38,044 
Add: Equity-based compensation expense447 368 11,494 12,309 
Add: Severance and restructuring expense— 60 23,065 23,125 
Add: Other non-operating (income) losses— (591)5,108 4,517 
Adjusted net income (loss) before tax and NCI3,403 22,903 (34,633)(8,328)
Income tax effects(58)(6,009)58 (6,009)
Adjusted net income (loss) before NCI3,345 16,894 (34,575)(14,337)
Net (income) loss attributable to noncontrolling interest— (13,394)— (13,394)
Adjusted net income (loss) attributable to shareholders$3,345 $3,500 $(34,575)$(27,731)
Net income (loss) margin3.3 %(9.4)%NM(38.1)%
Adjusted EBITDA Margin4.3 %22.6 %NM2.8 %
Adjusted EBITDA Margin to Octave shareholders4.3 %13.8 %NM(3.0)%
Adjusted Net income (loss) after NCI margin3.8 %2.1 %NM(11.0)%
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Year Ended December 31, 2024Specialty Property & Casualty InsuranceInsurance DistributionCorporate & OtherConsolidated
($ in thousands)
Gross premiums written$382,771 $382,771 
Net premiums written88,682 88,682 
Total revenues from Continuing Operations126,320 99,236 10,259 235,815 
Total expenses from Continuing Operations114,098 107,045 74,516 295,660 
Pretax income (loss)12,222 (7,809)(64,257)(59,845)
Provision (benefit) for income taxes1,753 (928)(1,748)(924)
Net income (loss) from Continuing Operations
$10,469 $(6,881)$(62,509)$(58,921)
Adjustments to EBITDA
Add: Interest expense$— $9,379 $— $9,379 
Add: Income tax expense1,753 (928)(1,748)(924)
Add: Depreciation— 481 1,864 2,345 
Add: Intangible amortization— 17,602 — 17,602 
EBITDA from Continuing Operations
$12,222 $19,653 $(62,393)$(30,518)
EBITDA from Continuing Operations attributable to
Octave shareholders		$12,222 $13,205 $(62,393)$(36,966)
Adjustments to Adjusted EBITDA
Add: Acquisition and integration related expenses$— $— $27,388 $27,388 
Add: Equity-based compensation expense414 — 8,941 9,355 
Add: Severance and restructuring expense— 248 7,352 7,600 
Add: Other non-operating (income) losses(7,500)— 2,318 (5,182)
Adjusted EBITDA from Continuing Operations
5,136 19,901 (16,394)8,643 
Adjusted EBITDA from Continuing Operations attributable to
Octave shareholders		$5,136 $13,453 $(16,394)$2,195 
Net income (loss) (Continuing Operations)$10,466 $(6,769)$(62,508)$(58,812)
Adjustments:
Add: Acquisition and integration related expenses— — 27,388 27,388 
Add: Intangible amortization— 17,602 — 17,602 
Add: Equity-based compensation expense414 — 8,941 9,355 
Add: Severance and restructuring expense— 248 7,352 7,600 
Add: Other non-operating (income) losses(7,500)— 2,318 (5,182)
Adjusted net income (loss) before tax and NCI3,383 10,969 (16,510)(2,158)
Income tax effects— — — — 
Adjusted net income (loss) before NCI3,383 10,969 (16,510)(2,158)
Net (income) loss attributable to noncontrolling interest— (6,448)— (6,448)
Adjusted net income (loss) attributable to shareholders$3,383 $4,521 $(16,510)$(8,606)
Net income (loss) margin8.3 %(6.9)%NM(25.0)%
Adjusted EBITDA Margin4.1 %20.1 %NM3.7 %
Adjusted EBITDA Margin to Octave shareholders4.1 %13.6 %NM0.9 %
Adjusted Net income (loss) after NCI margin2.7 %4.6 %NM(3.6)%
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Organic Growth
Three Months Ended December 31,Year Ended December 31,
($ in thousands)20252024% Growth20252024% Growth
Total Insurance Distribution revenue (1)
$46,594 $44,096 5.7 %$163,855 $99,236 65.1 %
Less: Acquired revenues (2)
(4,998)(1,200)(50,102)(1,200)
Less: Profit commission and contingent commission income(3,003)(5,449)(11,898)(6,400)
Total Organic Revenue & Growth Percentage38,523 35,628 8.1 %104,427 91,453 14.2 %
(1)Total Insurance Distribution revenue includes investment income
(2)Organic revenue growth includes a $1.2m reduction to 4Q24 revenue to adjust for a revenue recognition accounting policy adjustment made in 4Q24 to recognize revenues that otherwise should have been recorded in 3Q24.
Total Specialty P&C Insurance Production
Specialty P&C Insurance production includes gross premiums written by Octave's Specialty P&C Insurance segment and premiums placed by the Insurance Distribution segment.
Three Months Ended December 31,Year Ended December 31,
($ in thousands)
20252024
% Change
20252024
% Change
Specialty Property & Casualty Insurance Gross Premiums Written$80,102 $59,987 34 %$360,449 $382,771 (6)%
Insurance Distribution Premiums Placed223,286 204,909 9 %951,781 493,372 93 %
Specialty P&C Insurance Production$303,388 $264,896 15 %$1,312,230 $876,143 50 %
About Octave
Octave Specialty Group, Inc. is a global specialty insurance firm that builds, buys, and scales niche insurance distribution and underwriting businesses. With a focus on operational excellence, disciplined growth, and innovation, Octave is creating a harmonized portfolio of companies that deliver exceptional performance and long-term value for shareholders. For more information, visit www.octavegroup.com.
The Amended and Restated Certificate of Incorporation of Octave contains substantial restrictions on the ability to transfer Octave’s common stock. Subject to limited exceptions, any attempted transfer of common stock shall be prohibited and void to the extent that, as a result of such transfer (or any series of transfers of which such transfer is a part), any person or group of persons shall become a holder of 5% or more of Octave’s common stock or a holder of 5% or more of Octave’s common stock increases its ownership interest.
Contact
Karen Beyer
Managing Director, Investor Relations
(212) 208-3222
ir@octavegroup.com
Forward-Looking Statements
This press release, and any related oral statements, contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “estimate,” “project,” “plan,” “believe,” “anticipate,” “intend,” “planned,” “potential” and similar expressions, or future or conditional verbs such as “will,” “should,” “would,” “could,” and “may,” or the negative of those expressions or verbs, identify forward-looking statements. We caution readers that these statements are not guarantees of future performance. Forward-looking statements are not historical facts, but instead represent only our beliefs regarding future events, which may by their nature be inherently uncertain and some of which may be outside our control. These statements may relate to plans and objectives with respect to the future, among other things which may change. We are alerting you to the possibility that our actual results may differ, possibly materially, from the expected objectives or anticipated results that may be suggested, expressed or implied by these forward-looking statements. Important factors that could cause our results to differ, possibly materially, from those indicated in the forward-looking statements include, among others, those discussed under “Risk Factors” in our most recent SEC filed quarterly or annual report.
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Any or all of management’s forward-looking statements, whether contained herein or in other publications may prove to be incorrect and are based on management’s current belief or opinions. Octave Specialty Group’s (“OSG”) and its subsidiaries’ (collectively, “Octave” or the “Company”) actual results may differ materially from those expressed in, or implied by, these forward-looking statements,, and there are no guarantees about the performance of Octave’s securities. Among events, risks, uncertainties or factors that could cause actual results to differ materially are: (1) the high degree of volatility in the price of OSG’s common stock; (2) uncertainty concerning the Company’s ability to achieve value for holders of its securities from the specialty property and casualty insurance business, the insurance distribution business, or related businesses; (3) greater than expected underwriting losses in the Company’s specialty property and casualty insurance business resulting in inadequacy of loss and loss expense reserves and the possibility that changes in reserves may result in further volatility of earnings or financial results; (4) credit risk throughout Octave’s business, including but not limited to issuers of securities in our investment portfolios, and exposures to reinsurers; (5) the Company’s level of indebtedness, including its ability to generate sufficient cash to service obligations, refinance existing debt, or obtain additional financing on acceptable terms, and the resulting impact on financial condition and operating flexibility; (6) dependence on third parties, including specialty insurance program partners, reinsurers, distribution relationships, and other service providers, and the risk of failures or disruptions in their performance; (7) inability to obtain reinsurance coverage on economic terms; (8) loss of key relationships for production of business in specialty property and casualty and insurance distribution businesses or the inability to secure such additional relationships to produce expected results; (9) the impact of catastrophic public health, environmental or natural events, or political events, including as a result of global or regional conflicts; (10) restrictive covenants in agreements and instruments that impair Octave’s ability to pursue or achieve its business strategies; (11) regulatory risks, including disagreements with insurance regulators, changes in laws or regulations, and the Company’s ability to adapt to an evolving regulatory environment; (12) risks related to changes in the composition, valuation, or performance of the Company’s investment portfolio, including interest rate and foreign currency exchange rate fluctuations; (13) events or circumstances that result in the impairment of our intangible assets and/or goodwill that was recorded in connection with Octave’s acquisitions; (14) the risk of litigation, regulatory inquiries, investigations, claims or proceedings, and the risk of adverse outcomes in connection therewith; (15) system security risks, data protection breaches and cyber attacks; (16) our inability to attract and retain qualified executives, senior managers and other employees, or the loss of such personnel; (17) greater competition for our specialty property and casualty insurance business and/or our insurance distribution business; (18) loss or lowering of the AM Best rating for our property and casualty insurance company subsidiaries; (19) disintermediation within the insurance industry or greater competition from technology-based insurance solutions or non-traditional insurance markets; (20) changes in law or in the functioning of the healthcare market that impair the business model of our accident and health managing general agents; (21) failure to successfully execute business expansion initiatives, integrate acquired businesses, or realize anticipated benefits from such efforts and significant obligations under put rights granted in completed acquisitions; and (22) other risks and uncertainties that have not been identified at this time.
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