ACGL ARCH CAPITAL GROUP LTD.

Overview and Growth

In fiscal 2025, ARCH CAPITAL GROUP LTD. recorded $19.93B of revenue, net income of $4.40B, and an operating cash inflow of $6.17B. The $19.93B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Compared with $17.44B in fiscal 2024, revenue recorded a 14.3% year-over-year increase. The company reported diluted EPS of $11.60, adding a shareholder-level measure to the absolute income figures considered below. Against diluted EPS of $11.19 in fiscal 2024, the current result was 3.7% higher. The diluted weighted-average share count was 375.90M, linking total earnings with the per-share result received by shareholders. Diluted shares moved 1.5% from 381.80M in fiscal 2024, leaving the current share base lower year over year. At period end, total assets were $79.24B, framing the scale of the company’s operating and financing commitments. The revenue-to-assets relationship was 0.25x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

The bottom-line result was net income of $4.40B, after the operating, financing, tax, and other items recognized for the period. Net margin was 22.1%, meaning that this portion of revenue remained as net income after all recognized expenses. The earnings statement records $5.16B of pretax income, the profit base against which the reported tax provision can be assessed. Measured against revenue, pretax income equaled 25.9%, adding a pre-tax profitability layer between revenue and net income. The reported income-tax provision was $760.00M, the amount recognized between pretax income and the final net-income result. Relative to pretax income, the tax provision measured 14.7%, quantifying the portion of pre-tax earnings paid in income tax. Net income equaled 18.2% of period-end equity, showing the earnings generated on shareholders’ book capital. Net income represented 5.6% of period-end assets, placing the company’s bottom-line result against the total resource base employed. Current net income of $4.40B was above fiscal 2024 net income of $4.31B, showing the direction of the bottom-line change.

Liquidity and Capital Structure

At period end, the $79.24B asset base was financed through $55.03B of liabilities and $24.21B of equity. The company held $993.00M in cash and equivalents, a narrower liquidity measure than total current assets. The equity-to-assets relationship was 30.5%, placing book capital against the total resource base. Relative to total assets, liabilities measured 69.5%, complementing the separate equity-based view of the company’s capital structure. Cash and equivalents equaled 1.3% of total assets, showing the liquid cash component within the company’s broader resource base. Total assets were 11.8% higher than fiscal 2024 assets of $70.91B, measuring the company’s own balance-sheet change. Reported equity changed 16.3% from $20.82B in fiscal 2024, placing the current capital base higher year over year. Compared with $979.00M in fiscal 2024, the current cash balance moved 1.4% and finished higher.

Cash Flow and Earnings Quality

The company reported $6.17B of operating cash flow, a cash inflow that shows the cash generated by operations. Against net income, operating cash flow measured 1.4x, showing the relationship between accrual earnings and operating cash. Capital expenditures used $44.00M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital expenditures represented 0.7% of operating cash flow, leaving the remainder available as free cash flow. Free cash flow came to $6.13B, leaving a positive amount after capital expenditures. Free cash flow represented 30.7% of revenue, linking post-investment cash generation with the company’s operating scale. Measured against total assets, free cash flow represented 7.7%, showing the cash productivity of the company’s assets. Compared with $6.67B in fiscal 2024, current operating cash flow of $6.17B was below the prior result.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.