ACIC Nasdaq Earnings call
AMERICAN COASTAL INSURANCE Corp (ACIC) · Q2 2026 results and valuation
Share price: $10.18 · 2026-11-11
AMERICAN COASTAL INSURANCE Corp is a holding company engaged in the commercial property and casualty insurance business in the United States. The company provides property insurance for residential condominiums, apartments, and assisted living facilities. Its operations and customer base are concentrated in the state of Florida. Source: 10-K annual report (2026-03-09)
Results Q2 2026 vs Q1 2026 · previous quarter · published 5 Aug 2026 and 5 May 2026
Net income up 13.7% on the previous quarter. Management sounded cautious, in its script and in answers to analysts.
1 · Numbers
+13.7%
Net income vs Q1 2026
Outlook given
Net income 21.9M vs 19.3M
Revenue +16.0%
Against the same quarter last year (Q2 2025) it is −17.2%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
ACIC reduced its first event hurricane retention from $49 million to $23.5 million before income tax effective August 1.
Valuation
Is AMERICAN COASTAL INSURANCE Corp undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 10.0% growth a year (3-year revenue growth), the model's fair value is $51.43 a share — the stock trades 80% below it. Today's price assumes −13.8% growth a year.
Current price
$10.18
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
-13.8% for 10 yrs
Fair value / share
$51.43
Buy below
$38.58
Price vs fair value
Undervalued 80%
Price vs buy-below price
Undervalued 74%
Read between the lines
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Guidance
ACIC lowered its total revenue guidance to between $300 million and $320 million due to the trajectory of the current pricing environment.
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Key theme
The company expects revenue to be between $60 million and $70 million for the first 12 months.
Source quote
“But yes, for the first 12 months, we would expect it to be somewhere between $60 million and $70 million.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Some minor non-hurricane catastrophe losses incurred of approximately $3.1 million also impacted comparability with the prior year, given the lack of any such losses in 2025.”
“Without any significant hurricane losses or other surprises this year, we believe that rates, deductibles, and policy acquisition costs will likely remain under pressure into 2027, but this is likely...”
“We'd love like I said at the intro, we'd love to grow and find attractive opportunities to grow, but we're only going to do so if we can earn an...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 82.6M | 71.2M | +16.0% | 86.5M | −4.5% |
| Operating income | 28.5M | 25.5M | +11.4% | 36.2M | −21.3% |
| Net income | 21.9M | 19.3M | +13.7% | 26.4M | −17.2% |
| EPS | 0.44 | 0.39 | +12.8% | 0.53 | −17.0% |
| P/E today 5.7 | 5.5 | 5.3 | +0.2 | 6.8 | −1.3 |
Topics
Most discussed now
- New AmRisc is working extremely hard to find quality risks to utilize that capacity and they're doing a good job.
- New The revenue will be very important to help offset weakness in American Coastal Insurance's core condominium book of business.
- Gross written premiums are down 5.3% from 2025, with $22.5 million (sic)...
- Policies in force and total insured value in force as of June 30, 2026, they were both up roughly between...
- Secondarily, American Coastal Insurance is also evaluating various fronting relationships, including the structure it alreadies have in…
Faded since Q1 2026
- Dropped Introducing some new cascading layers that work like a top and drop where it's you've got a lot more vertical...
- Dropped Net income from continuing operations remained relatively flat, decreasing $400,000 in the current year, inclusive of this nonrecurring…
- Fading Most of American Coastal Insurance's risk portfolio continues to produce exceptional results, evidenced by its fantastic loss and combined…
- Fading Having a strong underlying combined ratio is what ultimately enables us to retain catastrophe risk and produce an acceptable…
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations; Regulation FD disclosure · SEC 8-K
- Director or officer change · SEC 8-K
Christopher Griffith resigned as Chief Operating Officer and Chief Information Officer of American Coastal Insurance Corporation effective October 1, 2026, to pursue another opportunity.
- Results of operations; Regulation FD disclosure · SEC 8-K
- Shareholder vote results · SEC 8-K · routine
- Other events · SEC 8-K
American Coastal Insurance Corporation renewed its Core CAT program for 2026/27 with an occurrence-based limit of $1.918 billion, an increase of $241.5 million or 14.4% from the $1.676 billion limit in 2025/26.
- Results of operations; Regulation FD disclosure · SEC 8-K
- Director or officer change · SEC 8-K
Sherrill W. Hudson will not seek re-election as a Director, Deirdre A. Brown is nominated to replace him, and Troy Crawford was appointed as Chief Underwriting Officer on February 17, 2026.
- Results of operations; Regulation FD disclosure · SEC 8-K
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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August 1
effective date of reduced first event hurricane retention
Source quote
“As disclosed on Page 9 of our earnings presentation, we recently seized an opportunity to reduce our first event hurricane retention from $49 million to only $23.5 million before income tax, effective August 1.”
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this year
profitability despite 3 full retentions
Source quote
“Thus, we are confident to state that American Coastal should remain profitable this year, even with 3 full retentions.”
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full year
earnings guidance
Source quote
“Accordingly, our earnings guidance for the full year currently remains unchanged at $85 million to $100 million, inclusive of net average annual losses expected from catastrophes.”
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into 2027
rates, deductibles, and policy acquisition costs remaining under pressure
Source quote
“Without any significant hurricane losses or other surprises this year, we believe that rates, deductibles, and policy acquisition costs will likely remain under pressure into 2027, but this is likely to be partially offset by lower reinsurance costs.”
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August to December
expensing of $4 million of the retention buydown cost
Source quote
“So about $4 million of that will be expensed as ceded earned this year from August to December, and the other -- the remainder as ceded earned from January through May 31.”