Arch Capital Group

ACGL · Nasdaq · Financials · Financials, fiscal 2016 to 2025

ACGL · Last close · October 26, 2026

$102.34

Arch Capital Group's revenue rose 14.3% to $19.9 billion in fiscal 2025. Its net margin was 22.1%, down from 24.7% a year earlier. Free cash flow was $6.1 billion, down 7.5%. It paid out $1.9 billion in dividends and buybacks, 31% of free cash flow. The diluted share count fell 1.6%.

ARCH CAPITAL GROUP LTD. Latest fiscal year ended December 31, 2025 10-K filed February 26, 2026 · 0000947484-26-000017 Updated October 9, 2026

Revenue

$19.9B

14.3%

Net margin

22.1%

2.6 pts

Net income

$4.4B

2.0%

Free cash flow

$6.1B

7.5%

Return on equity

19.5%

2.5 pts

Market cap

$35.7B

Oct 26 close

P/E

8.0x

On $12.78 EPS, 4 qtrs

Net margin is net income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on equity is net income as a share of shareholders' equity. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

About these figures. Arch Capital's filings stop tagging its short-term investments after 2021, so cash and short-term investments are left blank.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2016 to 2025, earnings per share grew 23.2% a year and net income 22.8% a year, with the share count about the same.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Arch Capital Group yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Arch Capital Group's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

The example scenarios need Arch Capital Group's net cash, which its filings' structured data doesn't give for its latest year. You can enter your own figure in the calculator.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2025.

Net cash, US$ millions Cash and short-term investments minus debt and finance leases at December 31, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Arch Capital Group's own revenue growth, as above. Cautious: growth of 10% then 6% a year, 2% after year 10, a 8% discount rate. Base: growth of 20% then 11% a year, 2.5% after year 10, a 7% discount rate. Optimistic: growth of 25% then 14% a year, 3% after year 10, a 6% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $102.34
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from Arch Capital Group's earnings per share of $12.78 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 12.1×, the middle of Arch Capital Group's own P/E today, its peers' median and its sector's median (its peers' median) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 8%, 7% and 6%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to June 30, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: W. R. Berkley, Fidelity National Financial, Hartford, Cincinnati Financial.

Earnings growth in the years ahead (% a year) Starts at Arch Capital Group's revenue growth over the last 3 years, 27.5% a year, kept between 0% and 20%, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $102.34
Value at this multiple, against the last close: —
Arch Capital Group's P/E at the last close: 8.0×

Company	Last close	Earnings per share	P/E today
W. R. BerkleyWRB	$73.79	$4.87	15.2×
Fidelity National FinancialFNF	$39.94	$2.88	13.9×
Cincinnati FinancialCINF	$177.31	$17.05	10.4×
HartfordHIG	$135.94	$16.52	8.2×
Arch Capital GroupACGL	$102.34	$12.78	8.0×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	—	—	—	—	—
Debt incl. finance leases	2,724	2,725	2,726	2,728	2,729
Net debt (negative means net cash)	—	—	—	—	—
Net debt to EBITDA	—	—	—	—	—
Debt to equity	0.2x	0.2x	0.1x	0.1x	0.1x
Interest coverage	18.0x	12.9x	27.8x	34.1x	35.9x
Current ratio	—	—	—	—	—
Quick ratio	—	—	—	—	—

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, 1 insider bought $498,677 of Arch Capital Group shares on the open market, and 6 insiders sold $29.2 million.

Date	Insider	Trade	Shares	Price	Value	Filing
Aug 18, 2026	Francois MorinCFO and Treasurer	Sold	11,010	$99.32	$1.1 million	Form 4
Jun 3, 2026	Brian S PosnerDirector	Sold	3,000	$19.66	$58,980	Form 4
May 11, 2026	Brian S PosnerDirector	Sold	2,000	$17.14	$34,280	Form 4
Apr 30, 2026	Daniel Joseph HoustonDirector	Bought	5,300	$94.09	$498,677	Form 4
Mar 11, 2026	Brian S PosnerDirector	Sold	3,000	$17.12	$51,360	Form 4
Mar 10, 2026	Nicolas PapadopouloCEO, Director	Sold	21,930	$96.31	$2.1 million	Form 4
Mar 10, 2026	David GansbergPresident, Arch Capital Group	Sold	5,907	$96.37	$569,258	Form 4
Feb 11, 2026	Maamoun RajehPresident, Arch Capital Group	Sold	47,430	$96.12	$4.6 million	Form 4
Dec 15, 2025	John M PasquesiDirector	Sold	8,800	$94.17	$828,696	Form 4
Dec 12, 2025	John M PasquesiDirector	Sold	203,866	$93.90	$19.1 million	Form 4
Nov 28, 2025	Francois MorinEVP and CFO	Sold	8,000	$94.62	$756,960	Form 4

Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Fail	Fail
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Pass	Pass	Pass
Current ratio rose	—	—	—
Share count didn't rise	Fail	Fail	Pass
Gross margin rose	—	—	—
Revenue rose relative to assets	Pass	Pass	Fail
F-score	—	—	—
Accruals ratio	−2.4%	−3.6%	−2.4%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Arch Capital Group side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Arch Capital Group	FY25	14.3%	—	30.8%	—	—	—
W. R. Berkley	FY25	7.8%	—	—	—	—	—	Compare
Fidelity National Financial	FY25	5.6%	—	—	—	−0.1x	—	Compare
Hartford	FY25	6.9%	—	20.3%	22.6%	−0.0x	—	Compare
Cincinnati Financial	FY25	11.4%	—	24.5%	17.1%	−0.3x	—	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	4,464	5,627	5,451	6,926	8,508	9,248	9,613	13,634	17,440	19,929
Revenue growth	13.4%	26.1%	−3.1%	27.1%	22.9%	8.7%	4.0%	41.8%	27.9%	14.3%
Gross profit	—	—	—	—	—	—	—	—	—	—
Research and development	—	—	—	—	—	—	—	—	—	—
Operating income	—	—	—	—	—	—	—	—	—	—
Net income	693	619	758	1,636	1,406	2,157	1,476	4,443	4,312	4,399
Diluted EPS (US$)	1.78	1.36	1.73	3.87	3.32	5.23	3.80	11.62	11.19	11.60
Diluted shares (millions)	374	418	413	412	410	400	378	379	382	376
Cash flow
Cash from operations	1,377	1,095	1,559	2,048	2,886	3,425	3,816	5,749	6,673	6,172
Capital expenditure	15	23	30	38	40	41	50	52	51	44
Free cash flow	1,362	1,072	1,530	2,011	2,847	3,384	3,766	5,697	6,622	6,128
Dividends paid	0	0	0	0	0	0	0	0	0	0
Share buybacks	75	0	283	3	84	1,234	586	0	24	1,889
Acquisitions	1,993	0	0	0	0	0	0	0	852	0
Stock-based compensation	57	68	56	66	71	88	88	93	133	148
Balance sheet at fiscal year end
Cash and short-term investments	—	—	—	—	—	—	—	—	—	—
Debt incl. finance leases	1,732	1,733	1,734	1,872	2,861	2,724	2,725	2,726	2,728	2,729
Total assets	29,372	32,052	32,218	37,885	43,282	45,101	47,990	58,906	70,906	79,241
Total liabilities	20,061	21,806	21,781	25,570	29,295	31,546	35,069	40,551	50,086	55,035
Shareholders' equity	8,254	9,197	9,440	11,497	13,106	13,546	12,910	18,353	20,820	24,206
Margins and ratios
Gross margin	—	—	—	—	—	—	—	—	—	—
Operating margin	—	—	—	—	—	—	—	—	—	—
Net margin	15.5%	11.0%	13.9%	23.6%	16.5%	23.3%	15.3%	32.6%	24.7%	22.1%
Free cash flow margin	30.5%	19.1%	28.1%	29.0%	33.5%	36.6%	39.2%	41.8%	38.0%	30.8%
Return on capital	—	—	—	—	—	—	—	—	—	—
Return on equity	9.6%	7.1%	8.1%	15.6%	11.4%	16.2%	11.2%	28.4%	22.0%	19.5%
Return on assets	2.6%	2.0%	2.4%	4.7%	3.5%	4.9%	3.2%	8.3%	6.6%	5.9%
Net debt to EBITDA	—	—	—	—	—	—	—	—	—	—

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Arch Capital Group's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Arch Capital Group.