Octave Specialty Group Reports Second Quarter 2026 Results

About this update from Octave Specialty Group, Inc.

Octave Specialty Group, Inc. (NYSE: OSG) ("Octave" or "OSG"), a global specialty insurance firm, today reported its results for the Second Quarter 2026. Claude LeBlanc, President and Chief Executive Officer of Octave, said "Our core Insurance Distribution business delivered another quarter of strong performance led by revenue growth of 77% and organic revenue growth of 44%. Our Insurance Distribution top-line success translated to a near fourfold increase in Adjusted EBITDA to shareholders during the second quarter of 2026 compared to 2025. These results reflect the successful 2025 acquisition of ArmadaCare and the diversification of our portfolio of MGAs against the backdrop of increasingly soft property market conditions." LeBlanc continued, "While our efforts continue towards repositioning Everspan, we are encouraged by the trend in Everspan's results since these efforts began in the second half of 2024. During the second quarter of 2026 the combined ratio decreased more than 600 basis points from the prior year period led by a reduction of the loss ratio to 61.4%." "During the quarter, we also further advanced our data and AI initiatives designed to both improve our operating platform as well as enhance underwriting and business production. We recently launched our proprietary, enterprise, AI-driven underwriting platform, which turns unstructured submissions into decision-ready risks. We expect this platform to enable us to significantly accelerate and improve underwriting decisions and bring additional MGAs to market more quickly." Octave's Second Quarter 2026 Summary Results     Three Months Ended June 30,   Six Months Ended June 30, (in thousands, except per share data) (1)     2026       2025     % Change     2026       2025     % Change Total revenues   $ 82,995     $ 54,957     51 %   $ 187,165     $ 117,713     59 % Total expenses   $ 94,666     $ 77,931     21 %   $ 202,180     $ 155,794     30 % Pretax income (loss) from continuing operations   $ (11,671 )   $ (22,974 )   NM     $ (15,015 )   $ (38,081 )   NM   Provision (benefit) for income taxes from continuing operations   $ 485     $ (2,172 )   NM     $ 4     $ (2,789 )   NM   Net income (loss) from continuing operations   $ (12,156 )   $ (20,802 )   NM     $ (15,019 )   $ (35,292 )   NM   Net income (loss) from continuing operations attributable to shareholders, net of tax   $ (14,429 )   $ (20,548 )   NM     $ (21,280 )   $ (36,692 )   NM   Net income (loss) from discontinued operations   $ —     $ (52,151 )   NM     $ —     $ (82,398 )   NM   Net income (loss) attributable to shareholders   $ (14,429 )   $ (72,699 )   NM     $ (21,280 )   $ (119,090 )   NM   Net income (loss) from continuing operations attributable to shareholders per diluted share (3)   $ (0.33 )   $ (0.42 )   (21 )%   $ (0.47 )   $ (0.99 )   (53 )% Net income (loss) attributable to shareholders per diluted share (3)   $ (0.33 )   $ (1.51 )   (78 )%   $ (0.47 )   $ (2.72 )   (83 )% Non-GAAP (2)                         EBITDA to shareholders   $ (1,737 )   $ (9,848 )   NM     $ 1,873     $ (15,345 )   NM   Adjusted EBITDA to shareholders   $ 3,685     $ (4,569 )   NM     $ 23,754     $ (5,876 )   NM   Adjusted net income (loss) attributable to shareholders   $ (1,813 )   $ (10,552 )   NM     $ 14,802     $ (16,587 )   NM   Per Share                         Adjusted EBITDA to shareholders per diluted share (2)   $ 0.08     $ (0.09 )   NM     $ 0.52     $ (0.12 )   NM   Adjusted net income (loss) to shareholders per diluted share (2)   $ (0.04 )   $ (0.22 )   (82 )%   $ 0.33     $ (0.35 )   NM                             Weighted-average diluted shares outstanding     45,391       48,117     (6 )%     45,347       47,738     (5 )% (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 Second Quarter 2026 Summary (4) Total revenue for the second quarter of 2026 was $83.0 million , an increase of 51% compared to $55.0 million in the same prior-year period. The growth in total revenue was driven primarily by the Insurance Distribution segment, reflecting the acquisition of ArmadaCare and organic revenue growth of 44%. Octave's net (loss) to shareholders for the second quarter of 2026 improved to $(14.4) million compared to $(20.5) million in the same prior-year period. The improvement was attributable to (i) our Insurance Distribution segment, which reported a net (loss) of $(3.7) million compared to $(7.7) million in the same prior-year period, (ii) our Specialty Property & Casualty segment, where Everspan reported net income of $1.1 million compared to $0.4 million in the same prior-year period, and (iii) a Corporate net loss of $(11.6) million compared to $(13.2) million in the same prior-year period. Adjusted net (loss) to shareholders for the second quarter of 2026 improved to $(1.8) million, compared to $(10.6) million in the same prior-year period. Adjusted EBITDA to shareholders for the second quarter of 2026 improved to $3.7 million, compared to $(4.6) million in the same prior-year period. The improvement in Adjusted EBITDA to shareholders was driven by a $7.3 million increase in Insurance Distribution Adjusted EBITDA to shareholders, reflecting organic growth across our core MGA platform, the acquisition of ArmadaCare, and an increase in our ownership position in Octave Ventures (formerly known as Beat Capital Partners) to 70% from 60%. In addition, Everspan's Adjusted EBITDA to shareholders increased $1.1 million to $1.8 million in the second quarter of 2026 from $0.7 million a year ago. (4) For definitions of each non-GAAP measure referred to above, as well as reconciliation of such non-GAAP measures to their most directly comparable GAAP measures, see "Non-GAAP Financial Measures" below. Earnings Call and Webcast On August 7, 2026, at 8:30am ET, Claude LeBlanc, President and Chief Executive Officer, and David Trick, Executive Vice President and Chief Financial Officer, will discuss Octave's second quarter 2026 results and updated 2026 guidance during a conference call. A live audio webcast of the call will be available through the Investor Relations section of Octave’s website, https://octavegroup.com/investor-relations/events-and-presentations . Participants may also listen via telephone by dialing (877) 407-9716 or (201) 493-6779. The webcast will be archived on Octave's website. A replay of the call will be available through August 21, 2026, and can be accessed by dialing (Domestic) (844) 512-2921 or (International) (412) 317-6671; and using ID# 13761601. Additional information is included in an operating supplement and presentations on Octave's website, www.octavegroup.com . Results of Operations by Segment Insurance Distribution Segment     Three Months Ended June 30,   Six Months Ended June 30, ($ in thousands) (1)     2026       2025     % Change     2026       2025     % Change Premiums placed   $ 314,367     $ 249,912     26 %   $ 741,200     $ 483,098     53 % Total revenues   $ 58,418     $ 33,041     77 %   $ 136,944     $ 74,039     85 % Pretax income (loss)   $ (846 )   $ (10,173 )   NM     $ 15,939     $ (12,416 )   NM   Pretax income (loss) to shareholders (2)   $ (3,232 )   $ (9,919 )   NM     $ 9,565     $ (13,816 )   NM   Net income (loss)   $ (1,325 )   $ (7,992 )   NM     $ 15,828     $ (9,735 )   NM   Net income (loss) to shareholders (2)   $ (3,711 )   $ (7,738 )   NM     $ 9,454     $ (11,135 )   NM   EBITDA (4)   $ 13,887     $ 4,698     196 %   $ 44,704     $ 16,781     166 % EBITDA to shareholders (2)(4)   $ 8,670     $ 2,513     245 %   $ 32,137     $ 9,576     236 % Adjusted EBITDA (4)   $ 15,329     $ 4,580     235 %   $ 48,324     $ 16,692     190 % Adjusted EBITDA to shareholders (2)(4)   $ 9,792     $ 2,519     289 %   $ 35,132     $ 9,611     266 % Adjusted net income (loss) (4)   $ 9,419     $ (701 )   NM     $ 38,168     $ 6,348     501 % Adjusted net income (loss) to shareholders (2)(4)   $ 4,605     $ (3,013 )   NM     $ 26,650     $ (464 )   NM   Pretax income margin to shareholders (3)     (5.5 )%     (30.0 )%   2450 bps     7.0 %     (18.7 )%   2570 bps Adjusted EBITDA margin to shareholders (4),(5)     16.8 %     7.6 %   920 bps     25.7 %     13.0 %   1270 bps Organic Growth (4)     44.1 %     (2.6 )%         42.9 %     (2.3 )%     (1)  Reflects segment results prior to intersegment activities eliminated in consolidation. (2) After the impact of noncontrolling interests (3) Represents Pretax income (loss) to shareholders divided by total revenues (4) See Non-GAAP Financial Data section of this press release for further information (5) Represents Adjusted EBITDA to shareholders divided by total revenues Specialty Property & Casualty Insurance Segment     Three Months Ended June 30,   Six Months Ended June 30, ($ in thousands) (1)     2026       2025     % Change     2026       2025     % Change Gross premium written   $ 94,702     $ 96,247     (2 )%   $ 198,418     $ 183,162     8 % Net premiums written   $ 23,142     $ 15,207     52 %   $ 55,591     $ 33,212     67 % Net premiums earned   $ 21,749     $ 16,203     34 %   $ 41,750     $ 31,881     31 % Total revenue   $ 26,403     $ 21,390     23 %   $ 51,702     $ 42,561     21 % Net income (loss)   $ 1,119     $ 428     161 %   $ (6,571 )   $ 1,852     NM   Adjusted EBITDA to shareholders (2)   $ 1,757     $ 681     158 %   $ 3,375     $ 2,270     49 % Loss Ratio     61.4 %     67.8 %   (640) bps     79.1 %     67.4 %   1170 bps Expense Ratio     39.2 %     38.9 %   30 bps     45.0 %     37.1 %   790 bps Combined Ratio     100.6 %     106.7 %   (610) bps     124.1 %     104.5 %   1960 bps (1) Reflects segment results prior to intersegment activities eliminated in consolidation. (2) See Non-GAAP Financial Data section of this press release for further information 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 $48 million as of June 30, 2026. Assets included cash and liquid securities of $26 million and other investments of $22 million. Consolidated Octave Specialty Group, Inc. Stockholders' Equity and Noncontrolling Interests ("NCI") Impact to EPS Stockholders’ equity attributable to common shareholders at June 30, 2026, was $699 million, or $15.52 per share, compared to $713 million, or $15.83 per share, as of March 31, 2026. The decline was primarily a result of the total comprehensive loss attributable to common shareholders of $(12) million. Calculation of Earnings (Loss) Per Share (EPS) Diluted net income (loss) per share is computed by dividing net income (loss) attributable to shareholders, adjusted for the direct retained earnings impacts of changes to 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 (loss) attributable to shareholders to the numerator in the diluted earnings per share calculation, together with the resulting earnings per share amounts:   Three Months Ended June 30,   Six Months Ended June 30, (in thousands, except per share data)   2026       2025       2026       2025   Net income (loss) from continuing operations attributable to shareholders $ (14,429 )   $ (20,548 )   $ (21,280 )   $ (36,692 ) Adjustment for Redeemable NCI   (737 )     220     $ 70     $ (10,605 ) Numerator of diluted EPS $ (15,166 )   $ (20,328 )   $ (21,210 )   $ (47,297 ) Per Share — Diluted $ (0.33 )   $ (0.42 )   $ (0.47 )   $ (0.99 )                 Net income (loss) attributable to shareholders $ (14,429 )   $ (72,699 )   $ (21,280 )   $ (119,090 ) Adjustment for Redeemable NCI   (737 )     220       70       (10,605 ) Numerator of diluted EPS $ (15,166 )   $ (72,479 )   $ (21,210 )   $ (129,695 ) Per Share — Diluted $ (0.33 )   $ (1.51 )   $ (0.47 )   $ (2.72 )                 WASO-Diluted   45,391       48,117       45,347       47,738     OCTAVE SPECIALTY GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Income (Loss) (Unaudited)     Three Months Ended June 30,   Six Months Ended June 30, ($ in thousands, except share data)     2026       2025       2026       2025   Revenues:                 Commissions   $ 49,728     $ 30,322     $ 117,906     $ 67,093   Servicing and other fees     5,913       4,472       15,275       9,436   Net premiums earned     21,749       16,203       41,750       31,881   Program fees     3,293       3,497       6,937       7,149   Investment income     1,877       2,609       4,232       5,424   Other     435       (2,146 )     1,065       (3,270 ) Total revenues     82,995       54,957       187,165       117,713   Expenses:                 Commissions     8,508       7,403       22,513       17,768   Losses and loss adjustment expenses     13,346       10,978       33,025       21,474   Policy acquisition costs     6,359       3,699       12,730       7,540   General and administrative     51,415       40,540       104,570       79,071   Intangible amortization and depreciation     12,264       9,741       24,478       18,917   Interest     2,774       5,570       4,864       11,024   Total expenses     94,666       77,931       202,180       155,794   Pretax income (loss) from continuing operations     (11,671 )     (22,974 )     (15,015 )     (38,081 ) Provision (benefit) for income taxes from continuing operations     485       (2,172 )     4       (2,789 ) Net income (loss) from continuing operations     (12,156 )     (20,802 )     (15,019 )     (35,292 ) Net income (loss) from discontinued operations     —       (52,151 )     —       (82,398 ) Net income (loss)     (12,156 )     (72,953 )     (15,019 )     (117,690 ) Net (gain) loss attributable to noncontrolling interest     (2,273 )     254       (6,261 )     (1,400 ) Net income (loss) attributable to shareholders   $ (14,429 )   $ (72,699 )   $ (21,280 )   $ (119,090 )                   Net income (loss) from continuing operations attributable to shareholders   $ (14,429 )   $ (20,548 )   $ (21,280 )   $ (36,692 ) Net income (loss) from discontinued operations attributable to shareholders     —       (52,151 )     —       (82,398 ) Net income (loss) attributable to shareholders   $ (14,429 )   $ (72,699 )   $ (21,280 )   $ (119,090 )                   Net income (loss) from continuing operations per share attributable to shareholders                 Basic   $ (0.33 )   $ (0.42 )   $ (0.47 )   $ (0.99 ) Diluted   $ (0.33 )   $ (0.42 )   $ (0.47 )   $ (0.99 )                   Net income (loss) per share attributable to shareholders                 Basic   $ (0.33 )   $ (1.51 )   $ (0.47 )   $ (2.72 ) Diluted   $ (0.33 )   $ (1.51 )   $ (0.47 )   $ (2.72 )                   Weighted-average number of common shares outstanding:                 Basic     45,390,612       48,116,503       45,347,014       47,738,050   Diluted     45,390,612       48,116,503       45,347,014       47,738,050     OCTAVE SPECIALTY GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) ($ in thousands, except share data)   June 30, 2026   March 31, 2026 Assets:         Investments:         Fixed maturity securities, at fair value (amortized cost: $136,793 and $139,242)   $ 134,141     $ 137,092   Short-term investments, at fair value (amortized cost: $82,513 and $92,295)     82,513       92,295   Other investments (includes $7,498 and $7,454 at fair value)     25,015       24,971   Total investments (net of allowance for credit losses of $0 and $0)     241,669       254,358   Cash and cash equivalents (including $52,308 and $46,634 of restricted cash)     79,096       93,537   Premium receivables (net of allowance for credit losses of $500 and $500)     94,635       87,653   Commission and fees receivable     100,537       106,198   Reinsurance recoverable on paid and unpaid losses (net of allowance for credit losses of $100 and $100)     495,653       469,859   Deferred ceded premium     148,236       145,420   Policy acquisition costs     16,423       16,451   Intangible assets, less accumulated amortization     447,448       458,380   Goodwill     534,304       533,497   Other assets (net of allowance for credit losses of $350 and $350)     122,856       101,673   Total assets   $ 2,280,857     $ 2,267,026   Liabilities and Stockholders’ Equity:         Liabilities:         Unearned premiums   $ 202,890     $ 198,681   Loss and loss adjustment expense reserves     499,043       487,261   Ceded premiums payable     93,346       89,148   Deferred program fees and reinsurance commissions     6,989       6,929   Commission payable     128,231       118,086   Deferred taxes     58,855       60,553   Long-term debt     155,459       117,062   Accrued interest payable     27       1,305   Other liabilities     120,643       158,458   Total liabilities     1,265,483       1,237,483   Redeemable noncontrolling interest     197,529       195,969   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 48,876,882     489       489   Additional paid-in capital     379,561       380,263   Accumulated other comprehensive income     3,292       1,224   Retained earnings     348,474       363,751   Treasury stock, shares at cost: 3,859,121 and 3,863,290     (33,063 )     (33,109 ) Total Octave Specialty Group, Inc. stockholders’ equity     698,753       712,618   Nonredeemable noncontrolling interest     119,092       120,956   Total stockholders’ equity     817,845       833,574   Total liabilities, redeemable noncontrolling interest and stockholders’ equity   $ 2,280,857     $ 2,267,026   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 because they are not calculated in accordance with GAAP. 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 to 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) other items such as contingent commissions, profit 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 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 shareholders 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 noncontrolling interests 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 June 30, 2026   Specialty Property & Casualty Insurance   Insurance Distribution   Corporate & Other   Eliminations   Consolidated ($ in thousands)                     Gross premiums written   $ 94,702                 $ 94,702   Net premiums written     23,142                   23,142   Total revenues     26,403     $ 58,418     $ 232     $ (2,058 )     82,995   Total expenses     25,159       59,264       11,988       (1,745 )     94,666   Pretax income (loss)     1,244       (846 )     (11,756 )     (313 )     (11,671 ) Provision (benefit) for income taxes     125       479       (119 )     —       485   Net income (loss)   $ 1,119     $ (1,325 )   $ (11,637 )   $ (313 )   $ (12,156 )                       Adjustments to EBITDA                     Add: Interest expense   $ —     $ 2,774     $ —       —     $ 2,774   Add: Income tax expense     125       479       (119 )     —       485   Add: Depreciation     —       350       305       —       655   Add: Intangible amortization     —       11,609       —       —       11,609   EBITDA   $ 1,244     $ 13,887     $ (11,451 )   $ (313 )   $ 3,367   EBITDA attributable to shareholders   $ 1,244     $ 8,670     $ (11,451 )   $ (200 )   $ (1,737 )                       Adjustments to Adjusted EBITDA                     Add: Acquisition and integration-related expenses   $ —     $ 451     $ 688     $ —     $ 1,139   Add: Equity-based compensation expense     372       991       2,650       —       4,013   Add: Severance and restructuring expense     141       —       449       —       590   Add: Other non-operating (income) losses     —       —       —       —       —   Adjusted EBITDA   $ 1,757     $ 15,329     $ (7,664 )   $ (313 )   $ 9,109   Adjusted EBITDA attributable to shareholders   $ 1,757     $ 9,792     $ (7,664 )   $ (200 )   $ 3,685                         Net income (loss)   $ 1,119     $ (1,325 )   $ (11,637 )   $ (313 )   $ (12,156 ) Adjustments:                     Add: Acquisition and integration-related expenses     —       451       688       —       1,139   Add: Intangible amortization     —       11,609       —       —       11,609   Add: Equity-based compensation expense     372       991       2,650       —       4,013   Add: Severance and restructuring expense     141       —       449       —       590   Add: Other non-operating (income) losses     —       —       —       —       —   Adjusted net income (loss) before tax adjustments and NCI     1,632       11,726       (7,850 )     (313 )     5,195   Income tax effects     (1,132 )     (2,307 )     1,132       —       (2,307 ) Adjusted net income (loss) before NCI     500       9,419       (6,718 )     (313 )     2,888   Net (income) loss attributable to noncontrolling interest     —       (4,814 )     —       113       (4,701 ) Adjusted net income (loss) attributable to shareholders   $ 500     $ 4,605     $ (6,718 )   $ (200 )   $ (1,813 )                       Net income (loss) margin     4.2 %     (2.3 )%     NM       NM       (14.6 )% Adjusted EBITDA Margin     6.7 %     26.2 %     NM       NM       11.0 % Adjusted EBITDA Margin to shareholders     6.7 %     16.8 %     NM       NM       4.4 % Adjusted net income (loss) after NCI margin     1.9 %     7.9 %     NM       NM       (2.2 )% Three Months Ended June 30, 2025   Specialty Property & Casualty Insurance   Insurance Distribution   Corporate & Other   Eliminations   Consolidated ($ in thousands)                     Gross premiums written   $ 96,247                 $ 96,247   Net premiums written     15,207                   15,207   Total revenues     21,390     $ 33,041     $ 526     $ —     54,957   Total expenses     20,770       43,214       13,949       —     77,931   Pretax income (loss)     620       (10,173 )     (13,423 )     —     (22,974 ) Provision (benefit) for income taxes     192       (2,181 )     (183 )     —     (2,172 ) Net income (loss) from Continuing Operations   $ 428     $ (7,992 )   $ (13,240 )   $ —   $ (20,802 )                       Adjustments to EBITDA                     Add: Interest expense   $ —     $ 5,570     $ —     $ —   $ 5,570   Add: Income tax expense     192       (2,181 )     (183 )     —     (2,172 ) Add: Depreciation     —       —       440       —     440   Add: Intangible amortization     —       9,301       —       —     9,301   EBITDA   $ 620     $ 4,698     $ (12,983 )   $ —   $ (7,663 ) EBITDA attributable to shareholders   $ 620     $ 2,513     $ (12,983 )   $ —   $ (9,848 )                       Adjustments to Adjusted EBITDA                     Add: Acquisition and integration-related expenses   $ —     $ 375     $ 399     $ —   $ 774   Add: Equity-based compensation expense     61       67       1,895       —     2,023   Add: Severance and restructuring expense     —       31       2,918       —     2,949   Add: Other non-operating (income) losses     —       (591 )     —       —     (591 ) Adjusted EBITDA   $ 681     $ 4,580     $ (7,771 )   $ —   $ (2,508 ) Adjusted EBITDA to attributable to shareholders   $ 681     $ 2,519     $ (7,771 )   $ —   $ (4,569 )                       Net income (loss) (Continuing Operations)   $ 428     $ (7,992 )   $ (13,240 )   $ —   $ (20,802 ) Adjustments:                     Add: Acquisition and integration-related expenses     —       375       399       —     774   Add: Intangible amortization     —       9,301       —       —     9,301   Add: Equity-based compensation expense     61       67       1,895       —     2,023   Add: Severance and restructuring expense     —       31       2,918       —     2,949   Add: Other non-operating (income) losses     —       (591 )     —       —     (591 ) Adjusted net income (loss) before tax adjustments and NCI     489       1,191       (8,028 )     —     (6,348 ) Income tax effects     (15 )     (1,892 )     15       —     (1,892 ) Adjusted net income (loss) before NCI     474       (701 )     (8,013 )     —     (8,240 ) Net (income) loss attributable to noncontrolling interest     —       (2,312 )     —       —     (2,312 ) Adjusted net income (loss) attributable to shareholders   $ 474     $ (3,013 )   $ (8,013 )   $ —   $ (10,552 )                       Net income (loss) margin     2.0 %     (24.2 )%     NM       NM     (37.9 )% Adjusted EBITDA Margin     3.2 %     13.9 %     NM       NM     (4.6 )% Adjusted EBITDA Margin to shareholders     3.2 %     7.6 %     NM       NM     (8.3 )% Adjusted net income (loss) after NCI margin     2.2 %     (9.1 )%     NM       NM     (19.2 )%                       Results of Operations by Segment (Continued) Six Months Ended June 30, 2026   Specialty Property & Casualty Insurance   Insurance Distribution   Corporate & Other   Eliminations   Consolidated ($ in thousands)                     Gross premiums written   $ 198,418                 $ 198,418   Net premiums written     55,591                   55,591   Total revenues     51,702     $ 136,944     $ 577     $ (2,058 )     187,165   Total expenses     58,740       121,005       24,180       (1,745 )     202,180   Pretax income (loss)     (7,038 )     15,939       (23,603 )     (313 )     (15,015 ) Provision (benefit) for income taxes     (467 )     111       360       —       4   Net income (loss)   $ (6,571 )   $ 15,828     $ (23,963 )   $ (313 )   $ (15,019 )                       Adjustments to EBITDA                     Add: Interest expense   $ —     $ 4,864     $ —     $ —     $ 4,864   Add: Income tax expense     (467 )     111       360       —       4   Add: Depreciation     —       645       577       —       1,222   Add: Intangible amortization     —       23,256       —       —       23,256   EBITDA   $ (7,038 )   $ 44,704     $ (23,026 )   $ (313 )   $ 14,327   EBITDA attributable to shareholders   $ (7,038 )   $ 32,137     $ (23,026 )   $ (200 )   $ 1,873                         Adjustments to Adjusted EBITDA                     Add: Acquisition and integration-related expenses   $ —     $ 1,855     $ 1,752     $ —     $ 3,607   Add: Equity-based compensation expense     1,069       1,765       5,771       —       8,605   Add: Severance and restructuring expense     1,432       —       868       —       2,300   Add: Other non-operating (income) losses     7,912       —       82       —       7,994   Adjusted EBITDA   $ 3,375     $ 48,324     $ (14,553 )   $ (313 )   $ 36,833   Adjusted EBITDA attributable to shareholders   $ 3,375     $ 35,132     $ (14,553 )   $ (200 )   $ 23,754                         Net income (loss)   $ (6,571 )   $ 15,828     $ (23,963 )   $ (313 )   $ (15,019 ) Adjustments:                     Add: Acquisition and integration-related expenses     —       1,855       1,752       —       3,607   Add: Intangible amortization     —       23,256       —       —       23,256   Add: Equity-based compensation expense     1,069       1,765       5,771       —       8,605   Add: Severance and restructuring expense     1,432       —       868       —       2,300   Add: Other non-operating (income) losses     7,912       —       82       —       7,994   Adjusted net income (loss) before tax adjustments and NCI     3,842       42,704       (15,490 )     (313 )     30,743   Income tax effects     (2,187 )     (4,536 )     2,187       —       (4,536 ) Adjusted net income (loss) before NCI     1,655       38,168       (13,303 )     (313 )     26,207   Net (income) loss attributable to noncontrolling interest     —       (11,518 )     —       113       (11,405 ) Adjusted net income (loss) attributable to shareholders   $ 1,655     $ 26,650     $ (13,303 )   $ (200 )   $ 14,802                         Net income (loss) margin     (12.7 )%     11.6 %     NM       NM       (8.0 )% Adjusted EBITDA Margin     6.5 %     35.3 %     NM       NM       19.7 % Adjusted EBITDA Margin to shareholders     6.5 %     25.7 %     NM       NM       12.7 % Adjusted Net income (loss) after NCI margin     3.2 %     19.5 %     NM       NM       7.9 % Six Months Ended June 30, 2025   Specialty Property & Casualty Insurance   Insurance Distribution   Corporate & Other   Eliminations   Consolidated ($ in thousands)                     Gross premiums written   $ 183,162                 $ 183,162   Net premiums written     33,212                   33,212   Total revenues     42,561     $ 74,039     $ 1,113     $ —     117,713   Total expenses     40,439       86,455       28,901       —     155,794   Pretax income (loss)     2,122       (12,416 )     (27,788 )     —     (38,081 ) Provision (benefit) for income taxes     270       (2,681 )     (378 )     —     (2,789 ) Net income (loss) from Continuing Operations   $ 1,852     $ (9,735 )   $ (27,410 )   $ —   $ (35,292 )                       Adjustments to EBITDA                     Add: Interest expense   $ —     $ 11,024     $ —     $ —   $ 11,024   Add: Income tax expense     270       (2,681 )     (378 )     —     (2,789 ) Add: Depreciation     —       109       744       —     853   Add: Intangible amortization     —       18,064       —       —     18,064   EBITDA   $ 2,122     $ 16,781     $ (27,044 )   $ —   $ (8,140 ) EBITDA attributable to shareholders   $ 2,122     $ 9,576     $ (27,044 )   $ —   $ (15,345 )                       Adjustments to Adjusted EBITDA                     Add: Acquisition and integration-related expenses   $ —     $ 375     $ 1,081     $ —   $ 1,456   Add: Equity-based compensation expense     147       67       3,469       —     3,683   Add: Severance and restructuring expense     —       60       4,737       —     4,797   Add: Other non-operating (income) losses     —       (591 )     —       —     (591 ) Adjusted EBITDA   $ 2,270     $ 16,692     $ (17,759 )   $ —   $ 1,205   Adjusted EBITDA to shareholders   $ 2,270     $ 9,611     $ (17,759 )   $ —   $ (5,876 )                       Net income (loss) (Continuing Operations)   $ 1,852     $ (9,735 )   $ (27,410 )   $ —   $ (35,292 ) Adjustments:                     Add: Acquisition and integration-related expenses     —       375       1,081       —     1,456   Add: Intangible amortization     —       18,064       —       —     18,064   Add: Equity-based compensation expense     147       67       3,469       —     3,683   Add: Severance and restructuring expense     —       60       4,737       —     4,797   Add: Other non-operating (income) losses     —       (591 )     —       —     (591 ) Adjusted net income (loss) before tax adjustments and NCI     2,000       8,240       (18,123 )     —     (7,883 ) Income tax effects     (15 )     (1,892 )     15       —     (1,892 ) Adjusted net income (loss) before NCI     1,985       6,348       (18,108 )     —     (9,775 ) Net (income) loss attributable to noncontrolling interest     —       (6,812 )     —       —     (6,812 ) Adjusted net income (loss) attributable to shareholders   $ 1,985     $ (464 )   $ (18,108 )   $ —   $ (16,587 )                       Net income (loss) margin     4.4 %     (13.1 )%     NM       NM     (30.0 )% Adjusted EBITDA Margin     5.3 %     22.5 %     NM       NM     1.0 % Adjusted EBITDA Margin to shareholders     5.3 %     13.0 %     NM       NM     (5.0 )% Adjusted Net income (loss) after NCI margin     4.7 %     (0.6 )%     NM       NM     (14.1 )% Organic Growth   Three Months Ended June 30,   Six Months Ended June 30, ($ in thousands)   2026       2025     % Growth     2026       2025     % Growth Total Insurance Distribution revenue (1) $ 58,418     $ 33,041     76.8 %   $ 136,944     $ 74,039     85.0 % Less: Acquired revenues   (7,289 )     —           (28,410 )     —       Less: Profit commission and contingent commission income   (5,620 )     (2,266 )         (11,808 )     (6,957 )     Less: Impact of F.X. rates   (445 )     2,564           (1,722 )     3,710       Less: Other conforming adjustments (2)   —       (2,074 )         —       (4,307 )     Total Organic Revenue & Growth Percentage $ 45,064     $ 31,265     44.1 %   $ 95,004     $ 66,485     42.9 % (1) Total Insurance Distribution revenue includes investment income (2) Change in accounting in 1Q26 related to an MGA contracts on a net basis, normalizing the prior year for consistency. 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 June 30,   Six Months Ended June 30, ($ in thousands)     2026     2025   % Change     2026     2025   % Change Specialty Property & Casualty Insurance Gross Premiums Written   $ 94,702   $ 96,247   (2 )%   $ 198,418   $ 183,162   8 % Insurance Distribution Premiums Placed (1)     306,667     249,912   23 %     733,500     483,098   52 % Specialty P&C Insurance Production   $ 401,369   $ 346,159   16 %   $ 931,918   $ 666,260   40 % (1) Excludes $7,700 of intersegment premiums placed with Specialty Property & Casualty Insurance during the three and six months ended June 30, 2026. 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. 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. 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 the production of business in our 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 events, 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 were 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 cyberattacks; (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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806353919/en/

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