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Sep 30, 2025
Ambac Q3 2025 Earnings Report
Ambac reported a deeper net loss in Q3 2025 as revenue declined and expenses rose due to acquisitions and restructuring costs.
Key Takeaways
Ambac's Q3 2025 saw a decline in revenue and increased losses compared to the same period last year. Higher general and administrative expenses and amortization costs weighed on performance despite strong growth in its Insurance Distribution segment.
Net loss attributable to shareholders was $112.6 million in Q3 2025, including discontinued operations.
Revenue declined 5% year-over-year to $66.6 million.
Adjusted EBITDA to shareholders was a loss of $2.86 million compared to a gain of $1.9 million last year.
Total specialty P&C insurance production grew 32% year-over-year to $343 million.
Revenue by Segment
Forward Guidance
Ambac expects improved combined ratios at Everspan as scaling efforts continue and integration of recent acquisitions like ArmadaCare advances. Focus remains on profitability and growth within the specialty P&C and insurance distribution platforms.
Positive Outlook
- Total specialty P&C production grew 32% YoY in Q3 2025.
- Insurance Distribution revenue increased 80%, with 40% organic growth.
- Adjusted EBITDA in Insurance Distribution rose to $10 million, up 272%.
- Ambac repurchased over 3.1 million shares post-quarter at $8.48 average price.
- Company exited legacy financial guarantee business, refocusing on core segments.
Challenges Ahead
- Net premiums written in Specialty P&C dropped 46% YoY.
- Combined ratio in Specialty P&C worsened to 112.9%.
- Adjusted EBITDA to shareholders was negative at -$2.86 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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