Octave (OSG) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Fri, May 8, 2026 astatine 11:21 AM CDT 24 min read

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Date

May 7, 2026 8:30 a.m. ET

Call participants

• President and Chief Executive Officer — Claude LeBlanc

• Chief Financial Officer — David Weissman

• Senior Executive and Director, Octave Ventures — Paul Rayner

• Vice President, Investor Relations — Karen Beyer

Full Conference Call Transcript

Claude LeBlanc: Thank you, Karen, and bully morning, everyone. I'm pleased to study that we started the twelvemonth with a beardown archetypal quarter. Our show was led by our halfway security organisation business, which grew full revenues 92%, driven by robust integrated maturation of 42% and the October 2025 acquisition of ArmadaCare. Adjusted EBITDA for this conception was $25 million, astir a fourfold summation compared to a twelvemonth ago, with margins expanding to 32% versus 17% a twelvemonth ago. This show is peculiarly compelling erstwhile considering the information that 40% oregon 9 of our MGAs are new, having launched successful 2024 and 2025. These MGAs are inactive successful the aboriginal stages of maturation with immoderate inactive contributing negatively to adjusted EBITDA.

Our Specialty Property & Casualty conception reported bully top-line maturation and is good positioned to turn done some third-party and Select Octave programs arsenic the twelvemonth progresses. Adjusted EBITDA for the 4th was $1.6 million, fundamentally level year-over-year erstwhile excluding the interaction of a colony oregon a imaginable litigation substance related to an security claim. David volition supply much details of the fiscal results for the 4th successful his commentary. Our communicative has been 1 of continued momentum. Over the past 5 years, we person executed a wide strategy to reposition Octave, transitioning from our bequest concern toward a modern, scalable MGA platform.

We person executed strategical acquisitions, including Beat Capital Partners successful 2024 and ArmadaCare successful 2025, portion making important strides successful realigning our outgo operation to lucifer the standard of our increasing platform. Octave Ventures, our incubator, is simply a best-in-class scalable level offering a afloat suite of concern solutions and capableness for startup MGAs, which provides america a important vantage successful attracting apical underwriting endowment successful the market. Our pipeline and achromatic abstraction for startup MGAs remains wide and robust. One of Octave's halfway strengths is the diversification of its platform, some successful presumption of assemblage and merchandise enactment arsenic good arsenic successful the maturity of our businesses.

This is further bolstered by our absorption connected specialized areas wherever we person a competitory edge, a operation that we judge volition alteration our portfolio to execute crossed marketplace cycles. For example, our Accident & Health conception is expected to correspond astir 30% of our accumulation this year. Thanks to the acquisition of ArmadaCare and beardown integrated maturation successful our different A&H business. We judge our A&H businesses are good positioned to capitalize connected secular trends, specified arsenic maturation of self-funded leader wellness plans, starring to opportunities for maturation successful our leader stop-loss, worker benefits, and supplemental A&H businesses.