Kinsale Capital Group, Inc.'s 10-Q: revenue up 8.3% over twelve months

Kinsale Capital Group, Inc. filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $1.95 billion, which rose 8.3% on the year before. That growth rate was down 7.5 percentage points on the rate a quarter earlier.

Growth and profit

Profits are growing faster than sales. Net income over the twelve months was $525.2 million, which rose 10.8% on the year before. This outpaced the 8.3% increase in revenue. The trailing net margin was 26.9%.

Cash flow

Cash generation is lagging behind profit growth. Operating cash flow over the twelve months was $996.3 million, down 1.9% on the year before. This decline occurred despite the rise in net income. Capital spending was $23.2 million, or 1.2% of revenue. Free cash flow, operating cash flow less capital spending, was $973.0 million, up 1.2% on the year before. The free-cash-flow margin was 49.8% of revenue, down 3.5 percentage points from a year earlier. The average diluted share count fell 1.8% over the year.

In context

Current performance sits near the lower end of the company’s historical range. Today’s free-cash-flow margin of 49.8% is higher than 27% of the company’s own past quarterly readings, which have ranged from 41.3% to 72.6%. This places the current margin in the lower third of its historical distribution. Today’s twelve-month revenue growth rate of 8.3% is higher than 0% of the company’s own past quarterly readings, which have ranged from 15.8% to 75.7%. The current growth rate is below every previous quarterly reading in the company’s history.

What it means for value

Our model shows high sensitivity to growth assumptions. In our model, growth 5 percentage points lower would lower the value by 24.8%, and 5 percentage points higher would raise it by 32.3%. A free-cash-flow margin 1 percentage point lower would lower it by 2.0%.

What to watch

The next filing will show whether the slowdown in revenue growth continues. It will also reveal if the decline in operating cash flow persists despite the rise in net income. Investors should look for changes in the free-cash-flow margin to see if the gap between profit and cash generation widens or narrows.