RLI Corp filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $1.94 billion, which rose 4.6% on the year before. That growth rate was down 4.0 percentage points on the rate a quarter earlier.
Profitability
The trailing net margin was 20.3%. Net income over the twelve months was $395.1 million, which rose 11.9% on the year before.
Cash flow
Operating cash flow over the twelve months was $539.5 million, down 7.9% on the year before. Capital spending was $7.9 million, or 0.4% of revenue. Free cash flow, operating cash flow less capital spending, was $531.5 million, down 8.6% on the year before. Free cash flow was 27.4% of revenue (the free-cash-flow margin), down 4.0 percentage points from a year earlier.
Share count
The average diluted share count fell 0.3% over the year.
Against its own history
Today’s free-cash-flow margin of 27.4% is higher than 44% of the company’s own past quarterly readings, which have ranged from 14.4% to 35.7%. Today’s twelve-month revenue growth rate of 4.6% is higher than 44% of the company’s own past quarterly readings, which have ranged from −17.3% to 83.5%.
What it means for value
In our model, growth 5 percentage points lower would lower the value by 25.6%, and 5 percentage points higher would raise it by 33.6%. A free-cash-flow margin 1 percentage point lower would lower it by 3.7%.
What to watch
The next filing will provide updated figures for revenue growth, allowing readers to observe whether the recent deceleration in the growth rate continues or reverses. It will also disclose the latest operating cash flow and capital spending numbers, offering a clearer view of the trajectory of the free-cash-flow margin. Additionally, the report will detail the average diluted share count, showing if the slight reduction observed over the past year persists in the new period.
