KBRA Affirms Assured Guaranty's AA+ Insurance Financial Strength Ratings with Stable Outlook
In its August surveillance report affirming the AA+ ratings of AG, AGUK and AGE, KBRA cited:
'AG's rating reflects its substantial claims-paying resources, strong risk management platform, and leadership position in the financial guaranty market.'
'AG maintains a robust capital position, with claims-paying resources that provide meaningful protection against KBRA's modeled stress-case loss scenarios.'
'The merger of Assured Guaranty Municipal Corp. (AGM) into AG in 2024 has simplified the organizational structure and improved capital and regulatory efficiency.'
'AG's conservative investment approach, experienced management team, and diversified business platform support its ability to manage through credit cycles.'
'Municipal market insured penetration has increased and is currently at its highest levels since 2009.'
'AGUK and AGE are supported by a suite of intra-group financial arrangements with AG, including co-insurance, quota share and excess of loss reinsurance, as well as a net worth maintenance agreement. These agreements are key factors in KBRA's financial strength ratings for both entities.'
KBRA also stated that, 'In 2024, AG originated approximately $32 billion in gross par, its highest annual total in over a decade. Growth was led by strong U.S. municipal production and selective participation in international infrastructure and structured finance.'
'We are pleased that KBRA has continued to affirm the AA+ (Stable Outlook) rating for AG and its insurance subsidiaries, AGUK and AGE, citing our robust capital position and strong claims-paying resources along with the company's high-quality insured portfolio and experienced management team, which supports our ability to navigate through credit cycles,' said Dominic Frederico, President and CEO of Assured Guaranty. 'We believe that Assured Guaranty's success reflects the market's appreciation of our consistent record of profitability, diversified business strategy, disciplined underwriting and pricing and the capital-generating power of our proven business model.'
Cautionary Statement Regarding Forward-Looking Statements
Any forward-looking statements made in this press release, including those regarding growth opportunities for Assured Guaranty, demand for its product, and the strength of Assured Guaranty's capital position, reflect Assured Guaranty's current views with respect to future events and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These risks and uncertainties include, but are not limited to, difficulties executing Assured Guaranty's business strategy; those risks and uncertainties resulting from changes in rating agency models or opinions; the adequacy of Assured Guaranty's capital and its ability to manage such capital; Assured Guaranty's positioning for future global underwriting growth, unearned premiums, earnings power and financial strength; difficulties producing and sustaining new business; the benefits of Assured Guaranty's value proposition; adverse credit developments in Assured Guaranty's insured portfolio and the impact of those developments on rating agency models and opinions; insured losses in excess of those expected by Assured Guaranty or the failure of Assured Guaranty to realize loss recoveries that are assumed in its expected loss estimates for insurance exposures; other risks and uncertainties that have not been identified at this time, management's response to these factors, and other risk factors identified in Assured Guaranty's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which are made as of August 5, 2025. Assured Guaranty undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
About Assured Guaranty Ltd.
Assured Guaranty Ltd. is a publicly traded (NYSE: AGO), Bermuda-based holding company. Through its subsidiaries, Assured Guaranty provides credit enhancement products to the U.S. and non-U.S. public finance, infrastructure and structured finance markets. Assured Guaranty also participates in the asset management business through its ownership interest in Sound Point Capital Management, LP and certain of its investment management affiliates. More information on Assured Guaranty Ltd. and its subsidiaries can be found at AssuredGuaranty.com.
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Condensed Consolidated Statements of Operations (unaudited, in thousands, except share and per share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenue $ 35,764 $ 33,288 $ 71,838 $ 66,823 Cost of revenue, net (1) 17,187 14,363 35,019 28,947 Gross margin 18,577 18,925 36,819 37,876 Operating expenses: Research and development (1) 5,158 6,389 10,516 12,318 General and administrative (1) 9,411 9,245 20,240 20,676 Sales and marketing (1) 14,346 3,072 17,888 6,456 Total operating expenses 28,915 18,706 48,644 39,450 (Loss) income from operations (10,338 ) 219 (11,825 ) (1,574 ) Other income (expenses), net 889 (260 ) 1,213 (1,214 ) Loss before income taxes (9,449 ) (41 ) (10,612 ) (2,788 ) Benefit from (provision for) income taxes 661 (2,723 ) (1,345 ) (3,757 ) Net loss $ (8,788 ) $ (2,764 ) $ (11,957 ) $ (6,545 ) Net loss per share: Basic and diluted $ (0.10 ) $ (0.03 ) $ (0.13 ) $ (0.08 ) Weighted average shares of common stock used to compute net loss per share: (1) Includes stock-based compensation expense as follows: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Cost of revenue, net $ 2,770 $ 2,886 $ 5,809 $ 5,818 Research and development 2,018 3,144 4,421 5,894 General and administrative 1,178 1,703 2,749 3,405 Sales and marketing 961 648 1,938 788 Total stock-based compensation expense $ 6,927 $ 8,381 $ 14,917 $ 15,905 Expensify, Inc. Condensed Consolidated Statements of Cash Flows (unaudited, in thousands) Six Months Ended June 30, 2025 2024 Cash flows from operating activities: Net loss $ (11,957 ) $ (6,545 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 4,041 3,053 Reduction of operating lease right-of-use assets 279 273 Loss on impairment, receivables and sale or disposal of equipment 334 537 Stock-based compensation expense 14,917 15,905 Amortization of original issue discount and debt issuance costs 57 28 Deferred tax assets (4 ) (30 ) Changes in assets and liabilities: Accounts receivable, net 212 175 Settlement assets, net (11,614 ) (7,876 ) Prepaid expenses 9,565 1,831 Other current assets (2,186 ) 1,838 Other assets (19 ) (80 ) Accounts payable 1,336 (425 ) Accrued expenses and other liabilities 962 (1,105 ) Operating lease liabilities (281 ) 54 Settlement liabilities 8,248 4,887 Other liabilities (169 ) 268 Net cash provided by operating activities 13,721 12,788 Cash flows from investing activities: Purchases of property and equipment (17 ) — Software development costs (1,655 ) (4,867 ) Net cash used in investing activities (1,672 ) (4,867 ) Cash flows from financing activities: Principal payments of finance leases (68 ) (63 ) Principal payments of outstanding debt — (75 ) Payments for debt issuance costs (88 ) (71 ) Repurchases of early exercised stock options — (32 ) Proceeds from common stock purchased under Matching Plan 2,610 2,004 Proceeds from issuance of common stock upon exercise of stock options 117 53 Repurchase and retirement of common stock (3,026 ) — Net cash (used in) provided by financing activities (455 ) 1,816 Net increase in cash and cash equivalents and restricted cash 11,594 9,737 Cash and cash equivalents and restricted cash, beginning of period 90,834 96,658 Cash and cash equivalents and restricted cash, end of period $ 102,428 $ 106,395 Supplemental disclosure of cash flow information: Cash paid for interest $ — $ 903 Cash paid for income taxes $ 4,418 $ 2,439 Noncash investing and financing items: Stock-based compensation capitalized as software development costs $ 775 $ 1,561 Purchases of property and equipment and capitalized software in accounts payable and accrued expenses $ 31 $ 290 Fair value of common stock issued to settle liability-classified restricted stock units $ 343 $ — Reconciliation of cash and cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets Cash and cash equivalents $ 60,519 $ 53,234 Restricted cash included in other current assets 21,132 30,591 Total cash, cash equivalents and restricted cash $ 102,428 $ 106,395 Three Months Ended June 30, 2025 2024 Net loss $ (8,788 ) $ (2,764 ) Net loss margin (25 )% (8 )% Add: (Benefit from) provision for income taxes (661 ) 2,723 Other (income) expenses, net (889 ) 260 Depreciation and amortization 2,018 1,590 Stock-based compensation expense 6,927 8,381 Adjusted EBITDA $ (1,393 ) $ 10,190 Adjusted EBITDA margin (4 )% 31 % Non-GAAP Net Income and Non-GAAP Net Income Margin Three Months Ended June 30, 2025 2024 Net loss $ (8,788 ) $ (2,764 ) Net loss margin (25 )% (8 )% Add: Stock-based compensation expense 6,927 8,381 Non-GAAP net (loss) income $ (1,861 ) $ 5,617 Non-GAAP net (loss) income margin (5 )% 17 % Free Cash Flow and Free Cash Flow Margin Three Months Ended June 30, 2025 2024 Net cash provided by operating activities $ 8,916 $ 9,317 Operating cash flow margin 25 % 28 % (Increase) decrease in changes in assets and liabilities: Settlement assets (603 ) 1,756 Settlement liabilities (828 ) (3,317 ) Less: Purchases of property and equipment (17 ) — Software development costs (1,157 ) (2,038 ) Free cash flow $ 6,311 $ 5,718 Free cash flow margin 18 % 17 %
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It said it expects revenue to drop as much as 11 per cent in the current quarter from a year earlier, while tariffs are dragging on its profitability. The company cited 'continued uncertainty from evolving global trade policy and related pressures around the consumer.' Eli Lilly dropped 14.1 per cent even though the drugmaker likewise reported a stronger profit for the latest quarter than analysts expected. Analysts said some investors were disappointed with results that Lilly provided for a late-stage study of its potential pill version of the popular weight-loss drug Zepbound. Intel sank 3.1 per cent after Trump called for its CEO to resign, while accusing him of being 'highly CONFLICTED,' though he gave no evidence. Apple helped keep the market's losses in check, as it rose on hopes that its massive size can help it navigate Trump's economy. Its stock climbed 3.2 per cent after CEO Tim Cook joined Trump at the White House on Wednesday to say it's increasing its investment in U.S. manufacturing by an additional US$100 billion over the next four years. Trump also announced a 100 per cent tariff on imported computer chips, but he added 'if you're building in the United States of America, there's no charge.' 'Large, cash-rich companies that can afford to build in America will be the ones to benefit the most,' said Brian Jacobsen, chief economist at Annex Wealth Management. 'It's survival of the biggest.' DoorDash added five per cent after the delivery app topped Wall Street's profit expectations for the latest quarter. It attracted new customers and saw the total number of orders increase. Duolingo, the language-learning app, jumped 13.7 per cent after it crushed Wall Street's expectations. The company said its subscription revenue grew 46 per cent over the same period last year. All told the S&P 500 edged down by 5.06 points to 6,340.00. The Dow Jones Industrial Average dipped 224.48 to 43,968.64, and the Nasdaq composite rose 73.27 to 21,242.70. In stock markets abroad, indexes rose across much of Europe and Asia. Stocks climbed 0.2 per cent in Shanghai and 0.7 per cent in Hong Kong after China reported that its exports picked up in July, helped by a flurry of shipments as businesses took advantage of a pause in Trump's tariff war with Beijing. Japan's Nikkei 225 rose 0.6 per cent. Toyota Motor's stock fell after it cut its full-year earnings forecasts largely because of Trump's tariffs, but Sony rose after the entertainment and electronics company indicated it's taking less damage from the tariffs than it had expected. In the bond market, the yield on the 10-year Treasury rose to 4.23 per cent from 4.22 per cent late Wednesday after the latest reports on the U.S. economy came in mixed. One said that slightly more U.S. workers applied for unemployment benefits last week. That could be an indication of rising layoffs, but the number remains within its recent range. 'There is nothing to see here!' according to Carl Weinberg, chief economist at High Frequency Economics. 'These are not nearly recession readings.' A separate report said that productivity for U.S. workers improved by more during the spring than economists expected. That could help the U.S. economy grow without adding more pressure on inflation. And that's particularly important when Trump's tariffs look set to increase prices for all kinds of things that U.S. households and businesses buy. ___ Stan Choe, The Associated Press AP business writers Teresa Cerojano and Matt Ott contributed.
