AI Takeaway
Erie Indemnity (ERIE) delivered solid Q1 FY2026 results with revenue of $1.01B (+2.3% YoY), net income of $150.5M (+8.7% YoY), and operating margin expanding to 16.5%, though operating cash flow declined 22.2% to $91.9M.
Revenue
$1.01B
++2.28% YoY
Operating Income
$166.79M
++10.18% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
ERIE generated $1.01B in revenue for Q1 FY2026, up 2.3% from $989.4M in the prior-year period, reflecting steady growth in its management fee and service revenue base as the company continues to manage the Erie Insurance Exchange.
Source: Source: 10-Q Income Statement
Operating income rose 10.2% YoY to $166.8M, with operating margin improving from 15.3% to 16.5%, indicating improved cost efficiency and operating leverage relative to revenue growth.
Source: Source: 10-Q Income Statement
Net income grew 8.7% YoY to $150.5M, with net margin at 14.9%, suggesting that below-the-line items such as investment income or tax benefits contributed positively to profitability beyond operating performance.
Source: Source: 10-Q Income Statement
2 more insights available
Upgrade to unlockDespite strong net income growth of 8.7%, operating cash flow declined 22.2% YoY to $91.9M, creating a meaningful gap between reported earnings and cash generation. This divergence could signal unfavorable working capital dynamics or timing mismatches in receivables and payables that may persist.
Source: Source: 10-Q Cash Flow Statement
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Upgrade to unlockReported EPS of $2.88 versus the $3.12 analyst consensus — a -7.7% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.01B | $989.4M | +2.28% |
Operating Income | $166.79M | $151.38M | +10.18% |
Net Income | $150.47M | $138.42M | +8.71% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $3.38B | $2.97B | +13.76% |
Current Assets | $1.16B | $1.12B | +3.42% |
Total Liabilities | $1.02B | $900.88M | +13.57% |
Current Liabilities | $899.91M | $812.29M | +10.79% |
Stockholders' Equity | $2.35B | $2.07B | +13.84% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $91.89M | $118.12M | -22.20% |
Investing Cash Flow | $-88.73M | $-97.76M | +9.24% |
Financing Cash Flow | $-80.42M | $-58.38M | -37.77% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 16.5% | 15.3% | +1.18% |
Net Margin | 14.9% | — | — |
ROE | 6.4% | — | — |
ROA | 4.5% | — | — |
Current Ratio | $1.29 | — | — |
Debt to Equity | $0.435 | — | — |
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ERIE reported Q1 FY2026 revenue of $1.01B (+2.3% YoY) and net income of $150.5M (+8.7% YoY), with operating margin expanding to 16.5% from 15.3%. The results reflect solid profitability growth, though operating cash flow declined 22.2% to $91.9M, which investors should monitor.
The key takeaways are strong net income growth of 8.7% to $150.5M, operating margin expansion to 16.5%, and a 13.8% increase in total assets to $3.38B. However, the 22.2% decline in operating cash flow to $91.9M and a 10.8% rise in current liabilities are areas that warrant closer attention.
Yes, ERIE's revenue grew 2.3% YoY to $1.01B in Q1 FY2026, up from $989.4M in the prior-year period. This modest growth reflects the company's steady management fee income from administering the Erie Insurance Exchange.
Based on the financial data, key risks include the 22.2% decline in operating cash flow despite strong net income, rising current liabilities (+10.8% YoY) narrowing the liquidity cushion, and accelerating financing outflows of $80.4M. ERIE's heavy dependence on management fees from the Erie Insurance Exchange also represents a concentration risk.
ERIE's financial health appears solid overall, with a debt-to-equity ratio of 0.43, a current ratio of 1.29, and stockholders' equity of $2.35B (+13.8% YoY). However, the divergence between net income ($150.5M) and operating cash flow ($91.9M) is a watchpoint for investors assessing the quality of earnings.