Managed Premium(1) up 139% year-over-year to $1.39 billion;
Revenue up 62% year-over-year to $217.0 million;
Pre-Tax Income increased 213% to $110.3 million
TAMPA, Fla.--(BUSINESS WIRE)--February 25, 2026--
Exzeo Group, Inc. (NYSE:XZO) today announced financial results for the fourth quarter and full year ended December 31, 2025.
"Our full year performance underscores the strength and scalability of the Exzeo Platform," said Paresh Patel, Exzeo's Chairman and Chief Executive Officer. "Since completing our IPO, we've deepened our relationships with existing carrier partners and expanded with new customers, while delivering strong revenue growth and solid profitability."
Fourth Quarter 2025 Highlights (Comparisons to Fourth Quarter 2024)
-- Revenue increased 20% to $53.3 million from $44.5 million, driven
primarily by growth in underwriting and management services from the
expansion in the scope of services provided at the beginning of 2025.
-- Net income from continuing operations was $22.0 million, and basic and
diluted earnings per share2 were $0.25, compared with $11.7 million and
$0.15 in the prior year period.
-- Managed Premium increased 139% to $1.39 billion from $580.3 million,
reflecting continued adoption of Exzeo's Insurance-as-a-Service
platform.
-- Annual Recurring Revenue3 increased to $214.9 million as of December
31, 2025, up from $138.5 million as of December 31, 2024, highlighting
strong growth in recurring revenue streams.
-- Adjusted EBITDA4 increased to $28.0 million from $16.8 million, and
Adjusted EBITDA Margin4 increased to 55% from 46%, underscoring
scalability and cost efficiency.
-- A sixth insurance company joined the Exzeo platform in the fourth
quarter.
Full Year 2025 Highlights (Comparisons to Full Year 2024)
-- Revenue increased 62% to $217.0 million from $133.9 million, driven
primarily by growth in underwriting and management services from our
existing customer base and expansion in the scope of services provided to
customers at the beginning of 2025.
-- Net income from continuing operations was $82.7 million, and basic and
diluted earnings per share were $0.99, compared with $26.1 million, and
$0.20 in the prior year.
-- Adjusted EBITDA increased to $111.5 million from $44.0 million and
Adjusted EBITDA Margin increased to 54% from 37%.
-- Cash from operating activities increased to $100.3 million from $49.3
million. As a result, Free Cash Flow4 increased to $97.5 million from
$45.9 million.
Liquidity and Capital Resources
As of December 31, 2025, Exzeo had:
-- Cash and cash equivalents of $305.4 million, compared with $54.5
million as of December 31, 2024; and
-- Working capital of $241.4 million, compared to $10.9 million as of
December 31, 2024.
Conference Call Information:
Exzeo Group management will host a conference call today, February 25, 2026, at 5:45 p.m. Eastern time (2:45 p.m. Pacific time). Interested parties can listen to the live presentation by dialing the listen-only number below or by using the webcast link below or on the Investor Information section of the company's website at investors.exzeo.com
Toll-Free: (800) 715-9871
International Toll: (646) 307-1963
Conference ID: 2747849
Webcast Link
A replay of the call will be available after 8:00 p.m. Eastern Time on the same day as the call on the company's Investor Relations website at investors.exzeo.com.
End Notes
1. Managed Premium is a key operating measure defined as the aggregate
gross dollar value of in-force premiums processed, managed, or
administered by Exzeo's software solutions as of period end, excluding
associated policy fee income.
2. Earnings per share is calculated in accordance with GAAP. Certain
unvested restricted stock awards are considered participating securities
because they carry non-forfeitable dividend and voting rights and share
in the Company's earnings. Refer to Basic and Diluted Per Share table for
additional information.
3. Annual Recurring Revenue is a key operating measure defined as the sum
of each customer's managed premium multiplied by its contractual fee rate,
plus any applicable policy fee income associated with managed policies,
as of the period end date, excluding non-recurring revenue such as
catastrophe services.
4. Adjusted EBITDA, Adjusted Revenue, Adjusted EBITDA Margin, and Free
Cash Flow are non-GAAP financial measures. Please see discussion of
non-GAAP financial measures at the end of this press release for more
information.
About Exzeo Group, Inc.
Exzeo Group is a leading innovator in technology solutions purpose-built for property and casualty (P&C) insurance carriers, with a strong focus on the expansive homeowners insurance market. Through its completely internally developed "Insurance-as-a-Service" platform, Exzeo delivers a comprehensive suite of digital tools and services that streamline every aspect of carrier and agent operations--from quoting and underwriting to policy administration, claims handling, data analytics, and financial reporting. By integrating advanced technology with deep industry expertise, Exzeo empowers P&C insurers to enhance underwriting precision, drive operational efficiency, and achieve superior performance across the insurance value chain.
For more information, please visit exzeo.com.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical facts included in this release, are forward-looking statements. Words such as "anticipate," "estimate," "expect," "intend," "plan," "confident," "prospects" and "project" and other similar words and expressions are intended to signify forward-looking statements, and these forward-looking statements may include, without limitation, statements regarding growth strategies and future performance and profitability. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties, which may include, without limitation, our ability to maintain our current level of profitability, the regulated environment in which we operate, the ownership of a controlling interest in our common stock by HCI Group, Inc., and the current dependence on HCI Group, Inc. for substantially all of our revenues. These and other risks and uncertainties are identified in our filings with the Securities and Exchange Commission, including those factors discussed under the captions entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2025, when filed. Should any risks or uncertainties develop into actual events, these developments could have material adverse effects on the company's business, financial condition and results of operations. Exzeo Group, Inc. disclaims all obligations to update any forward-looking statements.
EXZEO GROUP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
As of December 31,
------------------------
(in thousands, except share and per share
amounts) 2025 2024
--------------------------------------------- ----------- --------
Assets:
Current assets:
Cash and cash equivalents $ 305,372 $ 54,502
Accounts receivable 2,906 --
Receivable from related parties 11,295 2,581
Prepaid expense 1,483 609
Current contract cost assets 4,722 6,397
Income taxes receivable -- 3,099
Other current assets 43 42
------- -------
Total current assets 325,821 67,230
Non-current assets:
Property and equipment, net 10,662 10,752
Operating lease right-of-use assets 6,884 8,052
Non-current contract cost assets 1,118 3,132
Deferred income taxes, net 2,975 --
Other assets 274 275
------- -------
Total non-current assets 21,913 22,211
------- -------
Total assets $ 347,734 $ 89,441
======= =======
Liabilities and Stockholders' Equity:
Current liabilities:
Current contract liabilities $ 70,893 $ 47,210
Commissions payable 4,605 4,320
Accounts payable and accrued liabilities 2,950 2,134
Operating lease liabilities 2,413 2,132
Income taxes payable 2,455 --
Payable to related parties 1,073 580
------- -------
Total current liabilities 84,389 56,376
------- -------
Non-current liabilities:
Non-current contract liabilities 3,567 8,366
Operating lease liabilities 4,832 6,219
Deferred income taxes, net -- 2,121
Other liabilities 790 852
------- -------
Total non-current liabilities 9,189 17,558
------- -------
Total liabilities 93,578 73,934
------- -------
Commitments and contingencies
Stockholders' equity:
Common stock ($0.001 par value, 184,000,000
shares authorized, 90,926,720 and
82,810,089 shares issued and outstanding as
of December 31, 2025 and 2024,
respectively) 91 83
Additional paid-in capital 228,647 72,755
Retained earnings (accumulated deficit) 25,418 (57,331)
------- -------
Total stockholders' equity 254,156 15,507
------- -------
Total liabilities and stockholders'
equity $ 347,734 $ 89,441
======= =======
EXZEO GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
Three Months
Ended December Years Ended December
31, 31,
----------------- ---------------------
(in thousands,
except per
share amounts) 2025 2024 2025 2024
--------------- ------- ------- -------- --------
Revenue $53,316 $44,533 $216,980 $133,948
Cost of revenue 18,442 25,831 85,957 80,739
------ ------ ------- -------
Gross profit 34,874 18,702 131,023 53,209
------ ------ ------- -------
Operating
expenses:
Selling, general
and
administrative 6,158 1,537 15,724 8,343
Research and
development 1,761 1,496 8,830 6,514
Depreciation and
amortization 141 90 479 335
------ ------ ------- -------
Total operating
expenses 8,060 3,123 25,033 15,192
------ ------ ------- -------
Operating
income 26,814 15,579 105,990 38,017
------ ------ ------- -------
Investment
income 2,039 209 4,302 548
Interest expense -- (8) -- (3,329)
------ ------ ------- -------
Income from
continuing
operations,
before taxes $28,853 $15,780 $110,292 $ 35,236
Income tax
expense from
continuing
operations 6,869 4,080 27,543 9,168
------ ------ ------- -------
Income from
continuing
operations,
after taxes $21,984 $11,700 $ 82,749 $ 26,068
====== ====== ======= =======
Income from
discontinued
operations,
before taxes $ -- $ -- $ -- $ 25,854
Income tax
expense from
discontinued
operations -- -- -- 6,601
------ ------ ------- -------
Income from
discontinued
operations,
after taxes $ -- $ -- $ -- $ 19,253
====== ====== ======= =======
Net income $21,984 $11,700 $ 82,749 $ 45,321
Dividends on
preferred
stock -- -- -- (10,149)
------ ------ ------- -------
Net income
attributable to
common
stockholders $21,984 $11,700 $ 82,749 $ 35,172
====== ====== ======= =======
Basic and
diluted
earnings per
share from
continuing
operations $ 0.25 $ 0.15 $ 0.99 $ 0.20
Basic and
diluted
earnings per
share from
discontinued
operations $ -- $ -- $ -- $ 0.24
Basic and
diluted
earnings per
share $ 0.25 $ 0.15 $ 0.99 $ 0.44
EXZEO GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income
(Unaudited)
Three Months
Ended December Years Ended
31, December 31,
---------------- -------------------
(in thousands) 2025 2024 2025 2024
-------------------- ------- ------- ------- -------
Net income $21,984 $11,700 $82,749 $45,321
------ ------ ------ ------
Other comprehensive
income:
Change in
unrealized gains
on investments:
Net unrealized
gains arising
during the
period -- -- -- 307
------ ------ ------ ------
Net change in
unrealized gains -- -- -- 307
Deferred income
taxes -- -- -- (77)
------ ------ ------ ------
Other
comprehensive
income -- -- -- 230
------ ------ ------ ------
Comprehensive
income $21,984 $11,700 $82,749 $45,551
====== ====== ====== ======
EXZEO GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
Years Ended December 31,
------------------------------
(in thousands) 2025 2024
------------------------------------- ------------- -----------
Operating activities:
Net income $ 82,749 $ 45,321
Less: Net income from discontinued
operations -- (19,253)
--------- ----------
Net income from continuing
operations 82,749 26,068
Adjustments to reconcile net income
to cash provided by operating
activities:
Stock-based compensation 2,636 3,379
Depreciation and amortization 2,934 2,361
Deferred income taxes (5,096) 1,525
Foreign currency remeasurement
losses 173 132
Changes in operating assets and
liabilities:
Accounts receivable (2,906) --
Receivable from related parties (8,221) (1,836)
Prepaid expenses (874) (157)
Contract cost assets 3,689 (3,083)
Income taxes payable 5,554 4,224
Contract liabilities 18,884 15,496
Commissions payable 285 407
Accounts payable and accrued
liabilities 434 442
Other liabilities (33) 339
Other assets (1) (125)
Operating lease 91 94
--------- ----------
Cash provided by operating
activities 100,298 49,266
--------- ----------
Investing activities:
Capital expenditures (2,844) (3,334)
--------- ----------
Cash used in investing activities (2,844) (3,334)
--------- ----------
Financing activities:
Redemption of redeemable preferred
stock -- (100,000)
Proceeds from issuance of notes
payable, related party -- 100,000
Proceeds from initial public
offering, net 156,205 --
Payments of issuance costs (1,069) --
Repurchase of common stock (1,490) (481)
Repayment of long-term debt -- (2,994)
Dividends paid on redeemable
preferred stock -- (2,923)
--------- ----------
Cash provided by (used in)
financing activities 153,646 (6,398)
--------- ----------
Effect of exchange rate changes on
cash (230) (87)
--------- ----------
Cash provided by continuing operations 250,870 39,447
--------- ----------
Cash flows from discontinued
operations:
Cash provided by operating
activities from discontinued
operations -- 142,645
--------- ----------
Cash used in investing activities
from discontinued operations -- (189,186)
--------- ----------
Cash provided by (used in)
discontinued operations -- (46,541)
--------- ----------
Increase (decrease) in cash, cash
equivalents, and restricted cash 250,870 (7,094)
--------- ----------
Cash, cash equivalents, and restricted
cash at beginning of period -
continuing operations 54,502 15,055
Cash, cash equivalents, and restricted
cash at beginning of period -
discontinued operations -- 46,541
--------- ----------
Cash, cash equivalents, and restricted
cash at beginning of period 54,502 61,596
--------- ----------
Cash, cash equivalents, and restricted
cash at end of period - continuing
operations 305,372 54,502
Cash, cash equivalents, and
restricted cash at end of period -
discontinued operations -- --
--------- ----------
Cash, cash equivalents, and restricted
cash at end of period $ 305,372 $ 54,502
========= ==========
Non-cash investing and financing
activities:
Extinguishment of notes payable $ -- $ 155,000
========= ==========
Capital contribution from parent $ 34 $ 2,615
========= ==========
Supplemental disclosure of cash flow
information:
Cash paid for income taxes $ 34,223 $ 14,261
========= ==========
Cash paid for interest $ -- $ 3,472
========= ==========
EXZEO GROUP, INC. AND SUBSIDIARIES
Basic and Diluted Earnings Per Share
(Unaudited)
A summary of the numerator and denominator of basic and diluted
earnings per common share from continuing operations is as follows:
Three Months Ended Years Ended December
December 31, 31,
----------------------- -----------------------
(in thousands,
except per share
amounts) 2025 2024 2025 2024
----------------- ----------- ----------- ----------- -----------
Numerator:
Income from
continuing
operations, after
tax $21,984 $11,700 $82,749 $ 26,068
Less: Dividends
on preferred
stock -- -- -- (10,149)
Less: Income
attributable to
participating
securities from
continuing
operations (809) (249) (3,751) (550)
------ ------ ------ -------
Income
attributable to
common
stockholders from
continuing
operations $21,175 $11,451 $78,998 $ 15,369
Denominator:
Weighted-average
basic shares
outstanding 84,443 78,690 80,171 77,494
Weighted-average
diluted shares
outstanding 84,443 78,690 80,171 77,494
Basic and diluted
earnings per
share from
continuing
operations $ 0.25 $ 0.15 $ 0.99 $ 0.20
Use of Non-GAAP Financial Measures (Unaudited)
In addition to results determined in accordance with GAAP, we use certain non-GAAP financial measures to evaluate our operating performance and make strategic decisions. These non-GAAP financial measures include Adjusted EBITDA, Adjusted Revenue, Adjusted EBITDA Margin and Free Cash Flow. Management believes these measures provide useful supplemental information for investors by facilitating comparisons of performance across reporting periods and with other companies in the industry, many of which use similar non-GAAP financial measures.
However, these non-GAAP financial measures are not prepared in accordance with GAAP, are not based on a standardized methodology, and may not be comparable to similarly titled measures used by other companies. They should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. These measures exclude items that may be significant to an understanding of our financial condition and results of operations under GAAP. The use of non-GAAP financial measures involves management judgment regarding which items to exclude or include. Accordingly, these measures have limitations and should be viewed as a supplement to, not a replacement for, our GAAP results. Management urges investors to review the reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures included in this report and not to rely on any single financial measure to evaluate our business.
Adjusted EBITDA
We define Adjusted EBITDA as Income from continuing operations, after taxes adjusted to exclude income tax expense, interest expense, investment income, depreciation and amortization, and stock-based compensation expense. Management uses Adjusted EBITDA as a key measure of operating performance and to assess the results of the business excluding certain items that are not considered indicative of core operating results. Adjusted EBITDA should not be viewed in isolation or as a substitute for net income calculated in accordance with GAAP, and other companies may define Adjusted EBITDA differently.
The reconciliation of Income from continuing operations, after taxes to Adjusted EBITDA is as follows:
Three Months Ended
December 31, Years Ended December 31,
--------------------- ------------------------
(in thousands) 2025 2024 2025 2024
--------------- ----------- -------- ------------ ----------
Income from
continuing
operations,
after taxes $21,984 $11,700 $ 82,749 $26,068
Income tax
expense 6,869 4,080 27,543 9,168
Interest
expense -- 8 -- 3,329
Investment
income (2,039) (209) (4,302) (548)
Depreciation
and
amortization 726 659 2,891 2,562
Stock-based
compensation 476 551 2,636 3,379
------ ------ ------- ------
Adjusted EBITDA $28,016 $16,789 $111,517 $43,958
====== ====== ======= ======
Adjusted Revenue
We define Adjusted Revenue as the portion of total revenue earned through services delivered directly via our proprietary platform technology. This metric excludes revenue associated with services primarily within claims management that are outsourced to a subsidiary of HCI. Although this revenue is recognized on a gross basis under GAAP because we are considered the principal in the transaction, the economics are largely neutral, as the related costs incurred from outsourced service providers closely match the revenue recognized. Management believes Adjusted Revenue provides investors with useful insight into the performance and scalability of our core platform services and reflects the revenue generated from internally delivered operations, excluding variability associated with outsourced service arrangements. This non-GAAP measure should not be considered in isolation or as a substitute for total revenue or any other performance measure calculated in accordance with GAAP.
The reconciliation of Revenue to Adjusted Revenue is as follows:
Three Months Ended Years Ended
December 31, December 31,
------------------ -------------------
(in thousands) 2025 2024 2025 2024
--------------- ------- --------- -------- ---------
Revenue $53,316 $ 44,533 $216,980 $ 133,948
Less:
Outsourced
claims fees 2,272 8,338 11,167 13,779
------ -------- ------- --------
Adjusted
Revenue $51,044 $ 36,195 $205,813 $ 120,169
====== ======== ======= ========
Adjusted EBITDA Margin
We define Adjusted EBITDA Margin as Adjusted EBITDA expressed as a percentage of Adjusted Revenue. This non-GAAP measure provides management and investors with additional insight into the Company's operating efficiency and the scalability of our business model, as it reflects our progress toward long-term profitability.
The reconciliation of Adjusted EBITDA Margin for the periods presented is as follows:
Three Months Ended Years Ended December
December 31, 31,
--------------------- -----------------------
(in thousands,
except
percentages) 2025 2024 2025 2024
--------------- ------- -------- -------- ---------
Numerator:
Adjusted
EBITDA $28,016 16,789 $111,517 $ 43,958
Denominator:
Adjusted
Revenue 51,044 36,195 205,813 120,169
Adjusted EBITDA
Margin 54.9% 46.4% 54.2% 36.6%
Free Cash Flow
We define Free Cash Flow as net cash provided by operating activities less capital expenditures during the period. We believe information regarding Free Cash Flow provides useful information to management and investors because it is an indicator of strength and performance of our business operations after funding capital expenditures. Capital expenditures consist of capitalized software development costs and costs relating to property and equipment, such as computer hardware, office furniture and equipment, and leasehold improvements. Free Cash Flow should not be considered an alternative to net cash provided by operating activities, which is the most directly comparable GAAP measure, or as a measure of liquidity prepared in accordance with GAAP and may not be comparable to similar measures used by other companies.
The reconciliation of Free Cash Flow for the periods presented is as follows:
Years Ended December 31,
----------------------------
(in thousands) 2025 2024
------------------------------------- ---------------- ----------
Cash provided by operating activities $ 100,298 $ 49,266
Less: Capital expenditures 2,844 3,334
------------ ---------
Free Cash Flow $ 97,454 $ 45,932
============ =========
View source version on businesswire.com: https://www.businesswire.com/news/home/20260225595707/en/
CONTACT: Investor and Media Contact
Company Contact:
Bill Broomall, CFA
Vice President, Investor Relations
Exzeo Group, Inc.
wbroomall@exzeo.com
Investor Relations Contact:
Matt Glover and Clay Liolios
Gateway Group, Inc.
Tel: (949) 574-3860
XZO@gateway-grp.com
(END) Dow Jones Newswires
February 25, 2026 16:58 ET (21:58 GMT)