Managed Premium(1) up 142.1% year-over-year to $1.2 billion;
Revenue up 90% to $55.2 million year-over-year;
Pre-Tax Income Increases to $28.4 million, up from $6.9 million
TAMPA, Fla.--(BUSINESS WIRE)--December 10, 2025--
Exzeo Group, Inc. (NYSE:XZO) today announced financial results for the quarter ended September 30, 2025.
"This quarter, our carrier partners delivered industry-leading financial results supported by their continued utilization of the Exzeo Platform, demonstrating the power of the platform and the scalability of our Insurance-as-a-Service model," said Paresh Patel, Exzeo's Chairman and Chief Executive Officer. "The result was a strong third-quarter performance for Exzeo, highlighted by exceptional revenue growth, meaningful margin expansion, and robust cash generation."
Third Quarter 2025 Highlights (Comparisons to Third Quarter 2024)
-- Revenue increased 90% to $55.2 million from $29.1 million, driven
primarily by growth in underwriting and management services from our
existing customer base and expansion of the scope of services provided to
customers at the beginning of 2025.
-- In the third quarter, a fifth insurance company joined the Exzeo platform,
with a sixth insurance company joining the platform in the fourth
quarter.
-- Gross profit increased to $33.8 million from $11.1 million, reflecting
strong operating leverage and improved revenue mix.
-- Operating income increased $20.6 million to $27.3 million from $6.7
million.
-- Net income increased to $21.2 million, or $0.25 per diluted share based
on 78.7 million diluted weighted-average shares outstanding, compared
with $5.3 million, or $0.06 per diluted share based on 78.7 million
diluted weighted-average shares outstanding in the prior period.
-- Adjusted EBITDA2 increased to $28.7 million from $8.8 million, and
Adjusted EBITDA margin2 increased to 54.9% from 32.1%, underscoring
scalability and cost efficiency.
-- Annual Recurring Revenue3 ("ARR") increased to $192.4 million as of
September 30, 2025, up from $117.6 million as of September 30, 2024,
highlighting strong growth in recurring revenue streams.
-- Managed Premium1 increased 142.1% to $1.2 billion from $496.3 million,
reflecting continued adoption of Exzeo's Insurance-as-a-Service platform.
Year-to-Date 2025 Highlights (Comparisons to Year-to-Date 2024)
-- Revenue increased 83% to $163.7 million from $89.4 million, driven
primarily by growth in underwriting and management services from our
existing customer base and expansion of the scope of services provided to
customers at the beginning of 2025.
-- Gross profit increased to $96.1 million from $34.5 million, reflecting
improved operating leverage and favorable revenue mix.
-- Operating income increased $56.8 million to $79.2 million from $22.4
million.
-- Net income from continuing operations increased to $60.8 million, or
$0.73 per diluted share based on 78.7 million diluted weighted-average
shares outstanding, compared with $14.4 million or $0.05 per diluted
share based on 77.1 million diluted weighted-average shares outstanding
in the prior period.
-- Adjusted EBITDA2 increased to $83.5 million from $27.2 million, and
Adjusted EBITDA margin2 increased to 54.0% from 32.4%.
-- Net cash provided by operating activities increased to $89.0 million from
$29.3 million, highlighting strong cash generation.
Liquidity and Capital Resources
As of September 30, 2025, Exzeo had:
-- Cash and cash equivalents of $140.9 million, compared with $54.5 million
as of December 31, 2024; and
-- Working capital of $68.7 million, compared to $10.9 million as of
December 31, 2024.
Conference Call Information:
Exzeo Group management will host a conference call today December 10, 2025 at 4:45 p.m. Eastern time (1:45 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: +1 (646) 307-1963
Conference ID: 3856391
Webcast Link
A replay of the event will also be available via the Investor Information section of the Exzeo Group website at investors.exzeo.com.
End Notes
1. Managed Premium is a key operating measure of Exzeo that is 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. Adjusted EBITDA, Adjusted Revenue, and Adjusted EBITDA Margin are
non-GAAP financial measures. Please see discussion of non-GAAP financial
measures at the end of this press release for more information.
3. Annual Recurring Revenue ("ARR") is a key operating measure of Exzeo that
is 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, and excludes
non-recurring revenue such as catastrophe services.
About Exzeo Group, Inc.
Exzeo Group, Inc. is a leading innovator in technology solutions that are 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 https://www.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 the our Quarterly Report on Form 10-Q for the quarter ended September 30, 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
(amounts in thousands, except share September 30, December 31,
and per share amounts) 2025 2024
-------------------------------------- --------------- ----------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 140,919 $ 54,502
Receivable from related parties 13,313 2,581
Prepaid expense 1,124 609
Current contract cost assets 5,379 6,397
Income taxes receivable -- 3,099
Other current assets 1,911 42
----------- ---------
Total current assets 162,646 67,230
Non-current assets:
Property and equipment, net 10,853 10,752
Operating lease right-of-use assets 7,170 8,052
Non-current contract cost assets 1,298 3,132
Deferred income taxes, net 13 --
Other assets 274 275
----------- ---------
Total non-current assets 19,608 22,211
----------- ---------
Total assets $ 182,254 $ 89,441
=========== =========
Liabilities and Stockholders' Equity
Current liabilities:
Current contract liabilities $ 73,102 $ 47,210
Commissions payable 3,954 4,320
Accounts payable and accrued
liabilities 11,646 2,134
(MORE TO FOLLOW) Dow Jones Newswires
December 10, 2025 16:15 ET (21:15 GMT)