Managed Premium(1) of $1.40 billion;
Pre-Tax Income of $31.4 million;
Earnings per share(2) of $0.26
TAMPA, Fla.--(BUSINESS WIRE)--August 06, 2026--
Exzeo Group, Inc. (NYSE:XZO) today announced financial results for the second quarter ended June 30, 2026.
"Our second quarter results highlight both the quality of our financial model and the growing traction of the Exzeo Platform. We are expanding the reach of the Exzeo Platform through new carrier relationships, broader product offerings, and enhanced capabilities. The momentum we're seeing across the platform reinforces our confidence in the significant opportunity ahead," said Paresh Patel, Exzeo's Chairman and Chief Executive Officer. "Earlier today, we announced the launch of Exzeo Ventures, a new division dedicated to developing AI-native products, services, and businesses that address unmet customer needs. AI is fundamentally expanding what's possible, and we believe the greatest long-term value will be created by companies that build entirely new businesses rather than simply making existing ones more efficient."
Second Quarter 2026 Highlights (Comparisons to Second Quarter 2025)
-- Revenue increased to $57.8 million from $56.1 million, driven primarily
by growth in underwriting and management services from new and existing
customers.
-- Net income increased to $23.3 million from $21.7 million. Basic and
diluted earnings per share were $0.26 in both periods.
-- Managed Premium increased to $1.40 billion from $1.22 billion,
reflecting continued growth in managed policies from new and existing
customers on Exzeo's platform.
-- Annual Recurring Revenue3 increased to $210.7 million from $195.3
million in the prior year period.
-- Adjusted EBITDA4 increased to $29.9 million from $29.6 million.
Adjusted EBITDA Margin4 was 53% compared with 57% in the prior year, as
the Company continued to invest in strategic initiatives to support
long-term growth, including expanding its workforce and enhancing
operational infrastructure.
-- Cash, cash equivalents and investments totaled $333.8 million,
comprised of $136.7 million in cash and cash equivalents and $197.1
million in available-for-sale fixed-maturity securities.
-- During the second quarter, 726,828 shares of common stock were
repurchased for approximately $10.0 million under a $12.0 million Share
Repurchase Program5. Following the completion of the program in July
2026, aggregate repurchases totaled 834,250 shares for approximately
$12.0 million.
Year-to-Date 2026 Highlights (Comparisons to Year-to-Date 2025)
-- Revenue increased to $113.3 million from $108.5 million, driven
primarily by growth in underwriting and management services from new and
existing customers.
-- Net income increased to $43.7 million from $39.6 million, and basic and
diluted earnings per share were $0.48 in both periods.
-- Adjusted EBITDA increased to $56.5 million from $54.8 million,
reflecting continued business growth. Adjusted EBITDA Margin was 51%
compared with 54% in the prior year period, as the Company continued to
invest in strategic initiatives to support long-term growth, including
expanding its workforce and enhancing operational infrastructure.
-- Net cash provided by operating activities was $40.9 million compared to
$57.5 million. The decrease was primarily due to the timing of business
growth and associated cash collections, partially offset by higher net
income. Free Cash Flow4 was $40.4 million compared to $56.3 million in
the prior year period.
Conference Call Information:
Exzeo Group management will host a conference call today, August 6, 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 number below or by clicking the listen-only webcast link available here or on the Investor Information section of the Company's website at investors.exzeo.com.
Date: Thursday, August 6, 2026
Time: 5:45 p.m. Eastern Time (2:45 p.m. Pacific Time)
U.S. Toll-Free: +1 (833) 461-5787
Canada Local: +1 (365) 657-4084
UK Toll-Free: +44 (808) 196-8935
Conference ID: 951 201 044
All Dial-In Numbers
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 Investor Information section of the Company's 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 Earnings 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 nonrecurring 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.
5. Share Repurchase Program was the program which the Board of Directors
authorized the repurchase of up to $12.0 million of the Exzeo's common
stock.
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," "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 Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, 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
June 30, December 31,
------------- --------------
(in thousands, except share and per
share amounts) 2026 2025
------------------------------------- ------------- --------------
(Unaudited)
Assets:
Current assets:
Cash and cash equivalents $ 136,731 $ 305,372
Accounts receivable 1,785 2,906
Receivable from related parties 20,379 11,295
Prepaid expense 1,512 1,483
Current contract cost assets 5,169 4,722
Other current assets 4,127 43
--------- ----------
Total current assets 169,703 325,821
Non-current assets:
Fixed-maturity securities,
available-for-sale, at fair value
(amortized cost: $198,426 and $0,
respectively, and allowance for
credit losses: $0 and $0,
respectively) 197,072 --
Property and equipment, net 9,732 10,662
Operating lease right-of-use assets 6,263 6,884
Non-current contract cost assets 272 1,118
Deferred income taxes, net 2,400 2,975
Other assets 341 274
--------- ----------
Total non-current assets 216,080 21,913
--------- ----------
Total assets $ 385,783 $ 347,734
========= ==========
Liabilities and Shareholders' Equity:
Current liabilities:
Current contract liabilities $ 74,539 $ 70,893
Commissions payable 4,794 4,605
Accounts payable and accrued
liabilities 8,358 2,950
Operating lease liabilities 2,482 2,413
Income taxes payable 411 2,455
Payable to related parties 1,151 1,073
--------- ----------
Total current liabilities 91,735 84,389
--------- ----------
Non-current liabilities:
Non-current contract liabilities 829 3,567
Operating lease liabilities 4,140 4,832
Other liabilities 908 790
--------- ----------
Total non-current liabilities 5,877 9,189
--------- ----------
Total liabilities 97,612 93,578
--------- ----------
Commitments and contingencies
Shareholders' equity:
Common stock ($0.001 par value,
350,000,000 shares authorized,
90,200,252 and 90,926,720 shares
issued and outstanding as of June
30, 2026 and December 31, 2025,
respectively) 90 91
Additional paid-in capital 220,003 228,647
Retained earnings 69,093 25,418
Accumulated other comprehensive
loss (1,015) --
--------- ----------
Total shareholders' equity 288,171 254,156
--------- ----------
Total liabilities and
shareholders' equity $ 385,783 $ 347,734
========= ==========
EXZEO GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
Three Months
Ended Six Months Ended
June 30, June 30,
---------------- ------------------
(in thousands,
except per
share amounts) 2026 2025 2026 2025
--------------- ------- ------- -------- --------
Revenue $57,787 $56,091 $113,321 $108,498
Cost of revenue 20,949 22,540 43,740 46,122
------ ------ ------- -------
Gross profit 36,838 33,551 69,581 62,376
------ ------ ------- -------
Operating
expenses:
Selling, general
and
administrative 5,788 2,960 11,004 5,666
Research and
development 2,440 2,354 4,746 4,575
Depreciation and
amortization 147 110 293 211
------ ------ ------- -------
Total operating
expenses 8,375 5,424 16,043 10,452
------ ------ ------- -------
Operating
income 28,463 28,127 53,538 51,924
------ ------ ------- -------
Investment
income 2,963 763 5,475 1,161
------ ------ ------- -------
Income before
income taxes 31,426 28,890 59,013 53,085
Income tax
expense 8,157 7,227 15,338 13,471
------ ------ ------- -------
Net income $23,269 $21,663 $ 43,675 $ 39,614
====== ====== ======= =======
Basic and
diluted
earnings per
share $ 0.26 $ 0.26 $ 0.48 $ 0.48
EXZEO GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income
(Unaudited)
Three Months
Ended Six Months Ended
June 30, June 30,
----------------- -----------------
(in thousands) 2026 2025 2026 2025
--------------------- ------- ------- ------- -------
Net income $23,269 $21,663 $43,675 $39,614
------ ------ ------ ------
Other comprehensive
loss, net of income
taxes:
Available-for-sale
fixed-maturity
securities (654) -- (1,015) --
------ ------ ------ ------
Other comprehensive
loss, net of income
taxes (654) -- (1,015) --
------ ------ ------ ------
Comprehensive
income $22,615 $21,663 $42,660 $39,614
====== ====== ====== ======
EXZEO GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended June 30,
-----------------------------
(in thousands) 2026 2025
----------------------------------- ---------------- ----------
Operating activities:
Net income $ 43,675 $ 39,614
Adjustments to reconcile net
income to cash provided by
operating activities:
Share-based compensation 1,499 1,429
Depreciation and amortization 1,466 1,439
Deferred income taxes 914 (4,840)
Net accretion of discount on
investments in fixed-maturity
securities (31) --
Foreign currency remeasurement
losses 191 48
Changes in operating assets and
liabilities:
Accounts receivable 1,121 --
Related party receivable and
payable (9,006) (15,746)
Prepaid expenses (29) (60)
Contract cost assets 399 1,954
Income taxes payable (2,044) 3,196
Contract liabilities 908 26,629
Commissions payable 189 119
Accounts payable and accrued
liabilities 5,783 5,665
Other liabilities (18) (221)
Other assets (4,153) (1,741)
Operating leases, net 23 41
------------ ---------
Cash provided by operating
activities 40,887 57,526
------------ ---------
Investing activities:
Capital expenditures (536) (1,252)
Purchase of available-for-sale
securities (198,395) --
------------ ---------
Cash used in investing
activities (198,931) (1,252)
------------ ---------
Financing activities:
Payment of issuance costs (375) --
Repurchase of common stock (10,043) --
------------ ---------
Cash used in financing
activities (10,418) --
------------ ---------
Effect of exchange rate changes on
cash (179) (44)
------------ ---------
Net (decrease) increase in cash and
cash equivalents (168,641) 56,230
------------ ---------
Cash and cash equivalents at
beginning of period 305,372 54,502
------------ ---------
Cash and cash equivalents at end of
period $ 136,731 $ 110,732
============ =========
Non-cash financing activities:
Capital contribution from parent $ 8 $ 25
============ =========
Payable related to share
repurchases $ 100 $ --
============ =========
EXZEO GROUP, INC. AND SUBSIDIARIES
Basic and Diluted Earnings Per Share
(Unaudited)
Three Months Six Months Ended
Ended June 30, June 30,
----------------- -----------------
(in thousands,
except per share
amounts) 2026 2025 2026 2025
----------------- ------- ------- ------- -------
Numerator:
Net income $23,269 $21,663 $43,675 $39,614
Less: Income
attributable
to
participating
securities (651) (1,038) (1,219) (1,912)
------ ------ ------ ------
Income
attributable to
common
shareholders $22,618 $20,625 $42,456 $37,702
Denominator:
Weighted-average
basic shares
outstanding 88,228 78,741 88,306 78,741
Weighted-average
diluted shares
outstanding 88,228 78,741 88,306 78,741
Basic and diluted
earnings per
share $ 0.26 $ 0.26 $ 0.48 $ 0.48
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 net income adjusted to exclude income tax expense, interest expense, investment income, depreciation and amortization, and share-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 net income to Adjusted EBITDA for the periods presented is as follows:
Three Months Six Months Ended
Ended June 30, June 30,
----------------- -----------------
(in thousands) 2026 2025 2026 2025
------- ------- ------- -------
Net income $23,269 $21,663 $43,675 $39,614
Income tax
expense 8,157 7,227 15,338 13,471
Investment
income (2,963) (763) (5,475) (1,161)
Depreciation
and
amortization 726 718 1,442 1,416
Share-based
compensation 759 706 1,499 1,429
------ ------ ------ ------
Adjusted EBITDA
(1) $29,948 $29,551 $56,479 $54,769
====== ====== ====== ======
(1) The Company did not have any interest expense for the
periods presented.
Adjusted Revenue
We define Adjusted Revenue as the portion of 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 Group, Inc. 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 the Adjusted Revenue for the periods presented is as follows:
Three Months Six Months Ended
Ended June 30, June 30,
----------------- ------------------
(in thousands) 2026 2025 2026 2025
---------------- -------- ------- -------- --------
Revenue $ 57,787 $56,091 $113,321 $108,498
Less:
Outsourced
claims fees 1,494 3,831 3,023 6,086
------- ------ ------- -------
Adjusted
Revenue $ 56,293 $52,260 $110,298 $102,412
======= ====== ======= =======
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 most directly comparable GAAP measure is net income margin, which is calculated as net income divided by GAAP revenue.
The calculation of Adjusted EBITDA Margin for the periods presented is as follows:
Three Months Ended Six Months Ended June
June 30, 30,
-------------------- ----------------------
(in thousands,
except
percentages) 2026 2025 2026 2025
------- ------- -------- --------
Numerator:
Adjusted
EBITDA $29,948 $29,551 $ 56,479 $ 54,769
Denominator:
Adjusted
Revenue 56,293 52,260 110,298 102,412
Adjusted EBITDA
Margin (1) 53.2% 56.5% 51.2% 53.5 %
(1) The inputs used to derive Adjusted EBITDA Margin are defined and
reconciled to their most directly comparable GAAP measures in the
preceding tables above. Adjusted EBITDA is reconciled to net income, and
Adjusted Revenue is reconciled to GAAP revenue, in each case as
presented elsewhere in this filing. Net income margin represents the
comparable GAAP measure.
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:
Three Months Six Months Ended
Ended June 30, June 30,
---------------- -------------------
(in thousands) 2026 2025 2026 2025
---------------- ------- ------- ------- ----------
Cash provided by
operating
activities $15,415 $37,754 $40,887 $ 57,526
Less: Capital
expenditures 209 483 536 1,252
------ ------ ------ ------
Free Cash Flow $15,206 $37,271 $40,351 $ 56,274
====== ====== ====== ======
View source version on businesswire.com: https://www.businesswire.com/news/home/20260806573121/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