Exzeo Group — Second Quarter 2026 Earnings Summary

Financial Performance

• Revenue increased to $57.8 million for the quarter ended June 30, 2026, from $56.1 million in the prior year period, driven by growth in underwriting and management services.
• Year-to-date revenue reached $113.3 million, up from $108.5 million in the same period of 2025.
• Net income increased to $23.3 million for the quarter, compared to $21.7 million in the prior year; year-to-date net income was $43.7 million versus $39.6 million.
• Earnings per share remained at $0.26 for the quarter and $0.48 year-to-date in both 2026 and 2025 periods.
• Pre-tax income for the quarter was $31.4 million.
• Adjusted EBITDA increased to $29.9 million for the quarter (from $29.6 million) and $56.5 million year-to-date (from $54.8 million).
• Adjusted EBITDA Margin was 53% for the quarter, down from 57% in the prior year; year-to-date margin was 51%, down from 54%.
• Annual Recurring Revenue increased to $210.7 million from $195.3 million in the prior year period.
• Cash, cash equivalents, and investments totaled $333.8 million as of June 30, 2026, consisting of $136.7 million in cash and cash equivalents and $197.1 million in available-for-sale fixed-maturity securities.
• Net cash provided by operating activities was $40.9 million year-to-date, down from $57.5 million in the prior year.
• Free Cash Flow was $40.4 million year-to-date, compared to $56.3 million in the prior year.
• Total assets were $385.8 million as of June 30, 2026, compared to $347.7 million as of December 31, 2025.
• Total liabilities were $97.6 million as of June 30, 2026, compared to $93.6 million as of December 31, 2025.

Business Segments and Product Lines

• Managed Premium increased to $1.40 billion from $1.22 billion in the prior year, reflecting growth in managed policies on the Exzeo Platform.
• The company announced the launch of Exzeo Ventures, a new division dedicated to developing AI-native products, services, and businesses.
• Growth was driven by new carrier relationships, broader product offerings, and enhanced capabilities across the Exzeo Platform.

Other Key Points

• During the second quarter, 726,828 shares of common stock were repurchased for approximately $10.0 million under a $12.0 million Share Repurchase Program.
• Following the completion of the program in July 2026, aggregate repurchases totaled 834,250 shares for approximately $12.0 million.
• The company operates a "Insurance-as-a-Service" platform focused on the property and casualty (P&C) insurance market, specifically homeowners insurance.
• A conference call regarding these results was held on August 6, 2026.

Risks and Challenges

• Forward-looking statements note risks including the ability to maintain current profitability, the regulated environment, and the ownership of a controlling interest by HCI Group, Inc.
• The company notes a current dependence on HCI Group, Inc. for substantially all of its revenues.
• Adjusted EBITDA margin compression is attributed to continued investment in strategic initiatives, including workforce expansion and operational infrastructure enhancements.