Exzeo Announces First Quarter 2026 Financial Results
XZO
Managed Premium1 of $1.43 billion; Pre-Tax Income of $27.6 million; Earnings per share2 of $0.22
Published on 05/06/2026 at 04:18 pm EDT
Exzeo Group, Inc. (NYSE:XZO) today announced financial results for the first quarter ended March 31, 2026.
"Our first quarter demonstrated momentum across the Exzeo Platform, highlighted by strong managed premium growth and the addition of a seventh insurance carrier partner," said Paresh Patel, Exzeo's Chairman and Chief Executive Officer. "Now six months since our IPO, we've delivered on our strategic priorities, including driving profitable growth with existing carrier partners, successfully onboarding and scaling third-party clients, and advancing product innovation across the platform."
First Quarter 2026 Highlights (Comparisons to First Quarter 2025)
Conference Call Information:
Exzeo Group management will host a conference call today, May 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 listen-only number below or by accessing 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: 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
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 Quarterly Report on Form 10-Q for the three months ended March 31, 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
(Unaudited)
March 31,
December 31,
(in thousands, except share and per share amounts)
2026
2025
Assets:
Current assets:
Cash and cash equivalents
$
231,381
$
305,372
Accounts receivable
2,513
2,906
Receivable from related parties
19,897
11,295
Prepaid expense
1,193
1,483
Current contract cost assets
5,404
4,722
Other current assets
541
43
Total current assets
260,929
325,821
Non-current assets:
Fixed-maturity securities, available-for-sale, at fair value (amortized cost: $98,998 and $0, respectively, and allowance for credit losses: $0 and $0, respectively)
98,516
—
Property and equipment, net
10,259
10,662
Operating lease right-of-use assets
6,576
6,884
Non-current contract cost assets
284
1,118
Deferred income taxes, net
2,905
2,975
Other assets
299
274
Total non-current assets
118,839
21,913
Total assets
$
379,768
$
347,734
Liabilities and Shareholders' Equity:
Current liabilities:
Current contract liabilities
$
73,673
$
70,893
Commissions payable
5,450
4,605
Accounts payable and accrued liabilities
6,174
2,950
Operating lease liabilities
2,450
2,413
Income taxes payable
9,394
2,455
Payable to related parties
1,435
1,073
Total current liabilities
98,576
84,389
Non-current liabilities:
Non-current contract liabilities
943
3,567
Operating lease liabilities
4,479
4,832
Other liabilities
829
790
Total non-current liabilities
6,251
9,189
Total liabilities
104,827
93,578
Commitments and contingencies
Shareholders' equity:
Common stock ($0.001 par value, 350,000,000 shares authorized, 90,918,430 and 90,926,720 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively)
91
91
Additional paid-in capital
229,387
228,647
Retained earnings
45,824
25,418
Accumulated other comprehensive loss
(361
)
—
Total shareholders' equity
274,941
254,156
Total liabilities and shareholders' equity
$
379,768
$
347,734
EXZEO GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
Three Months Ended March 31,
(in thousands, except per share amounts)
2026
2025
Revenue
$
55,534
$
52,407
Cost of revenue
22,791
23,582
Gross profit
32,743
28,825
Operating expenses:
Selling, general and administrative
5,216
2,706
Research and development
2,306
2,221
Depreciation and amortization
146
101
Total operating expenses
7,668
5,028
Operating income
25,075
23,797
Investment income
2,512
398
Income before income taxes
$
27,587
$
24,195
Income tax expense
7,181
6,244
Net income
$
20,406
$
17,951
Basic and diluted earnings per share
$
0.22
$
0.22
EXZEO GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income
(Unaudited)
Three Months Ended March 31,
(in thousands)
2026
2025
Net income
$
20,406
$
17,951
Other comprehensive loss, net of income taxes:
Available-for-sale fixed-maturity securities
(361
)
—
Other comprehensive loss, net of income taxes
(361
)
—
Comprehensive income
$
20,045
$
17,951
EXZEO GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended March 31,
(in thousands)
2026
2025
Operating activities:
Net income
$
20,406
$
17,951
Adjustments to reconcile net income to cash provided by operating activities:
Share-based compensation
740
723
Depreciation and amortization
730
709
Deferred income taxes
191
(2,338
)
Net accretion of discount on investments in fixed-maturity securities
(4
)
—
Foreign currency remeasurement losses (gains)
96
(2
)
Changes in operating assets and liabilities:
Accounts receivable
393
—
Related party receivable and payable
(8,240
)
(27,336
)
Prepaid expenses
290
53
Contract cost assets
152
185
Income taxes payable
6,939
604
Contract liabilities
156
25,359
Commissions payable
845
746
Accounts payable and accrued liabilities
3,281
3,234
Other liabilities
12
(141
)
Other assets
(525
)
2
Operating lease
10
23
Cash provided by operating activities
25,472
19,772
Investing activities:
Capital expenditures
(327
)
(769
)
Purchase of available-for-sale securities
(98,994
)
—
Cash used in investing activities
(99,321
)
(769
)
Financing activities:
Payment of issuance costs
(57
)
—
Cash used in financing activities
(57
)
—
Effect of exchange rate changes on cash
(85
)
(11
)
Net (decrease) increase in cash and cash equivalents
(73,991
)
18,992
Cash and cash equivalents at beginning of period
305,372
54,502
Cash and cash equivalents at end of period
$
231,381
$
73,494
Non-cash financing activities:
Capital contribution from parent
$
4
$
21
EXZEO GROUP, INC. AND SUBSIDIARIES
Basic and Diluted Earnings Per Share
(Unaudited)
Three Months Ended March 31,
(in thousands, except per share amounts)
2026
2025
Numerator:
Net income
$
20,406
$
17,951
Less: Income attributable to participating securities
(568
)
(873
)
Income attributable to common stockholders
$
19,838
$
17,078
Denominator:
Weighted-average basic shares outstanding
88,385
78,709
Weighted-average diluted shares outstanding
88,385
78,709
Basic and diluted earnings per share
$
0.22
$
0.22
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 Ended March 31,
2026
2025
$
20,406
$
17,951
7,181
6,244
(2,512
)
(398
)
716
698
740
723
$
26,531
$
25,218
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 Ended March 31,
(in thousands)
2026
2025
Revenue
$
55,534
$
52,407
Less: Outsourced claims fees
1,529
2,255
Adjusted Revenue
$
54,005
$
50,152
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 March 31,
2026
2025
$
26,531
$
25,218
54,005
50,152
49.1
%
50.3
%
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 Ended March 31,
(in thousands)
2026
2025
Cash provided by operating activities
$
25,472
$
19,772
Less: Capital expenditures
327
769
Free Cash Flow
$
25,145
$
19,003
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