Exzeo Announces Second Quarter 2026 Financial Results

Managed Premium¹ of $1.40 billion;
Pre-Tax Income of $31.4 million;
Earnings per share² of $0.26

TAMPA, Fla.--(BUSINESS WIRE)--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: [phone]
Canada Local: [phone]
UK Toll-Free: [phone]
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 Ended June 30,						Six Months Ended 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 Ended June 30,						Six Months Ended 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 Ended June 30,				Six Months Ended 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 June 30,						Six Months Ended June 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 Ended June 30,				Six Months Ended 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