Exzeo Group Q3 2026 profit rises to $22.3M
Nine-month net income rose to $66.020 million from $60.765 million, while operating cash flow fell to $72.611 million from $89.017 million.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Exzeo Group, Inc. (XZO) reported third-quarter 2026 revenue of $55.186 million, versus $55.166 million a year earlier, and net income of $22.345 million, up from $21.151 million. Basic and diluted EPS were $0.25 in both periods. Non-GAAP Adjusted Revenue, which excludes outsourced claims fees, was $53.885 million versus $52.357 million; Adjusted EBITDA was $27.617 million versus $28.732 million.
Managed Premium rose to $1.4 billion from $1.2 billion, and Annual Recurring Revenue increased to $205.8 million from $192.4 million. At September 30, 2026, cash, cash equivalents and investments totaled $350.2 million, including $116.4 million cash and $233.8 million in available-for-sale fixed-maturity securities. Exzeo repurchased 410,585 shares for approximately $7.0 million in the quarter; approximately $20.0 million remained available under the August 2026 program as of September 30, 2026.
For the first nine months, net income was $66.020 million versus $60.765 million. Net cash provided by operating activities was $72.611 million versus $89.017 million; Free Cash Flow was $71.741 million versus $86.576 million. Exzeo attributed the cash-flow decrease primarily to timing of business growth and related collections, partly offset by higher net income.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter net income: $22.345 million, versus $21.151 million a year earlier.
- Minor pointNine-month net income: $66.020 million, versus $60.765 million in 2025.
Negative
- Moderate pointNine-month operating cash flow fell to $72.611 million from $89.017 million.
Filing Explained
At September 30, 2026, reported shares outstanding were 89,715,825, versus 90,926,720 at December 31, 2025.
This Form 8-K furnishes Exzeo’s third-quarter results release; the company reports repurchases already made, and its reported share count was lower at
8-K Event Classification
Key Figures
Key Terms
Adjusted Revenue financial
Adjusted EBITDA Margin financial
Annual Recurring Revenue financial
Free Cash Flow financial
Earnings Snapshot
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were XZO's third-quarter 2026 revenue and net income?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) |
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(Registrant's telephone number including area code) |
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 Results of Operations and Financial Condition.
On November 4, 2026, Exzeo Group, Inc. ("Exzeo") issued a press release announcing its financial results for the third quarter ended September 30, 2026. A copy of the earnings release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information furnished herewith pursuant to Item 2.02 of this Current Report, including Exhibit 99.1, shall not be deemed to be filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
The following exhibit is furnished herewith:
Exhibit Number |
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Description of Exhibit |
99.1 |
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Exzeo Group Inc., Press Release, dated November 4, 2026 |
104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Exzeo Group, Inc. |
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Date: |
November 4, 2026 |
By: |
/s/ Suela Bulku |
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Suela Bulku |
Exhibit 99.1
Exzeo Announces Third Quarter 2026 Financial Results
Pre-Tax Income of $29.8 million;
Earnings per share1 of $0.25;
Managed Premium2 of $1.4 billion
TAMPA, Fla.--(BUSINESS WIRE)--November 4, 2026 - Exzeo Group, Inc. (NYSE:XZO) today announced financial results for the third quarter ended September 30, 2026.
“AI will reshape the insurance industry, not just in expense ratios but in how coverage is bought and sold,” said Paresh Patel, Exzeo’s Chairman and Chief Executive Officer. “That creates a real opening for Exzeo to expand its revenue base by designing and deploying new offerings with carrier partners. We’re starting from a strong position: we have the team, the technology and the balance sheet to pursue this while remaining solidly profitable.”
Third Quarter 2026 Highlights (Comparisons to Third Quarter 2025)
Year-to-Date 2026 Highlights (Comparisons to Year-to-Date 2025)
Conference Call Information:
Exzeo Group management will host a conference call today, November 4, 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: Wednesday, November 4, 2026
Time: 5:45 p.m. Eastern Time (2:45 p.m. Pacific Time)
North America (Toll-Free): +1 (833) 461-5787
International (Toll): +1 (585) 542-9983
Meeting ID: 227 462 807
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. 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.
2. Managed Premium is defined as the aggregate gross dollar value of in-force premiums that are processed, managed or administered by Exzeo's software solutions as of the period end date. This excludes any applicable policy fee income associated with managed policies. Premium pricing may vary by state due to a combination of factors including regulatory requirements; however, the majority of the policies are written in the state of Florida. Revenue is primarily derived from usage-based pricing models, which are structured based on the amount of managed premiums processed, in most cases. We view managed premium as an important metric because it is an indicator of the overall size of the Exzeo Platform. However, managed premium is an operational metric and should not be considered a substitute for revenue or other financial results.
3. 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.
4. Annual Recurring Revenue is a key operational metric to assess the scale of our recurring revenue generated from managed premium. ARR is defined as the sum of each customer's managed premiums, multiplied by their respective contractual fee rates, plus any applicable policy fee income associated with managed policies as of the period end date. ARR excludes revenue from nonrecurring sources, such as catastrophe services.
5. Share Repurchase Programs refer to the May 2026 and August 2026 programs authorizing the repurchase of up to $12.0 million and $25.0 million, respectively, of 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 press 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 September 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
(Unaudited)
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September 30, |
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December 31, |
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(in thousands, except share and per share amounts) |
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2026 |
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2025 |
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Assets: |
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Current assets: |
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Cash and cash equivalents |
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$ |
116,404 |
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$ |
305,372 |
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Accounts receivable |
|
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1,496 |
|
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|
2,906 |
|
Receivables from related parties |
|
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15,294 |
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|
11,295 |
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Prepaid expense |
|
|
2,473 |
|
|
|
1,483 |
|
Current contract cost assets |
|
|
5,221 |
|
|
|
4,722 |
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Other current assets |
|
|
3,424 |
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|
43 |
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Total current assets |
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144,312 |
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325,821 |
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Non-current assets: |
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Fixed-maturity securities, available-for-sale, at fair value (amortized cost: $243,196 and $0, respectively, and allowance for credit losses: $0 and $0, respectively) |
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233,779 |
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— |
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Property and equipment, net |
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9,298 |
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10,662 |
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Operating lease right-of-use assets |
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5,945 |
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6,884 |
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Non-current contract cost assets |
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275 |
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1,118 |
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Deferred income taxes, net |
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3,588 |
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2,975 |
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Other assets |
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297 |
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274 |
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Total non-current assets |
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253,182 |
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21,913 |
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Total assets |
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$ |
397,494 |
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$ |
347,734 |
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Liabilities and Shareholders' Equity: |
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Current liabilities: |
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Current contract liabilities |
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$ |
74,101 |
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$ |
70,893 |
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Commissions payable |
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4,077 |
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4,605 |
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Accounts payable and accrued liabilities |
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11,752 |
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2,950 |
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Operating lease liabilities |
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2,504 |
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2,413 |
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Income taxes payable |
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370 |
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2,455 |
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Payables to related parties |
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1,358 |
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|
1,073 |
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Total current liabilities |
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94,162 |
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84,389 |
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Non-current liabilities: |
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Non-current contract liabilities |
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721 |
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3,567 |
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Operating lease liabilities |
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3,806 |
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4,832 |
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Other liabilities |
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|
702 |
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|
790 |
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Total non-current liabilities |
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5,229 |
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|
9,189 |
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Total liabilities |
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99,391 |
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93,578 |
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Commitments and contingencies |
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Shareholders' equity: |
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Common stock ($0.001 par value, 350,000,000 shares authorized, 89,715,825 and 90,926,720 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively) |
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90 |
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91 |
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Additional paid-in capital |
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213,634 |
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228,647 |
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Retained earnings |
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91,438 |
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25,418 |
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Accumulated other comprehensive loss |
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(7,059 |
) |
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— |
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Total shareholders' equity |
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298,103 |
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|
254,156 |
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Total liabilities and shareholders' equity |
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$ |
397,494 |
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$ |
347,734 |
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EXZEO GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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(in thousands, except per share amounts) |
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2026 |
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2025 |
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2026 |
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2025 |
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Revenue |
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$ |
55,186 |
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$ |
55,166 |
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$ |
168,507 |
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$ |
163,664 |
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Cost of revenue |
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20,940 |
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21,393 |
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64,680 |
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|
67,515 |
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Gross profit |
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34,246 |
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|
33,773 |
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103,827 |
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|
96,149 |
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Operating expenses: |
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Selling, general and administrative |
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5,564 |
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3,900 |
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16,568 |
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9,566 |
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Research and development |
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2,383 |
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2,494 |
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7,129 |
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|
7,069 |
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Depreciation and amortization |
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149 |
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|
|
127 |
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|
|
442 |
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|
|
338 |
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Total operating expenses |
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|
8,096 |
|
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|
6,521 |
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|
|
24,139 |
|
|
|
16,973 |
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Operating income |
|
|
26,150 |
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|
|
27,252 |
|
|
|
79,688 |
|
|
|
79,176 |
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Interest income |
|
|
3,340 |
|
|
|
1,102 |
|
|
|
8,815 |
|
|
|
2,263 |
|
Other income, net |
|
|
340 |
|
|
|
— |
|
|
|
340 |
|
|
|
— |
|
Income before income taxes |
|
|
29,830 |
|
|
|
28,354 |
|
|
|
88,843 |
|
|
|
81,439 |
|
Income tax expense |
|
|
7,485 |
|
|
|
7,203 |
|
|
|
22,823 |
|
|
|
20,674 |
|
Net income |
|
$ |
22,345 |
|
|
$ |
21,151 |
|
|
$ |
66,020 |
|
|
$ |
60,765 |
|
Basic and diluted earnings per share |
|
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
0.73 |
|
|
$ |
0.73 |
|
EXZEO GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income
(Unaudited)
|
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Three Months Ended |
|
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Nine Months Ended |
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|
||||||||||
|
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September 30, |
|
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September 30, |
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(in thousands) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
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|
||||
Net income |
|
$ |
22,345 |
|
|
$ |
21,151 |
|
|
$ |
66,020 |
|
|
$ |
60,765 |
|
|
Other comprehensive loss, net of income taxes: |
|
|
|
|
|
|
|
|
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||||
Available-for-sale fixed-maturity securities |
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(6,044 |
) |
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|
— |
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(7,059 |
) |
|
|
— |
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|
Other comprehensive loss, net of income taxes |
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(6,044 |
) |
|
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— |
|
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(7,059 |
) |
|
|
— |
|
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Comprehensive income |
|
$ |
16,301 |
|
|
$ |
21,151 |
|
|
$ |
58,961 |
|
|
$ |
60,765 |
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EXZEO GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
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Nine Months Ended September 30, |
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(in thousands) |
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2026 |
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2025 |
|
||
Operating activities: |
|
|
|
|
|
|
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Net income |
|
$ |
66,020 |
|
|
$ |
60,765 |
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Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
|
|
|
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Share-based compensation |
|
|
2,220 |
|
|
|
2,160 |
|
Depreciation and amortization |
|
|
2,234 |
|
|
|
2,340 |
|
Deferred income taxes |
|
|
1,746 |
|
|
|
(2,134 |
) |
Amortization of premium and accretion of discount on available-for-sale fixed-maturity securities, net |
|
|
(142 |
) |
|
|
— |
|
Foreign currency remeasurement loss |
|
|
232 |
|
|
|
141 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
1,410 |
|
|
|
— |
|
Related party receivables and payables |
|
|
(3,714 |
) |
|
|
(9,871 |
) |
Prepaid expenses |
|
|
(990 |
) |
|
|
(515 |
) |
Contract cost assets |
|
|
344 |
|
|
|
2,852 |
|
Income taxes payable |
|
|
(2,253 |
) |
|
|
4,531 |
|
Contract liabilities |
|
|
362 |
|
|
|
21,549 |
|
Commissions payable |
|
|
(528 |
) |
|
|
(366 |
) |
Accounts payable and accrued liabilities |
|
|
9,177 |
|
|
|
9,512 |
|
Other liabilities |
|
|
(135 |
) |
|
|
(125 |
) |
Other assets |
|
|
(3,407 |
) |
|
|
(1,868 |
) |
Operating leases, net |
|
|
35 |
|
|
|
46 |
|
Cash provided by operating activities |
|
|
72,611 |
|
|
|
89,017 |
|
Investing activities: |
|
|
|
|
|
|
||
Capital expenditures |
|
|
(870 |
) |
|
|
(2,441 |
) |
Purchase of available-for-sale fixed-maturity securities |
|
|
(243,055 |
) |
|
|
— |
|
Cash used in investing activities |
|
|
(243,925 |
) |
|
|
(2,441 |
) |
Financing activities: |
|
|
|
|
|
|
||
Payment of issuance costs |
|
|
(375 |
) |
|
|
— |
|
Repurchase of common stock |
|
|
(17,066 |
) |
|
|
— |
|
Cash used in financing activities |
|
|
(17,441 |
) |
|
|
— |
|
Effect of exchange rate changes on cash |
|
|
(213 |
) |
|
|
(159 |
) |
Net (decrease) increase in cash and cash equivalents |
|
|
(188,968 |
) |
|
|
86,417 |
|
Cash and cash equivalents at beginning of period |
|
|
305,372 |
|
|
|
54,502 |
|
Cash and cash equivalents at end of period |
|
$ |
116,404 |
|
|
$ |
140,919 |
|
Non-cash financing activities: |
|
|
|
|
|
|
||
Capital contribution from parent |
|
$ |
11 |
|
|
$ |
30 |
|
Payable related to share repurchases |
|
$ |
168 |
|
|
$ |
— |
|
EXZEO GROUP, INC. AND SUBSIDIARIES
Basic and Diluted Earnings Per Share
(Unaudited)
|
|
Three Months Ended |
|
|
|
Nine Months Ended |
|
|||||||||||||
|
|
September 30, |
|
|
September 30, |
|
||||||||||||||
(in thousands, except per share amounts) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||||||
Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income |
|
$ |
|
22,345 |
|
|
$ |
|
21,151 |
|
|
$ |
|
66,020 |
|
|
$ |
|
60,765 |
|
Less: Income attributable to participating securities |
|
|
|
(623 |
) |
|
|
|
(1,027 |
) |
|
|
|
(1,842 |
) |
|
|
|
(2,939 |
) |
Income attributable to common shareholders |
|
$ |
|
21,722 |
|
|
$ |
|
20,124 |
|
|
$ |
|
64,178 |
|
|
$ |
|
57,826 |
|
Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average basic shares outstanding |
|
|
|
87,475 |
|
|
|
|
78,741 |
|
|
|
|
88,026 |
|
|
|
|
78,731 |
|
Weighted-average diluted shares outstanding |
|
|
|
87,475 |
|
|
|
|
78,741 |
|
|
|
|
88,026 |
|
|
|
|
78,731 |
|
Basic and diluted earnings per share |
|
$ |
|
0.25 |
|
|
$ |
|
0.25 |
|
|
$ |
|
0.73 |
|
|
$ |
|
0.73 |
|
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, interest income, other income, net, depreciation and amortization, and share-based compensation expense. Management uses Adjusted EBITDA as a key measure of operating performance 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 |
|
|
Nine Months Ended |
|
||||||||||
|
|
September 30, |
|
|
September 30, |
|
||||||||||
(in thousands) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Net income |
|
$ |
22,345 |
|
|
$ |
21,151 |
|
|
$ |
66,020 |
|
|
$ |
60,765 |
|
Income tax expense |
|
|
7,485 |
|
|
|
7,203 |
|
|
|
22,823 |
|
|
|
20,674 |
|
Interest income |
|
|
(3,340 |
) |
|
|
(1,102 |
) |
|
|
(8,815 |
) |
|
|
(2,263 |
) |
Other income, net |
|
|
(340 |
) |
|
|
— |
|
|
|
(340 |
) |
|
|
— |
|
Depreciation and amortization |
|
|
746 |
|
|
|
749 |
|
|
|
2,188 |
|
|
|
2,165 |
|
Share-based compensation |
|
|
721 |
|
|
|
731 |
|
|
|
2,220 |
|
|
|
2,160 |
|
Adjusted EBITDA (1) |
|
$ |
27,617 |
|
|
$ |
28,732 |
|
|
$ |
84,096 |
|
|
$ |
83,501 |
|
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. 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 Adjusted Revenue for the periods presented is as follows:
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
September 30, |
|
|
September 30, |
|
||||||||||
(in thousands) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Revenue |
|
$ |
55,186 |
|
|
$ |
55,166 |
|
|
$ |
168,507 |
|
|
$ |
163,664 |
|
Less: Outsourced claims fees |
|
|
1,301 |
|
|
|
2,809 |
|
|
|
4,324 |
|
|
|
8,895 |
|
Adjusted Revenue |
|
$ |
53,885 |
|
|
$ |
52,357 |
|
|
$ |
164,183 |
|
|
$ |
154,769 |
|
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 |
|
|
Nine Months Ended |
|
||||||||||
|
|
September 30, |
|
|
September 30, |
|
||||||||||
(in thousands, except percentages) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Numerator: Adjusted EBITDA |
|
$ |
27,617 |
|
|
$ |
28,732 |
|
|
$ |
84,096 |
|
|
$ |
83,501 |
|
Denominator: Adjusted Revenue |
|
|
53,885 |
|
|
|
52,357 |
|
|
|
164,183 |
|
|
|
154,769 |
|
Adjusted EBITDA Margin (1) |
|
|
51.3 |
% |
|
|
54.9 |
% |
|
|
51.2 |
% |
|
|
54.0 |
% |
Free Cash Flow
We define Free Cash Flow as net cash provided by operating activities less capital expenditures during the period. We believe 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 related 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 |
|
|
Nine Months Ended |
|
||||||||||
|
|
September 30, |
|
|
September 30, |
|
||||||||||
(in thousands) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Cash provided by operating activities |
|
$ |
31,724 |
|
|
$ |
31,491 |
|
|
$ |
72,611 |
|
|
$ |
89,017 |
|
Less: Capital expenditures |
|
|
334 |
|
|
|
1,189 |
|
|
|
870 |
|
|
|
2,441 |
|
Free Cash Flow |
|
$ |
31,390 |
|
|
$ |
30,302 |
|
|
$ |
71,741 |
|
|
$ |
86,576 |
|
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