Exzeo Group (NYSE: XZO) lifts Q2 2026 revenue and net income
Rhea-AI Filing Summary
Exzeo Group, Inc. reported solid results for the quarter ended June 30, 2026. Revenue rose to $57.8 million from $56.1 million, while net income increased to $23.3 million from $21.7 million, with basic and diluted EPS steady at $0.26. Year-to-date, revenue reached $113.3 million and net income $43.7 million, with EPS of $0.48.
Key operating metrics continued to expand: Managed Premium grew to $1.40 billion from $1.22 billion and Annual Recurring Revenue to $210.7 million from $195.3 million. Adjusted EBITDA was $29.9 million for the quarter and $56.5 million year-to-date, though Adjusted EBITDA Margin declined to 53% from 57% as the company increased spending on workforce and infrastructure.
Liquidity remains strong, with $333.8 million in cash, cash equivalents and investments, including $136.7 million in cash. Year-to-date net cash provided by operating activities was $40.9 million, down from $57.5 million, and Free Cash Flow was $40.4 million. Exzeo repurchased 726,828 shares in the quarter for approximately $10.0 million, completing a $12.0 million program in July totaling 834,250 shares. The company also launched Exzeo Ventures, a new division focused on AI-native products and businesses.
Positive
- Net income and recurring revenue growth: Net income rose to $23.3M for Q2 and $43.7M year-to-date, while Annual Recurring Revenue increased to $210.7M from $195.3M, supporting a growing, subscription-like revenue base.
Negative
- Operating cash flow and margin pressure: Net cash provided by operating activities declined to $40.9M from $57.5M year-to-date, and Adjusted EBITDA Margin fell to 51–53% from 54–57% as expenses grew faster than revenue.
8-K Event Classification
Key Figures
Key Terms
Annual Recurring Revenue financial
Adjusted EBITDA financial
Adjusted Revenue financial
Free Cash Flow financial
Available-for-sale fixed-maturity securities financial
Earnings Snapshot
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
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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
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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 August 6, 2026, Exzeo Group, Inc. ("Exzeo") issued a press release announcing its financial results for the second quarter ended June 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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Press Release dated August 6, 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: |
August 6, 2026 |
By: |
/s/ Suela Bulku |
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Suela Bulku |
Exhibit 99.1
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) - August 6, 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)
Year-to-Date 2026 Highlights (Comparisons to Year-to-Date 2025)
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
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June 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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(Unaudited) |
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Assets: |
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Current assets: |
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Cash and cash equivalents |
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$ |
136,731 |
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$ |
305,372 |
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Accounts receivable |
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1,785 |
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2,906 |
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Receivable from related parties |
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20,379 |
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11,295 |
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Prepaid expense |
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1,512 |
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1,483 |
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Current contract cost assets |
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5,169 |
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4,722 |
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Other current assets |
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4,127 |
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43 |
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Total current assets |
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169,703 |
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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: $198,426 and $0, respectively, and allowance for credit losses: $0 and $0, respectively) |
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197,072 |
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— |
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Property and equipment, net |
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9,732 |
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10,662 |
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Operating lease right-of-use assets |
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6,263 |
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6,884 |
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Non-current contract cost assets |
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272 |
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1,118 |
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Deferred income taxes, net |
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2,400 |
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2,975 |
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Other assets |
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341 |
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274 |
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Total non-current assets |
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216,080 |
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21,913 |
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Total assets |
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$ |
385,783 |
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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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$ |
74,539 |
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$ |
70,893 |
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Commissions payable |
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4,794 |
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4,605 |
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Accounts payable and accrued liabilities |
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8,358 |
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2,950 |
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Operating lease liabilities |
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2,482 |
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2,413 |
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Income taxes payable |
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411 |
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2,455 |
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Payable to related parties |
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1,151 |
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1,073 |
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Total current liabilities |
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91,735 |
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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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829 |
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3,567 |
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Operating lease liabilities |
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4,140 |
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4,832 |
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Other liabilities |
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908 |
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790 |
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Total non-current liabilities |
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5,877 |
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9,189 |
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Total liabilities |
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97,612 |
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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 ($0.001 par value, 350,000,000 shares authorized, 90,200,252 and 90,926,720 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively) |
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90 |
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91 |
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Additional paid-in capital |
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220,003 |
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228,647 |
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Retained earnings |
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69,093 |
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25,418 |
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Accumulated other comprehensive loss |
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(1,015 |
) |
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— |
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Total shareholders' equity |
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288,171 |
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254,156 |
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Total liabilities and shareholders' equity |
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$ |
385,783 |
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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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Six Months Ended |
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June 30, |
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June 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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$ |
57,787 |
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$ |
56,091 |
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$ |
113,321 |
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$ |
108,498 |
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Cost of revenue |
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20,949 |
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22,540 |
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43,740 |
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46,122 |
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Gross profit |
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36,838 |
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33,551 |
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69,581 |
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62,376 |
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Operating expenses: |
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Selling, general and administrative |
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5,788 |
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2,960 |
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11,004 |
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5,666 |
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Research and development |
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2,440 |
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2,354 |
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4,746 |
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4,575 |
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Depreciation and amortization |
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147 |
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110 |
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293 |
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211 |
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Total operating expenses |
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8,375 |
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5,424 |
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16,043 |
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10,452 |
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Operating income |
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28,463 |
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28,127 |
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53,538 |
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51,924 |
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Investment income |
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2,963 |
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763 |
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5,475 |
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1,161 |
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Income before income taxes |
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31,426 |
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28,890 |
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59,013 |
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53,085 |
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Income tax expense |
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8,157 |
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7,227 |
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15,338 |
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13,471 |
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Net income |
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$ |
23,269 |
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$ |
21,663 |
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$ |
43,675 |
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$ |
39,614 |
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Basic and diluted earnings per share |
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$ |
0.26 |
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$ |
0.26 |
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$ |
0.48 |
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$ |
0.48 |
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EXZEO GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income
(Unaudited)
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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(in thousands) |
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2026 |
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2025 |
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2026 |
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2025 |
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Net income |
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$ |
23,269 |
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$ |
21,663 |
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$ |
43,675 |
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$ |
39,614 |
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Other comprehensive loss, net of income taxes: |
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Available-for-sale fixed-maturity securities |
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(654 |
) |
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— |
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(1,015 |
) |
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— |
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Other comprehensive loss, net of income taxes |
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(654 |
) |
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— |
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(1,015 |
) |
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— |
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Comprehensive income |
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$ |
22,615 |
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$ |
21,663 |
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$ |
42,660 |
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$ |
39,614 |
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EXZEO GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
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Six Months Ended June 30, |
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(in thousands) |
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2026 |
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2025 |
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Operating activities: |
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Net income |
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$ |
43,675 |
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$ |
39,614 |
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Adjustments to reconcile net income to cash provided by operating activities: |
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Share-based compensation |
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1,499 |
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1,429 |
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Depreciation and amortization |
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1,466 |
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1,439 |
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Deferred income taxes |
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914 |
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(4,840 |
) |
Net accretion of discount on investments in fixed-maturity securities |
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(31 |
) |
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— |
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Foreign currency remeasurement losses |
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191 |
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48 |
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Changes in operating assets and liabilities: |
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Accounts receivable |
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1,121 |
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— |
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Related party receivable and payable |
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(9,006 |
) |
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(15,746 |
) |
Prepaid expenses |
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(29 |
) |
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(60 |
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Contract cost assets |
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399 |
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1,954 |
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Income taxes payable |
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(2,044 |
) |
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3,196 |
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Contract liabilities |
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|
908 |
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26,629 |
|
Commissions payable |
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|
189 |
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|
119 |
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Accounts payable and accrued liabilities |
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5,783 |
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|
5,665 |
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Other liabilities |
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(18 |
) |
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(221 |
) |
Other assets |
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(4,153 |
) |
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(1,741 |
) |
Operating leases, net |
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23 |
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41 |
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Cash provided by operating activities |
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40,887 |
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57,526 |
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Investing activities: |
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Capital expenditures |
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(536 |
) |
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(1,252 |
) |
Purchase of available-for-sale securities |
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(198,395 |
) |
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— |
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Cash used in investing activities |
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(198,931 |
) |
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(1,252 |
) |
Financing activities: |
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Payment of issuance costs |
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(375 |
) |
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— |
|
Repurchase of common stock |
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(10,043 |
) |
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— |
|
Cash used in financing activities |
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(10,418 |
) |
|
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— |
|
Effect of exchange rate changes on cash |
|
|
(179 |
) |
|
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(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: |
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|
|
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Capital contribution from parent |
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$ |
8 |
|
|
$ |
25 |
|
Payable related to share repurchases |
|
$ |
100 |
|
|
$ |
— |
|
EXZEO GROUP, INC. AND SUBSIDIARIES
Basic and Diluted Earnings Per Share
(Unaudited)
|
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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(in thousands, except per share amounts) |
|
2026 |
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2025 |
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|
2026 |
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|
2025 |
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Numerator: |
|
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|
|
|
|
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Net income |
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$ |
|
23,269 |
|
|
$ |
|
21,663 |
|
|
$ |
|
43,675 |
|
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$ |
|
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: |
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|
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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 |
|
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 |
% |
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 |
|
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