XZO

Interested in Exzeo Group, Inc.? Here are five stocks we like better. Exzeo exceeded second-quarter guidance: Managed premium rose to $1.4 billion, revenue reached $58 million, pre-tax income surpassed $31 million and adjusted EBITDA margin exceeded 53%. Annual recurring revenue also increased to $211 million. The platform continued expanding: Exzeo added GEICO as its eighth carrier partner, enabling agents to bundle auto and home insurance. Agent numbers doubled and quote volume more than doubled year to date. Exzeo launched an AI-focused venture initiative to develop businesses and products that would not be possible without AI, including potential applications for catastrophe claims processing. The company maintained its full-year outlook and expects third-quarter pre-tax income of $28 million to $31 million. Exzeo Group (NYSE:XZO) reported second-quarter 2026 results that exceeded its guidance, with higher managed premium, revenue and pre-tax income, while outlining continued expansion of its insurance platform and the launch of an internal artificial intelligence initiative. Chief Financial Officer Suela Bulku said managed premium on the platform reached $1.4 billion during the quarter, compared with $1.2 billion in the first quarter. Total revenue rose to $58 million from $56 million in the prior quarter, driven by the increase in managed premium. Excluding outsourcing claim fees, adjusted revenue increased by $4 million year over year to more than $56 million. → No Hangover: Revisiting Microsoft One Week After Earnings Pre-tax income exceeded $31 million, up from more than $28 million in the first quarter, while earnings per share totaled $0.26 for the quarter and $0.48 year to date. Adjusted EBITDA margin was more than 53%. “We believe annualized margins above 50% are achievable for the foreseeable future,” Bulku said. → MarketBeat Week in Review – 08/03 - 08/07 Annual recurring revenue rose to $211 million in the second quarter from $195 million in the prior quarter. The company ended the period with more than $333 million of invested assets, including cash equivalents and fixed-income securities, and remained debt-free. Shareholders’ equity increased to $288 million from $254 million at the end of the year, according to Bulku. → Why the Landlord of the AI Boom Could Outlast the Chipmakers During the quarter, Exzeo repurchased more than 726,000 shares for about $10 million. After the quarter closed, it repurchased another 107,000 shares, bringing total repurchases to $12 million and completing its authorized share repurchase program. Bulku said management viewed the repurchases as a compelling use of capital given the company’s asset-light business model, margins, cash position and outlook. For the third quarter, Exzeo expects pre-tax income between $28 million and $31 million and managed premium of about $1.4 billion. The company left its full-year outlook unchanged, including year-end managed premium guidance of $1.55 billion. Bulku said revenue conversion from annual recurring revenue depends on renewal cycles and product mix. She said revenue in 2026 is expected to peak slightly in the second quarter, become more modest in the third quarter and decline slightly in the fourth quarter, reflecting the company’s normal seasonal patterns. President Kevin Mitchell said the company’s platform has continued to add users and insurance offerings. Exzeo signed its eighth carrier partner during the quarter, adding GEICO and bringing auto insurance to the platform. The addition enables agents to bundle home and auto coverage, according to Mitchell. The platform now offers homeowners, commercial residential, flood and auto insurance products. Since the beginning of the year, Exzeo has doubled its number of agents, more than doubled quote volume and expanded the number of carrier partners and available products, Mitchell said. He added that independent agents have increasingly contacted the company proactively to join the platform. Mitchell described a network effect in which a larger agent base makes the platform more appealing to carriers, while more carriers and products improve the value proposition for agents. He said both agent adoption and platform utilization have increased. Chief Executive Officer Paresh Patel said the GEICO partnership gives agents the ability to sell and bundle GEICO coverage through Exzeo’s platform. While he characterized the opportunity as early-stage, he said management was “very excited” about the partnership. Exzeo also announced Exzeo Ventures, an internally funded initiative intended to identify products, services and businesses made possible by artificial intelligence. Patel said the effort is distinct from applying AI to improve the company’s existing platform and processes. “What we’re talking about in Exzeo Ventures is doing something that you could not be possible without AI,” Patel said during the question-and-answer session. Patel cited catastrophe-related insurance claims as one potential application. He said insurers can face sharp increases in claims after a major event, creating staffing constraints that delay claims handling. AI could potentially allow processing capacity to rise rapidly during such volume surges, he said. Management said Exzeo Ventures is exploring opportunities across underwriting, claims distribution, claims and risk transfer, among other areas. Patel said the company has four or five initiatives in development and plans to discuss them as they mature. He also said the initiative could extend beyond insurance. In closing, Patel said Exzeo’s debt-free balance sheet, financial flexibility, expanding platform and investment in AI-related opportunities position the company for long-term growth. Exzeo provides turnkey insurance technology and operations solutions to insurance carriers and their agents based on a proprietary platform of purpose-built software and data analytics applications that are specifically designed for the property and casualty, or P&C, insurance ecosystem. Exzeo's Insurance-as-a-Service (IaaS) platform, which we refer to as the “Exzeo Platform,” currently includes nine highly configurable software and data analytics applications that are purpose-built to serve insurance companies and other customers in the insurance value chain. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Exzeo Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Exzeo Group Inc (NYSE:XZO) delivered strong financial results with a 53% adjusted EBITDA margin and pre-tax income of over $31 million, exceeding guidance. Managed premium on the platform grew to $1.4 billion, up from $1.2 billion in the prior quarter, indicating robust platform growth. The company signed its eighth carrier partner, Geico, adding auto insurance to the platform and enabling agents to bundle home and auto, expanding its product offerings. Exzeo Group Inc (NYSE:XZO) maintains a debt-free balance sheet with over $333 million in invested assets and significant financial flexibility. The launch of Exzeo Ventures positions the company to capitalize on AI-driven opportunities, potentially creating entirely new business models beyond current operations. The platform's flywheel effect is gaining momentum, with the number of agents doubling and quote volume more than doubling since the beginning of the year. Third-quarter guidance for pre-tax income ($28-$31 million) is lower than the second quarter's $31 million, reflecting expected seasonality and modest revenue growth. Managed premium is expected to remain flat at approximately $1.4 billion in the third quarter, indicating a potential slowdown in growth. The company's revenue is subject to seasonality, with Q2 peaking and Q4 expected to step down, which could create uneven financial performance. The impact of the Geico partnership is still in early stages, with no clear timeline or quantification of its potential contribution to the model. Exzeo Ventures is a new initiative with unproven outcomes, and the company has not provided specific details on the potential financial impact or success of its AI-driven projects. The company completed its share repurchase program, which may limit future capital return opportunities despite its strong cash position. Warning! GuruFocus has detected 5 Warning Signs with VATE. Is XZO fairly valued? Test your thesis with our free DCF calculator. Q: Regarding the new Geico partnership, how sizable could this be, and when might it start to impact the financial model?A: Parish Patel (CEO): Geico is a huge partner and a significant start for the platform. The partnership allows agents to bundle home and auto insurance, which is a major value proposition. While it is early days, the potential is substantial, and we are very excited about the opportunities this partnership brings to the platform. Q: Can you elaborate on the new Axio Ventures initiative? What is its purpose, and will it impact the company's high EBITDA margins?A: Parish Patel (CEO): Axio Ventures is not about retrofitting AI to existing processes, which will happen on the main platform anyway. Instead, it focuses on creating entirely new products and business models that are only possible because of AI, similar to how Uber reimagined transportation. We have four or five initiatives in the pipeline, such as using AI to handle catastrophic surges in claims processing. This is a separate, forward-looking venture, and the core business will continue to maintain its high 50%+ EBITDA margins. Q: What are the revenue expectations for Q3 and Q4, and what is the year-end managed premium target?A: Suella Boku (CFO): The full-year guidance for managed premium remains unchanged at $1.55 billion. Regarding revenue seasonality, 2026 revenue peaks slightly in Q2, is more modest in Q3, and steps down in Q4, which is typical for our business and depends on renewal cycles and product mix. Q: Can you expand on the agent and carrier flywheel dynamic and how it is driving traction and momentum?A: Kevin (President): The flywheel effect is real. Agents are gravitating to the platform for its ease of use and efficiency. As more agents join, the platform becomes more attractive to carriers, and as more carriers come on board, the value proposition for agents strengthens. This is driving both an increase in the number of agents and higher platform utilization, creating a positive, self-reinforcing cycle. Q: What is the velocity of your pipeline conversations, and how is the need for rapid time-to-value resonating with potential partners?A: Kevin (President): The pipeline is strong and pointing in the right direction. We have consistently added partners over the past year and will continue to do so. As more carriers come on board and see the platform's capabilities, it becomes easier to build and advance the pipeline, making the conversation more compelling. Q: Can you provide more detail on the financial results for the second quarter?A: Suella Boku (CFO): We delivered strong results with managed premium at $1.4 billion and a 53% adjusted EBITDA margin. Pre-tax income was over $31 million, up from $28 million in the prior quarter, and EPS was $0.26. Total revenue increased to $58 million, driven by higher managed premium. We remain debt-free with over $333 million in invested assets. Q: What is the company's capital management strategy, and what actions have been taken recently?A: Suella Boku (CFO): We have completed our authorized share repurchase program, buying back a total of $12 million in shares, including 726,000 shares during the quarter and an additional 107,000 shares after the quarter. Given our asset-light model, high margins, and debt-free balance sheet, we believe this was a compelling use of capital and reflects our confidence in the long-term outlook. Q: What are the key operational highlights for the quarter, and how is the platform expanding?A: Kevin (President): We have seen significant momentum. Quote volume has more than doubled since the beginning of the year, and we signed our eighth carrier partner, Geico, which brings auto insurance to the platform. We have also doubled the number of agents on the platform. The platform now offers homeowners, commercial residential, flood, and auto insurance, making it more valuable for agents. Q: Can you provide an example of the type of opportunity Axio Ventures is pursuing?A: Parish Patel (CEO): One example is in catastrophe claims processing. Carriers often face a staffing bottleneck when claims surge 20-fold after a major event. With AI, processing capacity can be scaled up immediately to match the surge, resulting in faster claims handling and a better experience for policyholders during difficult times. This is a new capability that was not possible before AI. Q: What is the company's outlook for the third quarter?A: Suella Boku (CFO): For the third quarter, we expect pre-tax income to be between $28 million and $31 million, and we expect managed premium to be approximately $1.4 billion. This guidance is consistent with the anticipated timing of growth across our existing client base, and our full-year guidance remains unchanged. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Managed Premium1 of $1.40 billion;Pre-Tax Income of $31.4 million;Earnings per share2 of $0.26 TAMPA, Fla., August 06, 2026--(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, 2026Time: 5:45 p.m. Eastern Time (2:45 p.m. Pacific Time)U.S. Toll-Free: +1 (833) 461-5787Canada Local: +1 (365) 657-4084UK Toll-Free: +44 (808) 196-8935Conference 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 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. 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. 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. 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. 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. 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: 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: 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: 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: View source version on businesswire.com: https://www.businesswire.com/news/home/20260806573121/en/ Contacts Investor and Media Contact Company Contact: Bill Broomall, CFAVice President, Investor RelationsExzeo Group, [email protected] Investor Relations Contact: Matt Glover and Clay LioliosGateway Group, Inc.Tel: (949) [email protected]

TAMPA, Fla., July 08, 2026 (GLOBE NEWSWIRE) -- The board of directors of HCI Group, Inc. (NYSE: HCI) has declared a regular quarterly cash dividend in the amount of 40 cents per common share. The dividend is scheduled to be paid September 18, 2026 to shareholders of record at the close of business August 21, 2026. About HCI Group, Inc. HCI Group is a diversified holding company engaged in insurance, reinsurance, real estate, claims services, and insurance technology. The HCI Group portfolio of companies includes multiple property and casualty underwriters, exchanges, and captive reinsurers as well as a claims management business, a commercial real estate investment company, and a leading insurance technology company Exzeo Group. HCI Group was founded in 2006. HCI Group's common shares trade on the New York Stock Exchange under the ticker symbol "HCI" and are included in the Russell 2000 and S&P SmallCap 600 Index. HCI Group regularly publishes financial and other information in the Investor Information section of the company’s website. For more information about HCI Group and its subsidiaries, visit https://www.hcigroup.com/. Exzeo’s common shares trade on the New York Stock Exchange under the ticker symbol “XZO.” For more information about Exzeo, visit https://www.exzeo.com. Forward-Looking Statements This news release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “estimate,” “expect,” “intend,” “plan,” “confident,” “prospects” and “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. There can be no assurance, for example, that changes in the company’s cash flow and cash balances will not impact the ability or willingness of HCI Group to pay a dividend. Some of these risks and uncertainties are identified in the company’s filings with the Securities and Exchange Commission. 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. HCI Group, Inc. disclaims all obligations to update any forward-looking statements. Company Contact: Nat OtisHCI Group, Inc.Tel (813) [email protected] Investor Relations Contact: Matt GloverGateway Group, Inc.Tel (949) [email protected]

Managed Premium1 of $1.43 billion; Pre-Tax Income of $27.6 million; Earnings per share2 of $0.22 TAMPA, Fla., May 06, 2026--(BUSINESS WIRE)--Exzeo Group, Inc. (NYSE:XZO) today announced financial results for the first quarter ended March 31, 2026. "Our first quarter demonstrated momentum across the Exzeo Platform, highlighted by strong managed premium growth and the addition of a seventh insurance carrier partner," said Paresh Patel, Exzeo's Chairman and Chief Executive Officer. "Now six months since our IPO, we've delivered on our strategic priorities, including driving profitable growth with existing carrier partners, successfully onboarding and scaling third-party clients, and advancing product innovation across the platform." First Quarter 2026 Highlights (Comparisons to First Quarter 2025) Revenue increased to $55.5 million from $52.4 million, driven primarily by new customers along with growth in underwriting and management services from our existing customer base. Net income was $20.4 million, and basic and diluted earnings per share were $0.22, compared with $18.0 million and $0.22 in the prior-year period. Managed Premium increased to $1.43 billion from $1.24 billion, reflecting growth in managed policies driven by continued adoption of Exzeo's Insurance-as-a-Service platform from new and existing customers. Annual Recurring Revenue4 increased to $216.2 million, up from $198.7 million in the prior-year period. Adjusted EBITDA3 increased to $26.5 million from $25.2 million, reflecting continued business growth. Adjusted EBITDA Margin3 was 49% compared with 50% in the prior year, as the Company continued to invest in strategic initiatives to support long-term growth, including personnel and company infrastructure. Cash provided by operating activities increased to $25.5 million from $19.8 million. As a result, Free Cash Flow3 increased to $25.1 million from $19.0 million. Cash, cash equivalents and investments as of March 31, 2026, increased to $329.9 million, from $305.4 million of cash and cash equivalents as of December 31, 2025. A seventh insurance company joined the Exzeo platform in the first quarter. Conference Call Information: Exzeo Group management will host a conference call today, May 6, 2026, at 5:45 p.m. Eastern time (2:45 p.m. Pacific time). Interested parties can listen to the live presentation by dialing the listen-only number below or by accessing the webcast link below or on the Investor Information section of the Company’s website at investors.exzeo.com. Toll-Free: (800) 715-9871 International Toll: +1 (646) 307-1963 Conference ID: 2747849 Webcast Link A replay of the call will be available after 8:00 p.m. Eastern Time on the same day as the call on the Company’s Investor Relations website at investors.exzeo.com. End Notes About Exzeo Group, Inc. Exzeo Group is a leading innovator in technology solutions purpose-built for property and casualty (P&C) insurance carriers, with a strong focus on the expansive homeowners insurance market. Through its completely internally developed "Insurance-as-a-Service" platform, Exzeo delivers a comprehensive suite of digital tools and services that streamline every aspect of carrier and agent operations—from quoting and underwriting to policy administration, claims handling, data analytics, and financial reporting. By integrating advanced technology with deep industry expertise, Exzeo empowers P&C insurers to enhance underwriting precision, drive operational efficiency, and achieve superior performance across the insurance value chain. For more information, please visit exzeo.com. Forward-Looking Statements This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical facts included in this release, are forward-looking statements. Words such as "anticipate," "estimate," "expect," "intend," "plan," "confident," "prospects" and "project" and other similar words and expressions are intended to signify forward-looking statements, and these forward-looking statements may include, without limitation, statements regarding growth strategies and future performance and profitability. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties, which may include, without limitation, our ability to maintain our current level of profitability, the regulated environment in which we operate, the ownership of a controlling interest in our common stock by HCI Group, Inc., and the current dependence on HCI Group, Inc. for substantially all of our revenues. These and other risks and uncertainties are identified in our filings with the Securities and Exchange Commission, including those factors discussed under the captions entitled "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our Quarterly Report on Form 10-Q for the three months ended March 31, 2026, when filed. Should any risks or uncertainties develop into actual events, these developments could have material adverse effects on the Company's business, financial condition and results of operations. Exzeo Group, Inc. disclaims all obligations to update any forward-looking statements. 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: 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: 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: 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: View source version on businesswire.com: https://www.businesswire.com/news/home/20260506783413/en/ Contacts Investor and Media Contact Company Contact: Bill Broomall, CFA Vice President, Investor Relations Exzeo Group, Inc. [email protected] Investor Relations Contact: Matt Glover and Clay Liolios Gateway Group, Inc. Tel: (949) 574-3860 [email protected]

Image source: The Motley Fool. Wednesday, May 6, 2026 at 5:45 p.m. ET Chief Executive Officer — Pareshbhai Patel President — Kevin Mitchell Chief Financial Officer — Suela Bulku Need a quote from a Motley Fool analyst? Email [email protected]. Suela Bulku: Thank you, William. Good evening, everyone, and thank you for joining us for Exzeo Group, Inc.’s first quarter earnings call. Exzeo Group, Inc. continues to deliver on its core objectives. Managed premium on the platform experienced another quarter of growth to $1.43 billion and exceeded our expectations. We delivered continued bottom-line growth, including strong cash flows and a 49% adjusted EBITDA margin in the quarter. Pretax income in the quarter was over $27 million, an increase from $24 million in the prior-year quarter and above our previous guidance range. Diluted earnings were 22¢ per share. For the first quarter, revenue increased to $56 million from $52 million in the prior-year quarter, driven by the increase of managed premium on the platform. The growth in managed premium reflects continued diversification across the business, with managed premium from non-ACI clients reaching approximately $105 million, a positive step forward. Our adjusted EBITDA margin was over 49% in the quarter, and we believe our margins are repeatable in the future. This quarter reflected continued investment in growth initiatives and personnel, and as our model continues to expand, we expect to make additional investments going forward. A few additional highlights for the quarter: our annual recurring revenue was $216 million in the first quarter, an increase from about $1.199 billion in the prior-year quarter. Free cash flow generation remains strong. For the first quarter, we generated free cash flow of about $25 million with net income of about $20 million; that represents a free cash flow conversion rate of 123%. Turning to the balance sheet, we ended the year with $330 million of investment assets, which includes cash, cash equivalents, and fixed income securities, and we remain debt-free. Shareholders’ equity increased to $275 million, an increase from $254 million at the end of the year. Our shareholders’ equity is now eight times higher than it was a year ago. Excluding the IPO impact, it has more than tripled over the same period, reflecting strong underlying growth in the business. Before turning the call over to Kevin, I want to quickly touch on our guidance expectations. For the second quarter, we expect pretax income to be between $27 million and $30 million. For the full year 2026, we are leaving our guidance unchanged at between $115 million and $125 million. With respect to managed premium, we expect managed premium to remain stable in the second quarter at approximately $1.4 billion, consistent with the anticipated timing of growth across our existing client base. We continue to expect managed premium of $1.55 billion at year-end 2026. In closing, we are very pleased with our strong start to 2026, as Exzeo Group, Inc. delivered another quarter marked by continued execution across premium expansion, revenue growth, solid profitability, and a solid balance sheet. I will now turn the call over to Kevin Mitchell. Kevin Mitchell: Thank you, Suela. Exzeo Group, Inc. has made meaningful progress towards its strategy in early 2026. To remind those new to the Exzeo Group, Inc. story, the composition of managed premium continues to evolve as Exzeo Group, Inc. expands beyond its historical client base. At the end of 2025, all $1.2 billion of managed premium on the Exzeo Group, Inc. platform was generated from HCI-sponsored carriers. That has grown to approximately $1.3 billion as of the first quarter of 2026. Additionally, over the past six months, we have added three new carriers to the platform, and these carriers added $105 million of managed premium as of the first quarter. These new carriers account for over 7% of managed premium, marking an important milestone in diversifying revenue sources and validating the platform’s ability to attract and support external partners. Because of the validation we are seeing in the market, we are investing in our business and infrastructure to ensure we have everything in place to pursue our future growth ambitions. This includes investing in talent and platform capabilities. Through April, the company added about 20 new full-time employees. These new team members will focus on supporting the scaling of operations, onboarding new clients, and expanding product capabilities. This buildout reflects both the increasing demand for the Exzeo Group, Inc. platform and management’s confidence in the company’s growth trajectory. In closing, we continue to build momentum. The existing carriers on our platform are growing, the new carriers added to the platform are having success scaling and now contribute to the total managed premium on our platform, and we are investing in infrastructure to put us in a position to take advantage of the next phase of growth. I will now turn the call over to Pareshbhai Patel. Pareshbhai Patel: Thanks, Kevin. As Suela highlighted in her remarks, we are successfully scaling our platform. With tremendous efficiency. Out of every dollar we are adding to the platform, 50¢ is dropping to pretax income. Because of these attractive economics, Kevin is working to add more managed premium to the platform, and I think we have a fabulous team to execute that strategy. In addition to that, we have an additional strategy that is now developing. It requires a deep understanding of the broader industry and market trends. Let me elaborate. First, we know that the insurance industry, our potential clients, generally are behind in adopting the latest technology. Most of them have IT teams who can implement and maintain software tools and systems. But what they cannot do is develop new tools. Second, the Exzeo Group, Inc. platform was developed entirely in-house from the ground up. We have developers and insurance experts under the same roof, and it shows that we know how to develop, deploy, and maintain systems at scale. This is a key differentiator. Third, insurers are facing a shortage of skilled talent, and that talent gap continues to widen across the industry. Finally, there is AI. The industry recognizes that AI has the potential to significantly improve operational efficiency. While there has been considerable discussion about how carriers can leverage AI, most companies are just adding AI to their toolset as an additional expense. Exzeo Group, Inc. is doing something different. Exzeo Group, Inc. is using AI to build solutions. Let me give you a concrete example. Starting April 1, insurance regulators in Florida implemented new wind mitigation requirements. These updated regulations, which include additional documentation requirements, create a meaningful operational burden for all carriers. Insurers must also find the talent and expertise needed to manage these new requirements. These challenges not only place additional strains on operations, but also introduce incremental costs. While many in the industry view these changes as a challenge, Exzeo Group, Inc. saw them as an opportunity. The Exzeo Group, Inc. team was able to combine its deep expertise in building solutions with internally developed AI tools to design and deploy a solution in less than a month. It is called WinForm Pro. By eliminating manual workflows, WinForm Pro streamlines the process and significantly reduces the operational and frictional burden on carriers. In fact, multiple carriers outside the Exzeo Group, Inc. platform are already testing WinForm Pro, and one carrier has already signed up to use it. What this demonstrates is that by combining AI capabilities with our in-house talent, we can quickly identify challenges and design and deploy solutions in a highly cost-effective manner. We believe we are only beginning to tap into the broader opportunities that this approach can create. In summary, we already have a profitable platform that is a strong generator of cash flow and continues to scale. At the same time, we are identifying and solving new industry challenges that can lead to additional revenue streams in the future. We will now open the call for questions. Operator: Thank you. We will now open the call for questions. Your first question comes from the line of Matthew Carletti with Citizens Capital Markets. Your line is now open. Matthew Carletti: Hey, thank you. Maybe I would start with a two-part question. First, can you update us on the newer clients you have announced the past few quarters—how the onboarding and integration and getting up to speed is going? Then alongside that, how the pipeline is looking, conversations and so forth for customers eight, nine, and beyond? Kevin Mitchell: Sure, Matt. From a new client standpoint, or ones that we have recently onboarded, it is going as planned. As I think Suela and I both mentioned, from a standing start in December to around $105 million of premium on the platform, I think that is a strong uptake when you consider that those two clients—one was signed in September and the other in October. So all is on solid footing there. As far as new clients, the pipeline continues to build. As we mentioned last quarter, we have team members that are focused and, each day and each week, are building on that pipeline. We feel confident that we will continue to execute and bring on new clients in standard fashion. Matthew Carletti: Great. And then if I could just maybe follow up for Pareshbhai. You talked a bit about WinForm Pro. Can you help us with the order of magnitude—what that can mean if it gets traction in terms of revenue, how it is priced, whether based on premiums, things like that? And secondly, are you viewing this as a one-off product, or more as a hook or opportunity to bring potential new customers into the broader Exzeo Group, Inc. ecosystem? Pareshbhai Patel: Yes, Matt. The product, because of the need the industry had, was built very quickly, and it solves a current problem that everybody is facing. As such, the way we have deployed it, it is very inexpensive—about 10% of what it would cost to do manually. What it is doing is opening doors for new carriers to appreciate what Exzeo Group, Inc. is capable of. From that sense, it is a very good way to further spread the Exzeo Group, Inc. brand. In terms of revenue, I do not think this in and of itself, especially because of the prices we are charging, is going to be meaningful in terms of revenue. I do not think Suela is adjusting her financial models because of it. But the big thing is how this was developed, the speed at which it was developed, and how it is being deployed. This is monetizing AI capabilities in a manner that both reduces our expenses to develop by orders of magnitude and enhances value to potential clients. It is a real thing that we were not even thinking of when we had the last earnings call two months ago. To be fair, our developers have been monitoring developments in the AI space for almost three years at this point, pretty much since the week ChatGPT came out, but it is about waiting for the moment when it is ready for prime time. With WinForm Pro, we are demonstrating how AI can be used and utilized and turned into a product and turned into revenue—all in two months. Matthew Carletti: That is great color. Thank you very much. Operator: Your next question comes from the line of Terrell Tillman with Securities. Your line is now open. Terrell Tillman: Hey, good afternoon, Pareshbhai, Kevin, Suela, and William. My first question builds on the last set of questions about AI. It seems like almost daily something dramatic is happening, and we are hearing CEOs say they are spending billions of dollars on this. Beyond the ability to light up new solutions really quickly like WinForm, is AI becoming a call to arms for even traditional insurers or upstarts that is driving incremental sales funnel activity because they need to transform the whole business—underwriting, policy management, etc.? Are you seeing any incremental tailwinds from “AI is the real deal and we need to get going yesterday”? And then I have a couple of follow-ups. Pareshbhai Patel: Terry, yes, all of those possibilities in underwriting, quoting, claims management, etc., have always been part of the conversation—AI could do things. The issue has always been how do you do it? A lot of insurance carriers probably want a packaged solution as opposed to a “code your own” solution. That was my point earlier: just because it is available does not mean everybody can assemble it and turn it into a solution they can use repeatedly. It turns out the Exzeo Group, Inc. technology team can, and they do it in a controlled manner—being able to design, deploy, and maintain things at scale is quite a need that still exists. We are starting to see a unique niche that we can fill. In theory, anybody can fill that niche, but in theory, anybody could have built a copy of Google search—Microsoft even tried with all of its resources, but Bing does not quite cut it. Having the idea and being able to put it into production are two different things. Terrell Tillman: Got it. Maybe just one and a half more questions. Kevin, you were talking about investing in 20 FTEs. I know you hired a key long-term veteran in the industry. Is that team built out now, or does it have enough substance and size, and how are they doing? I know it is early days, but any progress there? And then a model question for Suela. Kevin Mitchell: Yes, Terry, we continue to build the team—hence the 20 folks since January 1. We continue to build around them to drive growth and drive ever-increasing pipeline activity. Pareshbhai Patel: Terry, to put a different context around this, I am sure you have been on lots of earnings calls, and the recurring theme has been: add AI—license stuff—and run up an expense, and cut headcount. We are doing the opposite. We are using AI as a revenue generator and a lead generator. We are already monetizing it. Secondly, Kevin is adding people. To be fair, it is not an apples-to-apples comparison because we started from such a lean, efficient operation. The people Kevin is adding should have a material impact on accelerating our growth rate going forward. That is why I am excited that he is adding people. Terrell Tillman: For sure. I will turn it over after this, but I really wanted to get this in. Managed premium and ARR were strong in the quarter—well ahead of our expectations. I know it takes time for that to move to revenue from operations and revenue. Can you share anything about how that played out in 1Q versus what you thought? Or commentary around timing from that large add of premium in 1Q as we move into 2Q and beyond? Thanks again. Suela Bulku: Thank you for the question, Terry. The timing of when managed premium gets added to our platform obviously matters. What we saw in Q1 is that the new additional premium, especially from the new client, joined the platform mid to late quarter. Also keep in mind that we recognize upfront about 25–30% of the revenue and the remainder is recognized over time. That said, new premium is still not a large enough share of our total managed premium currently on our platform to materially distort quarterly revenue on its own. On a normalized basis, you can think of the ARR conversion into revenue as generally fairly flat and consistent over the quarters. Just a reminder that we do have some seasonality on the margin based on the renewal cycle of the policy and the product mix, and then how we recognize revenue along with expenses. Historically, you will see higher-margin renewals tend to be in the middle of the year, which drives the Q2 peak that we have seen historically. Terrell Tillman: Okay. Thanks. Operator: Thank you. Your next question comes from the line of Dylan Becker with William Blair. Your line is now open. Dylan Becker: Hey, everybody, appreciate it. Maybe, Pareshbhai—double-clicking on the prior points, or for Kevin as well—on the opportunity to dedicate more resources given the opportunity at hand and the ability for AI to superpower that in some context. I know the cadence of getting WinForm into market is notable. How do you think about the balance of compounding the existing platform value proposition to compel more customers to come online, while also scaling that outside of Florida and into new territories and regions—kind of a breadth-and-depth question from a platform functionality perspective? Pareshbhai Patel: Great question. That is why, in our prepared remarks, we tried to talk about plans and growth for the existing platform and adding managed premium in that fashion, while at the same time exploring these new capabilities and door-opening projects we are doing. They will not have impact immediately, but they will create long-term opportunity and differentiation for Exzeo Group, Inc. over other solutions in the marketplace. We have short-term, medium-term, and long-term initiatives. From my perspective, the long-term things are the most exciting as to what they could mean down the road. If you think of WinForm Pro as a universal way of filling out this OIR requirement, it is very specific. But the same architecture and method we developed could be used to create a digital agent for reviewing claims, a digital agent for compliance—which is a big thing with insurance carriers—or a digital agent for generating a rate filing. We can see that at this point, and we know how to use AI to develop those tools and capabilities. The beauty of AI is it does not mean it will only work on the Exzeo Group, Inc. platform—one of these agents could also work on any other software platform that a carrier might have implemented. Think about what that opens up as a door. Again, very early days. We did not want to talk about AI in a material way previously—not because we were not aware or doing anything—but because we wanted to speak when we actually had something. WinForm Pro shows we have something, and it is only a sample of what is to come. Dylan Becker: Very helpful. Excited to keep an ear out for what is to come. Thank you, Pareshbhai. Maybe for Suela on the premium growth dynamic—still very impressive. You said you expect it to be flat next quarter and reiterated the full-year outlook. Could you remind us of the seasonal components? And, given the Florida exposure, any broader update on how underwriting cycles are impacted or how carriers think through those as we enter hurricane season—anything to be aware of from a seasonal perspective? Suela Bulku: That is a very good question. As I mentioned, we expect managed premium to remain stable next quarter, which is consistent with the growth pattern of our client base. Our clients are primarily based in Florida, where growth is usually more back-end weighted, so you tend to see managed premium growth more in the fourth quarter. Pareshbhai Patel: Yes, you have it right in the sense that it is not set by us—it is set by clients. We are just explaining what clients typically do and what their normal cadence is. Dylan Becker: Very helpful. Thank you. Operator: Again, if you would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. At this time, this concludes our question and answer session. I would now like to turn the call back over to Pareshbhai Patel, who has a few closing remarks. Pareshbhai Patel: Thank you. I want to thank everyone who joined the call today, and I also want to thank the Exzeo Group, Inc. team for their continued hard work. Before we wrap up, I should provide a quick update on the Rule 10b5-1 purchase plan that is underway for me to buy shares. As of today, I have bought about 72 thousand shares since the plan went into effect a couple of months ago, and it still continues. I look forward to it being filled out, hopefully sometime in the current quarter. With that, we will end the call. Thank you. 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See the 10 stocks » *Stock Advisor returns as of May 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Exzeo (XZO) Q1 2026 Earnings Transcript was originally published by The Motley Fool