Exzeo Announces Fourth Quarter and Full Year 2025 Financial Results

Managed Premium1 up 139% year-over-year to $1.39 billion; Revenue up 62% year-over-year to $217.0 million; Pre-Tax Income increased 213% to $110.3 million Exzeo Group, Inc. (NYSE:XZO) today announced financial results for the fourth quarter and full year ended December 31, 2025. "Our full year performance underscores the strength and scalability of the Exzeo Platform," said Paresh Patel, Exzeo's Chairman and Chief Executive Officer. "Since completing our IPO, we’ve deepened our relationships with existing carrier partners and expanded with new customers, while delivering strong revenue growth and solid profitability." Fourth Quarter 2025 Highlights (Comparisons to Fourth Quarter 2024) Revenue increased 20% to $53.3 million from $44.5 million, driven primarily by growth in underwriting and management services from the expansion in the scope of services provided at the beginning of 2025.Net income from continuing operations was $22.0 million, and basic and diluted earnings per share 2 were $0.25, compared with $11.7 million and $0.15 in the prior year period.Managed Premium increased 139% to $1.39 billion from $580.3 million, reflecting continued adoption of Exzeo's Insurance-as-a-Service platform.Annual Recurring Revenue 3 increased to $214.9 million as of December 31, 2025, up from $138.5 million as of December 31, 2024, highlighting strong growth in recurring revenue streams.Adjusted EBITDA 4 increased to $28.0 million from $16.8 million, and Adjusted EBITDA Margin 4 increased to 55% from 46%, underscoring scalability and cost efficiency.A sixth insurance company joined the Exzeo platform in the fourth quarter. Full Year 2025 Highlights (Comparisons to Full Year 2024) Revenue increased 62% to $217.0 million from $133.9 million, driven primarily by growth in underwriting and management services from our existing customer base and expansion in the scope of services provided to customers at the beginning of 2025.Net income from continuing operations was $82.7 million, and basic and diluted earnings per share were $0.99, compared with $26.1 million, and $0.20 in the prior year.Adjusted EBITDA increased to $111.5 million from $44.0 million and Adjusted EBITDA Margin increased to 54% from 37%.Cash from operating activities increased to $100.3 million from $49.3 million. As a result, Free Cash Flow 4 increased to $97.5 million from $45.9 million. Liquidity and Capital Resources As of December 31, 2025, Exzeo had: Cash and cash equivalents of $305.4 million, compared with $54.5 million as of December 31, 2024; andWorking capital of $241.4 million, compared to $10.9 million as of December 31, 2024. Conference Call Information: Exzeo Group management will host a conference call today, February 25, 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 using 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: (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 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 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 non-recurring 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. 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 Annual Report on Form 10-K for the year ended December 31, 2025, when filed. Should any risks or uncertainties develop into actual events, these developments could have material adverse effects on the company's business, financial condition and results of operations. Exzeo Group, Inc. disclaims all obligations to update any forward-looking statements. EXZEO GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) As of December 31, (in thousands, except share and per share amounts) 2025 2024 Assets: Current assets: Cash and cash equivalents $ 305,372 $ 54,502 Accounts receivable 2,906 — Receivable from related parties 11,295 2,581 Prepaid expense 1,483 609 Current contract cost assets 4,722 6,397 Income taxes receivable — 3,099 Other current assets 43 42 Total current assets 325,821 67,230 Non-current assets: Property and equipment, net 10,662 10,752 Operating lease right-of-use assets 6,884 8,052 Non-current contract cost assets 1,118 3,132 Deferred income taxes, net 2,975 — Other assets 274 275 Total non-current assets 21,913 22,211 Total assets $ 347,734 $ 89,441 Liabilities and Stockholders' Equity: Current liabilities: Current contract liabilities $ 70,893 $ 47,210 Commissions payable 4,605 4,320 Accounts payable and accrued liabilities 2,950 2,134 Operating lease liabilities 2,413 2,132 Income taxes payable 2,455 — Payable to related parties 1,073 580 Total current liabilities 84,389 56,376 Non-current liabilities: Non-current contract liabilities 3,567 8,366 Operating lease liabilities 4,832 6,219 Deferred income taxes, net — 2,121 Other liabilities 790 852 Total non-current liabilities 9,189 17,558 Total liabilities 93,578 73,934 Commitments and contingencies Stockholders' equity: Common stock ($0.001 par value, 184,000,000 shares authorized, 90,926,720 and 82,810,089 shares issued and outstanding as of December 31, 2025 and 2024, respectively) 91 83 Additional paid-in capital 228,647 72,755 Retained earnings (accumulated deficit) 25,418 (57,331 ) Total stockholders' equity 254,156 15,507 Total liabilities and stockholders' equity $ 347,734 $ 89,441 EXZEO GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) Three Months Ended December 31, Years Ended December 31, (in thousands, except per share amounts) 2025 2024 2025 2024 Revenue $ 53,316 $ 44,533 $ 216,980 $ 133,948 Cost of revenue 18,442 25,831 85,957 80,739 Gross profit 34,874 18,702 131,023 53,209 Operating expenses: Selling, general and administrative 6,158 1,537 15,724 8,343 Research and development 1,761 1,496 8,830 6,514 Depreciation and amortization 141 90 479 335 Total operating expenses 8,060 3,123 25,033 15,192 Operating income 26,814 15,579 105,990 38,017 Investment income 2,039 209 4,302 548 Interest expense — (8 ) — (3,329 ) Income from continuing operations, before taxes $ 28,853 $ 15,780 $ 110,292 $ 35,236 Income tax expense from continuing operations 6,869 4,080 27,543 9,168 Income from continuing operations, after taxes $ 21,984 $ 11,700 $ 82,749 $ 26,068 Income from discontinued operations, before taxes $ — $ — $ — $ 25,854 Income tax expense from discontinued operations — — — 6,601 Income from discontinued operations, after taxes $ — $ — $ — $ 19,253 Net income $ 21,984 $ 11,700 $ 82,749 $ 45,321 Dividends on preferred stock — — — (10,149 ) Net income attributable to common stockholders $ 21,984 $ 11,700 $ 82,749 $ 35,172 Basic and diluted earnings per share from continuing operations $ 0.25 $ 0.15 $ 0.99 $ 0.20 Basic and diluted earnings per share from discontinued operations $ — $ — $ — $ 0.24 Basic and diluted earnings per share $ 0.25 $ 0.15 $ 0.99 $ 0.44 EXZEO GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended December 31, Years Ended December 31, (in thousands) 2025 2024 2025 2024 Net income $ 21,984 $ 11,700 $ 82,749 $ 45,321 Other comprehensive income: Change in unrealized gains on investments: Net unrealized gains arising during the period — — — 307 Net change in unrealized gains — — — 307 Deferred income taxes — — — (77 ) Other comprehensive income — — — 230 Comprehensive income $ 21,984 $ 11,700 $ 82,749 $ 45,551 EXZEO GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (Unaudited) Years Ended December 31, (in thousands) 2025 2024 Operating activities: Net income $ 82,749 $ 45,321 Less: Net income from discontinued operations — (19,253 ) Net income from continuing operations 82,749 26,068 Adjustments to reconcile net income to cash provided by operating activities: Stock-based compensation 2,636 3,379 Depreciation and amortization 2,934 2,361 Deferred income taxes (5,096 ) 1,525 Foreign currency remeasurement losses 173 132 Changes in operating assets and liabilities: Accounts receivable (2,906 ) — Receivable from related parties (8,221 ) (1,836 ) Prepaid expenses (874 ) (157 ) Contract cost assets 3,689 (3,083 ) Income taxes payable 5,554 4,224 Contract liabilities 18,884 15,496 Commissions payable 285 407 Accounts payable and accrued liabilities 434 442 Other liabilities (33 ) 339 Other assets (1 ) (125 ) Operating lease 91 94 Cash provided by operating activities 100,298 49,266 Investing activities: Capital expenditures (2,844 ) (3,334 ) Cash used in investing activities (2,844 ) (3,334 ) Financing activities: Redemption of redeemable preferred stock — (100,000 ) Proceeds from issuance of notes payable, related party — 100,000 Proceeds from initial public offering, net 156,205 — Payments of issuance costs (1,069 ) — Repurchase of common stock (1,490 ) (481 ) Repayment of long-term debt — (2,994 ) Dividends paid on redeemable preferred stock — (2,923 ) Cash provided by (used in) financing activities 153,646 (6,398 ) Effect of exchange rate changes on cash (230 ) (87 ) Cash provided by continuing operations 250,870 39,447 Cash flows from discontinued operations: Cash provided by operating activities from discontinued operations — 142,645 Cash used in investing activities from discontinued operations — (189,186 ) Cash provided by (used in) discontinued operations — (46,541 ) Increase (decrease) in cash, cash equivalents, and restricted cash 250,870 (7,094 ) Cash, cash equivalents, and restricted cash at beginning of period - continuing operations 54,502 15,055 Cash, cash equivalents, and restricted cash at beginning of period - discontinued operations — 46,541 Cash, cash equivalents, and restricted cash at beginning of period 54,502 61,596 Cash, cash equivalents, and restricted cash at end of period - continuing operations 305,372 54,502 Cash, cash equivalents, and restricted cash at end of period - discontinued operations — — Cash, cash equivalents, and restricted cash at end of period $ 305,372 $ 54,502 Non-cash investing and financing activities: Extinguishment of notes payable $ — $ 155,000 Capital contribution from parent $ 34 $ 2,615 Supplemental disclosure of cash flow information: Cash paid for income taxes $ 34,223 $ 14,261 Cash paid for interest $ — $ 3,472 EXZEO GROUP, INC. AND SUBSIDIARIES Basic and Diluted Earnings Per Share (Unaudited) A summary of the numerator and denominator of basic and diluted earnings per common share from continuing operations is as follows: Three Months Ended December 31, Years Ended December 31, (in thousands, except per share amounts) 2025 2024 2025 2024 Numerator: Income from continuing operations, after tax $ 21,984 $ 11,700 $ 82,749 $ 26,068 Less: Dividends on preferred stock — — — (10,149 ) Less: Income attributable to participating securities from continuing operations (809 ) (249 ) (3,751 ) (550 ) Income attributable to common stockholders from continuing operations $ 21,175 $ 11,451 $ 78,998 $ 15,369 Denominator: Weighted-average basic shares outstanding 84,443 78,690 80,171 77,494 Weighted-average diluted shares outstanding 84,443 78,690 80,171 77,494 Basic and diluted earnings per share from continuing operations $ 0.25 $ 0.15 $ 0.99 $ 0.20 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 Income from continuing operations, after taxes adjusted to exclude income tax expense, interest expense, investment income, depreciation and amortization, and stock-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 Income from continuing operations, after taxes to Adjusted EBITDA is as follows: Three Months Ended December 31, Years Ended December 31, (in thousands) 2025 2024 2025 2024 Income from continuing operations, after taxes $ 21,984 $ 11,700 $ 82,749 $ 26,068 Income tax expense 6,869 4,080 27,543 9,168 Interest expense — 8 — 3,329 Investment income (2,039 ) (209 ) (4,302 ) (548 ) Depreciation and amortization 726 659 2,891 2,562 Stock-based compensation 476 551 2,636 3,379 Adjusted EBITDA $ 28,016 $ 16,789 $ 111,517 $ 43,958 Adjusted Revenue We define Adjusted Revenue as the portion of total revenue earned through services delivered directly via our proprietary platform technology. This metric excludes revenue associated with services primarily within claims management that are outsourced to a subsidiary of HCI. Although this revenue is recognized on a gross basis under GAAP because we are considered the principal in the transaction, the economics are largely neutral, as the related costs incurred from outsourced service providers closely match the revenue recognized. Management believes Adjusted Revenue provides investors with useful insight into the performance and scalability of our core platform services and reflects the revenue generated from internally delivered operations, excluding variability associated with outsourced service arrangements. This non-GAAP measure should not be considered in isolation or as a substitute for total revenue or any other performance measure calculated in accordance with GAAP. The reconciliation of Revenue to Adjusted Revenue is as follows: Three Months Ended December 31, Years Ended December 31, (in thousands) 2025 2024 2025 2024 Revenue $ 53,316 $ 44,533 $ 216,980 $ 133,948 Less: Outsourced claims fees 2,272 8,338 11,167 13,779 Adjusted Revenue $ 51,044 $ 36,195 $ 205,813 $ 120,169 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 reconciliation of Adjusted EBITDA Margin for the periods presented is as follows: Three Months Ended December 31, Years Ended December 31, (in thousands, except percentages) 2025 2024 2025 2024 Numerator: Adjusted EBITDA $ 28,016 16,789 $ 111,517 $ 43,958 Denominator: Adjusted Revenue 51,044 36,195 205,813 120,169 Adjusted EBITDA Margin 54.9 % 46.4 % 54.2 % 36.6 % 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: Years Ended December 31, (in thousands) 2025 2024 Cash provided by operating activities $ 100,298 $ 49,266 Less: Capital expenditures 2,844 3,334 Free Cash Flow $ 97,454 $ 45,932 Source: Exzeo Group, Inc.