Exzeo Announces Fourth Quarter and Full Year 2025 Financial Results

TAMPA, Fla.--( BUSINESS WIRE)--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)

Full Year 2025 Highlights (Comparisons to Full Year 2024)

Liquidity and Capital Resources

As of December 31, 2025, Exzeo had:

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

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

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)

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

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

—

)

—

(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

)

(125

)

Operating lease

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

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

—

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