Exzeo Announces Third Quarter 2026 Financial Results
Exzeo Group, Inc. (XZO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Exzeo Announces Third Quarter 2026 Financial Results Pre-Tax Income of $29.8 million; Earnings per share 1 of $0.25; Managed Premium 2 of $1.4 billion TAMPA, Fla.--(BUSINESS WIRE)--November 4, 2026 - Exzeo Group, Inc. (NYSE:XZO) today announced financial results for
How this was made
The 30-second read
Why it matters
The earnings release provides fresh data on revenue, profitability, and cash position, offering traders a basis to adjust positions.
Market read
First‑time disclosure of Q3 numbers and buyback details gives traders actionable insight into Exzeo's performance and capital allocation.
What to watch
Potential exposure to catastrophe‑related claim volatility and concentration in Florida policies could affect future earnings.
Third-quarter revenue was in line with the prior-year period at $55.2 million, while net income increased to $22.3 million and Managed Premium increased to $1.4 billion.
Core platform indicators improved, including Adjusted Revenue, Managed Premium, Annual Recurring Revenue and net income, but quarterly Adjusted EBITDA and Adjusted EBITDA Margin declined as the company invested in workforce and operational infrastructure.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue (three months ended September 30)GAAP | $55.19M | – | – |
| Cost of revenue (three months ended September 30)GAAP | 20.94M | – | – |
| Gross profit (three months ended September 30)GAAP | 34.25M | – | – |
| Selling, general and administrative expense (three months ended September 30)GAAP | 5.56M | – | – |
| Research and development expense (three months ended September 30)GAAP | 2.38M | – | – |
| Depreciation and amortization expense (three months ended September 30)GAAP | 149K | – | – |
| Total operating expenses (three months ended September 30)GAAP | 8.10M | – | – |
| Operating income (three months ended September 30)GAAP | 26.15M | – | – |
| Interest income (three months ended September 30)GAAP | 3.34M | – | – |
| Other income, net (three months ended September 30)GAAP | 340K | – | – |
| Income before income taxes (three months ended September 30)GAAP | 29.83M | – | – |
| Income tax expense (three months ended September 30)GAAP | 7.49M | – | – |
| Net income (three months ended September 30)GAAP | $22.34M | – | – |
| Basic and diluted earnings per share (three months ended September 30)GAAP | $ 0.25 | – | – |
| Comprehensive income (three months ended September 30)GAAP | $16.30M | – | – |
| Adjusted Revenue (three months ended September 30)non-GAAP | $53.88M | – | – |
| Adjusted EBITDA (three months ended September 30)non-GAAP | $27.62M | – | – |
| Adjusted EBITDA Margin (three months ended September 30)non-GAAP | 51.3 % | – | – |
| Cash provided by operating activities (three months ended September 30)GAAP | $31.72M | – | – |
| Capital expenditures (three months ended September 30)other | 334K | – | – |
| Free Cash Flow (three months ended September 30)non-GAAP | $31.39M | – | – |
| Revenue (nine months ended September 30)GAAP | $168.5M | – | – |
| Gross profit (nine months ended September 30)GAAP | 103.8M | – | – |
| Operating income (nine months ended September 30)GAAP | 79.69M | – | – |
| Income before income taxes (nine months ended September 30)GAAP | 88.84M | – | – |
| Net income (nine months ended September 30)GAAP | $66.02M | – | – |
| Basic and diluted earnings per share (nine months ended September 30)GAAP | $ 0.73 | – | – |
| Adjusted Revenue (nine months ended September 30)non-GAAP | $164.2M | – | – |
| Adjusted EBITDA (nine months ended September 30)non-GAAP | $84.10M | – | – |
| Adjusted EBITDA Margin (nine months ended September 30)non-GAAP | 51.2 % | – | – |
| Cash provided by operating activities (nine months ended September 30)GAAP | $72.61M | – | – |
| Free Cash Flow (nine months ended September 30)non-GAAP | $71.74M | – | – |
| Managed Premiumother | $1.4B | – | – |
| Annual Recurring Revenueother | $205.8M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- During the third quarter, Exzeo repurchased 410,585 shares of common stock for approximately $7.0 million under its May 2026 and August 2026 Share Repurchase Programs.
- The May 2026 Share Repurchase Program was completed on July 8, 2026.
- Approximately $20.0 million remained available under the August 2026 Share Repurchase Program as of September 30, 2026.
- Repurchase of common stock was $ 17,066 (in thousands) for the nine months ended September 30, 2026.
- The May 2026 and August 2026 programs authorized the repurchase of up to $12.0 million and $25.0 million, respectively, of Exzeo's common stock.
What drove it
- Adjusted Revenue increased to $53.9 million from $52.4 million due to growth in underwriting and management services from new and existing customers.
- Managed Premium increased to $1.4 billion from $1.2 billion, reflecting continued growth in managed policies from new and existing customers on the Exzeo platform.
- Annual Recurring Revenue increased to $205.8 million from $192.4 million, reflecting growth in Managed Premium and related recurring fee base.
- The company stated that it continued to invest in strategic initiatives, including expanding its workforce and enhancing operational infrastructure.
- The decrease in nine-month operating cash flow and Free Cash Flow was primarily due to the timing of business growth and associated cash collections, partially offset by higher net income.
Concerns
- Quarterly revenue was in line with the prior-year period at $55.2 million.
- Quarterly Adjusted EBITDA was $27.6 million compared with $28.7 million.
- Quarterly Adjusted EBITDA Margin was 51% compared with 55% in the prior-year period.
- Nine-month Adjusted EBITDA Margin was 51% compared with 54% in the prior-year period.
- The company identified current dependence on HCI Group, Inc. for substantially all of its revenues as a risk.
What to watch
- Growth in underwriting and management services from new and existing customers.
- Managed Premium and Annual Recurring Revenue growth.
- The effect of workforce and operational-infrastructure investments on Adjusted EBITDA Margin.
- The timing of business growth and associated cash collections.
- Use of the approximately $20.0 million remaining under the August 2026 Share Repurchase Program.
Balance sheet and cash flow
- Cash and cash equivalents were $ 116,404 (in thousands) as of September 30, 2026, compared with $ 305,372 (in thousands) as of December 31, 2025.
- Fixed-maturity securities, available-for-sale, at fair value were 233,779 (in thousands) as of September 30, 2026.
- Cash, cash equivalents and investments totaled $350.2 million, consisting of $116.4 million in cash and cash equivalents and $233.8 million in available-for-sale fixed-maturity securities.
- Total assets were $ 397,494 (in thousands) as of September 30, 2026, compared with $ 347,734 (in thousands) as of December 31, 2025.
- Total liabilities were 99,391 (in thousands) as of September 30, 2026, compared with 93,578 (in thousands) as of December 31, 2025.
- Total shareholders' equity was 298,103 (in thousands) as of September 30, 2026, compared with 254,156 (in thousands) as of December 31, 2025.
- Cash provided by operating activities was $ 72,611 (in thousands) for the nine months ended September 30, 2026, compared with $ 89,017 (in thousands) in the prior-year period.
- Capital expenditures were 870 (in thousands) for the nine months ended September 30, 2026, compared with 2,441 (in thousands) in the prior-year period.
- Purchase of available-for-sale fixed-maturity securities was (243,055 ) (in thousands) for the nine months ended September 30, 2026.
- Net (decrease) increase in cash and cash equivalents was (188,968 ) (in thousands) for the nine months ended September 30, 2026, compared with 86,417 (in thousands) in the prior-year period.
Analysis
Exzeo reported third-quarter GAAP revenue of $ 55,186 (in thousands), essentially unchanged from $ 55,166 (in thousands) in the prior-year quarter. The company’s platform-focused Adjusted Revenue increased to $ 53,885 (in thousands) from $ 52,357 (in thousands), which management attributed to underwriting and management-services growth from new and existing customers. Managed Premium increased to $1.4 billion from $1.2 billion, while Annual Recurring Revenue increased to $205.8 million from $192.4 million, indicating expansion in managed policies and the related recurring fee base.
Profitability was mixed. Third-quarter net income increased to $ 22,345 (in thousands) from $ 21,151 (in thousands), while basic and diluted earnings per share remained $ 0.25 in both periods. Operating income declined to 26,150 (in thousands) from 27,252 (in thousands), and Adjusted EBITDA declined to $ 27,617 (in thousands) from $ 28,732 (in thousands). Adjusted EBITDA Margin fell to 51.3 % from 54.9 %, with the company citing investment in strategic initiatives, workforce expansion and operational infrastructure.
The nine-month results retained positive growth in reported revenue and profit. Revenue was $ 168,507 (in thousands), compared with $ 163,664 (in thousands), while Adjusted Revenue was $ 164,183 (in thousands), compared with $ 154,769 (in thousands). Net income increased to $ 66,020 (in thousands) from $ 60,765 (in thousands), but nine-month Adjusted EBITDA Margin declined to 51.2 % from 54.0 %. The disclosed figures show that the revenue mix excluding outsourced claims fees improved while investment spending weighed on adjusted profitability.
Cash generation was lower over the nine-month period. Cash provided by operating activities was $ 72,611 (in thousands), compared with $ 89,017 (in thousands), and Free Cash Flow was $ 71,741 (in thousands), compared with $ 86,576 (in thousands). Management attributed the decrease primarily to the timing of business growth and associated cash collections, partially offset by higher net income. At September 30, cash, cash equivalents and investments totaled $350.2 million, including $116.4 million of cash and cash equivalents and $233.8 million of available-for-sale fixed-maturity securities.
Capital allocation included repurchases of 410,585 shares for approximately $7.0 million during the third quarter. The May 2026 Share Repurchase Program was completed on July 8, 2026, and approximately $20.0 million remained under the August 2026 Share Repurchase Program as of September 30, 2026. The release provided no forward financial guidance, leaving the next reported indicators of demand, margin progression, cash collections and repurchase activity as the principal disclosed items to follow.
Management, verbatim
AI will reshape the insurance industry, not just in expense ratios but in how coverage is bought and sold. That creates a real opening for Exzeo to expand its revenue base by designing and deploying new offerings with carrier partners. We’re starting from a strong position: we have the team, the technology and the balance sheet to pursue this while remaining solidly profitable.
Paresh Patel, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Prior guidance was not provided.
- Segment revenue, segment comparisons and segment drivers were not reported.
- GAAP gross margin was not reported.
- GAAP operating margin was not reported.
- GAAP net income margin was not reported.
- Income tax rate was not reported.
- Debt balances were not reported.
- Dividend information was not reported.
- Prior-quarter comparisons were not reported for the disclosed metrics.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Exzeo Group, a NYSE‑listed insurtech firm, filed an 8‑K announcing its Q3 2026 financial results and a share repurchase program.
Ticker impact
Exzeo Group reported Q3 2026 results with revenue $55.2M, net income $22.3M and a $7M share repurchase, the first public disclosure of these numbers.
slight upside as the buyback tranche and stable earnings may support the stock
Numbers were not previously public; the share repurchase signals confidence, while revenue growth is modest, limiting upside.
Market effects
Highlights continued growth in the insurance‑tech sector and may encourage investors to review other P&C SaaS providers.
Limited to U.S. tech/insurtech niche; no broad regional effect.
Minimal global impact; primarily relevant to investors tracking niche insurance‑technology stocks.
Counterpoint
Given modest revenue growth and a slight decline in adjusted EBITDA margin, the stock may be overvalued despite the buyback.
Key entities
- companyExzeo Group, Inc.
Insurtech provider reporting Q3 2026 results.
- executiveParesh Patel
Chairman and CEO of Exzeo Group, quoted on AI impact.
