Managed Premium¹ up 142.1% year-over-year to $1.2 billion;
Revenue up 90% to $55.2 million year-over-year;
Pre-Tax Income Increases to $28.4 million, up from $6.9 million

TAMPA, Fla. -- (Business Wire)

Exzeo Group, Inc. (NYSE:XZO) today announced financial results for the quarter ended September 30, 2025.

"This quarter, our carrier partners delivered industry-leading financial results supported by their continued utilization of the Exzeo Platform, demonstrating the power of the platform and the scalability of our Insurance-as-a-Service model,” said Paresh Patel, Exzeo's Chairman and Chief Executive Officer. “The result was a strong third-quarter performance for Exzeo, highlighted by exceptional revenue growth, meaningful margin expansion, and robust cash generation."

Third Quarter 2025 Highlights (Comparisons to Third Quarter 2024)

• Revenue increased 90% to $55.2 million from $29.1 million, driven primarily by growth in underwriting and management services from our existing customer base and expansion of the scope of services provided to customers at the beginning of 2025.
• In the third quarter, a fifth insurance company joined the Exzeo platform, with a sixth insurance company joining the platform in the fourth quarter.
• Gross profit increased to $33.8 million from $11.1 million, reflecting strong operating leverage and improved revenue mix.
• Operating income increased $20.6 million to $27.3 million from $6.7 million.
• Net income increased to $21.2 million, or $0.25 per diluted share based on 78.7 million diluted weighted-average shares outstanding, compared with $5.3 million, or $0.06 per diluted share based on 78.7 million diluted weighted-average shares outstanding in the prior period.
• Adjusted EBITDA² increased to $28.7 million from $8.8 million, and Adjusted EBITDA margin² increased to 54.9% from 32.1%, underscoring scalability and cost efficiency.
• Annual Recurring Revenue³ ("ARR") increased to $192.4 million as of September 30, 2025, up from $117.6 million as of September 30, 2024, highlighting strong growth in recurring revenue streams.
• Managed Premium¹ increased 142.1% to $1.2 billion from $496.3 million, reflecting continued adoption of Exzeo's Insurance-as-a-Service platform.

Year-to-Date 2025 Highlights (Comparisons to Year-to-Date 2024)

• Revenue increased 83% to $163.7 million from $89.4 million, driven primarily by growth in underwriting and management services from our existing customer base and expansion of the scope of services provided to customers at the beginning of 2025.
• Gross profit increased to $96.1 million from $34.5 million, reflecting improved operating leverage and favorable revenue mix.
• Operating income increased $56.8 million to $79.2 million from $22.4 million.
• Net income from continuing operations increased to $60.8 million, or $0.73 per diluted share based on 78.7 million diluted weighted-average shares outstanding, compared with $14.4 million or $0.05 per diluted share based on 77.1 million diluted weighted-average shares outstanding in the prior period.
• Adjusted EBITDA² increased to $83.5 million from $27.2 million, and Adjusted EBITDA margin² increased to 54.0% from 32.4%.
• Net cash provided by operating activities increased to $89.0 million from $29.3 million, highlighting strong cash generation.

Liquidity and Capital Resources

As of September 30, 2025, Exzeo had:

• Cash and cash equivalents of $140.9 million, compared with $54.5 million as of December 31, 2024; and
• Working capital of $68.7 million, compared to $10.9 million as of December 31, 2024.

Conference Call Information:

Exzeo Group management will host a conference call today December 10, 2025 at 4:45 p.m. Eastern time (1:45 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: +1 (646) 307-1963
Conference ID: 3856391
Webcast Link

A replay of the event will also be available via the Investor Information section of the Exzeo Group website at investors.exzeo.com.

End Notes

1. Managed Premium is a key operating measure of Exzeo that is defined as the aggregate gross dollar value of in-force premiums processed, managed, or administered by Exzeo's software solutions as of period end, excluding associated policy fee income.
2. Adjusted EBITDA, Adjusted Revenue, and Adjusted EBITDA Margin are non-GAAP financial measures. Please see discussion of non-GAAP financial measures at the end of this press release for more information.
3. Annual Recurring Revenue ("ARR") is a key operating measure of Exzeo that is 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, and excludes non-recurring revenue such as catastrophe services.

About Exzeo Group, Inc.

Exzeo Group, Inc. is a leading innovator in technology solutions that are 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 https://www.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 the our Quarterly Report on Form 10-Q for the quarter ended September 30, 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.

Use of Non-GAAP Financial Measures

In addition to results determined in accordance with accounting principles generally accepted in the United States ("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 EBITDA Margin, and Adjusted Revenue. 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.

In this press release, Exzeo presents certain financial measures that are not prepared in accordance with accounting principles generally accepted in the United States ("GAAP"), including Adjusted EBITDA, Adjusted Revenue, and Adjusted EBITDA Margin.

A reconciliation of these non-GAAP measures to the most direct comparable GAAP measure is provided in the tables in this press release.

Adjusted EBITDA

Exzeo defines Adjusted EBITDA as net income adjusted to exclude income tax expense, interest expense, investment income, depreciation and amortization, and stock-based compensation expense.

The following table presents the reconciliation of Net Income to Adjusted EBITDA:

Adjusted Revenue

Exzeo defines Adjusted Revenue as the portion of total GAAP revenue earned through services delivered directly via our proprietary platform technology, without being outsourced to other service providers. 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, 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.

The following table presents the reconciliation of Total Revenue to Adjusted Revenue:

Adjusted EBITDA Margin Calculation

Exzeo defines Adjusted EBITDA Margin as Adjusted EBITDA divided by Adjusted Revenue.

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Contacts:

Investor and Media Contact

Company Contact:
Bill Broomall, CFA
Vice President, Investor Relations
wbroomall@exzeo.com

Investor Relations Contact
Matt Glover
Gateway Group, Inc.
Tel: (949) 574-3860
XZO@gateway-grp.com

Source: Exzeo Group, Inc.