Exzeo Group Q2 2026 Earnings Report

Exzeo Group EPS Results

• Actual EPS: $0.26
• Consensus EPS: $0.24
• Beat/Miss: Beat by +$0.02
• One Year Ago EPS: $0.26

Exzeo Group Revenue Results

• Actual Revenue: $56.29 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: +3.00%

Exzeo Group Announcement Details

• Quarter: Q2 2026
• Date: 8/6/2026
• Time: After Market Closes
• Conference Call Date: Thursday, August 6, 2026
• Conference Call Time: 5:45PM ET

Exzeo Group (NYSE:XZO) is an insurance-focused company that provides property and casualty insurance products and related services. Its activities center on the development, distribution and administration of insurance solutions for policyholders and insurance agents.

The company uses technology and insurance-industry expertise to support functions such as underwriting, policy administration and claims management. Exzeo Group serves the U.S. insurance market through its insurance operations and distribution relationships.

Exzeo Group Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Strong second-quarter performance: Revenue rose to $58 million, pre-tax income exceeded $31 million, and adjusted EBITDA margin reached 53%, above guidance. Management said annualized margins above 50% remain achievable for the foreseeable future.
• Positive Sentiment: Platform momentum accelerated: Managed Premium increased to $1.4 billion, ARR rose to $211 million, agents doubled year-to-date, and quote volume more than doubled. Exzeo also added its eighth carrier, GEICO, bringing auto insurance to the platform and enabling home-and-auto bundling.
• Neutral Sentiment: Near-term growth is expected to moderate seasonally: Third-quarter Managed Premium is guided at approximately $1.4 billion, with pre-tax income of $28 million to $31 million. Full-year Managed Premium guidance remains $1.55 billion, while revenue is expected to peak in the second quarter before stepping down modestly in the second half.
• Positive Sentiment: Capital returns and financial flexibility remain strong: Exzeo repurchased approximately $12 million of shares, completing its authorized buyback program, while maintaining a debt-free balance sheet and more than $333 million of invested assets.
• Neutral Sentiment: Exzeo launched Exzeo Ventures to pursue new AI-enabled businesses that could extend beyond improving existing insurance workflows. Management cited AI-driven catastrophe-claims processing as an example, but the initiative is still early and its financial contribution is uncertain.

Presentation

[Bill Broomall, VP of Investor Relations at Exzeo Group]

Thank you, and good afternoon. Welcome to Exzeo Group's second quarter 2026 earnings call. To access today's webcast, please visit the investor information section of our corporate website at www.exzeo.com. Before we begin, I would like to take the opportunity to remind our listeners that today's presentation and responses to questions may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as anticipate, estimate, expect, intend, plan, 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. Some of these risks and uncertainties are identified in the company's filings with the Securities and Exchange Commission.

[Bill Broomall, VP of Investor Relations at Exzeo Group]

Should any risks and uncertainties develop in the actual events, these developments could have a material adverse effect on the company's business, financial condition, and results of operation. Exzeo Group disclaims all the obligations to update any forward-looking statements. With that, I would like to turn the call over to Suela Bulku, Exzeo's Chief Financial Officer.

[Suela Bulku, CFO at Exzeo Group]

Thank you, Bill. Good evening, everyone, and thank you for joining us for Exzeo's second quarter earnings call. Exzeo continues down the path of strong execution and attractive financial results. Managed Premium on the platform remains robust at $1.4 billion, and we delivered another quarter of attractive margins, including a 53% Adjusted EBITDA margin in the quarter. Pre-tax income for the quarter was over $31 million, an increase from over $28 million in the prior quarter. These results were above the guidance we provided. Earnings per share for the quarter were $0.26, and year-to-date earnings per share were $0.48. For the second quarter, total revenue increased to $58 million, up from $56 million in the prior quarter, driven by the increase of Managed Premium on the platform. Excluding outsourcing claim fees, adjusted revenue increased by $4 million YoY to more than $56 million.

[Suela Bulku, CFO at Exzeo Group]

Managed Premium in the quarter was $1.4 billion, an increase from $1.2 billion in the prior quarter. Given the seasonality of growth for our clients, Managed Premium were in line with expectations. Our Adjusted EBITDA margin was over 53% in the quarter, and we believe annualized margins above 50% are achievable for the foreseeable future. A few additional highlights for the quarter. Our Annual Recurring Revenue was $211 million in the second quarter, an increase from $195 million in the prior quarter. Our balance sheet remains exceptionally strong. We ended the quarter with over $333 million of invested assets, which includes cash equivalents, and fixed income securities. We remain debt-free and continue to maintain significant financial flexibility. Shareholders' equity increased to $288 million, an increase from $254 million at the end of the year. I want to quickly touch on our guidance expectations.

[Suela Bulku, CFO at Exzeo Group]

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. Our guidance for the third quarter is consistent with the anticipated timing of growth across our existing client base. Our full-year guidance remains unchanged. Before turning the call over to Kevin, I wanted to quickly touch on recent capital management actions. During the quarter, we repurchased over 726,000 shares of our common stock for approximately $10 million. Subsequent to the quarter, we repurchased an additional 107,000 shares, which brings total repurchases to $12 million, completing the authorized share repurchase program. We continue to have tremendous confidence in the long-term outlook for our business.

[Suela Bulku, CFO at Exzeo Group]

Given our asset-light model, high margins, debt-free balance sheet, significant cash on hand, and the momentum we are seeing across the business, we believe allocating less than one quarter's worth of earnings to repurchase shares at attractive valuations was a compelling use of capital. With that, I will hand it over to Kevin, President of Exzeo.

[Kevin Mitchell, President at Exzeo Group]

Thank you, Suela. The Exzeo platform continues to gain momentum, and we are seeing encouraging customer wins. Let me elaborate on some of these achievements. While we often talk about the insurance companies joining our platform, demand extends well beyond carriers. We are seeing growing interest from independent agents who are proactively reaching out to join the Exzeo platform. The flywheel effect we've discussed in the past is real. As more agents join the platform, it becomes increasingly attractive to insurance companies. As more carriers come on board, the value proposition for agents continues to strengthen.

[Kevin Mitchell, President at Exzeo Group]

That network effect is helping accelerate adoption across our ecosystem. Second, we've seen quote volume more than double since the beginning of the year. Third, last month, we signed our eighth carrier partner. Our new partnership with GEICO brings auto insurance to the platform, marking another meaningful step in expanding our capabilities. Agents can now bundle home and auto. With the addition of auto, the Exzeo platform now offers homeowners, commercial residential, flood, and auto insurance. Expanding our product set makes the platform more valuable to agents by enabling them to serve more of their clients' insurance needs through a single platform. In closing, since the beginning of the year, we've made meaningful progress across every dimension of the platform. We've doubled the number of agents, we've more than doubled quote volume, and we've added additional products. And we've grown to eight carriers on the platform.

[Kevin Mitchell, President at Exzeo Group]

I'll turn the call over to Paresh, Exzeo's Chief Executive Officer.

[Paresh Patel, CEO at Exzeo Group]

Thanks, Kevin. Suela provided numbers that clearly show how healthy and cash flow positive Exzeo already is. Kevin highlighted the tremendous momentum in expanding the size and scope of the Exzeo platform. The continued addition of new carriers, new products, and new capabilities reinforces that our platform is gaining meaningful traction in the marketplace. While these initiatives don't translate into results overnight, they continue to strengthen our long-term growth opportunity and expand the value we can deliver. Beyond all of this, earlier today, we announced the next new initiative, Exzeo Ventures. The reason we're launching Exzeo Ventures is simple. AI represents a once-in-a-generation paradigm shift, most companies think about AI as a tool to make existing processes faster or more efficient.

[Paresh Patel, CEO at Exzeo Group]

While that's certainly valuable, we think there is a much bigger opportunity, a useful analogy might be to look back at the internet, the evolution of the internet. The first wave of the internet brought traditional businesses online, making familiar processes faster and more efficient. The truly transformative companies were the companies that created entirely new business models that only become possible because of the internet. For example, companies like Uber fundamentally reimagined transportation. We believe AI has the potential to follow a very similar path. Rather than simply asking how AI can make current businesses more efficient, we are asking a much bigger question. What entirely new products, services, and businesses can AI make possible? That's the purpose of Exzeo Ventures.

[Paresh Patel, CEO at Exzeo Group]

We've been working on these ideas behind the scenes for some time, we've reached a point where we've seen enough progress and assembled the right team that we're ready to formalize the effort. We're funding Exzeo Ventures as an internal platform, its mission is to identify opportunities that only emerge when AI fundamentally changes what's possible. Let me give you one small example amongst the number of initiatives that we are working on. After a major catastrophe event, insurance carriers experience an enormous surge in claims. The challenge isn't simply receiving those claims, it's having the personnel available to process them. That staffing bottleneck often delays claim handling at exactly a time when policyholders need assistance the most. Simply put, scaling up the human element in a demand surge is challenging. It is difficult to increase human compute at the touch of a dial.

[Paresh Patel, CEO at Exzeo Group]

With AI, you can increase the compute by orders of magnitude immediately. Imagine a carrier that normally processes 200 claims per week suddenly needing to process 4,000 because of major catastrophe events. The claim volume has spiked twentyfold, but now with the AI capabilities, processing capacity can increase just as quickly. The result will be faster claims handling, shorter wait times, and a significantly better experience for the policyholders during some of the most difficult times they'll ever face. This is exactly the type of opportunity that excites us, because it simply wasn't possible before AI. That's the vision behind Exzeo Ventures. Across underwriting, claims distribution, claims, risk transfer, and many other areas, we believe AI creates the opportunity for entirely new categories of products and businesses. With that, I will turn over the call for questions.

[Operator]

We will now begin the question and answer session. If you would like to ask a question, please press star one now to raise your hand and join the queue. To withdraw your question, press star one again. We ask that you do pick up your handset when asking a question to allow for optimum sound quality, and if you are muted locally, please remember to unmute your device. Please stand by now while we compile the Q&A roster. Your first question comes from the line of Terry Tillman with Truist. Your line is open. Please go ahead.

[Terry Tillman, Analyst at Truist]

Good afternoon, Paresh, Kevin, Suela, and Bill. I have three questions, but they'll be really quick, I promise. First, on GEICO, I think they're relatively large. I think they're the third largest auto insurer in the U.S. Is there any way to kind of ring-fence this or give us a sense on how sizable this could be and kind of timing and when this could start to hit the model? Then I had two follow-ups.

[Paresh Patel, CEO at Exzeo Group]

Yes, Terry. GEICO is big. It's huge, right? There's also been a recent thing about people wanting to bundle home and auto and the benefits of all of that. The issue becomes do you bundle with the auto carrier bundling the home or the home carrier bundling the auto, or do you let the agent on the platform assemble the bundle? These are all choices that don't result in the same outcome. The partnership with GEICO lets people bundle and sell GEICO on the Exzeo platform. It's a big start. We'll see how it grows into it. Yes, it could be something big. Early days yet, but we are very excited to partner with GEICO.

[Terry Tillman, Analyst at Truist]

Understood. I appreciate that. Maybe the second question, I'm assuming some others might want to also double-click on this. Exzeo Ventures sounds very interesting, could you help us a little bit with another one of these what would it do? Would it be it drives more carriers or business relationships, or it drives more of a take rate with your existing carriers? Is it a Managed Premium dynamic? At the same time, by making these investments, would you still be kind of achieving those really high 50%+ EBITDA margins?

[Paresh Patel, CEO at Exzeo Group]

I would characterize it this way. What you sort of said about AI helping the Exzeo platform, that's all going to occur anyway. That isn't what Exzeo Ventures is about. There will be AI on the Exzeo platform side as well, that's what everybody else is also looking at. That's modernizing your current stack because of AI. What we're talking about in Exzeo Ventures is doing something that you could not be possible without AI, right? That's what we're talking about. Businesses, think of, again, in my earlier comments, the example of Uber. Uber is not possible without the internet and GPS and maps and everything else, right? It isn't just taking a taxi company and putting it on a web presence. It's reimagining how things get done, how transportation's done.

[Paresh Patel, CEO at Exzeo Group]

We are starting to see there are things that you can now do with AI that you just couldn't do without AI. One simple example of this that we kind of piloted a little bit was this Win from Pro we talked about last quarter. It allowed carriers to process this new requirement that came in, it would have required a lot of staffing and training and all that kind of stuff. Using AI, we turned it into something that we could share with the whole industry very easily. It's stuff like that that we're talking about, right? It's not retrofitting AI to existing businesses. It's trying to think of new businesses we can do that's only possible because of AI. We have a few. We have four or five in the hopper at the moment.

[Paresh Patel, CEO at Exzeo Group]

We will obviously discuss them as they all come to more maturity as we go along. We're in the process of seeding and setting all that up. Exzeo Ventures is not just an incremental thing. It could be something very different that is even beyond insurance, if that helps.

[Terry Tillman, Analyst at Truist]

Yes. It does help. I'm looking forward to hearing more. Just a final one, I'll jump off here. Anything you can share, though, Suela, in terms of Q3 and Q4 in terms of how to think about adjusted revenue maybe versus where we ended at $56 million in Q2? Can you remind us again what the Managed Premium target was for the end of the year? I think you said that's unchanged.

[Suela Bulku, CFO at Exzeo Group]

Yes. For full year-end, the guidance is $1.55 billion for Managed Premium. In terms of Q3 and Q4, the one thing I would say is just a reminder that the ARR and then how it converts to revenue, this is analogy that we have in our business, and that depends on the renewal cycle and the product mix. For 2026, we have revenue that peaks slightly in Q2, and it's more modest in Q3, more natural in Q3, and then a slight Q4 step down. Just that's very typical for our seasonality.

[Terry Tillman, Analyst at Truist]

That's great. Very helpful. Thanks.

[Operator]

Again, if you have dialed in and would like to ask a question, please press star one on your telephone keypad to join the queue now. Please stand by while we compile the Q&A roster. At this time, there are no further questions. I would now like to turn the call back over to Paresh Patel, who has a few closing remarks. Actually, we've just had someone raise their hand. The next question comes from Dylan Becker with William Blair. Your line is open. Please go ahead.

[Dylan Becker, Analyst at William Blair]

Hey, guys. Sorry about that. Got thwarted by the star one, unfortunately, but we made it. Quick question on Kevin. You kind of touched on the agent carrier flywheel dynamic, and obviously GEICO seems to be a big unlock in that context as well. Wondering if you could kind of expand on that notion.

[Dylan Becker, Analyst at William Blair]

As you broaden the scope across carriers premium as well as potential lines, how that drives the follower notion of more agents and obviously underwriting more premium through the Exzeo platform as it seems fortuitous in and of itself and starting to gain some real traction and momentum here.

[Kevin Mitchell, President at Exzeo Group]

Thanks, Dylan. It's Kevin. We're seeing some interesting trends, definitely this year. What we're finding is agents are looking at being proactive with their clients. A lot of that is utilizing technology. One of the thing that's really having them gravitate to the Exzeo platform is just the ease of use. When you look at that, and as the word gets out, when everyone's trying to drive more and more efficiency, it's almost like that, I talked about in the comments of the flywheel effect. More and more agents come on board and because everyone's looking for that edge, and as we bring more carriers onto the platform, then the Exzeo platform becomes a go-to or a hub, if you will, to solve multiple different client questions or placements of coverage.

[Kevin Mitchell, President at Exzeo Group]

It's a positive effect and when we look at it, we look at it in a couple different metrics. One is the number of agents coming on board, but then the utilization of the platform, which is up as well. It's exciting and it's our job to bring more and more options onto the platform, and that's just going to encourage additional agent adoption and participation.

[Dylan Becker, Analyst at William Blair]

Got it. Okay. Very helpful. As maybe a follow-on to that as well, too, any color, obviously we continue to add more of these external third-party carriers to the platform, velocity maybe around your pipeline conversations maybe in particular as you enable and unlock more of that rapid time to value versus maybe a larger, more complex modernization effort. The need and urgency that you're pointing to, how that's maybe resonating in some of your pipeline conversations here as well. Thanks.

[Kevin Mitchell, President at Exzeo Group]

Yeah. On a pipeline side, I think you just look at the last year. We've consistently added folks onto the platform, and we're going to continue to do that. As we've seen, the more that come on and see the capabilities, obviously it becomes an easier conversation to go ahead and build that pipeline. Everything we're seeing is pointing in the right direction.

[Dylan Becker, Analyst at William Blair]

Very helpful. Thank you.

[Operator]

At this time, this concludes our question and answer session. Now I would like to turn the call back over to Paresh Patel for a few closing remarks. Please go ahead.

[Paresh Patel, CEO at Exzeo Group]

Yeah, thank you. In closing, Exzeo is well positioned for the future. We have a debt-free balance sheet, significant financial flexibility, and a platform that continues to scale as we add new partners, products, and capabilities. With the launch of Exzeo Ventures, we're also investing in the opportunities that AI will create in the future over the coming decade. We believe this combination of financial discipline, platform scale, and continuous innovation provides a compelling foundation for long-term growth. I want to thank everyone who joined the call today, and I also want to thank the Exzeo team for all of their hard work. Thank you.

[Operator]

This concludes today's call. You may now disconnect.

Participants

Executives

• Bill Broomall, VP of Investor Relations
• Suela Bulku, CFO
• Kevin Mitchell, President
• Paresh Patel, CEO

Analysts

• Terry Tillman, Analyst at Truist
• Dylan Becker, Analyst at William Blair