What Exzeo Group (XZO) Said on Its Q3 Earnings Call

Key Points

• Q3 revenue was $55 million, flat year over year, while adjusted revenue excluding catastrophe-driven outsourced claims services rose to $54 million from $52 million. Pretax income was about $30 million, adjusted EBITDA margin exceeded 51%, and annual recurring revenue reached $206 million.
• Exzeo plans to develop three to five new products next year and expand beyond homeowners into auto, flood and potentially liability coverage. A homeowners product offered through carrier CORE has generated more than $40 million in managed premiums in just over six months.
• For Q4, Exzeo forecast pretax income of $26 million to $29 million and managed premium of about $1.34 billion. It ended the quarter debt-free with more than $350 million in invested assets and repurchased over 1.1 million shares for approximately $17 million year to date.

Exzeo Group NYSE: XZO reported third-quarter revenue of $55 million, unchanged from a year earlier, as executives outlined plans to develop new insurance offerings using the company’s data and automated underwriting technology.

The company generated approximately $30 million in pretax income and earnings per share of $0.25, while its adjusted EBITDA margin exceeded 51%, Chief Financial Officer Suela Bulku said. The results were within the company’s guidance, she said.

Excluding outsourced claims service revenue, which is largely driven by catastrophe events, adjusted revenue rose to $54 million from $52 million in the year-earlier period. Managed premium at quarter-end increased to approximately $1.4 billion from $1.2 billion a year earlier.

Annual recurring revenue reached $206 million, up from $192 million in the prior quarter, Bulku said.

New offerings target carrier growth

President Kevin Mitchell said Exzeo is building offerings designed around verified data and automated decisions as insurance customers and distributors shift toward digital and artificial intelligence-driven channels. The company’s data platform and automated underwriter are integrated and in production, he said.

Chairman and CEO Paresh Patel said Exzeo is increasingly presenting carriers with complete products they can offer, rather than waiting to incorporate existing carrier offerings into its platform. The approach could help carriers add premium and profit, he said.

As an example, Patel described a homeowners offering developed by Exzeo and offered through carrier CORE. He said it had generated more than $40 million in premiums under management in a little over six months. Other carriers have expressed interest in using the offering, he said, without naming them.

Patel said Exzeo is considering developing three to five new products next year. The company is also working to broaden its platform beyond home insurance, including auto, flood and potentially liability coverage. He said the addition of auto was progressing and that he believed the company had signed additional auto carriers.

Exzeo Ventures has several initiatives underway, Patel said, although none has been publicly announced. The company is assessing how developments in AI can be monetized over the long term, he added.

Fourth-quarter outlook and capital position

For the fourth quarter, Exzeo expects pretax income of $26 million to $29 million and managed premium of approximately $1.34 billion at quarter-end. Bulku said the income outlook was consistent with the seasonality of the business.

Asked about the managed premium forecast, Patel said Exzeo generally gives conservative guidance based on developments that are largely already in place rather than incorporating potential outcomes. He said the company expects managed premium growth to become more visible and diversified over time as new products come to market.

Exzeo ended the quarter with more than $350 million in invested assets, including cash equivalents and fixed-income securities, and remained debt-free, Bulku said. Shareholders’ equity rose 17% from the prior year-end to $298 million.

The company completed its May 2026 share repurchase program during the quarter and began buying shares under an August authorization. Year to date, it had repurchased more than 1.1 million shares for approximately $17 million, Bulku said.

Agents seek faster transactions

Mitchell said agents are looking to reduce the number of underwriting questions they must answer and make the sales process more efficient. Insurers also want efficiency and risk segmentation that supports profitable underwriting, he said.

Patel said Exzeo had delivered almost 700,000 quotes on its platform so far this year, with the weekly total now well above 25,000. He put the cost of producing a quote at approximately $0.80.

Discussing how consumers might shop for insurance using AI tools, Patel said Exzeo aims to support purchases through agents, automated tools or a combination of the two. “The key thing is to meet the consumer where they want to buy the product,” he said.

About Exzeo Group (NYSE:XZO)

Exzeo provides turnkey insurance technology and operations solutions to insurance carriers and their agents based on a proprietary platform of purpose-built software and data analytics applications that are specifically designed for the property and casualty, or P&C, insurance ecosystem. Exzeo's Insurance-as-a-Service (IaaS) platform, which we refer to as the “Exzeo Platform,” currently includes nine highly configurable software and data analytics applications that are purpose-built to serve insurance companies and other customers in the insurance value chain.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.