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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights a significant 90% YoY revenue increase and improved EBITDA margins, indicating strong financial performance. The CEO's planned stock purchase shows confidence, and the Q&A session reveals a growing client pipeline and solid cash flow expectations. Despite some strategic risks and modest initial revenue from new clients, the overall sentiment is positive due to high growth metrics and optimistic future outlook.
Pretax income (Q3 2025) $28 million, with diluted earnings per share of $0.25. Year-to-date pretax income was $81 million, with diluted earnings per share of $0.73.
Revenue (Q3 2025) $55 million, a 90% year-over-year increase. The growth was driven by an increase in managed premium and the completion of onboarding all HCI-related insurance carriers to the platform.
Adjusted EBITDA margin (Q3 2025) 55%, up from 32% in the prior year quarter. This improvement was due to the efficiency of the business model, which allows for adding managed premium with minimal incremental expense.
Managed premium (Q3 2025) $1.2 billion, up from $500 million in the prior year quarter. The increase was primarily due to the completion of onboarding all HCI-related insurance carriers to the platform.
Annual recurring revenue (Q3 2025) $192 million, up from $118 million in the prior year quarter. This reflects the visibility and durability of the business model.
Cash and cash equivalents (Q3 2025) $140 million, an increase of over $86 million, all generated organically through operations. The company remains debt-free.
New Clients: Exzeo signed up a new client in Q3 and another in Q4, bringing the total carriers on the platform to six. These clients are expected to start contributing revenue in Q4 2025.
Managed Premium Growth: Managed premium increased to $1.2 billion in Q3 2025 from $500 million in the prior year. Expected to reach $1.32 billion by end of 2025 and $1.5 billion by end of 2026.
Revenue Growth: Revenue increased 90% YoY to $55 million in Q3 2025, driven by growth in managed premium and onboarding of HCI-related carriers.
Margin Expansion: Adjusted EBITDA margin rose to 55% in Q3 2025 from 32% in the prior year, due to efficient scaling of managed premium.
Cash Position: Cash and cash equivalents increased to $140 million, with no debt, supported by $155 million IPO proceeds.
IPO Completion: Exzeo successfully completed its IPO, raising $155 million to strengthen its financial position.
Leadership Investment: CEO plans to purchase $2 million worth of Exzeo stock in 2026, reflecting confidence in the company's growth potential.
Market Conditions: The company acknowledges that forward-looking statements are subject to various risks and uncertainties, which could have a material adverse effect on the company's business, financial condition, and results of operation.
Client Growth and Revenue Contribution: The revenue contribution from new clients will be modest initially, which could impact short-term financial performance.
Seasonality in Managed Premium: The company experiences quarterly seasonality in managed premium, which could lead to fluctuations in financial performance.
Strategic Execution Risks: The company emphasizes the importance of executing growth initiatives and expanding the reach of its platform, which could pose challenges if not effectively managed.
Managed Premium: Exzeo expects managed premium to be at least $1.32 billion at the end of 2025 and $1.5 billion by the end of 2026.
Pretax Income: Exzeo projects pretax income to be between $22 million and $25 million for Q4 2025 and between $115 million and $125 million for the full year 2026.
Margin Expansion: Exzeo anticipates further improvement in margins as additional managed premium is added to the platform.
Seasonality in Managed Premium: The company expects the fourth quarter to deliver the largest increase in managed premium, followed by sequential decreases in the first, second, and third quarters.
Client Growth: Exzeo has added two new clients in Q3 and Q4 2025, bringing the total to six, with revenue contributions expected to grow as these clients expand their premium base.
CEO Stock Purchase Plan: The CEO plans to purchase an additional $2 million worth of Exzeo stock in 2026 under a Rule 10b5-1 prearranged purchase plan.
Rule 10b5-1 prearranged purchase plan: CEO Pareshbhai Patel announced his intention to increase his ownership stake in Exzeo by initiating a Rule 10b5-1 prearranged purchase plan. Under this plan, he expects to buy an additional $2 million worth of Exzeo stock in calendar year 2026. The shares will be purchased in the open market in accordance with the SEC's rules relating to such plans.
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