Exzeo Group (XZO) Q1 2026 earnings summary

Executive summary

• Managed premium reached $1.43 billion, up from $1.24 billion year-over-year, reflecting strong platform adoption, diversification, and new carrier partnerships.

• Revenue increased to $56 million from $52 million year-over-year, driven by new customers and platform premium growth.

• Net income rose to $20.4 million from $18.0 million, with diluted EPS steady at $0.22.

• Free cash flow was $25.1 million, with a conversion rate of 123% and net income margin improvement.

• Annual recurring revenue reached $216.2 million, up from $198.7 million year-over-year.

Financial highlights

• Adjusted EBITDA margin was 49% for the quarter, with adjusted EBITDA at $26.5 million.

• Gross margin improved to 59.0%, with gross profit at $32.7 million.

• Shareholders' equity increased to $275 million, now eight times higher than a year ago.

• The company remains debt-free with $329.9 million in cash, cash equivalents, and investments.

• Free cash flow rose to $25.1 million from $19.0 million year-over-year.

Outlook and guidance

• Q2 pre-tax income expected between $27 million and $30 million.

• Full-year 2026 pre-tax income guidance unchanged at $115 million to $125 million.

• Managed premium expected to remain stable at $1.4 billion in Q2 and reach $1.55 billion by year-end 2026.

• Management expects continued revenue growth from new and existing customers, with a focus on national expansion and diversification.

• Sufficient liquidity and cash resources to meet obligations for at least the next 12 months.