Exzeo Group (XZO) Q4 2025 earnings summary

Executive summary

• Delivered strong Q4 and full-year financial performance, with significant growth in revenue, pre-tax income, and EPS year-over-year.

• Managed Premium grew 139% year-over-year to $1.39 billion, reflecting strong platform adoption and expansion of client base, including onboarding of two new clients and addition of Tokio Marine Highland.

• Revenue increased 62% year-over-year to $217 million, driven by expanded underwriting and management services.

• Adjusted EBITDA for the year reached $111.5 million, with margin exceeding 54% for both Q4 and full year.

• Cash and cash equivalents at year-end totaled $305 million, up from $54.5 million, with no debt.

Financial highlights

• Q4 revenue: $53.3 million, up 20% year-over-year; full-year revenue: $217 million, up 62%.

• Q4 pre-tax income: ~$29 million; full-year pre-tax income: >$110 million.

• Q4 net income from continuing operations: $22 million; full-year net income: ~$83 million.

• Q4 diluted EPS: $0.25; full-year diluted EPS: $0.99, up from $0.20.

• Free cash flow for the year: ~$97.5 million; free cash flow conversion rate: 117%.

Outlook and guidance

• Q1 2026 pre-tax income expected between $23 million and $26 million; full-year 2026 pre-tax income expected between $115 million and $125 million.

• Managed Premium expected to exceed $1.4 billion by end of Q1 and reach $1.55 billion by year-end 2026.

• Free cash flow conversion expected to remain above 100% in 2026, driven by upfront cash receipts and growth.

• Management highlighted scalability and strong profitability, emphasizing continued growth in recurring revenue streams and customer expansion.

• Forward-looking statements caution about risks related to profitability, regulatory environment, and reliance on key partners.