Neptune Insurance (NP) Registration filing summary

Company overview and business model

• Operates as a high-growth, data-driven managing general agent (MGA) focused on flood and earthquake insurance, leveraging proprietary AI and machine learning for underwriting and policy management.

• Offers residential and commercial flood insurance, excess flood, and parametric earthquake products, distributed primarily through a nationwide agency network.

• Does not retain insurance risk or handle claims; risk is borne by a panel of 42 insurance and reinsurance capacity providers.

• Technology-first, API-driven platform enables instant underwriting, scalable operations, and high policy retention rates.

• Maintains a recurring, fee-based revenue model from commissions and policyholder fees, with high visibility into future revenue streams.

Financial performance and metrics

• Achieved $159.6M revenue, $37.4M net income, and $95.0M Adjusted EBITDA for the year ended Dec 31, 2025, with a 23.4% net income margin and 59.5% Adjusted EBITDA margin.

• For the twelve months ended Mar 31, 2026: $168.0M revenue, $34.8M net income, $99.5M Adjusted EBITDA, 20.7% net income margin, and 59.2% Adjusted EBITDA margin.

• Premium in force grew at a CAGR of 88.3% since 2018, reaching $388.7M as of Mar 31, 2026.

• Policy retention rate was 86.2% and premium retention rate was 92.9% for the three months ended Mar 31, 2026.

• Consistently exceeded 54% Adjusted EBITDA margin over the past four years, with strong operational leverage and scalability.

Use of proceeds and capital allocation

• Will not receive proceeds from the sale of Class A common stock; all proceeds go to selling stockholders.

• Plans to repurchase 835,561 shares from underwriters using cash on hand and borrowings under a revolving credit facility; repurchased shares will be retired.

• Intends to retain future earnings to repay debt and fund business growth; no plans for cash dividends.