10-Q · May 7, 2026
HCI Group, Inc. reported strong Q1 2026 results with revenue at $242.9 million, slightly below expectations but achieving an EPS of $5.45, surpassing estimates. Key performance metrics indicate a resilient performance…
Earnings analysis · 10-Q
HCI earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
HCI delivered a strong second quarter, with revenue up 11.1% year over year to $246.653 million and diluted EPS up 8.1% to $5.60, exceeding consensus by $0.40. Growth was led by higher policy volume, Reciprocal Exchange…
Read full summary
HCI delivered a strong second quarter, with revenue up 11.1% year over year to $246.653 million and diluted EPS up 8.1% to $5.60, exceeding consensus by $0.40. Growth was led by higher policy volume, Reciprocal Exchange Operations and Exzeo, while the net combined ratio remained favorable at 61.5%. The main offsets were a modest increase in gross loss ratio, lower operating cash flow year to date, significant cash deployment into fixed-income investments and continued dependence on reinsurance recoveries. No quantitative forward guidance or material risk-factor changes were provided.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $5.6
What stood out
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Revenue and earnings grew year over year
Total revenue increased to $246.653 million from $221.920 million, up $24.733 million, or 11.1%, year over year; revenue also rose from $243 million in Q1 2026. Net income after noncontrolling interests increased 11.5% to $73.797 million from $66.160 million.
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Diluted EPS beat estimates
Diluted EPS rose to $5.60 from $5.18, an increase of $0.42 or 8.1% year over year, and exceeded the $5.20 consensus estimate by $0.40. EPS increased from $5.45 in Q1 2026.
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Reciprocal operations accelerated
Reciprocal Exchange Operations revenue increased 83.4% to $25.360 million from $13.832 million, while pretax income increased to $7.517 million from $2.807 million. Insurance Operations revenue also increased to $216.699 million from $205.739 million.
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Investment income and assets increased
Net investment income increased 14.9% to $18.890 million from $16.445 million, primarily due to higher invested assets. Available-for-sale fixed-maturity securities increased to $1.091 billion from $597.329 million at December 31, 2025.
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Strong operating liquidity
Operating cash flow was $273.927 million for the first six months, while purchases of property and equipment were only $0.625 million. Management reported $872.336 million of cash and cash equivalents at June 30, 2026.
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Scale grew with stable underwriting
The net combined ratio was 61.5% versus 61.9% year over year for the quarter, while premiums ceded declined to 31.7% of gross premiums earned from 33.9%. Policies in force increased to approximately 290,100 from 270,100.
What to watch
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Loss ratios moved higher
The gross loss ratio increased to 22.2% from 21.3%, and losses and loss adjustment expenses increased to $71.076 million from $64.457 million. Management attributed the increase primarily to a higher volume of policies in force.
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Reserve estimation risk
Total reserves for losses and loss adjustment expenses were $558.982 million at June 30, 2026, including $506.9 million of IBNR. Management noted that reserve estimates may deviate substantially from prior estimates as claim severity, frequency, inflation, legal developments and economic conditions change.
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Reinsurance concentration
Net reinsurance recoverables declined to $255.744 million from $289.896 million, and approximately 75.5% of the reinsurance recoverable balance was receivable from six reinsurers. The company remains liable for claims if reinsurers cannot meet their obligations.
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Cash declined as investments expanded
Cash and cash equivalents declined to $872.336 million from $1.210 billion at December 31, 2025, primarily as investing cash outflows reached $500.388 million. Purchases of available-for-sale fixed-maturity and equity securities totaled approximately $547.8 million.
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Fixed-income market sensitivity
A 100-basis-point increase in interest rates would reduce the estimated fair value of available-for-sale fixed-maturity securities by $48.389 million, or 4%, from the June 30, 2026 portfolio value.
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No new risk-factor changes
Item 1A states that there were no material changes to the risk factors disclosed in the 2025 Annual Report. Nonetheless, the company had $36.0 million drawn on its revolving facility and only $114.0 million of available borrowing capacity at June 30, 2026.
Management's outlook
No quantitative revenue or EPS guidance was provided in the 10-Q. Management stated that future liquidity requirements are expected to be met primarily through funds from operations and that it may consider additional debt or equity financing.
Earlier filings 4
10-K · February 26, 2026
HCI Group, Inc. reported a strong fourth quarter in 2025 with a net income of $320.4 million, significantly up from $127.6 million in the previous year, buoyed by a decrease in losses and improved premium volumes.…
10-Q · November 7, 2025
HCI Group reported a strong performance in Q3 2025, with net income of $67.9 million and EPS of $4.90, significantly exceeding expectations. Revenue declined slightly from Q2 2025, primarily due to lower gross premiums…
10-Q · August 8, 2025
HCI Group, Inc. reported strong second quarter results with revenue increasing to $221.9 million, a 7.5% year-over-year increase, and net income rising to $70.3 million, up 23% compared to Q2 2024. The diluted EPS was…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.