Skip to content
Optionomics Free · No account needed

Earnings analysis · 10-Q

PLMR earnings analysis

Filed May 7, 2026 · Our reading of the company's report

The latest report

Palomar Holdings, Inc. posted a solid quarter in Q1 2026 with a revenue of $278.9 million, surpassing expectations of $250.7 million, but diluted EPS of $1.57 slightly missed the consensus estimate of $2.16. The company…

Read full summary

Palomar Holdings, Inc. posted a solid quarter in Q1 2026 with a revenue of $278.9 million, surpassing expectations of $250.7 million, but diluted EPS of $1.57 slightly missed the consensus estimate of $2.16. The company reported growth in gross written premiums, particularly from casualty and inland marine segments, reflecting a strategy to diversify risk, though increased losses and operating expenses impacted net income. Management provided an outlook for continued premium growth driven by market expansion, but warned of potential challenges from rising loss ratios.

Read the original on SEC.gov

Gross and operating margin

How much of each revenue dollar the business keeps.

54% Gross margin Operating margin May 2025 May 2026

One point per quarterly or annual filing. Both margins are shares of that report's revenue.

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $45 Operating expenses $40 Left as operating profit $15

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

Where revenue came from

The business segments reported by the company.

Casualty 32.8% Inland Marine 26.4% Earthquake 21.8% Crop 13.9% Surety & Credit 5.1%

Shares of the segments disclosed in this filing, largest first.

How we read each report

Our analysis across the last few reports.

Read as bullish Read as bearish May 2025 May 2026

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
$1.57

What stood out

  • Revenue Exceeded Estimates

    Reported revenue of $278.9 million surpassed estimates of $250.7 million, a growth of 59.5% year-on-year from $174.63 million.

  • Strong Growth in Premiums

    Gross written premiums increased by $187.7 million, or 42.4%, to $629.8 million, driven mainly by growth in casualty and inland marine lines.

  • Positive EPS Performance

    Diluted EPS of $1.57 equalled the prior year but missed expectations of $2.16 with the increase in expenses.

  • Increased Cash Flow from Operations

    Operating cash flow was $47.0 million for Q1 2026, although down from $87.2 million in Q1 2025.

  • Notable Investment Growth

    Net investment income increased by 49.0% to $18.0 million due to a higher average balance of investments.

  • Significant Share Repurchases

    Repurchased 190,255 shares for $23.1 million, remaining authority of $89.6 million under the share repurchase program.

What to watch

  • Increased Losses

    Losses and loss adjustment expenses surged by $48.4 million, up 124.8% to $87.1 million, driven by a spike in non-catastrophe losses.

  • Higher Operating Expenses Impact Results

    Acquisition and other underwriting expenses increased 51.7% to $70.3 million, impacting net income despite revenue growth.

  • Regulatory Risks

    Compliance with various state and federal regulations remains a potential risk impacting future profitability and operational flexibility.

Management's outlook

Management anticipates continued growth in written premiums driven by new partnerships and product offerings.

Earlier filings 4

10-K · February 24, 2026

Palomar Holdings, Inc. reported strong growth in gross written premiums and net income for the year ended December 31, 2025, driven primarily by its Casualty and Crop lines, reflecting an attractive operational…

10-Q · November 7, 2025

Palomar Holdings, Inc. reported strong Q3 2025 results with increased revenues and earnings, showcasing a recovery in gross written premiums and a significant reduction in catastrophe losses. Key financial metrics…

10-Q · August 5, 2025

Palomar Holdings, Inc. reported strong Q2 2025 results with revenues increasing by 55% year-over-year to $203M, driven by significant growth in Net Earned Premiums. The company also saw a 79.4% increase in Net Income to…

10-Q · May 6, 2025

Palomar Holdings, Inc. reported strong Q1 2025 results with revenues of $175 million, up 47% from $119 million in Q1 2024. Gross margins improved to 51.3%, and the company achieved an EPS of $1.57, reflecting a 51%…

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.