10-Q · May 15, 2026
Exzeo Group, Inc. reported Q1 2026 financial results with revenue of $55.5 million, a 6.0% increase year-over-year, and an EPS of $0.22, exceeding expectations. While revenue slightly decreased from $56 million in the…
Earnings analysis · 10-Q
XZO earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
Exzeo delivered solid Q2 execution: revenue increased 3.0% year over year to $57.787 million, gross margin expanded to 63.7%, and diluted EPS of $0.26 exceeded the $0.24 consensus estimate. Platform indicators were…
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Exzeo delivered solid Q2 execution: revenue increased 3.0% year over year to $57.787 million, gross margin expanded to 63.7%, and diluted EPS of $0.26 exceeded the $0.24 consensus estimate. Platform indicators were strong, with managed premium reaching $1.396 billion, ARR reaching $210.710 million, and net dollar retention of 114.4%. Offsetting concerns include a 21.8% decline in claim services, elevated SG&A growth of 95.5%, declining cash due to $198.395 million of Treasury purchases, and continued 85.6% revenue concentration among two related-party customers.
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.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
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
- $0.26
- Segment
- Single reportable segment: total revenue $57.787 million; underwriting and management services $48.342 million, up 6.7% year over year; claim services $6.744 million, down 21.8%; other technology services $2.701 million, up 24.3%.
What stood out
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Revenue grew 3% year over year
Revenue increased to $57.787 million from $56.091 million in the prior-year quarter, up 3.0%. Revenue also increased from $56.091 million in Q1 2026, up approximately 3.0% sequentially.
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Gross margin expanded materially
Gross profit rose 9.8% year over year to $36.838 million, and gross margin expanded to 63.7% from 59.8%. The improvement was primarily driven by lower outsourced claims fees, which declined 61.0% to $1.494 million.
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Sequential operating leverage improved
Operating income increased 1.2% year over year to $28.463 million, while operating margin was 49.3% versus 50.1% in the prior-year quarter. Sequentially, operating margin improved from 45.1% in Q1 2026.
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EPS beat consensus and rose sequentially
Diluted EPS was $0.26, flat year over year but up from $0.22 in Q1 2026. Net income increased 7.4% year over year to $23.269 million, helped by investment income of $2.963 million, up 288.3%.
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Platform metrics continued to scale
Managed premium increased to $1.396 billion from $1.220 billion, managed policies rose to 321,141 from 270,094, and ARR increased to $210.710 million from $195.257 million. Net dollar retention was 114.4% and gross dollar retention was 89.1%.
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Strong cash generation with low capex
Six-month operating cash flow was $40.887 million and free cash flow was $40.351 million after $0.536 million of capital expenditures. Capital expenditures represented approximately 0.5% of six-month revenue, although Q2 free cash flow of $15.206 million declined from $25 million in Q1 2026.
What to watch
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Heavy dependence on affiliated customers
Related-party customer concentration remains substantial: two related-party customers represented 85.6% of Q2 revenue, compared with 93.5% in the prior-year quarter. Receivables from related parties increased to $20.379 million from $11.295 million at December 31, 2025.
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Catastrophe activity drives volatility
Claim services revenue declined 21.8% year over year to $6.744 million, and management states that future results will continue to be affected by the timing and severity of weather events. Outsourced claims fees also fell 61.0% to $1.494 million, highlighting the volatility of catastrophe-related activity.
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Rapid expense growth pressures margins
Selling, general and administrative expense increased 95.5% year over year to $5.788 million, increasing to 10.0% of revenue from 5.3%. Total operating expenses rose 54.4% to $8.375 million, reflecting higher headcount, public-company costs, and continued business-growth investments.
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Liquidity shifted into long-term securities
Cash and cash equivalents fell to $136.731 million from $305.372 million at December 31, 2025, primarily because the Company purchased $198.395 million of available-for-sale securities. Working capital declined to $77.968 million from $241.432 million as those securities were classified as non-current.
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Interest-rate losses may affect equity
The investment portfolio held $197.072 million of U.S. Treasury securities at fair value and recorded $1.015 million of accumulated other comprehensive loss. Management warns that higher interest rates could reduce the fair value of existing fixed-maturity securities.
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No material formal risk-factor changes
The filing states that there were no material changes to the risk factors disclosed in the December 31, 2025 Form 10-K. However, the Company continues to identify exposure to evolving privacy and cybersecurity requirements, regulatory scrutiny, and reliance on third-party cloud infrastructure.
Management's outlook
The 10-Q provides no explicit numeric revenue or EPS guidance. Management states that existing cash and expected operating cash flows should meet working capital, capital expenditures, and other liquidity requirements for at least the next 12 months.
Earlier filings 3
10-Q · May 7, 2026
Exzeo Group, Inc. reported Q1 2026 results with revenue of $55.5 million and EPS of $0.22, both above estimates (revenue estimate: $57.6 million and EPS estimate: $0.21). Revenue grew 6.0% year-over-year, driven…
10-K · February 26, 2026
Exzeo positions itself as an Insurance‑as‑a‑Service (IaaS) provider centered on its proprietary Exzeo Platform (advanced underwriting, data analytics, insurance management) and generates revenue from underwriting &…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.