NP · Neptune Insurance Holdings Inc.

Neptune Insurance Holdings Inc. delivered strong Q1 2026 results with revenue surging 29% year-over-year to $37.8 million, fueled by a larger renewal portfolio, increased commission income as a percentage of written premium, and expanded distribution amid demand growth from the prior quarter's government shutdown. Written premiums grew 26% to a record $86.7 million for the quarter, supported by robust new business sales exceeding prior year by 44%, while policies in force reached 295 thousand and premium in force hit $388.7 million. Despite the top-line strength, GAAP net income fell 26% to $7.3 million (19% margin) primarily due to $6.9 million in elevated share-based compensation and higher public company audit costs concentrated early in the year. Adjusted metrics painted a brighter picture, with Adjusted EBITDA up 26% to $21.6 million at a 57.1% margin and Adjusted net income rising 21% to $13.4 million, underscoring underlying operating leverage. Management attributes margin pressure to timing effects and expects normalization through the year. Balance sheet improvements included $13 million in debt paydowns using $16.7 million operating cash flow, reducing net leverage to 2.2x from 2.5x. Complementing the results, the Board authorized a flexible $100 million open-market repurchase program for Class A common stock, fundable via operations or credit facility, signaling confidence in valuation and commitment to shareholder returns. Looking ahead, Neptune raised full-year 2026 guidance to $195 million revenue (from prior implied levels) and 60-61% Adjusted EBITDA margins, bolstered by Q1 momentum, technology enhancements like Atlas+ and Proteus, capacity expansion to 42 providers, and sustained 90%+ revenue retention. The company operates at a Rule of 40 score of 91, balancing 29% growth with high margins amid a softening real estate market and quieter storm season.