XZO · Exzeo Group, Inc.

Exzeo Group's Q1 2026 results showed continued momentum with revenue up 6% to $55.5 million, primarily from new customers and expansion in underwriting and management services from existing clients. Gross profit improved to $32.7 million, reflecting better cost of revenue control at $22.8 million versus $23.6 million prior year. Operating expenses rose modestly to $7.7 million, driven by higher selling, general and administrative costs to $5.2 million amid investments in growth. This yielded operating income of $25.1 million and pre-tax income of $27.6 million, boosted by $2.5 million in investment income. Net income reached $20.4 million after $7.2 million tax expense, maintaining EPS at $0.22 despite share count growth post-IPO. CEO Paresh Patel highlighted strong managed premium growth to $1.43 billion, addition of a seventh carrier partner, and progress on strategic priorities like profitable growth and product innovation six months post-IPO. Non-GAAP Adjusted EBITDA rose to $26.5 million with a 49% margin, slightly below prior 50% due to personnel and infrastructure investments. Cash generation strengthened with $25.5 million from operations and $25.1 million free cash flow, though investing outflows for $99 million in fixed-maturity securities reduced cash to $231 million from $305 million at year-end. Balance sheet remains solid with total assets at $380 million and equity at $275 million. A conference call was held on May 6 at 5:45 p.m. ET to discuss results.