Neptune Insurance (NP) investor relations material

Executive summary

• Q3 revenue reached a record $59.567M, up 34.3% YoY; net income rose 49.9% to $17.256M, and Adjusted EBITDA increased 37.5% to $36.8M at a 61.7% margin.

• Record new-business sales and higher policy counts and premium volume supported growth; Palomar rollover contributed $2.0M of Q3 revenue.

• Atlas+ and AI-supported underwriting, pricing and policy issuance through Triton supported agent productivity and distribution.

Financial highlights

• Q3 commission income was $45.913M, up 35.4% YoY; fee income was $13.654M, up 30.7%.

• Q3 Adjusted net income was $24.276M, up 51.8%; operating income was $28.0M versus $20.7M a year earlier.

• Nine-month revenue was $153.2M, up 32.3%; net income was $40.4M and Adjusted EBITDA was $92.8M.

• Nine-month operating cash flow was $69.3M versus $38.9M in the prior-year period; cash and fiduciary cash totaled $77.9M at September 30.

• Q3 written premium reached a record $132.7M, up 30.8% YoY.

Outlook and guidance

• FY2026 revenue guidance was raised to $204M, with Adjusted EBITDA margin expected to exceed 61%.

• Initial FY2027 guidance is $238M revenue and a 61% Adjusted EBITDA margin; it excludes housing recovery, above-average hurricane activity, inorganic growth and substantial new-product contribution.

• FY2027 outlook assumes continued strong premium and revenue retention and new-business growth, without an NFIP change or particularly strong hurricane season.

• Indemnity earthquake product was in beta, with formal launch anticipated in Q4 and cross-sell testing underway.

• Existing cash and undrawn revolver capacity are expected to cover working capital and capital expenditure needs for at least 12 months; software investment is expected to continue at a similar or slightly greater pace.