Exzeo Group (XZO) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose to $58 million, up from $56 million in the prior quarter and $56.1 million year-over-year, driven by growth in underwriting and management services from both new and existing customers.

• Net income for Q2 2026 increased to $23.3 million from $21.7 million year-over-year, with pre-tax income over $31 million, exceeding guidance.

• Managed Premium reached $1.4 billion, up from $1.2 billion sequentially and $1.22 billion year-over-year, reflecting robust platform growth.

• Annual Recurring Revenue increased to $211 million from $195 million in the prior quarter and $210.7 million from $195.3 million year-over-year.

• Launched Exzeo Ventures, a new division focused on developing AI-native products and services for the insurance industry.

Financial highlights

• Adjusted EBITDA for Q2 2026 was $29.9 million, with a margin of 53.2%, and annualized margins above 50% expected to continue.

• Earnings per share for Q2 were $0.26; year-to-date EPS reached $0.48.

• Shareholders' equity increased to $288 million from $254 million at year-end.

• Cash, cash equivalents, and investments totaled $333.8 million at quarter end.

• Free Cash Flow for the first half of 2026 was $40.4 million, down from $56.3 million, mainly due to timing of business growth and cash collections.

Outlook and guidance

• Q3 pre-tax income expected between $28 million and $31 million; Managed Premium guidance at $1.4 billion.

• Full-year Managed Premium guidance unchanged at $1.55 billion.

• Revenue expected to peak in Q2, with typical seasonality leading to modest Q3 and slight Q4 step down.

• Management expects continued growth from new and existing customers, with a focus on diversifying the customer base and expanding into new geographies.

• Continued investment in technology, workforce, and operational infrastructure to support scalability and regulatory compliance.