Exzeo Adjusted EBITDA Falls as Platform Premiums Grow

The Tip Desk · November 11, 2026 · 3 min read

Third-quarter revenue held at $55.2 million while Adjusted EBITDA was $27.6 million, down from $28.7 million a year earlier.

Exzeo Group (XZO), a technology provider for property and casualty insurers, reported third-quarter revenue of $55.2 million, in line with the year-ago period, after a second-quarter increase.

Adjusted Revenue, which excludes outsourced claims service revenue that the company said is driven largely by catastrophe events, rose to $53.9 million from $52.4 million. The company attributed the increase to growth in underwriting and management services from new and existing customers.

Net income was $22.3 million, compared with $21.2 million a year earlier. Basic and diluted earnings per share were $0.25 in both periods.

Managed Premium, the aggregate gross dollar value of in-force premiums processed on Exzeo’s platform, increased to $1.4 billion from $1.2 billion. Annual Recurring Revenue rose to $205.8 million from $192.4 million, which the company said reflected growth in Managed Premium and the related recurring fee base.

Adjusted EBITDA was $27.6 million, compared with $28.7 million a year earlier. Adjusted EBITDA Margin was 51%, versus 55% in the prior-year period. Exzeo said it continued to invest in strategic initiatives to support long-term growth, including expanding its workforce and enhancing operational infrastructure.

Operating income was $26.2 million. Interest income was $3.3 million. Income before income taxes was $29.8 million.

Cash, cash equivalents and investments totaled $350.2 million at September 30, consisting of $116.4 million in cash and cash equivalents and $233.8 million in available-for-sale fixed-maturity securities.

During the third quarter, Exzeo repurchased 410,585 shares of common stock for approximately $7.0 million under its May 2026 and August 2026 share repurchase programs. The May 2026 program was completed on July 8, 2026. Approximately $20.0 million remained available under the August 2026 program as of September 30.

For the nine months ended September 30, 2026, revenue increased to $168.5 million from $163.7 million. Adjusted Revenue for that period was $164.2 million, compared with $154.8 million. Net income was $66.0 million, and basic and diluted earnings per share were $0.73 in both periods. Adjusted EBITDA was $84.1 million, with an Adjusted EBITDA Margin of 51%, versus 54% in the prior-year period.

Net cash provided by operating activities was $72.6 million for the nine months, compared with $89.0 million. Free Cash Flow was $71.7 million, compared with $86.6 million. The company said the decrease was primarily due to the timing of business growth and associated cash collections, partially offset by higher net income.

Chairman and Chief Executive Officer Paresh Patel said AI will reshape the insurance industry “not just in expense ratios but in how coverage is bought and sold,” and that the company is starting from a strong position with the team, technology and balance sheet to pursue new offerings with carrier partners while remaining profitable.