Palomar's Q2 Revenue Jumps 55%, Raises 2025 Outlook

Palomar (PLMR) reported Q2 2025 revenue of $203.3 million, a 55% YoY increase, and non-GAAP earnings per share of $1.76, beating the $1.67 analyst estimate. Net earned premiums rose 47.2% YoY, and the company raised its outlook for adjusted net income for 2025. Growth was driven by solid organic growth across key business lines, increases in profitability, and progress on Palomar's diversification initiatives.

Palomar Holdings Inc. (PLMR) delivered robust financial results for the second quarter of 2025, surpassing analyst expectations. The company reported a 55% year-over-year (YoY) increase in revenue, reaching $203.3 million, and non-GAAP earnings per share (EPS) of $1.76, beating the $1.67 analyst estimate [1]. Net earned premiums rose by 47.2% YoY, reflecting the company's solid organic growth across key business lines.

The strong performance was driven by significant increases in profitability and progress on Palomar's diversification initiatives. The company's gross written premiums increased by 29%, with notable growth in the casualty and crop segments [1]. Palomar's adjusted net income rose by 52% to $48.5 million, demonstrating the company's ability to capitalize on market opportunities and manage operational efficiencies effectively.

Despite the positive earnings report, shares of Palomar fell by 13.07% in after-hours trading, closing at $114.34. This decline may be attributed to broader market volatility and investor caution regarding future market conditions. The current stock price is significantly below its 52-week high of $175.85, but the stock trades at an attractive PEG ratio of 0.6, indicating potential undervaluation relative to its growth prospects [1].

Palomar raised its full-year adjusted net income guidance to a range of $198 million to $208 million, with expectations of an adjusted return on equity above 20%. The company is targeting $200 million in crop premiums for 2025 and anticipates high single-digit growth in its earthquake franchise [1].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-palomar-holdings-q2-2025-beats-expectations-93CH-4171122