AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
Palomar's Q2 Revenue Jumps 55%, Raises 2025 Outlook
ByAinvest
Tuesday, Aug 5, 2025 9:04 pm ET1min read
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
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet