What guidance did Exzeo Group's management provide for the next earnings period?

What is the market's earnings forecast for Exzeo Group next quarter?

What were the key takeaways from Exzeo Group's earnings call?

What does Exzeo Group do and what are its main business segments?

Did Exzeo Group beat or miss consensus estimates last quarter?

What is Exzeo Group's gross profit margin?

What factors drove the changes in Exzeo Group's revenue and profit?

What were the key takeaways from Exzeo Group’s earnings call?

- **Revenue Growth**: Q3 2025 revenue up 90% YoY to $55M, driven by underwriting services. Managed premium reached $1.2B, up 140% YoY.
- **Margin Expansion**: EBITDA margin improved to 55% (from 32% YoY), with free cash flow margin >50%.
- **Client Expansion**: Added two new clients in Q3/Q4 2025, bringing total to six. Pipeline tripled post-IPO, with diversification beyond Florida.
- **CEO Confidence**: CEO committed $2M to buy shares, signaling long-term optimism. 2026 guidance: managed premium ≥$1.5B, pretax income $115-125M.

**【Management Opening Remarks】**
- Exzeo Group, a leading innovator in Insurance-as-a-Service (Iaas) for property and casualty insurers, completed its IPO and added two new clients in Q3 and Q4 2025, bringing total carriers to six. These clients are expected to begin contributing revenue in Q4 2025, with modest initial impact.
- The company emphasizes its fee structure tied to managed premium, aligning growth with carrier expansion. The IPO brought $155M in net proceeds, enhancing cash position to $140M with no debt.

**【CEO Commentary】**
- CEO Paresh Patel highlighted the IPO as a validation of Exzeo's technology and business model. He announced a $2M share purchase plan, signaling confidence in future growth. The company is focused on expanding its platform through new clients and technology investment.
- The sales pipeline has tripled post-IPO, with diversification beyond Florida, including non-Florida-oriented prospects. This reflects broader industry recognition of Exzeo's value proposition.

**【CFO Financial Commentary】**
- Q3 2025 revenue surged 90% YoY to $55M, driven by underwriting services (85% of growth). Pretax income was $28M, with a 55% EBITDA margin, up from 32% in Q3 2024. Managed premium reached $1.2B (vs. $500M YoY), and ARR was $192M.
- Guidance for Q4 2025: managed premium ≥$1.32B, pretax income $22-25M. For 2026: managed premium ≥$1.5B, pretax income $115-125M. Free cash flow margin is expected to remain above 50%.

**【Q&A Highlights】**
- **Client Acquisition**: New clients joined for Exzeo's risk selection efficiency and technology. Established clients migrate at policy renewals, with Q4 2025 seeing accelerated growth in Florida.
- **Pipeline Dynamics**: Post-IPO, the pipeline tripled, with diversification across geographies and channels (reinsurance brokers, investment bankers). Non-Florida prospects are emerging.
- **Cash Flow & Margins**: New managed premium will contribute to 2026 revenue. Despite go-to-market investments, incremental margins remain high due to minimal expense growth relative to revenue.

Exzeo Group, Inc. (XZO) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

XZO

XZO fundamentals

You can ask Aime