Group 1 - Exzeo (XZO), an insurance software company, is approaching its first buy point this week amid stock market volatility, making it the IPO Stock of the Week to watch from Investor's Business Daily's IPO Leaders screen [5] - Exzeo provides an insurance-as-a-service platform specifically targeting property and casualty insurers, with a strong emphasis on homeowners insurance [5] Group 2 - Oracle's stock has seen a significant increase following reports that TikTok has signed a deal to create a U.S. joint venture [8]

For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FORM 10-Q (Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Exzeo Group, Inc. (Exact Name of Registrant as Specified in its Charter) Florida 85-2578837 (State or other jurisdiction of incorporation or organization ...

Financial Data and Key Metrics Changes - Exzeo reported a pretax income of over $28 million for Q3 2025, with diluted earnings per share at $0.25, and year-to-date pretax income reached $81 million with diluted earnings per share at $0.73 [10] - Revenue for Q3 increased by 90% year-over-year to $55 million, driven by growth in managed premium and the onboarding of HCI-related insurance carriers [10][12] - Adjusted EBITDA margin improved to approximately 55% from 32% in the prior year quarter, indicating efficient scaling of the business model [11] Business Line Data and Key Metrics Changes - The primary revenue categories include underwriting and management services, claim services, and other technology services, with underwriting and management revenue being the largest contributor, accounting for over 85% of the revenue increase in Q3 [10][11] - Managed premium at the end of Q3 was approximately $1.2 billion, up from about $500 million in the prior year quarter, primarily due to the completion of onboarding HCI-related insurance carriers [12] Market Data and Key Metrics Changes - Annual recurring revenue reached $192 million in Q3, an increase from about $118 million in the prior year quarter, reflecting the business model's visibility and durability [12] - The company expects managed premium to reach at least $1.32 billion by the end of 2025 and $1.5 billion by the end of 2026 [14] Company Strategy and Development Direction - Exzeo aims to expand its managed premium on the platform and continue delivering exceptional margins and growth, with a focus on adding new clients and enhancing technology [7][15] - The company is actively building its sales channels, receiving referrals from various sources, and plans to onboard new sales team members after the year-end [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential as more insurers recognize the value of the Exzeo platform, with a strong sales pipeline that has tripled since the IPO [20][15] - The company anticipates strong free cash flow margins and expects to convert net income at a rate of 140%, maintaining a robust financial position [25] Other Important Information - Exzeo ended the quarter with $140 million in cash and cash equivalents, an increase of over $86 million, and has no debt [12] - The net proceeds from the IPO of about $155 million will further strengthen the cash position [13] Q&A Session Summary Question: Commonality in new customers and their contributions - The new customers added in Q3 and Q4 had technology needs and recognized the efficiency and improved risk selection offered by the Exzeo platform, contributing positively to the model moving into 2026 [20] Question: Go-to-market activities and sales channel build-out - The sales channels are expanding with referrals from reinsurance brokers and direct outreach, and the company is focused on finding culturally fit candidates with industry and technology knowledge for the sales team [21][23] Question: Cash flow dynamics and seasonality - The additional managed premium in Q4 will convert to revenue in 2026, with expected strong free cash flow margins continuing [25] Question: Premium ramp for non-HCI customers and pipeline strength - The ramp for new clients varies based on their growth opportunities, and established customers typically transition to the Exzeo platform at renewal [30] - The pipeline has diversified with prospects from various channels, including non-Florida-oriented opportunities, indicating strong growth potential [39]

Financial Data and Key Metrics Changes - Exzeo reported a pretax income of over $28 million for Q3 2025, with diluted earnings per share at $0.25, and year-to-date pretax income reached $81 million with diluted earnings per share at $0.73 [7][10] - Revenue for Q3 2025 increased by 90% year-over-year to $55 million, driven by growth in managed premium and the onboarding of HCI-related insurance carriers [8][10] - Adjusted EBITDA margin improved to approximately 55% from 32% in the prior year quarter, indicating efficient scaling of the business model [9][10] - Managed premium at the end of Q3 was approximately $1.2 billion, up from about $500 million in the prior year quarter [10] - Annual recurring revenue reached $192 million in Q3, an increase from about $118 million in the prior year quarter [10] Business Line Data and Key Metrics Changes - Exzeo's revenue categories include underwriting and management services, claim services, and other technology services, with underwriting and management revenue being the largest contributor, accounting for over 85% of the revenue increase in Q3 [8][9] - The company plans to disclose several key performance indicators (KPIs) each quarter to help investors track progress [9] Market Data and Key Metrics Changes - The company has added two new clients in Q3 and Q4, bringing the total number of carriers on the Exzeo platform to six, with expectations for modest initial revenue contributions from these clients [5][10] - The sales pipeline has tripled since the IPO, indicating strong market interest and potential for future growth [17] Company Strategy and Development Direction - Exzeo aims to expand managed premium on its platform and deliver exceptional margins and growth, focusing on adding new carriers and enhancing technology [5][13] - The company recognizes the importance of managed premium as a key metric for investors and is committed to strategies that fuel growth [6][10] - The management emphasizes the need for operational discipline and investment in technology to generate long-term growth and shareholder value [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the Exzeo platform as more insurers recognize its value [13] - The company expects managed premium to reach at least $1.32 billion by the end of 2025 and $1.5 billion by the end of 2026 [12] - Management highlighted the historical seasonality in managed premium, with Q4 typically delivering the largest increase [11] Other Important Information - Exzeo ended Q3 with $140 million in cash and cash equivalents, an increase of over $86 million, and has no debt [10] - The net proceeds from the IPO of about $155 million will further strengthen the company's cash position [11] Q&A Session Summary Question: Commonality in New Customers - The new customers added in Q3 and Q4 had technology needs and recognized the efficiency and improved risk selection offered by the Exzeo platform [17] Question: Go-to-Market Activities - The sales channels have been effective, with referrals from reinsurance brokers and direct outreach contributing to client acquisition [19] Question: Cash Flow Dynamics - The additional managed premium in Q4 will convert to revenue in 2026, with expected strong free cash flow margins [21] Question: Premium Ramp for New Clients - The ramp for new clients varies; established customers typically transition their premium at renewal [27] Question: Current Pipeline Composition - The pipeline has diversified, with prospects coming from various channels and including both Florida-oriented and non-Florida-oriented opportunities [34]

Core Points - Exzeo Group, Inc. will hold a conference call on December 10, 2025, at 4:45 p.m. ET to discuss its third quarter earnings for the period ending September 30, 2025 [1][2] - Financial results will be released in a press release on the same day after market close [1] - A replay of the call will be available on the company's Investor Relations website after 8:00 p.m. ET on the same day [3] Company Overview - Exzeo Group is a leading innovator in technology solutions specifically designed for property and casualty (P&C) insurance carriers, with a strong emphasis on the homeowners insurance market [4] - The company offers an "Insurance-as-a-Service" platform that provides a comprehensive suite of digital tools and services, enhancing operations from quoting and underwriting to policy administration, claims handling, data analytics, and financial reporting [4] - By integrating advanced technology with industry expertise, Exzeo aims to improve underwriting precision, operational efficiency, and overall performance across the insurance value chain [4]

Company Overview - Exzeo Group, Inc. is an emerging growth company as defined under the Securities Act of 1933[3]. Financial Reporting - HCI Group, Inc., the controlling shareholder of Exzeo, filed its Quarterly Report on Form 10-Q for Q3 2025 on November 7, 2025[5]. - Exzeo's financial information for the three and nine months ended September 30, 2025, is included in HCI's Q3 10-Q, but Exzeo has not yet released its own financial statements[5]. - Exzeo intends to file its Quarterly Report on Form 10-Q within 45 days following the effective date of its Registration Statement on Form S-1[5]. - The financial information provided by HCI was prepared in accordance with an insurance company presentation format[5]. - The report includes select financial information for Exzeo for the periods ended September 30, 2025, and 2024[9]. - The report is not deemed "filed" for purposes of the Exchange Act or incorporated by reference in any filing under the Securities Act[6]. - The report was signed by Brook Baker, General Counsel of Exzeo Group, Inc.[13]. Forward-Looking Statements - Forward-looking statements regarding Exzeo's future filings are subject to various risks and uncertainties[7]. - Exzeo disclaims all obligations to update any forward-looking statements made in the report[7].

Core Viewpoint - Exzeo Group, a spin-off from HCI Group, raised $168 million by issuing 8 million shares at $21 each, with a fully diluted market capitalization of $2 billion [1] Company Overview - Exzeo Group provides insurance technology solutions for property and casualty insurers and their agents through its proprietary Exzeo platform, which includes 9 software and data analytics applications [1] - The platform supports various functions such as quoting and underwriting, policy management, claims management, data and analytics, reporting, and financial management [1] - Exzeo currently serves clients in 13 states and holds insurance agent or managing general agent licenses in 29 states, managing over $1.2 billion in effective premiums [1] Financial Performance - Founded in 2012, Exzeo reported a revenue of $182 million for the 12 months ending June 30, 2025 [1] - The company plans to list on the New York Stock Exchange under the ticker symbol XZO [1] Transaction Details - The offering was underwritten by Truist Securities, Citizens JMP, and William Blair [1] - On its first day of trading, Exzeo Group's stock closed down 2.38% at $20.51 [1]

Core Insights - Exzeo Group, Inc. (XZO) shares have been trading flat on their opening day, which is surprising given the company's impressive growth in the insurance solutions software platform [1] Group 1: Company Performance - Exzeo Group is demonstrating significant growth in its software platform for insurance solutions, indicating strong market potential [1] Group 2: Market Context - The investment group "Value In Corporate Events" focuses on identifying opportunities in major corporate events such as IPOs, mergers & acquisitions, and earnings reports, covering 10 major events monthly [1]

Core Insights - Exzeo Group, an insurance technology firm, made its debut on the New York Stock Exchange with shares opening flat, which indicates a stable initial market reception [1] - The company's valuation reached nearly $1.91 billion at the time of its market entry, reflecting investor interest in the insurance technology sector [1] Company Summary - Exzeo Group is positioned within the insurance technology industry, highlighting the growing trend of technology integration in traditional insurance practices [1] - The flat opening of shares suggests a cautious optimism among investors regarding the company's future performance and market potential [1]

Core Viewpoint - Exzeo Group, an insurance technology firm, successfully raised $168 million in its U.S. initial public offering (IPO), pricing its shares within the marketed range, marking a significant event in the insurance sector [1] Group 1: Company Overview - Exzeo Group is positioned as a technology-driven company within the insurance industry, indicating a trend towards digital transformation in traditional sectors [1] Group 2: Financial Highlights - The company raised a total of $168 million through its IPO, reflecting strong investor interest and confidence in its business model [1] - The shares were priced within the marketed range, suggesting effective pricing strategy and market conditions favorable for IPOs in the insurance technology space [1]