Exzeo Group, Inc. (XZO)

Price$16.40Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkStrong cash reserves offset a valuation that assumes recent earnings will broadly endure.

Using about 90.1 million shares, the quoted market value is roughly $1.42 billion. Trailing net income, calculated from 2025 less the first half of 2025 plus the first half of 2026, is about $86.8 million, putting the shares near 16 times earnings. Cash and Treasury securities minus debt total about $327 million; subtracting that leaves roughly $1.09 billion for operations, or about 13 times trailing free cash flow—cash left after running and investing in the business. That looks balanced, not clearly mispriced.

Big pictureEarnings remain durable, although cash conversion weakened and storm-related work makes results uneven.

The 2023-to-2025 leap—from $88.3 million to $217.0 million of revenue and from $21.5 million to $82.7 million of net income—shows strong scaling, but the latest pace is far slower. First-half 2026 revenue rose 4.4% and net income 10.3%. Operating cash fell from $57.5 million to $40.9 million, attributed to collection timing; free cash flow fell similarly. Underwriting and management revenue grew 6.5%, while storm-related claim revenue dropped 11.8%. With 91.7% of managed premium in Florida, weather cycles can make claim work uneven.

Business strengthLow capital needs and ample cash protect the business, but customers remain highly concentrated.

At June 30, 2026, cash and Treasury securities were $333.8 million against $97.6 million of total liabilities, while first-half capital spending was just $0.5 million. Gross profit equaled 61.4% of revenue and operating profit 47.2%, evidence of a low-cost, scalable platform. Annual recurring revenue—the contracted fee run-rate linked mainly to managed insurance premiums—rose 7.9% to $210.7 million. The weakness is dependence: two related-party customers generated 86.9% of revenue, although that improved from 94.0%, and parent HCI retains control over major decisions.

What could change the storyBroader customer growth would justify upside, while stalled growth or new shares would expose weak assumptions.

Upside needs third-party carrier wins to push recurring revenue into sustained double-digit growth and reduce related-party concentration; that would make the valuation after net cash look conservative. The bear case is continued mid-single-digit sales growth while added staff and infrastructure absorb margin. The public offering funded the cash cushion but lifted shares outstanding about 9% from year-end 2024 to June 2026. Buybacks then retired 834,250 shares for $12 million, while a new $25 million authorization equals about 1.8% of market value. Future grants and 6.35 million above-market options remain possible dilution.

AI: News

Second-quarter growth cooledProfit rose, but modest sales growth and weaker cash generation tempered the second-quarter result.

On August 6, Exzeo reported second-quarter revenue up 3.0% to $57.8 million and net income up 7.4% to $23.3 million. Earnings per share was unchanged because the share base was larger. Managed premium grew 14.4% and annual recurring revenue 7.9%, but the company’s adjusted profit margin, excluding interest, taxes and selected accounting costs, slipped to 53.2% from 56.5%. First-half free cash flow dropped 28.3% to $40.4 million. Shares closed 4.9% lower the next session; timing suggests concern but does not prove causation.

Larger buyback authorizedThe board approved more share repurchases, offering modest support without committing to complete them.

On August 14, the board authorized up to $25 million of repurchases over one year, after a prior $12 million program bought 834,250 shares and finished in July. At the observed market value, the new authorization could retire roughly 1.8% of outstanding equity if fully used near similar prices. This can lift each remaining share’s claim on earnings, but the plan is discretionary and small beside the $333.8 million cash-and-Treasury balance; authorization is not evidence that purchases have occurred.

Artificial intelligence venture launchA new internal venture unit may widen future products, but no revenue or spending targets were provided.

On August 6, Exzeo launched Exzeo Ventures to develop products built around artificial intelligence. Named areas include automated catastrophe-claim agents, underwriting and risk-transfer tools, and insurance distribution automation. The division could create new revenue streams and deepen the platform, which is the bull case. Reported fact: the announcement gave no budget, launch timetable, customer commitments, or financial targets. Inference: with adjusted margins already lower amid workforce and infrastructure investment, near-term costs are clearer than any valuation benefit.

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Revenue

2023

2024

2025

Net income

2023

2024

2025

Free cash flow

2023

2024

2025

Total cash / debt

CashTotal debt

2023

2024

2025

Financial statements

	2025	2024	2023	2022
Revenue	$217.0M	$133.9M	$88.3M	—
Gross profit	$131.0M	$53.2M	$17.3M	—
Gross margin	60.38%	39.72%	19.55%	—
Research & development	$8.8M	$6.5M	$6.5M	—
Operating expenses	$25.0M	$15.2M	$14.7M	—
Operating income	$106.0M	$38.0M	$2.6M	—
Operating margin	48.85%	28.38%	2.89%	—
EBITDA	$108.4M	$40.2M	$4.5M	—
EBITDA margin	49.96%	30.04%	5.04%	—
Net income	$82.7M	$45.3M	$21.5M	—
Net profit margin	38.14%	33.83%	24.30%	—
Basic EPSper basic share	$0.99	$0.44	$0.15	-$0.75
Diluted EPSper diluted share	$0.99	$0.44	$0.15	-$0.75

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈83.15%of listed shares

HCI Group, Inc.75M shares · Nov 4, 2025

View holders

Top 20 reported holders of XZO
Holder	% owned
HCI Group, Inc.	≈83.15%75M shares
Patel Paresh	≈1.85%1.67M shares
Jupiter Topco LLC	0.81%728.24K shares
Mitchell Kevin Andrew	≈0.79%715.14K shares
AMERICAN CENTURY COMPANIES INC	0.67%602.83K shares
GOLDMAN SACHS GROUP INC	0.63%571.34K shares
JENNISON ASSOCIATES LLC	0.63%568.68K shares
Whetstone Capital Advisors, LLC	0.60%541.54K shares
BlackRock, Inc.	0.51%457.88K shares
Bulku Suela	≈0.35%314.87K shares
ESSEX INVESTMENT MANAGEMENT CO LLC	0.30%268.7K shares
Baker Brook Armstrong	≈0.28%249.03K shares
FJ Capital Management LLC	0.25%223.79K shares
CITADEL ADVISORS LLC	0.19%172.7K shares
STATE STREET CORP	0.17%150K shares
Nuveen, LLC	0.16%145.08K shares
Macchiarola James J	≈0.16%140K shares
JACOBS LEVY EQUITY MANAGEMENT, INC	0.16%139.91K shares
Lopes Robert A. Jr.	≈0.14%127.34K shares
TWO SIGMA INVESTMENTS, LP	0.13%121.22K shares

Percentages use 90.2M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 3 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys73$4.14M disclosed value

Sells (SEC code S)0$0.00 disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 27, 2026Form 4 · 10b5-1	Patel PareshChief Executive Officer	BuyCommon Stock	2.0K	$13.67	$27.3K	1.67M
May 26, 2026Form 4 · 10b5-1	Patel PareshChief Executive Officer	BuyCommon Stock	2.0K	$13.26	$26.5K	1.67M
May 22, 2026Form 4 · 10b5-1	Patel PareshChief Executive Officer	BuyCommon Stock	2.0K	$12.92	$25.8K	1.67M
May 21, 2026Form 4 · 10b5-1	Patel PareshChief Executive Officer	BuyCommon Stock	2.0K	$12.82	$25.6K	1.67M
May 20, 2026Form 4 · 10b5-1	Patel PareshChief Executive Officer	BuyCommon Stock	2.0K	$13.33	$26.7K	1.66M

Review ownership filings at SEC.gov ↗

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Exzeo Group, Inc. (XZO)

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