Revenue growth accelerated to 56.4% year-over-year in Q2 2026, with a combined ratio of 77.8% and EPS of $1.94, though EPS missed consensus by $0.26.
Palomar Holdings, Inc. (PLMR) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Revenue | 1.23B | 875.97M | 553.86M | 375.93M | 327.09M | 247.79M | 168.46M | 113.3M | 72.97M | 59.47M | 42.7M |
| Revenue Growth % | 58.94% | 58.16% | 47.33% | 14.93% | 32% | 47.09% | 48.69% | 55.26% | 22.71% | 39.28% | - |
| Medical Costs & Claims | 552.2M | 228.59M | 284.42M | 180.34M | 189.44M | 136.89M | 128.16M | 42.85M | 34.5M | 37.65M | 24.63M |
| Medical Cost Ratio % | 44.77% | 26.1% | 51.35% | 47.97% | 57.92% | 55.24% | 76.07% | 37.82% | 47.28% | 63.31% | 57.69% |
| Gross Profit | 681.12M | 647.37M | 269.45M | 195.59M | 137.64M | 110.9M | 40.31M | 70.44M | 38.47M | 21.82M | 18.06M |
| Gross Margin % | 55.23% | 73.9% | 48.65% | 52.03% | 42.08% | 44.76% | 23.93% | 62.18% | 52.72% | 36.69% | 42.31% |
| Gross Profit Growth % | - | 140.26% | 37.76% | 42.1% | 24.11% | 175.14% | -42.78% | 83.1% | 76.33% | 20.79% | - |
| Operating Expenses | 395.33M | 393.98M | 118.25M | 91.95M | 70.09M | 53.76M | 34.08M | 52.37M | 20.26M | 16.89M | 11.79M |
| OpEx / Revenue % | 32.05% | 44.98% | 21.35% | 24.46% | 21.43% | 21.7% | 20.23% | 46.22% | 27.76% | 28.4% | 27.61% |
| Depreciation & Amortization | 20.87M | 8.93M | 5.11M | 4.5M | 4.12M | 3.54M | 1.34M | 216K | 212K | 160K | 88K |
| Combined Ratio % | 76.83% | 71.07% | 72.7% | 72.43% | 79.35% | 76.94% | 96.31% | 84.04% | 75.04% | 91.71% | 85.3% |
| Operating Income | 285.79M | 253.39M | 151.2M | 103.64M | 67.55M | 57.14M | 6.22M | 18.08M | 18.21M | 4.93M | 6.28M |
| Operating Margin % | 23.17% | 28.93% | 27.3% | 27.57% | 20.65% | 23.06% | 3.69% | 15.96% | 24.96% | 8.29% | 14.7% |
| Operating Income Growth % | - | 67.59% | 45.88% | 53.43% | 18.22% | 818.17% | -65.58% | -0.75% | 269.58% | -21.49% | - |
| EBITDA | 309.82M | 262.32M | 156.3M | 108.14M | 71.67M | 60.68M | 7.56M | 18.29M | 18.43M | 5.09M | 6.37M |
| EBITDA Margin % | 25.12% | 29.95% | 28.22% | 28.77% | 21.91% | 24.49% | 4.49% | 16.15% | 25.25% | 8.56% | 14.91% |
| Interest Expense | 13.33M | 392K | 1.14M | 3.77M | 873K | 40K | 0 | 1.07M | 2.3M | 1.75M | 1.63M |
| Non-Operating Income | -8.19M | -392K | -1.14M | -3.77M | -873K | -40K | 0 | -1.07M | -2.3M | -1.75M | -1.63M |
| Pretax Income | 280.65M | 253.39M | 151.2M | 103.64M | 67.55M | 57.14M | 6.22M | 18.08M | 18.21M | 4.93M | 6.28M |
| Pretax Margin % | 22.76% | 28.93% | 27.3% | 27.57% | 20.65% | 23.06% | 3.69% | 15.96% | 24.96% | 8.29% | 14.7% |
| Income Tax | 63.61M | 56.32M | 33.62M | 24.44M | 15.38M | 11.29M | -34K | 7.46M | -6K | 1.15M | -337K |
| Effective Tax Rate % | 22.67% | 22.23% | 22.24% | 23.58% | 22.77% | 19.76% | -0.55% | 41.25% | -0.03% | 23.23% | -5.37% |
| Net Income | 217.04M | 197.07M | 117.57M | 79.2M | 52.17M | 45.85M | 6.26M | 10.62M | 18.22M | 3.78M | 6.61M |
| Net Margin % | 17.6% | 22.5% | 21.23% | 21.07% | 15.95% | 18.5% | 3.71% | 9.37% | 24.97% | 6.36% | 15.49% |
| Net Income Growth % | 23.41% | 67.62% | 48.45% | 51.81% | 13.79% | 632.73% | -41.09% | -41.7% | 381.6% | -42.8% | - |
| EPS (Diluted) | 8.04 | 7.17 | 4.48 | 3.13 | 2.02 | 1.76 | 0.24 | 0.49 | 0.81 | 0.17 | 0.29 |
| EPS Growth % | 24.65% | 60.04% | 43.13% | 54.95% | 14.77% | 633.33% | -51.02% | -39.51% | 376.47% | -41.38% | - |
| EPS (Basic) | - | 7.40 | 4.61 | 3.19 | 2.07 | 1.80 | 0.25 | 0.49 | 0.81 | 0.17 | 0.29 |
| Diluted Shares Outstanding | 27M | 27.49M | 26.22M | 25.33M | 25.8M | 26.11M | 25.6M | 21.83M | 22.63M | 22.63M | 22.63M |
Quick answers to the most common questions about buying PLMR stock.
For fiscal year 2025, Palomar Holdings, Inc. (PLMR) reported total revenue of $876.0M. This represents a 1951.6% increase compared to $42.7M in 2016.
Palomar Holdings, Inc. (PLMR) is profitable, generating $197.1M in net income for the fiscal year ending 2025 with a net profit margin of 22.5%.
Palomar Holdings, Inc. (PLMR) reported an operating income of $253.4M, resulting in an operating profit margin of 28.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Palomar Holdings, Inc. (PLMR) generated $647.4M in gross profit for the year, representing a gross profit margin of 73.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Reinsurance cost inflation and casualty reserve risk
Metrics are mathematically derived from official filings.
Premium Growth Accelerates on Fronting
Revenue surged 56.4% year-over-year in Q2 2026 to $314.4M, driven by rapid scaling of PLMR-Front and casualty lines, as reported in the latest quarterly filing.
The 56.4% revenue growth in Q2 2026 marks an acceleration from the 53.1% in Q2 2025, indicating that the company's strategic pivot toward fee-based fronting and casualty underwriting is gaining momentum. This growth is increasingly reliant on non-catastrophe lines, which may reduce earnings volatility but also introduces new underwriting risks. Investors should monitor whether this pace is sustainable as the company scales into less proven segments.
Underwriting Margins Remain Strong
Combined ratio improved to 77.8% in Q2 2026 from 70.2% a year earlier, still well below 100%, indicating robust underwriting profitability, per financial statements.
Despite a higher loss ratio in Q2 2026 (54.1% vs 48.7% in Q2 2025), the combined ratio remains exceptionally low, reflecting the benefits of ceding commissions and a capital-light model. The sequential deterioration from Q1 2026's 80.8% suggests some quarterly noise, but the overall trend indicates that the company is maintaining pricing discipline. The sustainability of these margins depends on reinsurance costs, which have been hardening.
Reserve Releases Bolster Earnings
Prior-year reserve development appears favorable, as evidenced by low loss ratios in non-catastrophe quarters, but the shift to casualty lines introduces long-tail uncertainty, based on reported figures.
The low loss ratios in Q4 2025 (28.0%) and Q1 2026 (31.2%) suggest that the company is releasing reserves from prior accident years, which inflates current earnings. While this is a positive signal for reserve adequacy, the growing casualty book means that ultimate losses may not be known for years. Analysts should scrutinize the adequacy of reserves for these longer-tail lines, as adverse development could emerge.
Investment Income Supports Earnings
Investment income data is not disclosed in the provided table, but the company's short-duration fixed-income portfolio likely benefits from higher rates, as noted in company intelligence.
Although investment income figures are unavailable, the company's strategy of investing in short-duration fixed-income securities suggests that rising interest rates are boosting yields. This provides a stable, non-underwriting source of earnings that can offset potential underwriting volatility. However, the contribution is likely modest relative to underwriting income, and investors should monitor the yield trend in future disclosures.
Expense Ratio Benefits from Scale
The expense ratio, implied by the combined ratio, has remained low, with operating leverage improving as revenue grows, according to the income statement data.
The combined ratio's decline from 74.6% in Q2 2024 to 77.8% in Q2 2026, despite higher loss ratios, indicates that the expense ratio is being controlled. The scaling of fronting and casualty lines likely spreads fixed costs over a larger premium base, enhancing operating efficiency. This trend is critical for maintaining profitability as the company expands into new lines.
Earnings Quality Questioned by EPS Miss
Q2 2026 EPS of $1.94 missed consensus of $2.20 despite record net income and raised guidance, raising questions about earnings quality, as reported in recent filings.
The discrepancy between the EPS miss and the raised full-year guidance suggests that either the company is being conservative in its back-half estimates or there was a one-time charge in the quarter. This warrants close monitoring of the Q3 report to confirm that the underlying business is as strong as the guidance implies. Additionally, the hardening reinsurance market could pressure margins if the company retains more risk or pays higher ceding commissions.