Palomar achieved aggressive top-line expansion with 59.7% year-over-year revenue growth in 2026Q1 while maintaining underwriting discipline through an 80.8% combined ratio.
| Revenue | 977.99M | 875.97M | 553.86M | 375.93M | 327.09M | 247.79M | 168.46M | 113.3M | 72.97M | 59.47M | 42.7M |
| Revenue Growth % | 60.34% | 58.16% | 47.33% | 14.93% | 32% | 47.09% | 48.69% | 55.26% | 22.71% | 39.28% | - |
| Medical Costs & Claims | 384.86M | 228.59M | 284.42M | 180.34M | 189.44M | 136.89M | 128.16M | 42.85M | 34.5M | 37.65M | 24.63M |
| Medical Cost Ratio % | 39.35% | 26.1% | 51.35% | 47.97% | 57.92% | 55.24% | 76.07% | 37.82% | 47.28% | 63.31% | 57.69% |
| Gross Profit | 593.13M | 647.37M | 269.45M | 195.59M | 137.64M | 110.9M | 40.31M | 70.44M | 38.47M | 21.82M | 18.06M |
| Gross Margin % | 60.65% | 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 | 339.99M | 393.98M | 118.25M | 91.95M | 70.09M | 53.76M | 34.08M | 52.37M | 20.26M | 16.89M | 11.79M |
| OpEx / Revenue % | 34.76% | 44.98% | 21.35% | 24.46% | 21.43% | 21.7% | 20.23% | 46.22% | 27.76% | 28.4% | 27.61% |
| Depreciation & Amortization | 10.28M | 8.87M | 5.11M | 4.5M | 4.12M | 3.54M | 1.34M | 216K | 212K | 160K | 88K |
| Combined Ratio % | 74.12% | 71.07% | 72.7% | 72.43% | 79.35% | 76.94% | 96.31% | 84.04% | 75.04% | 91.71% | 85.3% |
| Operating Income | 253.14M | 253.39M | 151.2M | 103.64M | 67.55M | 57.14M | 6.22M | 18.08M | 18.21M | 4.93M | 6.28M |
| Operating Margin % | 25.88% | 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 | 266.8M | 262.26M | 156.3M | 108.14M | 71.67M | 60.68M | 7.56M | 18.29M | 18.43M | 5.09M | 6.37M |
| EBITDA Margin % | 27.28% | 29.94% | 28.22% | 28.77% | 21.91% | 24.49% | 4.49% | 16.15% | 25.25% | 8.56% | 14.91% |
| Interest Expense | 3.46M | 392K | 1.14M | 3.77M | 873K | 40K | 0 | 1.07M | 2.3M | 1.75M | 1.63M |
| Non-Operating Income | -3.46M | -392K | -1.14M | -3.77M | -873K | -40K | 0 | -1.07M | -2.3M | -1.75M | -1.63M |
| Pretax Income | 253.14M | 253.39M | 151.2M | 103.64M | 67.55M | 57.14M | 6.22M | 18.08M | 18.21M | 4.93M | 6.28M |
| Pretax Margin % | 25.88% | 28.93% | 27.3% | 27.57% | 20.65% | 23.06% | 3.69% | 15.96% | 24.96% | 8.29% | 14.7% |
| Income Tax | 56.04M | 56.32M | 33.62M | 24.44M | 15.38M | 11.29M | -34K | 7.46M | -6K | 1.15M | -337K |
| Effective Tax Rate % | 22.14% | 22.23% | 22.24% | 23.58% | 22.77% | 19.76% | -0.55% | 41.25% | -0.03% | 23.23% | -5.37% |
| Net Income | 197.09M | 197.07M | 117.57M | 79.2M | 52.17M | 45.85M | 6.26M | 10.62M | 18.22M | 3.78M | 6.61M |
| Net Margin % | 20.15% | 22.5% | 21.23% | 21.07% | 15.95% | 18.5% | 3.71% | 9.37% | 24.97% | 6.36% | 15.49% |
| Net Income Growth % | 46.96% | 67.62% | 48.45% | 51.81% | 13.79% | 632.73% | -41.09% | -41.7% | 381.6% | -42.8% | - |
| EPS (Diluted) | 7.21 | 7.17 | 4.48 | 3.13 | 2.02 | 1.76 | 0.24 | 0.49 | 0.81 | 0.17 | 0.29 |
| EPS Growth % | 43.31% | 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 | 27.34M | 27.49M | 26.22M | 25.33M | 25.8M | 26.11M | 25.6M | 21.83M | 22.63M | 22.63M | 22.63M |
Catastrophe reinsurance market volatility
As reported in recent financial statements, Palomar achieved a 59.7% year-over-year revenue growth in 2026Q1, signaling that the company's strategic pivot toward casualty lines and the PLMR-Front platform is successfully capturing market share despite broader industry headwinds in the specialty property sector.
The consistent acceleration in revenue growth suggests that Palomar is effectively leveraging its data-driven underwriting to penetrate underserved niches. Investors should monitor whether this rapid scaling can be sustained without compromising the quality of the underlying risk portfolio as the company moves further into casualty segments.
Based on the provided quarterly data, Palomar maintained a combined ratio of 80.8% in 2026Q1, demonstrating that the company continues to generate significant underwriting profit even as it aggressively expands its footprint in non-traditional insurance lines and fee-based service offerings.
The ability to keep the combined ratio well below the 100% threshold indicates that the company's capital-light model remains highly efficient. This performance suggests that the ceding commissions earned from reinsurance partners are successfully offsetting acquisition costs, though the recent uptick in the loss ratio warrants further investigation into potential claims volatility.
According to the latest income statement figures, Palomar's operating income reached $53.5 million in 2026Q1, reflecting a scalable cost structure that benefits from the increasing contribution of the PLMR-Front platform relative to traditional, capital-intensive underwriting activities.
The company appears to be successfully decoupling its revenue growth from proportional increases in operating expenses, which is a hallmark of its platform-based strategy. This operational leverage suggests that management is effectively managing its broker network and administrative overhead while scaling its specialty insurance volume.
While Palomar's underwriting results appear robust, the company's reliance on third-party reinsurance, as evidenced by the high volume of ceded premiums, creates a structural vulnerability to global reinsurance pricing cycles that could compress margins if capacity tightens unexpectedly.
The company's strategy of transferring tail risk is effective in benign environments but may face pressure if reinsurers increase treaty pricing or reduce coverage limits. Investors should remain cautious regarding the potential for margin contraction if the company is forced to retain more risk on its own balance sheet during a hard market cycle.
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.