The company achieved a significant operational turnaround, expanding gross margins from a negative 14.4% in 2020Q4 to a robust 57.4% by 2026Q1.
| Revenue | 196.38M | 216.98M | 133.95M | 88.33M | 51.7M | 21.34M |
| Revenue Growth % | - | 61.99% | 51.64% | 70.85% | 142.27% | - |
| Medical Costs & Claims | 99.84M | 89.37M | 81.07M | 71.35M | 49.64M | 15.4M |
| Medical Cost Ratio % | 50.84% | 41.19% | 60.53% | 80.78% | 96.01% | 72.17% |
| Gross Profit | 96.55M | 127.61M | 52.87M | 16.98M | 2.06M | 5.94M |
| Gross Margin % | 49.16% | 58.81% | 39.47% | 19.22% | 3.99% | 27.83% |
| Gross Profit Growth % | - | 141.35% | 211.39% | 723.07% | -65.26% | - |
| Operating Expenses | 19.62M | 21.62M | 0 | 0 | 0 | 0 |
| OpEx / Revenue % | 9.99% | 9.96% | 0% | 0% | 0% | 0% |
| Depreciation & Amortization | 2.55M | 2.93M | 2.36M | 2.2M | 1.1M | 676K |
| Combined Ratio % | 60.83% | 51.15% | 60.53% | 80.78% | 96.01% | 72.17% |
| Operating Income | 72.61M | 105.99M | 38.02M | 2.55M | -8.69M | -1.73M |
| Operating Margin % | 36.97% | 48.85% | 28.38% | 2.89% | -16.81% | -8.11% |
| Operating Income Growth % | - | 178.8% | 1388.53% | 129.38% | -402.2% | - |
| EBITDA | 75.16M | 108.92M | 40.38M | 4.76M | -7.59M | -1.05M |
| EBITDA Margin % | 38.27% | 50.2% | 30.14% | 5.38% | -14.68% | -4.94% |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-Operating Income | -5.65M | -4.3M | 0 | 0 | 0 | 0 |
| Pretax Income | 74.49M | 110.29M | 35.24M | 883K | -16.46M | -8.49M |
| Pretax Margin % | 37.93% | 50.83% | 26.31% | 1% | -31.84% | -39.79% |
| Income Tax | 18.82M | 27.54M | 9.17M | -12.02M | -4.04M | -1.58M |
| Effective Tax Rate % | 25.27% | 24.97% | 26.02% | -1361.04% | 24.52% | 18.61% |
| Net Income | 56.4M | 82.75M | 44.1M | 20.77M | -12.42M | -6.91M |
| Net Margin % | 28.72% | 38.14% | 32.93% | 23.52% | -24.03% | -32.39% |
| Net Income Growth % | - | 87.62% | 112.29% | 267.22% | -79.77% | - |
| EPS (Diluted) | 0.62 | 0.87 | 0.37 | 0.13 | -0.14 | -0.08 |
| EPS Growth % | - | 135.14% | 184.62% | 192.86% | -83.97% | - |
| EPS (Basic) | - | 0.87 | 0.37 | 0.13 | -0.14 | -0.08 |
| Diluted Shares Outstanding | 90.91M | 90.91M | 90.78M | 90.78M | 90.78M | 90.78M |
Long-tail reserve volatility
As indicated by the historical quarterly data, XZO has successfully transitioned from a $14.8M revenue base in 2020Q4 to $55.5M by 2026Q1, reflecting a significant acceleration in market penetration that appears to be driven by the firm's specialized catastrophe and casualty insurance product offerings.
The consistent upward trajectory in top-line revenue suggests that XZO's automated underwriting platform is effectively capturing market share in niche segments. This growth appears durable, provided the company maintains its competitive edge in pricing complex risks that traditional carriers often avoid.
According to the reported financial statements, XZO has achieved a dramatic turnaround in gross margins, moving from a negative 14.4% in 2020Q4 to a robust 57.4% in 2026Q1, which highlights the company's improved ability to manage reinsurance costs and select profitable risk.
The expansion in gross margin suggests that the company's proprietary underwriting model is yielding superior risk-adjusted returns compared to its earlier operational phases. Investors should monitor whether this margin profile remains resilient if the broader insurance market shifts from a 'hard' to a 'soft' pricing cycle.
Based on the provided income statement data, XZO has demonstrated significant operating leverage, as evidenced by the shift from a negative 33.2% operating margin in 2020Q4 to a 45.2% margin in 2026Q1, achieved without a corresponding increase in reported SG&A expenses.
The ability to scale operating income while maintaining zero reported SG&A suggests a highly automated, capital-light operational structure. This efficiency implies that the company can continue to grow its premium base without incurring the traditional fixed-cost burdens that typically constrain insurance carriers.
As reported in recent filings, XZO's net income has reached $20.4M in 2026Q1, though the quality of these earnings warrants further investigation given the company's recent expansion into longer-tail casualty lines which may require more conservative reserve provisioning than the historical property-focused portfolio.
While the current net margin of 36.7% appears strong, the transition toward casualty insurance introduces potential volatility in 'Incurred But Not Reported' (IBNR) claims. Analysts should scrutinize whether future reserve development remains favorable or if current profitability is partially inflated by immature loss estimates.
Based on the quarterly figures, the period between 2021Q1 and 2021Q3 represents a critical inflection point where XZO successfully pivoted from consistent operating losses to a positive trajectory, setting the stage for the subsequent multi-year expansion in both revenue and underwriting profitability.
This period appears to mark the successful deployment of the company's automated underwriting platform at scale. The transition from negative margins to profitability suggests that the firm reached a necessary threshold of data maturity and risk-pricing accuracy that has since defined its financial performance.
Quick answers to the most common questions about buying XZO stock.
For fiscal year 2025, Exzeo Group, Inc. (XZO) reported total revenue of $217.0M. This represents a 916.8% increase compared to $21.3M in 2019.
Exzeo Group, Inc. (XZO) is profitable, generating $82.7M in net income for the fiscal year ending 2025 with a net profit margin of 38.1%.
Exzeo Group, Inc. (XZO) reported an operating income of $106.0M, resulting in an operating profit margin of 48.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Exzeo Group, Inc. (XZO) generated $127.6M in gross profit for the year, representing a gross profit margin of 58.8%. This demonstrates the company's core pricing power and production efficiency.