EXZEO GROUP, INC., 10-K filed on 2/26/2026
Annual Report
v3.25.4
Document and Entity Information - USD ($)
 12 Months Ended
Dec. 31, 2025
Feb. 20, 2026
Jun. 30, 2025
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Amendment Flag false    
Document Period End Date Dec. 31, 2025    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Trading Symbol XZO    
Entity Registrant Name Exzeo Group, Inc.    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Central Index Key 0001873951    
Current Fiscal Year End Date --12-31    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Non-accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company true    
Entity Ex Transition Period true    
ICFR Auditor Attestation Flag false    
Entity Shell Company false    
Title of 12(b) Security Common Stock, $0.001 par value    
Security Exchange Name NYSE    
Entity File Number 001-42937    
Entity Incorporation, State or Country Code FL    
Entity Tax Identification Number 85-2578837    
Entity Address, Address Line One 1000 Century Park Drive    
Entity Address, City or Town Tampa    
Entity Address, State or Province FL    
Entity Address, Postal Zip Code 33607    
City Area Code 813    
Local Phone Number 776-1000    
Document Transition Report false    
Entity Common Stock, Shares Outstanding   90,913,540  
Document Financial Statement Error Correction [Flag] false    
Documents Incorporated by Reference [Text Block]

Portions of the Registrant's Proxy Statement relating to the 2026 Annual Meeting of Stockholders are incorporated by reference in Part III of this Annual Report on Form 10-K. This Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the Registrant's fiscal year ended December 31, 2025.

   
Auditor Opinion [Text Block]

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Exzeo Group, Inc. and Subsidiaries (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

    
Entity Public Float     $ 0
Auditor Name Forvis Mazars, LLP    
Auditor Location Charlotte, North Carolina    
Auditor Firm ID 686    
v3.25.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 305,372 $ 54,502
Accounts receivable 2,906 0
Prepaid expense 1,483 609
Current contract cost assets 4,722 6,397
Income taxes receivable 0 3,099
Other current assets 43 42
Total current assets 325,821 67,230
Non-current assets:    
Property and equipment, net 10,662 10,752
Operating lease right-of-use assets 6,884 8,052
Non-current contract cost assets 1,118 3,132
Deferred income taxes, net 2,975 0
Other assets 274 275
Total non-current assets 21,913 22,211
Total assets 347,734 89,441
Current liabilities:    
Current contract liabilities 70,893 47,210
Commissions payable 4,605 4,320
Accounts payable and accrued liabilities 2,950 2,134
Operating lease liabilities 2,413 2,132
Income taxes payable 2,455 0
Total current liabilities 84,389 56,376
Non-current liabilities:    
Non-current contract liabilities 3,567 8,366
Operating lease liabilities 4,832 6,219
Deferred income taxes, net 0 2,121
Other liabilities 790 852
Total non-current liabilities 9,189 17,558
Total liabilities 93,578 73,934
Commitments and contingencies (Note 15)
Stockholders' equity:    
Common stock ($0.001 par value, 184,000,000 shares authorized, 90,926,720 and 82,810,089 shares issued and outstanding as of December 31, 2025 and 2024, respectively) 91 83
Additional paid-in capital 228,647 72,755
Retained earnings (accumulated deficit) 25,418 (57,331)
Total stockholders’ equity 254,156 15,507
Total liabilities and stockholders' equity 347,734 89,441
Related Party    
Current assets:    
Receivable from related parties 11,295 2,581
Current liabilities:    
Payable to related parties $ 1,073 $ 580
v3.25.4
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Common stock, par value per share $ 0.001 $ 0.001
Common stock, shares authorized 184,000,000 184,000,000
Common stock, shares issued 90,926,720 82,810,089
Common stock, outstanding 90,926,720 82,810,089
v3.25.4
Consolidated Statements of Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Statement [Abstract]      
Revenue [1] $ 216,980 $ 133,948 $ 88,333 [2]
Cost of Revenue [3] 85,957 80,739 71,061
Gross profit 131,023 53,209 17,272
Operating expenses      
Selling, general and administrative 15,724 8,343 7,898
Research and development 8,830 6,514 6,528
Depreciation and amortization 479 335 292
Total operating expenses 25,033 15,192 14,718
Operating income 105,990 38,017 2,554
Investment income 4,302 548 52
Interest expense 0 (3,329) (1,723)
Income from continuing operations, before taxes 110,292 35,236 883
Income tax expense (benefit) from continuing operations 27,543 9,168 (12,018)
Net income 82,749 26,068 12,901
Income from discontinued operations, before taxes 0 25,854 11,530
Income tax expense from discontinued operations 0 6,601 2,969
Income from discontinued operations, after tax 0 19,253 8,561
Net income 82,749 45,321 21,462
Less: Dividends on preferred stock 0 (10,149) (9,370)
Income attributable to common stockholders $ 82,749 $ 35,172 $ 12,092
Basic earnings per share from continuing operations $ 0.99 $ 0.2 $ 0.04
Diluted earnings per share from continuing operations 0.99 0.2 0.04
Basic earnings per share from discontinued operations 0 0.24 0.11
Diluted earnings per share from discontinued operations 0 0.24 0.11
Basic earnings per share 0.99 0.44 0.15
Diluted earnings per share $ 0.99 $ 0.44 $ 0.15
[1] Amounts include revenues earned from related parties of $214,611, $133,448 and $88,333 for the years ended December 31, 2025, 2024 and 2023, respectively. Refer to Note 3. Revenue and Note 6. Related Party Transactions for additional information.
[2] The Company waived $15,000 of management fees during 2023 related to its MGA agreement with TTIC, which was a wholly owned subsidiary until July 1, 2024. The waived fees were excluded from Revenue in the Consolidated Statements of Income
[3] Amounts include costs incurred pursuant to related party transactions of $16,288, $21,148 and $14,568 for the years ended December 31, 2025, 2024 and 2023, respectively. Refer to Note 6. Related Party Transactions for additional information.
v3.25.4
Consolidated Statements of Income (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenue [1] $ 216,980 $ 133,948 $ 88,333 [2]
Related Party      
Revenue 214,611 133,448 88,333
Costs and expenses, related party $ 16,288 $ 21,148 $ 14,568
[1] Amounts include revenues earned from related parties of $214,611, $133,448 and $88,333 for the years ended December 31, 2025, 2024 and 2023, respectively. Refer to Note 3. Revenue and Note 6. Related Party Transactions for additional information.
[2] The Company waived $15,000 of management fees during 2023 related to its MGA agreement with TTIC, which was a wholly owned subsidiary until July 1, 2024. The waived fees were excluded from Revenue in the Consolidated Statements of Income
v3.25.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net income $ 82,749 $ 45,321 $ 21,462
Net unrealized gains arising during the period 0 307 2,547
Reclassification adjustment for net realized losses 0 0 10
Net change in unrealized gains 0 307 2,557
Deferred income taxes 0 (77) 603
Other comprehensive income 0 230 3,160
Comprehensive income $ 82,749 $ 45,551 $ 24,622
v3.25.4
Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-In Capital
Retained Earnings (Accumulated Deficit)
Accumulated Other Comprehensive (Loss) Income, Net of Tax
Beginning Balance, amount at Dec. 31, 2022 $ (43,121) $ 81 $ 66,356 $ (104,595) $ (4,963)
Beginning Balance, shares at Dec. 31, 2022   81,111,913      
Net income 21,462     21,462  
Other comprehensive income, net of tax 3,160       3,160
Preferred stock dividends (9,370)     (9,370)  
Forfeiture of restricted stock Value (1) $ (1)      
Forfeiture of restricted stock, shares   (592,545)      
Repurchase and retirement of common stock, value (352)   (352)    
Repurchase and retirement of common stock, shares   (148,863)      
Stock-based compensation 2,927   2,927    
Ending Balance, amount at Dec. 31, 2023 (25,295) $ 80 68,931 (92,503) (1,803)
Ending Balance, shares at Dec. 31, 2023   80,370,505      
Net income 45,321     45,321  
Other comprehensive income, net of tax 230       230
Preferred stock dividends (10,149)     (10,149)  
Sale of discontinued operations, net of tax (884)   (2,457)   $ 1,573
Non-cash capital contribution from parent 3,499   3,499    
Issuance of restricted stock, value   $ 3 (3)    
Issuance of restricted stock, shares   2,793,900      
Forfeiture of restricted stock, shares   (24,983)      
Repurchase and retirement of common stock, value $ (481)   (481)    
Repurchase and retirement of common stock, shares (329,333)        
Stock-based compensation $ 3,266   3,266    
Ending Balance, amount at Dec. 31, 2024 15,507 $ 83 72,755 (57,331)  
Ending Balance, shares at Dec. 31, 2024   82,810,089      
Net income 82,749     82,749  
Issuance of common stock, initial public offering, net of issuance costs, value 154,754 $ 8 154,746    
Issuance of common stock, initial public offering, net of issuance costs, shares   8,000,000      
Other comprehensive income, net of tax 0        
Non-cash capital contribution from parent 34   34    
Issuance of restricted stock, shares   321,020      
Forfeiture of restricted stock, shares   (128,326)      
Repurchase and retirement of common stock, value (1,490)   (1,490)    
Repurchase and retirement of common stock, shares   (76,063)      
Stock-based compensation 2,602   2,602    
Ending Balance, amount at Dec. 31, 2025 $ 254,156 $ 91 $ 228,647 $ 25,418  
Ending Balance, shares at Dec. 31, 2025   90,926,720      
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Operating activities:      
Net income $ 82,749 $ 45,321 $ 21,462
Less: Net income from discontinued operations 0 (19,253) (8,561)
Net income from continuing operations 82,749 26,068 12,901
Adjustments to reconcile net income to cash provided by operating activities:      
Stock-based compensation 2,636 3,379 2,927
Depreciation and amortization 2,934 2,361 2,202
Deferred income taxes (5,096) 1,525 (5,732)
Foreign currency remeasurement losses 173 132 50
Changes in operating assets and liabilities:      
Accounts receivable (2,906) 0 0
Receivable from related parties (8,221) (1,836) (3,048)
Prepaid expenses (874) (157) 68
Contract cost assets 3,689 (3,083) (1,636)
Income taxes payable (receivable) 5,554 4,224 (2,493)
Contract liabilities 18,884 15,496 4,653
Commissions payable 285 407 (807)
Accounts payable and accrued liabilities 434 442 607
Other liabilities (33) 339 157
Other assets (1) (125) 7
Operating lease 91 94 297
Cash provided by operating activities 100,298 49,266 10,153
Investing activities:      
Capital expenditures (2,844) (3,334) (3,247)
Cash used in investing activities (2,844) (3,334) (3,247)
Financing activities:      
Redemption of redeemable preferred stock 0 (100,000) 0
Proceeds from issuance of notes payable, related party 0 100,000 0
Proceeds from initial public offering 156,205 0 0
Payments of issuance costs (1,069) 0 0
Repurchase of common stock (1,490) (481) (352)
Repayment of long-term debt 0 (2,994) (9)
Dividends paid on redeemable preferred stock 0 (2,923) (6,763)
Cash provided by (used in) financing activities 153,646 (6,398) (7,124)
Effect of exchange rate changes on cash (230) (87) (42)
Cash provided by (used in) continuing operations 250,870 39,447 (260)
Cash flows from discontinued operations:      
Cash provided by operating activities from discontinued operations 0 142,645 49,216
Cash used in investing activities from discontinued operations 0 (189,186) (13,350)
Cash (used in) provided by discontinued operations 0 (46,541) 35,866
Increase (decrease) in cash, cash equivalents, and restricted cash 250,870 (7,094) 35,606
Cash, cash equivalents, and restricted cash at beginning of period - continuing operations 54,502 15,055 15,315
Cash, cash equivalents, and restricted cash at beginning of period - discontinued operations 0 46,541 10,675
Cash, cash equivalents, and restricted cash at beginning of period 54,502 61,596 25,990
Cash, cash equivalents, and restricted cash at end of period - continuing operations 305,372 54,502 15,055
Cash, cash equivalents, and restricted cash at end of period - discontinued operations 0 0 46,541
Cash, cash equivalents, and restricted cash at end of period 305,372 54,502 61,596
Non-cash investing and financing activities:      
Extinguishment of notes payable 0 155,000 0
Capital contribution from parent 34 2,615 0
Receivable from maturities of fixed-maturity securities 0 0 50,000
Unrealized gain on investment in available-for-sale securities, net of tax 0 0 3,160
Supplemental disclosure of cash flow information:      
Cash paid for income taxes 34,223 14,261 866
Cash paid for interest $ 0 $ 3,472 $ 1,678
v3.25.4
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Pay vs Performance Disclosure      
Net Income (Loss) $ 82,749 $ 45,321 $ 21,462
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
shares
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement

Rule 10b5-1 Trading Arrangements

During the three months ended December 31, 2025, the following director or officer adopted a Rule 10b5-1 trading arrangement (as defined in Item 408 of Regulation S-K),

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Name

 

Title

 

Action

 

Date Adopted

 

Expiration Date

 

Aggregate # of Securities to be Purchased /Sold

Paresh Patel

 

CEO

 

Adoption

 

12/18/2025

 

12/18/2026

 

Up to 100,000 shares or $2,000,000 aggregate value (whichever occurs first)
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Paresh Patel [Member]  
Trading Arrangements, by Individual  
Name Paresh Patel
Title CEO
Rule 10b5-1 Arrangement Adopted true
Adoption Date 12/18/2025
Expiration Date 12/18/2026
Aggregate Available 100,000
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

Item 1C. Cybersecurity.

We rely on digital technology to conduct our business and interact with customers, policyholders, agents, and vendors. With this reliance on technology comes the associated security risks from the use of communication technology and networks.

Risk Management and Strategy

The goal of our cybersecurity risk management strategy is to maintain confidentiality, integrity, and availability of our critical systems and information. Our processes are designed to identify, assess, and manage material risks from cybersecurity threats as part of our entity-wide risk management efforts. To safeguard our data and the data of our customers, management utilizes a multi-layered cybersecurity approach including the use of an external security operations center that specializes in the detection and containment of cyber-attacks. For protection of endpoint devices connected to our network, we use third-party managed detection and response security software. Perimeter defense technology is used to filter e-mail for malware, viruses, and phishing attempts, and network firewalls are used to monitor incoming and outgoing network traffic.

Tools utilized to prevent cybersecurity threats include multifactor authentication, e-mail security services, mobile e-mail security policies, virtual private networks, third-party security experts, and timely applications of software patches, among others. We conduct annual penetration testing, disaster recovery testing, and internal and external audits of our cybersecurity controls, as well as simulated cyberattack scenarios to evaluate our preparedness. Employees are required to complete mandatory annual cybersecurity training and participate in periodic phishing simulations. We also maintain cyber insurance coverage, which includes access to a cyber incident response team in the event of a cybersecurity incident.

Management of cybersecurity risks also extends to third-party service providers engaged for specialized functions such as payroll processing, financial reporting systems, and equity compensation administration. Oversight of these providers is maintained through a third-party risk management process which includes obtaining and reviewing independent assurance reports, such as SOC 1 and SOC 2 reports, as applicable, to evaluate the design and operating effectiveness of relevant controls. Certain third-party providers are monitored and reviewed through oversight procedures performed by external service providers to assess controls related to data protection, system security, and access management.

We respond to cybersecurity events in accordance with our Cyber Security Incident Response Plan (CSIRP), which follows the guidance of the National Institute of Standards and Technology Cybersecurity Framework and provides for assessment, mitigation, and if necessary, remediation of cybersecurity incidents. We conduct annual breach simulations to test the effectiveness of our CSIRP.

There have been no cybersecurity events that have materially affected or are reasonably likely to materially affect the Company’s business strategy, results of operations, or financial condition. Although we believe our cybersecurity controls are appropriate, cybersecurity threats continue to evolve and could result in adverse business impacts. Refer to Item 1A – Risk Factors - Security and fraud risks for additional information.

Governance

Cybersecurity is a critical component of our overall risk management process. Our Board of Directors oversees our cybersecurity risk management, including oversight of policies, processes and material risks related to cyber security.

Responsibility for the assessment and management of cybersecurity risks resides with senior management, including our Chief Technology Officer, who is responsible for overseeing the Company's information security program, cybersecurity risk assessments, and incident response activities. Our Chief Technology Officer has more than 30 years of experience in information technology, including over 20 years in senior leadership roles within the P&C businesses. Prior to serving as our Chief Technology Officer, he served for more than 10 years as Vice President of Information Technology at HCI, where he was responsible for IT infrastructure security, disaster recovery planning, DevOps implementation, and compliance. His experience includes oversight of operations, network security, and cybersecurity risk management, including the implementation and monitoring of security controls and coordination with third-party security service providers.

Day to day cybersecurity operations are supported by internal information technology personnel with experience in system security, threat monitoring, incident detection, and response, who are responsible for implementing cybersecurity controls, monitoring threats, and coordinating response activities in accordance with our Cyber Security Response Plan.

Our Board receives periodic updates from management regarding cybersecurity risks, controls, and any material cybersecurity incidents. At least one member of the Board has information technology and cybersecurity-related experience, which supports the Board's oversight of cybersecurity risk management.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]

Governance

Cybersecurity is a critical component of our overall risk management process. Our Board of Directors oversees our cybersecurity risk management, including oversight of policies, processes and material risks related to cyber security.

Responsibility for the assessment and management of cybersecurity risks resides with senior management, including our Chief Technology Officer, who is responsible for overseeing the Company's information security program, cybersecurity risk assessments, and incident response activities. Our Chief Technology Officer has more than 30 years of experience in information technology, including over 20 years in senior leadership roles within the P&C businesses. Prior to serving as our Chief Technology Officer, he served for more than 10 years as Vice President of Information Technology at HCI, where he was responsible for IT infrastructure security, disaster recovery planning, DevOps implementation, and compliance. His experience includes oversight of operations, network security, and cybersecurity risk management, including the implementation and monitoring of security controls and coordination with third-party security service providers.

Day to day cybersecurity operations are supported by internal information technology personnel with experience in system security, threat monitoring, incident detection, and response, who are responsible for implementing cybersecurity controls, monitoring threats, and coordinating response activities in accordance with our Cyber Security Response Plan.

Our Board receives periodic updates from management regarding cybersecurity risks, controls, and any material cybersecurity incidents. At least one member of the Board has information technology and cybersecurity-related experience, which supports the Board's oversight of cybersecurity risk management.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]

Responsibility for the assessment and management of cybersecurity risks resides with senior management, including our Chief Technology Officer, who is responsible for overseeing the Company's information security program, cybersecurity risk assessments, and incident response activities. Our Chief Technology Officer has more than 30 years of experience in information technology, including over 20 years in senior leadership roles within the P&C businesses. Prior to serving as our Chief Technology Officer, he served for more than 10 years as Vice President of Information Technology at HCI, where he was responsible for IT infrastructure security, disaster recovery planning, DevOps implementation, and compliance. His experience includes oversight of operations, network security, and cybersecurity risk management, including the implementation and monitoring of security controls and coordination with third-party security service providers.

Day to day cybersecurity operations are supported by internal information technology personnel with experience in system security, threat monitoring, incident detection, and response, who are responsible for implementing cybersecurity controls, monitoring threats, and coordinating response activities in accordance with our Cyber Security Response Plan.
Cybersecurity Risk Role of Management [Text Block]

The goal of our cybersecurity risk management strategy is to maintain confidentiality, integrity, and availability of our critical systems and information. Our processes are designed to identify, assess, and manage material risks from cybersecurity threats as part of our entity-wide risk management efforts. To safeguard our data and the data of our customers, management utilizes a multi-layered cybersecurity approach including the use of an external security operations center that specializes in the detection and containment of cyber-attacks. For protection of endpoint devices connected to our network, we use third-party managed detection and response security software. Perimeter defense technology is used to filter e-mail for malware, viruses, and phishing attempts, and network firewalls are used to monitor incoming and outgoing network traffic.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]

Responsibility for the assessment and management of cybersecurity risks resides with senior management, including our Chief Technology Officer, who is responsible for overseeing the Company's information security program, cybersecurity risk assessments, and incident response activities. Our Chief Technology Officer has more than 30 years of experience in information technology, including over 20 years in senior leadership roles within the P&C businesses. Prior to serving as our Chief Technology Officer, he served for more than 10 years as Vice President of Information Technology at HCI, where he was responsible for IT infrastructure security, disaster recovery planning, DevOps implementation, and compliance. His experience includes oversight of operations, network security, and cybersecurity risk management, including the implementation and monitoring of security controls and coordination with third-party security service providers.

Day to day cybersecurity operations are supported by internal information technology personnel with experience in system security, threat monitoring, incident detection, and response, who are responsible for implementing cybersecurity controls, monitoring threats, and coordinating response activities in accordance with our Cyber Security Response Plan.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our Chief Technology Officer has more than 30 years of experience in information technology, including over 20 years in senior leadership roles within the P&C businesses. Prior to serving as our Chief Technology Officer, he served for more than 10 years as Vice President of Information Technology at HCI, where he was responsible for IT infrastructure security, disaster recovery planning, DevOps implementation, and compliance. His experience includes oversight of operations, network security, and cybersecurity risk management, including the implementation and monitoring of security controls and coordination with third-party security service providers.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] Our Board of Directors oversees our cybersecurity risk management, including oversight of policies, processes and material risks related to cyber security.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Organization and Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Organization and Summary of Significant Accounting Policies

Note 1. Organization and Summary of Significant Accounting Policies

Organization and Business

Exzeo Group, Inc. provides technology-enabled services to insurance companies, including underwriting, policy administration, claims management, and related software solutions. The Company primarily operates through MGA arrangements and technology service agreements. The Company is headquartered in the United States and all revenue generating activities are conducted domestically. The Company also maintains a wholly owned subsidiary in India that provides operational and administrative support services.

On July 1, 2024, the Company completed the sale of TTIC to its parent company, HCI, in a transaction accounted for as a transfer between entities under common control. TTIC’s operations have been classified as discontinued operations for all periods presented and no assets or liabilities of TTIC remained on the Consolidated Balance Sheets following completion of the transaction. Following the sale, the Company continued to provide certain services to TTIC under existing contractual arrangements. Refer to Note 2. Discontinued Operations for additional information.

On November 6, 2025, the Company completed its IPO, pursuant to which shares of its common stock were issued and sold to the public. The Company's common stock is listed for trading on the New York Stock Exchange and net proceeds were used for working capital and other general corporate purposes.

Basis of Presentation

The accompanying Consolidated Financial Statements of the Company have been prepared in accordance with GAAP.

Discontinued Operations

Beginning with the Company's financial statements for the quarter ended September 30, 2024, the Company retrospectively revised its presentation from an unclassified balance sheet to a classified balance sheet and from a single-step income statement to a two-step income statement to enhance comparability following the disposal of TTIC. These presentation changes were applied retrospectively to all periods presented and did not affect previously recorded net income (loss) or stockholders’ equity (deficit).

The sale of TTIC represented a strategic shift that had a major effect on the Company's operating and financial results and is therefore presented as discontinued operations in the Consolidated Statements of Income and Cash Flows for all periods presented. Prior to the sale, TTIC’s assets and liabilities were classified as discontinued operations on the Consolidated Balance Sheets, and following the completion of the sale, no TTIC-related assets or liabilities remained.

Principles of Consolidation

The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosures. These estimates are based on historical experience and various other assumptions believed to be reasonable under the circumstances. Actual results could differ materially from those estimates. Significant estimates include revenue, income taxes, stock-based compensation, the fair value measurement related to the TTIC sale, and modifications of HCI warrants.

Cash, Cash Equivalents and Restricted Cash

The Company considers all highly liquid investments with original maturities of three months or less to be cash and cash equivalents. Restricted cash consists of funds used to satisfy regulatory requirements related to discontinued operations and is not available for general corporate use.

Accounts Receivable and Credit Losses

Accounts receivable are recorded when the Company’s right to consideration becomes unconditional. The allowance for credit losses represents management’s estimate of expected losses on financial assets measured at amortized cost and is recorded as a reduction of receivables to the net amount expected to be collected. Changes in the allowance are recognized as credit loss expense within Selling, general and administrative expense in the Consolidated Statements of Income. When amounts are deemed uncollectible, they are written off against the allowance.

The Company applies the current expected credit loss model and considers historical loss experience, current conditions, and reasonable and supportable forecasts. Receivables are evaluated on a collective or individual basis, including consideration of related party relationships, as appropriate.

As of December 31, 2025 and 2024, the Company had no allowance for credit losses.

Contract Cost Assets

Contract cost assets represent costs incurred to fulfill a contract with a customer after contract inception but before services are transferred to the customer. These costs are capitalized when they are directly related to a specific contract, generate or enhance resources used to satisfy performance obligations, and are expected to be recoverable. Capitalized contract cost assets are amortized on a systematic basis consistent with the transfer of the related services to the customer.

Contract cost assets are reviewed periodically and whenever events or changes indicate potential impairment. If the carrying amount exceeds the remaining consideration expected to be received, net of directly related costs, an impairment loss is recognized in the Consolidated Statements of Income.

Property and Equipment, Net

Property and equipment are recorded at cost, net of accumulated depreciation. The Company capitalizes expenditures that exceed established capitalization thresholds and are expected to provide economic benefit for more than one year. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets. Routine maintenance and repair costs are expensed as incurred, while expenditures that extend the useful lives or enhance the functionality of the assets are capitalized. Purchases of property and equipment are included in Capital expenditures in the Consolidated Statements of Cash Flows.

Costs incurred during the application development stage of internal-use-software are capitalized and amortized over the estimated useful life of the software. Costs incurred during the preliminary project stage and post-implementation stage are expensed as incurred. Depreciation of software used in providing services to customers is included in cost of revenue, while depreciation of internally used assets is included in Research and development and Depreciation and amortization expense. Capitalized software development costs are included in Capital expenditures in the Consolidated Statements of Cash Flows.

Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

Estimated Useful Lives of Property and Equipment:

 

Asset Category

 

Estimated Useful Life

Computer hardware and purchased software

 

3 years

Internally developed software

 

7 years

Office furniture and equipment

 

3 - 7 years

Leasehold improvements

 

Shorter of lease term or useful life

 

Impairment of Long-Lived Assets

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability is assessed at the asset group level by comparing the carrying amount to the sum of undiscounted future cash flows expected to result from the use and eventual disposition of the asset group. If the carrying amount exceeds the undiscounted cash flows, the asset group is written down to its fair value, and an impairment loss is recognized in the Consolidated Statements of Income. No impairment charges were recorded for any period presented.

Leases

The Company leases office equipment and office space from affiliates and non-affiliates under terms ranging from three years up to ten years. In assessing whether a contract is or contains a lease, the Company first determines whether there is an identified asset in the contract. The Company then determines whether the contract conveys the right to obtain substantially all of the economic benefits from use of the identified asset or the right to direct the use of the identified asset. The Company elects not to record any lease with a term of 12 months or less on the Consolidated

Balance Sheets. For such short-term leases, the Company recognizes the lease payments in expense on a straight-line basis over the lease term.

If the contract is or contains a lease and the Company has the right to control the use of the identified asset, the ROU asset and the lease liability are measured from the lease component of the contract and recognized on the Consolidated Balance Sheets. In measuring the lease liability, the Company uses its incremental borrowing rate for a loan secured by a similar asset that has a term similar to the lease term to discount the lease payments. The contract is further evaluated to determine the classification of the lease as to whether it is finance or operating. If the lease is a finance lease, the ROU asset is depreciated to depreciation expense over the shorter of the useful life of the asset or the lease term. Interest expense is recorded in connection with the lease liability using the effective interest method. If the lease is an operating lease, the ROU asset is amortized to lease expense on a straight-line basis over the lease term. Refer to Note 8. Leases for additional information.

Contract Liabilities

Contract liabilities are recorded on the Consolidated Balance Sheets when consideration is received, or when the Company has an unconditional right to consideration, prior to transferring the services to the customer. These amounts represent the Company’s obligation to provide services in the future. Revenue is recognized and contract liabilities are reduced as the related performance obligations are satisfied. Contract liabilities expected to be recognized within 12 months are classified as current, and amounts expected to be recognized thereafter are classified as non-current.

Commissions Payable

Commissions payable represents the Company’s obligation to remit commissions earned on direct written premiums for policies written by carriers for which the Company collects fees inclusive of agent commissions and subsequently remits commissions to agents. Commission rates are contractually defined percentages of premiums and vary based on factors such as geographic region, risk classification, and whether the policy is new or a renewal. Commissions payable liability is estimated by applying contractual commission rates to directly written premiums and is updated at each reporting date based on actual premium activity.

Commissions payable is recorded as a current liability in the Consolidated Balance Sheets and is recognized as Cost of revenue in the Consolidated Statements of Income. These liabilities are generally settled within one year.

Redeemable Series A Preferred Stock

The Company classified its Redeemable Series A Preferred Stock as temporary equity (mezzanine) on the Consolidated Balance Sheets as the instrument contained redemption features that were not solely within the Company’s control.

At issuance, the Series A Preferred Stock was recorded at fair value, net of issuance costs, applying a residual fair value method. Subsequent to issuance, the carrying amount was adjusted each reporting period for (i) accrued dividends, (ii) dividend payments, and (iii) accretion required to reflect the increasing contractual dividend rate over the life of the instrument. Accretion was recognized using the effective interest rate method and recorded as a reduction to retained earnings or accumulated deficit.

Dividends were contractually payable in cash or in kind and were accrued monthly based on the assumption of cash settlement. In periods when redemption became probable or determinable, the carrying amount was adjusted to the greater of (i) the contractual redemption amount or (ii) fair value at the reporting date. Such adjustments were treated as deemed dividends when calculating net income attributable to common stockholders. Refer to Note 10. Redeemable Series A Preferred Stock for additional information.

Fair Value Measurements

The Company applies fair value measurements in accordance with a hierarchical framework that prioritizes the inputs used in valuation techniques. The three levels of the fair value hierarchy are defined as follows:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2: Observable inputs other than Level 1 prices, including similar quoted prices for similar assets or liabilities.

Level 3: Unobservable inputs reflecting the Company’s assumptions that market participants would use in pricing the asset or liability.

The Company's financial assets measured at fair value on a recurring basis consist solely of cash and cash equivalents, primarily money market funds, which are classified as Level 1 due to the use of quoted prices in active markets. The carrying amounts of cash and cash equivalents approximate fair value due to their short maturities and high liquidity.

As of December 31, 2025 and December 31, 2024, the Company did not have any assets or liabilities measured at fair value on a non-recurring basis.

The Company had no outstanding debt or notes payable as of December 31, 2025 or 2024. Accordingly, no fair value disclosures related to such instruments are required for the periods presented.

Foreign Currency

The functional currency of the Company’s Indian subsidiary is the U.S. dollar. Monetary assets and liabilities are remeasured using period-end exchange rates, while non-monetary items are remeasured using historical exchange rates. Expenses are remeasured at exchange rates prevailing at the time incurred. Resulting foreign currency gains and losses are included in Selling, general and administrative expense in the Consolidated Statements of Income.

Revenue

Revenue is recognized when control of promised services is transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled. The Company applies the five-step model to identify performance obligations, determine the transaction price, allocate the transaction price to performance obligations, and recognize revenue when, or as, performance obligations are satisfied.

The Company's contracts may include variable consideration, such as fees based on written premiums, policy counts or claims activity. Variable consideration is estimated using the expected value method and included in the transaction price only to the extent that it is probable that a significant reversal of cumulative revenue recognized will not occur. Revenue is recognized either at a point in time or over time, depending on the nature of services provided and the transfer of control to the customer. Refer to Note 3. Revenue for additional information.

Cost of Revenue

Cost of revenue consists of expenses directly attributable to the delivery of revenue generating services including personnel related costs for employees engaged in underwriting, management, administrative, and claim services; commissions remitted to agents; amortization of software intangible assets used in service delivery; and allocated overhead from supporting departments.

Information technology services supporting policy underwriting, administrative functions, and claims handling are also included in Cost of revenue in the Consolidated Statements of Income.

Claim handling costs include expenses incurred throughout the claims process, including adjustment, investigation, defense, recording, and settlement activities, as well as allocated expenses from departments supporting these functions.

Research and Development

Research and development costs consist primarily of personnel expenses, including salaries and benefits, bonuses, stock-based compensation and related overhead costs for employees engaged in the design and development of the Company’s offerings and other internally used systems and applications. Research and development costs are expensed as incurred.

Stock-Based Compensation

The Company accounts for stock-based compensation based on the grant-date fair value of the awards, recognizing expense over the requisite service period generally three to six years. For awards with service-based vesting conditions, compensation expense is recognized on a straight-line basis over the required service period. Restricted stock awards with market-based vesting conditions are recognized over the derived service period and expense recognition may be accelerated if the market condition is satisfied earlier than anticipated. The Company recognizes forfeitures as they occur and does not estimate forfeiture rates at grant date. Previously recognized compensation cost is reversed in the period an award is forfeited.

The Company issues stock options primarily to executives and key employees. Prior to the Company's IPO, stock options were measured at fair value on the grant date using a Monte Carlo simulation model, as the fair value of the Company’s common stock was determined with the assistance of a third-party valuation specialist and the use of observable market inputs was limited. Following the IPO, the grant-date fair value of stock options is estimated using the Black-Scholes option pricing model. Stock option expense is recognized over the requisite service period, generally four years, using the straight-line method for awards expected to vest.

The Company’s outstanding stock-based awards consist of stock options and restricted stock awards with service-based or market-based vesting conditions. Stock-based compensation expense is recorded within Cost of revenue, Research and development, and Selling, general and administrative expenses, based on the functional classification of the related employee or service provider. Forfeitures are recorded when they occur. Tax benefits or tax shortfalls related to stock-based awards are recognized in the Consolidated Statements of Income in the period the awards vest or are exercised.

For awards granted to employees of foreign subsidiaries, the Company has recharge arrangements under which the foreign subsidiary reimburses the Company for the related stock-based compensation costs.

Effective December 24, 2024, certain employees of HCI and its subsidiaries transferred to the Company. Stock-based compensation expense related to both vested and unvested restricted stock awards originally granted by HCI is recognized by the Company. Refer to Note 12. Stock-Based Compensation for additional information.

Offering Costs

In connection with the Company’s IPO completed on November 6, 2025, the Company incurred underwriting discounts and commissions, legal, accounting and advisory fees, along with other third-party costs directly attributable to the issuance of common stock. Incremental costs directly attributable to the equity issuance were recorded as a reduction of the related gross proceeds within additional paid-in capital. Such costs included underwriting discounts and commissions, as well as other qualifying offering costs such as legal, accounting, regulatory, filing and listing fees directly associated with the IPO.

Offering costs that were not directly attributable to the equity issuance, or that would have been incurred regardless of whether the IPO was completed, were expensed as incurred within Selling, general and administrative expenses in the Consolidated Statements of Income. These included recurring audit and review fees, internal compensation, and public company readiness activities.

Underwriting discounts and commissions totaled approximately $11,760 and were recorded as a reduction of IPO gross proceeds. Other qualifying costs totaled approximately $1,486 and were recorded as a reduction of the IPO gross proceeds within additional paid-in capital. As of December 31, 2025, qualifying offering costs included $382 of unpaid amounts, which are recorded in Accounts payable and accrued liabilities on the Consolidated Balance Sheets. Cash payments for qualifying offering costs that reduced equity are reflected within financing activities in the Consolidated Statements of Cash Flows.

Basic and Diluted Earnings Per Common Share

The two-class method is applied when computing basic earnings per share for periods in which participating securities, including unvested restricted stock awards with nonforfeitable dividend rights, are outstanding.

Income available to common stockholders is adjusted for dividends and deemed dividends on redeemable preferred stock, as well as for income attributable to participating securities.

Diluted earnings per share includes the effect of potentially dilutive common shares outstanding during the period, unless the effect would be antidilutive. Refer to Note 11. Earnings Per Share for additional information.

Income Taxes

Deferred income taxes are recognized for the future tax consequences of temporary differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the periods in which the temporary differences are expected to be reversed.

The Company is included in the consolidated federal and state income tax returns of its parent company, HCI, and records tax expense or benefit as if it filed separate income tax returns under a written tax allocation agreement. Deferred tax assets are evaluated for realizability each reporting period and a valuation allowance is recorded when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Income taxes related to discontinued operations are reported separately from continuing operations, when applicable. The Company recognizes interest and penalties related to uncertain tax positions, if any, as income tax expense. As of the Consolidated Balance Sheets date, the Company had no unrecognized tax benefits. Refer to Note 9. Income Taxes for additional information.

Related Party Transactions

The Company enters into transactions with related parties in the ordinary course of business, including entities under common ownership or control. Related party transactions may include revenue arrangements, expense reimbursements, cost allocation agreements, lease arrangements, financing transactions, and non-cash capital contributions. These transactions are recorded based on their contractual terms, or established allocation

methodologies and are evaluated for appropriate financial statement presentation and disclosure. Refer to Note 6. Related Party Transactions for additional information.

Recent Accounting Pronouncements

Accounting Standards Adopted in the Current Year

In December 2023, the FASB issued ASU No. 2023-09 - Income Taxes (Topic 740): Improvements to Income Tax Disclosures, to enhance the transparency of income tax disclosures. This update requires expanded disclosure of the income tax rate reconciliation and additional information about income taxes paid. This standard is effective for fiscal years starting after December 15, 2024, with early adoption permitted. The Company adopted the amendments on a prospective basis effective January 1, 2025, resulting in enhanced income tax disclosures beginning with the Consolidated Financial Statements for the year ended December 31, 2025.

Accounting Standards Issued but Not Yet Adopted

In September 2025, the FASB issued ASU No. 2025-06 Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This update enhances guidance on the capitalization of software development costs by eliminating project phase-based criteria and clarifying the conditions signifying significant development uncertainty used by entities to evaluate when the probable-to-complete recognition threshold is met. This standard is effective for all entities for fiscal years and interim periods beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating the potential impact of these updates on its Consolidated Financial Statements.

 

In July 2025, the FASB issued ASU No. 2025-05 - Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This update simplifies the estimation of current expected credit losses on current accounts receivable and current contract assets related to revenue from contracts with customers by allowing all entities to assume that current conditions as of the balance sheet date will not change for the remaining life of the current accounts receivable and current contract assets. This standard is effective for all entities for fiscal years and interim periods beginning after December 15, 2025. Early adoption is permitted. The Company is evaluating the potential impact of these updates and does not expect adoption to have a material impact on its Consolidated Financial Statements.

 

In March 2025, the FASB issued ASU No. 2025-01 Codification Amendments in Response to the SEC's Adoption of Rules Related to the Disaggregation of Income Statement Expenses, which clarifies transition provisions but does not change the underlying disclosure requirements. ASU 2024-03 and ASU 2025-01 are effective for annual reporting periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating the potential impact of these updates on its disclosures.

 

In November 2024, the FASB issued ASU No. 2024-03 - Income Statement–Reporting Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40), which enhances disclosure requirements for public entities by requiring the disaggregation of certain expense captions presented within the income statement, including employee compensation and intangible asset amortization. This ASU also requires entities to reconcile each affected income statement caption to the aggregate amount of the separately disclosed expense categories with any remaining difference described qualitatively as "other items."
v3.25.4
Discontinued Operations
 12 Months Ended
Dec. 31, 2025
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations

Note 2. Discontinued Operations

Sale of TTIC

On July 1, 2024, the Company entered into a Purchase Agreement with HCI. Pursuant to the Purchase Agreement, the Company transferred to HCI all 2,500,000 issued and outstanding shares of TTIC's $1.00 par value common stock. In exchange, HCI agreed to treat two promissory notes previously issued by the Company, with an aggregate principal balance of $117,994, as fully repaid. HCI also agreed to treat $37,006 of the Company's $40,000 2.0% promissory note due June 1, 2025 as repaid. The remaining principal balance on that note was reduced from $40,000 to $2,994 and subsequently fully repaid in November 2024. The aggregate principal amount of indebtedness extinguished pursuant to the Purchase Agreement was $155,000.

Because the transaction occurred between entities under common control and did not result in a change in control of TTIC, it was accounted for as a common control transaction and recognized as an equity transaction. In connection with the completion of the sale, the Company recognized an $884 decrease in stockholders' equity, representing the difference between the consideration received of $155,000 and the $155,884 carrying value of TTIC's net assets as of the sale date.

The major classes of TTIC's assets and liabilities transferred are as follows:

 

 

 

July 1, 2024

 

Assets:

 

 

 

Cash and cash equivalents

 

$

58,774

 

Premiums receivable, net

 

 

18,835

 

Reinsurance recoverable, net

 

 

112,242

 

Deferred policy acquisition costs

 

 

23,133

 

Prepaid reinsurance premiums

 

 

17,899

 

Investments

 

 

333,364

 

Other assets

 

 

37,736

 

Total assets

 

$

601,983

 

Liabilities:

 

 

 

Losses and loss adjustment expenses

 

$

231,057

 

Unearned premiums

 

 

212,377

 

Other liabilities

 

 

2,665

 

Total liabilities

 

$

446,099

 

 

Stock-Based Compensation

The sale of TTIC to HCI triggered a "change of control" clause within Exzeo's 2021 Omnibus Plan. As a result, all outstanding nonvested stock-based compensation issued pursuant to the 2021 Omnibus Plan immediately vested, except for awards held by the Company's CEO, who had previously executed an agreement modifying the terms of those awards such that they would not immediately vest upon a change-of-control transaction between affiliates.

The total expense recognized from the accelerated vesting of these awards was $1,087, representing the immediate recognition of previously unrecognized compensation cost related to service-condition shares, market-condition shares, and stock options that vested upon the change of control. The $1,087 in stock-based compensation expense was recorded within Cost of revenue, Selling, general and administrative and Research and development expenses in the Consolidated Statements of Income for the year ended December 31, 2024. The CEO's modified awards continue to vest according to their original terms through the date of the Company's initial public offering, at which time the remaining unvested awards became fully vested. Refer to Note 12. Stock-Based Compensation for additional information.

Strategic Shift and Discontinued Operations Classification

The sale of TTIC constituted a disposal of a significant component of the Company that resulted in a strategic shift in the Company's business and had a major effect on the Company's operations and financial results. The results of TTIC are reflected in the Company's Consolidated Financial Statements as Discontinued operations and, therefore, are presented as assets and liabilities of discontinued operations on the Consolidated Balance Sheets and Income from discontinued operations on the Consolidated Statements of Income.

The purpose of this transaction was to restructure Exzeo, allowing it to focus on expanding its technology and insurance solutions services while also reducing Exzeo's debt and improving its capital structure.

Continuing Involvement with TTIC

Managing General Agent Agreements

On January 4, 2016, EIS, our wholly owned subsidiary, entered into an MGA agreement to provide underwriting services, insurance policy administrative services and claims administration services to TTIC. The MGA agreement had an initial term of three years, through January 4, 2019, with automatic renewals for one-year periods thereafter. The MGA agreement was renewed on January 4, 2025, and the Company expects the MGA agreement to automatically renew for the foreseeable future.

For the years ended December 31, 2025, 2024 and 2023, the Company recognized revenues from the MGA agreement of $137,207, $121,633 and $82,924, respectively. Subsequent to the sale, cash inflows under the MGA agreement were $78,852 for the six months ended December 31, 2024 and $125,216 for the year ended December 31, 2025.

The amounts recognized under the MGA agreement prior to the sale of TTIC on July 1, 2024 were intercompany transactions. These intercompany transactions are presented gross as revenues from continuing operations and as expenses incurred by discontinued operations for all periods presented to reflect their planned continuance subsequent to the sale. All such amounts were eliminated in consolidation and had no impact on consolidated net income or stockholders' equity. Refer to Note 3. Revenue and Note 6. Related Party Transactions for additional information.

Cost Allocation Agreement

Prior to July 1, 2025, the Company provided corporate services such as human resources, accounting, and legal support to TTIC under a corporate cost allocation agreement, by and among Exzeo and its affiliate which was initially effective June 1, 2021, and amended on July 1, 2025 to remove TTIC. Following the amendment, the Company no longer provides corporate services to TTIC. The Company was reimbursed for any services provided under the agreement on a cost-reimbursement basis.

Expenses allocated under this agreement for the years ended December 31, 2025, 2024 and 2023 were $1,746, $2,500 and $3,472, respectively. Subsequent to the sale, cash inflows from the cost allocation agreement were $716 for the six months ended December 31, 2024 and $1,979 for the year ended December 31, 2025.

Financial Information of Discontinued Operations

The major classes of line items constituting income from discontinued operations are as follows:

 

 

 

December 31,

 

 

 

2024

 

 

2023

 

Gross premium earned

 

$

210,803

 

 

$

348,310

 

Premiums ceded

 

 

(58,943

)

 

 

(122,501

)

Investment and other income

 

 

9,542

 

 

 

13,812

 

Loss and loss adjustments expense

 

 

(87,219

)

 

 

(153,876

)

Policy acquisition costs

 

 

(45,356

)

 

 

(71,316

)

Other operating expenses

 

 

(2,973

)

 

 

(2,899

)

Income from discontinued operations, before tax

 

$

25,854

 

 

$

11,530

 

Income tax expense from discontinued operations

 

 

6,601

 

 

 

2,969

 

Income from discontinued operations, after tax

 

$

19,253

 

 

$

8,561

 
v3.25.4
Revenue
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue

Note 3. Revenue

The Company generates revenue from three primary sources: underwriting and management services, claim services, and other technology services. Revenue disaggregated by service type is as follows:

 

 

 

December 31,

 

 

2025

 

 

2024

 

 

2023 (1)

 

Underwriting and management services

 

$

176,368

 

 

$

95,373

 

 

$

61,410

 

Claim services

 

 

31,154

 

 

 

30,777

 

 

 

19,911

 

Other technology services

 

 

9,458

 

 

 

7,798

 

 

 

7,012

 

Total revenue

 

$

216,980

 

 

$

133,948

 

 

$

88,333

 

 

(1)
The Company waived $15,000 of management fees during 2023 related to its MGA agreement with TTIC, which was a wholly owned subsidiary until July 1, 2024. The waived fees were excluded from Revenue in the Consolidated Statements of Income.

Revenue disaggregated by the timing of recognition is as follows:

 

 

 

December 31,

 

 

2025

 

 

2024

 

 

2023

 

Point in time

 

$

94,645

 

 

$

63,373

 

 

$

35,933

 

Over time

 

 

122,335

 

 

 

70,575

 

 

 

52,400

 

Total revenue

 

$

216,980

 

 

$

133,948

 

 

$

88,333

 

 

The Company primarily derives revenue through insurance solutions services provided to various customers. The Company provides services to certain of its affiliates under separate MGA, policy administration agreements, and technology agreements. Refer to Note 6. Related Party Transactions for additional information.

Underwriting and Management Services

The Company provides policy issuance and renewal services that result in executed insurance policies. In addition, the Company provides management services, including soliciting and negotiating reinsurance for authorized programs and managing and maintaining a policy administration system. The Company also provides administrative services, including maintaining policy records, and printing policy-related documents.

The Company has identified three performance obligations within its underwriting and management services: 1) policy issuance and renewal, 2) management services, and 3) sub-broker services.

The transaction price allocated to the policy issuance and renewal performance obligation is determined based on the estimated standalone selling price of the service. This price is calculated as a proportion of direct written premiums, assumed written premiums, or both, plus related policy fees, and varies based on the specific terms of each agreement. The estimated standalone selling price was determined using the expected cost plus a margin approach. The transaction price is comprised of variable consideration because the Company is obligated to return a portion of the consideration if an underlying policy is canceled subsequent to issuance or renewal. Accordingly, the Company applies an estimate of constraint against the transaction price related to possible underlying policy cancellations in the future using the expected value method. Revenue related to the policy issuance and renewal performance obligation is recognized at the point in time when a policy is issued or renewed, as this marks the point at which the customers receive the economic benefits of the policy issuance or renewal, with the related services being substantially complete.

The transaction price allocated to the management services performance obligation is determined based on the estimated standalone selling price of the services. This price is calculated as a proportion of direct written premiums, assumed written premiums, or both, and varies based on the specific terms of each agreement. The estimated standalone selling price was determined using the expected cost plus a margin approach. Revenue for management services is deferred and recognized ratably over time as the services are provided.

Revenue from sub-broker services is recognized at a point in time when the Company fulfills its performance obligation by completing the services for the customer and is included within underwriting and management services. Due to the nature of the services, there are no significant financing components or variable consideration. The Company recognized revenue from sub-broker services of $1,750 and $500, reflecting the fixed fee for services rendered during the year for the years ended December 31, 2025, and 2024, respectively. As of December 31, 2025, the Company had a receivable balance of $875 related to this service recorded within Accounts receivable in the Consolidated Balance Sheets. No such receivable was outstanding as of December 31, 2024.

Claim Services

The Company provides services for all reported and assigned claims on behalf of its customers, for which the Company will investigate, evaluate, handle, adjust, and settle each claim. While a variety of activities are performed, the overall nature of the obligation is to provide services for all reported and assigned claims, including catastrophe claims. The Company also provides "Catastrophe Services" in the form of claim services to handle and adjust the increased and extraordinary volume of claims attributable to a catastrophe.

The Company has identified two performance obligations within claim services: 1) claim services and 2) catastrophe services.

The transaction price allocated to the claim services performance obligation is determined based on the estimated standalone selling price of the services. This price is calculated as a proportion of direct and assumed written premiums and varies based on the specific terms of each agreement. The estimated standalone selling price is determined using the estimated cost plus a margin approach. Revenue related to claim services is recognized ratably over the policy term, typically over a twelve month period. This method reflects the continuous transfer of services to the customer and aligns revenue recognition with the ongoing delivery of claims handling services.

The transaction price allocated to the catastrophe services performance obligation is determined based on the estimated standalone selling price, which includes per-claim fees and a percentage of indemnification costs and varies by agreement. The transaction price involves variable consideration because the Company must estimate both the ultimate number of claims and the total indemnification expected to be paid. Accordingly, the Company applies an estimate of constraint against the transaction price related to possible overestimation of the transaction price using the expected value method. Revenue for this performance obligation is recognized over time using an output method that measures progress by comparing total claims paid to date against the total expected claims to be paid.

Other Technology Services

The Company's other technology services revenue is derived primarily from fees for providing various proprietary software, which includes functionality for policy administration, billing, reporting and compliance, and claims handling, to the customer through software service agreements.

The Company has identified two performance obligations related to software services: 1) policy administration software services and 2) catastrophe claims software services.

The transaction price of the policy administration software services performance obligation is based on the volume of policies or claims processed by the customer using the Company's software at the end of each quarter or a fixed fee. The overall nature of the obligation is to provide the customer access to the software through ongoing administration and software services. Each of these arrangements represents a stand-ready obligation to perform these activities on an as-needed basis. As the Company has a right to invoice the customer at an amount that corresponds directly with the value delivered, the Company applies the as-invoiced practical expedient to recognize revenue.

The transaction price of the catastrophe claims software service performance obligation is calculated as a percentage of the amount incurred for each catastrophe claim handled. The nature of the performance obligation is that the Company will provide the service of allowing the customer access to its software systems. This catastrophe claims software services revenue is recognized over time as the performance obligation is satisfied, generally ratably over the period of four to five years.

Remaining Performance Obligations

As of December 31, 2025 and 2024, the aggregate transaction price allocated to remaining performance obligations that are unsatisfied or partially unsatisfied was $74,460 and $55,576, respectively, of which $70,893 and $47,210, respectively, are expected to be recognized within the following 12 months, and $3,567 and $8,366, respectively, are expected to be recognized beyond the next 12 months.

Contract Balances

The Company receives payments from customers based on billing terms established in contractual agreements. Accounts receivable are recognized when the right to consideration becomes unconditional and only the passage of time is required before payment of consideration is due. The timing of revenue recognition may differ from the timing of invoicing. Receivables related to these services are classified within Receivable from related parties and Accounts receivable on the Consolidated Balance Sheets. These receivables are typically collected within 15 to 30 days after month-end or invoice date, and substantially all cash collections are completed within one year, consistent with the annual term of insurance policies. As of December 31, 2025 and 2024, the Company reported $13,326 and $2,025, respectively, in Accounts receivable and Receivable from related parties related to these contracts in the Consolidated Balance Sheets.

The portion of revenue not yet earned is recorded as a Contract liability in the Consolidated Balance Sheets. Contract liabilities are recorded when the Company has received consideration or has an unconditional right to payment but has not yet transferred the related services. This represents the portion of revenue that will be recognized over the term of the respective agreements. The over time performance obligations fall in this category given the Company recognizes revenue over the non-cancellable term of the underlying contracts.

Changes in contract liabilities during the periods presented are as follows:

 

 

 

As of December 31,

 

 

2025

 

 

2024

 

Beginning balance

 

$

55,576

 

 

$

40,080

 

Additions (billings, considerations received)

 

 

139,361

 

 

 

78,477

 

Revenue recognized related to beginning balance

 

 

(43,308

)

 

 

(29,796

)

Revenue recognized related to current period additions

 

 

(77,169

)

 

 

(33,185

)

Ending balance

 

$

74,460

 

 

$

55,576

 

 

The changes in the contract liability balance during the years ended December 31, 2025 and 2024 were a result of normal business activity and were not materially impacted by any unusual or nonrecurring items. Contract liabilities are reflected in Current liabilities for those to be recognized in less than 12 months and in Non-current liabilities for those to be recognized more than 12 months from the date presented in the Company's Consolidated Balance Sheets.

Contract cost assets primarily consist of incremental costs to fulfill customer contracts that are expected to be recovered. Changes in the contract cost asset balance occur in the ordinary course of business. Contract cost assets are reflected in Current assets when expected to be recognized in less than 12 months and in Non-current assets when expected to be recognized in more than 12 months from the date presented in the Company's Consolidated Balance Sheets.

Changes in contract cost assets during the periods presented are as follows:

 

 

 

As of December 31,

 

 

2025

 

 

2024

 

Beginning balance

 

$

9,529

 

 

$

6,446

 

Additions

 

 

3,910

 

 

 

11,199

 

Cost recognized

 

 

(7,599

)

 

 

(8,116

)

Ending balance

 

$

5,840

 

 

$

9,529

 
v3.25.4
Comprehensive Income
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Comprehensive Income

Note 4. Comprehensive Income

Comprehensive income consists of net income and other comprehensive income, which reflects changes in unrealized gains and losses on available-for-sale fixed-maturity securities carried at fair value, net of income taxes. Reclassification adjustments for realized gains and losses recognized on sales of available-for-sale fixed-maturity securities are reflected in Income from discontinued operations, before tax, in the Consolidated Statements of Income for periods presented.

There was no other comprehensive income activity during the year ended December 31, 2025, reflecting the completion of the TTIC disposition in 2024. Refer to Note 2. Discontinued Operations for additional information. The components of other comprehensive income related to discontinued operations were as follows:

 

 

December 31,

 

 

2024

 

 

2023

 

Unrealized gain (losses) on fixed maturity securities

 

 

 

 

 

 

Balance at the beginning of the period

 

$

(1,803

)

 

$

(4,963

)

Unrealized gains on investments

 

 

307

 

 

 

2,547

 

Deferred income taxes

 

 

(77

)

 

 

601

 

Gains reclassified into net income

 

 

 

 

 

 

Reclassification adjustment for net realized losses

 

 

—

 

 

 

10

 

Tax effect on reclassification

 

 

—

 

 

 

2

 

Other comprehensive income

 

$

230

 

 

$

3,160

 

Balance at the end of the period, prior to disposition of TTIC

 

$

(1,573

)

 

$

(1,803

)

Completion of TTIC disposition (1)

 

 

1,573

 

 

 

—

 

Balance at the end of the period, post to disposition of TTIC

 

$

-

 

 

$

(1,803

)
(1)
This amount relates to the disposal of TTIC. Refer to Note 2. Discontinued Operations for additional information.
v3.25.4
Concentrations of Risk
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Concentrations of Risk

Note 5. Concentrations of Risk

The Company is exposed to certain concentrations of risk that could reasonably be expected to have a material impact on its business, financial condition, and results of operations, including customer concentration risk, related party concentration risk, and cash concentration risk.

Customer Concentration

A customer is considered significant if it represents 10% or more of total revenue or total accounts receivable for the applicable period.

For the year ended December 31, 2025, the Company had two customers that individually represented more than 10% of total revenue, collectively accounting for approximately 93.5% of total revenue. As of December 31, 2025, accounts receivable from customers individually representing more than 10% of total receivables totaled approximately $10,665 and are recorded within Receivable from related parties on the Consolidated Balance Sheets.

For the years ended December 31, 2024 and 2023, the Company had one customer that individually represented more than 10% of total revenue, accounting for approximately 91.0% and 92.1% of total revenue, respectively. As of December 31, 2024 and 2023, accounts receivable from the customer individually representing more than 10% of total receivables totaled approximately $543 and $1,025, respectively.

Related Party Concentration

A significant portion of the Company’s revenue is generated from customers affiliated with its controlling stockholder, HCI. Accordingly, the Company is exposed to concentration risk related to these related party customers. A reduction in, or loss of, revenue from these customers could have a material adverse effect on the Company’s results of operations.

Cash Concentration

The Company maintains its cash and cash equivalents with high quality financial institutions. The Company is exposed to credit risk for cash held in financial institutions in the event of a default to the extent that such amounts held exceed the amounts insured by the Federal Deposit Insurance Corporation.
v3.25.4
Related Party Transactions
 12 Months Ended
Dec. 31, 2025
Related Party Transactions [Abstract]  
Related Party Transactions

Management fees from insurance carriers

EIS is party to a longstanding MGA agreement with TTIC. For the years ended December 31, 2025, 2024 and 2023, the Company recognized underwriting, management, and claim services revenue pursuant to the MGA agreement with TTIC of $132,790, $119,022, and $81,316, respectively. As of December 31, 2025 and 2024, unearned revenue pursuant to the MGA agreement with TTIC of $32,875 and $35,118, respectively, was recorded within Contract liabilities in the Consolidated Balance Sheets. As of December 31, 2025 and 2024, the Company had receivables from related parties outstanding related to the above fees of $9,516 and $157, respectively. Such fees are typically settled in the month following the period in which the services were rendered.

On November 21, 2023, EIS entered into an MGA agreement with CRM, the AIF for CORE. For the years ended December 31, 2025, 2024 and 2023 the Company recognized underwriting, management, and claim services revenue pursuant to the MGA agreement with CRM of $4,957, $6,625 and $0, respectively. As of December 31, 2025 and 2024, unearned revenue pursuant to the MGA agreement with CRM of $1,799 and $3,172, respectively, was recorded within Contract liabilities in the Consolidated Balance Sheets. As of December 31, 2025 and 2024, the Company had receivable from related parties outstanding related to the above fees of $68 and $963, respectively. Such fees are typically settled in the month following the period in which the services were rendered.

On November 5, 2024, EIS entered into an MGA agreement with TRM, the AIF for Tailrow. For the year ended December 31, 2025, the Company recognized underwriting, management, and claim services revenue pursuant to the MGA agreement with TRM of $7,261. As of December 31, 2025, unearned revenue pursuant to the MGA agreement with TRM of $5,097 was recorded within Contract liabilities in the Consolidated Balance Sheets. As of December 31, 2025, the accounts receivable related to above fees outstanding were $501. There were no receivable balances as of December 31, 2024. Such fees are typically settled in the month following the period in which the services were rendered.

On January 1, 2025, EIS entered into a policy administration service agreement with HCM for HCPCI. For the year ended December 31, 2025, the Company recognized revenue related to underwriting and management services pursuant to the policy administration agreement with HCM of $60,131. As of December 31, 2025, unearned revenue pursuant to the policy administration agreement with HCM of $18,181 was recorded within Contract liabilities in the Consolidated Balance Sheets. As of December 31, 2025, the Company had receivable from related parties outstanding related to the above fees of $946. Such fees are typically settled in the month following the period in which the services were rendered.

Policy administration services

The Company charges HCM a service fee for each new and renewed HCPCI flood policy issued outside of Florida. Policy administration revenue and the related accounts receivable were immaterial for all periods presented. Such fees are typically settled within two weeks following the invoice date.

Other technology services

The Company charges HCM for various usage-based or flat fees to use the following software: SAMSTM, HarmonyTM, CasaClueTM, AtlasViewer®, and ClaimColonyTM. An additional flat fee is paid for other general software services. Effective January 1, 2025, the Company amended the agreement with HCM and only charges a flat per-claim fee to use ClaimColonyTM. For the years ended December 31, 2025, 2024 and 2023 the Company recognized policy administration software services revenue of $37, $1,806 and $1,780, respectively.

The Company provides catastrophe claims software services through the usage of its software, enabling efficient management and adjustment of the increased claim volumes arising from catastrophes. This service is offered to HCM, TTIC, CRM and TRM under their respective agreements. For the years ended December 31, 2025, 2024 and 2023, the Company recognized catastrophe claims software services revenue of $9,422, $5,992 and $5,232, respectively. As of December 31, 2025 and 2024, unearned revenue of $15,096 and $17,286, respectively, was recorded within the Contract liabilities in the Consolidated Balance Sheets.

As of December 31, 2025 and 2024, the Company had receivable from related parties outstanding related to software services revenue of $232 and $757, respectively. Such fees are typically settled in the month following the period in which the services were rendered.

Related Party Service Agreements - Expenses

Agent Commissions

Under an agent commission agreement with Omega, a subsidiary of HCI, the Company pays commissions on premiums received in cash for policies issued by specific customers during the term of the agreement. Commission expenses pursuant to the agent commission agreement with Omega for the years ended December 31, 2025, 2024 and 2023 were $111, $112 and $104, respectively. These expenses are reflected in Cost of revenue in the Consolidated Statements of Income. As of December 31, 2025 and 2024, the Company had commissions payable to Omega related to agent commissions of $12 and $9, respectively.

Claim Services

The Company receives field adjuster services from GCS, a subsidiary of HCI, and pays a flat fee per claim handled. Field adjuster services expenses related to services provided by GCS for the years ended December 31, 2025, 2024 and 2023 were $1,903, $4,313 and $2,231, respectively. These expenses are included in Cost of revenue in the Consolidated Statements of Income.

The Company also engages GCM, a subsidiary of HCI, to provide claims management services. Fees paid to GCM vary by program and claim type. For TTIC and Tailrow, the Company pays a per-claim fee for non-catastrophe claims, and a per-claim fee plus a percentage of incurred loss catastrophe claims. For CORE, the Company pays a per-claim fee plus a percentage of the amount expended for indemnification for catastrophe and non-catastrophe claims. For the years ended December 31, 2025, 2024 and 2023, claim services expenses related to GCM’s claims management services were $13,676, $16,147 and $11,679, respectively. These expenses are reflected in Cost of revenue in the Consolidated Statements of Income.

As of December 31, 2025 and 2024, accounts payable related to claim services were $777 and $429, respectively and are included in Payable to related parties within the Consolidated Balance Sheets. These fees are typically settled in the month following the period in which the services are rendered.

Office Leases

The Company leases office space in Tampa, Florida, from Century Park Holding, LLC, a subsidiary of HCI, under an agreement that commenced on January 1, 2023 and expires on December 31, 2032.

The Company also leases office space in Ocala, Florida, from Silver Springs Property Investment, LLC, a subsidiary of HCI, under an agreement that commenced on January 1, 2022 and was originally scheduled to expire on December 31, 2024. On July 4, 2024, the Company exercised a renewal option extending the lease term through December 31, 2027.

For the years ended December 31, 2025, 2024 and 2023, lease expense related to these agreements was $1,530, $1,508 and $1,488, respectively. These expenses are included in Cost of revenue and Selling, general and administrative expenses in the Consolidated Statements of Income.

As of December 31, 2025 and 2024, there were no accounts payable outstanding related to these leases, as payments are due on the first day of each calendar month.

Corporate Cost Allocation

The Company provided corporate services to TTIC under a Cost Allocation Agreement between Exzeo and its affiliates, which was amended effective July 1, 2025 to remove TTIC from the scope of the agreement. Following this amendment, the Company no longer provides corporate services to TTIC under the cost allocation agreement.

Expenses allocated under this agreement during the years ended December 31, 2025, 2024 and 2023 were $1,746, $2,500 and $3,472 ,respectively. Reimbursements received under the agreement are presented as a reduction in Selling, general and administrative expenses within the Consolidated Statements of Income.

As of December 31, 2025, there were no receivables or payables outstanding related to this agreement. As of December 31, 2024, the Company reported a balance of $544, which was recorded within Payable to related parties in the Consolidated Balance Sheets, and was subsequently settled in the normal course of business. Fees under the agreement were typically settled in the month following the period in which the services were rendered.

Notes Payable

On December 22, 2021, the Company issued a demand promissory note to HCI for a principal amount of $40,000 with an annual interest rate of 2.0%, maturing on June 30, 2023. The proceeds were used to make a capital contribution to TTIC. On February 5, 2023, HCI's Board of Directors approved an extension of the maturity date for the principal and accrued interest to June 30, 2025.

On June 1, 2022, the Company issued a promissory note to HCI for a principal amount of $2,994 with an annual interest rate of 3.25%, maturing on June 1, 2025.

On December 21, 2022, the Company issued a promissory note to HCI for a principal amount of $15,000 with an annual interest rate of 5.5%, maturing on December 21, 2025. The proceeds were used to make a capital contribution to TTIC.

On January 22, 2024, the Company issued a $100,000 promissory note to HCI with an annual interest rate of 5.5%, maturing on January 22, 2029. The proceeds were used to finance the redemption of the Redeemable Series A Preferred Stock. Refer to Note 10. Redeemable Series A Preferred Stock for additional information.

On July 1, 2024, the Company completed the sale of TTIC pursuant to the Purchase Agreement with HCI. Refer to Note 2. Discontinued Operations for additional information. Under the Purchase Agreement, HCI agreed to treat two promissory notes previously issued by the Company, totaling $117,994 in principal, as fully repaid. HCI also agreed to treat $37,006 of the Company's $40,000, 2.0% promissory note due June 1, 2025 as partially repaid, reducing its outstanding principal balance to $2,994. In total, promissory notes with an aggregate principal balance of $155,000 were treated as repaid or partially repaid in connection with the sale.

Interest expense for related party notes for the years ended December 31, 2024 and 2023 was $3,329 and $1,723, respectively. There was no interest expense for the year ended December 31, 2025.

Non-cash Capital Contributions

As described in Note 2. Discontinued Operations, the Purchase Agreement with HCI was accounted for as a common control transaction. The net assets of TTIC, totaling $155,884, were derecognized, and the difference between the consideration received of $155,000 and the net assets transferred was recognized as an equity transaction. This resulted in a non-cash capital transaction that decreased stockholders' equity by $(884).

On January 22, 2024, the Company redeemed all of the Redeemable Series A Preferred Stock held by the fund associated with Centerbridge Partners, L.P. and, in connection with the redemption, HCI extended the expiration date of the warrant currently held by Centerbridge Partners, L.P. Refer to Note 10. Redeemable Series A Preferred Stock for additional information. The Company reflected the full costs of redemption by recording the incremental fair value of the HCI warrant modification as a non-cash capital contribution and deemed dividend, amounting to $3,386, which was subtracted from net income to arrive at income available to common stockholders in the calculation of earnings per share.

For the years ended December 31, 2025 and 2024, the Company recognized compensation expense related to HCI restricted stock held by certain Company employees of $34 and $113, respectively, in the Consolidated Statements of Income and as a Non-cash capital contribution in the Consolidated Balance Sheets. Refer to Note 12. Stock-Based Compensation for additional information.
v3.25.4
Property and Equipment, Net
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net

Note 7. Property and Equipment, Net

Property and equipment are recorded at cost, which includes expenditures that are directly attributable to the acquisition, construction, or installation of an asset, and are depreciated or amortized over their estimated useful lives. Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Property and equipment, net is as follows:

 

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

Computer software

 

$

19,879

 

 

$

17,882

 

Computer hardware

 

 

2,091

 

 

 

1,669

 

Office furniture and equipment

 

 

1,294

 

 

 

555

 

Capital projects in progress

 

 

711

 

 

 

1,071

 

Leasehold improvements

 

 

587

 

 

 

542

 

Other

 

 

47

 

 

 

108

 

Property and equipment, gross

 

 

24,609

 

 

 

21,827

 

Accumulated depreciation and amortization

 

 

(13,947

)

 

 

(11,075

)

Property and equipment, net

 

$

10,662

 

 

$

10,752

 

 

Depreciation and amortization related to property and equipment is recorded within Cost of revenue, Research and development, and Depreciation and amortization expenses in the Consolidated Statements of Income, based on the functional classification of the related assets. For the years ended December 31, 2025, 2024 and 2023, depreciation and amortization expense was $2,934, $2,361 and $2,202, respectively.
v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases

Note 8. Leases

ROU assets and operating lease liabilities are as follows:

 

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

Assets:

 

 

 

 

 

 

Operating lease right-of-use assets

 

$

6,884

 

 

$

8,052

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Operating lease liabilities - current

 

$

2,413

 

 

$

2,132

 

Operating lease liabilities - non-current

 

 

4,832

 

 

 

6,219

 

Total operating lease liabilities

 

$

7,245

 

 

$

8,351

 

 

Weighted-average lease term and discount rate were as follows:

 

 

As of December 31,

 

 

2025

 

 

2024

 

Weighted-average remaining lease term (in years)

 

 

6.0

 

 

 

6.8

 

Weighted-average discount rate

 

 

6.3

%

 

 

6.2

%

 

The Company has entered into lease agreements with both affiliates and third parties. Refer to Note 6. Related Party Transactions for additional information. The Company's operating leases are summarized as follows:

 

Class of Assets

 

Initial Term

 

Renewal Option

 

Other Terms and Conditions

Office space

 

3 to 10 years

 

Yes

 

(1), (2)

Office equipment

 

5.25 years

 

Not applicable

 

 

 

(1)
Includes variable lease payments.
(2)
Includes rent escalation provisions.

As of December 31, 2025, maturities of operating lease liabilities were as follows:

 

Years Ending December 31:

 

Operating Leases

 

2026

 

$

1,708

 

2027

 

 

1,760

 

2028

 

 

1,145

 

2029

 

 

1,160

 

2030

 

 

1,197

 

Thereafter

 

 

2,276

 

Total undiscounted liabilities

 

 

9,246

 

Less: Imputed interest and foreign taxes

 

 

2,001

 

Total operating lease liabilities

 

$

7,245

 

 

Quantitative information regarding the components of lease cost and cash payments related to operating leases for the periods presented is as follows:

 

 

 

December 31,

 

 

 

2025

 

 

2024

 

2023

 

Operating lease cost (1)

 

$

1,695

 

 

$

1,701

 

$

1,290

 

Finance lease cost (1)

 

 

—

 

 

 

—

 

 

9

 

Total lease cost

 

$

1,695

 

 

$

1,701

 

$

1,299

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

Operating cash flows – operating leases

 

$

1,623

 

 

$

1,637

 

$

1,503

 

Financing cash flows – finance leases

 

$

—

 

 

$

—

 

$

9

 

 

(1)
Included within Cost of revenue and Selling, general and administrative expenses on the Consolidated Statements of Income.
v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

Note 9. Income Taxes

The components of income tax expense (benefit) attributable to continuing operations were as follows:

 

 

 

December 31,

 

 

2025

 

 

2024

 

 

2023

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

25,990

 

 

$

5,976

 

 

$

(5,079

)

State

 

 

6,440

 

 

 

1,583

 

 

 

(1,274

)

Foreign

 

 

209

 

 

 

84

 

 

 

67

 

Total current income tax expense (benefit)

 

 

32,639

 

 

 

7,643

 

 

 

(6,286

)

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

(4,946

)

 

 

1,216

 

 

 

(4,691

)

State

 

 

(160

)

 

 

312

 

 

 

(1,042

)

Foreign

 

 

10

 

 

 

(3

)

 

 

1

 

Total deferred income taxes

 

 

(5,096

)

 

 

1,525

 

 

 

(5,732

)

Income tax expense (benefit) from continuing operations

 

$

27,543

 

 

$

9,168

 

 

$

(12,018

)

 

Total taxes paid, net of refunds, for the years presented are as follows:

 

 

 

December 31,

 

 

2025

 

 

2024

 

 

2023 (1)

 

Federal

 

$

26,176

 

 

$

2,574

 

 

$

(3,152

)

State

 

 

5,931

 

 

 

715

 

 

 

(786

)

Foreign

 

 

198

 

 

 

129

 

 

 

145

 

Discontinued operations

 

 

—

 

 

 

10,530

 

 

 

(6,739

)

Cash paid for income taxes, net of refunds (2)

 

 

32,305

 

 

 

13,948

 

 

 

(10,532

)
(1)
The cash paid for income taxes, net of refunds, represents a 2023 net income tax refund paid from HCI pursuant to the tax allocation agreement. The Company had a taxable loss for the year, resulting in an enforceable right to receive tax benefits for losses incurred.
(2)
The refunds for the years ended December 31, 2025, 2024 and 2023 were $1,918, $313 and $11,398, respectively.

Income taxes paid, net of refunds received, are disaggregated by jurisdiction for those jurisdictions where such amounts exceeded 5% of total income taxes paid, net of refunds, for the periods presented. For all periods shown, income taxes paid in India fell below this threshold and are therefore excluded. Accordingly, income taxes paid (refunds) by jurisdiction for the periods presented are as follows:

 

 

 

December 31,

 

 

2025

 

 

2024

 

 

2023

 

State:

 

 

 

 

 

 

 

 

 

Florida

 

$

5,931

 

 

$

715

 

 

$

(786

)

 

The Company's income tax expense (benefit) differs from the amount that would result from applying the statutory U.S. federal income rate to income from continuing operations before taxes as follows:

 

 

 

December 31,

 

 

2025

 

 

2024

 

 

2023

 

(in thousands, except percentages)

 

($)

 

 

(%)

 

 

($)

 

 

(%)

 

 

($)

 

 

(%)

 

U.S. federal statutory tax rate

 

$

23,161

 

 

 

21.0

%

 

$

7,400

 

 

 

21.0

%

 

$

185

 

 

 

21.0

%

State income taxes, net of federal tax benefit (1)

 

 

4,411

 

 

 

4.0

%

 

 

1,436

 

 

 

4.1

%

 

 

82

 

 

 

9.3

%

Foreign tax effect

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

India - statutory tax rate

 

 

5

 

 

 

0.0

%

 

 

35

 

 

 

0.1

%

 

 

62

 

 

 

7.0

%

Return to provision adjustment

 

 

190

 

 

 

0.2

%

 

 

—

 

 

 

0.0

%

 

 

—

 

 

 

0.0

%

Change in valuation allowances

 

 

—

 

 

 

0.0

%

 

 

—

 

 

 

0.0

%

 

 

(12,806

)

 

 

(1450.3

)%

Nontaxable or nondeductible items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

248

 

 

 

0.2

%

 

 

49

 

 

 

0.1

%

 

 

77

 

 

 

8.8

%

Executive compensation under 162(m)

 

 

698

 

 

 

0.7

%

 

 

321

 

 

 

0.9

%

 

 

292

 

 

 

33.0

%

Restricted stock windfall tax benefit

 

 

(1,192

)

 

 

(1.1

)%

 

 

(51

)

 

 

(0.1

)%

 

 

(24

)

 

 

(2.7

)%

Other

 

 

22

 

 

 

0.0

%

 

 

(22

)

 

 

(0.1

)%

 

 

19

 

 

 

2.1

%

Other adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return to provision adjustment

 

 

—

 

 

 

0.0

%

 

 

—

 

 

 

0.0

%

 

 

95

 

 

 

10.8

%

Income tax expense (benefit)

 

$

27,543

 

 

 

25.0

%

 

$

9,168

 

 

 

26.0

%

 

$

(12,018

)

 

 

(1361.0

)%
(1)
State taxes in Florida made up a majority (greater than 50%) of the tax effect in this category.

Tax Allocation Agreement and Filing Status

The Company is included in the consolidated federal and state income tax returns of its parent company, HCI. A written tax allocation agreement governs the manner in which consolidated income taxes are allocated among HCI’s subsidiaries. Under this agreement, each subsidiary records income tax expense or benefit as if it filed a separate income tax return. The agreement provides the Company with an enforceable right to receive tax benefits for losses or credits generated.

The consolidated income tax returns of HCI and its subsidiaries for the years ended December 31, 2024, 2023 and 2022 remain subject to examination by U.S. federal and state taxing authorities.

The Company has no uncertain tax positions that, if recognized, would have a material impact on the effective tax rate. The Company classifies interest and penalties related to uncertain tax positions, if any, as income tax expense. No such amounts were recognized during the years ended December 31, 2025, 2024, or 2023.

Significant components of the Company’s deferred income tax assets and liabilities were as follows:

 

 

 

December 31,

 

 

2025

 

 

2024

 

Deferred tax assets:

 

 

 

 

 

 

Stock-based compensation

 

$

227

 

 

$

115

 

Unearned revenue

 

 

4,329

 

 

 

—

 

Accrued expenses

 

 

84

 

 

 

81

 

Intercompany deferred loss

 

 

1,208

 

 

 

544

 

Total deferred tax assets

 

 

5,848

 

 

 

740

 

Valuation allowance

 

 

(1,208

)

 

 

(544

)

Total deferred tax assets, net of valuation allowance

 

 

4,640

 

 

 

196

 

Deferred tax liabilities:

 

 

 

 

 

 

Property and equipment - capitalized software

 

 

(1,296

)

 

 

(878

)

Prepaid expenses

 

 

(369

)

 

 

(149

)

Unearned revenue

 

 

—

 

 

 

(1,290

)

Total deferred tax liabilities

 

 

(1,665

)

 

 

(2,317

)

Net deferred income tax asset (liability)

 

 

2,975

 

 

 

(2,121

)

 

The Company had no federal or state net operating loss carryforwards as of December 31, 2025.

A valuation allowance must be established for deferred tax assets when it is more likely than not that such assets will not be realized based on available evidence both positive and negative, including recent results, available tax planning strategies, and projected future taxable income. As a result of the sale of TTIC, the Company incurred a tax loss and recognized a deferred tax asset of $544 as of December 31, 2024. Subsequently the Company increased the deferred tax asset to $1,208 as of December 31, 2025 as a result of return-to-tax provision adjustments finalized during the current period. The valuation allowance reflects management's conclusion that it is more likely than not that the deferred tax asset related to the sale of TTIC would not be realized.

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was signed into law. The OBBBA includes various provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The OBBBA has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The OBBBA has an immaterial impact on the Consolidated Financial Statements.
v3.25.4
Redeemable Series A Preferred Stock
 12 Months Ended
Dec. 31, 2025
Proceeds from (Repurchase of) Redeemable Preferred Stock [Abstract]  
Redeemable Series A Preferred Stock

Note 10. Redeemable Series A Preferred Stock

In 2021, the Company completed a capital investment transaction with Centerbridge Partners, L.P. Pursuant to the investment agreement, the Company issued 9,000,000 voting shares of Series A-1 Preferred Stock and 1,000,000 non-voting shares of Series A-2 Preferred Stock (together, the "Series A Preferred Stock"), each with a par value of $0.001, at a price of $10 per share, for total proceeds of $100,000.

On July 3, 2023, the Company authorized an additional 1,000,000 non-voting Series A-2 shares and reclassified 1,000,000 previously issued Series A-1 shares into Series A-2 shares. Following this reclassification, 8,000,000 Series A-1 shares and 2,000,000 Series A-2 shares were issued and outstanding. Refer to Note 13. Stockholders' Equity for additional information.

On January 22, 2024, the Company entered into a Stock Redemption Agreement with Centerbridge Partners, L.P., pursuant to which the Company redeemed all outstanding Series A Preferred Stock for $100,000, plus accrued and unpaid dividends of $2,923. Upon redemption, the excess of the total consideration transferred of $102,923 over the carrying value of $96,695 was recorded as a deemed dividend, which reduced income available to common stockholders.

In connection with the redemption, HCI amended warrants previously issued to Centerbridge Partners, L.P. to purchase 750,000 shares of HCI common stock, which had originally been issued as part of the Company's 2021 capital investment transaction. The amended and restated warrant extended the expiration dates for 450,000 underlying warrant shares in 150,000 share annual increments to December 31, 2026, December 31, 2027, and December 31, 2028, respectively. The remaining 300,000 warrant shares retained their original expiration date of February 26, 2025. The incremental fair value associated with the warrant modification was recorded as a non-cash capital contribution from HCI and as a deemed dividend, totaling $3,386.

There was no activity related to the Series A Preferred Stock during the year ended December 31, 2025. A summary of Series A Preferred Stock activity through the date of redemption is as follows:

 

 

 

December 31,

 

 

2024

 

2023

 

Balance as of January 1

 

$

96,160

 

$

93,553

 

Accrued cash dividends

 

 

424

 

 

7,263

 

Accretion - increasing dividend rate

 

 

111

 

 

2,107

 

Adjustment to maximum redemption value

 

 

6,228

 

 

—

 

Dividends paid

 

 

(2,923

)

 

(6,763

)

Redemption

 

 

(100,000

)

 

—

 

Balance as of December 31

 

$

—

 

$

96,160

 
v3.25.4
Earnings Per Share
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Earnings Per Share

Note 11. Earnings Per Share

Basic EPS is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period. The Company applies the two-class method in calculating basic EPS because certain unvested restricted stock awards are considered participating securities, as the holders have non-forfeitable dividend rights. Under this method, earnings are allocated between common stockholders and participating securities based on their respective rights to receive dividends and undistributed earnings.

Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted. Potentially dilutive securities are excluded from diluted EPS when their effect would be anti-dilutive. For the periods presented, weighted-average diluted shares outstanding were the same as weighted-average basic shares outstanding.

The calculation of basic and diluted earnings per share for the periods presented is as follows:

Basic and Diluted Earnings per Share from Continuing Operations

 

 

 

December 31,

 

(in thousands, except per share amounts)

 

2025

 

 

 

2024

 

 

 

2023

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations, after tax

 

$

 

82,749

 

 

 

$

 

26,068

 

 

 

$

 

12,901

 

Less: Dividends on preferred stock

 

—

 

 

 

 

 

(10,149

)

 

 

 

 

(9,370

)

Less: Income attributable to participating securities from continuing operations

 

 

(3,751

)

 

 

 

 

(550

)

 

 

 

 

(201

)

Income attributable to common stockholders from continuing operations

 

$

 

78,998

 

 

 

$

 

15,369

 

 

 

$

 

3,330

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

Weighted-average basic shares outstanding

 

 

80,171

 

 

 

 

 

77,494

 

 

 

 

 

76,102

 

Weighted-average diluted shares outstanding (1)

 

 

80,171

 

 

 

 

 

77,494

 

 

 

 

 

76,102

 

Basic and diluted earnings per share from continuing operations

 

$

0.99

 

 

 

$

 

0.20

 

 

 

$

 

0.04

 
(1)
For the periods presented, all potentially dilutive securities for Exzeo were excluded from Exzeo's diluted earnings per share computation because their (i) effect would be anti-dilutive, (ii) exercise prices was "out-of-the-money," or (iii) contingent exercise conditions were unsatisfied. Refer to Note 1. Organization and Summary of Significant Accounting Policies for additional information.

Basic and Diluted Earnings per Share from Discontinued Operations

 

 

December 31,

 

(in thousands, except per share amounts)

 

2024

 

 

 

2023

 

Numerator:

 

 

 

 

 

 

 

Income from discontinued operations, after tax

 

$

 

19,253

 

 

 

$

 

8,561

 

Less: Income attributable to participating securities from discontinued operations

 

 

 

(667

)

 

 

 

 

(486

)

Income attributable to common stockholders from discontinued operations

 

$

 

18,586

 

 

 

$

 

8,075

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

Weighted-average basic shares outstanding

 

 

 

77,494

 

 

 

 

 

76,102

 

Weighted-average diluted shares outstanding (1)

 

 

 

77,494

 

 

 

 

 

76,102

 

Basic and diluted earnings per share from discontinued operations

 

$

 

0.24

 

 

 

$

 

0.11

 
(1)
For the periods presented, all potentially dilutive securities for Exzeo were excluded from Exzeo's diluted earnings per share computation because their (i) effect would be anti-dilutive, (ii) exercise price was "out-of-the-money," or (iii) contingent exercise conditions were unsatisfied. Refer to Note 1. Organization and Summary of Significant Accounting Policies for additional information.
v3.25.4
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement  
Stock-Based Compensation

Note 12. Stock-Based Compensation

Stock-based compensation cost is measured at the grant date fair value of the award and recognized over the requisite service period. Compensation expense is recorded within Cost of revenue, Research and development, and Selling, general and administrative expenses in the Consolidated Statements of Income. Forfeitures are accounted for as they occur.

2025 Omnibus Incentive Plan

The Company’s 2021 Omnibus Plan authorized the issuance of shares of common stock for equity-based compensation awards to employees, directors and consultants. On November 4, 2025, the Company terminated the 2021 Omnibus Plan and adopted the 2025 Omnibus Plan, which authorized the issuance of up to 10,000,000 shares of common stock. Awards outstanding under the 2021 Omnibus Plan continue to be governed by the terms of that plan. As of December 31, 2025, 9,768,530 shares remained available for future grant under the 2025 Omnibus Plan.

Stock Options

Stock options generally vest based on service conditions, generally four years, and have contractual terms of up to ten years. Stock option activity for the periods presented is as follows:

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

Weighted

 

 

Average

 

 

 

 

 

 

 

 

Average

 

 

Remaining

 

Aggregate

 

 

 

Number of

 

 

Exercise

 

 

Contractual

 

Intrinsic

 

(in thousands, except per share amounts and options)

 

Options

 

 

Price

 

 

Term (in years)

 

Value (1)

 

Outstanding as of January 1, 2023

 

 

6,450,000

 

 

$

23.00

 

 

8.75

 

$

—

 

Forfeited

 

 

(100,000

)

 

$

23.00

 

 

—

 

$

—

 

Outstanding as of December 31, 2023

 

 

6,350,000

 

 

$

23.00

 

 

7.75

 

$

—

 

Outstanding as of December 31, 2024

 

 

6,350,000

 

 

$

23.00

 

 

6.75

 

$

—

 

Outstanding as of December 31, 2025

 

 

6,350,000

 

 

$

23.00

 

 

5.75

 

$

7,938

 

Exercisable as of December 31, 2025 (2)

 

 

6,350,000

 

 

$

23.00

 

 

5.75

 

$

7,938

 

 

(1)
Aggregate intrinsic value at year end represents the difference between the Company’s closing stock price of $24.25 on December 31, 2025 and the exercise price of outstanding stock options.
(2)
Included in the stock options presented as exercisable are 6,000,000 options that are non-exercisable without HCI board of director approval.

As of December 31, 2025, all outstanding stock options were vested and exercisable. Stock-based compensation expense related to stock options is as follows:

 

 

 

December 31,

 

 

2025

 

 

2024

 

 

2023

 

Stock-based compensation expense (1)

 

$

1,040

 

 

$

2,045

 

 

$

1,767

 

Deferred tax benefit (2)

 

$

—

 

 

$

103

 

 

$

101

 

Unrecognized compensation expense (end of period) (3)

 

$

—

 

 

$

1,040

 

 

$

3,086

 

 

(1)
Recorded within Selling, general and administrative expenses in the Consolidated Statements of Income.
(2)
Recorded as an Income tax benefit in the Consolidated Statements of Income
(3)
Represents unrecognized stock-based compensation costs related to nonvested stock options and is reflected within Additional-paid-in capital in the Consolidated Balance Sheets.

Restricted Stock Awards

Nonvested restricted stock award activity for the periods presented is as follows:

 

 

 

Number of

 

 

Weighted

 

 

 

Restricted

 

 

Average

 

 

 

Stock

 

 

Grant Date

 

 

Awards

 

 

Fair Value

 

Balance as of January 1, 2023

 

 

5,275,393

 

 

$

0.83

 

Vested

 

 

(449,605

)

 

$

2.81

 

Forfeited

 

 

(592,545

)

 

$

0.75

 

Nonvested as of December 31, 2023

 

 

4,233,243

 

 

$

0.63

 

Granted

 

 

2,793,900

 

 

$

3.00

 

Vested

 

 

(2,881,986

)

 

$

0.73

 

Forfeited

 

 

(24,983

)

 

$

1.74

 

Nonvested as of December 31, 2024

 

 

4,120,174

 

 

$

2.16

 

Granted

 

 

321,020

 

 

$

16.38

 

Vested

 

 

(1,771,275

)

 

$

1.03

 

Forfeited

 

 

(128,326

)

 

$

3.16

 

Nonvested as of December 31, 2025

 

 

2,541,593

 

 

$

4.68

 

 

Stock-based compensation expense related to restricted stock awards is as follows:

 

 

 

December 31,

 

 

2025

 

 

2024

 

 

2023

 

Stock-based compensation expense (1)

 

$

1,562

 

 

$

1,221

 

 

$

1,160

 

Deferred tax benefit (2)

 

$

294

 

 

$

334

 

 

$

172

 

Unrecognized compensation expense (end of period) (3)

 

$

11,747

 

 

$

8,455

 

 

$

1,352

 

 

(1)
Recorded within Cost of revenue and Research and development, and Selling, general and administrative expenses in the Consolidated Statements of Income.
(2)
Recorded as an Income tax benefit in the Consolidated Statements of Income.
(3)
Represents unrecognized stock-based compensation costs related to nonvested restricted stock awards and is reflected within Additional paid-in-capital in the Consolidated Balance Sheets. The remaining compensation expense is expected to be recognized over a weighted average period of approximately 4.6 years.

Stock-based compensation expense for the current year includes approximately $47 of previously unrecognized share-based compensation expense related to the accelerated vesting of a restricted stock award held by the Company’s CEO upon completion of the Company’s initial public offering.

Share Repurchases Related to Stock-Based Awards

The Company did not repurchase any shares of common stock during the year ended December 31, 2025 related to stock-based awards. For the years ended December 31, 2024 and 2023, the Company repurchased 7,277 and 83,415 shares of common stock, respectively, held by former employees. The total repurchase price amounted to $13 and $142, respectively. The excess of the repurchase price over the fair value, which amounted to $2 and $29, respectively, was recognized as additional compensation cost and included in Selling, general and administrative expenses in our Consolidated Statements of Income.

HCI Equity Incentive Plan

HCI maintains an incentive plan that provides restricted stock awards to employees of HCI and its subsidiaries. The terms of the restricted stock awards include service conditions and market conditions, and the awards generally vest over a period of four years. In December 2024, certain employees of HCI and its subsidiaries were transferred to the Company. The Company recognizes stock-based compensation expense for those employees' nonvested shares based on the fair value determined by HCI at the original grant date and the same vesting terms established at the grant date. The awards are not remeasured following the transfer.

For the years ended December 31, 2025 and 2024, the Company recognized compensation expense related to HCI restricted stock of $34 and $113, respectively, in the Consolidated Statements of Income and as a Non-cash capital contribution in the Consolidated Balance Sheets
v3.25.4
Stockholders' Equity
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Stockholders' Equity

Note 13. Stockholders' Equity

Common Stock

As of December 31, 2025, the Company was authorized to issue 184,000,000 shares of common stock, consisting of 181,860,000 shares of voting common stock and 2,140,000 shares of non-voting common stock, pursuant to its Fourth Amended and Restated Articles of Incorporation, effective November 6, 2025. Voting common stock entitles holders to one vote per share, while non-voting common stock carries no voting rights. Both classes are entitled to dividends when and if declared by the Board of Directors and participate ratably in net assets upon liquidation.

Preferred Stock

As of December 31, 2025, the Company was authorized to issue 38,502,000 shares of preferred stock, with designations, powers, preferences, rights, qualifications, limitations, and restrictions determined by the Board of Directors. On January 22, 2024, the Company redeemed all outstanding 10,000,000 shares of Series A Preferred Stock. No shares of preferred stock were outstanding as of December 31, 2025.

Refer to Note 10. Redeemable Series A Preferred Stock for additional information regarding the terms, redemption, and accounting treatment of Series A Preferred Stock.

v3.25.4
Segment Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Information

Note 14. Segment Information

Operating segments are defined as components of an entity for which discrete financial information is available and that are regularly reviewed by the CODM for the purpose of allocating resources and assessing performance. The Company's CEO serves as the CODM. The CODM reviews financial information on a consolidated basis and evaluates performance based on consolidated revenue and net income. Accordingly, the Company operates in one operating segment, which is also its single reportable segment.

Discontinued Operations

On July 1, 2024, the Company completed the sale of TTIC to its parent company, HCI, and the results of TTIC have been classified as discontinued operations for all periods presented. Following the disposition of TTIC, management reassessed the Company's segment determination and concluded that its remaining operations continue to constitute a single operating and a single reportable segment.

Geographic Information

All of the Company’s revenues are generated in the United States, and substantially all of its long-lived assets are located in the United States. As a result, no geographic information by country is presented. Refer to Note 5. Concentrations of Risk for additional information.

The consolidated revenue, significant expense categories regularly reviewed by the CODM, and net income from continuing operations for the period indicated is as follows:

 

 

 

Years Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Revenue

 

$

216,980

 

 

$

133,948

 

 

$

88,333

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

Policy commission and related expenses

 

 

43,724

 

 

 

39,013

 

 

 

36,837

 

Outsourced claims fees

 

 

11,167

 

 

 

13,779

 

 

 

7,700

 

Direct personnel expense

 

 

17,122

 

 

 

13,422

 

 

 

13,802

 

Other operating expenses

 

 

11,532

 

 

 

12,298

 

 

 

10,825

 

Depreciation and amortization

 

 

2,412

 

 

 

2,227

 

 

 

1,897

 

Gross profit

 

 

131,023

 

 

 

53,209

 

 

 

17,272

 

Operating expenses

 

 

 

 

 

 

 

 

 

Selling, general and administrative:

 

 

 

 

 

 

 

 

 

Personnel cost

 

 

12,058

 

 

 

5,716

 

 

 

5,429

 

Other operating expenses

 

 

3,666

 

 

 

2,627

 

 

 

2,469

 

Research and development

 

 

8,830

 

 

 

6,514

 

 

 

6,528

 

Depreciation and amortization

 

 

479

 

 

 

335

 

 

 

292

 

Total operating expenses

 

 

25,033

 

 

 

15,192

 

 

 

14,718

 

Operating income

 

 

105,990

 

 

 

38,017

 

 

 

2,554

 

Investment income

 

 

4,302

 

 

 

548

 

 

 

52

 

Interest expense

 

 

—

 

 

 

(3,329

)

 

 

(1,723

)

Income before taxes

 

$

110,292

 

 

$

35,236

 

 

$

883

 

Income tax expense

 

 

27,543

 

 

 

9,168

 

 

 

(12,018

)

Net income

 

$

82,749

 

 

$

26,068

 

 

$

12,901

 
v3.25.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 15. Commitments and Contingencies

Legal Matters

From time to time, the Company may be involved in legal or regulatory proceedings arising in the ordinary course of business. The Company accrues a liability for loss contingencies when a loss is both probable and reasonably estimable.

As of December 31, 2025 and 2024, the Company was not a party to any legal proceedings that, individually or in the aggregate, were expected to have a material adverse effect on its financial position, results of operations, or cash flows and no related liabilities were recorded.

Lease Commitments

The Company leases office spaces and certain equipment under non-cancelable operating lease agreements with initial terms ranging from three to ten years, which may include renewal options or rent escalation provisions. Refer to Note 8. Leases for additional information.

Indemnification Obligations

The Company provides indemnification obligations under certain customer agreements, which may require the Company to defend against claims arising from breaches of contractual obligations. These indemnification provisions generally do not specify a maximum potential payment amount.

As of December 31, 2025 and 2024, the Company had not recorded any liabilities related to indemnification obligations, as management determined that no losses were probable or reasonably estimable.

Regulatory Matters

The Company is subject to various federal and state regulatory requirements applicable to its operations.

As of December 31, 2025 and 2024, the Company was not aware of any regulatory matters that are expected to have a material adverse effect on its financial position or results of operations
v3.25.4
Organization and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

The accompanying Consolidated Financial Statements of the Company have been prepared in accordance with GAAP.

Discontinued Operations

Beginning with the Company's financial statements for the quarter ended September 30, 2024, the Company retrospectively revised its presentation from an unclassified balance sheet to a classified balance sheet and from a single-step income statement to a two-step income statement to enhance comparability following the disposal of TTIC. These presentation changes were applied retrospectively to all periods presented and did not affect previously recorded net income (loss) or stockholders’ equity (deficit).

The sale of TTIC represented a strategic shift that had a major effect on the Company's operating and financial results and is therefore presented as discontinued operations in the Consolidated Statements of Income and Cash Flows for all periods presented. Prior to the sale, TTIC’s assets and liabilities were classified as discontinued operations on the Consolidated Balance Sheets, and following the completion of the sale, no TTIC-related assets or liabilities remained.
Principles of Consolidation

Principles of Consolidation

The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates

Use of Estimates

The preparation of Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosures. These estimates are based on historical experience and various other assumptions believed to be reasonable under the circumstances. Actual results could differ materially from those estimates. Significant estimates include revenue, income taxes, stock-based compensation, the fair value measurement related to the TTIC sale, and modifications of HCI warrants.
Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash

The Company considers all highly liquid investments with original maturities of three months or less to be cash and cash equivalents. Restricted cash consists of funds used to satisfy regulatory requirements related to discontinued operations and is not available for general corporate use.
Accounts Receivable and Credit Losses

Accounts Receivable and Credit Losses

Accounts receivable are recorded when the Company’s right to consideration becomes unconditional. The allowance for credit losses represents management’s estimate of expected losses on financial assets measured at amortized cost and is recorded as a reduction of receivables to the net amount expected to be collected. Changes in the allowance are recognized as credit loss expense within Selling, general and administrative expense in the Consolidated Statements of Income. When amounts are deemed uncollectible, they are written off against the allowance.

The Company applies the current expected credit loss model and considers historical loss experience, current conditions, and reasonable and supportable forecasts. Receivables are evaluated on a collective or individual basis, including consideration of related party relationships, as appropriate.

As of December 31, 2025 and 2024, the Company had no allowance for credit losses.
Contract Cost Assets

Contract Cost Assets

Contract cost assets represent costs incurred to fulfill a contract with a customer after contract inception but before services are transferred to the customer. These costs are capitalized when they are directly related to a specific contract, generate or enhance resources used to satisfy performance obligations, and are expected to be recoverable. Capitalized contract cost assets are amortized on a systematic basis consistent with the transfer of the related services to the customer.

Contract cost assets are reviewed periodically and whenever events or changes indicate potential impairment. If the carrying amount exceeds the remaining consideration expected to be received, net of directly related costs, an impairment loss is recognized in the Consolidated Statements of Income.
Property and Equipment, Net

Property and Equipment, Net

Property and equipment are recorded at cost, net of accumulated depreciation. The Company capitalizes expenditures that exceed established capitalization thresholds and are expected to provide economic benefit for more than one year. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets. Routine maintenance and repair costs are expensed as incurred, while expenditures that extend the useful lives or enhance the functionality of the assets are capitalized. Purchases of property and equipment are included in Capital expenditures in the Consolidated Statements of Cash Flows.

Costs incurred during the application development stage of internal-use-software are capitalized and amortized over the estimated useful life of the software. Costs incurred during the preliminary project stage and post-implementation stage are expensed as incurred. Depreciation of software used in providing services to customers is included in cost of revenue, while depreciation of internally used assets is included in Research and development and Depreciation and amortization expense. Capitalized software development costs are included in Capital expenditures in the Consolidated Statements of Cash Flows.

Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

Estimated Useful Lives of Property and Equipment:

 

Asset Category

 

Estimated Useful Life

Computer hardware and purchased software

 

3 years

Internally developed software

 

7 years

Office furniture and equipment

 

3 - 7 years

Leasehold improvements

 

Shorter of lease term or useful life
Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability is assessed at the asset group level by comparing the carrying amount to the sum of undiscounted future cash flows expected to result from the use and eventual disposition of the asset group. If the carrying amount exceeds the undiscounted cash flows, the asset group is written down to its fair value, and an impairment loss is recognized in the Consolidated Statements of Income. No impairment charges were recorded for any period presented.

Leases

Leases

The Company leases office equipment and office space from affiliates and non-affiliates under terms ranging from three years up to ten years. In assessing whether a contract is or contains a lease, the Company first determines whether there is an identified asset in the contract. The Company then determines whether the contract conveys the right to obtain substantially all of the economic benefits from use of the identified asset or the right to direct the use of the identified asset. The Company elects not to record any lease with a term of 12 months or less on the Consolidated

Balance Sheets. For such short-term leases, the Company recognizes the lease payments in expense on a straight-line basis over the lease term.

If the contract is or contains a lease and the Company has the right to control the use of the identified asset, the ROU asset and the lease liability are measured from the lease component of the contract and recognized on the Consolidated Balance Sheets. In measuring the lease liability, the Company uses its incremental borrowing rate for a loan secured by a similar asset that has a term similar to the lease term to discount the lease payments. The contract is further evaluated to determine the classification of the lease as to whether it is finance or operating. If the lease is a finance lease, the ROU asset is depreciated to depreciation expense over the shorter of the useful life of the asset or the lease term. Interest expense is recorded in connection with the lease liability using the effective interest method. If the lease is an operating lease, the ROU asset is amortized to lease expense on a straight-line basis over the lease term. Refer to Note 8. Leases for additional information.

Contract Liabilities

Contract Liabilities

Contract liabilities are recorded on the Consolidated Balance Sheets when consideration is received, or when the Company has an unconditional right to consideration, prior to transferring the services to the customer. These amounts represent the Company’s obligation to provide services in the future. Revenue is recognized and contract liabilities are reduced as the related performance obligations are satisfied. Contract liabilities expected to be recognized within 12 months are classified as current, and amounts expected to be recognized thereafter are classified as non-current.
Commissions Payable

Commissions Payable

Commissions payable represents the Company’s obligation to remit commissions earned on direct written premiums for policies written by carriers for which the Company collects fees inclusive of agent commissions and subsequently remits commissions to agents. Commission rates are contractually defined percentages of premiums and vary based on factors such as geographic region, risk classification, and whether the policy is new or a renewal. Commissions payable liability is estimated by applying contractual commission rates to directly written premiums and is updated at each reporting date based on actual premium activity.

Commissions payable is recorded as a current liability in the Consolidated Balance Sheets and is recognized as Cost of revenue in the Consolidated Statements of Income. These liabilities are generally settled within one year.
Redeemable Series A Preferred Stock

Redeemable Series A Preferred Stock

The Company classified its Redeemable Series A Preferred Stock as temporary equity (mezzanine) on the Consolidated Balance Sheets as the instrument contained redemption features that were not solely within the Company’s control.

At issuance, the Series A Preferred Stock was recorded at fair value, net of issuance costs, applying a residual fair value method. Subsequent to issuance, the carrying amount was adjusted each reporting period for (i) accrued dividends, (ii) dividend payments, and (iii) accretion required to reflect the increasing contractual dividend rate over the life of the instrument. Accretion was recognized using the effective interest rate method and recorded as a reduction to retained earnings or accumulated deficit.

Dividends were contractually payable in cash or in kind and were accrued monthly based on the assumption of cash settlement. In periods when redemption became probable or determinable, the carrying amount was adjusted to the greater of (i) the contractual redemption amount or (ii) fair value at the reporting date. Such adjustments were treated as deemed dividends when calculating net income attributable to common stockholders. Refer to Note 10. Redeemable Series A Preferred Stock for additional information.
Fair Value Measurements

Fair Value Measurements

The Company applies fair value measurements in accordance with a hierarchical framework that prioritizes the inputs used in valuation techniques. The three levels of the fair value hierarchy are defined as follows:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2: Observable inputs other than Level 1 prices, including similar quoted prices for similar assets or liabilities.

Level 3: Unobservable inputs reflecting the Company’s assumptions that market participants would use in pricing the asset or liability.

The Company's financial assets measured at fair value on a recurring basis consist solely of cash and cash equivalents, primarily money market funds, which are classified as Level 1 due to the use of quoted prices in active markets. The carrying amounts of cash and cash equivalents approximate fair value due to their short maturities and high liquidity.

As of December 31, 2025 and December 31, 2024, the Company did not have any assets or liabilities measured at fair value on a non-recurring basis.

The Company had no outstanding debt or notes payable as of December 31, 2025 or 2024. Accordingly, no fair value disclosures related to such instruments are required for the periods presented.

Foreign Currency

Foreign Currency

The functional currency of the Company’s Indian subsidiary is the U.S. dollar. Monetary assets and liabilities are remeasured using period-end exchange rates, while non-monetary items are remeasured using historical exchange rates. Expenses are remeasured at exchange rates prevailing at the time incurred. Resulting foreign currency gains and losses are included in Selling, general and administrative expense in the Consolidated Statements of Income.
Revenue

Revenue

Revenue is recognized when control of promised services is transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled. The Company applies the five-step model to identify performance obligations, determine the transaction price, allocate the transaction price to performance obligations, and recognize revenue when, or as, performance obligations are satisfied.

The Company's contracts may include variable consideration, such as fees based on written premiums, policy counts or claims activity. Variable consideration is estimated using the expected value method and included in the transaction price only to the extent that it is probable that a significant reversal of cumulative revenue recognized will not occur. Revenue is recognized either at a point in time or over time, depending on the nature of services provided and the transfer of control to the customer. Refer to Note 3. Revenue for additional information.

Cost of Revenue

Cost of Revenue

Cost of revenue consists of expenses directly attributable to the delivery of revenue generating services including personnel related costs for employees engaged in underwriting, management, administrative, and claim services; commissions remitted to agents; amortization of software intangible assets used in service delivery; and allocated overhead from supporting departments.

Information technology services supporting policy underwriting, administrative functions, and claims handling are also included in Cost of revenue in the Consolidated Statements of Income.

Claim handling costs include expenses incurred throughout the claims process, including adjustment, investigation, defense, recording, and settlement activities, as well as allocated expenses from departments supporting these functions.
Research and Development

Research and Development

Research and development costs consist primarily of personnel expenses, including salaries and benefits, bonuses, stock-based compensation and related overhead costs for employees engaged in the design and development of the Company’s offerings and other internally used systems and applications. Research and development costs are expensed as incurred.
Stock-Based Compensation

Stock-Based Compensation

The Company accounts for stock-based compensation based on the grant-date fair value of the awards, recognizing expense over the requisite service period generally three to six years. For awards with service-based vesting conditions, compensation expense is recognized on a straight-line basis over the required service period. Restricted stock awards with market-based vesting conditions are recognized over the derived service period and expense recognition may be accelerated if the market condition is satisfied earlier than anticipated. The Company recognizes forfeitures as they occur and does not estimate forfeiture rates at grant date. Previously recognized compensation cost is reversed in the period an award is forfeited.

The Company issues stock options primarily to executives and key employees. Prior to the Company's IPO, stock options were measured at fair value on the grant date using a Monte Carlo simulation model, as the fair value of the Company’s common stock was determined with the assistance of a third-party valuation specialist and the use of observable market inputs was limited. Following the IPO, the grant-date fair value of stock options is estimated using the Black-Scholes option pricing model. Stock option expense is recognized over the requisite service period, generally four years, using the straight-line method for awards expected to vest.

The Company’s outstanding stock-based awards consist of stock options and restricted stock awards with service-based or market-based vesting conditions. Stock-based compensation expense is recorded within Cost of revenue, Research and development, and Selling, general and administrative expenses, based on the functional classification of the related employee or service provider. Forfeitures are recorded when they occur. Tax benefits or tax shortfalls related to stock-based awards are recognized in the Consolidated Statements of Income in the period the awards vest or are exercised.

For awards granted to employees of foreign subsidiaries, the Company has recharge arrangements under which the foreign subsidiary reimburses the Company for the related stock-based compensation costs.

Effective December 24, 2024, certain employees of HCI and its subsidiaries transferred to the Company. Stock-based compensation expense related to both vested and unvested restricted stock awards originally granted by HCI is recognized by the Company. Refer to Note 12. Stock-Based Compensation for additional information.

Offering Costs

Offering Costs

In connection with the Company’s IPO completed on November 6, 2025, the Company incurred underwriting discounts and commissions, legal, accounting and advisory fees, along with other third-party costs directly attributable to the issuance of common stock. Incremental costs directly attributable to the equity issuance were recorded as a reduction of the related gross proceeds within additional paid-in capital. Such costs included underwriting discounts and commissions, as well as other qualifying offering costs such as legal, accounting, regulatory, filing and listing fees directly associated with the IPO.

Offering costs that were not directly attributable to the equity issuance, or that would have been incurred regardless of whether the IPO was completed, were expensed as incurred within Selling, general and administrative expenses in the Consolidated Statements of Income. These included recurring audit and review fees, internal compensation, and public company readiness activities.

Underwriting discounts and commissions totaled approximately $11,760 and were recorded as a reduction of IPO gross proceeds. Other qualifying costs totaled approximately $1,486 and were recorded as a reduction of the IPO gross proceeds within additional paid-in capital. As of December 31, 2025, qualifying offering costs included $382 of unpaid amounts, which are recorded in Accounts payable and accrued liabilities on the Consolidated Balance Sheets. Cash payments for qualifying offering costs that reduced equity are reflected within financing activities in the Consolidated Statements of Cash Flows.

Basic and Diluted Earnings Per Common Share

Basic and Diluted Earnings Per Common Share

The two-class method is applied when computing basic earnings per share for periods in which participating securities, including unvested restricted stock awards with nonforfeitable dividend rights, are outstanding.

Income available to common stockholders is adjusted for dividends and deemed dividends on redeemable preferred stock, as well as for income attributable to participating securities.

Diluted earnings per share includes the effect of potentially dilutive common shares outstanding during the period, unless the effect would be antidilutive. Refer to Note 11. Earnings Per Share for additional information.

Income Taxes

Income Taxes

Deferred income taxes are recognized for the future tax consequences of temporary differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the periods in which the temporary differences are expected to be reversed.

The Company is included in the consolidated federal and state income tax returns of its parent company, HCI, and records tax expense or benefit as if it filed separate income tax returns under a written tax allocation agreement. Deferred tax assets are evaluated for realizability each reporting period and a valuation allowance is recorded when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Income taxes related to discontinued operations are reported separately from continuing operations, when applicable. The Company recognizes interest and penalties related to uncertain tax positions, if any, as income tax expense. As of the Consolidated Balance Sheets date, the Company had no unrecognized tax benefits. Refer to Note 9. Income Taxes for additional information.
Related Party Transactions

Related Party Transactions

The Company enters into transactions with related parties in the ordinary course of business, including entities under common ownership or control. Related party transactions may include revenue arrangements, expense reimbursements, cost allocation agreements, lease arrangements, financing transactions, and non-cash capital contributions. These transactions are recorded based on their contractual terms, or established allocation

methodologies and are evaluated for appropriate financial statement presentation and disclosure. Refer to Note 6. Related Party Transactions for additional information.
Recent Accounting Pronouncements

Recent Accounting Pronouncements

Accounting Standards Adopted in the Current Year

In December 2023, the FASB issued ASU No. 2023-09 - Income Taxes (Topic 740): Improvements to Income Tax Disclosures, to enhance the transparency of income tax disclosures. This update requires expanded disclosure of the income tax rate reconciliation and additional information about income taxes paid. This standard is effective for fiscal years starting after December 15, 2024, with early adoption permitted. The Company adopted the amendments on a prospective basis effective January 1, 2025, resulting in enhanced income tax disclosures beginning with the Consolidated Financial Statements for the year ended December 31, 2025.

Accounting Standards Issued but Not Yet Adopted

In September 2025, the FASB issued ASU No. 2025-06 Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This update enhances guidance on the capitalization of software development costs by eliminating project phase-based criteria and clarifying the conditions signifying significant development uncertainty used by entities to evaluate when the probable-to-complete recognition threshold is met. This standard is effective for all entities for fiscal years and interim periods beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating the potential impact of these updates on its Consolidated Financial Statements.

 

In July 2025, the FASB issued ASU No. 2025-05 - Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This update simplifies the estimation of current expected credit losses on current accounts receivable and current contract assets related to revenue from contracts with customers by allowing all entities to assume that current conditions as of the balance sheet date will not change for the remaining life of the current accounts receivable and current contract assets. This standard is effective for all entities for fiscal years and interim periods beginning after December 15, 2025. Early adoption is permitted. The Company is evaluating the potential impact of these updates and does not expect adoption to have a material impact on its Consolidated Financial Statements.

 

In March 2025, the FASB issued ASU No. 2025-01 Codification Amendments in Response to the SEC's Adoption of Rules Related to the Disaggregation of Income Statement Expenses, which clarifies transition provisions but does not change the underlying disclosure requirements. ASU 2024-03 and ASU 2025-01 are effective for annual reporting periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating the potential impact of these updates on its disclosures.

 

In November 2024, the FASB issued ASU No. 2024-03 - Income Statement–Reporting Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40), which enhances disclosure requirements for public entities by requiring the disaggregation of certain expense captions presented within the income statement, including employee compensation and intangible asset amortization. This ASU also requires entities to reconcile each affected income statement caption to the aggregate amount of the separately disclosed expense categories with any remaining difference described qualitatively as "other items."
v3.25.4
Organization and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Estimated Useful Lives of Property and Equipment

Estimated Useful Lives of Property and Equipment:

 

Asset Category

 

Estimated Useful Life

Computer hardware and purchased software

 

3 years

Internally developed software

 

7 years

Office furniture and equipment

 

3 - 7 years

Leasehold improvements

 

Shorter of lease term or useful life
v3.25.4
Discontinued Operations (Tables)
 12 Months Ended
Dec. 31, 2025
Discontinued Operations and Disposal Groups [Abstract]  
Summary of Major Classes of Assets and Liabilities

The major classes of TTIC's assets and liabilities transferred are as follows:

 

 

 

July 1, 2024

 

Assets:

 

 

 

Cash and cash equivalents

 

$

58,774

 

Premiums receivable, net

 

 

18,835

 

Reinsurance recoverable, net

 

 

112,242

 

Deferred policy acquisition costs

 

 

23,133

 

Prepaid reinsurance premiums

 

 

17,899

 

Investments

 

 

333,364

 

Other assets

 

 

37,736

 

Total assets

 

$

601,983

 

Liabilities:

 

 

 

Losses and loss adjustment expenses

 

$

231,057

 

Unearned premiums

 

 

212,377

 

Other liabilities

 

 

2,665

 

Total liabilities

 

$

446,099

 
Summary of major classes of line items constituting income from discontinued operation

Financial Information of Discontinued Operations

The major classes of line items constituting income from discontinued operations are as follows:

 

 

 

December 31,

 

 

 

2024

 

 

2023

 

Gross premium earned

 

$

210,803

 

 

$

348,310

 

Premiums ceded

 

 

(58,943

)

 

 

(122,501

)

Investment and other income

 

 

9,542

 

 

 

13,812

 

Loss and loss adjustments expense

 

 

(87,219

)

 

 

(153,876

)

Policy acquisition costs

 

 

(45,356

)

 

 

(71,316

)

Other operating expenses

 

 

(2,973

)

 

 

(2,899

)

Income from discontinued operations, before tax

 

$

25,854

 

 

$

11,530

 

Income tax expense from discontinued operations

 

 

6,601

 

 

 

2,969

 

Income from discontinued operations, after tax

 

$

19,253

 

 

$

8,561

 
v3.25.4
Revenue (Tables)
 12 Months Ended
Dec. 31, 2025
Disaggregation of Revenue [Abstract]  
Summary of Revenue Disaggregated by Service Type and by Timing of Revenue

 

 

December 31,

 

 

2025

 

 

2024

 

 

2023 (1)

 

Underwriting and management services

 

$

176,368

 

 

$

95,373

 

 

$

61,410

 

Claim services

 

 

31,154

 

 

 

30,777

 

 

 

19,911

 

Other technology services

 

 

9,458

 

 

 

7,798

 

 

 

7,012

 

Total revenue

 

$

216,980

 

 

$

133,948

 

 

$

88,333

 

 

(1)
The Company waived $15,000 of management fees during 2023 related to its MGA agreement with TTIC, which was a wholly owned subsidiary until July 1, 2024. The waived fees were excluded from Revenue in the Consolidated Statements of Income.

Revenue disaggregated by the timing of recognition is as follows:

 

 

 

December 31,

 

 

2025

 

 

2024

 

 

2023

 

Point in time

 

$

94,645

 

 

$

63,373

 

 

$

35,933

 

Over time

 

 

122,335

 

 

 

70,575

 

 

 

52,400

 

Total revenue

 

$

216,980

 

 

$

133,948

 

 

$

88,333

 

 
Summary of Changes in Contract Liabilities and Contract Cost Assets contract liabilities during the periods presented are as follows:

 

 

 

As of December 31,

 

 

2025

 

 

2024

 

Beginning balance

 

$

55,576

 

 

$

40,080

 

Additions (billings, considerations received)

 

 

139,361

 

 

 

78,477

 

Revenue recognized related to beginning balance

 

 

(43,308

)

 

 

(29,796

)

Revenue recognized related to current period additions

 

 

(77,169

)

 

 

(33,185

)

Ending balance

 

$

74,460

 

 

$

55,576

 

 

 

 

 

As of December 31,

 

 

2025

 

 

2024

 

Beginning balance

 

$

9,529

 

 

$

6,446

 

Additions

 

 

3,910

 

 

 

11,199

 

Cost recognized

 

 

(7,599

)

 

 

(8,116

)

Ending balance

 

$

5,840

 

 

$

9,529

 
v3.25.4
Comprehensive Income (Tables)
 12 Months Ended
Dec. 31, 2025
Other Comprehensive Income (Loss), Tax [Abstract]  
Schedule of Components of Other Comprehensive Income The components of other comprehensive income related to discontinued operations were as follows:

 

 

December 31,

 

 

2024

 

 

2023

 

Unrealized gain (losses) on fixed maturity securities

 

 

 

 

 

 

Balance at the beginning of the period

 

$

(1,803

)

 

$

(4,963

)

Unrealized gains on investments

 

 

307

 

 

 

2,547

 

Deferred income taxes

 

 

(77

)

 

 

601

 

Gains reclassified into net income

 

 

 

 

 

 

Reclassification adjustment for net realized losses

 

 

—

 

 

 

10

 

Tax effect on reclassification

 

 

—

 

 

 

2

 

Other comprehensive income

 

$

230

 

 

$

3,160

 

Balance at the end of the period, prior to disposition of TTIC

 

$

(1,573

)

 

$

(1,803

)

Completion of TTIC disposition (1)

 

 

1,573

 

 

 

—

 

Balance at the end of the period, post to disposition of TTIC

 

$

-

 

 

$

(1,803

)
(1)
This amount relates to the disposal of TTIC. Refer to Note 2. Discontinued Operations for additional information.
v3.25.4
Property and Equipment, Net (Tables)
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment, Net Property and equipment, net is as follows:

 

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

Computer software

 

$

19,879

 

 

$

17,882

 

Computer hardware

 

 

2,091

 

 

 

1,669

 

Office furniture and equipment

 

 

1,294

 

 

 

555

 

Capital projects in progress

 

 

711

 

 

 

1,071

 

Leasehold improvements

 

 

587

 

 

 

542

 

Other

 

 

47

 

 

 

108

 

Property and equipment, gross

 

 

24,609

 

 

 

21,827

 

Accumulated depreciation and amortization

 

 

(13,947

)

 

 

(11,075

)

Property and equipment, net

 

$

10,662

 

 

$

10,752

 
v3.25.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of ROU Assets and Operating Lease Liabilities

ROU assets and operating lease liabilities are as follows:

 

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

Assets:

 

 

 

 

 

 

Operating lease right-of-use assets

 

$

6,884

 

 

$

8,052

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Operating lease liabilities - current

 

$

2,413

 

 

$

2,132

 

Operating lease liabilities - non-current

 

 

4,832

 

 

 

6,219

 

Total operating lease liabilities

 

$

7,245

 

 

$

8,351

 
Schedule of Operating Leases

Class of Assets

 

Initial Term

 

Renewal Option

 

Other Terms and Conditions

Office space

 

3 to 10 years

 

Yes

 

(1), (2)

Office equipment

 

5.25 years

 

Not applicable

 

 

 

(1)
Includes variable lease payments.
(2)
Includes rent escalation provisions.
Schedule of Lease Liability Maturities

As of December 31, 2025, maturities of operating lease liabilities were as follows:

 

Years Ending December 31:

 

Operating Leases

 

2026

 

$

1,708

 

2027

 

 

1,760

 

2028

 

 

1,145

 

2029

 

 

1,160

 

2030

 

 

1,197

 

Thereafter

 

 

2,276

 

Total undiscounted liabilities

 

 

9,246

 

Less: Imputed interest and foreign taxes

 

 

2,001

 

Total operating lease liabilities

 

$

7,245

 
Schedule of Components of Lease Cost and Additional Lease Information

Weighted-average lease term and discount rate were as follows:

 

 

As of December 31,

 

 

2025

 

 

2024

 

Weighted-average remaining lease term (in years)

 

 

6.0

 

 

 

6.8

 

Weighted-average discount rate

 

 

6.3

%

 

 

6.2

%

Quantitative information regarding the components of lease cost and cash payments related to operating leases for the periods presented is as follows:

 

 

 

December 31,

 

 

 

2025

 

 

2024

 

2023

 

Operating lease cost (1)

 

$

1,695

 

 

$

1,701

 

$

1,290

 

Finance lease cost (1)

 

 

—

 

 

 

—

 

 

9

 

Total lease cost

 

$

1,695

 

 

$

1,701

 

$

1,299

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

Operating cash flows – operating leases

 

$

1,623

 

 

$

1,637

 

$

1,503

 

Financing cash flows – finance leases

 

$

—

 

 

$

—

 

$

9

 

 

(1)
Included within Cost of revenue and Selling, general and administrative expenses on the Consolidated Statements of Income.
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) attributable to continuing operations were as follows:

 

 

 

December 31,

 

 

2025

 

 

2024

 

 

2023

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

25,990

 

 

$

5,976

 

 

$

(5,079

)

State

 

 

6,440

 

 

 

1,583

 

 

 

(1,274

)

Foreign

 

 

209

 

 

 

84

 

 

 

67

 

Total current income tax expense (benefit)

 

 

32,639

 

 

 

7,643

 

 

 

(6,286

)

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

(4,946

)

 

 

1,216

 

 

 

(4,691

)

State

 

 

(160

)

 

 

312

 

 

 

(1,042

)

Foreign

 

 

10

 

 

 

(3

)

 

 

1

 

Total deferred income taxes

 

 

(5,096

)

 

 

1,525

 

 

 

(5,732

)

Income tax expense (benefit) from continuing operations

 

$

27,543

 

 

$

9,168

 

 

$

(12,018

)
Schedule of Total Taxes Paid Net of Refunds

Total taxes paid, net of refunds, for the years presented are as follows:

 

 

 

December 31,

 

 

2025

 

 

2024

 

 

2023 (1)

 

Federal

 

$

26,176

 

 

$

2,574

 

 

$

(3,152

)

State

 

 

5,931

 

 

 

715

 

 

 

(786

)

Foreign

 

 

198

 

 

 

129

 

 

 

145

 

Discontinued operations

 

 

—

 

 

 

10,530

 

 

 

(6,739

)

Cash paid for income taxes, net of refunds (2)

 

 

32,305

 

 

 

13,948

 

 

 

(10,532

)
(1)
The cash paid for income taxes, net of refunds, represents a 2023 net income tax refund paid from HCI pursuant to the tax allocation agreement. The Company had a taxable loss for the year, resulting in an enforceable right to receive tax benefits for losses incurred.
(2)
The refunds for the years ended December 31, 2025, 2024 and 2023 were $1,918, $313 and $11,398, respectively.
Schedule of Income Taxes Paid (Refunds) by Jurisdiction Accordingly, income taxes paid (refunds) by jurisdiction for the periods presented are as follows:

 

 

 

December 31,

 

 

2025

 

 

2024

 

 

2023

 

State:

 

 

 

 

 

 

 

 

 

Florida

 

$

5,931

 

 

$

715

 

 

$

(786

)

 
Schedule of Company's Income Tax Expense (benefit) Differs From U.S. Federal Income Rate to Income From Continuing Operations Before Taxes

The Company's income tax expense (benefit) differs from the amount that would result from applying the statutory U.S. federal income rate to income from continuing operations before taxes as follows:

 

 

 

December 31,

 

 

2025

 

 

2024

 

 

2023

 

(in thousands, except percentages)

 

($)

 

 

(%)

 

 

($)

 

 

(%)

 

 

($)

 

 

(%)

 

U.S. federal statutory tax rate

 

$

23,161

 

 

 

21.0

%

 

$

7,400

 

 

 

21.0

%

 

$

185

 

 

 

21.0

%

State income taxes, net of federal tax benefit (1)

 

 

4,411

 

 

 

4.0

%

 

 

1,436

 

 

 

4.1

%

 

 

82

 

 

 

9.3

%

Foreign tax effect

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

India - statutory tax rate

 

 

5

 

 

 

0.0

%

 

 

35

 

 

 

0.1

%

 

 

62

 

 

 

7.0

%

Return to provision adjustment

 

 

190

 

 

 

0.2

%

 

 

—

 

 

 

0.0

%

 

 

—

 

 

 

0.0

%

Change in valuation allowances

 

 

—

 

 

 

0.0

%

 

 

—

 

 

 

0.0

%

 

 

(12,806

)

 

 

(1450.3

)%

Nontaxable or nondeductible items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

248

 

 

 

0.2

%

 

 

49

 

 

 

0.1

%

 

 

77

 

 

 

8.8

%

Executive compensation under 162(m)

 

 

698

 

 

 

0.7

%

 

 

321

 

 

 

0.9

%

 

 

292

 

 

 

33.0

%

Restricted stock windfall tax benefit

 

 

(1,192

)

 

 

(1.1

)%

 

 

(51

)

 

 

(0.1

)%

 

 

(24

)

 

 

(2.7

)%

Other

 

 

22

 

 

 

0.0

%

 

 

(22

)

 

 

(0.1

)%

 

 

19

 

 

 

2.1

%

Other adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return to provision adjustment

 

 

—

 

 

 

0.0

%

 

 

—

 

 

 

0.0

%

 

 

95

 

 

 

10.8

%

Income tax expense (benefit)

 

$

27,543

 

 

 

25.0

%

 

$

9,168

 

 

 

26.0

%

 

$

(12,018

)

 

 

(1361.0

)%
(1)
State taxes in Florida made up a majority (greater than 50%) of the tax effect in this category.
Components of Company's Deferred Income Tax Assets and Liabilities

Significant components of the Company’s deferred income tax assets and liabilities were as follows:

 

 

 

December 31,

 

 

2025

 

 

2024

 

Deferred tax assets:

 

 

 

 

 

 

Stock-based compensation

 

$

227

 

 

$

115

 

Unearned revenue

 

 

4,329

 

 

 

—

 

Accrued expenses

 

 

84

 

 

 

81

 

Intercompany deferred loss

 

 

1,208

 

 

 

544

 

Total deferred tax assets

 

 

5,848

 

 

 

740

 

Valuation allowance

 

 

(1,208

)

 

 

(544

)

Total deferred tax assets, net of valuation allowance

 

 

4,640

 

 

 

196

 

Deferred tax liabilities:

 

 

 

 

 

 

Property and equipment - capitalized software

 

 

(1,296

)

 

 

(878

)

Prepaid expenses

 

 

(369

)

 

 

(149

)

Unearned revenue

 

 

—

 

 

 

(1,290

)

Total deferred tax liabilities

 

 

(1,665

)

 

 

(2,317

)

Net deferred income tax asset (liability)

 

 

2,975

 

 

 

(2,121

)
v3.25.4
Redeemable Series A Preferred Stock (Tables)
 12 Months Ended
Dec. 31, 2025
Proceeds from (Repurchase of) Redeemable Preferred Stock [Abstract]  
Summary of Activity of Redeemable Preferred Stock A summary of Series A Preferred Stock activity through the date of redemption is as follows:

 

 

 

December 31,

 

 

2024

 

2023

 

Balance as of January 1

 

$

96,160

 

$

93,553

 

Accrued cash dividends

 

 

424

 

 

7,263

 

Accretion - increasing dividend rate

 

 

111

 

 

2,107

 

Adjustment to maximum redemption value

 

 

6,228

 

 

—

 

Dividends paid

 

 

(2,923

)

 

(6,763

)

Redemption

 

 

(100,000

)

 

—

 

Balance as of December 31

 

$

—

 

$

96,160

 
v3.25.4
Earnings Per Share (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Summary of Calculation of Basic and Diluted EPS

The calculation of basic and diluted earnings per share for the periods presented is as follows:

Basic and Diluted Earnings per Share from Continuing Operations

 

 

 

December 31,

 

(in thousands, except per share amounts)

 

2025

 

 

 

2024

 

 

 

2023

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations, after tax

 

$

 

82,749

 

 

 

$

 

26,068

 

 

 

$

 

12,901

 

Less: Dividends on preferred stock

 

—

 

 

 

 

 

(10,149

)

 

 

 

 

(9,370

)

Less: Income attributable to participating securities from continuing operations

 

 

(3,751

)

 

 

 

 

(550

)

 

 

 

 

(201

)

Income attributable to common stockholders from continuing operations

 

$

 

78,998

 

 

 

$

 

15,369

 

 

 

$

 

3,330

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

Weighted-average basic shares outstanding

 

 

80,171

 

 

 

 

 

77,494

 

 

 

 

 

76,102

 

Weighted-average diluted shares outstanding (1)

 

 

80,171

 

 

 

 

 

77,494

 

 

 

 

 

76,102

 

Basic and diluted earnings per share from continuing operations

 

$

0.99

 

 

 

$

 

0.20

 

 

 

$

 

0.04

 
(1)
For the periods presented, all potentially dilutive securities for Exzeo were excluded from Exzeo's diluted earnings per share computation because their (i) effect would be anti-dilutive, (ii) exercise prices was "out-of-the-money," or (iii) contingent exercise conditions were unsatisfied. Refer to Note 1. Organization and Summary of Significant Accounting Policies for additional information.

Basic and Diluted Earnings per Share from Discontinued Operations

 

 

December 31,

 

(in thousands, except per share amounts)

 

2024

 

 

 

2023

 

Numerator:

 

 

 

 

 

 

 

Income from discontinued operations, after tax

 

$

 

19,253

 

 

 

$

 

8,561

 

Less: Income attributable to participating securities from discontinued operations

 

 

 

(667

)

 

 

 

 

(486

)

Income attributable to common stockholders from discontinued operations

 

$

 

18,586

 

 

 

$

 

8,075

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

Weighted-average basic shares outstanding

 

 

 

77,494

 

 

 

 

 

76,102

 

Weighted-average diluted shares outstanding (1)

 

 

 

77,494

 

 

 

 

 

76,102

 

Basic and diluted earnings per share from discontinued operations

 

$

 

0.24

 

 

 

$

 

0.11

 
(1)
For the periods presented, all potentially dilutive securities for Exzeo were excluded from Exzeo's diluted earnings per share computation because their (i) effect would be anti-dilutive, (ii) exercise price was "out-of-the-money," or (iii) contingent exercise conditions were unsatisfied. Refer to Note 1. Organization and Summary of Significant Accounting Policies for additional information.
v3.25.4
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement  
Summary of Company's Stock Option Plan Activity Stock option activity for the periods presented is as follows:

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

Weighted

 

 

Average

 

 

 

 

 

 

 

 

Average

 

 

Remaining

 

Aggregate

 

 

 

Number of

 

 

Exercise

 

 

Contractual

 

Intrinsic

 

(in thousands, except per share amounts and options)

 

Options

 

 

Price

 

 

Term (in years)

 

Value (1)

 

Outstanding as of January 1, 2023

 

 

6,450,000

 

 

$

23.00

 

 

8.75

 

$

—

 

Forfeited

 

 

(100,000

)

 

$

23.00

 

 

—

 

$

—

 

Outstanding as of December 31, 2023

 

 

6,350,000

 

 

$

23.00

 

 

7.75

 

$

—

 

Outstanding as of December 31, 2024

 

 

6,350,000

 

 

$

23.00

 

 

6.75

 

$

—

 

Outstanding as of December 31, 2025

 

 

6,350,000

 

 

$

23.00

 

 

5.75

 

$

7,938

 

Exercisable as of December 31, 2025 (2)

 

 

6,350,000

 

 

$

23.00

 

 

5.75

 

$

7,938

 

 

(1)
Aggregate intrinsic value at year end represents the difference between the Company’s closing stock price of $24.25 on December 31, 2025 and the exercise price of outstanding stock options.
(2)
Included in the stock options presented as exercisable are 6,000,000 options that are non-exercisable without HCI board of director approval.
Summary of Stock-Based Compensation Expense Related to Stock Options Stock-based compensation expense related to stock options is as follows:

 

 

 

December 31,

 

 

2025

 

 

2024

 

 

2023

 

Stock-based compensation expense (1)

 

$

1,040

 

 

$

2,045

 

 

$

1,767

 

Deferred tax benefit (2)

 

$

—

 

 

$

103

 

 

$

101

 

Unrecognized compensation expense (end of period) (3)

 

$

—

 

 

$

1,040

 

 

$

3,086

 

 

(1)
Recorded within Selling, general and administrative expenses in the Consolidated Statements of Income.
(2)
Recorded as an Income tax benefit in the Consolidated Statements of Income
(3)
Represents unrecognized stock-based compensation costs related to nonvested stock options and is reflected within Additional-paid-in capital in the Consolidated Balance Sheets.

Stock-based compensation expense related to restricted stock awards is as follows:

 

 

 

December 31,

 

 

2025

 

 

2024

 

 

2023

 

Stock-based compensation expense (1)

 

$

1,562

 

 

$

1,221

 

 

$

1,160

 

Deferred tax benefit (2)

 

$

294

 

 

$

334

 

 

$

172

 

Unrecognized compensation expense (end of period) (3)

 

$

11,747

 

 

$

8,455

 

 

$

1,352

 

 

(1)
Recorded within Cost of revenue and Research and development, and Selling, general and administrative expenses in the Consolidated Statements of Income.
(2)
Recorded as an Income tax benefit in the Consolidated Statements of Income.
(3)
Represents unrecognized stock-based compensation costs related to nonvested restricted stock awards and is reflected within Additional paid-in-capital in the Consolidated Balance Sheets. The remaining compensation expense is expected to be recognized over a weighted average period of approximately 4.6 years.
Summary of Activity Related to Nonvested Restricted Stock Awards

Nonvested restricted stock award activity for the periods presented is as follows:

 

 

 

Number of

 

 

Weighted

 

 

 

Restricted

 

 

Average

 

 

 

Stock

 

 

Grant Date

 

 

Awards

 

 

Fair Value

 

Balance as of January 1, 2023

 

 

5,275,393

 

 

$

0.83

 

Vested

 

 

(449,605

)

 

$

2.81

 

Forfeited

 

 

(592,545

)

 

$

0.75

 

Nonvested as of December 31, 2023

 

 

4,233,243

 

 

$

0.63

 

Granted

 

 

2,793,900

 

 

$

3.00

 

Vested

 

 

(2,881,986

)

 

$

0.73

 

Forfeited

 

 

(24,983

)

 

$

1.74

 

Nonvested as of December 31, 2024

 

 

4,120,174

 

 

$

2.16

 

Granted

 

 

321,020

 

 

$

16.38

 

Vested

 

 

(1,771,275

)

 

$

1.03

 

Forfeited

 

 

(128,326

)

 

$

3.16

 

Nonvested as of December 31, 2025

 

 

2,541,593

 

 

$

4.68

 
v3.25.4
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Summary of Segment Information Reconciled to Consolidated Statements of Income

The consolidated revenue, significant expense categories regularly reviewed by the CODM, and net income from continuing operations for the period indicated is as follows:

 

 

 

Years Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Revenue

 

$

216,980

 

 

$

133,948

 

 

$

88,333

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

Policy commission and related expenses

 

 

43,724

 

 

 

39,013

 

 

 

36,837

 

Outsourced claims fees

 

 

11,167

 

 

 

13,779

 

 

 

7,700

 

Direct personnel expense

 

 

17,122

 

 

 

13,422

 

 

 

13,802

 

Other operating expenses

 

 

11,532

 

 

 

12,298

 

 

 

10,825

 

Depreciation and amortization

 

 

2,412

 

 

 

2,227

 

 

 

1,897

 

Gross profit

 

 

131,023

 

 

 

53,209

 

 

 

17,272

 

Operating expenses

 

 

 

 

 

 

 

 

 

Selling, general and administrative:

 

 

 

 

 

 

 

 

 

Personnel cost

 

 

12,058

 

 

 

5,716

 

 

 

5,429

 

Other operating expenses

 

 

3,666

 

 

 

2,627

 

 

 

2,469

 

Research and development

 

 

8,830

 

 

 

6,514

 

 

 

6,528

 

Depreciation and amortization

 

 

479

 

 

 

335

 

 

 

292

 

Total operating expenses

 

 

25,033

 

 

 

15,192

 

 

 

14,718

 

Operating income

 

 

105,990

 

 

 

38,017

 

 

 

2,554

 

Investment income

 

 

4,302

 

 

 

548

 

 

 

52

 

Interest expense

 

 

—

 

 

 

(3,329

)

 

 

(1,723

)

Income before taxes

 

$

110,292

 

 

$

35,236

 

 

$

883

 

Income tax expense

 

 

27,543

 

 

 

9,168

 

 

 

(12,018

)

Net income

 

$

82,749

 

 

$

26,068

 

 

$

12,901

 
v3.25.4
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment    
Allowance for credit losses $ 0 $ 0
Financial assets or liabilities measured at fair value 0 0
Outstanding debt 0 $ 0
Unpaid qualifying offering costs 382,000  
Unrecognized tax benefits 0  
IPO    
Property, Plant and Equipment    
Underwriting discounts and commissions 11,760,000  
Other qualifying costs $ 1,486,000  
Minimum    
Property, Plant and Equipment    
Lease term [1],[2] 3 years  
Requisite service period 3 years  
Maximum    
Property, Plant and Equipment    
Lease term [1],[2] 10 years  
Requisite service period 6 years  
[1] Includes rent escalation provisions.
[2] Includes variable lease payments.
v3.25.4
Organization and Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Detail)
Dec. 31, 2025
Computer hardware and purchased software  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property and equipment 3 years
Internally developed software  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property and equipment 7 years
Office furniture and equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property and equipment 3 years
Office furniture and equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property and equipment 7 years
Leasehold Improvements  
Property, Plant and Equipment [Line Items]  
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] us-gaap:UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember
v3.25.4
Discontinued Operations - Additional Information (Details)
$ / shares in Units, $ in Thousands
 6 Months Ended 12 Months Ended
Jul. 01, 2024
USD ($)
Notes
$ / shares
shares
Dec. 31, 2024
USD ($)
$ / shares
shares
Dec. 31, 2025
USD ($)
$ / shares
shares
Dec. 31, 2024
USD ($)
$ / shares
shares
Dec. 31, 2023
USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Common stock, shares issued | shares   82,810,089 90,926,720 82,810,089  
Common stock, par value per share | $ / shares   $ 0.001 $ 0.001 $ 0.001  
Extinguishment of notes payable     $ 0 $ 155,000 $ 0
Repayments of long term debt     0 2,994 9
Stockholders' equity, period increase (decrease)       (884)  
TTIC, net assets $ 601,983        
Revenue [1]     216,980 133,948 88,333 [2]
TTIC          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Proceeds from fees received   $ 716 1,979    
TTIC | Discontinued Operations          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Revenue     137,207 121,633 82,924
Proceeds from fees received   $ 78,852 125,216    
Selling, General and Administrative Expenses | Chief Executive Officer          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Stock-based compensation expense       1,087  
Discontinued Operations, Disposed of by Sale          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Shares, exchanged | shares 2,500,000        
Common stock, par value per share | $ / shares $ 1        
Promissory notes issued | Notes 2        
Extinguishment of notes payable $ 155,000     155,000  
Debt instrument, principal balance 117,994        
Stockholders' equity, period increase (decrease) (884)        
TTIC, net assets 155,884        
Discontinued Operations, Disposed of by Sale | Promissory Note          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Repayments of long term debt $ 2,994        
Interest rate (in percent) 2.00%        
Maturity Date Jun. 01, 2025        
Debt instrument, principal amount $ 40,000        
Majority Shareholder | Discontinued Operations, Disposed of by Sale | Promissory Note          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Aggregate principal amount of promissory notes $ 37,006        
TTIC | Selling, General and Administrative Expenses          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Allocated corporate cost     $ 1,746 $ 2,500 $ 3,472
[1] Amounts include revenues earned from related parties of $214,611, $133,448 and $88,333 for the years ended December 31, 2025, 2024 and 2023, respectively. Refer to Note 3. Revenue and Note 6. Related Party Transactions for additional information.
[2] The Company waived $15,000 of management fees during 2023 related to its MGA agreement with TTIC, which was a wholly owned subsidiary until July 1, 2024. The waived fees were excluded from Revenue in the Consolidated Statements of Income
v3.25.4
Discontinued Operations - Summary of Major Classes of Assets and Liabilities (Details)
$ in Thousands
Jul. 01, 2024
USD ($)
Assets  
Cash and cash equivalents $ 58,774
Premiums receivable, net 18,835
Reinsurance recoverable, net 112,242
Deferred policy acquisition costs 23,133
Prepaid reinsurance premiums 17,899
Investments 333,364
Other assets 37,736
TTIC, net assets 601,983
Liabilities  
Losses and loss adjustment expenses 231,057
Unearned premiums 212,377
Other liabilities 2,665
Total liabilities $ 446,099
v3.25.4
Discontinued Operations - Summary of Major Classes of Line Items Constituting Income from Discontinued Operation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]      
Gross premium earned   $ 210,803 $ 348,310
Premiums ceded   (58,943) (122,501)
Investment and other income   9,542 13,812
Loss and loss adjustments expense   (87,219) (153,876)
Policy acquisition costs   (45,356) (71,316)
Other operating expenses   (2,973) (2,899)
Income from discontinued operations, before taxes $ 0 25,854 11,530
Income tax expense from discontinued operations 0 6,601 2,969
Income from discontinued operations, after tax $ 0 $ 19,253 $ 8,561
v3.25.4
Revenue - Summary of Revenue Disaggregated by Service Type (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
 [2]
Disaggregation of Revenue [Line Items]      
Revenue [1] $ 216,980 $ 133,948 $ 88,333
Underwriting and Management Services      
Disaggregation of Revenue [Line Items]      
Revenue 176,368 95,373 61,410
Claim Services      
Disaggregation of Revenue [Line Items]      
Revenue 31,154 30,777 19,911
Other Technology Services      
Disaggregation of Revenue [Line Items]      
Revenue $ 9,458 $ 7,798 $ 7,012
[1] Amounts include revenues earned from related parties of $214,611, $133,448 and $88,333 for the years ended December 31, 2025, 2024 and 2023, respectively. Refer to Note 3. Revenue and Note 6. Related Party Transactions for additional information.
[2] The Company waived $15,000 of management fees during 2023 related to its MGA agreement with TTIC, which was a wholly owned subsidiary until July 1, 2024. The waived fees were excluded from Revenue in the Consolidated Statements of Income
v3.25.4
Revenue - Summary of Revenue Disaggregated by Service Type (Parenthetical) (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
USD ($)
Disaggregation of Revenue [Abstract]  
Management fee waived $ 15,000
v3.25.4
Revenue - Summary of Revenue Disaggregated by Timing of Recognition (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue      
Revenue [1] $ 216,980 $ 133,948 $ 88,333 [2]
Point in Time      
Disaggregation of Revenue      
Revenue 94,645 63,373 35,933
Over Time      
Disaggregation of Revenue      
Revenue $ 122,335 $ 70,575 $ 52,400
[1] Amounts include revenues earned from related parties of $214,611, $133,448 and $88,333 for the years ended December 31, 2025, 2024 and 2023, respectively. Refer to Note 3. Revenue and Note 6. Related Party Transactions for additional information.
[2] The Company waived $15,000 of management fees during 2023 related to its MGA agreement with TTIC, which was a wholly owned subsidiary until July 1, 2024. The waived fees were excluded from Revenue in the Consolidated Statements of Income
v3.25.4
Revenue - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Revenue [1] $ 216,980 $ 133,948 $ 88,333 [2]
Receivables from related parties 13,326 2,025  
Accounts receivable 2,906 0  
Remaining performance obligations 74,460 55,576  
Current contract liabilities 70,893 47,210  
Non-current contract liabilities 3,567 8,366  
Contract liability (77,169) (33,185)  
Underwriting and Management Services      
Disaggregation of Revenue [Line Items]      
Revenue 176,368 95,373 61,410 [2]
Underwriting and Management Services | Dark Horse      
Disaggregation of Revenue [Line Items]      
Revenue 1,750 500  
Accounts receivable 875 0  
Other Technology Services      
Disaggregation of Revenue [Line Items]      
Revenue 9,458 7,798 7,012 [2]
Other Technology Services | Catastrophe      
Disaggregation of Revenue [Line Items]      
Revenue $ 9,422 $ 5,992 $ 5,232
Maximum | Other Technology Services | Catastrophe      
Disaggregation of Revenue [Line Items]      
Performance obligation, remaining term 5 years    
Minimum | Other Technology Services | Catastrophe      
Disaggregation of Revenue [Line Items]      
Performance obligation, remaining term 4 years    
[1] Amounts include revenues earned from related parties of $214,611, $133,448 and $88,333 for the years ended December 31, 2025, 2024 and 2023, respectively. Refer to Note 3. Revenue and Note 6. Related Party Transactions for additional information.
[2] The Company waived $15,000 of management fees during 2023 related to its MGA agreement with TTIC, which was a wholly owned subsidiary until July 1, 2024. The waived fees were excluded from Revenue in the Consolidated Statements of Income
v3.25.4
Revenue - Summary of Chanegs in Contract Liabilities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract]    
Beginning balance $ 55,576 $ 40,080
Additions (billings, considerations received) 139,361 78,477
Revenue recognized related to beginning balance (43,308) (29,796)
Revenue recognized related to current period additions (77,169) (33,185)
Contract with Customer Liability $ 74,460 $ 55,576
v3.25.4
Revenue - Summary of Changes in Contract Cost Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract]    
Beginning balance $ 9,529 $ 6,446
Additions 3,910 11,199
Cost recognized (7,599) (8,116)
Ending balance $ 5,840 $ 9,529
v3.25.4
Comprehensive Income - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Other comprehensive income, net of Tax $ 0 $ 230 $ 3,160
v3.25.4
Comprehensive Income - Schedule of Components of Other Comprehensive Income (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Unrealized gain (losses) on fixed maturity securities , Beginning balance $ (1,573) $ (1,803) $ (4,963)
Net unrealized gains arising during the period 0 307 2,547
Deferred income taxes   (77) 601
Reclassification adjustment for net realized losses 0 0 10
Tax effect on reclassification   0 2
Other comprehensive income $ 0 230 3,160
Unrealized gain (losses) on fixed maturity securities , Ending balance   (1,573) (1,803)
Completion of TTIC disposition [1]   1,573 0
Balance at the end of the period, post to disposition of TTIC   $ 0 $ (1,803)
[1] This amount relates to the disposal of TTIC. Refer to Note 2. Discontinued Operations for additional information.
v3.25.4
Concentrations of Risk - Additional Information (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
Customer
Dec. 31, 2024
USD ($)
Customer
Dec. 31, 2023
USD ($)
Customer
Concentration Risk [Line Items]      
Accounts receivable $ 2,906 $ 0  
Total Revenue | Customer Concentration | Customer One      
Concentration Risk [Line Items]      
Customer | Customer   1 1
Concentration risk, percentage   91.00% 92.10%
Total Revenue | Customer Concentration | Two Customers      
Concentration Risk [Line Items]      
Customer | Customer 2    
Concentration risk, percentage 93.50%    
Accounts Receivable | Customer Concentration | Customer One      
Concentration Risk [Line Items]      
Accounts receivable   $ 543 $ 1,025
Accounts Receivable | Customer Concentration | Customer      
Concentration Risk [Line Items]      
Concentration risk, percentage   10.00% 10.00%
Accounts Receivable | Customer Concentration | Two Customers      
Concentration Risk [Line Items]      
Concentration risk, percentage 10.00%    
Accounts receivable $ 10,665    
v3.25.4
Related Party Transactions - Additional Information (Details)
 12 Months Ended
Jul. 04, 2024
Jul. 01, 2024
USD ($)
Notes
Jan. 22, 2024
USD ($)
Feb. 05, 2023
Jan. 01, 2023
Dec. 21, 2022
USD ($)
Jun. 01, 2022
USD ($)
Jan. 01, 2022
Dec. 22, 2021
USD ($)
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Related Party Transaction                        
Revenue [1]                   $ 216,980,000 $ 133,948,000 $ 88,333,000 [2]
Receivables from related parties                   13,326,000 2,025,000  
Debt instrument, issued, principal                   0 2,994,000 9,000
Interest expense                   0 3,329,000 1,723,000
TTIC, net assets   $ 601,983,000                    
Extinguishment of notes payable                   0 155,000,000 0
Sale of discontinued operations, net of tax                     (884,000)  
Office Lease                        
Related Party Transaction                        
Payable to related parties                   0 0  
Office Lease | Cost of Revenue and Selling, General and Administrative Expenses                        
Related Party Transaction                        
Lease expense                   1,530,000 1,508,000 1,488,000
Discontinued Operations, Disposed of by Sale                        
Related Party Transaction                        
TTIC, net assets   155,884,000                    
Debt instrument, principal balance   $ 117,994,000                    
Promissory notes issued | Notes   2                    
Extinguishment of notes payable   $ 155,000,000                 155,000,000  
Sale of discontinued operations, net of tax   (884,000)                    
Underwriting and Management Services                        
Related Party Transaction                        
Revenue                   176,368,000 95,373,000 61,410,000 [2]
Other Technology Services                        
Related Party Transaction                        
Revenue                   9,458,000 7,798,000 7,012,000 [2]
Other Technology Services | Catastrophe                        
Related Party Transaction                        
Revenue                   9,422,000 5,992,000 5,232,000
Receivable from related parties                   232,000 757,000  
Other Technology Services | Catastrophe | Contract Liabilities                        
Related Party Transaction                        
Unearned revenue                   15,096,000 17,286,000  
Promissory Note | Discontinued Operations, Disposed of by Sale                        
Related Party Transaction                        
Debt instrument, principal amount   $ 40,000,000                    
Interest rate (in percent)   2.00%                    
Maturity Date   Jun. 01, 2025                    
Debt instrument, issued, principal   $ 2,994,000                    
TTIC                        
Related Party Transaction                        
Receivable from related parties                   9,516,000 157,000  
Payable to related parties                   0 544,000  
TTIC | Selling, General and Administrative Expenses                        
Related Party Transaction                        
Allocated corporate cost                   1,746,000 2,500,000 3,472,000
TTIC | Contract Liabilities                        
Related Party Transaction                        
Unearned revenue                   32,875,000 35,118,000  
TTIC | Underwriting and Management Services                        
Related Party Transaction                        
Revenue                   132,790,000 119,022,000 81,316,000
Core Risk Managers, LLC                        
Related Party Transaction                        
Receivable from related parties                   68,000 963,000  
Core Risk Managers, LLC | Contract Liabilities                        
Related Party Transaction                        
Unearned revenue                   1,799,000 3,172,000  
Core Risk Managers, LLC | Underwriting and Management Services                        
Related Party Transaction                        
Revenue                   4,957,000 6,625,000 0
Tailrow Risk Managers, LLC                        
Related Party Transaction                        
Receivables from related parties                   501,000    
Tailrow Risk Managers, LLC | Contract Liabilities                        
Related Party Transaction                        
Unearned revenue                   5,097,000    
Tailrow Risk Managers, LLC | Underwriting and Management Services                        
Related Party Transaction                        
Revenue                   7,261,000    
Receivable from related parties                     0  
HCM                        
Related Party Transaction                        
Receivable from related parties                   946,000    
HCM | Contract Liabilities                        
Related Party Transaction                        
Unearned revenue                   18,181,000    
HCM | Underwriting and Management Services                        
Related Party Transaction                        
Revenue                   60,131,000    
HCM | Other Technology Services                        
Related Party Transaction                        
Revenue                   37,000 1,806,000 1,780,000
Omega Insurance Agency, Inc.                        
Related Party Transaction                        
Accounts payable outstanding                   12,000 9,000  
Omega Insurance Agency, Inc. | Cost of Revenue                        
Related Party Transaction                        
Commission expense                   111,000 112,000 104,000
Griston Claim Services, Inc. | Cost of Revenue                        
Related Party Transaction                        
Field adjuster services expense                   1,903,000 4,313,000 2,231,000
Griston Claim Management, Inc.                        
Related Party Transaction                        
Payable to related parties                   777,000 429,000  
Griston Claim Management, Inc. | Cost of Revenue                        
Related Party Transaction                        
Claim services expense                   13,676,000 16,147,000 11,679,000
HCI                        
Related Party Transaction                        
Fair value of the warrants     $ 3,386,000                  
Stock-based compensation expense                   34,000 113,000  
HCI | Tampa Florida                        
Related Party Transaction                        
Lease expiration date         Dec. 31, 2032              
HCI | Ocala Florida                        
Related Party Transaction                        
Lease expiration date Dec. 31, 2027             Dec. 31, 2024        
HCI | Discontinued Operations, Disposed of by Sale                        
Related Party Transaction                        
Promissory notes issued | Notes   2                    
Sale of discontinued operations, net of tax   $ (884,000)                    
HCI | Promissory Note                        
Related Party Transaction                        
Debt instrument, principal amount     $ 100,000,000     $ 15,000,000 $ 2,994,000   $ 40,000,000      
Interest rate (in percent)     5.50%     5.50% 3.25%   2.00%      
Maturity Date     Jan. 22, 2029 Jun. 30, 2025   Dec. 21, 2025 Jun. 01, 2025   Jun. 30, 2023      
Interest expense                   $ 0 $ 3,329,000 $ 1,723,000
HCI | Promissory Note | Discontinued Operations, Disposed of by Sale                        
Related Party Transaction                        
Debt instrument, principal amount   $ 40,000,000                    
Interest rate (in percent)   2.00%                    
Maturity Date   Jun. 01, 2025                    
Aggregate principal amount of promissory notes   $ 37,006,000                    
[1] Amounts include revenues earned from related parties of $214,611, $133,448 and $88,333 for the years ended December 31, 2025, 2024 and 2023, respectively. Refer to Note 3. Revenue and Note 6. Related Party Transactions for additional information.
[2] The Company waived $15,000 of management fees during 2023 related to its MGA agreement with TTIC, which was a wholly owned subsidiary until July 1, 2024. The waived fees were excluded from Revenue in the Consolidated Statements of Income
v3.25.4
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment    
Property and equipment, gross $ 24,609 $ 21,827
Accumulated depreciation and amortization (13,947) (11,075)
Property and equipment, net 10,662 10,752
Computer software    
Property, Plant and Equipment    
Property and equipment, gross 19,879 17,882
Computer hardware    
Property, Plant and Equipment    
Property and equipment, gross 2,091 1,669
Office furniture and equipment    
Property, Plant and Equipment    
Property and equipment, gross 1,294 555
Capital projects in progress    
Property, Plant and Equipment    
Property and equipment, gross 711 1,071
Leasehold improvements    
Property, Plant and Equipment    
Property and equipment, gross 587 542
Other    
Property, Plant and Equipment    
Property and equipment, gross $ 47 $ 108
v3.25.4
Property and Equipment, Net - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]      
Depreciation and amortization $ 479 $ 335 $ 292
Property and equipment      
Property, Plant and Equipment [Line Items]      
Depreciation and amortization $ 2,934 $ 2,361 $ 2,202
v3.25.4
Leases - Schedule of ROU Assets and Operating Lease Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Operating Lease, Liability [Abstract]    
Operating lease right-of-use assets $ 6,884 $ 8,052
Operating lease liabilities - current 2,413 2,132
Operating lease liabilities - non-current 4,832 6,219
Total liabilities $ 7,245 $ 8,351
v3.25.4
Leases - Schedule of Operating Leases (Details)
 12 Months Ended
Dec. 31, 2025
Minimum  
Operating lease:  
Initial Term 3 years [1],[2]
Maximum  
Operating lease:  
Initial Term 10 years [1],[2]
Office space [Member]  
Operating lease:  
Renewal Option true [1],[2]
Office Equipment [Member]  
Operating lease:  
Initial Term 5 years 3 months
[1] Includes rent escalation provisions.
[2] Includes variable lease payments.
v3.25.4
Leases - Schedule of Lease Liability Maturities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
2026 $ 1,708  
2027 1,760  
2028 1,145  
2029 1,160  
2030 1,197  
Thereafter 2,276  
Total undiscounted liabilities 9,246  
Less: interest and foreign taxes 2,001  
Total operating lease liabilities $ 7,245 $ 8,351
v3.25.4
Leases - Schedule of Components of Lease Cost and Additional Lease Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]      
Operating lease costs [1] $ 1,695 $ 1,701 $ 1,290
Finance lease cost [1] 0 0 9
Total lease costs 1,695 1,701 1,299
Cash paid for amounts included in the measurement of lease liabilities:      
Operating cash flows – operating leases 1,623 1,637 1,503
Financing cash flows - finance leases $ 0 $ 0 $ 9
Weighted Information Operating Lease Information      
Operating leases (in years) 6 years 6 years 9 months 18 days  
Operating leases 6.30% 6.20%  
[1] Included within Cost of revenue and Selling, general and administrative expenses on the Consolidated Statements of Income.
v3.25.4
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current:      
Federal $ 25,990 $ 5,976 $ (5,079)
State 6,440 1,583 (1,274)
Foreign 209 84 67
Total current income tax expense (benefit) 32,639 7,643 (6,286)
Deferred:      
Deferred Federal Income Tax expense (benefit) (4,946) 1,216 (4,691)
State (160) 312 (1,042)
Foreign 10 (3) 1
Total deferred income taxes (5,096) 1,525 (5,732)
Income tax expense (benefit) from continuing operations $ 27,543 $ 9,168 $ (12,018)
v3.25.4
Income Taxes - Schedule of Total Taxes Paid Net of Refunds (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
 [1]
Income Tax Disclosure [Abstract]      
Federal $ 26,176 $ 2,574 $ (3,152)
State 5,931 715 (786)
Foreign 198 129 145
Discontinued operations 0 10,530 (6,739)
Cash paid for income taxes, net of refunds [2] $ 32,305 $ 13,948 $ (10,532)
[1] The cash paid for income taxes, net of refunds, represents a 2023 net income tax refund paid from HCI pursuant to the tax allocation agreement. The Company had a taxable loss for the year, resulting in an enforceable right to receive tax benefits for losses incurred.
[2] The refunds for the years ended December 31, 2025, 2024 and 2023 were $1,918, $313 and $11,398, respectively.
v3.25.4
Income Taxes - Schedule of Total Taxes Paid Net of Refunds (Details) (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Income tax refunds $ 1,918 $ 313 $ 11,398
v3.25.4
Income Taxes - Schedule of Income Taxes Paid (Refunds) by Jurisdiction (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
State:      
State $ 5,931 $ 715 $ (786) [1]
Florida      
State:      
State $ 5,931 $ 715 $ (786)
[1] The cash paid for income taxes, net of refunds, represents a 2023 net income tax refund paid from HCI pursuant to the tax allocation agreement. The Company had a taxable loss for the year, resulting in an enforceable right to receive tax benefits for losses incurred.
v3.25.4
Income Taxes - Schedule of Company's Income Tax Expense (benefit) Differs From U.S. Federal Income Rate to Income From Continuing Operations Before Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Effective Income Tax Rate Reconciliation [Line Items]      
Income tax expense, federal statutory rate $ 23,161 $ 7,400 $ 185
U.S. Federal Statutory Tax Rate, Percent 21.00% 21.00% 21.00%
State income taxes, net of federal tax benefit [1] $ 4,411 $ 1,436 $ 82
State income taxes, net of federal tax benefit, Percent [1] 4.00% 4.10% 9.30%
Change in valuation allowances $ 0 $ 0 $ (12,806)
Change in valuation allowances, Percent 0.00% 0.00% (1450.30%)
Stock-based compensation $ 248 $ 49 $ 77
Stock-based compensation, in percent 0.20% 0.10% 8.80%
Executive compensation under 162(m) $ 698 $ 321 $ 292
Executive compensation under 162(m), Percent 0.70% 0.90% 33.00%
Restricted stock windfall tax benefit $ (1,192) $ (51) $ (24)
Restricted stock windfall tax benefit, Percent (1.10%) (0.10%) (2.70%)
Other $ 22 $ (22) $ 19
Other, in percent 0.00% (0.10%) 2.10%
Return to provision adjustment $ 0 $ 0 $ 95
Return to provision adjustment, in percent 0.00% 0.00% 10.80%
Income tax expense (benefit) from continuing operations $ 27,543 $ 9,168 $ (12,018)
Income tax expense (benefit), in percent 25.00% 26.00% (1361.00%)
Foreign Tax Jurisdiction      
Effective Income Tax Rate Reconciliation [Line Items]      
Return to provision adjustment $ 190 $ 0 $ 0
Return to provision adjustment, in percent 0.20% 0.00% 0.00%
Foreign Tax Jurisdiction | India      
Effective Income Tax Rate Reconciliation [Line Items]      
Statutory tax rate $ 5 $ 35 $ 62
Statutory tax rate, as a percent 0.00% 0.10% 7.00%
[1] State taxes in Florida made up a majority (greater than 50%) of the tax effect in this category.
v3.25.4
Income Taxes - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Taxes [Line Items]      
Unrecognized tax benefits $ 0    
Uncertain tax positions have material impact on the effective tax rate 0    
Unrecognized interest and penalties related to uncertain tax positions 0 $ 0 $ 0
Net operating loss carryforwards 0    
Intercompany deferred loss 1,208,000 544,000  
Valuation allowance $ 1,208,000 $ 544,000  
v3.25.4
Income Taxes - Components of Company's Deferred Income Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deferred tax assets:    
Stock-based compensation $ 227 $ 115
Unearned revenue 4,329 0
Accrued expenses 84 81
Intercompany deferred loss 1,208 544
Total deferred tax assets 5,848 740
Valuation allowance (1,208) (544)
Total deferred tax assets, net of valuation allowance 4,640 196
Deferred tax liabilities:    
Property and equipment - capitalized software (1,296) (878)
Prepaid expenses (369) (149)
Unearned revenue 0 (1,290)
Total deferred tax liabilities (1,665) (2,317)
Net deferred income tax asset $ 2,975  
Net deferred income tax liabilities   $ (2,121)
v3.25.4
Redeemable Series A Preferred Stock - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Jan. 22, 2024
Jul. 03, 2023
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2021
Class of Stock            
Preferred shares outstanding     0      
Proceeds from issuance of notes payable, related party     $ 0 $ 100,000 $ 0  
Warrants outstanding, in warrants 750,000          
Dividends on preferred stock       10,149 9,370  
HCI            
Class of Stock            
Fair value of the warrants $ 3,386          
Warrants expiring February 26, 2025            
Class of Stock            
Warrants outstanding, in warrants 300,000          
Warrant            
Class of Stock            
Warrants outstanding, in warrants 450,000          
Warrant | Warrants expiring December 31, 2026            
Class of Stock            
Warrants outstanding, in warrants 150,000          
Warrants Expiration Date Dec. 31, 2026          
Warrant | Warrants expiring December 31, 2027            
Class of Stock            
Warrants outstanding, in warrants 150,000          
Warrants Expiration Date Dec. 31, 2027          
Warrant | Warrants expiring December 31, 2028            
Class of Stock            
Warrants outstanding, in warrants 150,000          
Warrants Expiration Date Dec. 31, 2028          
Warrant | Warrants expiring February 26, 2025            
Class of Stock            
Warrants Expiration Date Feb. 26, 2025          
Series A Preferred Stock            
Class of Stock            
Par value (per share)           $ 0.001
Price per units           $ 10
Proceeds from issuance of stock           $ 100,000
Preferred stock, shares authorized     38,502,000      
Redemption $ 100,000     $ 100,000 $ 0  
Deemed dividend 96,695          
Redemption excess amount 102,923          
Dividends paid on redeemable preferred stock $ 2,923          
Series A-1 Preferred Stock            
Class of Stock            
Shares converted   1,000,000        
Preferred stock, shares issued   8,000,000       9,000,000
Preferred shares outstanding   8,000,000        
Series A-2 Preferred Stock            
Class of Stock            
Preferred stock, shares issued   2,000,000       1,000,000
Preferred shares outstanding   2,000,000        
Non-Voting Series A-2 Preferred Stock            
Class of Stock            
Preferred stock, shares authorized   1,000,000        
v3.25.4
Redeemable Series A Preferred Stock - Summary of Activity of Redeemable Preferred Stock (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Jan. 22, 2024
Temporary Equity        
Dividends paid on redeemable preferred stock $ 0 $ (2,923) $ (6,763)  
Series A Preferred Stock        
Temporary Equity        
Beginning Balance $ 0 96,160 93,553  
Accrued cash dividends   424 7,263  
Accretion - increasing dividend rate   111 2,107  
Adjustment to maximum redemption value   6,228 0  
Dividends paid on redeemable preferred stock   (2,923) (6,763)  
Redemption   (100,000) 0 $ (100,000)
Ending Balance   $ 0 $ 96,160  
v3.25.4
Earnings Per Share - Summary of Calculation of Basic and Diluted EPS (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Numerator:      
Income from continuing operations, after tax $ 82,749 $ 26,068 $ 12,901
Less: Dividends on preferred stock 0 (10,149) (9,370)
Less: Income attributable to participating securities from continuing operations (3,751) (550) (201)
Income attributable to common stockholders from continuing operations 78,998 15,369 3,330
Income from discontinued operations, after tax $ 0 19,253 8,561
Less: Income attributable to participating securities from discontinued operations   (667) (486)
Income attributable to common stockholders from discontinued operations   $ 18,586 $ 8,075
Denominator:      
Weighted-average basic shares outstanding 80,171 77,494 76,102
Weighted-average diluted shares outstanding [1] 80,171 77,494 [2] 76,102 [2]
Basic earnings per share from continuing operations $ 0.99 $ 0.2 $ 0.04
Diluted earnings per share from continuing operations 0.99 0.2 0.04
Basic earnings per share from discontinued operations 0 0.24 0.11
Diluted earnings per share from discontinued operations $ 0 $ 0.24 $ 0.11
[1] For the periods presented, all potentially dilutive securities for Exzeo were excluded from Exzeo's diluted earnings per share computation because their (i) effect would be anti-dilutive, (ii) exercise prices was "out-of-the-money," or (iii) contingent exercise conditions were unsatisfied. Refer to Note 1. Organization and Summary of Significant Accounting Policies for additional information.
[2] For the periods presented, all potentially dilutive securities for Exzeo were excluded from Exzeo's diluted earnings per share computation because their (i) effect would be anti-dilutive, (ii) exercise price was "out-of-the-money," or (iii) contingent exercise conditions were unsatisfied. Refer to Note 1. Organization and Summary of Significant Accounting Policies for additional information.
v3.25.4
Stock-Based Compensation - 2025 Omnibus Incentive Plan - Additional Information (Details) - 2025 Omnibus Incentive Plan [Member] - shares
Dec. 31, 2025
Nov. 04, 2025
Share-based Compensation Arrangement by Share-based Payment Award    
Shares available, future grant 9,768,530  
Shares, authorized   10,000,000
v3.25.4
Stock-Based Compensation - Stock Options - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award        
Aggregate intrinsic value of outstanding options [1] $ 7,938,000 $ 0 $ 0 $ 0
Stock options, contractual term 5 years 9 months 6 years 9 months 7 years 9 months 8 years 9 months
Restricted Stock        
Share-based Compensation Arrangement by Share-based Payment Award        
Unrecognized compensation expense (end of period) [2] $ 11,747,000 $ 8,455,000 $ 1,352,000  
Restricted Stock | Chief Executive Officer        
Share-based Compensation Arrangement by Share-based Payment Award        
Unrecognized compensation expense (end of period) $ 47,000      
Stock Options        
Share-based Compensation Arrangement by Share-based Payment Award        
Stock option, award requisite service period 4 years      
Stock options, contractual term 10 years      
[1] Aggregate intrinsic value at year end represents the difference between the Company’s closing stock price of $24.25 on December 31, 2025 and the exercise price of outstanding stock options.
[2] Represents unrecognized stock-based compensation costs related to nonvested restricted stock awards and is reflected within Additional paid-in-capital in the Consolidated Balance Sheets. The remaining compensation expense is expected to be recognized over a weighted average period of approximately 4.6 years.
v3.25.4
Stock-Based Compensation - Summary of Company's Stock Option Plan Activity (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward]        
Stock options, beginning balance 6,350,000 6,350,000 6,450,000  
Stock options, forfeited     (100,000)  
Stock options, ending balance 6,350,000 6,350,000 6,350,000 6,450,000
Exercisable, Number of Options [1] 6,350,000      
Outstanding, Beginning Balance, Weighted Average Exercise Price $ 23 $ 23 $ 23  
Forfeited, Weighted Average Exercise Price     23  
Outstanding, Ending Balance, Weighted Average Exercise Price 23 $ 23 $ 23 $ 23
Exercisable, Weighted-Average Exercise Price [1] $ 23      
Stock options, contractual term 5 years 9 months 6 years 9 months 7 years 9 months 8 years 9 months
Forfeited, contractual Term     0 years  
Exercisable, Weighted-Average Remaining Contractual Term [1] 5 years 9 months      
Stock options outstanding, aggregate intrinsic value [2] $ 7,938,000 $ 0 $ 0 $ 0
Forfeited, Aggregate Intrinsic Value [2]     $ 0  
Exercisable, Aggregate Intrinsic Value [1],[2] $ 7,938,000      
[1] Included in the stock options presented as exercisable are 6,000,000 options that are non-exercisable without HCI board of director approval
[2] Aggregate intrinsic value at year end represents the difference between the Company’s closing stock price of $24.25 on December 31, 2025 and the exercise price of outstanding stock options.
v3.25.4
Stock-Based Compensation - Summary of Company's Stock Option Plan Activity (Parenthetical) (Details)
Dec. 31, 2025
$ / shares
shares
Share-Based Payment Arrangement  
Stock price, per share | $ / shares $ 24.25
Stock options, non-exercisable | shares 6,000,000
v3.25.4
Stock-Based Compensation - Summary of Stock-Based Compensation Expense Related to Stock Options (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award      
Deferred tax benefit $ (5,096,000) $ 1,525,000 $ (5,732,000)
Stock Options      
Share-based Compensation Arrangement by Share-based Payment Award      
Stock-based compensation expense [1] 1,040,000 2,045,000 1,767,000
Deferred tax benefit [2] 0 103,000 101,000
Unrecognized compensation expense (end of period) [3] 0 1,040,000 3,086,000
Restricted Stock      
Share-based Compensation Arrangement by Share-based Payment Award      
Stock-based compensation expense [4] 1,562,000 1,221,000 1,160,000
Deferred tax benefit [5] 294,000 334,000 172,000
Unrecognized compensation expense (end of period) [6] $ 11,747,000 $ 8,455,000 $ 1,352,000
[1] Recorded within Selling, general and administrative expenses in the Consolidated Statements of Income.
[2] Recorded as an Income tax benefit in the Consolidated Statements of Income
[3] Represents unrecognized stock-based compensation costs related to nonvested stock options and is reflected within Additional-paid-in capital in the Consolidated Balance Sheets.
[4] Recorded within Cost of revenue and Research and development, and Selling, general and administrative expenses in the Consolidated Statements of Income.
[5] Recorded as an Income tax benefit in the Consolidated Statements of Income.
[6] Represents unrecognized stock-based compensation costs related to nonvested restricted stock awards and is reflected within Additional paid-in-capital in the Consolidated Balance Sheets. The remaining compensation expense is expected to be recognized over a weighted average period of approximately 4.6 years.
v3.25.4
Stock-Based Compensation - Summary of Stock-Based Compensation Expense Related to Stock Options (Parenthetical) (Details)
 12 Months Ended
Dec. 31, 2025
Restricted Stock | Additional Paid-In Capital  
Share-based Compensation Arrangement by Share-based Payment Award  
Recognition of remaining compensation expense over a weighted-average period 4 years 7 months 6 days
v3.25.4
Stock Based Compensation - Summary of Activity Related to Nonvested Restricted Stock Awards (Details) - Restricted Stock - $ / shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award      
Non-vested, beginning balance 4,120,174 4,233,243 5,275,393
Restricted stock, granted 321,020 2,793,900  
Restricted stock, vested (1,771,275) (2,881,986) (449,605)
Restricted stock, forfeitures (128,326) (24,983) (592,545)
Non-vested, ending balance 2,541,593 4,120,174 4,233,243
Non-vested, weighted average grant date fair value, beginning balance $ 2.16 $ 0.63 $ 0.83
Granted, Weighted-Average Grant Date Fair Value 16.38 3  
Restricted stock, granted, weighted average grant date fair value 1.03 0.73 2.81
Forfeited, Weighted-Average Grant Date Fair Value 3.16 1.74 0.75
Non-vested, weighted average grant date fair value, ending balance $ 4.68 $ 2.16 $ 0.63
v3.25.4
Stock-Based Compensation - Share Repurchases Related to Stock-Based Awards - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award      
Repurchase of Common Shares 0 7,277 83,415
Proceeds from repurchase of common shares   $ 13 $ 142
Additional compensation cost   $ 2 $ 29
v3.25.4
Stock-Based Compensation - Subsidiary Equity Plan - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
HCI    
Share-based Compensation Arrangement by Share-based Payment Award    
Stock-based compensation expense $ 34 $ 113
v3.25.4
Stockholders' Equity - Additional Information (Details) - shares
 12 Months Ended
Jan. 22, 2024
Dec. 31, 2025
Dec. 31, 2024
Class of Stock      
Common stock, shares authorized   184,000,000 184,000,000
Common stock, voting rights   Voting common stock entitles holders to one vote per share, while non-voting common stock carries no voting rights.  
Preferred shares outstanding   0  
Voting Common Stock      
Class of Stock      
Common stock, shares authorized   181,860,000  
Non-Voting Common Stock      
Class of Stock      
Common stock, shares authorized   2,140,000  
Series A Preferred Stock      
Class of Stock      
Number of preferred stock redeemed 10,000,000    
Preferred stock shares authorized to issue   38,502,000  
v3.25.4
Segment Information - Additional Information (Details)
 12 Months Ended
Dec. 31, 2025
Segment
Segment Reporting [Abstract]  
Segment Reporting, CODM, Individual Title and Position or Group Name [Extensible Enumeration] Chief Executive Officer [Member]
Segment Reporting, CODM, Profit (Loss) Measure, How Used, Description The CODM reviews financial information on a consolidated basis and evaluates performance based on consolidated revenue and net income.
Number of operating segments 1
Number of reportable segments 1
v3.25.4
Segment Information - Summary of Segment Information Reconciled to Consolidated Statements of Income (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information      
Revenue [1] $ 216,980 $ 133,948 $ 88,333 [2]
Cost of revenue:      
Policy commission and related expenses 43,724 39,013 36,837
Outsourced claims fees 11,167 13,779 7,700
Direct personnel expense 17,122 13,422 13,802
Other operating expenses 11,532 12,298 10,825
Depreciation and amortization 2,412 2,227 1,897
Gross profit 131,023 53,209 17,272
Operating expenses      
Personnel cost 12,058 5,716 5,429
Other operating expenses 3,666 2,627 2,469
Research and development 8,830 6,514 6,528
Depreciation and amortization 479 335 292
Total operating expenses 25,033 15,192 14,718
Operating income 105,990 38,017 2,554
Investment income 4,302 548 52
Interest expense 0 (3,329) (1,723)
Income from continuing operations, before taxes 110,292 35,236 883
Income tax expense 27,543 9,168 (12,018)
Net income $ 82,749 $ 26,068 $ 12,901
[1] Amounts include revenues earned from related parties of $214,611, $133,448 and $88,333 for the years ended December 31, 2025, 2024 and 2023, respectively. Refer to Note 3. Revenue and Note 6. Related Party Transactions for additional information.
[2] The Company waived $15,000 of management fees during 2023 related to its MGA agreement with TTIC, which was a wholly owned subsidiary until July 1, 2024. The waived fees were excluded from Revenue in the Consolidated Statements of Income
v3.25.4
Commitments and Contingencies - Additional Information (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Indemnification Obligations [Member]    
Lessee, Lease, Description [Line Items]    
Liabilities related to indemnification obligations $ 0 $ 0
Maximum    
Lessee, Lease, Description [Line Items]    
Initial Term [1],[2] 10 years  
Minimum    
Lessee, Lease, Description [Line Items]    
Initial Term [1],[2] 3 years  
[1] Includes rent escalation provisions.
[2] Includes variable lease payments.