Exzeo Group, Inc. Leases Disclosure
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 |
|
|
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 |
|
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.