Exzeo Group, Inc. Segments Disclosure
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 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 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:
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|
Years Ended December 31, |
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|
2025 |
|
|
2024 |
|
|
2023 |
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Revenue |
|
$ |
216,980 |
|
|
$ |
133,948 |
|
|
$ |
88,333 |
|
Cost of revenue: |
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|
|
|
|
|
|
|
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|||
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 |
|
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.