Neptune Insurance Holdings Inc. Class A

Thank you for standing by. My name is Angela and I will be your conference operator today. At this time, I would like to welcome everyone to the Neptune Insurance Holdings first quarter earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one in your telephone keypad. If you would like to withdraw your question, Press star one again. Thank you. I would now like to turn the call over to Mr. John Carlin, Director of Corporate Development. You may begin.

Thank you and good afternoon. With me here today is Trevor Burgess, Chairman and CEO, Matt Duffy, President and Chief Risk Officer, and Jim Steiner, CFO and COO. Before we begin, I'd like to remind everyone that today's discussion will include forward-looking statements, including, among others, statements about our expectations for our future financial performance, growth opportunities, business strategy, market trends, and capital allocation plans. These statements are based on our current views and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. We direct you to our recent SEC filings for a full description of these risks. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. We will also reference certain non-GAAP financial measures. These measures should be considered only as supplements to their comparable GAAP measures. Additional information, including reconciliations of the non-GAAP measures to their most comparable GAAP measures, can be found in our earnings release at investors.neptuneflood.com and in our current report on Form 8K that was publicly filed with the SEC on April 22, 2026. And now I'd like to turn the call over to Trevor.

Good evening and thank you for joining us for Neptune's first quarter earnings call. Before we review the quarter, I wanted to talk about how excited I am by this moment in the history of technology. I was an investment banker during the first dot-com boom. I built one of the first technology-first banks and now am leading one of the first AI-native public companies. What AI has enabled in the last few months has far surpassed anything I've seen before. This is the power of the exponential. The Neptune team has the horse by the reins and is building something very special. People often ask how we think about AI at Neptune. The answer goes back to the very beginning. In 2018, when we hired our first engineers, I put a sign on the wall that said, no humans. Not because we don't value people, but because we wanted to build a system where technology could do what humans cannot, faster, more consistently, and at scale. What is now being described as AI native, we simply viewed as the right way to build from day one. That mindset continues to guide us today. We don't start with today's constraints and optimize around them. We start with where the world is going and build towards that future. And as the technology continues to evolve, the gap between Neptune and traditional insurance platforms is not narrowing. It is widening. AI also creates a significant opportunity to expand the market. Tens of millions of properties in the United States remain uninsured for flood risk. By using AI to improve risk awareness, simplify the buying process, and support agents with better tools, we believe we can meaningfully grow the insured base over time. That brings me to what we are seeing in the business today. Last quarter, I spoke about turning agents into what we call super agents. We are now seeing that come to life. Following quarter end, we launched in a beta release Atlas Plus, our agentic assistant for insurance agents. Atlas Plus can answer questions, generate sales materials, and interact directly with quotes in real time. Early feedback has been extremely strong, including examples of policies being sold directly as a result of these interactions. Over time, we expect Atlas Plus to become a core part of the sales workflow. Importantly, these capabilities are built on top of what we believe is one of our most important advantages, our proprietary data. Our platform has processed tens of millions of quotes and over a million policies, generating real-world underwriting, pricing, and behavioral data that continuously improves our models. We believe that data advantage will continue to compound over time and create a structural barrier to entry in an AI-driven market. From a financial perspective, the implications are equally important. In 2025, we operated at a 60% adjusted EBITDA margin. As AEI continues to reduce friction in distribution and automate workflows, we believe our current level is a floor and not a ceiling. Turning to the quarter, the first quarter of 2026 was a record first quarter for Neptune and reflected continued strength across the business. Highlights from Q1 include revenue of $37.8 million, a 29% increase year over year. Net income of $7.3 million with adjusted net income of $13.4 million. Adjusted EBITDA was $21.6 million. That's growth of 26%. Written premium was $86.7 million, driving 32% year over year premium and forced growth. And we had record first quarter new business sales. As a reminder, the first quarter is typically our lowest margin quarter due to seasonality. And this year, that effect is more pronounced as public company audit and compliance costs are front-end loaded in Q1. As a result, adjusted EBITDA margin in the quarter was approximately 57.1%. Importantly, this is a timing dynamic, not a structural change in the business, and we continue to expect full-year margins in the 60% to 61% range. Premium in force reached approximately $389 million at quarter end, and we look forward to celebrating our $400 million threshold shortly. As a reminder, Neptune operates as an asset-light MGA and takes no balance sheet risk. This allows us to scale efficiently while maintaining strong profitability. On a trailing 12 month basis, revenue per employee reached 2.8 million and adjusted EBITDA per employee reached 1.7 million, both record levels. To put our revenue per employee in context, do this calculation for other companies. This is how you can tell if a company is really AI native. In addition to our earnings results, today we announced that our board has approved a $100 million stock repurchase program. We expect to fund this program through free cash flow over the next two years. This is incremental to our previously announced plan to retire shares associated with RSU tax settlements. We view share repurchases as a high return use of capital given the strength of our cash generation and the scalability of our model. Stepping back, we believe our competitive position is defined by three core advantages, proprietary data and AI-driven underwriting, deep and expanding capacity relationships, and flexible technology enabled distribution. Together, these create a durable and widening moat. I'll now turn things over to Matt to walk through the business in more detail.