Neptune Insurance Holdings Inc. Class A

Good morning and thank you for standing by. My name is Jean and I will be your conference operator today. At this time, I would like to welcome everyone to the Neptune Insurance Holdings Second Quarter Earnings Conference 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 on your telephone keypad. If you would like to withdraw your question, Press Star 1 again. Thank you. I would now like to turn the conference over to John Carlin, Director of Corporate Development. You may begin.

Thank you and good morning. 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. 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 July 21, 2026. Now, I'd like to turn the call over to Trevor.

Good morning and thank you for joining us for Neptune's second quarter earnings call. Let's start with the headline. This was the best quarter in Neptune's history and it wasn't close. Revenue came in at 55.9 million, up 33% year over year. Adjusted EBITDA hit 34.5 million, up 36% at a 62% margin. That's up 165 basis points from a year ago. premium in force reached $419 million, up 32%, and we now have over 316,000 policies in force, up 29%. And so summing it all up on a trailing 12-month basis, revenue per employee and adjusted EBITDA per employee both reached record new highs, $3 million and $1.8 million respectively. However you want to slice it, we grew across nearly every measure of this business. So what's driving it? I'd point to three things. First, we are seeing real momentum across our distribution network, both with agents who've been with us for years and with new partners we're bringing on. Second, the FEMA Review Council process has put a spotlight on the long-term status of the NFIP, and we think that's pushing more agents and their customers to take a serious look at private flood as the more durable option. I'd like to spend a moment on the FEMA Review Council's report because one of its recommendations is particularly exciting to us, and it's one FEMA can act on without any congressional action. We believe this single action could have the largest impact of any recommendation on our business. I recently wrote an editorial in The Hill that focused on telling the truth to Americans about their flood risk. Research confirms FEMA's current flood maps understate high risk properties by more than two thirds. If FEMA acts on the Council's recommendations to modernize the maps with data it already has, millions of properties now classified as low risk would move into mandatory purchase zones, giving homeowners accurate information and meaningfully expanding the mandatory purchase requirement for flood insurance. As Matt will mention, more than half of our sales are outside of these mandatory zones, but we'll still be thrilled to have more Americans know the truth about their flood risk. And third, our team has been executing at a pace I haven't seen before across nearly every part of this business all at once. We're adding to the core product, building entirely new products, completely redesigning the user interface, building Atlas Plus, growing our agent outreach, and many more. The fear that AI would replace insurance agents outright and that this would somehow be bad for Neptune. Here's what I'd say to that. First, even if that fear played out exactly as people worried, it still wouldn't be bad for us. Paying our agents is the single largest expense we have, and a world with less need for agent labor is a world with a better cost structure for Neptune, not a worse one. But second and more importantly, that's not actually the bet we are making. We don't think agents are going away. And we're not trying to build the AI that replaces them. We're building the AI that arms them. Last quarter, I talked about turning agents into what we call super agents. This quarter is what that looks like when it starts to work. Thank you so much for joining us. We have placed the best flood underwriter sitting side by side with our agents. The second piece goes live in the next few weeks. Instead of an agent staring at a blank screen wondering what to do next, Atlas Plus will hand them a ranked list of tasks with the single most valuable thing they could be doing right now as ranked by our data science team sitting at the top. then Atlas Plus does a lot of the work of getting that task done. We are not asking the more than 55,000 agents who have signed up for individual user accounts on our platform to go and build their own AI. We are building it for them. We're handing it to them. We are using AI to help our agents become super agents and to help the US close the massive flood insurance gap. Remember, there are over 100 million buildings in the US and only about 4 million flood policies. With that, I'll turn things over to Matt to walk us through the business in more detail. Thank you, Trevor.