Exzeo Group, Inc.

Good afternoon and welcome to XCO's Group's fourth quarter 2025 earnings call. My name is Mark and I will be your conference operator. At this time, all participants will be in listen-only mode. Before we begin today's call, I would like to remind everyone that this conference call is being broadcast live via webcast and is available for webcast replay approximately four hours after the call through, February 25, 2027, on the Investor Relations section of XCO's Group's website at www.xeo.com. I would now like to turn the call over to Bill Brumo, Vice President of Investment Relations. Bill, please proceed.

Thank you, and good afternoon. Welcome to Exio Group's fourth quarter 2025 earnings call. To access today's webcast, please visit the investor information section of our corporate website at www.exio.com. Before we begin, I would like to take the opportunity to remind our listeners that today's presentation and responses to questions may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as anticipate, estimate, expect, intend, plan, and project, and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions, but rather are subject to various risks and uncertainties. Some of these risks and uncertainties are identified in the company's filings with the Securities and Exchange Commission. Should any risks or uncertainties develop into actual events, these developments could have material adverse effects on the company's business, financial condition, and results of operation. Exeo Group disclaims all the obligations to update any forward-looking statements. Now, with that, I would like to turn the call over to Suela Bolcu, Exeo's Chief Financial Officer.

Thank you, Bill. Good evening, everyone, and thank you for joining us for Exeo's fourth quarter earnings call. Exeo delivered another strong financial performance for the fourth quarter. Pre-tax income in the quarter was approximately $29 million and diluted earnings per share were 25 cents. For the full year, pre-tax income was over $110 million and diluted earnings per share were 99 cents. For the fourth quarter, revenue increased to 53 million, and for the full year, increased to 217 million. We booked the first non-ACI revenue during the quarter, and while the contribution from our two new clients was modest, they are growing and are expected to have managed premium on our platform of approximately 100 million by the end of the first quarter. Our adjusted EBITDA margins increased to over 54% in the fourth quarter and for the full year. There continues to be significant leverage in our operating model because we can add managed premium with very little incremental expense. I want to highlight a few other KPI metrics. Managed premium at the end of the fourth quarter were approximately $1.39 billion ahead of our expectations and up significantly from about $580 million last year. The other QPI metric that I wanted to highlight was our annual recurring revenue, which was $215 million in the fourth quarter, an increase from about $139 million in the prior year quarter. For the full year 2025, we generated strong free cash flow of about $97 million. With net income of about $83 million, that represents a free cash flow conversion rate of 117%. Moving to the balance sheet, we ended the year with $305 million cash and cash equivalent, and we continue to have no debt. Stockholders' equity increased 16-fold to $254 million. Before turning the call over to Kevin, we would like to provide a quick update on guidance and what we're currently expecting for the first quarter and the full year 2026, starting with pre-tax income. We expect pre-tax income to be between $23 and $26 million for the first quarter. For the full year 2026, We continue to expect pre-tax income to be between $116 million and $125 million. Next, managed premium. We expect managed premium to be over $1.4 billion by the end of the first quarter. Based on current momentum, we are raising our outlook for 2026 And we now expect managed premium to reach $1.55 billion by year-end. In closing, Exxio delivered another strong quarter, highlighted by continued growth in managed premium, expanding margins, and a solid debt-free balance sheet supported by a strong cash position. And with that, I will hand it over to Kevin, President of Exxio.