Exzeo Group, Inc.

Good afternoon and welcome to ESO Group's first quarter 2026 earnings call. My name is Angela and I will be your conference operator. At this time, all participants will be in the listen-only mode. Before we begin today's call, I would like to remind everyone that this conference is also being broadcast live via webcast and is available for webcast replay approximately four hours after the call through May 6, 2027 on the investor relations section of Exio Group's website at www.exio.com. I would now like to turn the call over to Bill Brumal, Vice President of Investor Relations. Bill, please go ahead.

Thank you and good afternoon. Welcome to Exxio Group's first quarter 2026 earnings call. To access today's webcast, please visit the investor information section of our corporate website at www.exxio.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 risk or uncertainties develop into actual events, these developments could have material adverse effects on the company's business, financial condition, and results of operations. Exeo Group disclaims all the obligations to update any forward-looking statements. Now, with that, I'd like to turn the call over to Suela Volku, Exeo's Chief Financial Officer.

Thank you, Bill. Good evening, everyone, and thank you for joining us for Exeo's first quarter earnings call. Exeo continues to deliver on its core objectives. Managed premium on the platform experienced another quarter of growth to $1.43 billion and exceeded our expectations. We delivered continued bottom line growth, including strong cash flows and a 49% adjusted EBITDA margin in the quarter. Pre-tax income in the quarter was over $27 million, an increase from $24 million in the prior year quarter and above our previous guidance range. Diluted earnings were $0.22 per share. For the first quarter, revenue increased to 56 million from 52 million in the prior year quarter, driven by the increase of managed premium on the platform. The growth in managed premium reflects continued diversification across the business, with managed premium from non-ACI clients reaching approximately $105 million, a positive step forward. Our adjusted EBITDA margin was over 49% in the quarter, and we believe our margins are repeatable in the future. This quarter reflected continued investment in growth initiatives and personnel, and as our model continues to expand, we expect to make additional investments going forward. Kevin will go into more detail in his remarks. A few additional highlights for the quarter. Our annual recurring revenue was $216 million in the first quarter, an increase from about $199 million in the prior quarter. Free cash flow generation remains strong. For the first quarter, we generated free cash flow of about $25 million, with net income of about $20 million that represents a free cash flow conversion rate of 123%. Turning to the balance sheet, we ended the year with $330 million of invested assets, which includes cash, cash equivalents, and fixed income securities, and we remain debt-free. Shareholder's equity increased to $275 million an increase from 254 million at the end of the year. Our shareholder equity is now eight times higher than it was a year ago. Excluding the IPO impact, it has more than tripled over the same period, reflecting strong underlying growth in the business. Before turning the call over to Kevin, I want to quickly touch on our guidance expectations. For the second quarter, we expect pre-tax income to be between 27 and 30 million. For the full year, 2026, we are leaving our guidance unchanged at between 115 million and 125 million. With respect to managed premium, we expect managed premium to remain stable in the second quarter at approximately 1.4 billion consistent with the anticipated timing of growth across our existing client base. We continue to expect managed premium of $1.55 billion at year-end 2026. In closing, we are very pleased with our strong start to 2026, as Exxon delivered another quarter marked by continued execution across premium expansion, revenue growth, solid profitability, and solid balance sheet. And with that, I will hand it over to Kevin, president of Exeo.