Exzeo Group, Inc.

Hello, everyone. Thank you for joining us and welcome to the XEO Group, Inc. second quarter 2026 earnings conference call. After today's prepared remarks, we will host a question and answer session. If you'd like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I would now like to hand the conference over to Bill Broomall, VP of Investor Relations. Bill, please proceed.

Thank you and good afternoon. Welcome to Exeo Group's second quarter 2026 earnings call. To access today's webcast, please visit the investor information section of our corporate website at www.exeo.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 and uncertainties develop in actual events, These developments could have a material adverse effect 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 Bulku, Exeo's Chief Financial Officer.

Thank you, Bill. Good evening, everyone, and thank you for joining us on Exeo's second quarter earnings call. Exeo continues down the path of strong execution and attractive financial results. Managed premium on the platform remains robust at $1.4 billion, and we delivered another quarter of attractive margins, including a 53% adjusted EBITDA margin in the quarter. Pre-tax income for the quarter was over $31 million, an increase from over $28 million in the prior quarter. These results were above the guidance we provided. Earnings per share for the quarter were $0.26, and year-to-date earnings per share were $0.48. For the second quarter, total revenue increased to $58 million, up from $56 million in the prior quarter, driven by the increase of managed premium on the platform. Excluding outsourcing claim fees, adjusted revenue increased by $4 million year-over-year to more than $56 million. Managed premium in the quarter was $1.4 billion, an increase from $1.2 billion in the prior quarter. Given the seasonality of growth for our clients, managed premiums were in line with expectations. Our adjusted EBITDA margin was over 53% in the quarter, and we believe annual life margins above 50% are achievable for the foreseeable future. A few additional highlights for the quarter. Our annual recurring revenue was $211 million in the second quarter, an increase from $195 million in the prior quarter. Our balance sheet remains exceptionally strong. We ended the quarter with over $333 million of invested assets, which includes cash, cash equivalents, and fixed income securities. We remain debt-free and continue to maintain significant financial flexibility. Shareholder's equity increased to $288 million, an increase from $254 million at the end of the year. Next, I want to quickly touch on our guidance expectations. For the third quarter, we expect pre-tax income to be between $28 and $31 million, and we expect managed premium to be approximately $1.4 billion. Our guidance for the third quarter is consistent with the anticipated timing of growth across our existing client base. Our full year guidance remains unchanged. Before turning the call over to Kevin, I wanted to quickly touch on recent capital management actions. During the quarter, we repurchased over 726,000 shares of our common stock for approximately $10 million. Subsequent to the quarter, we repurchased an additional 107,000 shares which brings dollar repurchases to $12 million, completing the authorized share repurchase program. We continue to have tremendous confidence in the long-term outlook for our business. Given our asset-like model, high margins, debt-free balance sheet, significant cash on hand, and the momentum we are seeing across the business, we believe allocating less than one quarter's worth of earnings to repurchase shares at attractive valuations with a compelling use of capital. And with that, I will hand it over to Kevin, president of Exeo.