Neptune Insurance Holdings rises on strong guidance

Investing.com -- Neptune Insurance Holdings Inc (NYSE:NP) reported third quarter revenue of $44.4 million, a 31.2% increase YoY, as the company delivered robust growth and issued guidance that significantly exceeded analyst expectations. The flood insurance provider’s shares rose 1.4% in after-hours trading Wednesday.

The company reported earnings per share of $0.11 for the third quarter, while revenue matched the $44.4 million expected by analysts. Neptune’s net income decreased 4.8% to $11.5 million compared to $12.1 million in the same period last year, primarily due to $5 million in costs related to its Initial Public Offering (IPO).

Neptune’s guidance for fiscal 2026 substantially surpassed analyst expectations, with the company projecting revenue of $186-189 million versus the consensus estimate of $153.3 million. The company also forecast an Adjusted EBITDA margin of 60-61%.

"The excellent results delivered in Q3 showcase the scalability and efficiency of our model," said Trevor Burgess, Chairman and CEO. "Expanding distribution, record new business policy sales, strong renewal dynamics, and continued technology leverage helped produce 31% revenue growth, a 26% net income margin, and a 60% Adjusted EBITDA margin."

Written premiums increased 30.7% to $101.6 million compared to $77.7 million in the third quarter of 2024, while Adjusted EBITDA rose 28.6% to $26.7 million.

The company’s technology investments continue to drive operational leverage, with revenue per employee reaching $2.5 million for the trailing twelve months, up 28.9% from the prior corresponding period.

Neptune also reported strong customer retention, with a policy retention rate of 86.2% and a premium retention rate of 98.7% for the nine months ended September 30, representing increases of 2.8 and 1.9 percentage points respectively compared to the same period in 2024.

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