Insurance and technology company HCI Group (NYSE: HCI) reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 52.1% year on year to $246.2 million. Its GAAP profit of $7.25 per share was 58.5% above analysts’ consensus estimates.

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Management Commentary“2025 was a very successful year for HCI, delivering record earnings and shareholder returns. In addition to our operating performance, HCI successfully executed the IPO of Exzeo, a leading technology platform,” said HCI Group Chairman and Chief Executive Officer Paresh Patel.

Company Overview

Starting as a Florida "take-out" insurer that assumed policies from the state-backed Citizens Property Insurance Corporation, HCI Group (NYSE: HCI) provides property and casualty insurance, primarily homeowners coverage, while leveraging proprietary technology to improve underwriting and claims processing.

Revenue Growth

In general, insurance companies earn revenue from three primary sources. The first is the core insurance business itself, often called underwriting and represented in the income statement as premiums earned. The second source is investment income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities. The third is fees from various sources such as policy administration, annuities, or other value-added services. Over the last five years, HCI Group grew its revenue at an incredible 23.7% compounded annual growth rate. Its growth surpassed the average insurance company and shows its offerings resonate with customers, a great starting point for our analysis.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. HCI Group’s annualized revenue growth of 27.9% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, HCI Group reported magnificent year-on-year revenue growth of 52.1%, and its $246.2 million of revenue beat Wall Street’s estimates by 3.8%.

Net premiums earned made up 91.2% of the company’s total revenue during the last five years, meaning HCI Group lives and dies by its underwriting activities because non-insurance operations barely move the needle.

Markets consistently prioritize net premiums earned growth over investment and fee income, recognizing its superior quality as a core indicator of the company’s underwriting success and market penetration.

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Book Value Per Share (BVPS)

Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float–premiums collected but not yet paid out–are invested, creating an asset base supported by a liability structure. Book value per share (BVPS) captures this dynamic by measuring these assets (investment portfolio, cash, reinsurance recoverables) less liabilities (claim reserves, debt, future policy benefits). BVPS is essentially the residual value for shareholders.

We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality because it reflects long-term capital growth and is harder to manipulate than more commonly-used metrics like EPS.

HCI Group’s BVPS grew at an incredible 25.4% annual clip over the last five years. BVPS growth has also accelerated recently, growing by 55% annually over the last two years from $33.36 to $80.13 per share.

Over the next 12 months, Consensus estimates call for HCI Group’s BVPS to grow by 13% to $76.25, solid growth rate.

Key Takeaways from HCI Group’s Q4 Results

We were impressed by how significantly HCI Group blew past analysts’ book value per share expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Zooming out, we think this was a good print with some key areas of upside. The stock remained flat at $165 immediately following the results.

HCI Group may have had a good quarter, but does that mean you should invest right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).