HCI Group
HCI Group's revenue rose 20.1% to $901 million in fiscal 2025. Its net margin was 33.2%, up from 14.7% a year earlier. Free cash flow was $441 million, up 34.5%. It paid out $21 million in dividends and buybacks, 5% of free cash flow. The diluted share count rose 1.5%.
Net margin is net income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on equity is net income as a share of shareholders' equity. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.
Charts show fiscal years, from the 10-K filings.
What HCI Group does
HCI Group mainly sells homeowners' property and casualty insurance. Florida is its main market, and it also sells in some other states in the northeast and southeast. Its insurance subsidiaries are Homeowners Choice Property & Casualty Insurance Company and TypTap Insurance Company.
It reports five segments: Insurance Operations, Exzeo, Reciprocal Exchange Operations, Real Estate, and Corporate and Other. Exzeo, a majority-owned subsidiary that went public in November 2025, sells insurance software and operations services, and HCI uses that software to find underwriting opportunities and handle claims. HCI also provides management services to reciprocal insurance exchanges that are owned by their policyholders, and a real estate group develops and runs commercial properties.
All of its revenue comes from the United States, mostly in Florida. It has a Bermuda captive reinsurance subsidiary that lets it keep some risk and lower the cost of outside reinsurance.
Its biggest risks, as it describes them
- Actual claim losses exceeding the reserves it has set aside.
- Failing to price the risks it insures accurately.
- Its heavy concentration in Florida homeowners insurance.
- Risk reduction and loss limiting methods that may not work.
- Conflicts of interest between HCI and Exzeo and its other stockholders.
Income statement
From fiscal 2016 to 2025, earnings per share grew 25.6% a year and net income 29.6% a year, as new shares raised the share count by 18% and diluted each share's earnings.
Returns on capital
Balance sheet
Five years at a glance
| Fiscal year end | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Cash and short-term investments | 629 | 235 | 536 | 532 | 1,210 |
| Debt incl. finance leases | 46 | 212 | 208 | 185 | 32 |
| Net debt (negative means net cash) | −583 | −23 | −328 | −347 | −1,178 |
| Net debt to EBITDA | −29.4x | — | −2.7x | −1.9x | −2.6x |
| Debt to equity | 0.1x | 1.3x | 0.6x | 0.4x | 0.0x |
| Interest coverage | 2.8x | −7.8x | 785.3x | 86,714.5x | 47.9x |
| Current ratio | — | — | — | — | — |
| Quick ratio | — | — | — | — | — |
Cash flow
Projections
Project HCI Group's revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.
Insider trades
No officer, director or 10% owner of HCI Group reported buying or selling its shares on the open market between November 7, 2025 and November 6, 2026.
Indicators
Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.
| Indicator | FY23 | FY24 | FY25 |
|---|---|---|---|
| Piotroski F-score | — | — | — |
| Rule of 40 | 50.9% | 79.9% | 69.0% |
| Altman Z'' | — | — | — |
| Accruals ratio | −8.4% | −11.0% | −6.1% |
The nine F-score tests
| Test | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net income is positive | Pass | Pass | Pass |
| Cash from operations is positive | Pass | Pass | Pass |
| Return on assets rose | Pass | Pass | Pass |
| Cash from operations exceeds net income | Pass | Pass | Pass |
| Debt fell relative to assets | Pass | Pass | Pass |
| Current ratio rose | — | — | — |
| Share count didn't rise | Fail | Fail | Fail |
| Gross margin rose | — | — | — |
| Revenue rose relative to assets | Fail | Pass | Fail |
| F-score | — | — | — |
Compare
Put HCI Group side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.
Similar companies
| Company | Year | Revenue growth | Operating margin | Free cash flow margin | Return on capital | Net debt to EBITDA | F-score | Compare |
|---|---|---|---|---|---|---|---|---|
| HCI Group | FY25 | 20.1% | — | 48.9% | — | −2.6x | — | |
| Palomar | FY25 | 58.2% | — | 46.7% | — | — | — | Compare |
| Employers | FY25 | −2.5% | — | 5.2% | 1.2% | −5.0x | — | Compare |
| Lemonade | FY25 | 40.1% | — | −3.5% | — | — | — | Compare |
| Assured Guaranty | FY25 | 27.3% | — | — | 10.2% | — | — | Compare |
10 years of figures
| Fiscal year | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||||
| Revenue | 264 | 244 | 231 | 242 | 310 | 408 | 500 | 551 | 750 | 901 |
| Revenue growth | −7.5% | −7.6% | −5.4% | 4.8% | 28.0% | 31.4% | 22.5% | 10.2% | 36.2% | 20.1% |
| Gross profit | — | — | — | — | — | — | — | — | — | — |
| Research and development | — | — | — | — | — | — | — | — | — | — |
| Operating income | — | — | — | — | — | — | — | — | — | — |
| Net income | 29 | −7 | 18 | 27 | 28 | 2 | −58 | 79 | 110 | 299 |
| Diluted EPS (US$) | 2.92 | −0.75 | 2.34 | 3.31 | 3.49 | 0.21 | −6.24 | 7.62 | 8.89 | 22.72 |
| Diluted shares (millions) | 11 | 9 | 8 | 10 | 10 | 9 | 9 | 11 | 13 | 13 |
| Cash flow | ||||||||||
| Cash from operations | 88 | 17 | 29 | 54 | 77 | 96 | −0 | 231 | 332 | 444 |
| Capital expenditure | 1 | 2 | 2 | 3 | 6 | 3 | 6 | 6 | 4 | 4 |
| Free cash flow | 87 | 14 | 26 | 51 | 71 | 93 | −6 | 224 | 328 | 441 |
| Dividends paid | 12 | 14 | 11 | 13 | 13 | 14 | 15 | 14 | 17 | 19 |
| Share buybacks | 0 | 31 | 1 | 1 | 2 | 1 | 71 | 1 | 1 | 2 |
| Acquisitions | 12 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock-based compensation | 4 | 4 | 5 | 6 | 8 | 14 | 15 | 9 | 10 | 11 |
| Balance sheet at fiscal year end | ||||||||||
| Cash and short-term investments | 280 | 256 | 306 | — | 431 | 629 | 235 | 536 | 532 | 1,210 |
| Debt incl. finance leases | 139 | 238 | 250 | 164 | 156 | 46 | 212 | 208 | 185 | 32 |
| Total assets | 670 | 842 | 833 | 803 | 941 | 1,177 | 1,803 | 1,811 | 2,230 | 2,529 |
| Total liabilities | 426 | 648 | 651 | 617 | 740 | 762 | 1,548 | 1,388 | 1,761 | 1,414 |
| Shareholders' equity | 244 | 194 | 181 | 186 | 201 | 323 | 163 | 325 | 453 | 1,041 |
| Margins and ratios | ||||||||||
| Gross margin | — | — | — | — | — | — | — | — | — | — |
| Operating margin | — | — | — | — | — | — | — | — | — | — |
| Net margin | 11.0% | −2.8% | 7.7% | 11.0% | 8.9% | 0.5% | −11.7% | 14.3% | 14.7% | 33.2% |
| Free cash flow margin | 33.0% | 5.8% | 11.4% | 21.1% | 22.8% | 22.8% | −1.3% | 40.7% | 43.7% | 48.9% |
| Rule of 40 (growth + FCF margin) | 25.5% | −1.7% | 6.0% | 25.9% | 50.9% | 54.2% | 21.2% | 50.9% | 79.9% | 69.0% |
| Return on capital | 35.6% | 0.7% | 19.7% | — | — | — | — | — | — | — |
| Return on equity | 12.1% | −3.1% | 9.4% | 14.5% | 14.3% | 0.7% | −24.1% | 32.4% | 28.3% | 40.0% |
| Return on assets | 4.4% | −0.9% | 2.1% | 3.2% | 3.2% | 0.2% | −3.9% | 4.4% | 5.4% | 12.6% |
| Net debt to EBITDA | −2.4x | −7.6x | −1.2x | — | −5.4x | −29.4x | — | −2.7x | −1.9x | −2.6x |