Florida-based flood insurance group, Neptune Insurance Holdings Inc., the parent of Neptune Flood, reported a 34.3%, or $15.2 million year-on-year increase in revenue to a record $59.6 million for the third quarter of 2026, compared to $44.4 million in the comparable prior year quarter.
Revenues were driven by continued growth of the renewal portfolio, increased commission income, record new business sales, increased Neptune adoption by agents, and additional new business sales resulting from the Palomar agreement.
The reported revenues were partially offset by an ongoing slow real estate market reducing selling opportunities, and residual slowdown as a result of a below-average 2026 Atlantic hurricane season, explained Neptune.
For this quarter, Neptune’s written premiums grew by 31% to a record $132.7 million, and grew by more than 32% to $446.2 million over the last 12 months.
The firm’s Q3’26 net income increased by 50% to a record $17.3 million, with a net income margin of 29%, compared to $11.5 million in Q3’25. Additionally, adjusted net income grew by 52% to a record $24.3 million, compared to $15.9 million in Q3’25.
Meanwhile, adjusted EBITDA for Q3’26 grew by 38%, hitting a record $36.8 million, while adjusted EBITDA margin is 62%, matching the firm’s record high to date. These figures were driven by normalised commission expense, increased commission income, continued emphasis on operating leverage, partially offset by increased expenses due to public company costs and technology development.
Neptune said, “This quarter marks one year since Neptune’s IPO and our first earnings call as a public company. Over that period, we have grown quarterly revenue by 34%, increased Adjusted EBITDA by 38%, and continued to expand our distribution, technology, and capacity relationships, all while maintaining Adjusted EBITDA margins above 60%. Third-quarter revenue reached $59.6 million, compared with $44.4 million in Q3 2025, while Adjusted EBITDA increased to $36.8 million from $26.7 million in Q3 2025.
“Our operating model continues to deliver the combination of growth and profitability that has characterized Neptune’s performance. Our efficiency has also continued to improve as the business has grown. Operationally, premium in force increased 32% year over year to $450 million, while policies in force grew 29% to more than 336,000. Over the last twelve months, revenue per employee increased 28% to $3.2 million, and Adjusted EBITDA per employee increased 28% to $2.0 million. Our Rule of 40 reached 94, reflecting the strength of both our growth and margins.”
“We now work with 45 capacity providers across 8 programs and 11 products. Over the past year, we have also made substantial investments in the technology that underpins our business. AI is increasing our engineering productivity, Atlas+ is making our distribution partners more effective, and our infrastructure is being developed to support emerging forms of insurance distribution. Based on the strength of our Q3 performance, we are raising our full-year 2026 revenue expectations to $204 million at an Adjusted EBITDA margin in excess of 61%.
“We are also setting initial 2027 full-year guidance of $238 million at an Adjusted EBITDA margin of 61%. Even though we enter our second year as a public company with a substantially larger business and improving operating efficiency, we believe there is still significant opportunity ahead. Our focus remains on compounding Neptune’s growth through disciplined execution, technology investment, and expansion of the flood insurance market,” added the firm.
