Financial Analysis

Note 16. Commitments and Contingencies Legal Matters From time to time, the Company may be involved in legal and regulatory proceedings arising in the ordinary course of business. As of September 30, 2025 and December 31, 2024, the Company was not a party to any legal proceedings that, individually or in the aggregate, are expected to have a material adverse effect on its business, financial condition, or results of operations. The Company evaluates potential exposures to such matters and records a liability when an outcome is both probable and reasonably estimable. Lease Commitments The Company leases office spaces and certain equipment under non-cancelable operating lease agreements. These leases have initial terms ranging from three to ten years and may include renewal options or rent escalation provisions. Refer to Note 9. Leases for additional information on lease commitments. Indemnification Obligations The Company provides certain indemnification commitments under agreements with customers that may require the Company to defend against claims for certain damages arising from breaches of contractual obligations. As of September 30, 2025 and December 31, 2024, no liabilities had been recorded related to such indemnification obligations. Regulatory Matters The Company is subject to various federal and state regulatory requirements, including data privacy and insurance-related requirements. The Company continues to monitor and enhance its compliance process and to address …

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The following tables present revenue disaggregated by source and by timing of revenue recognition: Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Underwriting and management services $ 44,879 $ 22,058 $ 133,424 $ 67,180 Claim services 8,030 5,418 23,482 17,348 Other technology services 2,257 1,634 6,758 4,887 Total revenue $ 55,166 $ 29,110 $ 163,664 $ 89,415 Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Point in time $ 22,796 $ 14,259 $ 72,508 $ 44,275 Over time 32,370 14,851 91,156 45,140 Total revenue $ 55,166 $ 29,110 $ 163,664 $ 89,415

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"Note 15. Stock-Based Compensation 2021 Omnibus Incentive Plan As of September 30, 2025, the 2021 Omnibus Incentive Plan (the ""2021 Omnibus Plan"") authorized the issuance of up to 12,585,851 shares, with 3,278,776 shares remaining available for future grant. Refer to Note 17. Subsequent Events for information regarding the adoption of the Company's 2025 Omnibus Incentive Plan. Stock Options A summary of stock option activity for the nine months ended September 30, 2025 and 2024 is as follows: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic (Option counts are presented in whole numbers ) Options Price Term Value Outstanding at January 1, 2025 6,350,000 $ 23.00 0.75 years $ Outstanding at March 31, 2025 6,350,000 $ 23.00 0.50 years $ Outstanding at June 30, 2025 6,350,000 $ 23.00 0.25 years $ Outstanding at September 30, 2025 6,350,000 $ 23.00 0.00 years (1) $ Exercisable as of September 30, 2025 6,037,500 $ 23.00 0.00 years (1) $ Outstanding at January 1, 2024 6,350,000 $ 23.00 1.75 years $ Outstanding at March 31, 2024 6,350,000 $ 23.00 1.50 years $ Outstanding at June 30, 2024 6,350,000 $ 23.00 1.25 years $ Outstanding at September 30, 2024 6,350,000 $ 23.00 1.00 years $ Exercisable as of September 30, 2024 4,787,500 $ 23.00 1.00 years $ (1) All options will vest as of October 1, 2025. There were no stock options granted or exercised during the three and nine months ended September 30, 2025 or 2024. For the three and nine mont …

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"Note 11. Income Taxes For the three months ended September 30, 2025 and 2024, the Company recorded income tax expense from continuing operations of $ 7,203 and $ 1,655 , respectively, representing effective tax rates of 25.4 % and 23.9 %, respectively. The increase in the effective tax rate primarily reflects permanent differences related to non-deductible executive compensation. For the nine months ended September 30, 2025 and 2024, the Company recorded income tax expense from continuing operations of $ 20,674 and $ 5,088 , respectively, representing effective tax rates of 25.4 % and 26.2 % respectively. The decrease in the year-to-date effective tax rate was primarily attributable to the relative impact of permanent items on higher pre-tax earnings on a year-over-year basis. The Company's estimated annual effective tax rate differs from the statutory federal tax rate due to state and foreign income taxes, permanent differences related to non-deductible expenses, and tax-exempt items. A valuation allowance must be established for deferred tax assets when it is more likely than not that such assets will not be realized based on available evidence both positive and negative, including recent results, available tax planning strategies, and projected future taxable income. As a result of the sale of TTIC, the Company incurred a tax loss and recognized a deferred tax asset of $ 1,208 as of September 30, 2025, compared to $ 544 as of December 31, 2024. The increase in the deferre …

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"Note 9. Leases The Company's right-of-use (""ROU"") assets and operating lease liabilities are as follows: September 30, December 31, 2025 2024 Operating leases: ROU Assets $ 7,170 $ 8,052 Liabilities - current $ 2,351 $ 2,132 Liabilities - non-current 5,164 6,219 Total liabilities $ 7,515 $ 8,351 The Company has entered into lease agreements with both affiliates and third parties. Refer to Note 8. Related Party Transactions for additional information on related party lease arrangements. The Company's operating leases in which the Company is a lessee are as follows: Renewal Other Terms and Class of Assets Initial Term Option Conditions Operating lease: Office space 3 to 10 years Yes (1), (2) Office equipment 5.25 years Not applicable (1) There is a variable lease payment. ( 2 ) Rent escalation provisions exist. As of September 30, 2025, maturities of operating lease liabilities due within the next twelve months and thereafter are as follows: Operating Leases Due in 12 months following September 30, 2025 $ 1,696 2026 1,748 2027 1,305 2028 1,159 2029 1,189 2030 and after 2,576 Total lease payments 9,673 Less: interest and foreign taxes 2,158 Total lease obligations $ 7,515 The following table presents quantitative information regarding the components of lease cost and cash payments related to the Company's operating leases for the periods presented: Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Lease costs: Operating lease costs (1) $ 428 …

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"Recent Accounting Pronouncements Accounting Standards Adopted in the Current Year In December 2023, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") No. 2023-09 - Income Taxes (Topic 740): Improvements to Income Tax Disclosures (""ASU 2023-09"") to enhance the transparency of income tax disclosures. The ASU requires expanded disclosure of the income tax rate reconciliation and additional information about income taxes paid. ASU 2023-09 is effective for fiscal years starting after December 15, 2024, with early adoption permitted. The Company adopted ASU 2023-09 on a prospective basis effective January 1, 2025, which will result in enhanced income tax disclosures beginning with the audited Consolidated Financial Statements for the year ending December 31, 2025. Accounting Standards Issued but Not Yet Adopted In November 2024, the FASB issued ASU No. 2024-03 - Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40) Disaggregation of Income Statement Expenses (""ASU 2024-03"") which enhances disclosure requirements for public entities by requiring the disaggregation of certain expense captions presented within the income statement, including employee compensation and intangible asset amortization. This ASU also requires entities to reconcile each affected income statement caption to the aggregate amount of the separately disclosed expense categories with any remaining difference described …

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"Note 8. Related Party Transactions Related Party Service Agreements - Revenue Management fees from insurance carriers EIS is party to a longstanding MGA agreement with TTIC. For the three and nine months ended September 30, 2025, the Company recognized underwriting, management and claim services revenue pursuant to the MGA agreement with TTIC of $ 32,634 and $ 100,043 , respectively. For the three and nine months ended September 30, 2024, the Company recognized underwriting, management and claim services revenue pursuant to the MGA agreement with TTIC of $ 25,180 and $ 79,354 , respectively. As of September 30, 2025 and December 31, 2024, unearned revenue pursuant to the MGA agreement with TTIC of $ 33,178 and $ 35,118 , respectively, was recorded within Contract liabilities in the Consolidated Balance Sheets. As of September 30, 2025 and December 31, 2024, the Company had accounts receivable outstanding related to the above fees of $ 7,604 and $ 543 , respectively. Such fees are typically settled in the month following the period in which the services are rendered. EIS entered into an MGA agreement with Core Risk Managers, LLC (""CRM""), the attorney-in-fact (""AIF""), for CORE. For the three and nine months ended September 30, 2025, the Company recognized underwriting, management and claim services revenue pursuant to the MGA agreement with CRM of $ 1,223 and $ 3,850 , respectively. For the three and nine months ended September 30, 2024, the Company recognized underwriting …

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"Note 4. Revenue The Company generates revenue from three primary sources: underwriting and management services, claim services, and other technology services. The following tables present revenue disaggregated by source and by timing of revenue recognition: Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Underwriting and management services $ 44,879 $ 22,058 $ 133,424 $ 67,180 Claim services 8,030 5,418 23,482 17,348 Other technology services 2,257 1,634 6,758 4,887 Total revenue $ 55,166 $ 29,110 $ 163,664 $ 89,415 Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Point in time $ 22,796 $ 14,259 $ 72,508 $ 44,275 Over time 32,370 14,851 91,156 45,140 Total revenue $ 55,166 $ 29,110 $ 163,664 $ 89,415 The Company primarily derives revenue through insurance solutions services provided to various customers. The Company provides services to certain of its affiliates under separate MGA, policy administration agreements and technology agreements. Refer to Note 8. Related Party Transactions for additional information. Underwriting and Management Services The Company provides policy issuance and renewal services that result in executed insurance policies. In addition, the Company provides management services, including soliciting and negotiating reinsurance for authorized programs and managing and maintaining a policy administration system. The Company also provides administrative services, including maintainin …

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"Note 10. Segment Information Operating segments are defined as components of an enterprise for which separate financial information is available and that are evaluated regularly by the Chief Operating Decision Maker (""CODM"") in deciding how to allocate resources and in assessing performance. The Company's CEO serves as the CODM. The CODM reviews financial information on a consolidated basis and allocates resources and evaluates financial performance based on consolidated revenue and operating income. As such, the Company has determined that it operates as one operating and reportable segment. On July 1, 2024, the Company completed the sale of TTIC to its parent company, HCI. As a result, the operations of TTIC have been classified as discontinued operations in the unaudited interim Consolidated Financial Statements for all periods presented. Following this transaction, the Company reevaluated its segment reporting and determined that the remaining operations constitute a single operating and reportable segment. Prior period segment information has been recast to conform to the current period presentation. All of the Company's revenues are earned in the United States, and substantially all of the Company's assets are located in the United States. Refer to Note 6. Concentrations of Credit Risk for additional information about major customers. The following table presents consolidated revenue, significant expense categories regularly reviewed by the CODM, and net income for t …

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"Note 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (""GAAP"") for interim financial information. The Consolidated Financial Statements include the accounts of the Company's controlled subsidiaries and all intercompany balances and transactions have been eliminated. Certain information and footnote disclosures normally included in annual audited Consolidated Financial Statements prepared in accordance with GAAP have been condensed or omitted in this interim presentation. In the opinion of management, the accompanying unaudited interim Consolidated Financial Statements reflect all normal recurring adjustments necessary for a fair statement of the Company's financial position as of September 30, 2025, and the results of operations and cash flows for the interim periods presented. Operating results for the interim periods presented are not necessarily indicative of results expected for the fiscal year ending December 31, 2025. These unaudited interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in the Company's Registration Statement on Form S-1, as amended (File No. 333-290500), filed with the SEC on October 16, 2025. There have been no material changes to the Company's significant ac …

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Note 14. Stockholders' Equity Common Stock As of September 30, 2025, the Company was authorized to issue 184,000,000 shares of common stock, consisting of 181,860,000 shares of voting common stock and 2,140,000 shares of non-voting common stock, as set forth in its Third Amended and Restated Articles of Incorporation, as amended. The Fourth Amended and Restated Articles of Incorporation became effective on November 6, 2025, in connection with the consummation of the Companys initial public offering, which further amended the Companys authorized shares of common stock. Refer to Note 17. Subsequent Events for information regarding the Fourth Amended and Restated Articles of Incorporation. Preferred Stock On January 22, 2024, the Company redeemed all outstanding 10,000,000 shares of its Series A Preferred Stock. Refer to Note 13. Redeemable Series A Preferred Stock for additional information. As of September 30, 2025, the Company was authorized to issue 38,502,000 shares of preferred stock, as set forth in the Company's Third Amended and Restated Articles of Incorporation, as amended. No shares of preferred stock were issued or outstanding as of September 30, 2025. The Fourth Amended and Restated Articles of Incorporation, effective November 6, 2025, in connection with the Companys initial public offering, also amended the Companys authorized shares of preferred stock. Refer to Note 17. Subsequent Events for information regarding the Fourth Amended and Restated Articles of Incor …

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"Note 17. Subsequent Events On October 14, 2025, the Company terminated the 2021 Omnibus Plan and adopted the 2025 Omnibus Incentive Plan (the ""2025 Omnibus Plan""). All awards previously granted under the 2021 Omnibus Incentive Plan continue to be administered and settled in accordance with the terms of the 2021 Plan. The principal purpose of the 2025 Omnibus Plan is to attract, retain and motivate selected employees, consultants and directors through equity-based and cash-based incentive awards to employees, consultants, service providers, and non-employee directors of the Company and its affiliates. The 2025 Omnibus Plan provides for up to 10,000,000 shares of common stock reserved for future issuance. On November 6, 2025, the Company closed its initial public offering (""IPO"") issuing 8,000,000 shares of common stock at a price of $ 21.00 per share, for gross proceeds of $ 168,000 . The Company received net proceeds of approximately $ 156,240 , after deducting approximately $ 11,760 of underwriting discounts and commissions. In contemplation of the IPO, the Company amended a restricted stock award previously granted to the Companys CEO to accelerate the vesting of the restricted stock award contingent upon completion of the IPO. This modification did not result in any incremental compensation cost. The Company recognized approximately $ 47 of previously unrecognized compensation expense related to the vesting of the restricted stock awards upon completion of the IPO. On …

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