PRESURANCE HOLDINGS INC. 9.75% NTS 30/09/28 USD25 | 10-Q: FY2026 Q1 Revenue: USD 11.55 M

Revenue: As of FY2026 Q1, the actual value is USD 11.55 M.

EPS: As of FY2026 Q1, the actual value is USD 0.15.

EBIT: As of FY2026 Q1, the actual value is USD 4.56 M.

Segment Revenue

Gross Written Premiums

• Total: Decreased by -29.1% to $11.469 million for the three months ended March 31, 2026, from $16.173 million for the same period in 2025 .
• Personal Lines: Decreased by -18.7% to $11.487 million in Q1 2026, from $14.126 million in Q1 2025, primarily due to underwriting changes affecting volume as the company focuses on prudent growth in Texas .
• Commercial Lines: Were -$0.018 million in Q1 2026, compared to $2.047 million in Q1 2025, as the business is in runoff and no new commercial lines business is expected to be written in the near term .

Net Written Premiums

• Total: Decreased by -44.0% to $6.075 million in Q1 2026, from $10.840 million in Q1 2025 .
• Personal Lines: Decreased by -51.1% to $6.091 million in Q1 2026, from $12.444 million in Q1 2025, mainly due to $4.2 million in premiums ceded under a new 50% quota share agreement for homeowners business effective June 1, 2025 .
• Commercial Lines: Were -$0.016 million in Q1 2026, compared to -$1.604 million in Q1 2025 .

Net Earned Premiums

• Total: Decreased by -42.6% to $5.925 million in Q1 2026, from $10.315 million in Q1 2025, consistent with the decrease in net written premiums .
• Personal Lines: Decreased by -35.5% to $5.792 million in Q1 2026, from $8.984 million in Q1 2025 .
• Commercial Lines: Were $0.133 million in Q1 2026, compared to $1.331 million in Q1 2025 .

Operational Metrics

Net Income (Loss)

• Total: Increased to $2.622 million in Q1 2026, from $0.522 million in Q1 2025 .
• Earnings Per Share (Basic and Diluted): Was $0.15 in Q1 2026, up from $0.04 in Q1 2025 .

Losses and Loss Adjustment Expenses (LAE), Net

• Total: Decreased by -64.1% to $3.329 million in Q1 2026, from $9.274 million in Q1 2025, primarily due to a significant reduction in net earned premiums as the commercial lines business is in runoff .
• Personal Lines: $3.600 million in Q1 2026, compared to $7.769 million in Q1 2025 .
• Commercial Lines: -$0.271 million in Q1 2026, compared to $1.505 million in Q1 2025 .

Policy Acquisition Costs

• Total: Decreased by -41.8% to $1.558 million in Q1 2026, from $2.677 million in Q1 2025 .
• Personal Lines: $1.558 million in Q1 2026, compared to $2.724 million in Q1 2025 .
• Commercial Lines: $0 million in Q1 2026, compared to -$0.047 million in Q1 2025 .

Operating Expenses

• Total: Decreased by -26.6% to $2.100 million in Q1 2026, from $2.861 million in Q1 2025 .
• Personal Lines: $0.512 million in Q1 2026, compared to $2.192 million in Q1 2025 .
• Commercial Lines: $0.865 million in Q1 2026, compared to $0.384 million in Q1 2025 .
• Corporate: $0.723 million in Q1 2026, compared to $0.285 million in Q1 2025 .

Underwriting Gain (Loss)

• Total: Improved to -$1.056 million in Q1 2026, from -$4.432 million in Q1 2025 .
• Personal Lines: $0.122 million in Q1 2026, an improvement from -$3.678 million in Q1 2025 .
• Commercial Lines: -$0.461 million in Q1 2026, compared to -$0.511 million in Q1 2025 .
• Corporate: -$0.723 million in Q1 2026, compared to -$0.243 million in Q1 2025 .

Underwriting Ratios

• Loss Ratio: Improved to 56.2% in Q1 2026, from 89.7% in Q1 2025 .
• Expense Ratio: Decreased to 49.5% in Q1 2026, from 50.8% in Q1 2025, mainly due to improved administrative cost efficiency .
• Combined Ratio: Improved to 105.7% in Q1 2026, from 140.5% in Q1 2025 .

Adjusted Operating Income (Loss) (Non-GAAP)

• Total: The adjusted operating loss was -$2.830 million ($0.16 per share) in Q1 2026, an improvement from -$3.684 million ($0.30 per share) in Q1 2025 .

Cash Flow

Operating Activities

• Cash used in operating activities was -$8.3 million for Q1 2026, an improvement from -$15.3 million for Q1 2025, mainly due to a -$13.6 million decrease in net losses paid, offset by a -$6.8 million decrease in net premiums collected .

Investing Activities

• Cash provided by investing activities was $0.168 million for Q1 2026, compared to cash used of -$9.6 million for Q1 2025, driven by a $20.5 million increase in proceeds from maturities and redemptions of investments, partially offset by a $3.4 million increase in purchases of investments and a -$7.3 million decrease in proceeds from sales of investments .

Financing Activities

• Cash provided by financing activities was $6.2 million for Q1 2026, compared to $7.5 million for Q1 2025, mainly due to the -$7.5 million repayment of Series B Preferred Stock, offset by $14.0 million from common stock issuance and -$0.252 million in related issuance costs .

Unique Metrics

Contingent Considerations

• The Company recorded $8.8 million of contingent consideration receivable as of March 31, 2026, for the fair value of potential additional contingent consideration related to the CIS Sale, up from $4.290 million as of December 31, 2025 .

Statutory Capital and Surplus

• The Insurance Company Subsidiaries’ aggregate statutory capital and surplus was $51.3 million at March 31, 2026, up from $42.6 million at December 31, 2025 .

Future Outlook and Strategy

The Company plans to focus on prudent, steady growth in its specialty homeowners business, particularly in Texas, while its commercial lines business is in runoff with no new writings expected in the near term . Management believes it can meet obligations over the next twelve months due to anticipated revenue from Triassic Insurance Company (TIC) and a potential $10.0 million third earnout payment . To address capital needs, the Company raised $14.0 million through a rights offering in February 2026, using proceeds to redeem preferred stock and contribute $3.0 million to TIC, and may consider a reverse stock split for Nasdaq compliance .