Share count
105Mpeak FY2025
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NP, Neptune Insurance Holdings Inc.
Insurance Brokers financial
Neptune was founded to solve the inefficiencies and poor product-market fit we saw in the traditional flood insurance market, which we believe represents a significant and underpenetrated opportunity.
We offer a range of easy-to-purchase residential and commercial insurance products - including primary flood insurance, excess flood insurance, and parametric earthquake insurance - distributed through a nationwide network of agencies.
Private market participation has also historically been constrained by regulatory barriers, a lack of innovation expertise, and limited access to sufficient claims and performance data to optimize pricing and underwriting decisions.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
$160M
+33.7% YoY
Vital signs · TTM, with 3-yr average
Revenue $38M +28.8% vs yr-ago qtr
Operating margin 35.6% yr-ago 53.2%
Net income $7M yr-ago $5M
Net margin 19.4% yr-ago 15.4%
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What it is
- Revenue is Commission income (76%) and Fee income (24%).
- What moves the needle
- Commissions on the premiums it places, and organic growth. What decides it: insurance prices in the market, since it earns a slice of them; new business won and kept; and a capital-light fee stream that carries none of the underwriting risk of the insurers it sells for. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Operating margin has run at the high end of fee-business margins across the record (median 54%, above 25% in 3 of 3 years), the economics of a business that takes a cut without carrying the risk. A high return that does not fade can mark a moat, but whether the commissions keep renewing as rates turn is what the 10-K settles, not the multiple.
Every line is arithmetic on the company's filings, shown in full in the sections below.
Where the money comes from
read the 10-K →Commission income is 76% of revenue, with Fee income the other meaningful line at 24%.
Revenue by product line, FY2025
- Commission income76%$122M
- Fee income24%$38M
From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.
The record
Ten years of arithmetic, read across the cycle.
The record, 2023–2025
realized figures from each filing · older years to the left| 2023’23 | 2024’24 | 2025’25 | TTMTTMMar 2026 | |
|---|---|---|---|---|
| Income statement | ||||
| $85M | $119M | $160M | $168M | RevenueRevenue |
| 53.5% | 57.4% | 44.5% | 40.9% | Operating marginOp. mgn |
| 21.1% | 29.0% | 23.4% | 20.7% | Net marginNet mgn |
| $18M | $35M | $37M | $35M | Net incomeNet inc. |
| 25% | 25% | 30% | 31% | Effective tax rateTax rate |
| Balance sheet | ||||
| — | $48M | $65M | $85M | Total assetsAssets |
| $24M | $7M | $8M | $11M | Cash & investmentsCash+inv |
| ($388M) | ($366M) | ($227M) | ($213M) | Shareholders’ equityEquity |
| Per share | ||||
| 93.5M | 93.3M | 105M | 146M | Shares out (diluted)Shares |
| $0.91 | $1.28 | $1.53 | $1.15 | Revenue / shareRev/sh |
| $0.19 | $0.37 | $0.36 | $0.24 | EPS (diluted)EPS |
| $-4.14 | $-3.92 | $-2.18 | $-1.46 | Book value / shareBVPS |
The record, charted
FY2023–2025Each measure over its full record; the current point and the worst year marked.
Revenue
$160Mlow FY2023
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 10-K · source on SEC EDGAR →
Is it a good business?
- Operating margin 44.5%Wide fee margin (≥30%)Operating income $71M ÷ revenue $160MIndustry peers: median 15%
What this means
The heart of a insurance broker: how much of each fee dollar survives the cost of running the business. Commissions are a slice of the premiums it places, earned without taking the underwriting risk itself, so it is a capital-light fee stream that rises with new business, retention and the price of insurance. A high margin held for years, through a market it does not control, is the operational mark of a real franchise.
- Net margin 23.4%WideNet income $37M ÷ revenue $160M
What this means
What reaches the owner after tax and interest. For a capital-light fee business this should be a wide share of revenue; when it is thin despite a high operating margin, debt taken on for acquisitions is usually the reason, so read it next to the balance sheet.
- Not enough dataIndustry peers: median 20%
What this means
Equity is zero or negative (often from buybacks), so the ratio would mislead.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
In its own filing Named as a competitive risk
Its FY2025 10-K names artificial intelligence as a competitive threat.
“Rapid advancements in AI, including the development of AGI, and ML technologies could increase competition and disrupt our business model.”
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of the latest quarter, Mar 31, 2026Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assets$72M
- Cash & short-term investments$11M
- Other current assets$62M
Current liabilities$72M
- Accounts payable$9M
- Other current liabilities$63M
Current ratio1.01×all current assets ÷ what's due · Graham looked for 2×
Quick ratio1.01×stricter: inventory excluded
Cash ratio0.15×strictest: cash alone against what's due
Working capital$811Kthe cushion left after near-term bills
Revenue, latest quarter vs. a year ago+28.8%the freshest read on whether the business is still growing
Current ratio, recent quarters0.7× → 1.0×
Deeper floors
Tangible book value($218M)equity stripped of goodwill & intangibles
Net current asset value($226M)Graham's net-net: current assets less all liabilities
Deferred revenue$32Mcustomer cash collected before delivery; operating float
From the company's latest filing.
Management, ownership & pay
read the proxy →From the proxy: how much of the business the people running it own, and how they are paid.
- Insider ownership55.7%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
- Stock-based compensation$11M
The slice of the business handed to employees in shares this year, 7% of revenue, equal to 16% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.
Peers, Insurance Brokers
The same industry, side by side on fee margins. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Op. margin | Net margin | ROE |
|---|---|---|---|---|
| ACTEnact Holdings Inc. | $1.2B | 77.3% | 57.3% | 14% |
| CRVLCorVel Corp. | $959M | 11.2% | 8.8% | 26% |
| ARXAccelerant Holdings Class A | $913M | -8.3% | -14.2% | -204% |
| HGTYHagerty Inc. | $678M | 4.0% | 7.2% | 52% |
| LIFEEthos Technologies Inc. | $388M | 18.8% | 18.4% | — |
| GSHDGoosehead Insurance | $365M | 17.0% | 3.6% | 51% |
| TWFGTWFG Inc. | $249M | 14.8% | 0.7% | 4% |
| NPNeptune Insurance Holdings Inc. | $160M | 53.5% | 23.4% | — |
| Group median | — | 15.9% | 8.0% | — |
The price
What a price has to assume.
What the price implies
reverse-DCFNeptune Insurance Holdings Inc. is profitable, but its owner-earnings base could not be formed from this filing’s tagged data (operating cash flow or capital spending is missing), so the owner-earnings reverse-DCF has no base to grow. We read the price from both ends instead: type a price to see the profitability it demands, then set the mature margin you would believe and weigh the two against each other. Nothing leaves your browser unless you enter it in your notebook.
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The assumptions
Enter a price to run it.
Owner earnings it must reach—
Margin the price demands—
Owner-earnings margin today—
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Two reads of one future. From your price: the owner earnings the company must reach, valued at a mature multiple and discounted back at your rate, expressed as the margin it implies on revenue grown at your rate. From your belief: the mature margin you would credit, set on the dial above. When the margin the price demands runs above the one you would believe, you are paying for a future taken on faith. For a deep cyclical at a trough, normalized through-cycle earnings are the better lens; this mode is for the genuinely unprofitable, and for the profitable business whose capital spending currently outruns its cash.
Cite: Owner Scorecard, "Neptune Insurance Holdings Inc. (NP), the owner's record," https://ownerscorecard.com/c/NP, data as of 2026-07-09.
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