Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2025	Sep. 30, 2024
OPERATING ACTIVITIES
Net income	$ 128,919	$ 41,246
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Stock-based compensation	4,152	2,248
Bond amortization and accretion	(377)	(2,500)
Expected credit allowance on reinsurance	(22)	0
Amortization of original issuance discount on debt	251	642
Depreciation and amortization	9,158	6,733
Allowance (recovery) for bad debt	295	(687)
Net realized gains on debt securities and other investments	(2,746)	(17)
Deferred income taxes	1,425	(4,734)
Changes in operating assets and liabilities:
Accrued investment income	126	(1,162)
Premiums receivable, net	14,304	3,607
Prepaid reinsurance premiums	(116,318)	(106,800)
Reinsurance recoverable on paid and unpaid claims	360,749	40,850
Income taxes receivable	(6,405)	4,611
Deferred policy acquisition costs, net	(3,588)	(6,557)
Right of use leased asset, net	2,529	2,676
Other assets	(10,778)	(287)
Unpaid losses and loss adjustment expenses	(393,103)	(70,487)
Unearned premiums	30,727	48,505
Reinsurance payable	151,877	184,663
Accrued interest	(313)	(529)
Debt issuance cost	(2,206)	0
Accrued compensation	(1,196)	(2,149)
Advance premiums	11,108	4,036
Income tax payable	(846)	0
Leased liabilities, net	(2,607)	(2,601)
Other liabilities	(6,683)	1,866
Net cash provided by operating activities	168,432	143,173
INVESTING ACTIVITIES
Fixed maturity securities sales, maturities and paydowns	185,766	99,881
Fixed maturity securities purchases	(210,106)	(188,105)
Redemption of equity securities	893	0
Return on other investments	4,666	319
Equity securities reinvestment of dividends	(21)	(270)
Proceeds from for sale of property	2,911	0
Cost of property and equipment acquired	(5,214)	(5,667)
Net cash used in investing activities	(21,105)	(93,842)
FINANCING ACTIVITIES
Repayment of term note	(5,125)	(7,125)
Mortgage loan payments	(10,639)	(198)
Payment on loan agreement	(19,200)	0
Repurchase treasury stock	(2,283)	0
Proceeds from loan agreement	0	5,500
Additional costs associated with public offering	0	(3)
Dividends forfeited	0	54
Net cash used in financing activities	(37,247)	(1,772)
Increase in cash, cash equivalents, and restricted cash	110,080	47,559
Cash, cash equivalents and restricted cash, beginning of period	463,645	473,339
Cash, cash equivalents and restricted cash, end of period	573,725	520,898
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Non-cash promissory note received in connection with the sale of property	11,000	0
Income taxes paid	48,291	12,696
Interest paid	$ 5,492	$ 7,224

Heritage Insurance Holdings, Inc. 10-Q