|
|
|
|
|||||
|
|
|
TRAVERSE CITY, Mich., Nov. 4, 2025 /PRNewswire/ -- Hagerty, Inc. (NYSE: HGTY), an automotive enthusiast brand and leading specialty vehicle insurance provider, announced today financial results for the three and nine months ended September 30, 2025.
"We delivered high rates of growth through the third quarter of 2025 with year-to-date revenue gains of 18%. Margins continued to expand as we scale up our business while maintaining tight cost discipline, resulting in year-to-date net income growth of 73%, and Adjusted EBITDA gains of 46%," said McKeel Hagerty, Chief Executive Officer and Chairman of Hagerty.
"Our strong business momentum allowed us to increase our 2025 outlook for the second straight quarter as we help car enthusiasts protect, buy and sell, and enjoy their special vehicles. We now expect to deliver total revenue growth of 14-15% and net income growth of 58-65% in 2025. We believe 2026 is shaping up to be another great year of sustained growth and margin expansion, and we continue to develop our growth pipeline through 2030, including new partnerships," added Mr. Hagerty.
THIRD QUARTER AND YTD 2025 FINANCIAL HIGHLIGHTS
The definitions and reconciliations of non-GAAP financial measures are provided under the heading Key Performance Indicators and Certain Non-GAAP Financial Measures at the end of this press release.
2025 OUTLOOK - SUSTAINED REVENUE GROWTH AND MARGIN EXPANSION
We believe 2025 is on track to be another year of strong profit growth for Hagerty as our team executes on our long-term plan to create value for stakeholders by delivering high rates of compounding revenue growth through investing in our long-term competitive advantages. In 2025, these investments aggregate to $20 million of elevated spend, primarily in our new technology platform, Duck Creek, which we believe will help us more efficiently grow our business over the coming years. We remain focused on growing our Insurance, Membership and Marketplace businesses, positioning us to deliver sustained, compounding profit growth over the coming years, and fund our purpose to save driving and fuel car culture for future generations.
|
|
|
|
Prior 2025 Outlook1 ($) |
|
Revised 2025 Outlook ($) |
|
||||
|
in thousands |
2024 Results |
|
Low End |
|
High End |
|
Low End |
|
High End |
|
|
Total Written Premium |
$1,044,492 |
|
$1,180,000 |
|
$1,191,000 |
|
$1,180,000 |
|
$1,191,000 |
|
|
Total Revenue |
$1,200,038 |
|
$1,356,000 |
|
$1,368,000 |
|
$1,368,000 |
|
$1,380,000 |
|
|
Net Income2, 4, 5 |
$78,303 |
|
$112,000 |
|
$120,000 |
|
$124,000 |
|
$129,000 |
|
|
Adjusted EBITDA3, 4 |
$124,473 |
|
$162,000 |
|
$172,000 |
|
$170,000 |
|
$176,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
Prior 2025 Outlook shared on the Company's second quarter earnings call on August 4th, 2025. |
|
2 |
Fully diluted share count of approximately 361 million shares including Class A Common Stock, Class V Common Stock, Series A Convertible Preferred Stock, and share-based compensation awards. |
|
3 |
See Non-GAAP Financial Measures below for additional information regarding this non-GAAP financial measure. |
|
4 |
Profit ranges incorporate $20 million of elevated technology investments in 2025, as well as approximately $10 million pre-tax impact from the Southern California wildfires. |
|
5 |
Full year 2025 net income includes $5.8 million of net benefit as a result of the release of a portion of our valuation allowance of $38.1 million partially offset by a $32.3 million loss related to the change in value of the TRA liability. |
|
|
|
Conference Call Details
Hagerty will hold a conference call to discuss the financial results on Tuesday, November 4, 2025 10:00 am Eastern Time. A webcast of the conference call, including its Investor Presentation highlighting third quarter 2025 financial results, will be available on Hagerty's investor relations website at investor.hagerty.com. The dial-in for the conference call is (877) 423-9813 (toll-free) or (201) 689-8573 (international). Please dial the number 10 minutes prior to the scheduled start time.
A webcast replay of the call will be available at investor.hagerty.com following the call.
Forward-Looking Statements
This press release contains statements that constitute "forward-looking statements" within the meaning of the federal securities laws. All statements provided, other than statements of historical fact, are forward-looking statements, including those regarding Hagerty's future operating results and financial position, Hagerty's business strategy and plans, products, services, and technology implementations, market conditions, growth and trends, expansion plans and opportunities, and Hagerty's objectives for future operations. The words "anticipate," "believe," "envision," "estimate," "expect," "intend," "may," "plan," "predict," "project," "target," "potential," "will," "would," "could," "should," "continue," "ongoing," "contemplate," and similar expressions, and the negative of these expressions, are intended to identify forward-looking statements.
Hagerty has based these forward-looking statements largely on current expectations about future events, which may not materialize. Actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. These factors include, among other things, Hagerty's ability to: (i) compete effectively and to attract, retain and engage insurance policyholders and paid Hagerty Drivers Club ("HDC") members; (ii) Hagerty's reliance on key strategic relationships, including distribution partners and underwriting carrier partners, and our ability to enter into, implement, and realize the anticipated benefits of the proposed Fronting Arrangement with Markel; (iii) the performance and availability of reinsurance and fronting capacity, and the timing and terms of renewals; (iv) execution risks associated with technology initiatives, including implementation, and migration to the Duck Creek policy administration platform, and risks of disruptions, interruptions, outages, cybersecurity events, or other issues with Hagerty's technology systems or third‑party service providers; (v) macroeconomic and industry conditions, including inflation, interest rate movements, capital market volatility, consumer sentiment, and the cyclicality of collector and enthusiast vehicle prices and transaction volumes; (vi) risks associated with Hagerty's Marketplace and Broad Arrow Capital businesses, including inventory and credit risk, financing availability and cost, and the potential for write‑downs; (vii) catastrophe, weather and other losses, including increases in the frequency or severity of claims; (viii) Hagerty's ability to obtain and implement rate changes and other regulatory approvals on a timely basis, and (ix) the impact of evolving laws and regulations applicable to Hagerty's business in the United States and internationally.
The forward-looking statements herein represent the judgment of Hagerty as of the date of this release and Hagerty disclaims any intent or obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise. This press release should be read in conjunction with the information included in Hagerty's other press releases, reports and other filings with the Securities and Exchange Commission. Understanding the information contained in these filings is important in order to fully understand Hagerty's reported financial results and its business outlook for future periods.
About Hagerty, Inc. (NYSE: HGTY)
Hagerty is an automotive enthusiast brand committed to saving driving and to fueling car culture for future generations. The company is a leading provider of specialty vehicle insurance, expert car valuation data and insights, live and digital car auction services, immersive events and automotive entertainment custom made for the 67 million Americans who self-describe as car enthusiasts. Hagerty also operates in Canada and the U.K. and is home to Hagerty Drivers Club, a community of over 920,000 who can't get enough of cars. For more information, please visit www.hagerty.com or connect with us on Facebook, Instagram, Twitter and LinkedIn.
More information can be found at newsroom.hagerty.com.
Category: Financial
Source: Hagerty
|
Hagerty, Inc. |
||||||||
|
Condensed Consolidated Statements of Operations (Unaudited) |
||||||||
|
|
||||||||
|
|
|
Three months ended September 30, |
||||||
|
|
|
2025 |
|
2024 |
|
$ Change |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
REVENUE: |
|
in thousands (except percentages and per share amounts) |
||||||
|
Commission and fee revenue |
|
$ 137,103 |
|
$ 116,161 |
|
$ 20,942 |
|
18.0 % |
|
Earned premium, net |
|
187,039 |
|
165,686 |
|
21,353 |
|
12.9 % |
|
Membership, marketplace and other revenue |
|
55,852 |
|
41,527 |
|
14,325 |
|
34.5 % |
|
Total revenue |
|
379,994 |
|
323,374 |
|
56,620 |
|
17.5 % |
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
68,110 |
|
47,192 |
|
20,918 |
|
44.3 % |
|
Ceding commissions, net |
|
87,411 |
|
77,501 |
|
9,910 |
|
12.8 % |
|
Losses and loss adjustment expenses |
|
78,626 |
|
99,430 |
|
(20,804) |
|
(20.9) % |
|
Sales expense |
|
77,672 |
|
59,141 |
|
18,531 |
|
31.3 % |
|
General and administrative expenses |
|
24,445 |
|
20,837 |
|
3,608 |
|
17.3 % |
|
Depreciation and amortization |
|
9,413 |
|
9,184 |
|
229 |
|
2.5 % |
|
Total operating expenses |
|
345,677 |
|
313,285 |
|
32,392 |
|
10.3 % |
|
OPERATING INCOME |
|
34,317 |
|
10,089 |
|
24,228 |
|
240.1 % |
|
Loss related to warrant liabilities, net |
|
— |
|
(463) |
|
463 |
|
N/M |
|
Interest and other income (expense), net 1 |
|
(20,980) |
|
8,359 |
|
(29,339) |
|
N/M |
|
INCOME BEFORE TAXES |
13,337 |
|
17,985 |
|
(4,648) |
|
(25.8) % |
|
|
Income tax benefit 2 |
|
32,834 |
|
1,022 |
|
31,812 |
|
N/M |
|
NET INCOME |
|
46,171 |
|
19,007 |
|
27,164 |
|
142.9 % |
|
Net income attributable to non-controlling interest |
(25,323) |
|
(14,122) |
|
11,201 |
|
79.3 % |
|
|
Accretion of Series A Convertible Preferred Stock |
(1,903) |
|
(1,875) |
|
28 |
|
1.5 % |
|
|
NET INCOME ATTRIBUTABLE TO CLASS A COMMON STOCKHOLDERS |
$ 18,945 |
|
$ 3,010 |
|
$ 15,935 |
|
529.4 % |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share of Class A Common Stock: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ 0.18 |
|
$ 0.03 |
|
|
|
|
|
Diluted |
|
$ 0.11 |
|
$ 0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of Class A Common Stock outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
96,167 |
|
89,691 |
|
|
|
|
|
Diluted |
|
347,240 |
|
89,691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M = Not meaningful |
|
1 Includes a $29.2 million loss related to changes in the value of the TRA liability. |
|
2 Includes $38.1 million gain related to the release of a portion of the valuation allowance. |
|
Hagerty, Inc. |
||||||||
|
Condensed Consolidated Statements of Operations (Unaudited) |
||||||||
|
|
||||||||
|
|
|
Nine months ended September 30, |
||||||
|
|
|
2025 |
|
2024 |
|
$ Change |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
REVENUE: |
|
in thousands (except percentages and per share amounts) |
||||||
|
Commission and fee revenue |
$ 380,677 |
|
$ 333,817 |
|
$ 46,860 |
|
14.0 % |
|
|
Earned premium, net |
534,179 |
|
474,917 |
|
59,262 |
|
12.5 % |
|
|
Membership, marketplace and other revenue |
153,430 |
|
99,573 |
|
53,857 |
|
54.1 % |
|
|
Total revenue |
|
1,068,286 |
|
908,307 |
|
159,979 |
|
17.6 % |
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
191,275 |
|
161,001 |
|
30,274 |
|
18.8 % |
|
Ceding commissions, net |
|
247,682 |
|
221,877 |
|
25,805 |
|
11.6 % |
|
Losses and loss adjustment expenses |
|
224,969 |
|
226,515 |
|
(1,546) |
|
(0.7) % |
|
Sales expense |
|
199,678 |
|
146,791 |
|
52,887 |
|
36.0 % |
|
General and administrative expenses |
|
69,204 |
|
62,072 |
|
7,132 |
|
11.5 % |
|
Depreciation and amortization |
|
27,734 |
|
29,758 |
|
(2,024) |
|
(6.8) % |
|
Gain related to divestiture |
|
— |
|
(87) |
|
87 |
|
N/M |
|
Total operating expenses |
|
960,542 |
|
847,927 |
|
112,615 |
|
13.3 % |
|
OPERATING INCOME |
|
107,744 |
|
60,380 |
|
47,364 |
|
78.4 % |
|
Loss related to warrant liabilities, net |
|
— |
|
(8,544) |
|
8,544 |
|
N/M |
|
Interest and other income (expense), net 1 |
|
(8,262) |
|
27,945 |
|
(36,207) |
|
(129.6) % |
|
INCOME BEFORE TAXES |
99,482 |
|
79,781 |
|
19,701 |
|
24.7 % |
|
|
Income tax (expense) benefit 2 |
|
21,184 |
|
(9,918) |
|
31,102 |
|
N/M |
|
NET INCOME |
|
120,666 |
|
69,863 |
|
50,803 |
|
72.7 % |
|
Net income attributable to non-controlling interest |
(80,474) |
|
(55,951) |
|
24,523 |
|
43.8 % |
|
|
Accretion of Series A Convertible Preferred Stock |
(5,653) |
|
(5,552) |
|
101 |
|
1.8 % |
|
|
NET INCOME ATTRIBUTABLE TO CLASS A COMMON STOCKHOLDERS |
$ 34,539 |
|
$ 8,360 |
|
$ 26,179 |
|
313.1 % |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share of Class A Common Stock: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ 0.35 |
|
$ 0.09 |
|
|
|
|
|
Diluted |
|
$ 0.29 |
|
$ 0.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of Class A Common Stock outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
92,326 |
|
86,689 |
|
|
|
|
|
Diluted |
|
346,672 |
|
87,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M = Not meaningful |
|
1 Includes a $32.3 million loss related to changes in the value of the TRA liability. |
|
2 Includes $38.1 million gain related to the release of a portion of the valuation allowance. |
|
Hagerty, Inc. |
||||
|
Condensed Consolidated Balance Sheets (Unaudited) |
||||
|
|
||||
|
|
|
September 30, |
|
December 31, |
|
|
|
2025 |
|
2024 |
|
|
|
|
|
|
|
ASSETS |
|
in thousands (except share amounts) |
||
|
Current Assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ 160,386 |
|
$ 104,784 |
|
Restricted cash and cash equivalents |
|
172,261 |
|
128,061 |
|
Investments |
|
130,147 |
|
73,957 |
|
Accounts receivable |
|
107,476 |
|
84,763 |
|
Premiums receivable |
|
230,919 |
|
153,748 |
|
Commissions receivable |
|
27,404 |
|
20,430 |
|
Notes receivable |
|
94,158 |
|
45,417 |
|
Deferred acquisition costs, net |
|
192,496 |
|
156,466 |
|
Other current assets |
|
99,073 |
|
90,779 |
|
Total current assets |
|
1,214,320 |
|
858,405 |
|
Investments |
|
543,772 |
|
515,570 |
|
Notes receivable |
|
17,807 |
|
11,555 |
|
Lease right-of-use assets |
|
42,229 |
|
44,485 |
|
Intangible assets, net |
|
88,452 |
|
90,107 |
|
Goodwill |
|
114,150 |
|
114,123 |
|
Deferred tax assets |
|
45,265 |
|
— |
|
Other long-term assets |
|
85,960 |
|
75,093 |
|
TOTAL ASSETS |
|
$ 2,151,955 |
|
$ 1,709,338 |
|
LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
Accounts payable, accrued expenses and other current liabilities |
|
$ 147,868 |
|
$ 104,496 |
|
Current portion of long-term debt |
|
73,118 |
|
792 |
|
Losses payable and provision for unpaid losses and loss adjustment expenses |
|
276,678 |
|
266,878 |
|
Ceding commissions payable |
|
107,473 |
|
77,389 |
|
Advance premiums and due to insurers |
|
171,616 |
|
108,352 |
|
Unearned premiums |
|
439,395 |
|
357,539 |
|
Total current liabilities |
|
1,216,148 |
|
915,446 |
|
Long-term lease liabilities |
|
40,511 |
|
43,178 |
|
Long-term debt, net |
|
104,386 |
|
104,968 |
|
Deferred tax liability |
|
24,185 |
|
18,065 |
|
Tax receivable agreement liability |
|
37,913 |
|
1,956 |
|
Other long-term liabilities |
|
14,021 |
|
17,556 |
|
TOTAL LIABILITIES |
|
1,437,164 |
|
1,101,169 |
|
Commitments and Contingencies |
|
— |
|
— |
|
TEMPORARY EQUITY 1 |
|
|
|
|
|
Preferred stock, $0.0001 par value (20,000,000 shares authorized, 8,483,561 Series A Convertible Preferred Stock issued and outstanding as of September 30, 2025 and December 31, 2024) |
84,716 |
|
84,663 |
|
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
Class A Common Stock, $0.0001 par value (500,000,000 shares authorized, 100,426,473 and 90,032,391 issued and outstanding as of September 30, 2025 and December 31, 2024, respectively) |
10 |
|
9 |
|
|
Class V Common Stock, $0.0001 par value (300,000,000 authorized, 241,552,156 and 251,033,906 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively) |
24 |
|
25 |
|
|
Additional paid-in capital |
|
622,405 |
|
603,780 |
|
Accumulated earnings (deficit) |
|
(411,786) |
|
(451,978) |
|
Accumulated other comprehensive income (loss) |
|
998 |
|
(1,514) |
|
Total stockholders' equity |
|
211,651 |
|
150,322 |
|
Non-controlling interest |
|
418,424 |
|
373,184 |
|
Total equity |
|
630,075 |
|
523,506 |
|
TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY |
|
$ 2,151,955 |
|
$ 1,709,338 |
|
|
|
|
|
|
|
1 |
The Series A Convertible Preferred Stock is recorded within Temporary Equity because it has equity conversion and cash redemption features. |
|
Hagerty, Inc. |
|||
|
Condensed Consolidated Statements of Cash Flows (Unaudited) |
|||
|
|
|||
|
|
Nine months ended September 30, |
||
|
|
2025 |
|
2024 |
|
OPERATING ACTIVITIES: |
in thousands |
||
|
Net income |
$ 120,666 |
|
$ 69,863 |
|
Adjustments to reconcile net income to net cash from operating activities: |
|
|
|
|
Loss on disposals of equipment, software and other assets |
1,440 |
|
401 |
|
Loss related to warrant liabilities, net |
— |
|
8,544 |
|
Expense related to tax receivable agreement liability |
32,275 |
|
1,322 |
|
Depreciation and amortization |
27,734 |
|
29,758 |
|
Provision for deferred taxes |
(34,413) |
|
2,772 |
|
Share-based compensation expense |
14,627 |
|
13,018 |
|
Non-cash lease expense |
6,590 |
|
5,920 |
|
Realized (gain) loss on investments, net |
(2,150) |
|
(1,783) |
|
(Accretion) amortization of discount and premium, net |
(3,489) |
|
(1,755) |
|
Other |
1,681 |
|
1,775 |
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts, premiums and commissions receivable |
(124,250) |
|
(28,062) |
|
Deferred acquisition costs, net |
(36,030) |
|
(26,998) |
|
Losses payable and provision for unpaid losses and loss adjustment expenses |
9,800 |
|
60,328 |
|
Ceding commissions payable |
30,084 |
|
(14,734) |
|
Advance premiums and due to insurers |
62,583 |
|
48,752 |
|
Unearned premiums |
81,855 |
|
68,344 |
|
Operating lease assets and liabilities |
(6,876) |
|
(6,781) |
|
Other assets and liabilities, net |
7,758 |
|
(41,042) |
|
Net Cash Provided by Operating Activities |
189,885 |
|
189,642 |
|
INVESTING ACTIVITIES: |
|
|
|
|
Capital expenditures |
(18,499) |
|
(17,278) |
|
Acquisitions, net of cash acquired, and other investments |
(2,125) |
|
(23,865) |
|
Issuance of notes receivable |
(49,095) |
|
(55,030) |
|
Collection of notes receivable |
14,832 |
|
32,099 |
|
Purchases of fixed maturity securities |
(223,055) |
|
(565,838) |
|
Proceeds from sales of fixed maturity securities |
41,173 |
|
53,253 |
|
Proceeds from maturities of fixed maturity securities |
122,196 |
|
23,766 |
|
Purchases of equity securities |
(10,565) |
|
(10,602) |
|
Proceeds from sales of equity securities |
911 |
|
— |
|
Other investing activities |
1,421 |
|
1,005 |
|
Net Cash Used in Investing Activities |
(122,806) |
|
(562,490) |
|
FINANCING ACTIVITIES: |
|
|
|
|
Payments on long-term debt |
(170,673) |
|
(63,202) |
|
Proceeds from long-term debt, net of issuance costs |
240,701 |
|
52,718 |
|
Distributions paid to non-controlling interest unit holders |
(30,547) |
|
(5,320) |
|
Payment of Series A Convertible Preferred Stock dividends |
(5,600) |
|
(5,600) |
|
Funding of tax receivable agreement payments |
(223) |
|
— |
|
Funding of employee tax obligations upon vesting of share-based payments |
(3,536) |
|
(5,713) |
|
Other financing activities |
289 |
|
— |
|
Net Cash Provided by (Used in) Financing Activities |
30,411 |
|
(27,117) |
|
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents |
2,312 |
|
(882) |
|
|
|
|
|
|
Change in cash and cash equivalents and restricted cash and cash equivalents |
99,802 |
|
(400,847) |
|
Beginning cash and cash equivalents and restricted cash and cash equivalents |
232,845 |
|
724,276 |
|
Ending cash and cash equivalents and restricted cash and cash equivalents |
$ 332,647 |
|
$ 323,429 |
Hagerty, Inc.
Key Performance Indicators and Certain Non-GAAP Financial Measures
Key Performance Indicators
The tables below present a summary of our Key Performance Indicators, which include important operational metrics, as well as certain financial measures prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and non-GAAP financial measures. We use these Key Performance Indicators to evaluate our business, measure our performance, identify trends against planned initiatives, prepare financial projections, and make strategic decisions. We believe these Key Performance Indicators are useful in evaluating our performance when read together with our Condensed Consolidated Financial Statements prepared in accordance with GAAP.
|
|
|
Three months ended September 30, |
||||||
|
|
|
2025 |
|
2024 |
|
Change |
||
|
Operational Metrics |
|
dollars in thousands (except per share amounts) |
||||||
|
Total Written Premium |
|
$ 334,048 |
|
$ 287,609 |
|
$ 46,439 |
|
16.1 % |
|
Hagerty Re Loss Ratio |
|
42.0 % |
|
60.0 % |
|
(18.0) % |
|
N/M |
|
Hagerty Re Combined Ratio |
|
89.6 % |
|
107.7 % |
|
(18.1) % |
|
N/M |
|
New Business Count — Insurance |
|
114,513 |
|
77,418 |
|
37,095 |
|
47.9 % |
|
|
|
|
|
|
|
|
|
|
|
GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
Total Revenue |
|
$ 379,994 |
|
$ 323,374 |
|
$ 56,620 |
|
17.5 % |
|
Operating Income |
|
$ 34,317 |
|
$ 10,089 |
|
$ 24,228 |
|
240.1 % |
|
Net Income |
|
$ 46,171 |
|
$ 19,007 |
|
$ 27,164 |
|
142.9 % |
|
Basic Earnings Per Share |
|
$ 0.18 |
|
$ 0.03 |
|
$ 0.15 |
|
N/M |
|
Diluted Earnings Per Share |
|
$ 0.11 |
|
$ 0.03 |
|
$ 0.08 |
|
N/M |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ 49,714 |
|
$ 24,165 |
|
$ 25,549 |
|
105.7 % |
|
Adjusted Earnings Per Share |
|
$ 0.13 |
|
$ 0.05 |
|
$ 0.08 |
|
160.0 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, |
||||||
|
|
|
2025 |
|
2024 |
|
Change |
||
|
|
|
|
|
|
|
|
|
|
|
Operational Metrics |
|
dollars in thousands (except per share amounts) |
||||||
|
Total Written Premium |
|
$ 934,360 |
|
$ 827,068 |
|
$ 107,292 |
|
13.0 % |
|
Hagerty Re Loss Ratio |
|
42.1 % |
|
47.7 % |
|
(5.6) % |
|
N/M |
|
Hagerty Re Combined Ratio |
|
89.3 % |
|
95.1 % |
|
(5.8) % |
|
N/M |
|
New Business Count — Insurance |
|
257,694 |
|
225,753 |
|
31,941 |
|
14.1 % |
|
|
|
|
|
|
|
|
|
|
|
GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
Total Revenue |
|
$ 1,068,286 |
|
$ 908,307 |
|
$ 159,979 |
|
17.6 % |
|
Operating Income |
|
$ 107,744 |
|
$ 60,380 |
|
$ 47,364 |
|
78.4 % |
|
Net Income |
|
$ 120,666 |
|
$ 69,863 |
|
$ 50,803 |
|
72.7 % |
|
Basic Earnings Per Share |
|
$ 0.35 |
|
$ 0.09 |
|
$ 0.26 |
|
N/M |
|
Diluted Earnings Per Share |
|
$ 0.29 |
|
$ 0.09 |
|
$ 0.20 |
|
N/M |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ 153,066 |
|
$ 104,605 |
|
$ 48,461 |
|
46.3 % |
|
Adjusted Earnings Per Share |
|
$ 0.34 |
|
$ 0.22 |
|
$ 0.12 |
|
54.5 % |
|
|
|
|
|
|
|
|
|
|
|
N/M = Not meaningful |
|
|
|
September 30, |
|
December 31, |
|
|
|
|
|
|
|
2025 |
|
2024 |
|
Change |
||
|
Operational Metrics |
|
|
|
|
|
|
|
|
|
Policies in Force |
|
1,617,231 |
|
1,506,451 |
|
110,780 |
|
7.4 % |
|
Policies in Force Retention |
|
88.6 % |
|
89.0 % |
|
(0.4) % |
|
N/M |
|
Vehicles in Force |
|
2,739,037 |
|
2,576,700 |
|
162,337 |
|
6.3 % |
|
HDC Paid Member Count |
|
920,725 |
|
875,822 |
|
44,903 |
|
5.1 % |
|
Net Promoter Score (NPS) |
|
82 |
|
82 |
|
— |
|
— % |
|
|
|
|
|
|
|
|
|
|
|
N/M = Not meaningful |
|
|
Non-GAAP Financial Measures
Adjusted EBITDA
We define Adjusted EBITDA as consolidated Net income, excluding net interest and other income (expense), income tax expense, and depreciation and amortization, further adjusted to exclude (i) net gains and losses related to our warrant liabilities prior to the warrant exchange transaction that closed in July 2024 (the "Warrant Exchange"); (ii) share-based compensation expense; and when applicable, (iii) restructuring, impairment and related charges; (iv) gains, losses and impairments related to divestitures; and (v) certain other unusual items.
We present Adjusted EBITDA because we consider it to be an important supplemental measure of our performance and believe it is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. Management uses Adjusted EBITDA as a measure of the operating performance of our business on a consistent basis, as it removes the impact of items not directly resulting from our core operations.
By providing this non-GAAP financial measure, together with a reconciliation to Net income, which is the most comparable GAAP measure, we believe we are enhancing investors' understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. However, Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation, or as an alternative to, or a substitute for Net income or other financial statement data presented in our Condensed Consolidated Financial Statements as indicators of financial performance. Our definition of Adjusted EBITDA may be different than similarly titled measures used by other companies in our industry, which could reduce the usefulness of this non-GAAP financial measure when comparing our performance to that of other companies.
The following table reconciles Adjusted EBITDA to the most directly comparable GAAP measure, which is Net income:
|
|
|
Three months ended |
|
Nine months ended |
||||
|
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|
|
in thousands |
||||||
|
Net income |
$ 46,171 |
|
$ 19,007 |
|
$ 120,666 |
|
$ 69,863 |
|
|
Interest and other (income) expense, net 1, 2 |
20,980 |
|
(8,359) |
|
8,262 |
|
(27,945) |
|
|
Income tax expense (benefit) 3 |
(32,834) |
|
(1,022) |
|
(21,184) |
|
9,918 |
|
|
Depreciation and amortization |
9,413 |
|
9,184 |
|
27,734 |
|
29,758 |
|
|
EBITDA |
43,730 |
|
18,810 |
|
135,478 |
|
81,594 |
|
|
Loss related to warrant liabilities, net |
— |
|
463 |
|
— |
|
8,544 |
|
|
Share-based compensation expense |
5,089 |
|
4,092 |
|
14,627 |
|
13,018 |
|
|
Gain related to divestiture |
|
— |
|
— |
|
— |
|
(87) |
|
Other unusual items 4 |
895 |
|
800 |
|
2,961 |
|
1,536 |
|
|
Adjusted EBITDA |
$ 49,714 |
|
$ 24,165 |
|
$ 153,066 |
|
$ 104,605 |
|
|
|
|
|
|
|
|
|
|
|
|
1 |
Excludes interest expense related to the BAC Credit Facility, which is recorded within "Sales expense" in the Condensed Consolidated Statements of Operations. |
|
2 |
Principally includes interest income, net investment income related to our investment portfolio, and interest expense, as well as changes in the value of the TRA liability, which totaled $29.2 million and $32.3 million during the three and nine months ended September 30, 2025, respectively, and $1.3 million during the three and nine months ended September 30, 2024. |
|
3 |
Income tax expense (benefit) for the three and nine months ended September 30, 2025 includes a $38.1 million benefit related to the release of a portion of the valuation allowance against our deferred tax assets. |
|
4 |
For the three and nine months ended September 30, 2025, other unusual items includes certain legal settlement expenses, professional fees associated with the THG Unit Exchange and related secondary offering, and certain material severance expenses. For the three and nine months ended September 30, 2024, other unusual items includes professional fees associated with the Warrant Exchange. |
|
|
|
The following table reconciles Adjusted EBITDA for the year ended December 31, 2025 Outlook to the most directly comparable GAAP measure, which is Net income:
|
|
|
2025 Low |
|
2025 High |
|
|
|
in thousands |
||
|
Net income |
$ 124,000 |
|
$ 129,000 |
|
|
Interest and other (income) expense, net 1, 2 |
— |
|
— |
|
|
Income tax expense (benefit) 3 |
(13,000) |
|
(12,000) |
|
|
Depreciation and amortization |
39,000 |
|
39,000 |
|
|
Share-based compensation expense |
20,000 |
|
20,000 |
|
|
Adjusted EBITDA |
$ 170,000 |
|
$ 176,000 |
|
|
|
|
|
|
|
|
1 |
Excludes interest expense related to the BAC Credit Facility, which is recorded within "Sales expense" in the Condensed Consolidated Statements of Operations. |
|
2 |
Principally includes interest income, net investment income related to our investment portfolio, and interest expense, as well as changes in the value of the TRA liability ($32.3 million of expense incurred through the third quarter of 2025). |
|
3 |
Income tax expense (benefit) includes $38.1 million benefit related to the release of a portion of the valuation allowance against our deferred tax assets. |
|
|
|
Adjusted EPS
We define Adjusted Earnings Per Share ("Adjusted EPS") as consolidated Net income, excluding net gains and losses related to our warrant liabilities prior to the Warrant Exchange, divided by our outstanding and total potentially dilutive securities, which includes (i) the weighted average issued and outstanding shares of Class A Common Stock; (ii) all issued and outstanding non-controlling interest units of THG; (iii) all issued and outstanding shares of our Series A Convertible Preferred Stock on an as-converted basis; and (iv) all unissued share-based compensation awards.
The most directly comparable GAAP measure to Adjusted EPS is basic earnings per share ("Basic EPS"), which is calculated as Net income available to Class A Common Stockholders divided by the weighted average number of Class A Common Stock shares outstanding during the period.
We present Adjusted EPS because we consider it to be an important supplemental measure of our operating performance and believe it is used by securities analysts, investors and other interested parties in evaluating the consolidated performance of other companies in our industry. We also believe that Adjusted EPS, which compares our consolidated Net income with our weighted average number of Class A Common Stock shares outstanding and potentially dilutive shares, provides useful information to investors regarding our performance on a consolidated and diluted basis.
Management uses Adjusted EPS (i) as a measure of the operating performance of our business on a consolidated and diluted basis; (ii) to evaluate the performance and effectiveness of our operational strategies; and (iii) as a preferred predictor of core operating performance, comparisons to prior periods and competitive positioning.
We caution investors that Adjusted EPS is not a recognized measure under GAAP and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, including Basic EPS, and that Adjusted EPS, as we define it, may be defined or calculated differently by other companies. In addition, Adjusted EPS has limitations as an analytical tool and should not be considered as a measure of profit or loss per share.
The following table reconciles Adjusted EPS to the most directly comparable GAAP measure, which is Basic EPS:
|
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
||||
|
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|
|
in thousands (except per share amounts) |
||||||
|
Numerator: |
|
|
|
|
|
|
|
|
|
Net income available to Class A Common Stockholders 1 |
$ 17,696 |
|
$ 2,798 |
|
$ 32,174 |
|
$ 7,753 |
|
|
Accretion of Series A Convertible Preferred Stock |
1,903 |
|
1,875 |
|
5,653 |
|
5,552 |
|
|
Undistributed earnings allocated to Series A Convertible Preferred Stock |
1,249 |
|
212 |
|
2,365 |
|
607 |
|
|
Net income attributable to non-controlling interest |
25,323 |
|
14,122 |
|
80,474 |
|
55,951 |
|
|
Consolidated net income |
46,171 |
|
19,007 |
|
120,666 |
|
69,863 |
|
|
Loss related to warrant liabilities, net |
— |
|
463 |
|
— |
|
8,544 |
|
|
Adjusted consolidated net income 2 |
$ 46,171 |
|
$ 19,470 |
|
$ 120,666 |
|
$ 78,407 |
|
|
|
|
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
|
|
|
Weighted average shares of Class A Common Stock outstanding 1 |
96,167 |
|
89,691 |
|
92,326 |
|
86,689 |
|
|
Total potentially dilutive securities outstanding: |
|
|
|
|
|
|
|
|
|
Non-controlling interest THG units |
245,616 |
|
255,178 |
|
245,616 |
|
255,178 |
|
|
Series A Convertible Preferred Stock, on an as-converted basis |
6,785 |
|
6,785 |
|
6,785 |
|
6,785 |
|
|
Total unissued share-based compensation awards |
8,374 |
|
8,076 |
|
8,374 |
|
8,076 |
|
|
Potentially dilutive shares outstanding |
260,775 |
|
270,039 |
|
260,775 |
|
270,039 |
|
|
Dilutive shares outstanding 2 |
356,942 |
|
359,730 |
|
353,101 |
|
356,728 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS 1 |
$ 0.18 |
|
$ 0.03 |
|
$ 0.35 |
|
$ 0.09 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS 2 |
$ 0.13 |
|
$ 0.05 |
|
$ 0.34 |
|
$ 0.22 |
|
|
|
|
|
|
|
|
|
|
|
|
1 |
Numerator and Denominator of the GAAP measure Basic EPS |
|
2 |
Numerator and Denominator of the non-GAAP measure Adjusted EPS |
SOURCE Hagerty
| 1 hour | |
| 8 hours | |
| 10 hours | |
| 11 hours | |
| 13 hours | |
| Nov-03 | |
| Nov-03 | |
| Nov-03 | |
| Oct-31 | |
| Oct-22 | |
| Oct-21 | |
| Oct-17 | |
| Oct-15 | |
| Oct-14 | |
| Sep-30 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite