Hagerty (NYSE:HGTY) Announces Quarterly Earnings Results

Hagerty (NYSE:HGTY) released its quarterly earnings data on Thursday. The company reported $0.08 EPS for the quarter, beating the consensus estimate of $0.04 by $0.04, Zacks reports. The business had revenue of $388.10 million for the quarter, compared to the consensus estimate of $323.93 million. Hagerty had a net margin of 5.85% and a return on equity of 16.85%.

Here are the key takeaways from Hagerty’s conference call:

• Hagerty delivered a strong 2025 — revenue +17%, net income +91% to $149 million, record 371,000 new members, and operating cash flow of $219 million (a $21 million reserve reduction also helped earnings).
• The company implemented a strategic Markel fronting arrangement (retaining 100% of U.S. premium starting Jan 1, 2026), which management says increases potential underwriting profitability and investment income and captures full economics of the core book.
• The fronting change creates significant 2026 GAAP noise — elimination of commission revenue will lower reported revenue to ~$1.28–1.30B and a remaining ~$190 million of previously paid ceding commission will be amortized through 2026, driving a guided net loss of -$41M to -$51M despite healthy underlying performance.
• Management expects continued growth in 2026 with written premium +15%–16%, driven by State Farm conversions, expansion of Enthusiast Plus, B2B/distribution initiatives, claims investments, and technology migration (Duck Creek) as part of a plan to reach 3 million policies by 2030.
• Marketplace and Broad Arrow are high-growth engines — Marketplace revenue more than doubled (to $119M for 2025), total vehicle transactions reached $624M, Broad Arrow expanded into Europe and is now a top global auction player, though that revenue stream remains lumpier than insurance.

Hagerty Price Performance

HGTY traded up $0.44 during trading on Thursday, hitting $12.06. 268,400 shares of the company traded hands, compared to its average volume of 79,851. The stock’s 50-day simple moving average is $12.62 and its two-hundred day simple moving average is $12.28. Hagerty has a 1 year low of $8.03 and a 1 year high of $14.00. The company has a market cap of $4.13 billion, a PE ratio of 43.07 and a beta of 0.89. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.17.

Insiders Place Their Bets

In related news, insider Kenneth Ahn sold 50,000 shares of the business’s stock in a transaction that occurred on Monday, January 26th. The shares were sold at an average price of $12.41, for a total transaction of $620,500.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Over the last 90 days, insiders have sold 351,350 shares of company stock valued at $4,474,572. Corporate insiders own 16.70% of the company’s stock.

Hedge Funds Weigh In On Hagerty

Several large investors have recently modified their holdings of the business. Vanguard Group Inc. boosted its position in shares of Hagerty by 32.3% in the third quarter. Vanguard Group Inc. now owns 3,456,174 shares of the company’s stock worth $41,612,000 after acquiring an additional 843,433 shares during the last quarter. Polar Capital Holdings Plc grew its stake in Hagerty by 9.4% in the third quarter. Polar Capital Holdings Plc now owns 5,817,416 shares of the company’s stock worth $70,042,000 after purchasing an additional 498,389 shares in the last quarter. Woodline Partners LP acquired a new stake in shares of Hagerty during the third quarter worth $3,339,000. Neuberger Berman Group LLC boosted its position in Hagerty by 2.8% during the 4th quarter. Neuberger Berman Group LLC now owns 8,269,620 shares of the company’s stock valued at $111,144,000 after purchasing an additional 221,834 shares during the period. Finally, Brown Advisory Inc. bought a new position in Hagerty in the 4th quarter worth approximately $1,465,000. Institutional investors and hedge funds own 20.51% of the company’s stock.

Trending Headlines about Hagerty

Here are the key news stories impacting Hagerty this week:

• Positive Sentiment: Q4 beat on both EPS and revenue — Hagerty reported $0.08 EPS vs. $0.04 consensus and revenue of $388.1M vs. ~$324M expected, showing margin improvement and supporting the stock’s move higher. Hagerty, Inc. (HGTY) Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: Strong full‑year 2025 metrics — revenue +17% to $1.456B, written premium +14% to $1.194B, net income +91%, adjusted EBITDA +46%, and a record 371k new members; these fundamentals support the bullish reaction. Hagerty Reports Full Year 2025 Results; Provides 2026 Growth Outlook
• Positive Sentiment: Marketplace business and member growth showing meaningful expansion (marketplace revenue +119%), indicating higher-margin diversification beyond insurance underwriting. Hagerty Reports Full Year 2025 Results; Provides 2026 Growth Outlook
• Neutral Sentiment: Management unveiled a 2026 written premium growth target of 15–16% and described a new fronting arrangement with Markel that will reshape how revenue is reported — potentially improving capital efficiency but complicating near‑term revenue comparability. Hagerty outlines 15–16% written premium growth for 2026 as new Markel fronting deal reshapes revenue
• Neutral Sentiment: Investors can review management’s detailed commentary in the Q4 earnings call transcript to assess recurring vs. nonrecurring drivers and capital/underwriting implications. Hagerty, Inc. (HGTY) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Revenue guidance appears conservative vs. Street estimates — management’s top‑line guidance (~$1.3B) is below consensus (~$1.4B), creating near‑term downside risk if investors focus on revenue growth versus the shifted revenue mix. Hagerty beats Q4 estimates, shares edge up on mixed outlook

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on HGTY. JPMorgan Chase & Co. upped their price target on shares of Hagerty from $12.00 to $13.00 and gave the stock a “neutral” rating in a report on Wednesday, January 7th. Wall Street Zen lowered shares of Hagerty from a “buy” rating to a “hold” rating in a report on Saturday, February 14th. Keefe, Bruyette & Woods upped their target price on Hagerty from $14.00 to $15.00 and gave the company an “outperform” rating in a report on Wednesday, November 12th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Hagerty in a research report on Monday, December 29th. Four equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $14.00.

Hagerty Company Profile

Hagerty is a specialized automotive lifestyle and insurance company that caters primarily to collectible car enthusiasts. Its core business centers on offering classic vehicle insurance policies designed to protect antique, vintage and specialty automobiles, motorcycles and boats. These policies typically feature agreed-value coverage, flexible usage options and access to restoration services, aligning with the unique needs of collectors and hobbyists.

Beyond insurance, Hagerty operates a comprehensive suite of community and content services under its automotive lifestyle brand.