Hagerty (NYSE:HGTY) Issues Quarterly Earnings Results, Beats Expectations By $0.04 EPS

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

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 stock traded down $0.30 during midday trading on Friday, reaching $11.79. 92,420 shares of the company’s stock traded hands, compared to its average volume of 112,241. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.17. The company has a market cap of $4.03 billion, a price-to-earnings ratio of 42.27 and a beta of 0.89. Hagerty has a 1-year low of $8.03 and a 1-year high of $14.00. The company has a 50-day simple moving average of $12.62 and a two-hundred day simple moving average of $12.28.

Hagerty News Summary

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. ~$323.9M expected, showing stronger demand and underwriting/fee performance for the quarter. Read More.
• Positive Sentiment: Strong full‑year 2025 results — total revenue +17% to $1.456B, written premium +14% to $1.194B, net income +91% to $149M, adjusted EBITDA +46% to $237M, and a record 371k new members; marketplace revenue doubled (~+119%). These operational gains support longer‑term growth prospects. Read More.
• Neutral Sentiment: Management outlined a 2026 written premium growth target of 15–16% — a clear growth target but one that depends on execution and the new fronting arrangement; this is a growth signal but not definitive on margins. Read More.
• Neutral Sentiment: New Markel fronting deal will reshape how insurance revenue is reported — the arrangement can lower Hagerty’s direct underwriting exposure and change revenue composition (more fee‑based vs. premium‑retained), making year‑over‑year comparability trickier. Investors should monitor slide deck/call details for the financial mechanics. Read More.
• Neutral Sentiment: Earnings call and transcript provide detail on mix and strategy — read management commentary for assumptions behind 2026 guidance and the timing/impact of the Markel agreement. Read More.
• Negative Sentiment: 2026 revenue guidance came in below some Street expectations — the company’s revenue target (~$1.3B reported in pre‑market notes) trails the ~ $1.4B consensus cited by analysts, which contributed to a cautious investor reaction despite the quarterly beat. Read More.

Insider Activity at Hagerty

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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. In the last three months, insiders have sold 351,350 shares of company stock worth $4,474,572. Insiders own 16.70% of the company’s stock.

Institutional Trading of Hagerty

Hedge funds and other institutional investors have recently modified their holdings of the stock. Goldman Sachs Group Inc. boosted its stake in shares of Hagerty by 24.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 37,383 shares of the company’s stock worth $338,000 after acquiring an additional 7,459 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Hagerty by 2.0% in the second quarter. Geode Capital Management LLC now owns 254,634 shares of the company’s stock worth $2,576,000 after acquiring an additional 5,077 shares during the last quarter. Marshall Wace LLP boosted its position in Hagerty by 37.2% in the second quarter. Marshall Wace LLP now owns 22,405 shares of the company’s stock valued at $227,000 after buying an additional 6,072 shares in the last quarter. Bank of America Corp DE grew its stake in shares of Hagerty by 46.6% during the second quarter. Bank of America Corp DE now owns 8,571 shares of the company’s stock worth $87,000 after buying an additional 2,726 shares during the last quarter. Finally, Osaic Holdings Inc. increased its holdings in Hagerty by 2,374.5% in the 2nd quarter. Osaic Holdings Inc. now owns 4,949 shares of the company’s stock worth $50,000 after purchasing an additional 4,749 shares in the last quarter. Institutional investors and hedge funds own 20.51% of the company’s stock.

Wall Street Analysts Forecast Growth

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