Hagerty (NYSE:HGTY) Announces Earnings Results

Hagerty (NYSE:HGTY) announced its earnings results on Thursday. The company reported $0.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.04 by $0.04, Zacks reports. The business had revenue of $388.10 million for the quarter, compared to analysts’ expectations of $323.93 million. Hagerty had a return on equity of 16.80% and a net margin of 5.98%.

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 Trading Down 2.8%

HGTY opened at $11.76 on Friday. 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 capitalization of $4.02 billion, a P/E ratio of 35.62 and a beta of 0.89. The stock’s fifty day moving average is $12.60 and its two-hundred day moving average is $12.29. Hagerty has a 52 week low of $8.03 and a 52 week high of $14.00.

Hagerty News Roundup

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, ahead of estimates, showing quarter‑over‑quarter strength. Zacks: Q4 Earnings and Revenues Beat
• Positive Sentiment: Strong full‑year 2025 results — Revenue +17% to $1,456M, written premium +14% to $1,194M, net income +91% to $149M, adjusted EBITDA +46%, and record 371,000 new members; marketplace revenue doubled. These metrics support growth visibility and margin improvement. PR Newswire: Full Year 2025 Results
• Positive Sentiment: 2026 written‑premium growth guided to 15–16% — management expects continued strong premium expansion, which supports long‑term top‑line growth despite changes in revenue recognition from the new fronting arrangement. Seeking Alpha: 2026 Written Premium Guidance
• Neutral Sentiment: New Markel fronting deal will reshape revenue mix and recognition — the fronting arrangement transfers underwriting risk and changes how insurance revenue is reported, complicating near‑term top‑line comparability but potentially reducing capital/operational intensity. Investors need to parse reported revenue vs. underlying premium trends. Seeking Alpha: Markel Fronting Deal
• Negative Sentiment: Revenue guidance came in below some Street expectations — commentary and guidance roundings signaled FY2026 revenue nearer to ~$1.3B versus some consensus nearer to $1.4B, prompting concern on near‑term top‑line and driving a mixed market reaction. Investing.com: Mixed Outlook
• Negative Sentiment: Market reaction and volume — investors are parsing the beat vs. the shifted revenue picture; shares have traded lower on the mixed outlook with above‑average volume as traders reassess near‑term growth vs. longer‑term economics. MarketBeat: Trading Snapshot

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on HGTY shares. Weiss Ratings restated a “hold (c+)” rating on shares of Hagerty in a research note on Monday, December 29th. JPMorgan Chase & Co. lifted their price objective on shares of Hagerty from $12.00 to $13.00 and gave the company a “neutral” rating in a research report on Wednesday, January 7th. Keefe, Bruyette & Woods boosted their target price on shares of Hagerty from $14.00 to $15.00 and gave the stock an “outperform” rating in a report on Wednesday, November 12th. Finally, Wall Street Zen cut 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 given a Hold rating to the stock. According to data from MarketBeat, Hagerty currently has an average rating of “Moderate Buy” and a consensus price target of $14.00.

Insider Transactions at Hagerty

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

Institutional Trading of Hagerty

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

About Hagerty

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.