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

Hagerty (NYSE:HGTY) issued 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 return on equity of 16.85% and a net margin of 5.85%.The firm had revenue of $388.10 million for the quarter, compared to analyst estimates 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 Stock Up 3.8%

Shares of HGTY traded up $0.44 during mid-day trading on Thursday, reaching $12.06. The company had a trading volume of 268,400 shares, compared to its average volume of 79,851. Hagerty has a 52 week low of $8.03 and a 52 week high of $14.00. The company has a debt-to-equity ratio of 0.17, a quick ratio of 1.00 and a current ratio of 1.00. The company has a market capitalization of $4.13 billion, a price-to-earnings ratio of 43.07 and a beta of 0.89. The firm has a 50-day moving average price of $12.62 and a 200 day moving average price of $12.28.

Insider Activity

In related news, insider Kenneth Ahn sold 164,870 shares of the stock in a transaction that occurred on Monday, January 5th. The shares were sold at an average price of $12.79, for a total transaction of $2,108,687.30. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Insiders sold 351,350 shares of company stock worth $4,474,572 over the last 90 days. Corporate insiders own 16.70% of the company’s stock.

Hedge Funds Weigh In On Hagerty

Hedge funds have recently made changes to their positions in the business. Osaic Holdings Inc. lifted its stake 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. BNP Paribas Financial Markets raised its position in shares of Hagerty by 165.3% during the 3rd quarter. BNP Paribas Financial Markets now owns 5,131 shares of the company’s stock valued at $62,000 after buying an additional 3,197 shares during the period. Bank of America Corp DE raised its holdings in Hagerty by 46.6% in the 2nd quarter. Bank of America Corp DE now owns 8,571 shares of the company’s stock valued at $87,000 after buying an additional 2,726 shares during the period. Los Angeles Capital Management LLC purchased a new position in shares of Hagerty during the 4th quarter worth approximately $98,000. Finally, Schonfeld Strategic Advisors LLC purchased a new position in shares of Hagerty during the third quarter worth $155,000. Institutional investors 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

Analysts Set New Price Targets

Several brokerages have recently issued reports on HGTY. Wall Street Zen downgraded shares of Hagerty from a “buy” rating to a “hold” rating in a research report on Saturday, February 14th. JPMorgan Chase & Co. lifted their price target on shares of Hagerty from $12.00 to $13.00 and gave the company a “neutral” rating in a report on Wednesday, January 7th. Keefe, Bruyette & Woods raised their target price on Hagerty from $14.00 to $15.00 and gave the stock an “outperform” rating in a research report on Wednesday, November 12th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Hagerty in a research note on Monday, December 29th. Four equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average 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.