Hagerty (HGTY) Q1 2026 earnings summary

Executive summary

• Completed transition to the Markel Fronting Arrangement, now retaining 100% of premium and risk, which drove strong operational momentum and full control over the Essentia book.

• Written premiums rose 18% year-over-year in Q1 2026 to $289 million, with policies in force up 15% to 1.8 million and record new member additions.

• Adjusted EBITDA surged 77% to $85 million, reflecting strong underlying profitability despite reported losses.

• Net loss was $13 million, driven by $89 million in transitional costs related to deferred ceding commission amortization from the Markel transition.

• Broad Arrow delivered record auction results at Amelia Car Week, with $111 million in sales, a 92% sell-through rate, and strong international demand.

Financial highlights

• Written premium: $289 million, up 18% year-over-year; earned premium: $240 million, up 42%.

• Total revenue decreased 5% year-over-year to $312 million, reflecting the elimination of Markel commission revenue.

• Adjusted EBITDA: $85 million, up 77%; GAAP net loss: $13 million; adjusted diluted loss per share: $(0.04).

• Marketplace revenue declined 12% to $26 million due to lower inventory sales, despite record auction results.

• Membership and other revenue grew 6% to $22 million; net investment income increased 13% to $10 million.

Outlook and guidance

• Reaffirmed full-year 2026 guidance: written premium growth of 15%-16%, adjusted EBITDA of $236-$247 million, GAAP net loss of $41-$51 million, and total revenue expected to decline 11%-12% due to accounting changes.

• Trending toward the high end of guidance ranges; will revisit outlook after Q2.

• 2027 expected to be a more normalized year, with mid-teens written premium growth and continued investment in growth initiatives.