Hagerty (HGTY) Q4 2024 earnings summary

Executive summary

• Total revenue for 2024 rose 20% year-over-year to $1.2 billion, driven by record 279,000 new member additions and strong marketplace revenue growth, exceeding initial outlook.

• Written premium increased 15% to $1.044 billion, with policies in force retention at 89% and total insured vehicles up 8% to 2.6 million.

• Net income surged 178% year-over-year to $78.3 million, and adjusted EBITDA grew 41% to $124.5 million.

• Operating income increased 538% year-over-year to $66.4 million, despite $27 million in hurricane-related losses, with margin expansion of 450 basis points.

• Strategic investments in technology and talent are positioning for scalable, efficient future growth.

Financial highlights

• Q4 2024 revenue grew 19% to $291.7 million; written premiums up 13% and commission/fee revenue up 16%.

• Membership, marketplace, and other revenue rose 30% to $133.5 million for the year; marketplace revenue up 90% to $54.3 million.

• Q4 operating profit was $3 million; adjusted EBITDA doubled to $20 million year-over-year.

• Full-year net income reached $78.3 million, with adjusted EPS at $0.24 and basic EPS at $0.10.

• Operating cash flow for the year increased 32% to $177 million.

Outlook and guidance

• 2025 guidance projects total revenue of $1.34–$1.36 billion (12–13% growth) and written premium of $1.18–$1.19 billion (13–14% growth).

• Net income expected to reach $102–$110 million (30–40% growth); adjusted EBITDA forecasted at $150–$160 million (21–29% growth).

• Margin expansion to continue, though at a slower pace due to $20 million in technology investments and $11 million in wildfire losses.

• Major ramp in volumes anticipated in 2026-2027 as State Farm vehicle conversions accelerate; long-term goal to double policies in force to 3 million by 2030.