Hagerty (HGTY) Q4 2025 earnings summary

Executive summary

• Total revenue for 2025 rose 17% year-over-year to $1,456 million, with written premium up 14% to $1,194 million and net income surging 91% to $149 million, surpassing initial outlook.

• Record 371,000 new members added in 2025; Marketplace revenue more than doubled to $119 million, driven by European expansion and higher inventory sales.

• Major investments included technology transformation, strategic hires, Enthusiast+ launch, State Farm rollout to 27 states, and Marketplace expansion into Europe.

• New fronting arrangement with Markel allows retention of 100% of premium starting January 1, 2026, enhancing profitability and operational control.

• Signed new partnership with Liberty Mutual and executed a secondary offering to enhance trading volumes.

Financial highlights

• Fourth quarter 2025 revenue increased 19% to $357 million; written premiums up 19% to $259 million.

• Commission and fee revenue for 2025 increased 15% to $486 million; earned premium up 13% to $727 million.

• Marketplace revenue up 119% year-over-year to $119 million; full-year Marketplace revenue more than doubled.

• Adjusted EBITDA for 2025 was $237 million, up 46% year-over-year; Q4 Adjusted EBITDA was $57 million, up 97%.

• Net income for Q4 was $29 million, up 238% year-over-year; full-year net income was $149 million.

• Operating cash flow for 2025 was $219 million; unrestricted cash at year-end was $160 million; total debt was $178 million.

Outlook and guidance

• 2026 written premium expected to grow 15–16% to $1.37–$1.39 billion, accelerating from 2025.

• 2026 revenue guidance is $1.28–$1.3 billion, reflecting accounting changes from the Markel fronting arrangement.

• Net income for 2026 anticipated at a loss of $41–51 million due to ~$190 million in non-cash transitional expenses; Adjusted EBITDA expected between $236 million and $247 million.

• Excluding transition costs, underlying profitability is expected to improve in 2026.

• Long-term goal to double policies in force to three million by 2030 and accelerate insurance growth with State Farm rollout.