Hagerty (HGTY) Q1 2025 earnings summary

Executive summary

• Total revenue for Q1 2025 grew 18% year-over-year to $320 million, with written premium up 12% to $244.3 million and net income rising 233% to $27.3 million.

• Adjusted EBITDA increased 45% to $40 million, and operating income rose 110% to $25.7 million.

• Membership, marketplace, and other revenue surged 60%, with marketplace revenue up 176% due to successful auctions and higher inventory sales.

• Strategic priorities include expanding specialty insurance, integrating membership, and international marketplace growth.

• Entered a $375 million unsecured credit agreement, upsizing the facility and lowering borrowing costs.

Financial highlights

• Commission and fee revenue grew 13% to over $100 million; earned premium rose 12% to $169 million.

• Loss ratio was 42%, including $10 million in wildfire losses; combined ratio was 88.5%.

• Policy retention remained high at 89%, with total insured vehicles up 8% year-over-year to 2.6 million.

• Basic and diluted EPS was $0.07; Adjusted EPS was $0.08.

• Net promoter score reached 82.

Outlook and guidance

• 2025 outlook reaffirmed: total revenue projected to grow 12–13% to $1.34–$1.36 billion, written premium up 13–14% to $1.18–$1.19 billion.

• Net income guidance of $102–$110 million (up 30–40%) and Adjusted EBITDA of $150–$160 million (up 21–29%), including $10 million in wildfire losses and $20 million in technology investments.

• Margin expansion expected as technology investments moderate and State Farm partnership ramps up.