Hagerty (HGTY) Q2 2025 earnings summary

Executive summary

• Total revenue for Q2 2025 rose 18% year-over-year to $368.7 million; year-to-date revenue up 18% to $688.3 million, driven by strong new business, high retention, and marketplace gains.

• Net income for Q2 2025 increased 11% year-over-year to $47.2 million; year-to-date net income up 46% to $74.5 million.

• Adjusted EBITDA for Q2 2025 grew 20% year-over-year to $63.7 million; year-to-date Adjusted EBITDA up 28% to $103.4 million.

• Marketplace revenue surged 327% year-over-year in Q2 2025 to $26.8 million, driven by higher inventory sales and a successful European auction.

• Announced a non-binding LOI for a new fronting arrangement with Markel, aiming for 100% premium control by 2026.

Financial highlights

• Written premium for Q2 2025 increased 11% year-over-year to $356.0 million; year-to-date up 11% to $600.3 million.

• Commission and fee revenue for Q2 2025 rose 11% year-over-year to $143.3 million; year-to-date up 12% to $243.6 million.

• Earned premium for Q2 2025 increased 13% year-over-year to $177.8 million; year-to-date up 12% to $347.1 million.

• Operating income for Q2 2025 increased 25% year-over-year to $47.7 million; year-to-date up 46% to $73.4 million.

• Ended Q2 2025 with $140.3 million in unrestricted cash and $176.1 million in total debt.

Outlook and guidance

• Full-year 2025 outlook raised: total revenue growth expected at 13-14%, net income guidance at $112-$120 million (up 43-53%), and Adjusted EBITDA at $162-$172 million (up 30-38%).

• Written premium growth for 2025 projected at 13-14%.

• Profit ranges incorporate $20 million in technology investments and a $10 million pre-tax impact from Southern California wildfires.

• Anticipates accelerated growth in 2026, driven by State Farm integration and Markel fronting arrangement.