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Hagerty Reports Strong Q3 2025 Results and Upgrades Financial Outlook

Hagerty, Inc. (NYSE HGTY), a recognized leader in specialty vehicle insurance, recently revealed its robust financial performance for the third quarter of 2025, marking significant growth in various metrics. With total revenue rising by 18% year-over-year to $380 million, and year-to-date revenue also reflecting an 18% increase to $1.068 billion, the company has shown resilience and effective management in an evolving market.

In addition to revenue growth, Hagerty also reported a remarkable 143% increase in net income, reaching $46.2 million for the quarter, and a 73% year-to-date growth totaling $120.7 million. The company's strong operational performance is attributed to a strategic focus on enhancing their insurance offerings, marketplace services, and overall customer experience for automotive enthusiasts.

Key Financial Highlights

• - Revenue Growth: The company anticipates total revenue growth of 14-15% for the full year 2025, driven by various segments within the business. The written premium increased by 16% year-over-year to $334 million, demonstrating a solid demand for their insurance products.
• - Marketplace Success: Marketplace revenue skyrocketed by 58% from the previous year to $34.2 million, while year-to-date marketplace revenue surged 135% to $89.9 million. This increase can largely be attributed to elevated levels of inventory sales combined with the expansion of European auction operations.
• - Profitability Metrics: With operating income increasing by an impressive 240% year-over-year, Hagerty's operating income reached $34.3 million in Q3 and $107.7 million year-to-date. This positive trend reflects improved margin performance and cost management practices.
• - EBITDA Metrics: The adjusted EBITDA, a non-GAAP measure, climbed by 106% to $49.7 million in Q3 and seasoned a 46% increase to $153.1 million for the year to date. This showcases the company’s operational efficiency and profitability.

Investment in the Future

Hagerty's Chief Executive Officer, McKeel Hagerty, expressed confidence in their business trajectory, stating, “Our strong business momentum allowed us to increase our 2025 outlook for the second consecutive quarter.” The management is optimistic about ongoing expansion in 2026 and beyond, with plans to invest $20 million towards technological enhancements, particularly in their new platform, Duck Creek, aimed at efficiently boosting growth in the coming years.

The company is also focused on developing new partnerships, with their latest collaboration with Liberty Mutual—one of the largest auto insurers in the U.S.—being a significant addition to their operational landscape.

Understanding the Numbers

Hagerty's reports indicate a Policies in Force Retention rate of 88.6%, slightly down from 88.8% year-on-year, which remains a strong indicator of customer loyalty and satisfaction. Additionally, the loss ratio significantly improved to 42.0%, a notable reduction from 60.0% in the prior year due to better claims management and a decrease in catastrophic losses.

As of September 30, 2025, Hagerty boasts approximately 2.7 million insured vehicles, representing a 7% year-over-year growth in total insured vehicles and a 6% increase in paid members of Hagerty Drivers Club, showcasing the company's influential presence within the automotive enthusiast community.

Looking Ahead

The financial success of Hagerty illustrates their commitment to serving automotive enthusiasts while ensuring profitability through growth strategies and operational excellence. With the automotive industry continuing to evolve, Hagerty stands ready to adapt and flourish, ensuring they remain a pillar in the specialized insurance market.

For detailed financial results, investors are encouraged to visit Hagerty's investor relations website, where further updates and insights will be shared following their upcoming conference call scheduled for November 4, 2025.