Accessibility Statement Skip Navigation
  • Resources
  • Investor Relations
  • Journalists
  • Agencies
  • Client Login
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
Search
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News Releases view all

    • News in Focus
        • Browse News Releases

        • All News Releases
        • All Public Company
        • English-only
        • News Releases Overview

        • Multimedia Gallery

        • All Multimedia
        • All Photos
        • All Videos
        • Multimedia Gallery Overview

        • Trending Topics

        • All Trending Topics
    • Business & Money
        • Auto & Transportation

        • Aerospace, Defense
        • Air Freight
        • Airlines & Aviation
        • Automotive
        • Maritime & Shipbuilding
        • Railroads and Intermodal Transportation
        • Supply Chain/Logistics
        • Transportation, Trucking & Railroad
        • Travel
        • Trucking and Road Transportation
        • Auto & Transportation Overview

        • View All Auto & Transportation

        • Business Technology

        • Blockchain
        • Broadcast Tech
        • Computer & Electronics
        • Computer Hardware
        • Computer Software
        • Data Analytics
        • Electronic Commerce
        • Electronic Components
        • Electronic Design Automation
        • Financial Technology
        • High Tech Security
        • Internet Technology
        • Nanotechnology
        • Networks
        • Peripherals
        • Semiconductors
        • Business Technology Overview

        • View All Business Technology

        • Entertain­ment & Media

        • Advertising
        • Art
        • Books
        • Entertainment
        • Film and Motion Picture
        • Magazines
        • Music
        • Publishing & Information Services
        • Radio & Podcast
        • Television
        • Entertainment & Media Overview

        • View All Entertain­ment & Media

        • Financial Services & Investing

        • Accounting News & Issues
        • Acquisitions, Mergers and Takeovers
        • Banking & Financial Services
        • Bankruptcy
        • Bond & Stock Ratings
        • Conference Call Announcements
        • Contracts
        • Cryptocurrency
        • Dividends
        • Earnings
        • Earnings Forecasts & Projections
        • Financing Agreements
        • Insurance
        • Investments Opinions
        • Joint Ventures
        • Mutual Funds
        • Private Placement
        • Real Estate
        • Restructuring & Recapitalization
        • Sales Reports
        • Shareholder Activism
        • Shareholder Meetings
        • Stock Offering
        • Stock Split
        • Venture Capital
        • Financial Services & Investing Overview

        • View All Financial Services & Investing

        • General Business

        • Awards
        • Commercial Real Estate
        • Corporate Expansion
        • Earnings
        • Environmental, Social and Governance (ESG)
        • Human Resource & Workforce Management
        • Licensing
        • New Products & Services
        • Obituaries
        • Outsourcing Businesses
        • Overseas Real Estate (non-US)
        • Personnel Announcements
        • Real Estate Transactions
        • Residential Real Estate
        • Small Business Services
        • Socially Responsible Investing
        • Surveys, Polls and Research
        • Trade Show News
        • General Business Overview

        • View All General Business

    • Science & Tech
        • Consumer Technology

        • Artificial Intelligence
        • Blockchain
        • Cloud Computing/Internet of Things
        • Computer Electronics
        • Computer Hardware
        • Computer Software
        • Consumer Electronics
        • Cryptocurrency
        • Data Analytics
        • Electronic Commerce
        • Electronic Gaming
        • Financial Technology
        • Mobile Entertainment
        • Multimedia & Internet
        • Peripherals
        • Social Media
        • STEM (Science, Tech, Engineering, Math)
        • Supply Chain/Logistics
        • Wireless Communications
        • Consumer Technology Overview

        • View All Consumer Technology

        • Energy & Natural Resources

        • Alternative Energies
        • Chemical
        • Electrical Utilities
        • Gas
        • General Manufacturing
        • Mining
        • Mining & Metals
        • Oil & Energy
        • Oil and Gas Discoveries
        • Utilities
        • Water Utilities
        • Energy & Natural Resources Overview

        • View All Energy & Natural Resources

        • Environ­ment

        • Conservation & Recycling
        • Environmental Issues
        • Environmental Policy
        • Environmental Products & Services
        • Green Technology
        • Natural Disasters
        • Environment Overview

        • View All Environ­ment

        • Heavy Industry & Manufacturing

        • Aerospace & Defense
        • Agriculture
        • Chemical
        • Construction & Building
        • General Manufacturing
        • HVAC (Heating, Ventilation and Air-Conditioning)
        • Machinery
        • Machine Tools, Metalworking and Metallurgy
        • Mining
        • Mining & Metals
        • Paper, Forest Products & Containers
        • Precious Metals
        • Textiles
        • Tobacco
        • Heavy Industry & Manufacturing Overview

        • View All Heavy Industry & Manufacturing

        • Telecomm­unications

        • Carriers and Services
        • Mobile Entertainment
        • Networks
        • Peripherals
        • Telecommunications Equipment
        • Telecommunications Industry
        • VoIP (Voice over Internet Protocol)
        • Wireless Communications
        • Telecommunications Overview

        • View All Telecomm­unications

    • Lifestyle & Health
        • Consumer Products & Retail

        • Animals & Pets
        • Beers, Wines and Spirits
        • Beverages
        • Bridal Services
        • Cannabis
        • Cosmetics and Personal Care
        • Fashion
        • Food & Beverages
        • Furniture and Furnishings
        • Home Improvement
        • Household, Consumer & Cosmetics
        • Household Products
        • Jewelry
        • Non-Alcoholic Beverages
        • Office Products
        • Organic Food
        • Product Recalls
        • Restaurants
        • Retail
        • Supermarkets
        • Toys
        • Consumer Products & Retail Overview

        • View All Consumer Products & Retail

        • Entertain­ment & Media

        • Advertising
        • Art
        • Books
        • Entertainment
        • Film and Motion Picture
        • Magazines
        • Music
        • Publishing & Information Services
        • Radio & Podcast
        • Television
        • Entertainment & Media Overview

        • View All Entertain­ment & Media

        • Health

        • Biometrics
        • Biotechnology
        • Clinical Trials & Medical Discoveries
        • Dentistry
        • FDA Approval
        • Fitness/Wellness
        • Health Care & Hospitals
        • Health Insurance
        • Infection Control
        • International Medical Approval
        • Medical Equipment
        • Medical Pharmaceuticals
        • Mental Health
        • Pharmaceuticals
        • Supplementary Medicine
        • Health Overview

        • View All Health

        • Sports

        • General Sports
        • Outdoors, Camping & Hiking
        • Sporting Events
        • Sports Equipment & Accessories
        • Sports Overview

        • View All Sports

        • Travel

        • Amusement Parks and Tourist Attractions
        • Gambling & Casinos
        • Hotels and Resorts
        • Leisure & Tourism
        • Outdoors, Camping & Hiking
        • Passenger Aviation
        • Travel Industry
        • Travel Overview

        • View All Travel

    • Policy & Public Interest
        • Policy & Public Interest

        • Advocacy Group Opinion
        • Animal Welfare
        • Congressional & Presidential Campaigns
        • Corporate Social Responsibility
        • Domestic Policy
        • Economic News, Trends, Analysis
        • Education
        • Environmental
        • European Government
        • FDA Approval
        • Federal and State Legislation
        • Federal Executive Branch & Agency
        • Foreign Policy & International Affairs
        • Homeland Security
        • Labor & Union
        • Legal Issues
        • Natural Disasters
        • Not For Profit
        • Patent Law
        • Public Safety
        • Trade Policy
        • U.S. State Policy
        • Policy & Public Interest Overview

        • View All Policy & Public Interest

    • People & Culture
        • People & Culture

        • Aboriginal, First Nations & Native American
        • African American
        • Asian American
        • Children
        • Diversity, Equity & Inclusion
        • Hispanic
        • Lesbian, Gay & Bisexual
        • Men's Interest
        • People with Disabilities
        • Religion
        • Senior Citizens
        • Veterans
        • Women
        • People & Culture Overview

        • View All People & Culture

    • Explore Our Platform
    • Plan Campaigns
    • Create with AI
    • Distribute Press Releases
    • Report Results
    • Amplify Content
    • All Products
    • General Inquiries
    • Editorial Bureaus
    • Partnerships
    • Media Inquiries
    • Worldwide Offices
    • Hamburger menu
    • PR Newswire: news distribution, targeting and monitoring
    • Send a Release
      • ALL CONTACT INFO
      • Contact Us

        888-776-0942
        from 8 AM - 10 PM ET

    • Searching for your content...

      No results found. Please change your search terms and try again.

      News Releases

      view all
      Close menu
    • News
    • Products
    • Contact
      • Send a Release
      • Client Login
      • Resources
      • Blog
      • Journalists
      • RSS
      • 3 News in Focus
      • 5 Business & Money
      • 5 Science & Tech
      • 5 Lifestyle & Health
      • 1 Policy & Public Interest
      • 1 People & Culture
      • Send a Release
      • Client Login
      • Resources
      • Blog
      • Journalists
      • RSS
      • Explore Our Platform
      • Plan Campaigns
      • Create with AI
      • Distribute Press Releases
      • Report Results
      • Amplify Content
      • All Products
      • Send a Release
      • Client Login
      • Resources
      • Blog
      • Journalists
      • RSS
      • General Inquiries
      • Editorial Bureaus
      • Partnerships
      • Media Inquiries
      • Worldwide Offices
      • Send a Release
      • Client Login
      • Resources
      • Blog
      • Journalists
      • RSS
      Close submenu (News in Focus) News in Focus
      • Browse News Releases
      • Multimedia Gallery
      • Trending Topics
      Close submenu (Business & Money) Business & Money
      • Auto & Transportation
      • Business Technology
      • Entertain­ment & Media
      • Financial Services & Investing
      • General Business
      Close submenu (Science & Tech) Science & Tech
      • Consumer Technology
      • Energy & Natural Resources
      • Environ­ment
      • Heavy Industry & Manufacturing
      • Telecomm­unications
      Close submenu (Lifestyle & Health) Lifestyle & Health
      • Consumer Products & Retail
      • Entertain­ment & Media
      • Health
      • Sports
      • Travel
      Close submenu (Policy & Public Interest) Policy & Public Interest
      • Policy & Public Interest
      Close submenu (People & Culture) People & Culture
      • People & Culture

      Hagerty Reports First Quarter 2026 Results; Reaffirms 2026 Growth Outlook

      Hagerty New Logo (PRNewsfoto/Hagerty)

      News provided by

      Hagerty

      May 06, 2026, 06:55 ET

      Share this article

      Share this article


      First quarter 2026 Highlights

      • Completed strategic evolution to assume control of Markel program and 100% of premium post transition to fronting arrangement
      • Strong underlying operational performance with growth in written premiums, earned premium and members
      • Transition to fronting arrangement resulted in decrease to reported revenue as previously disclosed
      • Written Premium increased 18% to $289 million
        • Policies in force increased 15% to 1.8 million with a record 112,000 new policies added in the first quarter
      • Earned premium increased 42% to $240 million
      • Net Loss of $13 million, including $89 million of pre-tax Markel Fronting Arrangement transitional costs, compared to Net Income of $27 million in the prior year period
      • Adjusted EBITDA (a non-GAAP measure) increased 77% to $85 million, compared to $48 million in the prior year period
      • Reaffirmed 2026 Outlook for Written Premium growth of 15% to 16%

      TRAVERSE CITY, Mich., May 6, 2026 /PRNewswire/ -- Hagerty, Inc. (NYSE: HGTY) makes it easier and more enjoyable for car enthusiasts to drive and celebrate the vehicles they love — through specialty vehicle insurance, live and digital auctions, engaging media and events, and the Hagerty Drivers Club, the world's largest membership community of car lovers. Today the company announced financial results for the three months ended March 31, 2026.

      "First quarter results and the breadth of momentum across our ecosystem give us increasing confidence in our full year outlook that we reaffirmed today. We delivered 18% written premium growth in the first quarter, ahead of our full year outlook, and earned premium growth of 42% with the January 1, 2026 increase in quota share to 100%. 2026 is performing better than expected economically, even if the financial presentation looks different as we transition to the new Markel Fronting Arrangement. The presentation is different but the business is not, as we delivered another quarter of record growth," said McKeel Hagerty, Chief Executive Officer and Chairman of Hagerty.

      "Our business momentum is showing up across the ecosystem - and Broad Arrow is no exception. During the first quarter, Broad Arrow hosted the most successful sale in the 31-year history of Amelia Car Week, delivering $111 million in total sales with a 92% sell-through rate and over 1,000 bidders from 23 countries. Results like this are the product of four decades of building trust, one member and one partner at a time, and they reflect exactly the kind of member-centric company that Hagerty is building for the long-term," added Mr. Hagerty.

      FIRST QUARTER 2026 FINANCIAL HIGHLIGHTS

      • First quarter 2026 Written Premium increased 18% year-over-year to $289 million
      • First quarter 2026 Earned Premium increased 42% year-over-year to $240 million, driven by the combination of strong written premium growth and the January 1, 2026 transition to 100% quota share under the new fronting arrangement
        • Policies in Force Retention was 88.5% as of March 31, 2026 compared to 89.0% in the prior year period, and policies in force count increased 15% year-over-year to 1.8 million
      • First quarter 2026 Commission and fee revenue decreased 84% year-over-year to $16 million, as Markel commission revenue is eliminated upon consolidation under the new fronting arrangement
      • First quarter 2026 Marketplace revenue decreased 12% year-over-year to $26 million, with strong year-over-year growth in auction sales at The Amelia offset by lower inventory sales from the prior year's one-time sale of vehicles acquired from The Academy of Art University Collection
      • First quarter 2026 Membership and other revenue increased 6% year-over-year to $22 million
        • Hagerty Drivers Club (HDC) paid members increased 6% year-over-year to over 940,000
      • First quarter 2026 Net investment income increased 13% year-over-year to $10 million
      • First quarter 2026 Total Revenue decreased 5% year-over-year to $312 million, reflecting the transition to the Markel Fronting Arrangement
      • First quarter 2026 Loss before taxes of $21 million, including $89 million of Markel Fronting Arrangement transitional costs
      • First quarter 2026 Hagerty Re Loss Ratio was 38.4% compared to 42.0% in the prior year period, including $6 million of favorable prior accident year loss development
        • First quarter 2026 Hagerty Re Combined Ratio was 86.5% compared to 88.5% in the prior year period
      • Transition to new fronting arrangement and Article 7 reporting results in a different classification of certain expenses, impacting the period-to-period comparability of Policy acquisition costs, net (+$25 million), Underwriting and other insurance expenses (+$58 million), and Selling, general, and administrative expenses (-$72 million)
      • First quarter 2026 Net Loss of $13 million, including $89 million of pre-tax Markel Fronting Arrangement transitional costs, compared to Net Income of $27 million in the prior year period
      • First quarter 2026 Adjusted EBITDA (a non-GAAP measure) increased 77% year-over-year to $85 million, compared to $48 million in the prior year period
      • First quarter 2026 Basic and Diluted Loss Per Share were $(0.06); Adjusted Diluted Loss Per Share (a non-GAAP measure) was $(0.04)
      • The Company had $212 million of unrestricted cash and $229 million of total debt, $110 million of which was back leverage for Broad Arrow Capital's portfolio of loans collateralized by collector cars

      The definitions and reconciliations of non-GAAP financial measures are provided under the heading Key Performance Indicators and Certain Non-GAAP Financial Measures at the end of this press release.

      2026 OUTLOOK - SUSTAINED COMPOUNDING GROWTH

      We believe 2026 is on track to be another great year of underlying profit growth for Hagerty as our team executes on our long-term plan to deliver compounding premium growth through investing in our long-term competitive advantages with our member-centric approach. As of January 1, 2026, we moved to a 100% quota share arrangement with our long-term partner, Markel, where we retain 100% of the premium and risk from our high-quality, historically low volatility underwriting. We also remain focused on delivering this growth more efficiently through the benefits of scale, continued cost discipline, and investments in our technology platform.

      • For full year 2026, Hagerty anticipates:
        • Written Premium growth of 15% to 16%
        • Total Revenue change of (12)% to (11)%, as Markel-related commission revenue is eliminated under the Markel Fronting Arrangement1
        • Net Loss of $(51) million to $(41) million, including ~$190 million of Markel Fronting Arrangement transitional costs2
        • Adjusted EBITDA of $236 million to $247 million



      2026 Outlook ($)


      2026 Outlook (%)

      in thousands

      2025 Results


      Low End


      High End


      Low End


      High End

      Total Written Premium

      $1,193,548


      $1,373,000


      $1,385,000


      15 %


      16 %

      Total Revenue1

      $1,456,389


      $1,280,000


      $1,300,000


      (12) %


      (11) %

      Net Income (Loss)2, 3

      $149,225


      $(51,000)


      $(41,000)


      N/M


      N/M

      Adjusted EBITDA4

      $236,791


      $236,000


      $247,000


      — %


      4 %



      1

      Revenue guidance reflects the accounting impact of the Markel Fronting Arrangement. Beginning in 2026, we now control the Essentia book of business with the benefit of our MGA services received by Hagerty Re and not Essentia. As a result, commission revenue and the associated ceding commission expense for policies issued through the Markel Fronting Arrangement are now eliminated in consolidation. Although we expect the arrangement to result in increased profitability (as reflected in Adjusted EBITDA), reported commission revenue and ceding commission expense will be significantly lower than prior periods, affecting period-to-period comparability. 2025 commission revenue associated with our alliance agreement with Markel was $437 million and ceding commission expense related to the Company's reinsurance quota share agreement with Markel was $344 million in 2025.

      2

      The projected Net Loss includes approximately $190 million of pre-tax transitional costs related to the Markel Fronting Arrangement representing deferred ceding commissions paid to Markel for policies written prior to January 1, 2026, which will be fully amortized ratably over the remaining term of those policies throughout 2026. This amortization will decline from $89 million in Q1 2026 to approximately $10 million in Q4 2026 as 2025 policies expire. Excluding these transitional costs, we expect 2026 to reflect underlying profitability improvement.

      3

      Full year 2025 Net Income includes (i) the benefit from the $42 million release of a portion of our valuation allowance, partially offset by a $32 million loss related to the change in value of the TRA liability; and (ii) a $21 million reduction in reserves in the fourth quarter, primarily related to favorable development for the 2024 accident year and improvement in current accident year experience.

      4

      See Non-GAAP Financial Measures below for additional information regarding this non-GAAP financial measure.


      N/M = Not meaningful

      Conference Call Details
      Hagerty will hold a conference call to discuss the financial results on Wednesday, May 6, 2026 10:00 am Eastern Time. A webcast of the conference call, including its Investor Presentation highlighting first quarter 2026 financial results, will be available on Hagerty's investor relations website at investor.hagerty.com. The dial-in for the conference call is (877) 423-9813 (toll-free) or (201) 689-8573 (international). Please dial the number 10 minutes prior to the scheduled start time.

      A webcast replay of the call will be available at investor.hagerty.com following the call.

      Forward-Looking Statements
      This press release contains statements that constitute "forward-looking statements" within the meaning of the federal securities laws. All statements we provide, other than statements of historical fact, are forward-looking statements, including those regarding Hagerty's future operating results and financial position, Hagerty's business strategy and plans, products, services, and technology implementations, market conditions, growth and trends, expansion plans and opportunities, and Hagerty's objectives for future operations. The words "anticipate," "believe," "envision," "estimate," "expect," "intend," "may," "plan," "predict," "project," "target," "potential," "will," "would," "could," "should," "continue," "ongoing," "contemplate," and similar expressions, and the negatives of these expressions, are intended to identify forward-looking statements.

      Hagerty has based these forward-looking statements largely on current expectations about future events, which may not materialize. Actual results could differ materially and adversely from those anticipated or implied in forward-looking statements. These factors include, among other things, Hagerty's ability to: (i) compete effectively within Hagerty's industry and attract and retain insurance policyholders and paid Hagerty Drivers Club ("HDC") subscribers; (ii) maintain key strategic relationships with Hagerty's insurance distribution and underwriting carrier partners; (iii) prevent, monitor, and detect fraudulent activity; (iv) manage risks associated with disruptions, interruptions, outages, or other issues with Hagerty's technology platforms or use of third-party services; (v) accelerate the adoption of Hagerty's membership and marketplace products and services, as well as any new insurance programs and products offered; (vi) successfully implement the fronting arrangement consummated with Markel and realize the anticipated benefits while also managing the increased exposure to underwriting volatility, catastrophes, reinsurance counterparty risk, and legal, compliance, and regulatory risks resulting from the shift to Hagerty Re assuming 100% of the risk for policies written through this arrangement; (vii) underwrite and price new products, including Enthusiast+, consistent with expected loss ratios and risk tolerances; (viii) execute Broad Arrow's private sale, auction, and financing strategies; (ix) manage the cyclical nature of the insurance business and broader macroeconomic conditions, including inflation, interest rates, and potential recessionary pressures; (x) achieve Hagerty's investment objectives and avoid losses in the investment portfolio; (xi) address unexpected increases in the frequency or severity of claims, including catastrophe losses; and (xii) comply with numerous laws and regulations applicable to Hagerty's business, including without limitation state, federal, and foreign laws relating to insurance and rate increases, privacy and cybersecurity, marketing and advertising, digital services, accounting matters, tax, anti-money laundering, and economic sanctions.

      The forward-looking statements in this release represent Hagerty's views as of the date hereof. You should not rely on forward-looking statements as predictions of future events. We operate in a very competitive and rapidly changing environment and new risks emerge from time to time. This presentation should be read in conjunction with the information included in filings with the SEC and press releases. Understanding the information contained in these filings is important in order to fully understand Hagerty's reported financial results and business outlook for future periods. In addition, this presentation contains certain "non-GAAP financial measures". The non-GAAP measures are presented for supplemental informational purposes only. These financial measures are not recognized measures under GAAP and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Reconciliations to the most directly comparable financial measure calculated and presented in accordance with GAAP are provided in the appendix to this presentation.

      About Hagerty
      Hagerty is a company built by drivers for drivers, protecting 2.9 million vehicles in the United States, Canada and the UK. We make it easier and more enjoyable for car enthusiasts to drive and celebrate the vehicles they love through innovative vehicle insurance products, live and digital auctions, engaging media and events, and the Hagerty Drivers Club, the world's largest membership community of car lovers.

      For more information, please visit www.hagerty.com or www.newsroom.hagerty.com. Never Stop Driving®.

      Category: Financial
      Source: Hagerty

      Hagerty, Inc.

      Condensed Consolidated Statements of Operations (Unaudited)




      Three months ended March 31,



      2026


      2025


      $ Change


      % Change










      REVENUES:


      in thousands (except percentages and per share amounts)

      Earned premium, net

      $    239,642


      $    169,355


      $      70,287


      41.5 %

      Commission and fee revenue

      16,435


      100,287


      (83,852)


      (83.6) %

      Marketplace revenue


      25,652


      29,086


      (3,434)


      (11.8) %

      Membership and other revenue

      22,127


      20,865


      1,262


      6.0 %

      Net investment income


      10,263


      9,058


      1,205


      13.3 %

      Net investment losses


      (2,289)


      (315)


      (1,974)


      N/M

      Total revenue


      311,830


      328,336


      (16,506)


      (5.0) %

      EXPENSES:









      Losses and loss adjustment expenses


      97,919


      71,130


      26,789


      37.7 %

      Policy acquisition costs, net


      101,922


      77,333


      24,589


      31.8 %

      Underwriting and other insurance expenses


      59,588


      1,357


      58,231


      N/M

      Selling, general, and administrative expenses

      72,416


      144,045


      (71,629)


      (49.7) %

      Interest expense and other, net

      922


      1,689


      (767)


      (45.4) %

      Total expenses


      332,767


      295,554


      37,213


      12.6 %

      INCOME (LOSS) BEFORE TAXES

      (20,937)


      32,782


      (53,719)


      (163.9) %

      Income tax (expense) benefit


      8,192


      (5,489)


      13,681


      N/M

      NET INCOME (LOSS)


      (12,745)


      27,293


      (40,038)


      (146.7) %

      Net (income) loss attributable to non-controlling interest

      8,254


      (18,922)


      27,176


      143.6 %

      Accretion of Series A Convertible Preferred Stock

      (2,030)


      (1,875)


      155


      8.3 %

      NET INCOME (LOSS) ATTRIBUTABLE TO CLASS A COMMON STOCKHOLDERS

      $      (6,521)


      $        6,496


      $     (13,017)


      (200.4) %









      Earnings (loss) per share of Class A Common Stock:








      Basic


      $        (0.06)


      $         0.07





      Diluted


      $        (0.06)


      $         0.07














      Weighted average shares of Class A Common Stock outstanding:








      Basic


      101,034


      90,047





      Diluted


      101,034


      346,311















      N/M = Not meaningful

      Hagerty, Inc.

      Condensed Consolidated Balance Sheets (Unaudited)




      March 31,


      December 31,



      2026


      2025






      ASSETS


      in thousands (except share amounts)

      Fixed maturity securities available-for-sale, at fair value (amortized cost: $670,922 in 2026, $687,813 in 2025)

      $           673,100


      $           696,271

      Equity securities, at fair value


      47,804


      34,871

      Total investments


      720,904


      731,142

      Cash and cash equivalents


      212,371


      160,177

      Restricted cash and cash equivalents


      154,362


      138,823

      Accounts receivable


      27,993


      98,872

      Premiums receivable


      92,446


      180,529

      Deferred acquisition costs, net


      143,552


      179,224

      Reinsurance recoverables


      11,863


      15,296

      Prepaid reinsurance premiums


      40,405


      21,950

      Notes receivable


      148,944


      113,887

      Intangible assets, net


      89,125


      88,915

      Goodwill


      114,150


      114,164

      Deferred tax assets


      40,092


      43,011

      Other assets


      228,386


      207,986

      TOTAL ASSETS


      $         2,024,593


      $         2,093,976

      LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY




      Accounts payable and accrued expenses


      $            85,847


      $           111,947

      Advance premiums


      50,748


      28,287

      Due to insurers


      14,366


      94,930

      Losses payable and reserves for unpaid losses and loss adjustment expenses


      203,987


      264,204

      Unearned premiums


      508,003


      412,058

      Ceding commissions payable


      1,870


      86,165

      Debt, net


      228,608


      177,907

      Contract liabilities


      46,383


      46,450

      Deferred tax liability


      5,697


      23,489

      Tax receivable agreement liability


      38,284


      39,829

      Other liabilities


      106,757


      61,684

      TOTAL LIABILITIES


      1,290,550


      1,346,950

      Commitments and Contingencies


      —


      —

      TEMPORARY EQUITY





      Preferred stock, $0.0001 par value (20,000,000 shares authorized, 8,483,561 Series A Convertible Preferred Stock issued and outstanding as of March 31, 2026 and December 31, 2025) 1

      88,648


      86,618

      STOCKHOLDERS' EQUITY





      Class A Common Stock, $0.0001 par value (500,000,000 shares authorized, 101,085,283 and 100,706,893 issued and outstanding as of March 31, 2026 and December 31, 2025, respectively)

      10


      10

      Class V Common Stock, $0.0001 par value (300,000,000 authorized, 241,552,156 shares issued and outstanding as of March 31, 2026 and December 31, 2025)

      24


      24

      Additional paid-in capital


      626,166


      623,013

      Accumulated earnings (deficit)


      (407,451)


      (402,960)

      Accumulated other comprehensive income (loss)


      (66)


      1,229

      Total stockholders' equity


      218,683


      221,316

      Non-controlling interest


      426,712


      439,092

      Total equity


      645,395


      660,408

      TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY

      $         2,024,593


      $         2,093,976








      1

      The Series A Convertible Preferred Stock is recorded within Temporary Equity because it has equity conversion and cash redemption features.

      Hagerty, Inc.

      Condensed Consolidated Statements of Cash Flows (Unaudited)



      Three months ended March 31,


      2026


      2025





      OPERATING ACTIVITIES:

      in thousands

      Net income (loss)

      $           (12,745)


      $            27,293

      Adjustments to reconcile net income (loss) to net cash from operating activities:




      Loss on disposals of equipment, software, and other assets

      213


      1,136

      Depreciation and amortization

      9,706


      9,488

      Provision for deferred taxes

      (13,528)


      (939)

      Share-based compensation expense

      4,617


      4,392

      Non-cash lease expense

      2,108


      2,109

      Net investment losses

      2,289


      315

      (Accretion) amortization of discount and premium, net

      (1,358)


      (1,184)

      Amortization of gain on loss portfolio transfer

      (1,308)


      —

      Other

      575


      1,852

      Changes in assets and liabilities:




      Accounts and premiums receivable

      157,636


      (42,812)

      Deferred acquisition costs, net

      35,672


      4,196

      Reinsurance recoverables

      3,433


      (7,561)

      Prepaid reinsurance premiums

      (18,455)


      (8,285)

      Advance premiums

      22,512


      19,921

      Due to insurers

      (80,441)


      25,336

      Losses payable and reserves for unpaid losses and loss adjustment expenses

      (60,217)


      (14,958)

      Unearned premiums

      95,945


      (5,377)

      Ceding commissions payable

      (84,295)


      1,926

      Other assets and liabilities, net

      (46,106)


      26,982

      Net Cash Provided by Operating Activities

      16,253


      43,830

      INVESTING ACTIVITIES:




      Capital expenditures

      (7,712)


      (5,389)

      Issuance of notes receivable

      (48,133)


      (9,886)

      Collection of notes receivable

      14,014


      1,650

      Purchases of fixed maturity securities

      (149,982)


      (39,150)

      Purchases of equity securities

      (51,041)


      (246)

      Proceeds from maturities and sales of fixed maturity securities

      167,537


      48,526

      Proceeds from sales of equity securities

      35,405


      247

      Other investing activities

      (13)


      (233)

      Net Cash Used in Investing Activities

      (39,925)


      (4,481)

      FINANCING ACTIVITIES:




      Repayments of debt

      (6,159)


      (120,880)

      Proceeds from debt, net of issuance costs

      57,911


      160,067

      Proceeds from loss portfolio transfer

      50,500


      —

      Claims payments made from loss portfolio transfer

      (9,248)


      —

      Distributions paid to non-controlling interest unit holders

      (359)


      (24,676)

      Funding of TRA Liability payments

      (1,545)


      (223)

      Funding of employee tax obligations upon vesting of share-based payments

      (61)


      (44)

      Net Cash Provided by Financing Activities

      91,039


      14,244

      Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents

      366


      (130)





      Change in cash and cash equivalents and restricted cash and cash equivalents

      67,733


      53,463

      Beginning cash and cash equivalents and restricted cash and cash equivalents

      299,000


      232,845

      Ending cash and cash equivalents and restricted cash and cash equivalents

      $           366,733


      $           286,308

      Key Performance Indicators and Non-GAAP Financial Measures

      Key Performance Indicators

      The tables below present a summary of our Key Performance Indicators, which include important operational metrics, as well as certain financial measures prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and non-GAAP financial measures. We use these Key Performance Indicators to evaluate our business, measure our performance, identify trends against planned initiatives, prepare financial projections, and make strategic decisions. We believe these Key Performance Indicators are useful in evaluating our performance when read together with our Condensed Consolidated Financial Statements prepared in accordance with GAAP.



      Three months ended March 31,



      2026


      2025


      Change










      GAAP Financial Measures


      dollars in thousands (except per share amounts)

      Total Revenue 1


      $   311,830


      $   328,336


      $    (16,506)


      (5.0) %

      Income (loss) before taxes


      $    (20,937)


      $     32,782


      $    (53,719)


      (163.9) %

      Net Income (Loss)


      $    (12,745)


      $     27,293


      $    (40,038)


      (146.7) %

      Basic Earnings (Loss) Per Share


      $       (0.06)


      $        0.07


      $       (0.13)


      (185.7) %

      Diluted Earnings (Loss) Per Share


      $       (0.06)


      $        0.07


      $       (0.13)


      (185.7) %










      Non-GAAP Financial Measures









      Adjusted EBITDA


      $     85,185


      $     48,151


      $     37,034


      76.9 %

      Adjusted Net Income (Loss)


      $    (13,144)


      $     25,352


      $    (38,496)


      (151.8) %

      Adjusted Diluted EPS


      $       (0.04)


      $        0.07


      $       (0.11)


      (157.1) %










      Insurance Operational Metrics









      Total Written Premium


      $   288,946


      $   244,327


      $     44,619


      18.3 %

      Net Assumed Premium


      $   317,346


      $   155,651


      $   161,695


      103.9 %

      Hagerty Re Loss Ratio


      38.4 %


      42.0 %


      (3.6) %


      N/M

      Hagerty Re Combined Ratio


      86.5 %


      88.5 %


      (2.0) %


      N/M

      New Business Count — Insurance


      111,896


      55,309


      56,587


      102.3 %










      Marketplace Operational Metrics









      Aggregate Auction Sales


      $   135,379


      $     75,336


      $     60,043


      79.7 %

      Net Auction Sales


      $   123,436


      $     68,213


      $     55,223


      81.0 %

      Private Sales


      $     36,830


      $     53,669


      $    (16,839)


      (31.4) %

      BAC Average Loan Portfolio


      $   135,270


      $     62,784


      $     72,486


      115.5 %











      N/M = Not meaningful


      1

      Total Revenue for the three months ended March 31, 2025 has been recast to include Net investment income and Net investment losses as components of revenue in accordance with the Article 7 reporting standards adopted in 2025. Total revenue as previously presented in accordance with Article 5 was $320 million for the three months ended March 31, 2025.



      March 31,



      2026


      2025


      Change










      Insurance Operational Metrics


      dollars in thousands

      Policies in Force


      1,760,400


      1,524,927


      235,473


      15.4 %

      Policies in Force Retention


      88.5 %


      89.0 %


      (0.5) %


      N/M

      Vehicles in Force


      2,910,661


      2,609,209


      301,452


      11.6 %

      HDC Paid Member Count


      940,313


      889,390


      50,923


      5.7 %

      Marketplace Operational Metrics









      BAC Loan Portfolio Balance


      $   142,956


      $     73,192


      $     69,764


      95.3 %











      N/M = Not meaningful

      Adjusted EBITDA

      We define EBITDA as consolidated Net income (loss), excluding Interest expense and other, net, Income tax expense (benefit), and Depreciation and amortization. We define Adjusted EBITDA as EBITDA, further adjusted to (i) exclude net investment gains and losses; (ii) deduct interest expense related to the State Farm Term Loan; (iii) exclude share-based compensation expense; and when applicable, exclude (iv) restructuring, impairment and related charges; (v) gains, losses and impairments related to divestitures; and (vi) certain other unusual items, such as Markel Fronting Arrangement transitional costs during the three months ended March 31, 2026.

      How This Measure is Useful

      When used in conjunction with GAAP financial measures, Adjusted EBITDA is a supplemental measure of operating performance that we believe is a useful measure to evaluate our performance period over period and relative to our competitors and peers. Management uses Adjusted EBITDA to evaluate our operating performance on a consistent basis, as it removes the impact of items not directly resulting from our core operations. We believe the presentation of Adjusted EBITDA provides securities analysts, investors, and other interested parties with a supplemental view of our operating performance that enhances their understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives.

      Limitations of the Usefulness of This Measure

      Adjusted EBITDA may differ from similarly titled measures used by other companies due to different methods of calculation, which could reduce the usefulness of this non-GAAP financial measure when comparing our performance to that of other companies. Presentation of Adjusted EBITDA is not intended to be considered in isolation or a substitute for, or superior to, the financial information prepared in accordance with GAAP. A reconciliation of Adjusted EBITDA to Net income (loss), the most directly comparable GAAP measure, is presented below.



      Three months ended March 31,



      2026


      2025








      in thousands

      Net income (loss)

      $         (12,745)


      $           27,293

      Interest expense and other, net 1

      922


      1,689

      Income tax expense (benefit)

      (8,192)


      5,489

      Depreciation and amortization

      9,706


      9,488

      EBITDA

      (10,309)


      43,959

      Markel Fronting Arrangement transitional costs 2

      88,958


      —

      Net investment losses

      2,289


      315

      Interest expense related to State Farm Term Loan 3

      (515)


      (515)

      Share-based compensation expense

      4,617


      4,392

      Other unusual items 4

      145


      —

      Adjusted EBITDA

      $           85,185


      $           48,151








      1

      Excludes interest expense related to the BAC Credit Facility, which is recorded within "Selling, general, and administrative expenses" in the Condensed Consolidated Statements of Operations.

      2

      Represents the amortization of deferred ceding commissions paid to Markel for policies written prior to January 1, 2026. These costs relate exclusively to policies written prior to our entry into the Markel Fronting Arrangement and are being fully amortized ratably over the remaining term of those policies through December 31, 2026. We expect the amortization of these deferred ceding commissions to decline from $89.0 million in the first quarter of 2026 to approximately $10.0 million in the fourth quarter of 2026, as the remaining 2025 policy terms run off. Management excludes these costs from Adjusted EBITDA because they are transitional charges related solely to deferred ceding commissions on policies written prior to January 1, 2026, are expected to run off by December 31, 2026, and are not indicative of our ongoing operating performance under the Markel Fronting Arrangement.

      3

      Interest expense related to the State Farm Term Loan is charged against Adjusted EBITDA as it is directly attributable to the operations of Hagerty Re.

      4

      For the three months ended March 31, 2026, other unusual items includes additional severance expenses associated with the actions taken in the fourth quarter of 2025.

      As a result of our transition to the Article 7 reporting standards, Net investment income is reported as a component of revenue and is no longer an adjustment in our reconciliation from Net income (loss) to Adjusted EBITDA. In addition, interest expense related to the State Farm Term Loan is now deducted from Adjusted EBITDA as it is directly attributable to Hagerty Re, which generates a significant portion of our net investment income. The following table presents a reconciliation of Adjusted EBITDA as presented in the prior period in accordance with Article 5, to the current presentation in accordance with Article 7:


      Three months ended
      March 31, 2025




      in thousands

      Prior presentation of Adjusted EBITDA

      $                39,608

      Net investment income

      9,058

      Interest expense related to State Farm Term Loan

      (515)

      Current presentation of Adjusted EBITDA

      $                48,151

      The following table reconciles Adjusted EBITDA for the year ended December 31, 2026 Outlook to the most directly comparable GAAP measure, which is Net income (loss):



      2026 Low


      2026 High








      in thousands

      Net loss 1

      $         (51,000)


      $         (41,000)

      Interest expense and other, net 2

      5,000


      5,000

      Income tax expense

      33,000


      34,000

      Depreciation and amortization

      40,000


      40,000

      Share-based compensation expense

      19,000


      19,000

      Markel Fronting Arrangement transitional costs 1

      190,000


      190,000

      Adjusted EBITDA

      $         236,000


      $         247,000








      1

      Represents the amortization of deferred ceding commissions paid to Markel for policies written prior to January 1, 2026. These costs relate exclusively to policies written prior to our entry into the Markel Fronting Arrangement and are being fully amortized ratably over the remaining term of those policies through December 31, 2026. We expect the amortization of these deferred ceding commissions to decline from $89.0 million in the first quarter of 2026 to approximately $10.0 million in the fourth quarter of 2026, as the remaining 2025 policy terms run off. Management excludes these costs from Adjusted EBITDA because they are transitional charges related solely to deferred ceding commissions on policies written prior to January 1, 2026, are expected to run off by December 31, 2026, and are not indicative of our ongoing operating performance under the Markel Fronting Arrangement.

      2

      Excludes interest expense related to the BAC Credit Facility, which is recorded within "Selling, general, and administrative expenses" in the Condensed Consolidated Statements of Operations.

      Adjusted Net Income (Loss) and Adjusted Diluted EPS

      Adjusted Net Income (Loss) represents Net income (loss) attributable to Class A Common Stockholders, assuming the full exchange of all outstanding THG units and Series A Convertible Preferred Stock for shares of Class A Common Stock, adjusted to exclude (i) net investment gains and losses; and when applicable, (ii) changes in the TRA Liability; (iii) gains and losses related to divestitures; and (iv) certain other unusual items, each of which we do not believe are directly related to our core operations and may not be indicative of our ongoing performance. Adjusted Diluted EPS is calculated by dividing Adjusted Net Income (Loss) by the weighted average shares of Class A Common Stock outstanding, assuming the full exchange of all outstanding THG units, Series A Convertible Preferred Stock, and unvested share-based compensation awards.

      How These Measures Are Useful

      When used in conjunction with GAAP financial measures, Adjusted Net Income (Loss) and Adjusted Diluted EPS are supplemental measures of operating performance that we believe are useful measures to evaluate our performance period over period and relative to our competitors and peers. Management uses Adjusted Net Income (Loss) and Adjusted Diluted EPS to evaluate our operating performance on a consistent basis to make strategic and operational decisions. We believe these measures provide management and investors with useful information regarding trends in our business that may not otherwise be apparent when relying solely on GAAP measures. By assuming the full exchange of all outstanding THG units and Series A Convertible Preferred Stock, we believe these measures facilitate comparisons with other companies that have different organizational and tax structures, as well as comparisons period over period because it eliminates the effect of any changes in Net income (loss) attributable to Class A Common Stockholders driven by increases in Hagerty, Inc.'s ownership in THG, which is unrelated to our operating performance, and excludes items that are unusual or may not be indicative of our ongoing performance.

      Limitations of the Usefulness of These Measures

      Adjusted Net Income (Loss) and Adjusted Diluted EPS may differ from similarly titled measures used by other companies due to different methods of calculation. Presentation of Adjusted Net Income (Loss) and Adjusted Diluted EPS should not be considered alternatives to Net income (loss) attributable to Class A Common Stockholders and Diluted EPS, as determined under GAAP. While these measures are useful in evaluating our performance, they assume the full exchange of all outstanding THG units and Series A Convertible Preferred Stock for shares of Class A Common Stock, which has not occurred and may not occur. Further, the adjustments made to arrive at Adjusted Net Income (Loss) exclude certain expenses and income that may recur in the future. Adjusted Net Income (Loss) and Adjusted Diluted EPS should be evaluated in conjunction with our GAAP financial results. A reconciliation of Adjusted Net Income (Loss) to Net income (loss) attributable to Class A Common Stockholders, the most directly comparable GAAP measure, and the computation of Adjusted Diluted EPS are presented below.



      Three months ended March 31,



      2026


      2025






      Numerator:


      in thousands (except per share amounts)

      Net income (loss) attributable to Class A Common Stockholders

      $           (6,521)


      $            6,496

      Adjustments:





      Accretion of Series A Convertible Preferred Stock

      2,030


      1,875

      Net income (loss) attributable to non-controlling interest

      (8,254)


      18,922

      Net investment losses


      2,289


      315

      Other unusual items 1


      145


      —

      Tax impact of above adjustments 2


      (2,833)


      (2,256)

      Adjusted Net Income (Loss)


      $         (13,144)


      $           25,352






      Denominator:





      Weighted average shares of Class A Common Stock outstanding — Diluted

      101,034


      346,311

      Adjustments:




      Assumed exchange of non-controlling interest THG units for shares of Class A Common Stock

      245,102


      —

      Assumed conversion of shares of Series A Convertible Preferred Stock into shares of Class A Common Stock

      6,785


      6,785

      Assumed vesting of share-based compensation awards

      8,007


      6,881

      Adjusted weighted average shares of Class A Common Stock outstanding — Diluted

      360,928


      359,977






      Adjusted Diluted EPS


      $             (0.04)


      $              0.07






      Three months ended March 31,



      2026


      2025






      Diluted EPS


      $             (0.06)


      $              0.07

      Impact of assumed exchange, conversion, or vesting of remaining potentially dilutive securities 3

      0.02


      0.01

      Non-GAAP adjustments 4

      —


      (0.01)

      Adjusted Diluted EPS

      $             (0.04)


      $              0.07








      1

      For the three months ended March 31, 2026, other unusual items includes additional severance expenses associated with the actions taken in the fourth quarter of 2025.

      2

      Represents the tax effect of the aforementioned adjustments to reflect corporate income taxes at an estimated effective tax rate of 29.0% and 23.4% for 2025 and 2025, respectively, which considers the U.S. federal statutory rate of 21%, a combined state income tax rate of approximately 5% (net of federal benefits), and certain material permanent items.

      3

      Assumes the exchange of all outstanding THG units, Series A Convertible Preferred Stock, and unvested share-based compensation awards for shares of Class A Common Stock, resulting in the elimination of the non-controlling interest and recognition of the Net income (loss) attributable to non-controlling interest, as well as elimination of the accretion of Series A Convertible Preferred Stock.

      4

      Represents the per share impact of non-GAAP adjustments for each period. Refer to the reconciliation above for additional information.

      SOURCE Hagerty

      Modal title

      Also from this source

      Hagerty Reports Third Quarter 2026 Results; Increases 2026 Growth Outlook

      Hagerty Reports Third Quarter 2026 Results; Increases 2026 Growth Outlook

      Hagerty, Inc. (NYSE: HGTY) makes it easier and more enjoyable for car enthusiasts to drive and celebrate the vehicles they love — through specialty...

      Hagerty to Report Third Quarter 2026 Results and Host Conference Call on Tuesday, November 3, 2026

      Hagerty to Report Third Quarter 2026 Results and Host Conference Call on Tuesday, November 3, 2026

      Hagerty, Inc. (NYSE: HGTY), a business that makes it easier and more enjoyable to be a driving enthusiast, today announced it will report its third...

      More Releases From This Source

      Explore

      Automotive

      Automotive

      Transportation, Trucking & Railroad

      Transportation, Trucking & Railroad

      Insurance

      Insurance

      Banking & Financial Services

      Banking & Financial Services

      News Releases in Similar Topics

      Contact PR Newswire

      • Call PR Newswire at 888-776-0942
        from 8 AM - 9 PM ET
      • Chat with an Expert
      • General Inquiries
      • Editorial Bureaus
      • Partnerships
      • Media Inquiries
      • Worldwide Offices

      Products

      • Explore Our Platform
      • Plan Campaigns
      • Create with AI
      • Distribute Press Releases
      • Report Results
      • Amplify Content

      About

      • About PR Newswire
      • About Cision
      • Careers
      • Accessibility Statement
      • APAC
      • APAC - Simplified Chinese
      • APAC - Traditional Chinese
      • Brazil
      • Canada
      • Czech
      • Denmark
      • Finland
      • France
      • Germany
      • India
      • Indonesia
      • Israel
      • Italy
      • Japan
      • Korea
      • Mexico
      • Middle East
      • Middle East - Arabic
      • Netherlands
      • Norway
      • Poland
      • Portugal
      • Russia
      • Slovakia
      • Spain
      • Sweden
      • United Kingdom
      • Vietnam

      My Services

      • All New Releases
      • Platform Login
      • Data Privacy

      Do not sell or share my personal information:

      • Submit via [email protected] 
      • Call Privacy toll-free: 877-297-8921

      Contact PR Newswire

      Products

      About

      My Services
      • All News Releases
      • Platform Login
      • ProfNet
      Call PR Newswire at
      888-776-0942
      • Terms of Use
      • Privacy Policy
      • Information Security Policy
      • Site Map
      • RSS
      • Cookies
      Copyright © 2026 Cision US Inc.