Hagerty Reports 17.6% Revenue Growth to $319.6 Million in Latest Quarter

Hagerty, Inc. reported significant financial growth in its latest quarterly results, with total revenue reaching $319.6 million for the three months ended March 31, 2025, a 17.6% increase from $271.7 million in the same period last year. The company's net income surged to $27.3 million, up 232.9% from $8.2 million in the prior year, driven by a combination of increased commission and fee revenue, earned premiums, and a notable rise in membership and marketplace revenue. The earnings per share for Class A common stockholders improved to $0.07, compared to a loss of $0.04 in the previous year.

The growth in revenue was primarily attributed to an 11.9% increase in total written premium, which contributed to a 12.9% rise in commission and fee revenue, totaling $100.3 million. Earned premium also saw an 11.7% increase, amounting to $169.4 million. Membership, marketplace, and other revenue experienced a substantial 59.8% increase, reaching $50 million, largely due to higher sales from the marketplace segment, including notable inventory sales from The Academy of Art University Collection.

Operationally, Hagerty reported a total of 1,524,927 policies in force as of March 31, 2025, reflecting a 1.2% increase from the previous quarter. The Hagerty Drivers Club (HDC) paid member count also rose to 889,390, a 1.5% increase. However, the new business count for insurance policies decreased by 6.7%, indicating a slight decline in new policy acquisitions. The company continues to maintain a strong retention rate of 89.0% for policies in force.

In terms of expenses, total operating expenses increased by 13.2% to $293.9 million, driven by higher salaries and benefits, ceding commissions, and sales expenses. Notably, the company did not incur any losses related to warrant liabilities in the current quarter, contrasting with a $6.1 million loss in the previous year. The company’s financial position remains strong, with cash and cash equivalents totaling $127.7 million as of March 31, 2025, up from $104.8 million at the end of 2024.

Looking ahead, Hagerty remains optimistic about its growth trajectory, focusing on strategic investments and operational efficiencies. The company is committed to enhancing its product offerings and expanding its market presence, particularly through its insurance and membership services. The management anticipates continued growth in both revenue and profitability, supported by its strong brand and customer loyalty within the automotive enthusiast community.