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TRAVERSE CITY - On Monday, Hagerty , Inc. (NYSE:HGTY), an automotive enthusiast brand and specialty vehicle insurance provider, reported second quarter revenue of $368.7 million, significantly exceeding analyst estimates of $293.87 million, though earnings per share of $0.09 fell short of the $0.11 consensus estimate.
Hagerty’s stock showed minimal movement following the results, trading up just 0.05% in after hours trading.
The company’s total revenue increased 18% YoY, driven by strong performance across its business segments. Marketplace revenue surged 327% YoY to $26.8 million, while commission and fee revenue grew 11% to $143.3 million. Written premium increased 11% to $356 million, and earned premium rose 13% to $177.8 million.
Based on these strong results, Hagerty raised its full-year 2025 outlook, now expecting revenue growth of 13-14% (up from previous guidance), net income growth of 43-53%, and adjusted EBITDA growth of 30-38%. The improved outlook reflects the company’s business momentum and expanding margins.
"We delivered solid results during the first half of 2025 with revenue growth of 18%, net income gains of 46%, and Adjusted EBITDA gains of 28%," said McKeel Hagerty, CEO and Chairman. "We continued to expand our margins while making large investments in future growth."
The company also announced a non-binding letter of intent for a new fronting arrangement with Markel (NYSE:MKL) that would result in Hagerty controlling 100% of the premium starting January 1, 2026, positioning the company for accelerated growth.
Hagerty maintained strong customer metrics with a policies-in-force retention rate of 88.7%, while total insured vehicles increased 6% YoY to 2.7 million. Hagerty Drivers Club paid membership grew 6% YoY to approximately 908,000 members.
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