Hagerty shares surge 6% as Q1 earnings and revenue top estimates

Published 07/05/2025, 14:24
Hagerty shares surge 6% as Q1 earnings and revenue top estimates

Investing.com -- Hagerty , Inc. (NYSE:HGTY), an automotive enthusiast brand and specialty vehicle insurance provider, saw its shares jump 6% after reporting first quarter earnings and revenue that exceeded analyst expectations.

The company posted adjusted earnings per share of $0.08 for the first quarter of 2025, beating the analyst consensus of $0.04. Revenue came in at $319.6 million, surpassing estimates of $259.17 million and marking an 18% increase YoY.

Hagerty’s strong performance was driven by growth across its business segments. Written premiums rose 12% YoY to $244.3 million, while marketplace revenue surged 176% to $29 million. The company also saw its operating income more than double to $25.7 million compared to the same period last year.

"We are off to a solid start to 2025, with first quarter revenue growth of 18%, net income growth of 233%, and Adjusted EBITDA growth of 45%," said McKeel Hagerty, CEO and Chairman.

The company reaffirmed its full-year 2025 outlook, projecting 12-13% total revenue growth and 30-40% net income growth compared to 2024. Hagerty expects written premium growth of 13-14% for the year.

Hagerty’s retention rate for policies in force improved slightly to 89% as of March 31, 2025, up from 88.7% in the prior year period. Total (EPA:TTEF) insured vehicles increased 8% YoY to 2.6 million.

The company’s first quarter results included a $10.4 million pre-tax loss impact from Southern California wildfires. Despite this, Hagerty maintained its full-year guidance, demonstrating confidence in its business model and growth trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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