Hagerty, Inc. (NYSE: HGTY), a prominent automotive enthusiast brand and leading provider of specialty vehicle insurance, has released its financial results for the first quarter ended March 31, 2025. The company showcased robust growth across all key financial metrics, underscoring its strong market position and commitment to innovation.

1. Solid Start to 2025

Hagerty’s CEO and Chairman, McKeel Hagerty, emphasized the company’s promising start to 2025. “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%," he stated. The results reflect the company’s ongoing strategic investments in technology aimed at enhancing operational efficiency and delivering exceptional value to its members.

Hagerty’s resilience is attributed to its strong retention rates and a growing member base, characteristics that have historically insulated the company from economic fluctuations. “Our industry-leading retention delivers visible revenue streams augmented by consistently high rates of new member growth thanks to the strength of the Hagerty brand and value proposition," Mr. Hagerty added.

2. Financial Highlights of Q1 2025

Hagerty’s financial results for the first quarter reveal several noteworthy achievements:

Total Revenue: Increased by 18% year-over-year to $319.6 million.

Written Premium: Rose by 12% year-over-year to $244.3 million.

Commission and Fee Revenue: Grew by 13% year-over-year, totaling $100.3 million.

Policies in Force Retention: Improved to 89.0%, up from 88.7% in the prior year, while total insured vehicles increased by 8% to 2.6 million.

Loss Ratio: Reported at 42.0%, which included a 6.7% impact from catastrophe losses, notably $10.4 million in pre-tax losses from the Southern California wildfires.

Earned Premium: Increased by 12% year-over-year to $169.4 million.

3. Membership and Marketplace Growth

The company also reported significant growth in its membership and marketplace segments:

Membership, Marketplace, and Other Revenue: Jumped by 60% year-over-year to $50.0 million.

Marketplace Revenue: Saw an impressive increase of 176% year-over-year, reaching $29.0 million, driven by higher inventory turnover, including notable sales from the Academy of Art University Collection.

Membership Revenue: Grew by 14% year-over-year to $15.3 million.

Hagerty Drivers Club (HDC) Membership: Increased by 7% year-over-year to approximately 889,000, up from 831,000.

4. Operating Performance

Hagerty’s operational metrics further illustrate its strong performance:

Operating Income: Rose to $25.7 million, an increase of $13.5 million from the previous year, with a corresponding increase in operating income margin by 360 basis points.

Net Income: Soared to $27.3 million, reflecting a rise of $19.1 million year-over-year.

Adjusted EBITDA: Reached $39.6 million, marking an increase of $12.3 million compared to the prior year.

5. Outlook for 2025

Looking ahead, Hagerty remains optimistic about its growth trajectory. The company reaffirms its expectation of achieving total revenue growth of 12-13% in 2025, supported by ongoing efforts to enhance customer acquisition and service efficiency. Mr. Hagerty noted, “Operating margin expansion should drive even faster rates of bottom-line growth, with net income expected to increase by 30-40% compared to 2024.”

6. Financial Position

As of March 31, 2025, Hagerty’s financial position remains robust, with $128 million in cash and $147 million in total debt. The company also increased its borrowing capacity under its unsecured credit facility to $375 million, benefiting from lower borrowing costs and a maturity date set for March 2030.

In summary, Hagerty Inc. has demonstrated a strong start to 2025, with impressive growth in revenue, income, and membership, coupled with a solid outlook for the remainder of the year. This performance highlights the company’s strategic focus on enhancing its brand and delivering value to automotive enthusiasts.

Original press release