On November 4, 2025, Hagerty, Inc. (NYSE: HGTY), a leading specialty vehicle insurance provider and automotive enthusiast brand, announced its financial results for the third quarter and year-to-date period ending September 30, 2025. The company reported robust growth across several key financial metrics, demonstrating its strong competitive position in the market.

2. Impressive Revenue Growth

Hagerty reported a total revenue increase of 18% year-over-year in Q3 2025, amounting to $380.0 million. The year-to-date total revenue also rose by 18%, reaching $1,068.3 million. This growth was largely driven by a 16% increase in Written Premium, which totaled $334.0 million for the quarter, and a 13% year-to-date increase to $934.4 million.

Commission and Fee Revenue Insights

The company's commission and fee revenue also showed significant growth, up 18% year-over-year in Q3 to $137.1 million, while year-to-date figures increased by 14% to $380.7 million. Notably, the Policies in Force Retention stood at 88.6%, slightly down from 88.8% in the previous year, with total insured vehicles increasing by 7% to 2.7 million.

3. Strong Operating Margins

Hagerty's operating income saw a remarkable 240% increase year-over-year to $34.3 million in Q3, contributing to a year-to-date operating income of $107.7 million, up 78%. The operating income margin expanded by approximately 590 basis points for the quarter, reflecting the company's effective cost management strategies.

Adjusted EBITDA and Net Income Growth

The company’s adjusted EBITDA—an important non-GAAP financial metric—increased by 106% year-over-year, reaching $49.7 million for the third quarter, while year-to-date adjusted EBITDA rose 46% to $153.1 million. Net income for Q3 surged 143% year-over-year to $46.2 million, while year-to-date net income grew 73% to $120.7 million.

4. Positive Outlook for 2025

CEO McKeel Hagerty expressed optimism about the company’s trajectory, stating, "We delivered high rates of growth through the third quarter of 2025 with year-to-date revenue gains of 18%." The company has revised its 2025 outlook for the second consecutive quarter, now expecting total revenue growth of 14-15% and net income growth of 58-65% for the full year.

Future Growth Projections

Looking ahead, Mr. Hagerty indicated that 2026 is set to be another promising year for growth and margin expansion, supported by the development of new partnerships and initiatives projected through 2030.

5. Membership and Marketplace Revenue

Hagerty's Membership, marketplace, and other revenue surged by 34% year-over-year to $55.9 million in Q3, with year-to-date figures increasing 54% to $153.4 million. The Marketplace revenue specifically saw a 58% increase to $34.2 million in Q3, and a remarkable 135% year-over-year increase to $89.9 million for the year-to-date period, attributed to higher inventory sales and the introduction of European auctions.

Membership Growth

The Hagerty Drivers Club (HDC) continued to grow, with paid members increasing by 6% year-over-year to approximately 921,000, compared to 868,000 in the previous year.

6. Financial Position and Outlook

As of September 30, 2025, Hagerty reported $160.4 million in unrestricted cash and $178.0 million in total debt, with $75.0 million of this amount secured as leverage for Broad Arrow Capital's portfolio of collector car loans.

In conclusion, Hagerty's robust financial performance in Q3 2025 and its optimistic outlook for the future reflect the company's strong market position and commitment to serving automotive enthusiasts. The combination of revenue growth, improved margins, and strategic initiatives positions Hagerty well for sustained success in the coming years.

Original press release