HGTY earnings analysis
What we found in HGTY's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Hagerty, Inc. (HGTY) reported a Q1 2026 revenue of $311.8 million, a decrease of 5.0% from the prior year due to changes in revenue recognition under the Markel Fronting Arrangement. The company incurred a net loss of $12.7 million, contrasting with a profit of $27.3 million in the same period last year, but saw Adjusted EBITDA increase by 76.9% to $85.2 million.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Decline Year-on-Year
- HGTY reported revenue of $311.8 million, down 5.0% from $328.4 million in Q1 2025.
- Significant EPS Drop
- Diluted EPS fell to $(0.06) compared to $0.07 in Q1 2025, a decline of 185.7%.
- Increase in Earned Premium
- Earned premium, net rose 41.5% to $239.6 million, up from $169.4 million in Q1 2025.
- Strong Adjusted EBITDA Growth
- Adjusted EBITDA soared to $85.2 million, up 76.9% from $48.2 million a year ago.
- Increased Policy Acquisition Costs
- Policy acquisition costs climbed 31.8% to $101.9 million from $77.3 million due to the new contractual arrangement.
- Expanded Auction Revenue
- Despite overall revenue decline, auction revenue increased by 81% during a key event, indicating strong performance in Marketplace.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Revenues Impacted by New Accounting Standards
- Transition to the Markel Fronting Arrangement has drastically reduced commission revenue, leading to an 83.6% drop in this segment.
- Higher Operating Expenses
- Total expenses surged 15.1% to $306.3 million, driven by increased underwriting and lost adjustment expenses.
- Net Loss Forecast
- Reported a net loss of $12.7 million compared to net income of $27.3 million in the prior year, indicating financial vulnerabilities.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.06
- Segment
- Insurance
- Segment
- Marketplace
What they said about what is next.
Management expects written premiums to grow by 15-16% over the next year.
The filing reads worse than the one before it.
What came before.
- 10-K · February 26, 2026
- Hagerty positions itself as a leading specialist insurer and ecosystem for automotive enthusiasts, with insurance comprising 92% of 2025 revenue and 2.8 million vehicles insured as of December 31, 2025. The company is…
- 10-Q · August 4, 2025
- Hagerty reported quarterly revenue of $368.7M (three months ended June 30, 2025) and operating income of $47.7M, with continued growth across insurance (earned premium $177.8M), commissions/fees ($143.3M) and…
- 10-Q · May 7, 2025
- Hagerty reported a beat in Q1 2025 with revenue of $319,593,000 (vs. $271,708,000 in Q1 2024) and diluted EPS of $0.07 (vs. $(0.04) in Q1 2024). Operating income widened to $25,728,000 and the company generated…
- 10-K · March 4, 2025
- Hagerty positions itself as a vertically integrated, enthusiast-focused ecosystem centered on specialty collector-car insurance (MGA + Hagerty Re) supplemented by memberships, marketplace and media. The company…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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