8-K
Hagerty, Inc. (HGTY)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
August 4, 2025
Date of Report (date of earliest event reported)
HAGERTY, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 001-40244 | 86-1213144 |
|---|---|---|
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer<br><br>Identification No.) |
121 Drivers Edge
Traverse City, Michigan 49684
(Address of principal executive offices and zip code)
(800) 922-4050
Registrant's telephone number, including area code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbols | Name of each exchange on which registered |
|---|---|---|
| Class A common stock, par value $0.0001 per share | HGTY | The New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 2.02 Results of Operations and Financial Condition
On August 4, 2025, Hagerty, Inc. (the "Company") announced its financial results for the fiscal quarter ended June 30, 2025 by issuing a letter to its stockholders and a press release. The Company will also be holding a conference call on August 4, 2025 to discuss its financial results for the three and six months ended June 30, 2025. The full text of the Company's letter to its stockholders and press release are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively.
ITEM 7.01 Regulation FD Disclosure
On August 4, 2025, the Company posted to the investor relations page of its website an investor presentation expected to be used by the Company in connection with certain future presentations to investors and others. A copy of the investor presentation is attached as Exhibit 99.3 to this Current Report on Form 8-K.
The Company uses its investor relations website as a means of disclosing material non-public information, announcing upcoming investor conferences and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor the Company's investor relations website in addition to following its press releases, SEC filings and public conference calls and webcasts.
The information contained in Item 2.02 and Item 7.01 of this Current Report on Form 8-K, including Exhibits 99.1, 99.2 and 99.3, shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. | Description |
|---|---|
| 99.1 | Letter to Stockholders, dated August 4, 2025 |
| 99.2 | Press Release, dated August 4, 2025 |
| 99.3 | Investor Presentation, dated August 4, 2025 |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| HAGERTY, INC. | |
|---|---|
| /s/ Diana M. Chafey | |
| Date: August 4, 2025 | Diana M. Chafey |
| Chief Legal Officer |
a25-q2stockholderletter0
Stockholder Letter Q2 2025
HAGERTY Q2 2025 | 2 Summer driving season is the best time to be a classic car owner. Top down, windows open, music up, chrome gleaming — these are the simple joys that ignite a lifelong love affair with automobiles. For the true enthusiast, driving is never just about the destination, but the timeless passion that fuels every journey. Hagerty is built to serve that passion. Our unique business model and dynamic brand create deep competitive economic moats. These moats are the result of deliberate strategies that make our company exceptionally difficult for competitors to challenge or displace. No other company, for instance, puts the car experience first and foremost. But we do because without car love, Hagerty simply would not exist. For investors, this means predictable, compounding profit growth. Today, for instance, we are celebrating our tenth straight quarter of profitable growth and cash flow generation. Companies with wide and deep moats like ours are better positioned to generate strong free cash flows, achieve higher returns on capital, and weather economic cycles. The combination of high retention (89%) and a stellar NPS (82) signals that our business is not only loved by its customers but also built to last. In a world where disruption is constant, our moats give us the ability to adapt, innovate, and continue to deliver value to our customers and shareholders. Dear Hagerty Stockholders, Members and One Team Hagerty, Stockholder Letter SERVING AUTOMOTIVE PASSION ON THE COVER: Making the most of summer driving season in a 1975 Ferrari Dino 308 GT4. PHOTOGRAPHER: CAMERON NEVEU
HAGERTY Q2 2025 | 3 Proof is in the quality of our first half results for 2025. Revenue is up 18% to $688 million, powered by new business count. Profit growth was even higher, with net income gains of 46% to $74 million and Adjusted EBITDA growth of 28% to $103 million. The strength of the first half and business momentum into the second half allowed us to increase our full year 2025 outlook from prior expectations. The Rise of Broad Arrow We recognized car passion as an opportunity a long time ago and began creating services to meet the needs of this vast market beyond insurance. Today, I am excited to share an update on how we are advancing our mission to preserve driving and fuel car culture with Broad Arrow Auctions. Led by Kenneth Ahn and his team of veteran live auction experts, Broad Arrow has grown rapidly since we acquired the company in 2022. In three short years, Broad Arrow has established itself as the No. 2 auction house in the global market in the premium segment (auction houses with average sale prices of greater than $200,000) by total sales in the first half of 2025. Earlier this year, we teased our plans to expand into the lucrative European market. In May, we held our first-ever continental auction in collaboration with BMW AG at the prestigious Concorso d’Eleganza Villa d’Este in Italy, achieving total sales of €31 million with 78% of all lots sold. The standout vehicle was a 1948 Ferrari 166 Spyder Corsa—which sold for a record €7,543,750. Since then, we have announced two more European auctions. The first will be held during the Zoute Grand Prix Car Week in Belgium on October 10 in partnership with The Zoute Concours, showcasing approximately 70 outstanding collector cars across a diverse range of categories, marques, and price levels on the shores of Knokke-Heist. The second, our Zurich auction in collaboration with Auto Zürich, is November 1 at the magnificent Dolder Grand Hotel. This event will highlight 60 highly sought-after collector cars sourced from around the world and will serve as the grand finale of the Auto Zürich show. In the United States, our exciting Monterey Jet Center Auction is just one week away (August 13–14), marking the start of Monterey Car Week. Held alongside Motorlux, our elegant evening soiree featuring cars, aircraft, and haute cuisine, the two events will draw thousands of guests from around the globe. Last year’s auction achieved $72 million in total sales with 85% of all lots sold. We hope to do even better this year. There is a deep human motivation behind our decision to enter—and now expand— our auction business. As historian Niall
HAGERTY Q2 2025 | 4 Ferguson famously noted, one of the “killer apps” that propelled Western civilization forward was the universal love of shopping. This powerful impulse brings us close to the heart of what makes the car world so special. It’s not just about ownership or appreciation—it’s also about the excitement of the chase: buying, selling, and searching for that dream car you’ve always longed for. The Opportunity Before Us What makes collectible cars especially exciting is that their numbers grow with each passing decade. While Hagerty is undeniably the market leader in insuring these vehicles, we currently protect only around 2.6 million out of the total addressable market. That means, while we are the market leader, we have a long and lucrative runway ahead. We are glad you are on this road trip with us. And, as always, I want to take this opportunity to thank One Team Hagerty for their incredible work. We could not thrive without you and your talents. Until next time, keep on driving. McKeel Hagerty CEO and Chairman, Hagerty Cruising the California coast in a 1974 Chevrolet Corvette convertible. PHOTOGRAPHER: JAMES LIPMAN
Document
For Immediate Release
Hagerty Reports Second Quarter 2025 Results
Increases 2025 Outlook for Revenue and Profit Growth
•The Company increased its full year 2025 outlook for Total Revenue growth to 13-14%, Net Income growth of 43-53%, and Adjusted EBITDA growth of 30-38%
•Second quarter 2025 Total Revenue increased 18% year-over-year to $368.7 million, and year-to-date 2025 Total Revenue increased 18% to $688.3 million
•Second quarter 2025 Written Premium increased 11% year-over-year to $356.0 million, and year-to-date 2025 Written Premium increased 11% to $600.3 million
•Second quarter 2025 Marketplace revenue increased 327% year-over-year to $26.8 million, and year-to-date 2025 Marketplace revenue increased 232% to $55.8 million
•Second quarter 2025 Operating Income increased 25% year-over-year to $47.7 million, and year-to-date 2025 Operating Income increased 46% to $73.4 million
•Second quarter 2025 Net Income increased 11% year-over-year to $47.2 million, and year-to-date 2025 Net Income increased 46% to $74.5 million
•Second quarter 2025 Adjusted EBITDA increased 20% year-over-year to $63.7 million, and year-to-date 2025 Adjusted EBITDA increased 28% to $103.4 million
•Second quarter 2025 Basic and Diluted Earnings Per Share was $0.09, and year-to-date 2025 Basic and Diluted Earnings Per Share was $0.16
•The Company announced a non-binding LOI for a new fronting arrangement with Markel that would result in Hagerty controlling 100% of the premium as of January 1, 2026
TRAVERSE CITY, Michigan, August 4, 2025 /PRNewswire/ – Hagerty, Inc. (NYSE: HGTY), an automotive enthusiast brand and leading specialty vehicle insurance provider, announced today financial results for the three and six months ended June 30, 2025.
“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%. We continued to expand our margins while making large investments in future growth, including rolling out State Farm Classic+, launching our Enthusiast+ product, building our European Marketplace team, and investing in the technology that will enable further margin expansion as we scale up over the coming years,” said McKeel Hagerty, Chief Executive Officer and Chairman of Hagerty.
“Given our first half results and strong business momentum, we have increased our 2025 revenue growth outlook to 13-14% as we help car enthusiasts protect, buy and sell, and enjoy their special vehicles. Margins are expanding faster than expected in our original outlook, and we now expect to deliver net income growth of 43-53% in 2025. We are well positioned for accelerating rates of top and bottom line growth as we move into 2026, including the recently announced evolution of our partnership with Markel that would result in Hagerty controlling 100% of the premium next year,” added Mr. Hagerty.
SECOND QUARTER AND YTD 2025 FINANCIAL HIGHLIGHTS
•Second quarter 2025 Total Revenue increased 18% year-over-year to $368.7 million, and year-to-date 2025 Total Revenue increased 18% year-over-year to $688.3 million
•Second quarter 2025 Written Premium increased 11% year-over-year to $356.0 million, and year-to-date 2025 Written Premium increased 11% year-over-year to $600.3 million
•Second quarter 2025 Commission and fee revenue increased 11% year-over-year to $143.3 million, and year-to-date 2025 Commission and fee revenue increased 12% year-over-year to $243.6 million
•Policies in Force Retention was 88.7% as of June 30, 2025 compared to 88.7% in the prior year period, and total insured vehicles increased 6% year-over-year to 2.7 million
•Second quarter 2025 Loss Ratio was 42.3% including 1.6% of impact from catastrophe losses, compared to 41.1% in the prior year period. Year-to-date 2025 Loss Ratio was 42.2% including 4.1% of impact from catastrophe losses, compared to 41.1% in the prior year period
•Second quarter 2025 Earned Premium increased 13% year-over-year to $177.8 million, and year-to-date 2025 Earned Premium increased 12% year-over-year to $347.1 million
•Second quarter 2025 Membership, marketplace and other revenue increased 78% year-over-year to $47.6 million, and year-to-date 2025 Membership, marketplace and other revenue increased 68% year-over-year to $97.6 million
•Second quarter 2025 Marketplace revenue increased 327% year-over-year to $26.8 million, and year-to-date 2025 Marketplace revenue increased 232% year-over-year to $55.8 million
◦The increase was primarily due to a higher level of inventory sales as well as our inaugural European auction at Concorso d’Eleganza Villa d’Este in May
•Second quarter 2025 Membership revenue increased 11% year-over-year to $15.7 million, and year-to-date 2025 Membership revenue increased 12% year-over-year to $31.0 million
◦Hagerty Drivers Club (HDC) paid members increased 6% year-over-year to approximately 908,000 compared to 854,000
•Second quarter 2025 Operating Income increased 25% year-over-year to $47.7 million, and year-to-date 2025 Operating Income increased 46% year-over-year to $73.4 million
•Second quarter 2025 Operating Income margin increased by 70 bps, and year-to-date 2025 Operating Income margin increased by 210 bps compared to the prior year periods
◦Year-to-date 2025 General and administrative expenses increased 8.5% due primarily to an increase in software-related costs, and Salary and benefits increased 8.2% due to merit increases and higher headcount
•Second quarter 2025 Depreciation and amortization was $8.8 million compared to $10.0 million in the prior year period, and year-to-date 2025 depreciation and amortization was $18.3 million compared to $20.6 million in the prior year period
•Second quarter 2025 Net Income increased 11% year-over-year to $47.2 million, and year-to-date 2025 Net Income increased 46% year-over-year to $74.5 million
•Second quarter 2025 Net Income included $5.7 million of interest and other income (expense), which included $10.7 million in interest and investment income, partially offset by $2.0 million of interest expense and a $3.1 million increase in our TRA liability
•Year-to-date 2025 Net Income included $12.7 million of interest and other income (expense), which included $19.5 million in interest and investment income, partially offset by $3.9 million of interest expense and a $3.1 million increase in our TRA liability
•Second quarter 2025 Adjusted EBITDA (a non-GAAP measure) increased 20% year-over-year to $63.7 million, and year-to-date 2025 Adjusted EBITDA increased 28% year-over-year to $103.4 million
•Second quarter 2025 Basic and Diluted Earnings Per Share was $0.09, and year-to-date 2025 Basic and Diluted Earnings Per Share was $0.16
•Second quarter 2025 Adjusted Earnings Per Share (a non-GAAP measure) was $0.13, and year-to-date 2025 Adjusted Earnings Per Share was $0.21
•The Company ended the quarter with $140.3 million of unrestricted cash and $176.1 million of total debt, $38.9 million of which is back leverage for Broad Arrow Capital’s portfolio of loans collateralized by collector cars
The definitions and reconciliations of non-GAAP financial measures are provided under the heading Key Performance Indicators and Certain Non-GAAP Financial Measures at the end of this press release.
2025 OUTLOOK - SUSTAINED REVENUE GROWTH AND MARGIN EXPANSION
We believe 2025 is on track to be another year of strong profit growth for Hagerty as our team executes on our long-term plan to create value for stakeholders by delivering high rates of compounding revenue growth through investing in our long-term competitive advantages. In 2025, these investments aggregate to $20 million of elevated spend, primarily in our new technology platform, Duck Creek. Duck Creek will help us efficiently grow our business over the coming years. We remain focused on growing our Insurance, Membership and Marketplace businesses, positioning us to deliver sustained, compounding profit growth over the coming years, and fund our purpose to save driving and fuel car culture for future generations.
•For full year 2025, Hagerty anticipates:
◦Written Premium growth of 13-14%
◦Total Revenue growth of 13-14%
◦Net Income growth of 43-53%
◦Adjusted EBITDA growth of 30-38%
| Prior 2025 Outlook1 () | Revised 2025 Outlook () | ||
|---|---|---|---|
| in thousands | 2024 Results | Low End | Low End |
| Total Written Premium | $1,044,492 | 1,180,000 | 1,180,000 |
| Total Revenue | $1,200,038 | 1,344,000 | 1,356,000 |
| Net Income2, 4 | $78,303 | 102,000 | 112,000 |
| Adjusted EBITDA3, 4 | $124,473 | 150,000 | 162,000 |
All values are in US Dollars.
1 Prior 2025 Outlook shared on the Company’s first quarter earnings call on May 7th, 2025.
2 Fully diluted share count of approximately 361 million shares including Class A Common Stock, Class V Common Stock, Series A Convertible Preferred Stock, and share-based compensation awards.
3 See Non-GAAP Financial Measures below for additional information regarding this non-GAAP financial measure.
4 Profit ranges incorporate $20 million of elevated technology investments in 2025, as well as approximately $10 million pre-tax impact from the Southern California wildfires.
Conference Call Details
Hagerty will hold a conference call to discuss the financial results today at 10:00 am Eastern Time. A webcast of the conference call, including its Investor Presentation highlighting second quarter 2025 financial results, will be available on Hagerty’s investor relations website at investor.hagerty.com. The dial-in for the conference call is (877) 423-9813 (toll-free) or (201) 689-8573 (international). Please dial the number 10 minutes prior to the scheduled start time.
A webcast replay of the call will be available at investor.hagerty.com following the call.
Forward-Looking Statements
This press release contains statements that constitute "forward-looking statements" within the meaning of the federal securities laws. All statements provided, other than statements of historical fact, are forward-looking statements, including those regarding Hagerty’s future operating results and financial position, Hagerty’s business strategy and plans, products, services, and technology implementations, market conditions, growth and trends, expansion plans and opportunities, and Hagerty’s objectives for future operations. The words "anticipate," "believe," "envision," "estimate," "expect," "intend," "may," "plan," "predict," "project," "target," "potential," "will," "would," "could," "should," "continue," "ongoing," "contemplate," and similar expressions, and the negative of these expressions, are intended to identify forward-looking statements.
Hagerty has based these forward-looking statements largely on current expectations about future events, which may not materialize. Actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. These factors include, among other things, Hagerty’s ability to: (i) compete effectively within our industry and attract and retain our insurance policyholders and paid Hagerty Drivers Club ("HDC") subscribers; (ii) maintain key strategic relationships with our insurance distribution and underwriting carrier partners; (iii) prevent, monitor, and detect fraudulent activity; (iv) manage risks associated with disruptions, interruptions, outages or other issues with our technology platforms or our use of third-party services; (v) accelerate the adoption of our membership and marketplace products and services, as well as any new insurance programs and products we offer; (vi) enter into and successfully implement the proposed fronting arrangement with Markel; (vii) achieve the anticipated benefits of the proposed fronting arrangement with Markel; (viii) manage the cyclical nature of the insurance business, including through any periods of recession, economic downturn or inflation; (ix) address unexpected increases in the frequency or severity of claims, and (x) comply with the numerous laws and regulations applicable to our business, including state, federal and foreign laws relating to insurance and rate increases, privacy, the internet, and accounting matters.
The forward-looking statements herein represent the judgment of Hagerty as of the date of this release and Hagerty disclaims any intent or obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise. This press release should be read in conjunction with the information included in Hagerty's other press releases, reports and other filings with the Securities and Exchange Commission. Understanding the information contained in these filings is important in order to fully understand Hagerty’s reported financial results and its business outlook for future periods.
About Hagerty, Inc. (NYSE: HGTY)
Hagerty is an automotive enthusiast brand committed to saving driving and to fueling car culture for future generations. The company is a leading provider of specialty vehicle insurance, expert car valuation data and insights, live and digital car auction services, immersive events and automotive entertainment custom made for the 67 million Americans who self-describe as car enthusiasts. Hagerty also operates in Canada and the U.K. and is home to Hagerty Drivers Club, a community of over 900,000 who can’t get enough of cars. For more information, please visit www.hagerty.com or connect with us on Facebook, Instagram, Twitter and LinkedIn.
More information can be found at newsroom.hagerty.com.
Contact: Jay Koval, investor@hagerty.com
Hagerty Media Contact: Andrew Heller, aheller@hagerty.com
Category: Financial
Source: Hagerty
Hagerty, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
| Three months ended June 30, | |||||||
|---|---|---|---|---|---|---|---|
| 2025 | 2024 | Change | % Change | ||||
| REVENUE: | in thousands (except percentages and per share amounts) | ||||||
| Commission and fee revenue | $ | 143,287 | $ | 128,816 | 11.2 | % | |
| Earned premium | 177,785 | 157,612 | 20,173 | 12.8 | % | ||
| Membership, marketplace and other revenue | 47,627 | 26,797 | 20,830 | 77.7 | % | ||
| Total revenue | 368,699 | 313,225 | 55,474 | 17.7 | % | ||
| OPERATING EXPENSES: | |||||||
| Salaries and benefits | 64,062 | 57,693 | 6,369 | 11.0 | % | ||
| Ceding commissions, net | 82,938 | 73,446 | 9,492 | 12.9 | % | ||
| Losses and loss adjustment expenses | 75,213 | 64,729 | 10,484 | 16.2 | % | ||
| Sales expense | 67,380 | 47,990 | 19,390 | 40.4 | % | ||
| General and administrative expenses | 22,574 | 21,373 | 1,201 | 5.6 | % | ||
| Depreciation and amortization | 8,833 | 10,014 | (1,181) | (11.8) | % | ||
| Gain related to divestiture | — | (87) | 87 | N/M | |||
| Total operating expenses | 321,000 | 275,158 | 45,842 | 16.7 | % | ||
| OPERATING INCOME | 47,699 | 38,067 | 9,632 | (25.3) | % | ||
| Loss related to warrant liabilities, net | — | (1,941) | 1,941 | N/M | |||
| Interest and other income (expense), net | 5,664 | 12,342 | (6,678) | (54.1) | % | ||
| INCOME BEFORE INCOME TAX EXPENSE | 53,363 | 48,468 | 4,895 | 10.1 | % | ||
| Income tax expense | (6,161) | (5,811) | (350) | 6.0 | % | ||
| NET INCOME | 47,202 | 42,657 | 4,545 | 10.7 | % | ||
| Net income attributable to non-controlling interest | (36,229) | (32,279) | (3,950) | 12.2 | % | ||
| Accretion of Series A Convertible Preferred Stock | (1,875) | (1,839) | (36) | 2.0 | % | ||
| NET INCOME ATTRIBUTABLE TO CLASS A COMMON STOCKHOLDERS | $ | 9,098 | $ | 8,539 | 6.5 | % | |
| Earnings per share of Class A Common Stock: | |||||||
| Basic | $ | 0.09 | $ | 0.09 | |||
| Diluted | $ | 0.09 | $ | 0.09 | |||
| Weighted average shares of Class A Common Stock outstanding: | |||||||
| Basic | 90,698 | 85,687 | |||||
| Diluted | 90,698 | 85,687 |
All values are in US Dollars.
N/M = Not meaningful
Hagerty, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
| Six months ended June 30, | |||||||
|---|---|---|---|---|---|---|---|
| 2025 | 2024 | Change | % Change | ||||
| REVENUE: | in thousands (except percentages and per share amounts) | ||||||
| Commission and fee revenue | $ | 243,574 | $ | 217,656 | 11.9 | % | |
| Earned premium | 347,140 | 309,231 | 37,909 | 12.3 | % | ||
| Membership, marketplace and other revenue | 97,578 | 58,046 | 39,532 | 68.1 | % | ||
| Total revenue | 688,292 | 584,933 | 103,359 | 17.7 | % | ||
| OPERATING EXPENSES: | |||||||
| Salaries and benefits | 123,165 | 113,809 | 9,356 | 8.2 | % | ||
| Ceding commissions, net | 160,271 | 144,376 | 15,895 | 11.0 | % | ||
| Losses and loss adjustment expenses | 146,343 | 127,085 | 19,258 | 15.2 | % | ||
| Sales expense | 122,006 | 87,650 | 34,356 | 39.2 | % | ||
| General and administrative expenses | 44,759 | 41,235 | 3,524 | 8.5 | % | ||
| Depreciation and amortization | 18,321 | 20,574 | (2,253) | (11.0) | % | ||
| Gain related to divestiture | — | (87) | 87 | N/M | |||
| Total operating expenses | 614,865 | 534,642 | 80,223 | 15.0 | % | ||
| OPERATING INCOME | 73,427 | 50,291 | 23,136 | 46.0 | % | ||
| Loss related to warrant liabilities, net | — | (8,081) | 8,081 | N/M | |||
| Interest and other income (expense), net | 12,718 | 19,586 | (6,868) | (35.1) | % | ||
| INCOME BEFORE INCOME TAX EXPENSE | 86,145 | 61,796 | 24,349 | 39.4 | % | ||
| Income tax expense | (11,650) | (10,940) | (710) | 6.5 | % | ||
| NET INCOME | 74,495 | 50,856 | 23,639 | 46.5 | % | ||
| Net income attributable to non-controlling interest | (55,151) | (41,829) | (13,322) | 31.8 | % | ||
| Accretion of Series A Convertible Preferred Stock | (3,750) | (3,677) | (73) | 2.0 | % | ||
| NET INCOME ATTRIBUTABLE TO CLASS A COMMON STOCKHOLDERS | $ | 15,594 | $ | 5,350 | 191.5 | % | |
| Earnings per share of Class A Common Stock: | |||||||
| Basic | $ | 0.16 | $ | 0.06 | |||
| Diluted | $ | 0.16 | $ | 0.06 | |||
| Weighted average shares of Class A Common Stock outstanding: | |||||||
| Basic | 90,374 | 85,171 | |||||
| Diluted | 91,247 | 86,072 |
All values are in US Dollars.
N/M = Not meaningful
Hagerty, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
| June 30, | December 31, | |||
|---|---|---|---|---|
| 2025 | 2024 | |||
| ASSETS | in thousands (except share amounts) | |||
| Current Assets: | ||||
| Cash and cash equivalents | $ | 140,300 | $ | 104,784 |
| Restricted cash and cash equivalents | 190,286 | 128,061 | ||
| Investments | 119,326 | 73,957 | ||
| Accounts receivable | 107,925 | 84,763 | ||
| Premiums receivable | 249,830 | 153,748 | ||
| Commissions receivable | 27,362 | 20,430 | ||
| Notes receivable | 83,478 | 45,417 | ||
| Deferred acquisition costs, net | 178,430 | 156,466 | ||
| Other current assets | 116,047 | 90,779 | ||
| Total current assets | 1,212,984 | 858,405 | ||
| Investments | 482,248 | 515,570 | ||
| Notes receivable | 17,931 | 11,555 | ||
| Property and equipment, net | 17,259 | 18,205 | ||
| Lease right-of-use assets | 42,549 | 44,485 | ||
| Intangible assets, net | 86,732 | 90,107 | ||
| Goodwill | 114,165 | 114,123 | ||
| Other long-term assets | 66,707 | 56,888 | ||
| TOTAL ASSETS | $ | 2,040,575 | $ | 1,709,338 |
| LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY | ||||
| Current Liabilities: | ||||
| Accounts payable, accrued expenses and other current liabilities | $ | 138,349 | $ | 73,383 |
| Losses payable and provision for unpaid losses and loss adjustment expenses | 259,050 | 266,878 | ||
| Ceding commissions payable | 113,080 | 77,389 | ||
| Advance premiums and due to insurers | 188,403 | 108,352 | ||
| Unearned premiums | 410,496 | 357,539 | ||
| Contract liabilities | 36,602 | 31,905 | ||
| Total current liabilities | 1,145,980 | 915,446 | ||
| Long-term lease liabilities | 40,903 | 43,178 | ||
| Long-term debt, net | 153,383 | 104,968 | ||
| Deferred tax liability | 21,857 | 18,065 | ||
| Contract liabilities | 14,334 | 15,334 | ||
| Other long-term liabilities | 3,267 | 4,178 | ||
| TOTAL LIABILITIES | 1,379,724 | 1,101,169 | ||
| Commitments and Contingencies | — | — | ||
| TEMPORARY EQUITY 1 | ||||
| Preferred stock, $0.0001 par value (20,000,000 shares authorized, 8,483,561 Series A Convertible Preferred Stock issued and outstanding as of June 30, 2025 and December 31, 2024) | 82,813 | 84,663 | ||
| STOCKHOLDERS' EQUITY | ||||
| Class A Common Stock, $0.0001 par value (500,000,000 shares authorized, 90,715,648 and 90,032,391 issued and outstanding as of June 30, 2025 and December 31, 2024, respectively) | 9 | 9 | ||
| Class V Common Stock, $0.0001 par value (300,000,000 authorized, 251,033,906 shares issued and outstanding as of June 30, 2025 and December 31, 2024) | 25 | 25 | ||
| Additional paid-in capital | 604,621 | 603,780 | ||
| Accumulated earnings (deficit) | (432,634) | (451,978) | ||
| Accumulated other comprehensive income (loss) | 262 | (1,514) | ||
| Total stockholders' equity | 172,283 | 150,322 | ||
| Non-controlling interest | 405,755 | 373,184 | ||
| Total equity | 578,038 | 523,506 | ||
| TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY | $ | 2,040,575 | $ | 1,709,338 |
1 The Series A Convertible Preferred Stock is recorded within Temporary Equity because it has equity conversion and cash redemption features.
Hagerty, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
| Six months ended June 30, | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| OPERATING ACTIVITIES: | in thousands | |||
| Net income | $ | 74,495 | $ | 50,856 |
| Adjustments to reconcile net income to net cash from operating activities: | ||||
| Loss on disposals of equipment, software and other assets | 1,211 | — | ||
| Loss related to warrant liabilities, net | — | 8,081 | ||
| Increase (decrease) in tax receivable agreement liability | 3,078 | — | ||
| Depreciation and amortization | 18,321 | 20,574 | ||
| Provision for deferred taxes | 2,061 | 1,984 | ||
| Share-based compensation expense | 9,538 | 8,926 | ||
| Non-cash lease expense | 4,226 | 4,038 | ||
| Realized (gain) loss on investments, net | (879) | (548) | ||
| (Accretion) amortization of discount and premium, net | (2,316) | (769) | ||
| Other | 355 | 1,312 | ||
| Changes in operating assets and liabilities: | ||||
| Accounts, premiums and commissions receivable | (148,883) | (39,306) | ||
| Deferred acquisition costs, net | (21,964) | (17,670) | ||
| Losses payable and provision for unpaid losses and loss adjustment expenses | (7,828) | 19,037 | ||
| Ceding commissions payable | 35,691 | (7,639) | ||
| Advance premiums and due to insurers | 78,846 | 75,869 | ||
| Unearned premiums | 52,957 | 45,234 | ||
| Operating lease assets and liabilities | (4,534) | (4,531) | ||
| Other assets and liabilities, net | 3,339 | (43,193) | ||
| Net Cash Provided by Operating Activities | 97,714 | 122,255 | ||
| INVESTING ACTIVITIES: | ||||
| Capital expenditures | (11,549) | (11,936) | ||
| Acquisitions, net of cash acquired, and other investments | — | (3,843) | ||
| Issuance of notes receivable | (26,617) | (32,136) | ||
| Collection of notes receivable | 8,091 | 19,354 | ||
| Purchases of fixed maturity securities | (98,455) | (455,766) | ||
| Proceeds from sales of fixed maturity securities | 21,341 | 7,570 | ||
| Proceeds from maturities of fixed maturity securities | 75,470 | 5,596 | ||
| Purchases of equity securities | (347) | (9,407) | ||
| Proceeds from sales of equity securities | 378 | — | ||
| Other investing activities | (151) | 631 | ||
| Net Cash Used in Investing Activities | (31,839) | (479,937) | ||
| FINANCING ACTIVITIES: | ||||
| Payments on long-term debt | (124,493) | (60,757) | ||
| Proceeds from long-term debt, net of issuance costs | 192,339 | 25,482 | ||
| Distributions paid to non-controlling interest unit holders | (30,380) | (5,320) | ||
| Payment of Series A Convertible Preferred Stock dividends | (5,600) | (5,600) | ||
| Funding of TRA liability payments | (223) | — | ||
| Funding of employee tax obligations upon vesting of share-based payments | (2,452) | (4,588) | ||
| Other financing activities | 289 | — | ||
| Net Cash Provided by (Used in) Financing Activities | 29,480 | (50,783) | ||
| Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | 2,386 | (289) | ||
| Change in cash and cash equivalents and restricted cash and cash equivalents | 97,741 | (408,754) | ||
| Beginning cash and cash equivalents and restricted cash and cash equivalents | 232,845 | 724,276 | ||
| Ending cash and cash equivalents and restricted cash and cash equivalents | $ | 330,586 | $ | 315,522 |
Hagerty, Inc.
Key Performance Indicators and Certain Non-GAAP Financial Measures
Key Performance Indicators
The tables below present a summary of our Key Performance Indicators, which include important operational metrics, as well as certain financial measures prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and non-GAAP financial measures. We use these Key Performance Indicators to evaluate our business, measure our performance, identify trends against planned initiatives, prepare financial projections, and make strategic decisions. We believe these Key Performance Indicators are useful in evaluating our performance when read together with our Condensed Consolidated Financial Statements prepared in accordance with GAAP.
| Three months ended June 30, | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | Change | ||||||||||
| Operational Metrics | dollars in thousands (except per share amounts) | |||||||||||
| Total Written Premium | $ | 355,985 | $ | 321,173 | $ | 34,812 | 10.8 | % | ||||
| Hagerty Re Loss Ratio | 42.3 | % | 41.1 | % | 1.2 | % | N/M | |||||
| Hagerty Re Combined Ratio | 89.6 | % | 88.1 | % | 1.5 | % | N/M | |||||
| New Business Count — Insurance | 87,872 | 89,049 | (1,177) | (1.3) | % | |||||||
| GAAP Financial Measures | ||||||||||||
| Total Revenue | $ | 368,699 | $ | 313,225 | $ | 55,474 | 17.7 | % | ||||
| Operating Income | $ | 47,699 | $ | 38,067 | $ | 9,632 | 25.3 | % | ||||
| Net Income | $ | 47,202 | $ | 42,657 | $ | 4,545 | 10.7 | % | ||||
| Basic Earnings Per Share | $ | 0.09 | $ | 0.09 | $ | — | — | % | ||||
| Diluted Earnings Per Share | $ | 0.09 | $ | 0.09 | $ | — | — | % | ||||
| Non-GAAP Financial Measures | ||||||||||||
| Adjusted EBITDA | $ | 63,744 | $ | 53,113 | $ | 10,631 | 20.0 | % | ||||
| Adjusted Earnings Per Share | $ | 0.13 | $ | 0.12 | $ | 0.01 | — | % | ||||
| Six months ended June 30, | ||||||||||||
| 2025 | 2024 | Change | ||||||||||
| Operational Metrics | dollars in thousands (except per share amounts) | |||||||||||
| Total Written Premium | $ | 600,312 | $ | 539,459 | $ | 60,853 | 11.3 | % | ||||
| Hagerty Re Loss Ratio | 42.2 | % | 41.1 | % | 1.1 | % | N/M | |||||
| Hagerty Re Combined Ratio | 89.1 | % | 88.3 | % | 0.8 | % | N/M | |||||
| New Business Count — Insurance | 143,181 | 148,335 | (5,154) | (3.5) | % | |||||||
| GAAP Financial Measures | ||||||||||||
| Total Revenue | $ | 688,292 | $ | 584,933 | $ | 103,359 | 17.7 | % | ||||
| Operating Income | $ | 73,427 | $ | 50,291 | $ | 23,136 | 46.0 | % | ||||
| Net Income | $ | 74,495 | $ | 50,856 | $ | 23,639 | 46.5 | % | ||||
| Basic Earnings Per Share | $ | 0.16 | $ | 0.06 | $ | 0.10 | 166.7 | % | ||||
| Diluted Earnings Per Share | $ | 0.16 | $ | 0.06 | $ | 0.10 | 166.7 | % | ||||
| Non-GAAP Financial Measures | ||||||||||||
| Adjusted EBITDA | $ | 103,352 | $ | 80,440 | $ | 22,912 | 28.5 | % | ||||
| Adjusted Earnings Per Share | $ | 0.21 | $ | 0.16 | $ | 0.05 | — | % |
N/M = Not meaningful
| June 30, | December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | Change | ||||||
| Operational Metrics | ||||||||
| Policies in Force | 1,559,798 | 1,506,451 | 53,347 | 3.5 | % | |||
| Policies in Force Retention | 88.7 | % | 89.0 | % | (0.3) | % | N/M | |
| Vehicles in Force | 2,664,611 | 2,576,700 | 87,911 | 3.4 | % | |||
| HDC Paid Member Count | 907,963 | 875,822 | 32,141 | 3.7 | % | |||
| Net Promoter Score (NPS) | 82 | 82 | — | — | % |
N/M = Not meaningful
Non-GAAP Financial Measures
Adjusted EBITDA
We define Adjusted EBITDA as consolidated Net income, excluding net interest and other income (expense), income tax expense, and depreciation and amortization, further adjusted to exclude (i) net gains and losses related to our warrant liabilities prior to the warrant exchange transaction that closed in July 2024 (the "Warrant Exchange"); (ii) share-based compensation expense; and when applicable, (iii) restructuring, impairment and related charges; (iv) gains, losses and impairments related to divestitures; and (v) certain other unusual items.
We present Adjusted EBITDA because we consider it to be an important supplemental measure of our performance and believe it is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. We use Adjusted EBITDA as a measure of the operating performance of our business on a consistent basis, as it removes the impact of items not directly resulting from our core operations.
By providing this non-GAAP financial measure, together with a reconciliation to Net income, which is the most comparable GAAP measure, we believe we are enhancing investors' understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. However, Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation, or as an alternative to, or a substitute for Net income or other financial statement data presented in our Condensed Consolidated Financial Statements as indicators of financial performance. Our definition of Adjusted EBITDA may be different than similarly titled measures used by other companies in our industry, which could reduce the usefulness of this non-GAAP financial measure when comparing our performance to that of other companies.
The following table reconciles Adjusted EBITDA to the most directly comparable GAAP measure, which is Net income:
| Three months ended<br>June 30, | Six months ended<br>June 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||||
| in thousands | ||||||||
| Net income | $ | 47,202 | $ | 42,657 | $ | 74,495 | $ | 50,856 |
| Interest and other (income) expense, net 1, 2 | (5,664) | (12,342) | (12,718) | (19,586) | ||||
| Income tax expense | 6,161 | 5,811 | 11,650 | 10,940 | ||||
| Depreciation and amortization | 8,833 | 10,014 | 18,321 | 20,574 | ||||
| EBITDA | 56,532 | 46,140 | 91,748 | 62,784 | ||||
| Loss related to warrant liabilities, net | — | 1,941 | — | 8,081 | ||||
| Share-based compensation expense | 5,146 | 4,383 | 9,538 | 8,926 | ||||
| Gain related to divestiture | — | (87) | — | (87) | ||||
| Other unusual items 3 | 2,066 | 736 | 2,066 | 736 | ||||
| Adjusted EBITDA | $ | 63,744 | $ | 53,113 | $ | 103,352 | $ | 80,440 |
1 Excludes interest expense related to the BAC Credit Facility, which is recorded within "Sales expense" in the Condensed Consolidated Statements of Operations.
2 Includes interest income and net investment income related to our investment portfolio.
3 Other unusual items includes certain legal settlement expenses, certain professional fees, and certain material severance expenses for the three and six months ended June 30, 2025 and professional fees associated with the Warrant Exchange for the three and six months ended June 30, 2024.
The following table reconciles Adjusted EBITDA for the year ended December 31, 2025 Outlook to the most directly comparable GAAP measure, which is Net income:
| 2025 Low | 2025 High | |||
|---|---|---|---|---|
| in thousands | ||||
| Net income | $ | 112,000 | $ | 120,000 |
| Interest and other (income) expense, net 1, 2 | (32,000) | (32,000) | ||
| Income tax expense | 23,000 | 25,000 | ||
| Depreciation and amortization | 39,000 | 39,000 | ||
| Share-based compensation expense | 20,000 | 20,000 | ||
| Adjusted EBITDA | $ | 162,000 | $ | 172,000 |
1 Excludes interest expense related to the BAC Credit Facility, which is recorded within "Sales expense" in the Condensed Consolidated Statements of Operations.
2 Includes interest income and net investment income related to our investment portfolio.
Adjusted EPS
We define Adjusted Earnings Per Share ("Adjusted EPS") as consolidated Net income, excluding net gains and losses related to our warrant liabilities prior to the Warrant Exchange, divided by our outstanding and total potentially dilutive securities, which includes (i) the weighted average issued and outstanding shares of Class A Common Stock; (ii) all issued and outstanding non-controlling interest units of THG; (iii) all issued and outstanding shares of our Series A Convertible Preferred Stock on an as-converted basis; (iv) all unissued share-based compensation awards; and (v) all unexercised warrants outstanding prior to the Warrant Exchange.
The most directly comparable GAAP measure to Adjusted EPS is basic earnings per share ("Basic EPS"), which is calculated as Net income available to Class A Common Stockholders divided by the weighted average number of Class A Common Stock shares outstanding during the period.
We present Adjusted EPS because we consider it to be an important supplemental measure of our operating performance and believe it is used by securities analysts, investors and other interested parties in evaluating the consolidated performance of other companies in our industry. We also believe that Adjusted EPS, which compares our consolidated Net income with our outstanding and potentially dilutive shares, provides useful information to investors regarding our performance on a fully consolidated and fully diluted basis.
Management uses Adjusted EPS (i) as a measurement of operating performance of our business on a fully consolidated and fully diluted basis; (ii) to evaluate the performance and effectiveness of our operational strategies; and (iii) as a preferred predictor of core operating performance, comparisons to prior periods and competitive positioning.
We caution investors that Adjusted EPS is not a recognized measure under GAAP and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, including Basic EPS, and that Adjusted EPS, as we define it, may be defined or calculated differently by other companies. In addition, Adjusted EPS has limitations as an analytical tool and should not be considered as a measure of profit or loss per share.
The following table reconciles Adjusted EPS to the most directly comparable GAAP measure, which is Basic EPS:
| Three months ended<br>June 30, | Six months ended<br>June 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||||
| in thousands (except per share amounts) | ||||||||
| Numerator: | ||||||||
| Net income available to Class A Common Stockholders 1 | $ | 8,465 | $ | 7,912 | $ | 14,505 | $ | 4,955 |
| Accretion of Series A Convertible Preferred Stock | 1,875 | 1,839 | 3,750 | 3,677 | ||||
| Undistributed earnings allocated to Series A Convertible Preferred Stock | 633 | 627 | 1,089 | 395 | ||||
| Net income attributable to non-controlling interest | 36,229 | 32,279 | 55,151 | 41,829 | ||||
| Consolidated net income | 47,202 | 42,657 | 74,495 | 50,856 | ||||
| Loss related to warrant liabilities, net | — | 1,941 | — | 8,081 | ||||
| Adjusted consolidated net income 2 | $ | 47,202 | $ | 44,598 | $ | 74,495 | $ | 58,937 |
| Denominator: | ||||||||
| Weighted average shares of Class A Common Stock outstanding 1 | 90,698 | 85,687 | 90,374 | 85,171 | ||||
| Total potentially dilutive securities outstanding: | ||||||||
| Non-controlling interest THG units | 255,100 | 255,368 | 255,100 | 255,368 | ||||
| Series A Convertible Preferred Stock, on an as-converted basis | 6,785 | 6,785 | 6,785 | 6,785 | ||||
| Total unissued share-based compensation awards | 8,712 | 8,228 | 8,712 | 8,228 | ||||
| Total warrants outstanding | — | 3,876 | — | 3,876 | ||||
| Potentially dilutive shares outstanding | 270,597 | 274,257 | 270,597 | 274,257 | ||||
| Fully dilutive shares outstanding 2 | 361,295 | 359,944 | 360,971 | 359,428 | ||||
| Basic EPS 1 | $ | 0.09 | $ | 0.09 | $ | 0.16 | $ | 0.06 |
| Adjusted EPS 2 | $ | 0.13 | $ | 0.12 | $ | 0.21 | $ | 0.16 |
1 Numerator and Denominator of the GAAP measure Basic EPS
2 Numerator and Denominator of the non-GAAP measure Adjusted EPS
3 For the three and six months ended June 30, 2024, the dilutive impact of the outstanding warrants included in the calculation of Adjusted EPS represents the number of Class A Common Stock shares issued in relation to the Warrant Exchange.
13
a25-q2xinvestorxdeck08x0
Investor Presentation Q2 2025 SPEAKERS: McKeel Hagerty | Chief Executive Officer and Chairman Patrick McClymont | Chief Financial Officer
HAGERTY Q2 2025 | 2 FORWARD LOOKING STATEMENTS / NON-GAAP FINANCIAL MEASURES This presentation contains statements that constitute “forward-looking statements” within the meaning of the federal securities laws. All statements we provide, other than statements of historical fact, are forward-looking statements, including those regarding our future operating results and financial position, our business strategy and plans, products, services, and technology implementations, market conditions, growth and trends, expansion plans and opportunities, and our objectives for future operations. The words “anticipate,” “believe,” “envision,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” “ongoing,” “contemplate,” and similar expressions, and the negatives of these expressions, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations about future events, which may not materialize. Actual results could differ materially and adversely from those anticipated or implied in our forward- looking statements. These factors include, among other things, our ability to: (i) compete effectively within our industry and attract and retain our insurance policyholders and paid Hagerty Drivers Club (“HDC”) subscribers; (ii) maintain key strategic relationships with our insurance distribution and underwriting carrier partners; (iii) prevent, monitor, and detect fraudulent activity; (iv) manage risks associated with disruptions, interruptions, outages or other issues with our technology platforms or our use of third-party services; (v) accelerate the adoption of our membership and marketplace products and services, as well as any new insurance programs and products we offer; (vi) complete the proposed fronting arrangement with Markel Group Inc. (together with its subsidiaries, “Markel”) and achieve its intended benefits; (vii) manage the cyclical nature of the insurance business, including through any periods of recession, economic downturn or inflation; (viii) address unexpected increases in the frequency or severity of claims; and (ix) comply with the numerous laws and regulations applicable to our business, including state, federal and foreign laws relating to insurance and rate increases, privacy, the internet, and accounting matters. You should not rely on forward-looking statements as predictions of future events. We operate in a very competitive and rapidly changing environment and new risks emerge from time to time. The forward- looking statements in this presentation represent our views as of the date hereof. This presentation should be read in conjunction with the information included in our filings with the SEC and press releases. Understanding the information contained in these filings is important in order to fully understand our reported financial results and our business outlook for future periods. In addition, this presentation contains certain “non-GAAP financial measures”. The non-GAAP measures are presented for supplemental informational purposes only. These financial measures are not recognized measures under GAAP and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Reconciliations to the most directly comparable financial measure calculated and presented in accordance with GAAP are provided in the appendix to this presentation. ON THE COVER: Golden hour in a 1974 Toyota Land Cruiser. PHOTOGRAPHER: KAYLA KEENAN
HAGERTY Q2 2025 | 3 SECOND QUARTER YTD 2025 Highlights TOTAL REVENUE GROWTH OF 18% TO $688 MILLION 1. Commission and Fee growth of 12% 2. Written Premium growth of 11% » Added 143,000 new members in the first half of 2025 3. Membership, Marketplace and other revenue growth of 68% » Marketplace growth of 232%, primarily due to a higher level of inventory sales and the highly successful Broad Arrow auction at Concorso d’Eleganza Villa d’Este SIGNIFICANTLY IMPROVED PROFITABILITY 1. Operating Income of $73 million compared to $50 million (+46%) » Improved operating margin by 210 bps 2. Net Income1 of $74 million compared to $51 million (+46%) 3. Adjusted EBITDA2 of $103 million compared to $80 million (+28%) ENTERED INTO NON-BINDING LOI WITH MARKEL3 WHERE HAGERTY WOULD CONTROL 100% OF THE PREMIUM IN 2026 1. Better profitability, operational control and no disruption to policyholders 1 Net Income in the prior year includes an $8 million loss as a result of a change in the fair value of our warrant liabilities. 2 See Appendix for additional information regarding this non-GAAP financial measure. 3 Subject to negotiation of the definitive agreement with Markel. The unmistakable lines of a 1971 Corvette Stingray. PHOTOGRAPHER: ALEX CRICK
2025 Priorities Investing to double Hagerty’s policies in force to 3.0 million by 2030 FASTER, SMARTER, BETTER INTEGRATED: » Insurance growth with State Farm rollout and launch of Enthusiast Plus » Integrated membership with authentic delivery of products and services » Marketplace global expansion in live and digital auctions to help members buy and sell the cars they love » Operational excellence by delivering great experiences more efficiently as we drive margins higher » Technology integration and speed as we transition to cloud native, scalable architecture » Cultural excellence by engaging best in class teams to service all stakeholders HAGERTY Q2 2025 | 4 → 1974 Ford Bronco: Classic cool. PHOTOGRAPHER: SABRINA HYDE
HAGERTY Q2 2025 | 5 Investing in Growth and Efficiency Began the process of identifying challenges and risks of aging IT infrastructure in 2023 Current technology stack: » Impacts operational efficiency, resulting in a high cost to serve » Prevents scalability that is needed to efficiently double our policy count to 3.0 million by 2030 New insurance IT platform should improve the member experience, enhance security, and lower marginal operating costs » Offer more self-serve functionality » Allow for more modern rating architecture with greater segmentation » Free up tech resources to develop differentiators for Hagerty Near-term redundant systems result in higher than normal operating and software expenses TECHNOLOGY SPEND SHOULD BEGIN TO MODERATE AS A PERCENTAGE OF REVENUE IN 2026 Launched Enthusiast+ in July of 2025 on Duck Creek platform Important cars, little roads and wonderful friends. It’s what makes the California Mille so special! PHOTOGRAPHERS: ZACH HAMMER + GINA PETERSON *Elevated technology investments of ~$20 million in 2025
Markel Fronting Arrangement Evolving the decade-long partnership, with Hagerty controlling 100% of the premium in 2026 CURRENT MODEL PROPOSED FRONTING STRUCTURE (1/1/26) HAGERTY Q2 2025 | 6 → Sunshine, open road, and a legendary 1966 Ford Mustang. PHOTOGRAPHER: SABRINA HYDE DRIVING BETTER PROFITABILITY AND OPERATIONAL CONTROL WITH NO DISRUPTION TO POLICYHOLDERS 1 Hagerty and Markel are currently under a non-binding LOI. The Proposed Fronting Arrangement is subject to negotiation of a final binding agreement between the parties. »Hagerty earns 42% total commissions as an MGA and retains 80% of the risk via Hagerty Re »Markel retains 20%, handles filings and administrative support »Hagerty Re pays a 47% ceding commission to Markel (~42% commissions + ~5% for G&A, taxes and operating expenses) »Hagerty Re would earn 100% of the premium and retain 100% of the risk »Hagerty would secure expanded underwriting and claims authority; Markel would issue policies and provide administrative support »Hagerty Re would pay a ~2% fronting fee and fund G&A, taxes and operating expenses
HAGERTY Q2 2025 | 7 210 bps improvement in operating margin $688M +18% +46% +46% +11% +28% $600M 88.7% $73M $103M $74M $0.16 SECOND QUARTER YTD 2025 Financial Highlights 1 Full year Loss Ratio includes approximately $10 million pre-tax impact from the Southern California wildfires. 2 Hagerty Re’s Combined Ratio is the ratio of (i) Hagerty Re’s losses, loss adjustment expenses, and underwriting expenses to (ii) its earned premium. 3 See Appendix for additional information regarding this non-GAAP measure. 82 42.2% Loss Ratio1 89.1% Combined Ratio2 Adjusted EBITDA3
HAGERTY Q2 2025 | 8 SECOND QUARTER YTD 2025 HIGHLIGHTS Commission and fee revenue (+12%) » Written premium growth 11% » Policies in Force retention of 89% Membership, Marketplace and other revenue (+68%) » Membership revenue growth of 12% » Marketplace revenue growth of 232% Earned premium in Hagerty Re (+12%) » Contractual quota share2 is ~80% in 2025 Revenue Components 1 Includes base commissions, payment plan fees and contingent underwriting commissions. 2 Currently applies to U.S. classic auto programs. Generally described as an arrangement where underwriting risk and profit is shared proportionately. Q2 YTD $313 $369 $27 $178 $129 $48 $158 $143 $585 $688 $309 $58 $218 $244 $98 $347 11% 12% 78% 68% 13% 12% Growth Growth 2024 2025 2024 2025 18% growth 18% growth Strong double-digit gains TOTAL REVENUE
HAGERTY Q2 2025 | 9 $16 $43 $34 $47 $53 $64 $16 $43 $34 $47 $53 $64 Q2 2023 Q2 2023Q2 2024 Q2 2024Q2 2025 Q2 2025 Delivering sustained profit growth Second Quarter Earnings Analysis SECOND QUARTER NET INCOME1 SECOND QUARTER ADJUSTED EBITDA2 1 Q2 2023 Net Income includes a $2 million loss as a result of a change in the fair value of our warrant liabilities and a $3 million loss due to restructuring. Q2 2024 Net Income includes a $2 million loss as a result of a change in the fair value of our warrant liabilities. 2 See Appendix for additional information regarding this non-GAAP financial measure.
HAGERTY Q2 2025 | 10 YTD Q2 2023 YTD Q2 2024 YTD Q2 2025 $80 $41 $103 Q2 2023 Q2 2024 Q2 2025 $74 $51 $1 YTD Q2 2023 YTD Q2 2023YTD Q2 2024 YTD Q2 2024YTD Q2 2025 YTD Q2 2025 Delivering sustained profit growth YTD 2024 Earnings Analysis SECOND QUARTER YTD NET INCOME1 SECOND QUARTER YTD ADJUSTED EBITDA2 1 YTD Q2 2023 Net Income includes a $2 million loss as a result of a change in fair value of our warrant liabilities and an $8 million loss due to restructuring. Q2 2024 Net Income includes an $8 million loss as a result of a change in fair value of our warrant liabilities. 2 See Appendix for additional information regarding this non-GAAP financial measure.
HAGERTY Q2 2025 | 11 IN THOUSANDS 2024 RESULTS PRIOR 2025 OUTLOOK1 ($) REVISED 2025 OUTLOOK ($) REVISED 2025 OUTLOOK (%) LOW END HIGH END LOW END HIGH END LOW END HIGH END Total Written Premium $1,044,492 $1,180,000 $1,191,000 $1,180,000 $1,191,000 13% 14% Total Revenue $1,200,038 $1,344,000 $1,356,000 $1,356,000 $1,368,000 13% 14% Net Income 2,4 $78,303 $102,000 $110,000 $112,000 $120,000 43% 53% Adjusted EBITDA 3,4 $124,473 $150,000 $160,000 $162,000 $172,000 30% 38% 1 Prior 2025 Outlook shared on the Company’s first quarter earnings call on May 7th, 2025. 2 Fully diluted share count of approximately 361 million shares including Class A Common Stock, Class V Common Stock, Series A Convertible Preferred Stock, and share-based compensation awards. 3 See Appendix for additional information regarding this non-GAAP financial measure. 4 Profit ranges incorporate $20 million of elevated technology investments in 2025, as well as approximately $10 million pre-tax impact from the Southern California wildfires. Sustained growth and margin expansion Increased 2025 Outlook → Life’s a beach in the beloved 1972 Volkswagen Beetle. PHOTOGRAPHER: ANDY WAKEMAN
HAGERTY Q2 2025 | 13 WRITTEN PREMIUM GROWTH FUELED BY NEW MEMBERS Strong and Growing New Business Count* 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 20 25E 20 24 20 23 20 22 20 21 20 20 20 19 20 18 20 17 20 16 20 15 20 14 *New business count is expected to accelerate with State Farm Classic Plus conversion
HAGERTY Q2 2025 | 14 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 200 300 400 500 600 PROVEN TRACK RECORD OF PROFITABLE LONG-TERM GROWTH Hagerty U.S. Auto - CAGR 15% Industry Top 100 - CAGR 6% Hagerty Loss Ratio - average = 39% Industry Loss Ratio - average = 68% HAGERTY U.S. AUTO PREMIUM GROWTH VS. INDUSTRY TOP 100 HAGERTY U.S. AUTO LOSS PERFORMANCE VS. INDUSTRY TOP 100 Source: Hagerty Internal Data, S&P Global Market Intelligence (2024). To ta l P er ce nt ag e G ro w th To ta l L os s Pe rf or m an ce 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 30 40 50 60 70 80 90
HAGERTY Q2 2025 | 15 HISTORICAL WRITTEN PREMIUM GROWTH 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200 400 600 800 1,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 —% 3% 5% 8% 10% 13% 15% 18% 20% Durable mid-teens growth TOTAL U.S. AUTO WRITTEN PREMIUM U.S. AUTO WRITTEN PREMIUM ANNUAL GROWTH
HAGERTY Q2 2025 | 16 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 ~14% ~3% Pre 1981 Vehicle Count Type Total Market (cars, mm) Collectible Vehicles by Cohort Hagerty Penetration Pre 1981 Vehicles 11.1 14.0% Post 1980 Vehicles 36.7 1.9% Total 47.8 4.7% Post 1980 Vehicle Count MARKET LEADING POSITION WITH SIGNIFICANT PENETRATION OPPORTUNITY TYPE TOTAL ADDRESSABLE MARKET (M) HAGERTY TARGET MARKET1 (M) HAGERTY TCM PENETRATION Pre 1981 Vehicles 11.1 11.1 14.4% Post 1980 Vehicles 35.4 24.0 3.1% Total 46.5 35.0 6.7% HAGERTY PENETRATION AND U.S. AUTO INSURED VEHICLE COUNT COLLECTIBLE VEHICLES BY COHORT 1 Hagerty Target Market is the subset of TAM identified as more likely to be currently used as collector vehicles based on age, inherent vehicle characteristics and expert curation.
HAGERTY Q2 2025 | 17 REVENUE COMPONENTS BY QUARTER $ IN MILLIONS 127 140 147 152 158 166 168 169 178 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 110 103 78 89 129 116 89 100 143 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 24 33 20 31 27 42 34 50 48 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 COMMISSION + FEE REVENUE1 EARNED PREMIUM IN HAGERTY RE MEMBERSHIP, MARKETPLACE + OTHER REVENUE 1 Includes base commissions, payment plan fees and contingent underwriting commissions.
HAGERTY Q2 2025 | 18 IN THOUSANDS Q2 2024 Q3 2024 - Q1 2025 Q2 2025 TTM Net income $42,657 $54,740 $47,202 $101,942 Interest and other (income) expense, net1, 2 (12,342) (23,276) (5,664) (28,940) Income tax expense 5,811 9,928 6,161 16,089 Depreciation and amortization 10,014 27,819 8,833 36,652 EBITDA 46,140 69,211 56,532 125,743 Loss related to warrant liabilities, net 1,941 463 — 463 Share-based compensation expense 4,383 12,823 5,146 17,969 Gain related to divestiture (87) — — — Other unusual items3 736 1,144 2,066 3,210 Adjusted EBITDA $53,113 $83,641 $63,744 $147,385 RECONCILIATION OF NON-GAAP METRICS Net Income to Adjusted EBITDA 1 Excludes interest expense related to the BAC Credit Facility, which is recorded within “Sales expense” in the Condensed Consolidated Statements of Operations. 2 Includes interest income and net investment income related to our investment portfolio. 3 Other unusual items includes certain legal settlement expenses, certain professional fees, and certain material severance expenses for the three and six months ended June 30, 2025 and professional fees associated with the warrant exchange transaction that closed in July 2024 (the “Warrant Exchange”) for the three and six months ended June 30, 2024.. Adjusted EBITDA We define Adjusted EBITDA as consolidated Net income, excluding net interest and other income (expense), income tax expense, and depreciation and amortization, further adjusted to exclude (i) net gains and losses related to our warrant liabilities prior to the Warrant Exchange; (ii) share-based compensation expense; and when applicable, (iii) restructuring, impairment and related charges; (iv) gains, losses and impairments related to divestitures; and (v) certain other unusual items. We present Adjusted EBITDA because we consider it to be an important supplemental measure of our performance and believe it is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. We use Adjusted EBITDA as a measure of the operating performance of our business on a consistent basis, as it removes the impact of items not directly resulting from our core operations. By providing this non-GAAP financial measure, together with a reconciliation to Net income, which is the most comparable GAAP measure, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. However, Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation, or as an alternative to, or a substitute for Net income or other financial statement data presented in our Condensed Consolidated Financial Statements as indicators of financial performance. Our definition of Adjusted EBITDA may be different than similarly titled measures used by other companies in our industry, which could reduce the usefulness of this non-GAAP financial measure when comparing our performance to that of other companies.
HAGERTY Q2 2025 | 19 IN THOUSANDS (EXCEPT PER SHARE AMOUNTS) Q2 2025 Q2 2024 YTD 2025 YTD 2024 Numerator: Net income available to Class A Common Stockholders 1 $8,465 $7,912 $14,505 $4,955 Accretion of Series A Convertible Preferred Stock 1,875 1,839 3,750 3,677 Undistributed earnings allocated to Series A Convertible Preferred Stock 633 627 1,089 395 Net income attributable to non-controlling interest 36,229 32,279 55,151 41,829 Consolidated net income 47,202 42,657 74,495 50,856 Loss related to warrant liabilities, net — 1,941 — 8,081 Adjusted consolidated net income 2 $47,202 $44,598 $74,495 $58,937 Denominator: Weighted average shares of Class A Common Stock outstanding 1 90,698 85,687 90,374 85,171 Total potentially dilutive securities outstanding: Non-controlling interest THG units 255,100 255,368 255,100 255,368 Series A Convertible Preferred Stock, on an as-converted basis 6,785 6,785 6,785 6,785 Total unissued share-based compensation awards 8,712 8,228 8,712 8,228 Total warrants outstanding — 3,876 — 3,876 Potentially dilutive shares outstanding 270,597 274,257 270,597 274,257 Fully dilutive shares outstanding 2 361,295 359,944 360,971 359,428 Basic Earnings per Share 1 $0.09 $0.09 $0.16 $0.06 Adjusted Earnings per Share 2 $0.13 $0.12 $0.21 $0.16 Basic Earnings Per Share to Adjusted Earnings Per Share RECONCILIATION OF NON-GAAP METRICS 1 Numerator and Denominator of the GAAP measure Basic EPS 2 Numerator and Denominator of the non-GAAP measure Adjusted EPS 3 For the three and six months ended June 30, 2024, the dilutive impact of the outstanding warrants included in the calculation of Adjusted EPS represents the number of Class A Common Stock shares issued in relation to the Warrant Exchange. Adjusted EPS We define Adjusted Earnings Per Share (“Adjusted EPS”) as consolidated Net income, excluding net gains and losses related to our warrant liabilities prior to the Warrant Exchange, divided by our outstanding and total potentially dilutive securities, which includes (i) the weighted average issued and outstanding shares of Class A Common Stock; (ii) all issued and outstanding non-controlling interest units of THG; (iii) all issued and outstanding shares of our Series A Convertible Preferred Stock on an as-converted basis; (iv) all unissued share-based compensation awards; and (v) all unexercised warrants outstanding prior to the Warrant Exchange. The most directly comparable GAAP measure to Adjusted EPS is basic earnings per share (“Basic EPS”), which is calculated as Net income available to Class A Common Stockholders divided by the weighted average number of Class A Common Stock shares outstanding during the period. We present Adjusted EPS because we consider it to be an important supplemental measure of our operating performance and believe it is used by securities analysts, investors and other interested parties in evaluating the consolidated performance of other companies in our industry. We also believe that Adjusted EPS, which compares our consolidated Net income with our outstanding and potentially dilutive shares, provides useful information to investors regarding our performance on a fully consolidated basis.
HAGERTY Q2 2025 | 20 IN THOUSANDS 2025 Low 2025 High Net income $112,000 $120,000 Interest and other (income) expense, net1, 2 (32,000) (32,000) Income tax expense 23,000 25,000 Depreciation and amortization 39,000 39,000 Share-based compensation expense 20,000 20,000 Adjusted EBITDA $162,000 $172,000 Net Income to Adjusted EBITDA RECONCILIATION OF NON-GAAP METRICS | REAFFIRMED 2025 OUTLOOK 1 Excludes interest expense related to the BAC Credit Facility, which is recorded within “Sales expense” in the Condensed Consolidated Statements of Operations. 2 Includes interest income and net investment income related to our investment portfolio. Adjusted EBITDA We define Adjusted EBITDA as consolidated Net income, excluding net interest and other income (expense), income tax expense, and depreciation and amortization, further adjusted to exclude (i) net gains and losses related to our warrant liabilities prior to the Warrant Exchange; (ii) share-based compensation expense; and when applicable, (iii) restructuring, impairment and related charges; (iv) gains, losses and impairments related to divestitures; and (v) certain other unusual items. We present Adjusted EBITDA because we consider it to be an important supplemental measure of our performance and believe it is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. We use Adjusted EBITDA as a measure of the operating performance of our business on a consistent basis, as it removes the impact of items not directly resulting from our core operations. By providing this non-GAAP financial measure, together with a reconciliation to Net income, which is the most comparable GAAP measure, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. However, Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation, or as an alternative to, or a substitute for Net income or other financial statement data presented in our Condensed Consolidated Financial Statements as indicators of financial performance. Our definition of Adjusted EBITDA may be different than similarly titled measures used by other companies in our industry, which could reduce the usefulness of this non-GAAP financial measure when comparing our performance to that of other companies.
