Part I – Financial Information [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Hagerty's unaudited condensed consolidated financial statements for the quarterly period ended June 30, 2025 [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported significant year-over-year revenue growth and improved net income for the periods ending June 30, 2025 Key Operational Results (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $368,699 | $313,225 | $688,292 | $584,933 | | **Operating Income** | $47,699 | $38,067 | $73,427 | $50,291 | | **Net Income** | $47,202 | $42,657 | $74,495 | $50,856 | | **Net Income Attributable to Class A Common Stockholders** | $9,098 | $8,539 | $15,594 | $5,350 | | **Basic EPS** | $0.09 | $0.09 | $0.16 | $0.06 | | **Diluted EPS** | $0.09 | $0.09 | $0.16 | $0.06 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $2.04 billion, with corresponding increases in liabilities and equity as of June 30, 2025 Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | $2,040,575 | $1,709,338 | | Cash and cash equivalents | $140,300 | $104,784 | | Investments | $601,574 | $589,527 | | **Total Liabilities** | $1,379,724 | $1,101,169 | | Long-term debt, net | $153,383 | $104,968 | | **Total Equity** | $578,038 | $523,506 | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased while financing activities provided cash, reversing a prior-year trend for H1 2025 Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $97,714 | $122,255 | | **Net Cash Used in Investing Activities** | ($31,839) | ($479,937) | | **Net Cash Provided by (Used in) Financing Activities** | $29,480 | ($50,783) | | **Change in cash and cash equivalents** | $97,741 | ($408,754) | [Notes to Financial Statements](index=13&type=section&id=Notes%20Accompanying%20the%20Condensed%20Consolidated%20Financial%20Statements) Details the company's business model, accounting policies, revenue, investments, debt, and related-party transactions - Hagerty operates as a Managing General Agent (MGA) for collector car insurance, reinsuring approximately **80% of the risk** through its subsidiary, Hagerty Re[34](index=34&type=chunk) - The company has **one reportable segment**, with the CEO acting as the Chief Operating Decision Maker (CODM), who evaluates performance based on consolidated measures like net income[45](index=45&type=chunk) - In July 2024, the company completed a warrant exchange, issuing **3.9 million shares** of Class A Common Stock for 19.5 million warrants[76](index=76&type=chunk) - Significant related-party transactions exist with **Markel** (underwriting and reinsurance) and **State Farm** (alliance agreement, reinsurance, and a term loan)[191](index=191&type=chunk)[192](index=192&type=chunk)[196](index=196&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=52&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Details strong revenue growth, a proposed new fronting arrangement with Markel, and analysis of key performance indicators [Overview and Recent Developments](index=52&type=section&id=Overview%20and%20Recent%20Developments) Hagerty, a leader in collector car insurance, announced a non-binding letter of intent for a new fronting arrangement with Markel - On July 24, 2025, Hagerty announced a non-binding letter of intent for a **Proposed Fronting Arrangement with Markel**, expected to be effective January 1, 2026[210](index=210&type=chunk) - Under the proposed arrangement, Hagerty Re would control **100% of the premium** and assume **100% of the risk** for policies written through Essentia, paying Markel an initial 2% fronting fee[211](index=211&type=chunk) [Key Performance Indicators](index=54&type=section&id=Key%20Performance%20Indicators) Total Written Premium grew 11.3% and Policies in Force increased by 3.5% as of June 30, 2025 Key Performance Indicators - Six Months Ended June 30 | Metric | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Written Premium | $600,312 thousand | $539,459 thousand | 11.3% | | Hagerty Re Loss Ratio | 42.2% | 41.1% | 1.1 ppt | | New Business Count - Insurance | 143,181 | 148,335 | (3.5)% | | Adjusted EBITDA | $103,352 thousand | $80,440 thousand | 28.5% | Key Performance Indicators - As of Period End | Metric | June 30, 2025 | Dec 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Policies in Force | 1,559,798 | 1,506,451 | 3.5% | | Policies in Force Retention | 88.7% | 89.0% | (0.3) ppt | | HDC Paid Member Count | 907,963 | 875,822 | 3.7% | [Results of Operations](index=59&type=section&id=Results%20of%20Operations) Total revenue increased 17.7% and operating income grew 46.0% for H1 2025, driven by higher premiums and marketplace sales - For Q2 2025, commission and fee revenue grew **11.2% YoY**, driven by policy renewals with a **14.3% increase** in underlying premiums due to rate increases[241](index=241&type=chunk)[242](index=242&type=chunk) - Q2 2025 Marketplace revenue surged by **$20.5 million YoY**, driven by higher inventory sales and the inaugural auction at Concorso d'Eleganza Villa d'Este[248](index=248&type=chunk) - For H1 2025, the Hagerty Re loss ratio was **42.2%**, which included **$10.3 million** in pre-tax catastrophe losses from the Southern California wildfires in January 2025[276](index=276&type=chunk) - H1 2025 Sales expense increased **39.2% YoY**, mainly due to a **$27.5 million** increase in cost of sales from higher marketplace inventory sales[277](index=277&type=chunk) [Liquidity and Capital Resources](index=67&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity through cash, operations, and credit facilities, despite a decrease in operating cash flow - Primary liquidity sources are cash balances, operating cash flows, and borrowings from the **2025 JPM Credit Facility** and the **BAC Credit Facility**[285](index=285&type=chunk) - In March 2025, the company entered into a new **$375.0 million** senior unsecured revolving credit facility with JPM, maturing in March 2030[289](index=289&type=chunk)[290](index=290&type=chunk) - Net cash from operating activities decreased by **$24.5 million** in H1 2025 compared to H1 2024, primarily due to the timing of CUC settlements and catastrophe claim payments[304](index=304&type=chunk)[307](index=307&type=chunk) - The estimated value of the Tax Receivable Agreement (TRA) Liability was **$5.1 million** as of June 30, 2025[312](index=312&type=chunk) [Non-GAAP Financial Measures](index=74&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA increased 28.5% to $103.4 million and Adjusted EPS rose to $0.21 for H1 2025 Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Line Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net income** | **$74,495** | **$50,856** | | Interest and other (income) expense, net | ($12,718) | ($19,586) | | Income tax expense | $11,650 | $10,940 | | Depreciation and amortization | $18,321 | $20,574 | | **EBITDA** | **$91,748** | **$62,784** | | Loss related to warrant liabilities, net | — | $8,081 | | Share-based compensation expense | $9,538 | $8,926 | | Other unusual items | $2,066 | $736 | | **Adjusted EBITDA** | **$103,352** | **$80,440** | Adjusted EPS Calculation | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Adjusted consolidated net income (Numerator) | $74,495 thousand | $58,937 thousand | | Fully dilutive shares outstanding (Denominator) | 360,971 thousand | 359,428 thousand | | **Adjusted EPS** | **$0.21** | **$0.16** | [Quantitative and Qualitative Disclosures About Market Risk](index=77&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes to its market risk during the first six months of 2025 - There have been **no material changes** to the company's market risk during the first six months of 2025[328](index=328&type=chunk) [Controls and Procedures](index=77&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of June 30, 2025[330](index=330&type=chunk) - **No changes occurred** during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[331](index=331&type=chunk) Part II – Other Information [Legal Proceedings](index=78&type=section&id=Item%201.%20Legal%20Proceedings) The company faces no legal actions expected to have a material adverse effect on its financial position - The company is subject to various claims and legal actions from the ordinary course of business but does **not expect them to have a material adverse effect**[332](index=332&type=chunk) [Risk Factors](index=78&type=section&id=Item%201A.%20Risk%20Factors) New risks include the potential failure of the proposed Markel fronting arrangement and the impact of rising interest rates - A new risk factor highlights the uncertainty surrounding the finalization and potential benefits of the **Proposed Fronting Arrangement with Markel**, noting it is subject to negotiation, definitive documentation, and regulatory approvals[336](index=336&type=chunk)[337](index=337&type=chunk) - The company identifies **rising interest rates and tariffs** as a risk that could increase costs and reduce consumer demand for discretionary items like collector cars, potentially harming business results[338](index=338&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=78&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None[339](index=339&type=chunk) [Other Information](index=80&type=section&id=Item%205.%20Other%20Information) No director or executive officer adopted or terminated a Rule 10b5-1 trading arrangement during the second quarter - During Q2 2025, **no director or executive officer** adopted or terminated a Rule 10b5-1 trading arrangement[342](index=342&type=chunk)

Financial Performance - Total revenue grew by 18% to $688 million[5] - Operating income increased by 46% to $73 million[9] - Net income increased by 46% to $74 million[9] - Adjusted EBITDA increased by 28% to $103 million[9] Revenue Components - Commission and fee revenue increased by 12%[9, 25] - Membership, Marketplace, and other revenue increased significantly by 68%[9, 25] Marketplace growth was 232%[9] - Earned premium in Hagerty Re grew by 12%[25] Future Outlook - The company aims to double policies in force to 30 million by 2030[10, 15] - Revised 2025 outlook projects total revenue between $1356 million and $1368 million, a 13%-14% increase[41] - Revised 2025 outlook projects net income between $112 million and $120 million, a 43%-53% increase[41] - Revised 2025 outlook projects Adjusted EBITDA between $162 million and $172 million, a 30%-38% increase[41] Strategic Initiatives - Hagerty entered into a non-binding LOI with Markel to control 100% of the premium in 2026[7, 16]

Group 1: Earnings Performance - Hagerty, Inc. reported quarterly earnings of $0.13 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, and showing an increase from $0.12 per share a year ago, resulting in an earnings surprise of +18.18% [1] - The company posted revenues of $368.7 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.00%, compared to year-ago revenues of $313.23 million [2] - Over the last four quarters, Hagerty has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - Hagerty shares have increased by approximately 3.8% since the beginning of the year, while the S&P 500 has gained 6.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $364.63 million, and for the current fiscal year, it is $0.32 on revenues of $1.36 billion [7] Group 3: Industry Context - The Insurance - Property and Casualty industry, to which Hagerty belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The unfavorable estimate revisions trend prior to the earnings release has resulted in a Zacks Rank 4 (Sell) for Hagerty, indicating expected underperformance in the near future [6]

[Executive Summary and Business Outlook](index=1&type=section&id=Executive%20Summary%20and%20Business%20Outlook) This section provides an overview of the company's strong financial performance in the first half of 2025, including CEO commentary, detailed Q2 and YTD financial highlights, and an increased full-year 2025 outlook [CEO Commentary](index=1&type=section&id=CEO%20Commentary) McKeel Hagerty, CEO, highlighted solid first-half 2025 results with significant revenue, net income, and Adjusted EBITDA growth, alongside margin expansion and strategic investments. He also noted an increased 2025 outlook and the planned evolution of the Markel partnership for 2026 - Hagerty delivered solid results in the first half of 2025 with **revenue growth of 18%**, **net income gains of 46%**, and **Adjusted EBITDA gains of 28%**[3](index=3&type=chunk) - Strategic investments include rolling out State Farm Classic+, launching the Enthusiast+ product, building the European Marketplace team, and investing in technology for future margin expansion[3](index=3&type=chunk) - The company increased its 2025 revenue growth outlook to **13-14%** and net income growth to **43-53%**[4](index=4&type=chunk) - A non-binding LOI was announced for a new fronting arrangement with Markel, aiming for Hagerty to control **100% of the premium** as of January 1, 2026[4](index=4&type=chunk)[5](index=5&type=chunk) [Second Quarter and YTD 2025 Financial Highlights](index=1&type=section&id=SECOND%20QUARTER%20AND%20YTD%202025%20FINANCIAL%20HIGHLIGHTS) Hagerty reported strong financial and operational performance for Q2 and YTD 2025, with significant year-over-year growth across total revenue, written premium, and particularly in marketplace revenue. Profitability metrics like operating income, net income, and Adjusted EBITDA also saw substantial increases, while key operational metrics like policies in force retention remained stable and total insured vehicles grew Q2 2025 Financial Highlights (in millions) | Metric | Value (Q2 2025) | YoY Change | | :-------------------------------- | :-------------- | :--------- | | Total Revenue | $368.7 million | +18% | | Written Premium | $356.0 million | +11% | | Marketplace Revenue | $26.8 million | +327% | | Operating Income | $47.7 million | +25% | | Net Income | $47.2 million | +11% | | Adjusted EBITDA | $63.7 million | +20% | | Basic & Diluted EPS | $0.09 | 0% | YTD 2025 Financial Highlights (in millions) | Metric | Value (YTD 2025) | YoY Change | | :-------------------------------- | :-------------- | :--------- | | Total Revenue | $688.3 million | +18% | | Written Premium | $600.3 million | +11% | | Marketplace Revenue | $55.8 million | +232% | | Operating Income | $73.4 million | +46% | | Net Income | $74.5 million | +46% | | Adjusted EBITDA | $103.4 million | +28% | | Basic & Diluted EPS | $0.16 | 166.7% | - Policies in Force Retention was **88.7%** as of June 30, 2025, consistent with the prior year period, while total insured vehicles increased **6%** year-over-year to **2.7 million**[6](index=6&type=chunk) - Hagerty Drivers Club (HDC) paid members increased **6%** year-over-year to approximately **908,000**[6](index=6&type=chunk) - The Loss Ratio for Q2 2025 was **42.3%** (including **1.6%** from catastrophe losses), up from **41.1%** in the prior year period. YTD 2025 Loss Ratio was **42.2%** (including **4.1%** from catastrophe losses), also up from **41.1%**[6](index=6&type=chunk) - The company ended the quarter with **$140.3 million** of unrestricted cash and **$176.1 million** of total debt[9](index=9&type=chunk) [2025 Outlook - Sustained Revenue Growth and Margin Expansion](index=4&type=section&id=2025%20OUTLOOK%20-%20SUSTAINED%20REVENUE%20GROWTH%20AND%20MARGIN%20EXPANSION) Hagerty has increased its full-year 2025 outlook for revenue and profit growth, anticipating continued strong performance. The revised outlook incorporates $20 million in elevated technology investments and a $10 million pre-tax impact from Southern California wildfires Revised Full Year 2025 Outlook (in thousands) | Metric | Prior 2025 Outlook (Low-High) | Revised 2025 Outlook (Low-High) | | :---------------- | :------------------------------ | :------------------------------ | | Total Written Premium | $1,180,000 - $1,191,000 | $1,180,000 - $1,191,000 | | Total Revenue | $1,344,000 - $1,356,000 | $1,356,000 - $1,368,000 | | Net Income | $102,000 - $110,000 | $112,000 - $120,000 | | Adjusted EBITDA | $150,000 - $160,000 | $162,000 - $172,000 | - For full year 2025, Hagerty anticipates Written Premium growth of **13-14%**, Total Revenue growth of **13-14%**, Net Income growth of **43-53%**, and Adjusted EBITDA growth of **30-38%**[13](index=13&type=chunk) - Profit ranges for 2025 incorporate **$20 million** of elevated technology investments, primarily in the new Duck Creek platform, and approximately **$10 million** pre-tax impact from the Southern California wildfires[10](index=10&type=chunk)[12](index=12&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated statements of operations, balance sheets, and cash flows, detailing the company's financial position and performance for Q2 and YTD 2025 [Condensed Consolidated Statements of Operations (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(Unaudited)) The condensed consolidated statements of operations show strong revenue growth for both the three and six months ended June 30, 2025, driven by increases across all revenue streams, particularly membership, marketplace, and other revenue. Operating income and net income also saw significant year-over-year improvements Three Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | $ Change | % Change | | :-------------------------------- | :------- | :------- | :------- | :------- | | Commission and fee revenue | $143,287 | $128,816 | $14,471 | 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 %** | | Total operating expenses | $321,000 | $275,158 | $45,842 | 16.7 % | | **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 | $0 | 0 % | Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | $ Change | % Change | | :-------------------------------- | :------- | :------- | :------- | :------- | | Commission and fee revenue | $243,574 | $217,656 | $25,918 | 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 %** | | Total operating expenses | $614,865 | $534,642 | $80,223 | 15.0 % | | **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 % | [Condensed Consolidated Balance Sheets (Unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) The balance sheet as of June 30, 2025, shows an increase in total assets, primarily driven by higher cash and cash equivalents, restricted cash, investments, and various receivables. Total liabilities also increased, notably in accounts payable, advance premiums, and unearned premiums, while total equity grew Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Cash and cash equivalents | $140,300 | $104,784 | | Restricted cash and cash equivalents | $190,286 | $128,061 | | Investments | $119,326 | $73,957 | | Premiums receivable | $249,830 | $153,748 | | **Total current assets** | **$1,212,984** | **$858,405** | | **TOTAL ASSETS** | **$2,040,575** | **$1,709,338** | | Accounts payable, accrued expenses and other current liabilities | $138,349 | $73,383 | | Advance premiums and due to insurers | $188,403 | $108,352 | | Unearned premiums | $410,496 | $357,539 | | **Total current liabilities** | **$1,145,980** | **$915,446** | | Long-term debt, net | $153,383 | $104,968 | | **TOTAL LIABILITIES** | **$1,379,724** | **$1,101,169** | | Total equity | $578,038 | $523,506 | [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) For the six months ended June 30, 2025, net cash provided by operating activities decreased compared to the prior year, while net cash used in investing activities significantly reduced. Net cash provided by financing activities turned positive, primarily due to higher proceeds from long-term debt Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | | :-------------------------------- | :------- | :------- | | Net Cash Provided by Operating Activities | $97,714 | $122,255 | | Net Cash Used in Investing Activities | $(31,839) | $(479,937) | | Net Cash Provided by (Used in) Financing Activities | $29,480 | $(50,783) | | Change in cash and cash equivalents and restricted cash and cash equivalents | $97,741 | $(408,754) | | Ending cash and cash equivalents and restricted cash and cash equivalents | $330,586 | $315,522 | - Net cash provided by operating activities decreased primarily due to changes in accounts, premiums, and commissions receivable, partially offset by increases in advance premiums and unearned premiums[28](index=28&type=chunk) - Net cash used in investing activities significantly reduced from **$(479,937) thousand** in 2024 to **$(31,839) thousand** in 2025, mainly due to lower purchases of fixed maturity securities and higher proceeds from sales and maturities[28](index=28&type=chunk) - Net cash provided by financing activities turned positive, driven by a substantial increase in proceeds from long-term debt (**$192,339 thousand** in 2025 vs. **$25,482 thousand** in 2024)[28](index=28&type=chunk) [Key Performance Indicators and Non-GAAP Financial Measures](index=10&type=section&id=Key%20Performance%20Indicators%20and%20Certain%20Non-GAAP%20Financial%20Measures) This section outlines key operational and financial performance indicators, including detailed reconciliations for non-GAAP measures like Adjusted EBITDA and Adjusted EPS, providing insights into core business performance [Key Performance Indicators](index=10&type=section&id=Key%20Performance%20Indicators) Hagerty's Key Performance Indicators for Q2 and YTD 2025 demonstrate strong growth in Total Written Premium and Total Revenue, alongside improved profitability metrics like Operating Income, Net Income, and Adjusted EBITDA. Operational metrics show stable retention and growth in insured vehicles and paid members, despite a slight decrease in new business count Q2 2025 Key Performance Indicators (in thousands, except percentages) | Metric | 2025 | 2024 | Change | % Change | | :-------------------------- | :------- | :------- | :------- | :------- | | 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)% | | 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 % | | Adjusted EBITDA | $63,744 | $53,113 | $10,631 | 20.0 % | YTD 2025 Key Performance Indicators (in thousands, except percentages) | Metric | 2025 | 2024 | Change | % Change | | :-------------------------- | :------- | :------- | :------- | :------- | | 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)% | | 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 % | | Adjusted EBITDA | $103,352 | $80,440 | $22,912 | 28.5 % | Operational Metrics (as of June 30, 2025, except percentages) | Metric | 2025 | 2024 | Change | % Change | | :-------------------------- | :---------- | :---------- | :------- | :------- | | 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 | — | 0 % | [Adjusted EBITDA](index=11&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA is a non-GAAP financial measure used by Hagerty to assess core operating performance by excluding non-operating and non-cash items. For Q2 and YTD 2025, Adjusted EBITDA increased by 20% and 28.5% respectively, and the company projects a 30-38% growth for the full year 2025 - Adjusted EBITDA is defined as consolidated Net income, excluding net interest and other income (expense), income tax expense, and depreciation and amortization, further adjusted for warrant liabilities, share-based compensation, restructuring, divestiture-related items, and certain other unusual items[32](index=32&type=chunk) Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------- | :------- | :------- | :------- | :------- | | Net income | $47,202 | $42,657 | $74,495 | $50,856 | | EBITDA | $56,532 | $46,140 | $91,748 | $62,784 | | Adjusted EBITDA | $63,744 | $53,113 | $103,352 | $80,440 | 2025 Outlook Adjusted EBITDA Reconciliation (in thousands) | Metric | 2025 Low | 2025 High | | :-------------------------- | :------- | :-------- | | Net income | $112,000 | $120,000 | | Adjusted EBITDA | $162,000 | $172,000 | [Adjusted EPS](index=12&type=section&id=Adjusted%20EPS) Adjusted EPS is a non-GAAP measure that provides insight into Hagerty's operating performance on a fully consolidated and diluted basis. For Q2 2025, Adjusted EPS was $0.13, and for YTD 2025, it was $0.21, showing an increase from the prior year periods - Adjusted EPS is defined as consolidated Net income, excluding net gains and losses related to warrant liabilities prior to the Warrant Exchange, divided by outstanding and total potentially dilutive securities[37](index=37&type=chunk) Adjusted EPS Reconciliation (in thousands, except per share amounts) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------- | :------- | :------- | :------- | :------- | | Consolidated net income | $47,202 | $42,657 | $74,495 | $50,856 | | Adjusted consolidated net income | $47,202 | $44,598 | $74,495 | $58,937 | | Basic EPS | $0.09 | $0.09 | $0.16 | $0.06 | | Adjusted EPS | $0.13 | $0.12 | $0.21 | $0.16 | [Corporate Information and Disclosures](index=5&type=section&id=Corporate%20Information%20and%20Disclosures) This section provides essential corporate information, including conference call details, forward-looking statements, and an overview of Hagerty, Inc.'s mission and business activities [Conference Call Details](index=5&type=section&id=Conference%20Call%20Details) Hagerty scheduled a conference call for August 4, 2025, at 10:00 am ET to discuss the second quarter 2025 financial results, with webcast and dial-in options available - A conference call to discuss financial results was scheduled for **August 4, 2025, at 10:00 am Eastern Time**[14](index=14&type=chunk) - A webcast of the conference call and Investor Presentation is available on Hagerty's investor relations website at **investor.hagerty.com**[14](index=14&type=chunk)[15](index=15&type=chunk) - Dial-in numbers for the conference call are **(877) 423-9813** (toll-free) or **(201) 689-8573** (international)[14](index=14&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section contains a standard disclaimer that the press release includes forward-looking statements about Hagerty's future performance, strategy, and market conditions. It warns that actual results could differ materially due to various risks, including competition, strategic partnerships, technology issues, market adoption, the Markel arrangement, and regulatory compliance - The press release contains forward-looking statements regarding Hagerty's future operating results, financial position, business strategy, plans, products, services, technology implementations, market conditions, growth, trends, expansion plans, opportunities, and objectives[16](index=16&type=chunk) - Actual results could differ materially due to factors such as competition, ability to attract and retain policyholders, maintaining strategic relationships, preventing fraud, managing technology risks, accelerating product adoption, successfully implementing the Markel fronting arrangement, managing insurance business cyclicality, addressing claims, and complying with regulations[17](index=17&type=chunk) [About Hagerty, Inc.](index=5&type=section&id=About%20Hagerty,%20Inc.) Hagerty, Inc. is an automotive enthusiast brand dedicated to preserving car culture, serving as a leading provider of specialty vehicle insurance, valuation data, auction services, events, and entertainment. It operates globally and fosters a community through its Hagerty Drivers Club - Hagerty is an automotive enthusiast brand committed to saving driving and fueling car culture for future generations[19](index=19&type=chunk) - 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[19](index=19&type=chunk) - Hagerty operates in Canada and the U.K. and is home to Hagerty Drivers Club, a community of over **900,000 members**[19](index=19&type=chunk)

Core Insights - Hagerty, Inc. reported strong financial results for the first half of 2025, with revenue growth of 18%, net income growth of 46%, and Adjusted EBITDA growth of 28% [2][5][19] - The company has increased its 2025 revenue growth outlook to 13-14% and expects net income growth of 43-53% [3][5] Financial Performance - Total revenue for Q2 2025 increased 18% year-over-year to $368.7 million, with year-to-date revenue also up 18% to $688.3 million [5][6] - Written premium for Q2 2025 rose 11% year-over-year to $356.0 million, with year-to-date written premium increasing 11% to $600.3 million [5][6] - Marketplace revenue surged 327% year-over-year to $26.8 million in Q2 2025, and year-to-date marketplace revenue increased 232% to $55.8 million [5][6] - Operating income for Q2 2025 increased 25% year-over-year to $47.7 million, with year-to-date operating income up 46% to $73.4 million [5][6] - Net income for Q2 2025 rose 11% year-over-year to $47.2 million, while year-to-date net income increased 46% to $74.5 million [5][6] Key Metrics - The company maintained a Policies in Force Retention rate of 88.7% as of June 30, 2025, with total insured vehicles increasing 6% year-over-year to 2.7 million [6][24] - The Loss Ratio for Q2 2025 was 42.3%, compared to 41.1% in the prior year period [6][24] - Membership, marketplace, and other revenue increased 78% year-over-year to $47.6 million in Q2 2025 [6][24] Outlook - Hagerty anticipates continued revenue growth and margin expansion in 2025, with planned investments of $20 million primarily in technology [8][16] - The company is positioned for sustained profit growth through its focus on insurance, membership, and marketplace businesses [8][16]

Core Insights - Hagerty, Inc. has enhanced its insurance leadership team by appointing Adam Van Loon as Senior Vice President of Insurance Distribution and Jesse McKendry as Senior Vice President of Insurance Product [1][2] Company Strategy - The strategic hires are part of Hagerty's ongoing investment to expand its insurance capabilities, aiming to better serve its members and partners [2] - Van Loon will focus on accelerating growth through broker networks, agent networks, and partnerships while fostering a customer-first culture [3] - McKendry will drive improvements in insurance products, including development, pricing, underwriting, and reinsurance, leveraging data and customer insights [4] Leadership Background - Adam Van Loon has a background as Chief Partnerships Officer at Plymouth Rock Assurance and has experience with Chubb, Signal Mutual, and Bain & Company [3] - Jesse McKendry brings over two decades of experience from companies like GEICO, Lemonade, Metromile, and Progressive [4] Company Overview - Hagerty is a leading provider of specialty vehicle insurance and serves a community of nearly 890,000 automotive enthusiasts in the U.S., Canada, and the U.K. [5]

Core Viewpoint - Hagerty, Inc. (HGTY) is anticipated to report a year-over-year increase in earnings and revenues for the quarter ended June 2025, with the actual results having a significant impact on the stock price [1][2]. Earnings Expectations - The consensus estimate for Hagerty's quarterly earnings is $0.13 per share, reflecting an 8.3% increase year-over-year, while revenues are expected to reach $354.53 million, up 13.2% from the previous year [3]. - The consensus EPS estimate has been revised 6.45% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +42.10% for Hagerty, suggesting analysts are optimistic about the company's earnings prospects [12]. - The stock holds a Zacks Rank of 1, indicating a strong likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Hagerty exceeded the expected earnings of $0.02 per share by delivering $0.08, resulting in a surprise of +300.00% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Conclusion - Hagerty is positioned as a compelling candidate for an earnings beat, but investors should consider additional factors beyond earnings expectations when making investment decisions [17].

Core Insights - The Amelia has announced Dario Franchitti MBE as the honoree for the 2026 event, recognizing his significant contributions to motorsport and car culture [1][2][4] Event Details - The Amelia will take place from March 5-8, 2026, featuring a variety of activities including an evening event called Reverie, a two-day auction by Hagerty's Broad Arrow Auctions, and a concours showcasing 250 vehicles across 30 classes [2][5][8] - The event will also include the return of RADwood, celebrating the automotive lifestyle of the '80s and '90s, and an expanded Cars & Community event on Sunday [2][5] Auction Highlights - In 2025, Broad Arrow Auctions achieved $61.7 million in total sales with 88% of lots sold, including a notable sale of a 1959 Ferrari 250 GT LWB California Spider Competizione for $9.5 million [4][8] - The 2026 auction is expected to feature over 150 collector cars, building on the success of previous years [4][8] Honoree Background - Dario Franchitti is a four-time IndyCar Series Champion and three-time Indianapolis 500 winner, with a total of 31 career IndyCar victories and 89 podium finishes [6] - He is also recognized as a passionate collector and preservationist, and has been inducted into multiple motorsport halls of fame [6] Organizational Overview - The Amelia is a prestigious motoring event that blends motorsport heritage with contemporary car culture, having donated over $4 million to charitable organizations since its inception in 1996 [8] - Hagerty, the company behind The Amelia, is a leading provider of specialty vehicle insurance and automotive lifestyle services, catering to a community of nearly 890,000 car enthusiasts [9]

Core Viewpoint - Hagerty, Inc. (HGTY) is positioned as a strong investment opportunity due to significant upward revisions in earnings estimates, indicating a positive earnings outlook that may continue to drive stock price growth [1][2]. Earnings Estimate Revisions - Analysts have shown growing optimism regarding Hagerty's earnings prospects, reflected in the upward trend of earnings estimate revisions, which historically correlate with stock price movements [2]. - The current-quarter earnings estimate is $0.13 per share, representing an 8.3% increase from the previous year, with a 6.45% rise in the Zacks Consensus Estimate over the last 30 days, indicating no negative revisions [7]. - For the full year, the expected earnings are $0.35 per share, marking a 45.8% increase from the prior year, with a similar trend of one upward revision and no negative changes in estimates [8]. Zacks Rank and Performance - The positive revisions have led to Hagerty earning a Zacks Rank 1 (Strong Buy), which is associated with a strong historical performance, averaging a 25% annual return since 2008 for Zacks 1 ranked stocks [3][9]. - Stocks with Zacks Rank 1 and 2 are shown to significantly outperform the S&P 500, reinforcing the potential for Hagerty's stock to deliver strong returns [9]. Market Reaction - The stock has gained 5.6% over the past four weeks, driven by favorable estimate revisions, suggesting that investors are increasingly confident in Hagerty's earnings growth prospects [10].

Core Insights - Broad Arrow Auctions, a Hagerty company, is set to host its flagship Monterey Jet Center Auction on August 13-14, 2025, featuring a highly desirable 2005 Maserati MC12 Stradale, estimated between $4.8 million and $5.5 million [1][2][3] Auction Highlights - The auction will present 170 lots, showcasing a variety of collector cars across active market segments, including modern supercars, post-war classics, and rising JDM icons [4][5] - Notable supercar entries include the 2008 Koenigsegg CCXR (Estimate: $2.75 million - $3.5 million), 2018 Bugatti Chiron (Estimate: $3 million - $3.5 million), and 1991 Ferrari F40 (Estimate: $3.35 million - $3.5 million) [6][8] - The auction will also feature significant track-focused vehicles, such as the 1959 Porsche 718 RSK Spyder (Estimate: $3.5 million - $4 million) [10] Market Trends - The current collector car market is seeing younger buyers who prioritize performance and usability, seeking rare and high-quality vehicles [5] - The Japanese Domestic Market (JDM) segment is gaining traction, with a rare 1999 Nissan Skyline CRS GT-R V-Spec by NISMO leading the offerings (Estimate: $700,000 - $850,000) [13] - The post-war classic car segment remains a staple, highlighted by a 1967 Ferrari 275 GTB/4 (Estimate: $2.5 million - $3 million) [14] Company Background - Broad Arrow Auctions is recognized as a leading global collector car auction house, having rapidly expanded its presence since its founding in 2021 [18] - The company is known for its high-quality offerings and has established flagship events, including the Monterey Jet Center Auction and others in collaboration with prestigious automotive events [18]