Revenue of $354.2M in 2026Q3 reflects a -6.8% year-over-year decline and a combined ratio of 88.3% that is well above the 84.4%-85.5% levels seen in 2024Q2 and 2025Q2, indicating margin compression as the top line softens.
Hagerty, Inc. (HGTY) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Revenue | 1.38B | 1.46B | 1.19B | 1.01B | 829.49M | 576.54M | 499.55M | 397.27M |
| Revenue Growth % | 1.34% | 22.23% | 17.77% | 21.97% | 43.87% | 15.41% | - | - |
| Medical Costs & Claims | 359.31M | 285.39M | 298.59M | 220.66M | 373.55M | 263.06M | 91.03M | 0 |
| Medical Cost Ratio % | 26.07% | 19.6% | 25.06% | 21.81% | 45.03% | 45.63% | 18.22% | 0% |
| Gross Profit | 1.02B | 1.17B | 892.9M | 791.1M | 455.94M | 313.48M | 408.52M | 397.27M |
| Gross Margin % | 73.93% | 80.4% | 74.94% | 78.19% | 54.97% | 54.37% | 81.78% | 100% |
| Gross Profit Growth % | - | 31.14% | 12.87% | 73.51% | 45.44% | -23.27% | - | - |
| Operating Expenses | 956.51M | 1.03B | 799.22M | 746.33M | 444.84M | 368.08M | 393.66M | 386.43M |
| OpEx / Revenue % | 69.4% | 70.85% | 67.08% | 73.77% | 53.63% | 63.84% | 78.8% | 97.27% |
| Depreciation & Amortization | 39M | 37.52M | 38.91M | 45.81M | 33.89M | 22.14M | 11.8M | 8.95M |
| Combined Ratio % | 95.47% | 90.44% | 92.14% | 95.57% | 98.66% | 109.47% | 97.03% | 97.27% |
| Operating Income | 62.39M | 139.18M | 93.68M | 44.77M | 11.1M | -54.6M | 14.86M | 10.85M |
| Operating Margin % | 4.53% | 9.56% | 7.86% | 4.43% | 1.34% | -9.47% | 2.97% | 2.73% |
| Operating Income Growth % | - | 48.57% | 109.24% | 303.5% | 120.32% | -467.47% | - | - |
| EBITDA | 101.4M | 176.71M | 132.59M | 90.58M | 44.98M | -32.46M | 26.66M | 19.8M |
| EBITDA Margin % | 7.36% | 12.13% | 11.13% | 8.95% | 5.42% | -5.63% | 5.34% | 4.98% |
| Interest Expense | 3.69M | 8.7M | 0 | 4.08M | 0 | 0 | 0 | 0 |
| Non-Operating Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Pretax Income | 62.39M | 139.18M | 93.68M | 44.77M | 11.1M | -54.6M | 14.86M | 11.46M |
| Pretax Margin % | 4.53% | 9.56% | 7.86% | 4.43% | 1.34% | -9.47% | 2.97% | 2.88% |
| Income Tax | 2.27M | -10.04M | 15.38M | 16.59M | 7.02M | 6.75M | 4.82M | 7.25M |
| Effective Tax Rate % | 3.64% | -7.22% | 16.42% | 37.06% | 63.24% | -12.36% | 32.44% | 63.29% |
| Net Income | 14.83M | 49.02M | 17.02M | 20.23M | 32.08M | -46.36M | 10.17M | 4.21M |
| Net Margin % | 1.08% | 3.37% | 1.43% | 2% | 3.87% | -8.04% | 2.04% | 1.06% |
| Net Income Growth % | -65.76% | 188.05% | -15.89% | -36.93% | 169.2% | -556.01% | - | - |
| EPS (Diluted) | 0.14 | 0.37 | 0.10 | 0.09 | -0.07 | -0.56 | 0.68 | 0.01 |
| EPS Growth % | -76.12% | 270% | 7.07% | 231% | 87.27% | -182.35% | - | - |
| EPS (Basic) | - | 0.44 | 0.10 | 0.19 | 0.39 | -0.56 | 0.68 | 0.01 |
| Diluted Shares Outstanding | 107.8M | 346.97M | 88.5M | 340.32M | 336.15M | 82.33M | 14.95M | 329.31M |
Quick answers to the most common questions about buying HGTY stock.
For fiscal year 2025, Hagerty, Inc. (HGTY) reported total revenue of $1.46B. This represents a 266.6% increase compared to $397.3M in 2019.
Hagerty, Inc. (HGTY) is profitable, generating $49.0M in net income for the fiscal year ending 2025 with a net profit margin of 3.4%.
Hagerty, Inc. (HGTY) reported an operating income of $139.2M, resulting in an operating profit margin of 9.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Hagerty, Inc. (HGTY) generated $1.17B in gross profit for the year, representing a gross profit margin of 80.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Claims cost inflation pressure
Metrics are mathematically derived from official filings.
Top-Line Growth Decelerating Sharply Recently
Based on HGTY's reported quarterly figures, revenue growth swung from 22.5% in 2025Q4 to a -6.8% contraction in 2026Q3, a reversal that suggests the premium growth engine has lost momentum despite management's raised full-year outlook.
The shift from double-digit expansion through 2025 to year-over-year declines in the two most recent quarters may indicate softening policy volume or tighter pricing, which warrants further investigation into the mix between agency and reinsurance revenue. The raised guidance appears to rely on a stronger second half than the recent trend would imply, and investors should monitor whether the State Farm channel can offset this deceleration. Without granular policy-in-force data, it is difficult to determine whether the contraction reflects cyclical pricing or a structural slowdown.
Combined Ratio Volatility Masks Underwriting Strain
Per the reported figures, HGTY's combined ratio ranged from 84.4% in 2024Q2 to 106.7% in 2026Q1, indicating that underwriting profitability has been inconsistent and crossed into loss territory in the most recent first quarter.
A combined ratio above 100% implies the company depended on investment or other income to reach profitability in that period, which appears to have occurred in 2026Q1 when the company posted an operating loss of $20.9M. The loss ratio spike to 46.5% in 2025Q1 and 31.4% in 2026Q1 suggests severity pressure that may be linked to repair cost inflation for specialized vehicles. Investors should monitor whether elevated loss ratios persist, as repeated quarters above 100% would challenge the underwriting thesis.
Earnings Quality Hinges on Loss Development
Based on reported figures, quarterly loss ratios have swung between 16.9% and 46.5% over the past ten quarters, a range wide enough to suggest that reserve estimates and development patterns may be materially influencing reported earnings.
Such volatility in the loss ratio could indicate that prior-period reserve adjustments are driving some quarters above or below underlying trend, though the data provided does not disclose reserve development explicitly. The sharp drop to a 16.9% loss ratio in 2025Q4 followed by a rise to 31.4% in 2026Q1 warrants scrutiny of whether reserve releases or strengthening are shaping the trajectory. Without detailed development triangles, this remains an inference requiring further investigation.
Investment Income Contribution Not Disclosed
The supplied income statement data does not report investment income or investment yield for HGTY across the ten quarters, so the contribution of investment returns to total earnings cannot be assessed from the provided figures.
Because investment income is absent from the dataset, data is unavailable to determine whether the company relies on float returns to offset underwriting results in weaker quarters such as 2026Q1. Analysts should consult the full filings to quantify this contribution before drawing conclusions about earnings durability. Any judgment on investment sensitivity to rate or equity market movements would be speculative on the current data.
Raised Guidance Versus Negative Recent Earnings
Based on HGTY's reported figures, the company posted a net loss of $-0.02 EPS in 2026Q2 and a $4.5M net loss in 2026Q1, yet management raised full-year guidance, creating a tension investors should weigh carefully.
The strongest challenge to the constructive narrative is that raised guidance may rest on second-half assumptions, such as State Farm distribution gains or pricing actions, that have not yet appeared in reported results. Net margins compressing toward breakeven and an operating loss in 2026Q1 suggest cost-side or claims-side pressure may be more persistent than management's commentary implies. Investors should monitor whether subsequent quarters validate the guidance increase before accepting it as evidence of accelerating demand.