The company achieved a significant operational turnaround with the combined ratio improving to 76.9% in 2026Q1, driven by a marked reduction in claims severity.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Revenue | 775.57M | 847.33M | 816.99M | 735.5M | 662.46M | 631.56M | 593.38M | 511.31M | 480.17M | 406.62M | 438.96M | 394.79M | 233.82M | 98.79M | 5.63M |
| Revenue Growth % | -7.36% | 3.71% | 11.08% | 11.03% | 4.89% | 6.43% | 16.05% | 6.48% | 18.09% | -7.37% | 11.19% | 68.84% | 136.69% | 1654.64% | - |
| Medical Costs & Claims | 378.78M | 313.25M | 638.24M | 593.74M | 657.47M | 573.34M | 501.66M | 381.19M | 322.09M | 285.37M | 323.28M | 198.38M | 126.07M | 18.61M | 1.49M |
| Medical Cost Ratio % | 48.84% | 36.97% | 78.12% | 80.73% | 99.25% | 90.78% | 84.54% | 74.55% | 67.08% | 70.18% | 73.65% | 50.25% | 53.92% | 18.83% | 26.39% |
| Gross Profit | 396.79M | 534.08M | 178.75M | 141.76M | 4.99M | 58.22M | 91.72M | 130.11M | 158.08M | 121.25M | 115.67M | 196.41M | 107.75M | 80.18M | 4.14M |
| Gross Margin % | 51.16% | 63.03% | 21.88% | 19.27% | 0.75% | 9.22% | 15.46% | 25.45% | 32.92% | 29.82% | 26.35% | 49.75% | 46.08% | 81.17% | 73.61% |
| Gross Profit Growth % | - | 198.79% | 26.09% | 2738.59% | -91.42% | -36.52% | -29.5% | -17.69% | 30.38% | 4.82% | -41.11% | 82.29% | 34.38% | 1834.87% | - |
| Operating Expenses | 128.49M | 274.82M | 96.07M | 89.75M | 171.16M | 134.26M | 89.51M | 89.11M | 119.09M | 127.14M | 59.27M | 46.13M | 33.5M | 24.72M | 8.75M |
| OpEx / Revenue % | 16.57% | 32.43% | 11.76% | 12.2% | 25.84% | 21.26% | 15.08% | 17.43% | 24.8% | 31.27% | 13.5% | 11.68% | 14.33% | 25.02% | 155.44% |
| Depreciation & Amortization | 12.97M | 12.7M | 9.55M | 8.69M | 8.36M | 8.45M | 8.1M | 10.44M | 27.07M | 7.74M | 8.98M | 1.35M | 777K | 150K | 0 |
| Combined Ratio % | 65.41% | 69.4% | 89.88% | 92.93% | 125.08% | 112.04% | 99.63% | 91.98% | 91.88% | 101.45% | 87.15% | 61.93% | 68.24% | 43.86% | 181.83% |
| Operating Income | 268.29M | 259.26M | 82.68M | 52.01M | -166.17M | -76.03M | 2.21M | 41M | 38.99M | -5.89M | 56.4M | 150.29M | 74.25M | 55.46M | -4.61M |
| Operating Margin % | 34.59% | 30.6% | 10.12% | 7.07% | -25.08% | -12.04% | 0.37% | 8.02% | 8.12% | -1.45% | 12.85% | 38.07% | 31.76% | 56.14% | -81.83% |
| Operating Income Growth % | - | 213.59% | 58.98% | 131.3% | -118.55% | -3535.79% | -94.6% | 5.13% | 761.81% | -110.45% | -62.47% | 102.41% | 33.88% | 1303.84% | - |
| EBITDA | 281.27M | 271.96M | 92.23M | 60.69M | -157.81M | -67.58M | 10.31M | 51.43M | 66.06M | 1.85M | 65.38M | 151.64M | 75.03M | 55.61M | -3.78M |
| EBITDA Margin % | 36.27% | 32.1% | 11.29% | 8.25% | -23.82% | -10.7% | 1.74% | 10.06% | 13.76% | 0.45% | 14.89% | 38.41% | 32.09% | 56.29% | -67.1% |
| Interest Expense | 7.24M | 7.89M | 10.93M | 11.21M | 8.81M | 7.97M | 7.97M | 8.52M | 20.02M | 13.21M | 362K | 0 | 0 | 16K | 829K |
| Non-Operating Income | -7.24M | -7.89M | -10.93M | -11.21M | -8.81M | -7.97M | -7.97M | -8.52M | -20.02M | -13.21M | -362K | 0 | 0 | -16K | -829K |
| Pretax Income | 268.29M | 259.26M | 82.68M | 52.01M | -166.17M | -76.03M | 2.21M | 41M | 38.99M | -5.89M | 56.4M | 150.29M | 74.25M | 55.46M | -4.61M |
| Pretax Margin % | 34.59% | 30.6% | 10.12% | 7.07% | -25.08% | -12.04% | 0.37% | 8.02% | 8.12% | -1.45% | 12.85% | 38.07% | 31.76% | 56.14% | -81.83% |
| Income Tax | 66.69M | 63.67M | 21.14M | 6.7M | -11.81M | -1.31M | -7.11M | 12.36M | 11.84M | -4.77M | 22.54M | 57.78M | 27.16M | 21.25M | 859K |
| Effective Tax Rate % | 24.86% | 24.56% | 25.56% | 12.88% | 7.11% | 1.72% | -321.42% | 30.15% | 30.36% | 81.01% | 39.96% | 38.44% | 36.57% | 38.31% | -18.65% |
| Net Income | 201.6M | 195.59M | 61.54M | 45.31M | -154.36M | -74.73M | 9.33M | 28.64M | 27.16M | -1.12M | 33.87M | 92.51M | 47.1M | 34.21M | -5.47M |
| Net Margin % | 25.99% | 23.08% | 7.53% | 6.16% | -23.3% | -11.83% | 1.57% | 5.6% | 5.66% | -0.28% | 7.71% | 23.43% | 20.14% | 34.63% | -97.09% |
| Net Income Growth % | 159.17% | 217.84% | 35.83% | 129.35% | -106.57% | -901.28% | -67.43% | 5.45% | 2526.72% | -103.3% | -63.39% | 96.43% | 37.66% | 725.92% | - |
| EPS (Diluted) | 6.56 | 6.32 | 2.01 | 1.73 | -5.86 | -2.69 | 0.33 | 0.98 | 1.04 | -0.04 | 1.14 | 3.05 | 1.82 | 1.18 | -0.19 |
| EPS Growth % | 157.71% | 214.43% | 16.18% | 129.52% | -117.84% | -915.15% | -66.33% | -5.77% | 2588.04% | -103.67% | -62.62% | 67.58% | 54.24% | 721.05% | - |
| EPS (Basic) | - | 6.33 | 2.01 | 1.73 | -5.86 | -2.69 | 0.33 | 0.98 | 1.05 | -0.04 | 1.14 | 3.08 | 1.92 | 1.18 | -0.19 |
| Diluted Shares Outstanding | 30.74M | 30.95M | 30.65M | 26.25M | 26.34M | 27.8M | 27.99M | 29.23M | 26.1M | 26.8M | 29.63M | 30.33M | 25.82M | 28.89M | 28.89M |
Florida catastrophe exposure concentration
As reported in recent quarterly filings, Heritage Insurance Holdings has maintained a stable top-line trajectory, with revenue growth hovering near 0.5% in 2026Q1, suggesting that the company's strategic pivot toward geographic diversification is currently offsetting the competitive pressures inherent in the Florida residential property market.
The company appears to be prioritizing underwriting discipline over aggressive volume expansion, likely to preserve capital in a hardening reinsurance environment. Investors should monitor whether the shift into Northeast markets can eventually provide a more sustainable growth engine than the legacy Florida book.
Based on the provided financial data, the combined ratio improved significantly to 76.9% in 2026Q1, reflecting a marked reduction in the loss ratio to 43.1% compared to the 84.3% peak observed in 2024Q3, which suggests that recent legislative reforms are successfully tempering claims severity.
This margin expansion appears to be a direct result of reduced litigation frequency and improved claims management. The ability to sustain a combined ratio well below the 100% threshold indicates that the company is currently generating robust underwriting profit, though this remains sensitive to seasonal weather volatility.
According to the historical income statement trends, the transition from a 95.8% combined ratio in 2024Q3 to current levels marks a critical inflection point, likely driven by the implementation of Florida Senate Bill 2A, which appears to have structurally lowered the company's litigation-related loss adjustment expenses.
This shift suggests that the company's internal restoration model is finally benefiting from a more favorable regulatory backdrop. Analysts should investigate whether this trend is sustainable or if it represents a temporary reprieve from the historical pressures of social inflation in the Florida insurance market.
While reported net income appears strong, the company's reliance on reinsurance treaties warrants further investigation, as the 2025Q4 combined ratio of 38.2% suggests significant accounting noise that may not reflect the underlying long-term underwriting performance of the core residential property insurance portfolio.
Investors should be cautious of interpreting these quarterly spikes as permanent improvements in profitability. The potential for future reinsurance treaty pricing hikes remains a significant risk that could quickly compress margins if the company is forced to retain more risk on its own balance sheet.
Quick answers to the most common questions about buying HRTG stock.
For fiscal year 2025, Heritage Insurance Holdings, Inc. (HRTG) reported total revenue of $847.3M. This represents a 14950.3% increase compared to $5.6M in 2012.
Heritage Insurance Holdings, Inc. (HRTG) is profitable, generating $195.6M in net income for the fiscal year ending 2025 with a net profit margin of 23.1%.
Heritage Insurance Holdings, Inc. (HRTG) reported an operating income of $259.3M, resulting in an operating profit margin of 30.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Heritage Insurance Holdings, Inc. (HRTG) generated $534.1M in gross profit for the year, representing a gross profit margin of 63.0%. This demonstrates the company's core pricing power and production efficiency.