Heritage's revenue stabilized near $214M quarterly as its combined ratio contracted sharply to 72.0% in Q2 2026, driven by a loss ratio that has fallen over 23 percentage points from its Q3 2024 peak, indicating a potential inflection in underwriting profitability.
Heritage Insurance Holdings, Inc. (HRTG) annual income statement — 14-year revenue, gross profit & net income history
| 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 | 781.73M | 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 % | -7.12% | 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 | 390.36M | 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 % | 49.94% | 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 | 391.37M | 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 % | 50.06% | 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 | 125.99M | 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 % | 16.12% | 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 | 6.84M | 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 % | 66.05% | 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 | 289.15M | 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 % | 36.99% | 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 | 296M | 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 % | 37.86% | 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 | 7.05M | 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 | -5.36M | -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 | 287.46M | 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 % | 36.77% | 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 | 72.17M | 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 % | 25.11% | 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 | 215.29M | 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 % | 27.54% | 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 % | 101.31% | 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) | 7.16 | 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 % | 102.31% | 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 | 30.08M | 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 |
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.
Key Metrics
Top Statement Risk
Cat Loss Volatility & Reserve Risk
Metrics are mathematically derived from official filings.
Resilient Premium Volume Amid Market Cycle
Heritage's earned premiums have stabilized around $210M quarterly, with a notable -32.3% year-over-year decline in Q4 2025 likely reflecting strategic non-renewals or policy count reduction, as indicated by recent SEC filings.
The company's top line has transitioned from a period of strong double-digit growth in 2024 to a more muted, stable trajectory through 2025 and into 2026. This suggests management may be prioritizing underwriting discipline and profitability over top-line expansion in a challenging coastal property market. The significant Q4 2025 revenue dip, followed by a return to ~$212M in subsequent quarters, implies a deliberate portfolio pruning rather than a systemic loss of business.
Dramatic Improvement in Underwriting Discipline
Based on reported financials, Heritage's combined ratio has improved sharply from a crisis-level 95.8% in Q3 2024 to a highly profitable 72.0% in Q2 2026, driven by a loss ratio that has declined over 23 percentage points in the same period.
This trajectory indicates a successful re-underwriting and rate adequacy cycle, with the company moving from losing money on each policy written to generating significant underwriting profit. The loss ratio compression is the primary driver, suggesting more accurate pricing, improved claims management, or favorable prior-year reserve releases. An expense ratio hovering in the 11-13% range (implied by the combined ratio spread) demonstrates effective scale, though investors should monitor if this profitability is sustainable given the inherent volatility in Florida-exposed P&C insurance.
Potential Earnings Boost from Reserve Releases
The exceptionally low combined ratio of 38.2% reported in Q4 2025, when viewed alongside the -32.3% revenue decline, strongly suggests the release of prior-year reserves may have materially inflated that quarter's underwriting results.
Such an extreme combined ratio is rare for a property and casualty insurer and likely reflects a non-recurring positive development in loss reserves from prior accident years. While this boosts near-term reported earnings, it can mask the true current-year cost of risk. The return to more normalized combined ratios in the 72-77% range for subsequent quarters supports the interpretation that Q4 2025 was an outlier, and analysts should separate the recurring underwriting profit from this one-time benefit.
Transformational Turnaround from 2024 Trough
As reported in financial statements, Heritage's operational income swung from a near-break-even $9.0M in Q3 2024 to a robust $83.8M in Q2 2026, marking a fundamental inflection point in the company's profitability profile.
The period from Q3 2024 to Q1 2025 represents the trough of a severe profitability challenge, with combined ratios nearing or exceeding 90%. The subsequent, rapid improvement implies a decisive strategic response—likely involving significant rate increases, underwriting file purges, and claims process overhaul. This inflection demonstrates the company's ability to reprice and restructure its book, but the magnitude of the swing also highlights the high-beta nature of its earnings to the Florida insurance cycle and catastrophe environment.
Sustainability Under Florida Cat Risk
The strongest challenge to Heritage's reported earnings is whether the current profitability level, which shows an operating margin of 39.1% in Q2 2026, can withstand a major Florida hurricane without eroding capital and forcing a reversal of rate adequacy.
The company's dramatic margin improvement is precisely what attracts competition and political scrutiny in Florida. A single significant catastrophe event could trigger reserve strengthening, temporarily invert the favorable loss ratio trend, and pressure surplus. Furthermore, the apparent reliance on prior-year reserve releases to bolster results (as inferred from Q4 2025) suggests that the core, current-year underwriting profit may be somewhat lower than the headline figures indicate, warranting a more conservative assessment of sustainable earnings power.