Hagerty, Inc. 2025 Q3 Earnings: Strategic Resilience and Long-Term Value Creation in a Volatile Market

Hagerty, Inc. (HGTY) delivered a standout performance in the third quarter of 2025, showcasing its ability to navigate a volatile market while accelerating long-term value creation. The company's Q3 results not only exceeded expectations but also underscored a strategic playbook that combines operational discipline, innovative partnerships, and a deep understanding of its niche market.

Earnings Beat and Revenue Growth: A Test of Resilience

Hagerty's Q3 earnings of $0.13 per share handily surpassed the Zacks Consensus Estimate of $0.09, reflecting a 44.44% earnings surprise, according to a transcript from the Hagerty Q3 earnings call. This outperformance was driven by a 143% year-over-year increase in net income to $46 million and a 106% surge in adjusted EBITDA to $49.7 million, according to a press release from Hagerty's Q3 results. Revenue for the quarter reached $379.99 million, a 6.96% beat on estimates and a 18% year-over-year increase in total revenue to $1.068 billion year-to-date, according to the same press release. These figures highlight Hagerty's ability to scale its business while maintaining cost discipline, even as broader market volatility impacted peers in adjacent sectors, as noted in a Jefferies report that cited recent declines in Forward Air.

Strategic Initiatives: Building a Moat in a Niche Market

Hagerty's long-term value creation is anchored in its strategic initiatives, which are designed to compound growth and strengthen its position as the premier provider of collectible car insurance. Key moves include:
1. Expansion of the Enthusiast Plus Program: Targeting modern vehicles, this initiative is now live in one state, with further rollouts planned. By broadening its product offerings, Hagerty is tapping into a growing segment of drivers who value both classic and contemporary vehicles, as discussed in the Hagerty Q3 earnings call.
2. Partnerships with Liberty Mutual and Safeco: The new collaboration with the seventh-largest U.S. auto insurer is expected to bring Hagerty's specialized coverage to tens of thousands of new customers, enhancing its omnichannel reach, according to a press release from Hagerty's Liberty Mutual partnership. While smaller than its State Farm partnership, this move reinforces Hagerty's brand as the go-to provider for collectible car insurance, as discussed in the Hagerty Q3 earnings call.
3. Operational Control via Markel Transition: By assuming 100% underwriting risk and premium starting in 2026, Hagerty is poised to boost profitability and reduce reliance on third-party fronting arrangements, as discussed in the Hagerty Q3 earnings call. This shift aligns with broader industry trends toward vertical integration and margin expansion, as noted in the Hagerty Q3 results.

Market Positioning: Defying Volatility with a High NPS

Hagerty's strategic resilience is further evidenced by its robust customer loyalty metrics. The company's Net Promoter Score (NPS) of 82 far exceeds the industry average of 37, according to the Hagerty Q3 earnings call, indicating a loyal customer base that drives organic growth through referrals and repeat business. This loyalty is critical in a market where volatility-exemplified by recent declines in Forward Air and American Superconductor Corp-has eroded investor confidence in long-term transformation stories, as noted in the Jefferies report. Hagerty's ability to maintain a premium brand while scaling its Marketplace business (which grew 34% to $56 million in Q3, according to the Hagerty Q3 earnings call) positions it as a rare winner in a challenging environment.

Looking Ahead: A 2025 Outlook That Defies Cautious Sentiment

Hagerty has raised its full-year 2025 guidance, projecting revenue growth of 14-15% to $1.368–$1.380 billion, net income growth of 58-65% to $124–$129 million, and adjusted EBITDA growth of 37-41% to $170–$176 million, according to the Hagerty Q3 results. These targets reflect confidence in its strategic initiatives, including the Duck Creek technology platform, which aims to enhance operational efficiency and scalability, as noted in the Hagerty Q3 results. While the Marketplace business may see moderated growth in 2026 as auction calendars reach full capacity, as discussed in the Hagerty Q3 earnings call, Hagerty's focus on margin expansion and new partnerships ensures a durable growth trajectory.

Conclusion: A Model of Strategic Resilience

Hagerty's Q3 results and strategic moves exemplify how a company can thrive in a volatile market by combining niche expertise with disciplined execution. By leveraging its high NPS, expanding its product suite, and securing strategic partnerships, Hagerty is not just surviving but building a compounding engine for long-term value creation. For investors, the company's ability to outperform estimates while raising guidance in a challenging macro environment is a compelling signal of its resilience and potential.