Hagerty's Q1 2025: Unpacking Contradictions in Tariffs, Growth Trends, and Strategic Partnerships

Impact of tariffs on Hagerty's business, shopping behavior and Hagerty's growth, enthusiast cards and market expansion, State Farm partnership expansion are the key contradictions discussed in Hagerty's latest 2025Q1 earnings call.



Revenue Growth and Marketplace Success:
- Hagerty reported revenue of $320 million for Q1 2025, up 18% year-on-year.
- This growth was driven by a 12% increase in written premium and a 60% jump in Membership, Marketplace, and Other revenue.
- The strong performance in the marketplace was due to successful auctions and strategic expansion into new events.

Profitability and Margin Expansion:
- Operating margin improved by 360 basis points, resulting in net income gains of 233%, with adjusted EBITDA growth of 45%.
- The significant margin expansion was attributed to increasing economies of scale and disciplined cost management.

Strategic Expansion and Technology Investments:
- Hagerty is expanding its specialty insurance offerings and simplifying membership experiences to drive cost efficiencies and revenue synergies.
- Major technology replatforming is underway, with the transition to cloud-based insurance platforms on schedule, which will enable scalable growth and improved experiences for members.

Impact of Tariffs and Market Dynamics:
- Hagerty anticipates a muted impact from tariffs on its business, with no direct impact expected on insurance and limited effect for cars aged over 25 years.
- The company is closely monitoring the tariff situation and is prepared to adapt to potential changes.