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- **Revenue Surge**: 18% total revenue growth, fueled by 13% written premium increase and record PIF growth in October.
- **Strategic Partnerships**: New deals with Liberty Mutual and Safeco add to add tens of thousands of policies.
- **Modern Vehicle Expansion**: Enthusiast Plus program targeting modern cars, with $240M in live auction sales YTD.
- **Profitability Boost**: Net income up 143% to $46M, operating margins expand 590bps to 9%, and EBITDA surges 106%.
- **Tax Efficiency**: $38M deferred tax asset release offsets $29M TRA expense, driving 2025 net income guidance of $124-129M.

**CEO Summary Section**
- **Revenue Growth**: Total revenue increased 18% year-over-year, driven by 13% growth in written premium and 14% rise in commission revenue. October 2025 marked the highest Policy in Force (PIF) growth in company history.
- **Partnerships**: Signed a new partnership with Liberty Mutual and Safeco, adding tens of thousands of new policies. Expanded European auction business with sales in Belgium and Switzerland.
- **Enthusiast Plus Program**: Launched in Colorado to target modern enthusiast vehicles, with early positive underwriting results despite early-stage claims data.
- **Financial Performance**: Operating margins expanded 590 basis points to 9%, net income rose 143% to $46 million, and adjusted EBITDA increased 106% to $50 million.
- **Strategic Priorities**: Focus on modern vehicle insurance, integrating membership experiences, and global marketplace expansion with $240 million in live auction sales year-to-date.

**CFO Financial Commentary**
- **Financial Metrics**: GAAP net income of $46 million (vs. $19 million prior), non-GAAP EPS of $0.18, and adjusted EBITDA of $50 million. Released $38 million in deferred tax assets, partially offset by a $29 million tax receivable agreement expense.
- **Cost Management**: G&A and salaries grew 17% and 44%, respectively, due to technology investments and incentive compensation. Operating expenses remain controlled, with core growth in single digits.
- **Outlook**: 2025 guidance updated to 14-15% revenue growth, net income of $124-129 million (58-65% YoY), and adjusted EBITDA of $170-176 million (37-41% growth).

Hagerty, Inc. (HGTY) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

HGTY

HGTY fundamentals

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