Hagerty (HGTY) Earnings Date & Reports

Key Takeaways

• Hagerty reported third quarter 2026 adjusted earnings of $0.10 per share, comfortably ahead of the $0.01 consensus estimate.
• Revenue came in at $354.24 million, topping the $338.85 million analyst forecast and marking a 15th straight quarter of meeting or beating expectations.
• Written premium — a measure of new insurance business — rose 16% year over year to $386 million, while earned premium climbed 42% to $265 million.
• Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reached $97 million, pushing year-to-date adjusted EBITDA up 43% to $257 million.
• Management raised its full-year 2026 outlook to GAAP net income of $48 million to $60 million and adjusted EBITDA of $305 million to $315 million.
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Earnings Context and Why It Matters

Hagerty's third quarter results carry weight because they capture the peak of the North American driving season, when collector-car enthusiasts are most active. The report also offered the first clear read on how the company's evolving relationship with Markel and its State Farm partnership are reshaping the income statement. Investors have been watching whether Hagerty's shift to controlling 100% of its underwriting risk can translate into sustainable profitability gains, and whether its expansion beyond insurance — into auctions, membership, and media — can keep fueling member growth. Coming off strong prior quarters, this release tested whether the company's momentum could hold while it integrates a larger book of risk.

Reported Results

Hagerty posted adjusted earnings of $0.10 per share for the third quarter of 2026, beating the $0.01 consensus estimate by $0.09. Revenue totaled $354.24 million, above the $338.85 million analysts expected. On a GAAP (Generally Accepted Accounting Principles) basis, net income was $36 million for the quarter, bringing year-to-date net income to $32 million.

Written premium increased 16% year over year to $386 million, driven primarily by policy count rather than rate increases. Earned premium grew 42% to $265 million, reflecting written premium gains plus Hagerty's increased quota share. Hagerty Re's combined ratio — an insurance metric where a figure below 100% signals underwriting profitability — was 85.2% for the first nine months, aided by $32 million of lower estimated losses. Adjusted EBITDA reached $97 million in the quarter.

Management also raised its full-year guidance, now expecting GAAP net income of $48 million to $60 million and adjusted EBITDA of $305 million to $315 million, citing year-to-date outperformance and sustained business momentum.

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Market Reaction and Investor Sentiment

Shares of Hagerty moved higher following the release, reflecting investor approval of both the earnings beat and the improved outlook. The stock climbed toward the upper end of its 52-week range in early trading, signaling that the market viewed the stronger guidance as more meaningful than the single-quarter EPS surprise. Sentiment entering the report had been generally positive, supported by consistent premium growth and a track record of meeting or beating expectations. The combination of a larger-than-expected profit beat, robust written premium momentum, and an upwardly revised profit outlook reinforced confidence in the company's long-term growth story, even as some investors noted that a portion of 2026's benefit stems from a one-time accounting tailwind that will not repeat next year.

Forward Outlook and Key Factors to Monitor

Looking ahead, investors will be watching whether Hagerty can sustain its double-digit written premium growth while the broader personal auto insurance market softens. Management indicated that full-year written premium growth should land at the high end of its 16% to 17% range, though the fourth quarter is typically seasonally slower for new business.

One important nuance to monitor is the roughly $52 million benefit from capitalizing acquisition costs in 2026 — a timing effect that is largely complete and will not repeat in 2027. That means next year's profit bridge will begin from a lower base, and analysts will be watching how organic underwriting performance fills the gap.

Additional factors worth tracking include the continued rollout of State Farm conversions, the integration of the Bennetts motorcycle brokerage acquisition in the U.K., and Broad Arrow auction sales, which have grown sharply but can swing based on inventory levels and high-end collector-car pricing. Management has also flagged that collector-car values have risen sharply, raising the possibility of moderation in some segments. Claims trends, retention rates, and the company's investments in AI and distribution will all help determine whether margin expansion continues into 2027.

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