Hagerty Inc Class A (HGTY)
NYSE:HGTY
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Hagerty Inc Class A
(NYSE:HGTY)
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Rating:70Outperform
Price Target:
$11.50
▲(6.19% Upside)
Action:ReiteratedDate:04/01/26
The score is driven primarily by strong 2025 financial performance (improving margins, strong cash generation, and a much stronger balance sheet with zero debt). Offsetting this, technicals remain weak with the stock below key long-term moving averages and negative MACD. Earnings-call guidance is constructive on underlying growth and adjusted EBITDA, but near-term GAAP results are expected to look worse due to transition-related accounting impacts, and valuation (P/E ~25.9 with no dividend) is only moderately supportive.
Positive Factors
Strong cash generation
Hagerty generated substantial operating cash flow (~$219M) and free cash flow (~$194M) in 2025, with FCF roughly tracking net income. Durable cash generation supports reinvestment in technology, underwriting capital and marketplace expansion, and provides buffer for strategic initiatives and cyclical shocks.
Negative Factors
Large transitional GAAP amortization
A noncash ~$190M amortization tied to the Markel fronting transition will materially depress 2026 GAAP profits (management guides to negative net income). This creates multi‑period comparability noise and could affect stakeholder perception, compensation metrics and short‑to‑medium term reported profitability.
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Positive Factors
Negative Factors
Strong cash generation
Hagerty generated substantial operating cash flow (~$219M) and free cash flow (~$194M) in 2025, with FCF roughly tracking net income. Durable cash generation supports reinvestment in technology, underwriting capital and marketplace expansion, and provides buffer for strategic initiatives and cyclical shocks.
Read all positive factors
Hagerty Inc Class A (HGTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.45B
Dividend YieldN/A
Average Volume (3M)114.25K
Price to Earnings (P/E)25.9
Beta (1Y)0.65
Revenue Growth19.65%
EPS Growth282.81%
CountryUS
Employees1,733
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)0.08
Shares Outstanding101,066,536
10 Day Avg. Volume121,833
30 Day Avg. Volume114,248
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)4.12
Price to Sales (P/S)0.87
P/FCF Ratio6.52
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue2.38
Enterprise Value/Gross Profit2.97
Enterprise Value/Ebitda19.17
Forecast
1Y Price Target
$14.25Price Target Upside31.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)0.1
Revenue Forecast (FY)$1.28B
Hagerty Inc Class A Business Overview & Revenue Model
Company Description
Hagerty, Inc. provides insurance agency services worldwide. It offers automobile and boat insurance products; and reinsurance products. The company also provides Hagerty Media, which publishes contents through the HDC Magazine, video content, YouT...
How the Company Makes Money
Hagerty primarily generates revenue through its insurance operations and related services aimed at collector-vehicle owners. Key revenue streams include: (1) Insurance revenue: Hagerty earns revenue through its role in offering specialty auto insu...
Hagerty Inc Class A Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call highlighted strong operating performance in 2025 — double-digit revenue growth, record new members, robust marketplace expansion, materially higher profits, cash flow and improved underwriting economics — and presented strategic long-term positives such as the Markel fronting arrangement and distribution partnerships. However, the company warned of significant 2026 GAAP accounting noise tied to the fronting transition (including a ~$190M noncash amortization) that will depress reported 2026 net income and revenue comparability despite healthy underlying written-premium growth and solid adjusted EBITDA guidance. The fundamentals and adjusted metrics are strong, but near-term GAAP results will look worse due to one-time and transitional items.Positive Updates
Full-Year Revenue and Net Income Growth
Revenue up 17% for full-year 2025 and net income surged 91% to $149 million, driven by premium growth, efficiency gains and a $21 million reserve reduction.
Negative Updates
2026 GAAP Noise and Negative Net Income Outlook
Accounting changes tied to the Markel fronting arrangement will materially distort 2026 GAAP results: consolidated revenue is expected to be lower (projected $1.28B–$1.30B) despite written premium growth, and net income guidance for 2026 is negative at approximately -$41M to -$51M.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue and Net Income Growth
Revenue up 17% for full-year 2025 and net income surged 91% to $149 million, driven by premium growth, efficiency gains and a $21 million reserve reduction.
Read all positive updates
Company Guidance
Hagerty guided 2026 written premium growth of 15–16% and said reported revenue will be $1.28–1.30 billion (down versus 2025 due to consolidation that eliminates commission revenue), with adjusted EBITDA of $236–247 million and GAAP net income of negative $41–51 million driven by a one‑time noncash transitional amortization of ~ $190 million of 2025 ceding commission (roughly $90M in Q1 rolling to ~$10M in Q4); management expects an underlying loss ratio in the low‑40s (~41%), similar cash conversion to 2025 (operating cash flow was $219M in 2025), continued ramp of the State Farm initiative (~525,000 vehicles, 27 states live with 7 states in conversion), ongoing Marketplace/auction growth (lumpy), and a long‑term target to double policies in force to ~3 million by 2030 (noting 2025 Markel‑related metrics: $437M commission revenue and $344M ceding commission).Hagerty Inc Class A Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
83
Very Positive
Cash Flow
86
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.46B | 1.19B | 1.01B | 829.49M | 576.54M |
| Gross Profit | 1.17B | 892.90M | 791.10M | 455.94M | 313.48M |
| EBITDA | 176.71M | 132.59M | 90.58M | 44.98M | -32.46M |
| Net Income | 49.02M | 17.02M | 20.23M | 32.08M | -46.36M |
Balance Sheet | |||||
| Total Assets | 2.07B | 1.67B | 1.56B | 1.29B | 1.02B |
| Cash, Cash Equivalents and Short-Term Investments | 299.00M | 232.84M | 724.28M | 539.19M | 603.97M |
| Total Debt | 232.57M | 198.04M | 238.10M | 277.38M | 126.43M |
| Total Liabilities | 1.32B | 1.08B | 1.06B | 920.51M | 752.58M |
| Stockholders Equity | 307.93M | 234.99M | 175.54M | 59.25M | -323.78M |
Cash Flow | |||||
| Free Cash Flow | 194.45M | 155.68M | 118.55M | 10.95M | -1.09M |
| Operating Cash Flow | 218.99M | 177.02M | 144.95M | 55.33M | 42.28M |
| Investing Cash Flow | -185.20M | -618.56M | -51.87M | -91.52M | -68.99M |
| Financing Cash Flow | 29.93M | -46.92M | 91.14M | -28.08M | 332.07M |
Hagerty Inc Class A Technical Analysis
Negative
10.83
Price Trends
11.02
Negative
11.98
Negative
11.71
Negative
Market Momentum
<0.01
Negative
49.32
Neutral
33.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HGTY, the sentiment is Negative. The current price of 10.83 is above the 20-day moving average (MA) of 10.79, below the 50-day MA of 11.02, and below the 200-day MA of 11.71, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.32 is Neutral, neither overbought nor oversold. The STOCH value of 33.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HGTY.
Hagerty Inc Class A Risk Analysis
Hagerty Inc Class A disclosed 73 risk factors in its most recent earnings report. Hagerty Inc Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hagerty Inc Class A Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $5.07B | 11.67 | 12.93% | 1.85% | 8.76% | 99.32% | |
77 Outperform | $3.29B | 18.22 | 22.79% | ― | 58.30% | 61.00% | |
74 Outperform | $5.30B | 9.63 | 25.65% | 1.34% | 9.44% | 15.60% | |
70 Outperform | $3.45B | 25.88 | 22.94% | ― | 19.65% | 282.81% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
56 Neutral | $1.95B | -74.49 | 5.08% | 3.15% | 3.36% | -55.22% | |
52 Neutral | $4.30B | -58.89 | -31.19% | ― | 41.30% | 21.25% |
* Financial Sector Average
HGTY
Hagerty Inc Class A
10.16
1.40
15.98%
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PLMR
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120.38
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LMND
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98.67%
Hagerty Inc Class A Corporate Events
Business Operations and StrategyFinancial Disclosures
Hagerty Highlights Strong 2025 Growth and Profit Expansion
Positive
Feb 26, 2026
Hagerty Inc. operates in the specialty automotive insurance and enthusiast services market, focusing on classic, collectible and enthusiast vehicles for a global base of car lovers. The company combines insurance products with an omni-channel dist...
Business Operations and Strategy
Hagerty Reshapes Markel Partnership With New Essentia Agreements
Positive
Jan 2, 2026
On December 31, 2025, Hagerty, Inc. and key affiliates, together with strategic partner Markel Group, completed a previously announced fronting arrangement by amending and entering a series of core agreements that reshape their long-term collabora...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.