NYSE$HGTY

Hagerty Inc · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Hagerty reported a 19% revenue increase and improved operating income in Q4 2024.

Hagerty's Q4 2024 revenue grew by 19% year-over-year to $291.7 million, driven by strong growth in earned premium and membership revenue. The company achieved operating income of $6.0 million, reversing a loss from the prior year. Net income was $8.4 million, while adjusted EBITDA improved to $19.9 million. Hagerty added 133,000 new members during the quarter and maintained strong customer retention.

  • Revenue increased 19% year-over-year to $291.7 million.
  • Earned premium grew 14% to $168.4 million.
  • Net income reached $8.4 million despite increased loss ratios.
  • Adjusted EBITDA improved to $19.9 million, a $10.2 million increase.

Headline financials

Total Revenue

$292M

Previous: $245M+19.1%
EPS (adj)

$0.02

Previous: -$0.01+300.0%
Written premium

$217M

No prior period
PIF retention

89.0%

No prior period
Loss ratio

42.8%

No prior period
HDC paid members

876.0K

No prior period
Capital Expenditures

-$4.07M

Previous: -$4.85M+16.1%
Net Income

$8.44M

Previous: $12.7M-33.7%
Operating Income

$6.04M

No prior period

Revenue & EPS history

Hagerty · Revenue · Quarterly

$292M

Q4 2024+19.1%vs Q4 2023
Beat estimate in 11 of 13 quarters(85%)
ActualEstimate

Revenue by segment

Hagerty · $152M total across 2 segments · Q1 2022

  • Earned premium
    $89.1M
  • Commission & fee
    $62.5M

Forward guidance

Hagerty expects revenue growth of 12-13% in 2025, driven by a 13-14% increase in written premiums. Net income is projected to grow by 30-40%, while adjusted EBITDA is expected to increase by 21-29% as the company continues investing in technology and efficiency improvements.

Tailwinds

  • Expected revenue growth of 12-13% in FY25.
  • Written premiums projected to increase 13-14%.
  • Net income anticipated to grow 30-40% due to efficiency improvements.
  • Investment in technology expected to streamline operations and support growth.
  • Expansion of the State Farm Classic Plus program to over 25 states.

Headwinds

  • Higher investment spending in technology expected to impact short-term margins.
  • Potential impact from regulatory changes in the insurance market.
  • Macroeconomic conditions may affect policy growth and premium rates.
  • Loss ratios could fluctuate due to catastrophic events and claims activity.
  • Competitive pressure in the specialty vehicle insurance segment.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+1.3%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+6.2%

Avg return

30 days after

58%

11 / 19 earnings

Positive

+10.0%

Q3 2023

Best reaction

-5.5%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.1%-2.8%+0.8%
Q4 2025+4.3%-8.9%-10.6%
Q3 2025-1.8%+10.1%+12.8%
Q1 2025+7.0%+6.0%+12.8%
Q4 2024-0.9%-2.4%-12.7%
Q3 2024-5.5%-5.8%-5.9%
Q2 2024-4.8%-2.5%+7.7%
Q1 2024+1.7%-2.2%+8.5%
Q4 2023+0.1%-5.6%-5.2%
Q3 2023+10.0%+9.2%+10.1%
Q2 2023+0.1%+7.9%+1.2%
Q1 2023+5.1%-2.3%+1.1%
Q4 2022-0.4%+6.9%+7.1%
Q3 2022+7.6%+1.5%-1.5%
Q2 2022+3.6%+18.8%+1.9%
Q1 2022+1.3%+10.7%+32.7%
Q4 2021-0.7%-17.3%-29.3%
Q3 2021-0.1%+0.0%+82.9%
Q2 2021+0.5%-1.0%+2.8%
Q1 2021
Q4 2020

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