Specialty vehicle insurer Hagerty beats Q3 estimates, hikes FY forecast

Hagerty

04/11/2025 12:01

Overview

Hagerty Q3 2025 revenue grows 18% yr/yr, beating analyst expectations

Adjusted EPS for Q3 2025 beats consensus, reflecting strong performance

Company raises 2025 outlook for revenue, net income, and adjusted EBITDA growth

Outlook

Hagerty raises 2025 total revenue growth outlook to 14-15%

Company expects 2025 net income growth of 58-65%

Hagerty anticipates 2025 adjusted EBITDA growth of 37-41%

Result Drivers

MARKETPLACE REVENUE - Q3 Marketplace revenue increased 58% yr/yr, driven by higher inventory sales and European auctions

OPERATING INCOME SURGE - Operating income rose 240% yr/yr, attributed to expanded margins and cost discipline

PARTNERSHIP WITH LIBERTY MUTUAL - New partnership with Liberty Mutual, the seventh largest auto insurer in the US, expected to enhance market position

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$380 mln
$354.74 mln (5 Analysts)
Q3 Adjusted EPS
Beat
$0.13
$0.07 (7 Analysts)
Q3 Net Income
$46.20 mln
Q3 Adjusted EBITDA
Beat
$49.70 mln
$40.54 mln (6 Analysts)
Q3 EBIT
$34.30 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the property & casualty insurance peer group is "buy."

Wall Street's median 12-month price target for Hagerty Inc is $13.50, about 16.4% above its November 3 closing price of $11.29

The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release: ID:nPn9plRDja

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)