Hagerty Reports Third Quarter 2025 Results; Increases 2025 Outlook

The Company raised its full year 2025 outlook for Total Revenue growth to 14-15%, Net Income growth to 58-65%, and Adjusted EBITDA growth to 37-41% Third quarter 2025 Total Revenue increased 18% year-over-year to $380.0 million, and year-to-date 2025 Total Revenue increased 18% to $1,068.3 million Third quarter 2025 Written Premium increased 16% year-over-year to $334.0 million, and year-to-date 2025 Written Premium increased 13% to $934.4 million Third quarter 2025 Marketplace revenue increased 58% year-over-year to $34.2 million, and year-to-date 2025 Marketplace revenue increased 135% to $89.9 million Third quarter 2025 Operating Income increased 240% year-over-year to $34.3 million, and year-to-date 2025 Operating Income increased 78% to $107.7 million Third quarter 2025 Net Income increased 143% year-over-year to $46.2 million, and year-to-date 2025 Net Income increased 73% to $120.7 million Third quarter 2025 Adjusted EBITDA (a non-GAAP measure) increased 106% year-over-year to $49.7 million, and year-to-date 2025 Adjusted EBITDA increased 46% to $153.1 million Third quarter 2025 Basic and Diluted Earnings Per Share was $0.18 and $0.11, respectively, and year-to-date 2025 Basic and Diluted Earnings Per Share was $0.35 and $0.29, respectively The Company signed a new partnership with Liberty Mutual, the seventh largest auto insurer in the United States , /PRNewswire/ -- Hagerty, Inc. (NYSE: HGTY), an automotive enthusiast brand and leading specialty vehicle insurance provider, announced today financial results for the three and nine months ended September 30, 2025. "We delivered high rates of growth through the third quarter of 2025 with year-to-date revenue gains of 18%. Margins continued to expand as we scale up our business while maintaining tight cost discipline, resulting in year-to-date net income growth of 73%, and Adjusted EBITDA gains of 46%," said McKeel Hagerty, Chief Executive Officer and Chairman of Hagerty. "Our strong business momentum allowed us to increase our 2025 outlook for the second straight quarter as we help car enthusiasts protect, buy and sell, and enjoy their special vehicles. We now expect to deliver total revenue growth of 14-15% and net income growth of 58-65% in 2025. We believe 2026 is shaping up to be another great year of sustained growth and margin expansion, and we continue to develop our growth pipeline through 2030, including new partnerships," added Mr. Hagerty. THIRD QUARTER AND YTD 2025 FINANCIAL HIGHLIGHTS Third quarter 2025 Total Revenue increased 18% year-over-year to $380.0 million, and year-to-date 2025 Total Revenue increased 18% year-over-year to $1,068.3 million Third quarter 2025 Written Premium increased 16% year-over-year to $334.0 million, and year-to-date 2025 Written Premium increased 13% year-over-year to $934.4 million Third quarter 2025 Commission and fee revenue increased 18% year-over-year to $137.1 million, and year-to-date 2025 Commission and fee revenue increased 14% year-over-year to $380.7 million Policies in Force Retention was 88.6% as of September 30, 2025 compared to 88.8% in the prior year period, and total insured vehicles increased 7% year-over-year to 2.7 million Third quarter 2025 Loss Ratio was 42.0% including a 1.1% impact from catastrophe losses, compared to 60.0% in the prior year period which was negatively impacted by Hurricane Helene. Year-to-date 2025 Loss Ratio was 42.1% including a 3.1% impact from catastrophe losses, compared to 47.7% in the prior year period Third quarter 2025 Earned Premium increased 13% year-over-year to $187.0 million, and year-to-date 2025 Earned Premium increased 12% year-over-year to $534.2 million Third quarter 2025 Membership, marketplace and other revenue increased 34% year-over-year to $55.9 million, and year-to-date 2025 Membership, marketplace and other revenue increased 54% year-over-year to $153.4 million Third quarter 2025 Marketplace revenue increased 58% year-over-year to $34.2 million, and year-to-date 2025 Marketplace revenue increased 135% year-over-year to $89.9 million The increase was primarily due to a higher level of inventory sales as well as the addition of European auctions Third quarter 2025 Membership revenue increased 8% year-over-year to $16.0 million, and year-to-date 2025 Membership revenue increased 11% year-over-year to $47.0 million Hagerty Drivers Club (HDC) paid members increased 6% year-over-year to approximately 921,000 compared to 868,000 Third quarter 2025 Operating Income increased 240% year-over-year to $34.3 million, and year-to-date 2025 Operating Income increased 78% year-over-year to $107.7 million Third quarter 2025 Operating Income margin increased by approximately 590 bps, and year-to-date 2025 Operating Income margin increased by approximately 350 bps compared to the prior year periods Year-to-date 2025 General and administrative expenses increased 11.5% due to an increase in professional fees related to the secondary offering and the Markel Fronting Arrangement, as well as software-related costs Year-to-date 2025 Salary and benefits increased 18.8% due to higher accrued incentive compensation reflecting strong performance in 2025 compared to the prior year period when accruals were negatively impacted by Hurricane Helene Third quarter 2025 Depreciation and amortization was $9.4 million compared to $9.2 million in the prior year period, and year-to-date 2025 depreciation and amortization was $27.7 million compared to $29.8 million in the prior year period Third quarter 2025 Net Income increased 143% year-over-year to $46.2 million, and year-to-date 2025 Net Income increased 73% year-over-year to $120.7 million Third quarter 2025 Interest and other income (expense) was $21.0 million of expense, which included a $29.2 million expense related to a change in our tax receivable agreement liability ("TRA") liability and $2.0 million of interest expense, partially offset by $11.5 million in interest and investment income Year-to-date 2025 Interest and other income (expense) was $8.3 million of expense, which included a $32.3 million expense related to a change in our TRA liability and $5.9 million of interest expense, partially offset by $31.1 million in interest and investment income Third quarter 2025 Income tax benefit of $32.8 million, which included the release of a portion of the valuation allowance against our deferred tax assets which decreased taxes by $38.1 million in the quarter. This release was triggered in the third quarter after management concluded that sufficient sources of future taxable income will be generated to realize a portion of our deferred tax assets Third quarter 2025 Adjusted EBITDA (a non-GAAP measure) increased 106% year-over-year to $49.7 million, and year-to-date 2025 Adjusted EBITDA increased 46% year-over-year to $153.1 million Third quarter 2025 Basic and Diluted Earnings Per Share was $0.18 and $0.11, respectively, and year-to-date 2025 Basic and Diluted Earnings Per Share was $0.35 and $0.29, respectively Third quarter 2025 Adjusted Earnings Per Share (a non-GAAP measure) was $0.13, and year-to-date 2025 Adjusted Earnings Per Share was $0.34 The Company ended the quarter with $160.4 million of unrestricted cash and $178.0 million of total debt, $75.0 million of which was back leverage for Broad Arrow Capital's portfolio of loans collateralized by collector cars The definitions and reconciliations of non-GAAP financial measures are provided under the heading Key Performance Indicators and Certain Non-GAAP Financial Measures at the end of this press release. 2025 OUTLOOK - SUSTAINED REVENUE GROWTH AND MARGIN EXPANSION We believe 2025 is on track to be another year of strong profit growth for Hagerty as our team executes on our long-term plan to create value for stakeholders by delivering high rates of compounding revenue growth through investing in our long-term competitive advantages. In 2025, these investments aggregate to $20 million of elevated spend, primarily in our new technology platform, Duck Creek, which we believe will help us more efficiently grow our business over the coming years. We remain focused on growing our Insurance, Membership and Marketplace businesses, positioning us to deliver sustained, compounding profit growth over the coming years, and fund our purpose to save driving and fuel car culture for future generations. For full year 2025, Hagerty anticipates: Written Premium growth of 13-14% Total Revenue growth of 14-15% Net Income growth of 58-65% Adjusted EBITDA growth of 37-41% Prior 2025 Outlook1 ($) Revised 2025 Outlook ($) in thousands 2024 Results Low End High End Low End High End Total Written Premium $1,044,492 $1,180,000 $1,191,000 $1,180,000 $1,191,000 Total Revenue $1,200,038 $1,356,000 $1,368,000 $1,368,000 $1,380,000 Net Income2, 4, 5 $78,303 $112,000 $120,000 $124,000 $129,000 Adjusted EBITDA3, 4 $124,473 $162,000 $172,000 $170,000 $176,000 1 Prior 2025 Outlook shared on the Company's second quarter earnings call on August 4th, 2025. 2 Fully diluted share count of approximately 361 million shares including Class A Common Stock, Class V Common Stock, Series A Convertible Preferred Stock, and share-based compensation awards. 3 See Non-GAAP Financial Measures below for additional information regarding this non-GAAP financial measure. 4 Profit ranges incorporate $20 million of elevated technology investments in 2025, as well as approximately $10 million pre-tax impact from the Southern California wildfires. 5 Full year 2025 net income includes $5.8 million of net benefit as a result of the release of a portion of our valuation allowance of $38.1 million partially offset by a $32.3 million loss related to the change in value of the TRA liability. Conference Call Details Hagerty will hold a conference call to discuss the financial results on Tuesday, November 4, 2025 10:00 am Eastern Time. A webcast of the conference call, including its Investor Presentation highlighting third quarter 2025 financial results, will be available on Hagerty's investor relations website at investor.hagerty.com. The dial-in for the conference call is (877) 423-9813 (toll-free) or (201) 689-8573 (international). Please dial the number 10 minutes prior to the scheduled start time. A webcast replay of the call will be available at investor.hagerty.com following the call. Forward-Looking Statements This press release contains statements that constitute "forward-looking statements" within the meaning of the federal securities laws. All statements provided, other than statements of historical fact, are forward-looking statements, including those regarding Hagerty's future operating results and financial position, Hagerty's business strategy and plans, products, services, and technology implementations, market conditions, growth and trends, expansion plans and opportunities, and Hagerty's objectives for future operations. The words "anticipate," "believe," "envision," "estimate," "expect," "intend," "may," "plan," "predict," "project," "target," "potential," "will," "would," "could," "should," "continue," "ongoing," "contemplate," and similar expressions, and the negative of these expressions, are intended to identify forward-looking statements. Hagerty has based these forward-looking statements largely on current expectations about future events, which may not materialize. Actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. These factors include, among other things, Hagerty's ability to: (i) compete effectively and to attract, retain and engage insurance policyholders and paid Hagerty Drivers Club ("HDC") members; (ii) Hagerty's reliance on key strategic relationships, including distribution partners and underwriting carrier partners, and our ability to enter into, implement, and realize the anticipated benefits of the proposed Fronting Arrangement with Markel; (iii) the performance and availability of reinsurance and fronting capacity, and the timing and terms of renewals; (iv) execution risks associated with technology initiatives, including implementation, and migration to the Duck Creek policy administration platform, and risks of disruptions, interruptions, outages, cybersecurity events, or other issues with Hagerty's technology systems or third‑party service providers; (v) macroeconomic and industry conditions, including inflation, interest rate movements, capital market volatility, consumer sentiment, and the cyclicality of collector and enthusiast vehicle prices and transaction volumes; (vi) risks associated with Hagerty's Marketplace and Broad Arrow Capital businesses, including inventory and credit risk, financing availability and cost, and the potential for write‑downs; (vii) catastrophe, weather and other losses, including increases in the frequency or severity of claims; (viii) Hagerty's ability to obtain and implement rate changes and other regulatory approvals on a timely basis, and (ix) the impact of evolving laws and regulations applicable to Hagerty's business in the United States and internationally. The forward-looking statements herein represent the judgment of Hagerty as of the date of this release and Hagerty disclaims any intent or obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise. This press release should be read in conjunction with the information included in Hagerty's other press releases, reports and other filings with the Securities and Exchange Commission. Understanding the information contained in these filings is important in order to fully understand Hagerty's reported financial results and its business outlook for future periods. About Hagerty, Inc. (NYSE: HGTY) Hagerty is an automotive enthusiast brand committed to saving driving and to fueling car culture for future generations. The company is a leading provider of specialty vehicle insurance, expert car valuation data and insights, live and digital car auction services, immersive events and automotive entertainment custom made for the 67 million Americans who self-describe as car enthusiasts. Hagerty also operates in Canada and the U.K. and is home to Hagerty Drivers Club, a community of over 920,000 who can't get enough of cars. For more information, please visit www.hagerty.com or connect with us on Facebook, Instagram, Twitter and LinkedIn. More information can be found at newsroom.hagerty.com. Category: Financial Source: Hagerty Hagerty, Inc. Condensed Consolidated Statements of Operations (Unaudited) Three months ended September 30, 2025 2024 $ Change % Change REVENUE: in thousands (except percentages and per share amounts) Commission and fee revenue $ 137,103 $ 116,161 $ 20,942 18.0 % Earned premium, net 187,039 165,686 21,353 12.9 % Membership, marketplace and other revenue 55,852 41,527 14,325 34.5 % Total revenue 379,994 323,374 56,620 17.5 % OPERATING EXPENSES: Salaries and benefits 68,110 47,192 20,918 44.3 % Ceding commissions, net 87,411 77,501 9,910 12.8 % Losses and loss adjustment expenses 78,626 99,430 (20,804) (20.9) % Sales expense 77,672 59,141 18,531 31.3 % General and administrative expenses 24,445 20,837 3,608 17.3 % Depreciation and amortization 9,413 9,184 229 2.5 % Total operating expenses 345,677 313,285 32,392 10.3 % OPERATING INCOME 34,317 10,089 24,228 240.1 % Loss related to warrant liabilities, net — (463) 463 N/M Interest and other income (expense), net 1 (20,980) 8,359 (29,339) N/M INCOME BEFORE TAXES 13,337 17,985 (4,648) (25.8) % Income tax benefit 2 32,834 1,022 31,812 N/M NET INCOME 46,171 19,007 27,164 142.9 % Net income attributable to non-controlling interest (25,323) (14,122) 11,201 79.3 % Accretion of Series A Convertible Preferred Stock (1,903) (1,875) 28 1.5 % NET INCOME ATTRIBUTABLE TO CLASS A COMMON STOCKHOLDERS $ 18,945 $ 3,010 $ 15,935 529.4 % Earnings per share of Class A Common Stock: Basic $ 0.18 $ 0.03 Diluted $ 0.11 $ 0.03 Weighted average shares of Class A Common Stock outstanding: Basic 96,167 89,691 Diluted 347,240 89,691 N/M = Not meaningful 1 Includes a $29.2 million loss related to changes in the value of the TRA liability. 2 Includes $38.1 million gain related to the release of a portion of the valuation allowance. Hagerty, Inc. Condensed Consolidated Statements of Operations (Unaudited) Nine months ended September 30, 2025 2024 $ Change % Change REVENUE: in thousands (except percentages and per share amounts) Commission and fee revenue $ 380,677 $ 333,817 $ 46,860 14.0 % Earned premium, net 534,179 474,917 59,262 12.5 % Membership, marketplace and other revenue 153,430 99,573 53,857 54.1 % Total revenue 1,068,286 908,307 159,979 17.6 % OPERATING EXPENSES: Salaries and benefits 191,275 161,001 30,274 18.8 % Ceding commissions, net 247,682 221,877 25,805 11.6 % Losses and loss adjustment expenses 224,969 226,515 (1,546) (0.7) % Sales expense 199,678 146,791 52,887 36.0 % General and administrative expenses 69,204 62,072 7,132 11.5 % Depreciation and amortization 27,734 29,758 (2,024) (6.8) % Gain related to divestiture — (87) 87 N/M Total operating expenses 960,542 847,927 112,615 13.3 % OPERATING INCOME 107,744 60,380 47,364 78.4 % Loss related to warrant liabilities, net — (8,544) 8,544 N/M Interest and other income (expense), net 1 (8,262) 27,945 (36,207) (129.6) % INCOME BEFORE TAXES 99,482 79,781 19,701 24.7 % Income tax (expense) benefit 2 21,184 (9,918) 31,102 N/M NET INCOME 120,666 69,863 50,803 72.7 % Net income attributable to non-controlling interest (80,474) (55,951) 24,523 43.8 % Accretion of Series A Convertible Preferred Stock (5,653) (5,552) 101 1.8 % NET INCOME ATTRIBUTABLE TO CLASS A COMMON STOCKHOLDERS $ 34,539 $ 8,360 $ 26,179 313.1 % Earnings per share of Class A Common Stock: Basic $ 0.35 $ 0.09 Diluted $ 0.29 $ 0.09 Weighted average shares of Class A Common Stock outstanding: Basic 92,326 86,689 Diluted 346,672 87,601 N/M = Not meaningful 1 Includes a $32.3 million loss related to changes in the value of the TRA liability. 2 Includes $38.1 million gain related to the release of a portion of the valuation allowance. Hagerty, Inc. Condensed Consolidated Balance Sheets (Unaudited) September 30, December 31, 2025 2024 ASSETS in thousands (except share amounts) Current Assets: Cash and cash equivalents $ 160,386 $ 104,784 Restricted cash and cash equivalents 172,261 128,061 Investments 130,147 73,957 Accounts receivable 107,476 84,763 Premiums receivable 230,919 153,748 Commissions receivable 27,404 20,430 Notes receivable 94,158 45,417 Deferred acquisition costs, net 192,496 156,466 Other current assets 99,073 90,779 Total current assets 1,214,320 858,405 Investments 543,772 515,570 Notes receivable 17,807 11,555 Lease right-of-use assets 42,229 44,485 Intangible assets, net 88,452 90,107 Goodwill 114,150 114,123 Deferred tax assets 45,265 — Other long-term assets 85,960 75,093 TOTAL ASSETS $ 2,151,955 $ 1,709,338 LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable, accrued expenses and other current liabilities $ 147,868 $ 104,496 Current portion of long-term debt 73,118 792 Losses payable and provision for unpaid losses and loss adjustment expenses 276,678 266,878 Ceding commissions payable 107,473 77,389 Advance premiums and due to insurers 171,616 108,352 Unearned premiums 439,395 357,539 Total current liabilities 1,216,148 915,446 Long-term lease liabilities 40,511 43,178 Long-term debt, net 104,386 104,968 Deferred tax liability 24,185 18,065 Tax receivable agreement liability 37,913 1,956 Other long-term liabilities 14,021 17,556 TOTAL LIABILITIES 1,437,164 1,101,169 Commitments and Contingencies — — TEMPORARY EQUITY 1 Preferred stock, $0.0001 par value (20,000,000 shares authorized, 8,483,561 Series A Convertible Preferred Stock issued and outstanding as of September 30, 2025 and December 31, 2024) 84,716 84,663 STOCKHOLDERS' EQUITY Class A Common Stock, $0.0001 par value (500,000,000 shares authorized, 100,426,473 and 90,032,391 issued and outstanding as of September 30, 2025 and December 31, 2024, respectively) 10 9 Class V Common Stock, $0.0001 par value (300,000,000 authorized, 241,552,156 and 251,033,906 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively) 24 25 Additional paid-in capital 622,405 603,780 Accumulated earnings (deficit) (411,786) (451,978) Accumulated other comprehensive income (loss) 998 (1,514) Total stockholders' equity 211,651 150,322 Non-controlling interest 418,424 373,184 Total equity 630,075 523,506 TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY $ 2,151,955 $ 1,709,338 1 The Series A Convertible Preferred Stock is recorded within Temporary Equity because it has equity conversion and cash redemption features. Hagerty, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) Nine months ended September 30, 2025 2024 OPERATING ACTIVITIES: in thousands Net income $ 120,666 $ 69,863 Adjustments to reconcile net income to net cash from operating activities: Loss on disposals of equipment, software and other assets 1,440 401 Loss related to warrant liabilities, net — 8,544 Expense related to tax receivable agreement liability 32,275 1,322 Depreciation and amortization 27,734 29,758 Provision for deferred taxes (34,413) 2,772 Share-based compensation expense 14,627 13,018 Non-cash lease expense 6,590 5,920 Realized (gain) loss on investments, net (2,150) (1,783) (Accretion) amortization of discount and premium, net (3,489) (1,755) Other 1,681 1,775 Changes in operating assets and liabilities: Accounts, premiums and commissions receivable (124,250) (28,062) Deferred acquisition costs, net (36,030) (26,998) Losses payable and provision for unpaid losses and loss adjustment expenses 9,800 60,328 Ceding commissions payable 30,084 (14,734) Advance premiums and due to insurers 62,583 48,752 Unearned premiums 81,855 68,344 Operating lease assets and liabilities (6,876) (6,781) Other assets and liabilities, net 7,758 (41,042) Net Cash Provided by Operating Activities 189,885 189,642 INVESTING ACTIVITIES: Capital expenditures (18,499) (17,278) Acquisitions, net of cash acquired, and other investments (2,125) (23,865) Issuance of notes receivable (49,095) (55,030) Collection of notes receivable 14,832 32,099 Purchases of fixed maturity securities (223,055) (565,838) Proceeds from sales of fixed maturity securities 41,173 53,253 Proceeds from maturities of fixed maturity securities 122,196 23,766 Purchases of equity securities (10,565) (10,602) Proceeds from sales of equity securities 911 — Other investing activities 1,421 1,005 Net Cash Used in Investing Activities (122,806) (562,490) FINANCING ACTIVITIES: Payments on long-term debt (170,673) (63,202) Proceeds from long-term debt, net of issuance costs 240,701 52,718 Distributions paid to non-controlling interest unit holders (30,547) (5,320) Payment of Series A Convertible Preferred Stock dividends (5,600) (5,600) Funding of tax receivable agreement payments (223) — Funding of employee tax obligations upon vesting of share-based payments (3,536) (5,713) Other financing activities 289 — Net Cash Provided by (Used in) Financing Activities 30,411 (27,117) Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents 2,312 (882) Change in cash and cash equivalents and restricted cash and cash equivalents 99,802 (400,847) Beginning cash and cash equivalents and restricted cash and cash equivalents 232,845 724,276 Ending cash and cash equivalents and restricted cash and cash equivalents $ 332,647 $ 323,429 Hagerty, Inc. Key Performance Indicators and Certain Non-GAAP Financial Measures Key Performance Indicators The tables below present a summary of our Key Performance Indicators, which include important operational metrics, as well as certain financial measures prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and non-GAAP financial measures. We use these Key Performance Indicators to evaluate our business, measure our performance, identify trends against planned initiatives, prepare financial projections, and make strategic decisions. We believe these Key Performance Indicators are useful in evaluating our performance when read together with our Condensed Consolidated Financial Statements prepared in accordance with GAAP. Three months ended September 30, 2025 2024 Change Operational Metrics dollars in thousands (except per share amounts) Total Written Premium $ 334,048 $ 287,609 $ 46,439 16.1 % Hagerty Re Loss Ratio 42.0 % 60.0 % (18.0) % N/M Hagerty Re Combined Ratio 89.6 % 107.7 % (18.1) % N/M New Business Count — Insurance 114,513 77,418 37,095 47.9 % GAAP Financial Measures Total Revenue $ 379,994 $ 323,374 $ 56,620 17.5 % Operating Income $ 34,317 $ 10,089 $ 24,228 240.1 % Net Income $ 46,171 $ 19,007 $ 27,164 142.9 % Basic Earnings Per Share $ 0.18 $ 0.03 $ 0.15 N/M Diluted Earnings Per Share $ 0.11 $ 0.03 $ 0.08 N/M Non-GAAP Financial Measures Adjusted EBITDA $ 49,714 $ 24,165 $ 25,549 105.7 % Adjusted Earnings Per Share $ 0.13 $ 0.05 $ 0.08 160.0 % Nine months ended September 30, 2025 2024 Change Operational Metrics dollars in thousands (except per share amounts) Total Written Premium $ 934,360 $ 827,068 $ 107,292 13.0 % Hagerty Re Loss Ratio 42.1 % 47.7 % (5.6) % N/M Hagerty Re Combined Ratio 89.3 % 95.1 % (5.8) % N/M New Business Count — Insurance 257,694 225,753 31,941 14.1 % GAAP Financial Measures Total Revenue $ 1,068,286 $ 908,307 $ 159,979 17.6 % Operating Income $ 107,744 $ 60,380 $ 47,364 78.4 % Net Income $ 120,666 $ 69,863 $ 50,803 72.7 % Basic Earnings Per Share $ 0.35 $ 0.09 $ 0.26 N/M Diluted Earnings Per Share $ 0.29 $ 0.09 $ 0.20 N/M Non-GAAP Financial Measures Adjusted EBITDA $ 153,066 $ 104,605 $ 48,461 46.3 % Adjusted Earnings Per Share $ 0.34 $ 0.22 $ 0.12 54.5 % September 30, December 31, 2025 2024 Change Operational Metrics Policies in Force 1,617,231 1,506,451 110,780 7.4 % Policies in Force Retention 88.6 % 89.0 % (0.4) % N/M Vehicles in Force 2,739,037 2,576,700 162,337 6.3 % HDC Paid Member Count 920,725 875,822 44,903 5.1 % Net Promoter Score (NPS) 82 82 — — % Non-GAAP Financial Measures Adjusted EBITDA We define Adjusted EBITDA as consolidated Net income, excluding net interest and other income (expense), income tax expense, and depreciation and amortization, further adjusted to exclude (i) net gains and losses related to our warrant liabilities prior to the warrant exchange transaction that closed in July 2024 (the "Warrant Exchange"); (ii) share-based compensation expense; and when applicable, (iii) restructuring, impairment and related charges; (iv) gains, losses and impairments related to divestitures; and (v) certain other unusual items. We present Adjusted EBITDA because we consider it to be an important supplemental measure of our performance and believe it is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. Management uses Adjusted EBITDA as a measure of the operating performance of our business on a consistent basis, as it removes the impact of items not directly resulting from our core operations. By providing this non-GAAP financial measure, together with a reconciliation to Net income, which is the most comparable GAAP measure, we believe we are enhancing investors' understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. However, Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation, or as an alternative to, or a substitute for Net income or other financial statement data presented in our Condensed Consolidated Financial Statements as indicators of financial performance. Our definition of Adjusted EBITDA may be different than similarly titled measures used by other companies in our industry, which could reduce the usefulness of this non-GAAP financial measure when comparing our performance to that of other companies. The following table reconciles Adjusted EBITDA to the most directly comparable GAAP measure, which is Net income: Three months endedSeptember 30, Nine months endedSeptember 30, 2025 2024 2025 2024 in thousands Net income $ 46,171 $ 19,007 $ 120,666 $ 69,863 Interest and other (income) expense, net 1, 2 20,980 (8,359) 8,262 (27,945) Income tax expense (benefit) 3 (32,834) (1,022) (21,184) 9,918 Depreciation and amortization 9,413 9,184 27,734 29,758 EBITDA 43,730 18,810 135,478 81,594 Loss related to warrant liabilities, net — 463 — 8,544 Share-based compensation expense 5,089 4,092 14,627 13,018 Gain related to divestiture — — — (87) Other unusual items 4 895 800 2,961 1,536 Adjusted EBITDA $ 49,714 $ 24,165 $ 153,066 $ 104,605 1 Excludes interest expense related to the BAC Credit Facility, which is recorded within "Sales expense" in the Condensed Consolidated Statements of Operations. 2 Principally includes interest income, net investment income related to our investment portfolio, and interest expense, as well as changes in the value of the TRA liability, which totaled $29.2 million and $32.3 million during the three and nine months ended September 30, 2025, respectively, and $1.3 million during the three and nine months ended September 30, 2024. 3 Income tax expense (benefit) for the three and nine months ended September 30, 2025 includes a $38.1 million benefit related to the release of a portion of the valuation allowance against our deferred tax assets. 4 For the three and nine months ended September 30, 2025, other unusual items includes certain legal settlement expenses, professional fees associated with the THG Unit Exchange and related secondary offering, and certain material severance expenses. For the three and nine months ended September 30, 2024, other unusual items includes professional fees associated with the Warrant Exchange. The following table reconciles Adjusted EBITDA for the year ended December 31, 2025 Outlook to the most directly comparable GAAP measure, which is Net income: 2025 Low 2025 High in thousands Net income $ 124,000 $ 129,000 Interest and other (income) expense, net 1, 2 — — Income tax expense (benefit) 3 (13,000) (12,000) Depreciation and amortization 39,000 39,000 Share-based compensation expense 20,000 20,000 Adjusted EBITDA $ 170,000 $ 176,000 1 Excludes interest expense related to the BAC Credit Facility, which is recorded within "Sales expense" in the Condensed Consolidated Statements of Operations. 2 Principally includes interest income, net investment income related to our investment portfolio, and interest expense, as well as changes in the value of the TRA liability ($32.3 million of expense incurred through the third quarter of 2025). 3 Income tax expense (benefit) includes $38.1 million benefit related to the release of a portion of the valuation allowance against our deferred tax assets. Adjusted EPS We define Adjusted Earnings Per Share ("Adjusted EPS") as consolidated Net income, excluding net gains and losses related to our warrant liabilities prior to the Warrant Exchange, divided by our outstanding and total potentially dilutive securities, which includes (i) the weighted average issued and outstanding shares of Class A Common Stock; (ii) all issued and outstanding non-controlling interest units of THG; (iii) all issued and outstanding shares of our Series A Convertible Preferred Stock on an as-converted basis; and (iv) all unissued share-based compensation awards. The most directly comparable GAAP measure to Adjusted EPS is basic earnings per share ("Basic EPS"), which is calculated as Net income available to Class A Common Stockholders divided by the weighted average number of Class A Common Stock shares outstanding during the period. We present Adjusted EPS because we consider it to be an important supplemental measure of our operating performance and believe it is used by securities analysts, investors and other interested parties in evaluating the consolidated performance of other companies in our industry. We also believe that Adjusted EPS, which compares our consolidated Net income with our weighted average number of Class A Common Stock shares outstanding and potentially dilutive shares, provides useful information to investors regarding our performance on a consolidated and diluted basis. Management uses Adjusted EPS (i) as a measure of the operating performance of our business on a consolidated and diluted basis; (ii) to evaluate the performance and effectiveness of our operational strategies; and (iii) as a preferred predictor of core operating performance, comparisons to prior periods and competitive positioning. We caution investors that Adjusted EPS is not a recognized measure under GAAP and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, including Basic EPS, and that Adjusted EPS, as we define it, may be defined or calculated differently by other companies. In addition, Adjusted EPS has limitations as an analytical tool and should not be considered as a measure of profit or loss per share. The following table reconciles Adjusted EPS to the most directly comparable GAAP measure, which is Basic EPS: Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 in thousands (except per share amounts) Numerator: Net income available to Class A Common Stockholders 1 $ 17,696 $ 2,798 $ 32,174 $ 7,753 Accretion of Series A Convertible Preferred Stock 1,903 1,875 5,653 5,552 Undistributed earnings allocated to Series A Convertible Preferred Stock 1,249 212 2,365 607 Net income attributable to non-controlling interest 25,323 14,122 80,474 55,951 Consolidated net income 46,171 19,007 120,666 69,863 Loss related to warrant liabilities, net — 463 — 8,544 Adjusted consolidated net income 2 $ 46,171 $ 19,470 $ 120,666 $ 78,407 Denominator: Weighted average shares of Class A Common Stock outstanding 1 96,167 89,691 92,326 86,689 Total potentially dilutive securities outstanding: Non-controlling interest THG units 245,616 255,178 245,616 255,178 Series A Convertible Preferred Stock, on an as-converted basis 6,785 6,785 6,785 6,785 Total unissued share-based compensation awards 8,374 8,076 8,374 8,076 Potentially dilutive shares outstanding 260,775 270,039 260,775 270,039 Dilutive shares outstanding 2 356,942 359,730 353,101 356,728 Basic EPS 1 $ 0.18 $ 0.03 $ 0.35 $ 0.09 Adjusted EPS 2 $ 0.13 $ 0.05 $ 0.34 $ 0.22 1 Numerator and Denominator of the GAAP measure Basic EPS 2 Numerator and Denominator of the non-GAAP measure Adjusted EPS SOURCE Hagerty

Hagerty Reports Third Quarter 2025 Results; Increases 2025 Outlook

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