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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

May 7, 2025
Date of Report (date of earliest event reported)

HAGERTY, INC.
(Exact name of registrant as specified in its charter)
Delaware
001-40244
86-1213144
(State or other jurisdiction of incorporation or organization)
(Commission File Number)
(I.R.S. Employer
Identification No.)

121 Drivers Edge
Traverse City, Michigan 49684
(Address of principal executive offices and zip code)

(800) 922-4050
Registrant's telephone number, including area code

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolsName of each exchange on which registered
Class A common stock, par value $0.0001 per shareHGTYThe New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



ITEM 2.02     Results of Operations and Financial Condition

On May 7, 2025, Hagerty, Inc. (the "Company") announced its financial results for the fiscal quarter ended March 31, 2025 by issuing a letter to its stockholders and a press release. The Company will also be holding a conference call on May 7, 2025 to discuss its financial results for the three months ended March 31, 2025. The full text of the Company's letter to its stockholders and press release are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively.

ITEM 7.01    Regulation FD Disclosure

On May 7, 2025, the Company posted to the investor relations page of its website an investor presentation expected to be used by the Company in connection with certain future presentations to investors and others. A copy of the investor presentation is attached as Exhibit 99.3 to this Current Report on Form 8-K.

The Company uses its investor relations website as a means of disclosing material non-public information, announcing upcoming investor conferences and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor the Company's investor relations website in addition to following its press releases, SEC filings and public conference calls and webcasts.

The information contained in Item 2.02 and Item 7.01 of this Current Report on Form 8-K, including Exhibits 99.1, 99.2 and 99.3, shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit No.Description
99.1
99.2
99.3
104Cover Page Interactive Data File (formatted as Inline XBRL)


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


HAGERTY, INC.
/s/ Diana M. Chafey
Date: May 7, 2025
Diana M. Chafey
Chief Legal Officer

Stockholder Letter Q1 2025

 
HAGERTY Q1 2025 | 2 Spring is upon us, and with it comes the joyful sound of classic engines roaring to life after a long winter’s rest. As enthusiasts across the country begin planning their first drives of the season, it seems the perfect time to discuss Hagerty’s business model and how it is built to thrive whether the economic weather is sunny, rainy, or somewhere in between. First and most important, Hagerty is a U.S.- centric specialty insurer with approximately 95% of our revenue generated in the United States. We have a track record as a stable, predictable, high-growth company, that collects premiums up front and pays out claims at a later date, thereby producing the possibility of profits from the margin earned and investment income. It’s a good gig when you have built an excellent brand that enables you to grow written premium without compromising the quality of your underwriting. As Warren Buffett has said, insurance is one of the few businesses where “somebody hands you money, and you hand them a little piece of paper.” No wonder then, that he describes insurance as “the engine that has propelled Berkshire’s expansion since 1967.” Built for the Long Haul Insurance is also recession resistant. In Hagerty’s case, we begin each year with roughly 90% of our revenues locked in thanks to our industry-leading retention. This recurring revenue is a distinct advantage for us and allows us to grow through good times and bad, as does the fact that our primary product – insurance – isn’t optional. For classic car owners to legally operate their beloved vehicles, they need auto insurance. It’s as simple as that. And when they drive, they drive fewer miles than their “daily drivers.” They are also less likely to get in an accident or file a claim. Why? Because, as my mother Louise Hagerty used to say, “People take care of their toys.” Dear Hagerty Stockholders, Members and One Team Hagerty, Stockholder Letter THE POWER OF PARTNERSHIPS ON THE COVER: Three Lamborghini Countaches. From the top: The 1975 LP400 “Periscopio,” 1988 25th Anniversary, and 1988 5000QV. PHOTOGRAPHER: JAMES LIPMAN

 
HAGERTY Q1 2025 | 3 The chart on the left highlights the consistent, sustained growth in written premiums over the last 20 years. While growth decelerated during the financial crisis of 2007-2010 from our historical double-digit levels, we still delivered high single-digit gains. The chart on the right highlights the beauty of compounding high rates of growth on top of prior years’ growth. Partnering With the Best Hagerty’s direct-to-consumer business is a major contributor to both our overall growth as well as our excellent Net Promoter Score of 82. And partnerships represent another important driver of our double-digit growth over the last 20 years, which I want to explain in greater detail today. We currently collaborate with nine of the top 10 automotive insurers in the U.S. We also partner with many companies outside the top 10, including April’s launch of a new collector car program in Illinois and Michigan with another respected insurance group. The new product, powered by Hagerty, combines the total account protection that they are well known for, with Hagerty’s expertise in collector vehicle claims and valuation services. Together, our companies are continuing Hagerty’s mission of saving driving and protecting the cars that 67 million people in the U.S. cherish. If you are one of our existing investors, you know that our newest major partnership represents a massive opportunity for Hagerty to scale up our company. By the end of 2025, the State Farm Classic Plus program will be live in half of the U.S. states, with the majority following in 2026. It is an exciting prospect. When all is said and done, we will add roughly 525,000 policies to our book of business, one- third as many as our current policy count. In anticipation of this influx, we have spent the last several years upgrading our technology infrastructure to ensure that we give these new members the same kind of efficient, personal and seamless experience that has earned Hagerty such an amazing Net Promoter Score and sterling reputation as a Managing General Agent. This expansion isn’t just about numbers— it’s about creating more passionate car enthusiasts who can experience the joy of driving and preserving automotive heritage. I was reminded of this recently when I took my ‘67 Porsche 911S out for the first spring drive. As I navigated the winding roads near Traverse City, I couldn’t help but think about how many new members will soon experience that same sense of community and belonging that comes with being part of the Hagerty family. 0 100 200 300 400 500 600 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 20242005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0% 10% 20% 30% To ta l P er ce nt ag e G ro w th Hagerty U.S. Auto CAGR 15% Industry Top 100 CAGR 6% U.S. Written Premium Growth (2005-2024) 7-8% annual growth during GFC Hagerty U.S. Auto Written Premium Growth vs. Industry Top 100

 
HAGERTY Q1 2025 | 4 Why Hagerty? You have many options when it comes to your investments, just as our partners have plenty of choices about who they partner with. Why choose Hagerty? Because we have carefully curated our reputation as the insurance company for people who love their cars. We love them, too! We have built a reputation as the experts on classic car claims and valuation data. We boast decades of pricing data and loss ratio analysis for 40,000 different types of collector cars, trucks, vans and motorcycles from the pre-war era to modern classics. Data and expertise are vital to our success. You cannot, for instance, just plop any old windshield back into a ‘66 Jaguar. It’s not a $500 repair...more likely than not, it’s going to cost somewhere between $5,000 and $15,000. You have to have a specialty source for parts, and it takes a lot of time, energy and care to put that windshield in. Those are the kinds of claims that regular insurance companies struggle with, but that is what we do every day. And it is why companies ultimately partner with us: We make life easier for them and their customers. The Halo Effect Our incredible claims and member service experts also create a halo effect for our partners. When customers are treated well, they remember it in the context of both their primary insurance company for home and daily drivers, as well as Hagerty. Insurance company executives really, really like that because it helps them retain customers, and as we all know retention is critical to driving profitability. Our laser focus on customers, brand, members and team are the main reasons Hagerty has posted nine straight quarters of profitable growth. As we grow larger, we are becoming more and more efficient, which allows us to reinvest back into our business to lengthen our leadership position in the classic car and enthusiast markets and attract new members and partners to the Hagerty ecosystem. High rates of visible profit growth in a defensive industry sounds like a winning proposition for investors, and we are hard at work to ensure this continues in the years to come. As I have mentioned before, we believe Hagerty’s growth potential is vast. There are an estimated $1 trillion worth of collectible vehicles in the U.S. and we currently have 1.5 million policies in force today. Meaning the sky’s the limit. By 2030, we expect to double our policies in force to 3 million. We believe this expansion of our customer base will encourage discussions with other partners to both broaden and deepen our relationships with them. In addition, we hope that many of these new members will also join our Hagerty Drivers Club (HDC), creating a compounding economic benefit for us. Currently, HDC has 890,000 members who pay $70 (just $6 a month) a year to belong. We are glad you are on this road trip with us. And, as always, I want to take this opportunity to say thank you to One Team Hagerty for their incredible work. We wouldn’t exist without you and your talents. Until next time, keep on driving. McKeel Hagerty CEO and Chairman, Hagerty

 

 
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For Immediate Release

Hagerty Reports First Quarter 2025 Results
Reaffirms 2025 Outlook for Revenue and Profit Growth

•First quarter 2025 Total Revenue increased 18% year-over-year to $319.6 million
•First quarter 2025 Written Premium increased 12% year-over-year to $244.3 million
•First quarter 2025 Marketplace revenue increased 176% year-over-year to $29.0 million
•First quarter 2025 Operating Income increased 110% year-over-year to $25.7 million
◦First quarter 2025 Operating Income margin increased by 360 bps compared to the prior year period
•First quarter 2025 Net Income increased 233% year-over-year to $27.3 million
•First quarter 2025 Adjusted EBITDA increased 45% year-over-year to $39.6 million
•Reaffirmed 2025 Outlook for 12-13% Total Revenue growth, 30-40% Net Income growth and 21-29% Adjusted EBITDA growth

TRAVERSE CITY, Michigan, May 7, 2025 /PRNewswire/ – Hagerty, Inc. (NYSE: HGTY), an automotive enthusiast brand and leading specialty vehicle insurance provider, announced today financial results for the three months ended March 31, 2025.
“We are off to a solid start to 2025, with first quarter revenue growth of 18%, net income growth of 233%, and Adjusted EBITDA growth of 45%. We expanded our margins and are making substantial technology investments to become even more efficient in how we deliver on our brand promise to members over the coming years,” said McKeel Hagerty, Chief Executive Officer and Chairman of Hagerty.

“Hagerty enjoys the enviable position of operating in an industry that has historically performed well regardless of the economic cycle. Our industry-leading retention delivers visible revenue streams that are augmented by consistently high rates of new member growth thanks to the strength of the Hagerty brand and value proposition. Our strategic priorities enable us to acquire new customers and service existing ones more efficiently than ever, and we are well-positioned for accelerating growth as we move into 2026,” continued Mr. Hagerty.

“Our business momentum and first quarter results keep us on track to deliver 12-13% total revenue growth in 2025 as we help car enthusiasts protect, buy and sell, and enjoy their special vehicles. Operating margin expansion should drive even faster rates of bottom-line growth, with net income expected to increase by 30-40% compared to 2024,” added Mr. Hagerty.


1
hagerty2.jpg
FIRST QUARTER 2025 FINANCIAL HIGHLIGHTS

•First quarter 2025 Total Revenue increased 18% year-over-year to $319.6 million
•First quarter 2025 Written Premium increased 12% year-over-year to $244.3 million
•First quarter 2025 Commission and fee revenue increased 13% year-over-year to $100.3 million
•Policies in Force Retention was 89.0% as of March 31, 2025 compared to 88.7% in the prior year period, and total insured vehicles increased 8% year-over-year to 2.6 million
•First quarter 2025 Loss Ratio was 42.0% including 6.7% of impact from catastrophe losses (including approximately $10.4 million in pre-tax losses from the Southern California wildfires), compared to 41.1% in the prior year period
•First quarter 2025 Earned Premium increased 12% year-over-year to $169.4 million
•First quarter 2025 Membership, marketplace and other revenue increased 60% year-over-year to $50.0 million
•First quarter 2025 Marketplace revenue increased 176% year-over-year to $29.0 million
◦The increase was primarily due to a higher level of inventory sales, including cars sold in February 2025 from the Academy of Art University Collection
•First quarter 2025 Membership revenue increased 14% year-over-year to $15.3 million
◦Hagerty Drivers Club (HDC) paid members increased 7% year-over-year to approximately 889,000 compared to 831,000
•First quarter 2025 Operating Income of $25.7 million, an increase of $13.5 million compared to the prior year period
•First quarter 2025 Operating Income margin increased by 360 bps compared to the prior year period
◦General and administrative expenses increased 11.7% due primarily to an increase in software-related costs, and Salary and benefits increased 5.3%
•First quarter 2025 depreciation and amortization was $9.5 million compared to $10.6 million in the prior year period
•First quarter 2025 Net Income of $27.3 million, an increase of $19.1 million compared to the prior year period
•First quarter 2025 Net Income includes $7.1 million in interest and other income
•First quarter 2025 Adjusted EBITDA (a non-GAAP measure) of $39.6 million, an increase of $12.3 million compared to the prior year period
•First quarter 2025 Basic and Diluted Earnings per Share was $0.07
•First quarter 2025 Adjusted EPS (a non-GAAP measure) was $0.08

•We ended the quarter with $128 million of cash and $147 million of total debt, $32 million of which is back leverage for Broad Arrow Capital’s portfolio of loans collateralized by collector cars
•We increased the borrowing capacity under our unsecured credit facility to $375 million with lower borrowing costs and a March 2030 maturity

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.


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2025 OUTLOOK - SUSTAINED GROWTH AND PROFITABILITY
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. Duck Creek will help us 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 12-13%
◦Net Income growth of 30-40%
◦Adjusted EBITDA growth of 21-29%
▪Profit ranges incorporate $20 million of elevated technology investments in 2025, as well as an estimated $10 million pre-tax impact from the Southern California wildfires
2025 Outlook ($)2025 Outlook (%)
in thousands2024 ResultsLow EndHigh EndLow EndHigh End
Total Written Premium$1,044,492$1,180,000$1,191,00013%14%
Total Revenue$1,200,038$1,344,000$1,356,00012%13%
Net Income 1
$78,303$102,000$110,00030%40%
Adjusted EBITDA 2
$124,473$150,000$160,00021%29%
1    Fully diluted share count of approximately 360 million shares including Class A Common Stock, Class V Common Stock, Series A Convertible Preferred Stock, and share-based compensation awards.
2    See Non-GAAP Financial Measures below for additional information regarding this non-GAAP financial measure.



3

Conference Call Details

Hagerty will hold a conference call to discuss the financial results today at 10:00 am Eastern Time. A webcast of the conference call, including its Investor Presentation highlighting first 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 within our industry and attract and retain our insurance policyholders and paid Hagerty Drivers Club ("HDC") subscribers; (ii) maintain key strategic relationships with our insurance distribution and underwriting carrier partners; (iii) prevent, monitor, and detect fraudulent activity; (iv) manage risks associated with disruptions, interruptions, outages or other issues with our technology platforms or our use of third-party services; (v) accelerate the adoption of our membership and marketplace products and services, as well as any new insurance programs and products we offer; (vi) manage the cyclical nature of the insurance business, including through any periods of recession, economic downturn or inflation; (vii) address unexpected increases in the frequency or severity of claims, and (viii) comply with the numerous laws and regulations applicable to our business, including state, federal and foreign laws relating to insurance and rate increases, privacy, the internet, and accounting matters.

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 the 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 nearly 890,000 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.

Contact: Jay Koval, investor@hagerty.com
Hagerty Media Contact: Andrew Heller, aheller@hagerty.com

Category: Financial

Source: Hagerty
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Hagerty, Inc.
Condensed Consolidated Statements of Operations (Unaudited)

Three months ended March 31,
20252024$ Change% Change
REVENUE:in thousands (except percentages and per share amounts)
Commission and fee revenue$100,287 $88,840 $11,447 12.9 %
Earned premium169,355 151,619 17,736 11.7 %
Membership, marketplace and other revenue49,951 31,249 18,702 59.8 %
Total revenue319,593 271,708 47,885 17.6 %
OPERATING EXPENSES:
Salaries and benefits59,103 56,116 2,987 5.3 %
Ceding commissions, net77,333 70,930 6,403 9.0 %
Losses and loss adjustment expenses71,130 62,356 8,774 14.1 %
Sales expense54,626 39,660 14,966 37.7 %
General and administrative expenses22,185 19,862 2,323 11.7 %
Depreciation and amortization9,488 10,560 (1,072)(10.2)%
Total operating expenses293,865 259,484 34,381 13.2 %
OPERATING INCOME25,728 12,224 13,504 110.5 %
Loss related to warrant liabilities, net— (6,140)6,140 (100.0)%
Interest and other income (expense), net7,054 7,244 (190)(2.6)%
INCOME BEFORE INCOME TAX EXPENSE32,782 13,328 19,454 146.0 %
Income tax expense(5,489)(5,129)(360)7.0 %
NET INCOME27,293 8,199 19,094 232.9 %
Net income attributable to non-controlling interest(18,922)(9,550)(9,372)98.1 %
Accretion of Series A Convertible Preferred Stock(1,875)(1,838)(37)2.0 %
NET INCOME (LOSS) ATTRIBUTABLE TO CLASS A COMMON STOCKHOLDERS$6,496 $(3,189)$9,685 303.7 %
Earnings (loss) per share of Class A Common Stock:
Basic$0.07 $(0.04)
Diluted$0.07 $(0.04)
Weighted average shares of Class A Common Stock outstanding:
Basic90,047 84,656 
Diluted346,311 84,656 
5

Hagerty, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
March 31,December 31,
20252024
ASSETSin thousands (except share amounts)
Current Assets:
Cash and cash equivalents$127,704 $104,784 
Restricted cash and cash equivalents158,604 128,061 
Investments104,991 73,957 
Accounts receivable97,610 84,763 
Premiums receivable175,522 153,748 
Commissions receivable17,135 20,430 
Notes receivable62,053 45,417 
Deferred acquisition costs, net152,270 156,466 
Other current assets102,044 90,779 
Total current assets997,933 858,405 
Investments481,115 515,570 
Notes receivable11,139 11,555 
Property and equipment, net17,919 18,205 
Lease right-of-use assets43,433 44,485 
Intangible assets, net87,122 90,107 
Goodwill114,127 114,123 
Other long-term assets63,403 56,888 
TOTAL ASSETS$1,816,191 $1,709,338 
LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable, accrued expenses and other current liabilities$116,875 $73,383 
Losses payable and provision for unpaid losses and loss adjustment expenses251,920 266,878 
Commissions payable79,315 77,389 
Advance premiums and due to insurers154,009 108,352 
Unearned premiums352,162 357,539 
Contract liabilities32,778 31,905 
Total current liabilities987,059 915,446 
Long-term lease liabilities41,956 43,178 
Long-term debt, net132,596 104,968 
Deferred tax liability18,421 18,065 
Contract liabilities14,834 15,334 
Other long-term liabilities2,130 4,178 
TOTAL LIABILITIES1,196,996 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 March 31, 2025 and December 31, 2024)86,538 84,663 
STOCKHOLDERS' EQUITY
Class A Common Stock, $0.0001 par value (500,000,000 shares authorized, 90,064,663 and 90,032,391 issued and outstanding as of March 31, 2025 and December 31, 2024, respectively)
9 9 
Class V Common Stock, $0.0001 par value (300,000,000 authorized, 251,033,906 shares issued and outstanding as of March 31, 2025 and December 31, 2024)25 25 
Additional paid-in capital606,972 603,780 
Accumulated earnings (deficit)(443,607)(451,978)
Accumulated other comprehensive income (loss)(455)(1,514)
Total stockholders' equity162,944 150,322 
Non-controlling interest369,713 373,184 
Total equity532,657 523,506 
TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY$1,816,191 $1,709,338 
1 The Series A Convertible Preferred Stock is recorded within Temporary Equity because it has equity conversion and cash redemption features.
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Hagerty, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)

Three months ended March 31,
20252024
OPERATING ACTIVITIES:in thousands
Net income$27,293 $8,199 
Adjustments to reconcile net income to net cash from operating activities:
Loss on disposals of equipment, software and other assets 1,136 — 
Loss related to warrant liabilities, net— 6,140 
Depreciation and amortization9,488 10,560 
Provision for deferred taxes(939)(571)
Share-based compensation expense4,392 4,543 
Non-cash lease expense2,109 2,197 
Realized (gain) loss on investments, net315 — 
(Accretion) amortization of discount and premium, net(1,184)— 
Other1,852 1,140 
Changes in operating assets and liabilities:
Accounts, premiums and commissions receivable(39,394)42,736 
Deferred acquisition costs, net4,196 4,712 
Losses payable and provision for unpaid losses and loss adjustment expenses(14,958)5,567 
Commissions payable1,926 (37,669)
Advance premiums and due to insurers45,257 34,941 
Unearned premiums(5,377)(4,573)
Operating lease assets and liabilities(2,252)(2,282)
Other assets and liabilities, net9,970 (17,402)
Net Cash Provided by Operating Activities43,830 58,238 
INVESTING ACTIVITIES:
Capital expenditures(5,389)(4,538)
Acquisitions, net of cash acquired, and other investments— (3,843)
Issuance of notes receivable(9,886)(17,828)
Collection of notes receivable1,650 11,041 
Purchases of fixed maturity securities(39,150)(2,956)
Proceeds from sales of fixed maturity securities14,804 — 
Proceeds from maturities of fixed maturity securities33,722 1,075 
Purchases of equity securities(246)— 
Sales of equity securities247 — 
Other investing activities(233)(1,238)
Net Cash Used in Investing Activities(4,481)(18,287)
FINANCING ACTIVITIES:
Payments on long-term debt(120,880)(45,331)
Proceeds from long-term debt, net of issuance costs160,067 8,098 
Distributions paid to non-controlling interest unit holders(24,676)— 
Funding of TRA liability payments(223)— 
Funding of employee tax obligations upon vesting of share-based payments(44)— 
Net Cash Provided by (Used in) Financing Activities14,244 (37,233)
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents(130)(186)
Change in cash and cash equivalents and restricted cash and cash equivalents53,463 2,532 
Beginning cash and cash equivalents and restricted cash and cash equivalents232,845 724,276 
Ending cash and cash equivalents and restricted cash and cash equivalents$286,308 $726,808 
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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 March 31,
20252024Change
Operational Metrics dollars in thousands (except per share amounts)
Total Written Premium$244,327 $218,286 $26,041 11.9 %
Hagerty Re Loss Ratio42.0 %41.1 %0.9 %N/M
Hagerty Re Combined Ratio88.5 %88.5 %— %N/M
New Business Count — Insurance
55,309 59,286 (3,977)(6.7)%
GAAP Financial Measures
Total Revenue$319,593 $271,708 $47,885 17.6 %
Operating Income$25,728 $12,224 $13,504 110.5 %
Net Income$27,293 $8,199 $19,094 232.9 %
Basic Earnings (Loss) Per Share$0.07 $(0.04)$0.11 N/M
Diluted Earnings (Loss) Per Share$0.07 $(0.04)$0.11 N/M
Non-GAAP Financial Measures
Adjusted EBITDA$39,608 $27,327 $12,281 44.9 %
Adjusted Earnings Per Share$0.08 $0.04 $0.04 100.0 %
N/M = Not meaningful

March 31,December 31,
20252024Change
Operational Metrics
Policies in Force1,524,927 1,506,451 18,476 1.2 %
Policies in Force Retention89.0 %89.0 %— %— %
Vehicles in Force2,609,209 2,576,700 32,509 1.3 %
HDC Paid Member Count889,390 875,822 13,568 1.5 %
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; (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. We use 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.
8


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 ended
March 31,
20252024
in thousands
Net income$27,293 $8,199 
Interest and other (income) expense 1, 2
(7,054)(7,244)
Income tax expense5,489 5,129 
Depreciation and amortization9,488 10,560 
EBITDA35,216 16,644 
Loss related to warrant liabilities, net— 6,140 
Share-based compensation expense4,392 4,543 
Adjusted EBITDA$39,608 $27,327 
1    Excludes interest expense related to the BAC Credit Facility, which is recorded within "Sales expense" in the Condensed Consolidated Statements of Operations.
2    Includes interest income and net investment income related to our investment portfolio.

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 Low2025 High
in thousands
Net income$102,000 $110,000 
Interest and other (income) expense 1, 2
(32,000)(32,000)
Income tax expense21,000 23,000 
Depreciation and amortization39,000 39,000 
Share-based compensation expense20,000 20,000 
Adjusted EBITDA$150,000 $160,000 
1    Excludes interest expense related to the BAC Credit Facility, which is recorded within "Sales expense" in the Condensed Consolidated Statements of Operations.
2    Includes interest income and net investment income related to our investment portfolio.

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; (iv) all unissued share-based compensation awards; and (v) all unexercised warrants outstanding prior to the Warrant Exchange.

The most directly comparable GAAP measure to Adjusted EPS is basic earnings per share ("Basic EPS"), which is calculated as Net income (loss) available to Class A Common Stockholders divided by the weighted average number of Class A Common Stock shares outstanding during the period.

9

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 outstanding and potentially dilutive shares, provides useful information to investors regarding our performance on a fully consolidated and fully diluted basis.

Management uses Adjusted EPS:

•as a measurement of operating performance of our business on a fully consolidated and fully diluted basis;
•to evaluate the performance and effectiveness of our operational strategies; and
•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
March 31,
20252024
in thousands (except per share amounts)
Numerator:
Net income (loss) available to Class A Common Stockholders 1
$6,041 $(3,189)
Accretion of Series A Convertible Preferred Stock1,875 1,838 
Undistributed earnings allocated to Series A Convertible Preferred Stock455 — 
Net income attributable to non-controlling interest18,922 9,550 
Consolidated net income27,293 8,199 
Loss related to warrant liabilities, net— 6,140 
Adjusted consolidated net income 2
$27,293 $14,339 
Denominator:
Weighted average shares of Class A Common Stock outstanding 1
90,047 84,656 
Total potentially dilutive securities outstanding:
Non-controlling interest THG units
255,154 255,499 
Series A Convertible Preferred Stock, on an as-converted basis
6,785 6,785 
Total unissued share-based compensation awards7,935 8,256 
Total warrants outstanding— 19,484 
Potentially dilutive shares outstanding269,874 290,024 
Fully dilutive shares outstanding 2
359,921 374,680 
Basic EPS 1
$0.07 $(0.04)
Adjusted EPS 2
$0.08 $0.04 
1    Numerator and Denominator of the GAAP measure Basic EPS
2    Numerator and Denominator of the non-GAAP measure Adjusted EPS
10
Investor Presentation Q1 2025 SPEAKERS: McKeel Hagerty | Chief Executive Officer and Chairman Patrick McClymont | Chief Financial Officer

 
HAGERTY Q1 2025 | 2 FORWARD LOOKING STATEMENTS / NON-GAAP FINANCIAL MEASURES This presentation contains statements that constitute “forward-looking statements” within the meaning of the federal securities laws. All statements we provide, other than statements of historical fact, are forward-looking statements, including those regarding our future operating results and financial position, our business strategy and plans, products, services, and technology implementations, market conditions, growth and trends, expansion plans and opportunities, and our 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 negatives of these expressions, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations about future events, which may not materialize. Actual results could differ materially and adversely from those anticipated or implied in our forward- looking statements. These factors include, among other things, our ability to: (i) compete effectively within our industry and attract and retain our insurance policyholders and paid Hagerty Drivers Club (“HDC”) subscribers; (ii) maintain key strategic relationships with our insurance distribution and underwriting carrier partners; (iii) prevent, monitor, and detect fraudulent activity; (iv) manage risks associated with disruptions, interruptions, outages or other issues with our technology platforms or our use of third-party services; (v) accelerate the adoption of our membership and marketplace products and services, as well as any new insurance programs and products we offer; (vi) manage the cyclical nature of the insurance business, including through any periods of recession, economic downturn or inflation; (vii) address unexpected increases in the frequency or severity of claims; and (viii) comply with the numerous laws and regulations applicable to our business, including state, federal and foreign laws relating to insurance and rate increases, privacy, the internet, and accounting matters. You should not rely on forward-looking statements as predictions of future events. We operate in a very competitive and rapidly changing environment and new risks emerge from time to time. The forward- looking statements in this presentation represent our views as of the date hereof. This presentation should be read in conjunction with the information included in our filings with the SEC and press releases. Understanding the information contained in these filings is important in order to fully understand our reported financial results and our business outlook for future periods. In addition, this presentation contains certain “non-GAAP financial measures”. The non-GAAP measures are presented for supplemental informational purposes only. These financial measures are not recognized measures 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. Reconciliations to the most directly comparable financial measure calculated and presented in accordance with GAAP are provided in the appendix to this presentation. ON THE COVER: 2007 Lamborghini Gallardo PHOTOGRAPHER: CAMERON NEVEU

 
HAGERTY Q1 2025 | 3 Q1 2025 Highlights TOTAL REVENUE GROWTH OF 18% TO $320 MILLION 1. Commission and Fee growth of 13% 2. Written Premium growth of 12% » Added 55,000 new members in the quarter 3. Membership, Marketplace and Other revenue growth of 60% » Marketplace growth of 176%, primarily due to a higher level of inventory sales, including cars sold in February 2025 from the Academy of Art University Collection SIGNIFICANTLY IMPROVED PROFITABILITY 1. Operating Income $26 million (+110%) » Improved operating margin by 360 bps 2. Net Income1 of $27 million compared to $8 million (+233%) 3. Adjusted EBITDA2 of $40 million compared to $27 million (+45%) ENTERED INTO A $375 MILLION UNSECURED CREDIT AGREEMENT 1. Added BMO to the upsized facility with lower borrowing costs and a March 2030 maturity 1 Net Income in the prior year includes a $6 million loss as a result of the change in fair value and settlement of our warrant liabilities. 2 See Appendix for additional information regarding this non-GAAP financial measure. 1973 Porsche 911 Carrera RS 2.7 followed by a 1973 Pontiac Firebird Trans Am SD-455. PHOTOGRAPHER: JAMES LIPMAN

 
2025 Priorities Investing to double Hagerty’s policies in force to 3.0 million by 2030 FASTER, SMARTER, MORE INTEGRATED: » Insurance growth with State Farm rollout and launch of Enthusiast Plus » Integrated membership with authentic delivery of products and services » Marketplace global expansion in live and digital auctions to help members buy and sell the cars they love » Operational excellence by delivering great experiences more efficiently as we drive margins higher » Technology integration and speed as we transition to cloud native, scalable architecture » Cultural excellence by engaging best in class teams to service all stakeholders HAGERTY Q1 2025 | 4 → Reverie event at The Amelia. PHOTOGRAPHER: KAYLA KEENAN

 
HAGERTY Q1 2025 | 5 Investing in Growth and Efficiency Began the process of identifying challenges and risks of aging IT infrastructure in 2023 Current technology stack: » Impacts operational efficiency, resulting in a high cost to serve » Prevents scalability that is needed to efficiently double our policy count to 3.0 million by 2030 New insurance IT platform, Duck Creek, should improve the member experience, enhance security, and lower marginal operating costs » Offer more self-serve functionality » Allow for more modern rating architecture with greater segmentation » Free up tech resources to develop differentiators for Hagerty Near-term redundant systems result in higher than normal operating and software expenses TECHNOLOGY SPEND SHOULD BEGIN TO MODERATE AS A PERCENTAGE OF REVENUE IN 2026 2025 technology investments tracking on-time and on-budget* Reverie event at The Amelia. PHOTOGRAPHER: KAYLA KEENAN *Elevated technology investments of ~$20 million in 2025

 
HAGERTY Q1 2025 | 6 360 bps improvement in operating margin $320M +18% +$14M +$19M +12% +$12M $244M 89.0% $26M $40M $27M $0.07 FIRST QUARTER 2025 Financial Highlights 1 Full year Loss Ratio includes a $10 million impact from the Southern California wildfires. 2 Hagerty Re’s Combined Ratio is the ratio of (i) Hagerty Re’s losses, loss adjustment expenses, and underwriting expenses to (ii) its earned premium. 3 See Appendix for additional information regarding this non-GAAP measure. 82 42.0% Loss Ratio1 88.5% Combined Ratio2 Adjusted EBITDA3

 
HAGERTY Q1 2025 | 7 $272 $320 $50 $100 $152 $89 $31 $169 13% 60% 12% Growth Q1 2024 Q1 2025 18% growth TOTAL REVENUE FIRST QUARTER 2025 HIGHLIGHTS Commission + Fee revenue (+13%) » Written premium growth 12% » Policies in Force retention of 89.0% Membership, Marketplace + Other revenue (+60%) » Membership revenue growth of 14% » Marketplace delivered $29 million in revenue Earned premium in Hagerty Re (+12%) » Contractual quota share2 is ~80% Revenue Components 1 Includes base commissions, payment plan fees and contingent underwriting commissions. 2 Currently applies to our U.S. program. Generally described as an arrangement where underwriting risk and profit is shared proportionately.

 
HAGERTY Q1 2025 | 8 $(15) $8 $7 $27 $27 $40 $(15) $8 $7 $27 $27 $40 Q1 2023 Q1 2023Q1 2024 Q1 2024Q1 2025 Q1 2025 Delivering sustained profit growth First Quarter Earnings Analysis FIRST QUARTER NET INCOME1 FIRST QUARTER ADJUSTED EBITDA2 1 Q1 2023 Net Loss includes a $1 million loss as a result of an increase in the fair value of our warrant liabilities and Q1 2024 Net Income includes a $6 million loss as a result of the change in fair value of our warrant liabilities. 2 See Appendix for additional information regarding this non-GAAP financial measure. First Quarter 2025 Adjusted EBITDA of $40 million

 
HAGERTY Q1 2025 | 9 IN THOUSANDS 2024 RESULTS 2025 OUTLOOK ($) 2025 OUTLOOK (%) LOW END HIGH END LOW END HIGH END Total Written Premium $1,044,492 $1,180,000 $1,191,000 13% 14% Total Revenue $1,200,038 $1,344,000 $1,356,000 12% 13% Net Income1 $78,303 $102,000 $110,000 30% 40% Adjusted EBITDA2 $124,473 $150,000 $160,000 21% 29% 1 Profit outlook includes an estimated $10 million of pre-tax losses from the Southern California wildfires, as well as the $20 million of elevated technology spend as the Company re-platforms from its legacy system to Duck Creek. Fully diluted share count of approximately 360 million shares including Class A Common Stock, Class V Common Stock, Series A Convertible Preferred Stock, and share-based compensation awards. 2 See Appendix for additional information regarding this non-GAAP financial measure. Sustained growth and margin expansion Reaffirmed 2025 Outlook → 1984 BMW 325e and 1979 Toyota Land Cruiser PHOTOGRAPHER: NICK BERARD

 

 
HAGERTY Q1 2025 | 11 WRITTEN PREMIUM GROWTH FUELED BY NEW MEMBERS Strong and Growing New Business Count* 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025E 0 50000 100000 150000 200000 250000 300000 350000 400000 450000 *New business count is expected to accelerate with State Farm Classic Plus conversion

 
HAGERTY Q1 2025 | 12 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 200 300 400 500 600 PROVEN TRACK RECORD OF PROFITABLE LONG-TERM GROWTH Hagerty U.S. Auto - CAGR 15% Industry Top 100 - CAGR 6% Hagerty Loss Ratio - average = 39% Industry Loss Ratio - average = 68% HAGERTY U.S. AUTO PREMIUM GROWTH VS. INDUSTRY TOP 100 HAGERTY U.S. AUTO LOSS PERFORMANCE VS. INDUSTRY TOP 100 Source: Hagerty Internal Data, S&P Global Market Intelligence (2024). To ta l P er ce nt ag e G ro w th To ta l L os s Pe rf or m an ce 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 30 40 50 60 70 80 90

 
HAGERTY Q1 2025 | 13 HISTORICAL WRITTEN PREMIUM GROWTH 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200 400 600 800 1,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 —% 3% 5% 8% 10% 13% 15% 18% 20% Durable mid-teens growth TOTAL U.S. AUTO WRITTEN PREMIUM U.S. AUTO WRITTEN PREMIUM ANNUAL GROWTH

 
HAGERTY Q1 2025 | 14 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 ~14% ~2% Pre 1981 Vehicle Count Type Total Market (cars, mm) Collectible Vehicles by CohortHagerty Penetration and U.S. Auto Insured Vehicle Count Hagerty Penetration Pre 1981 Vehicles 11.1 14.0% Post 1980 Vehicles 36.7 1.9% Total 47.8 4.7% Post 1980 Vehicle Count MARKET LEADING POSITION WITH SIGNIFICANT PENETRATION OPPORTUNITY

 
HAGERTY Q1 2025 | 15 REVENUE COMPONENTS BY QUARTER $ IN MILLIONS 117 127 140 147 152 158 166 168 169 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 75 110 103 78 89 129 116 89 100 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 27 24 33 20 31 27 42 34 50 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 COMMISSION + FEE REVENUE1 EARNED PREMIUM IN HAGERTY RE MEMBERSHIP, MARKETPLACE + OTHER REVENUE 1 Includes base commissions, payment plan fees and contingent underwriting commissions.

 
HAGERTY Q1 2025 | 16 IN THOUSANDS Q1 2024 Q2 2024 - Q4 2024 Q1 2025 TTM Net income $8,199 $70,104 $27,293 $97,397 Interest and other (income) expense1, 2 (7,244) (28,564) (7,054) (35,618) Income tax expense 5,129 10,250 5,489 15,739 Depreciation and amortization 10,560 28,345 9,488 37,833 EBITDA 16,644 80,135 35,216 115,351 Loss related to warrant liabilities, net 6,140 2,404 — 2,404 Share-based compensation expense 4,543 12,814 4,392 17,206 Gains, losses, and impairments related to divestitures — (87) — (87) Other unusual items3 — 1,880 — 1,880 Adjusted EBITDA $27,327 $97,146 $39,608 $136,754 RECONCILIATION OF NON-GAAP METRICS Net Income to Adjusted EBITDA 1 Excludes interest expense related to the BAC Credit Facility, which is recorded within “Sales expense” in the Condensed Consolidated Statements of Operations. 2 Includes interest income and net investment income related to our investment portfolio. 3 Other unusual items includes professional fees associated with the warrant exchange, as well as certain material severance expenses for the year ended December 31, 2024. 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; (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. We use 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.

 
HAGERTY Q1 2025 | 17 IN THOUSANDS (EXCEPT PER SHARE AMOUNTS) Q1 2025 Q1 2024 Numerator: Net income (loss) available to Class A Common Stockholders 1 $6,041 ($3,189) Accretion of Series A Convertible Preferred Stock 1,875 1,838 Undistributed earnings allocated to Series A Convertible Preferred Stock 455 — Net income attributable to non-controlling interest 18,922 9,550 Consolidated net income 27,293 8,199 Loss related to warrant liabilities, net — 6,140 Adjusted consolidated net income (loss) 2 $27,293 $14,339 Denominator: Weighted average shares of Class A Common Stock outstanding 1 90,047 84,656 Total potentially dilutive securities outstanding: Non-controlling interest THG units 255,154 255,499 Series A Convertible Preferred Stock, on an as-converted basis 6,785 6,785 Total unissued share-based compensation awards 7,935 8,256 Total warrants outstanding — 19,484 Potentially dilutive shares outstanding 269,874 290,024 Fully dilutive shares outstanding 2 359,921 374,680 Basic Earnings (Loss) per Share 1 $0.07 ($0.04) Adjusted Earnings (Loss) per Share 2 $0.08 $0.04 Basic Earnings Per Share to Adjusted Earnings Per Share RECONCILIATION OF NON-GAAP METRICS 1 Numerator and Denominator of the GAAP measure Basic EPS 2 Numerator and Denominator of the non-GAAP measure Adjusted EPS 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; (iv) all unissued share-based compensation awards; and (v) all unexercised warrants outstanding prior to the Warrant Exchange. The most directly comparable GAAP measure to Adjusted EPS is basic earnings per share (“Basic EPS”), which is calculated as Net income (loss) 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 outstanding and potentially dilutive shares, provides useful information to investors regarding our performance on a fully consolidated basis.

 
HAGERTY Q1 2025 | 18 IN THOUSANDS 2025 Low 2025 High Net income $102,000 $110,000 Interest and other (income) expense1, 2 (32,000) (32,000) Income tax expense 21,000 23,000 Depreciation and amortization 39,000 39,000 Share-based compensation expense 20,000 20,000 Adjusted EBITDA $150,000 $160,000 Net Income to Adjusted EBITDA RECONCILIATION OF NON-GAAP METRICS | REAFFIRMED 2025 OUTLOOK 1 Excludes interest expense related to the BAC Credit Facility, which is recorded within “Sales expense” in the Condensed Consolidated Statements of Operations. 2 Includes interest income and net investment income related to our investment portfolio. 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; (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. We use 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.

 

 
v3.25.1
Cover
May 07, 2025
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date May 07, 2025
Entity Registrant Name HAGERTY, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-40244
Entity Address, Address Line One 121 Drivers Edge
Entity Address, City or Town Traverse City
Entity Address, State or Province MI
Entity Address, Postal Zip Code 49684
City Area Code (800)
Local Phone Number 922-4050
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company true
Entity Ex Transition Period false
Entity Central Index Key 0001840776
Amendment Flag false
Title of 12(b) Security Class A common stock, par value $0.0001 per share
Trading Symbol HGTY
Security Exchange Name NYSE
Entity Tax Identification Number 86-1213144
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