Hagerty(HGTY)2025-05-07 11:08Financial Performance - First quarter 2025 total revenue increased 18% year-over-year to $319.6 million[6] - First quarter 2025 net income increased 233% year-over-year to $27.3 million[6] - First quarter 2025 adjusted EBITDA increased 45% year-over-year to $39.6 million[6] - The company reaffirmed a 2025 outlook for total revenue growth of 12-13% and net income growth of 30-40%[5] - Total revenue rose to $319,593,000 for Q1 2025, reflecting a 17.6% increase from $271,708,000 in Q1 2024[28] - Net income for Q1 2025 was $27,293,000, a significant increase from $8,199,000 in Q1 2024, representing a year-over-year growth of 233%[32] - Adjusted EBITDA for Q1 2025 reached $39,608,000, compared to $27,327,000 in Q1 2024, indicating a growth of 45%[32] - The company projects a net income for the year 2025 between $102,000,000 and $110,000,000, with an Adjusted EBITDA forecasted between $150,000,000 and $160,000,000[32] Revenue Sources - First quarter 2025 marketplace revenue surged 176% year-over-year to $29.0 million, driven by higher inventory sales[9] - Hagerty's membership revenue increased 14% year-over-year to $15.3 million, with Hagerty Drivers Club paid members rising 7% to approximately 889,000[9] - Total written premium increased to $244,327,000, an 11.9% rise from $218,286,000 in Q1 2024[28] Operational Metrics - Policies in force retention was 89.0%, up from 88.7% in the prior year period, with total insured vehicles increasing 8% year-over-year to 2.6 million[9] - The number of policies in force grew to 1,524,927, representing a 1.2% increase from 1,506,451 policies as of December 31, 2024[28] - The first quarter 2025 loss ratio was 42.0%, including a 6.7% impact from catastrophe losses[9] - The Hagerty Re loss ratio was 42.0% for Q1 2025, slightly up from 41.1% in Q1 2024[28] Cash and Debt Position - The company ended the quarter with $128 million in cash and $147 million in total debt[9] - Cash and cash equivalents at the end of Q1 2025 totaled $286,308,000, down from $726,808,000 at the end of Q1 2024[26] Investment and Future Growth - The company plans to invest $20 million in technology, primarily in the new Duck Creek platform, to support future growth[11] - Total assets increased to $1,816,191,000 as of March 31, 2025, up from $1,709,338,000 as of December 31, 2024, representing a growth of 6.3%[24] Earnings Per Share - The company reported a basic earnings per share of $0.07 for Q1 2025, compared to a loss of $0.04 per share in Q1 2024[28] - Adjusted EPS for Q1 2025 was $0.08, up from $0.04 in Q1 2024, reflecting a 100% increase[37] - The weighted average shares of Class A Common Stock outstanding increased to 90,047,000 in Q1 2025 from 84,656,000 in Q1 2024[37] - Total potentially dilutive securities outstanding were 269,874,000 in Q1 2025, compared to 290,024,000 in Q1 2024[37] - The company reported a loss related to warrant liabilities of $6,140,000 in Q1 2024, which was excluded from the Adjusted EPS calculation[37] Expenses - Income tax expense for Q1 2025 was $5,489,000, slightly higher than $5,129,000 in Q1 2024[32] - Depreciation and amortization expenses decreased to $9,488,000 in Q1 2025 from $10,560,000 in Q1 2024[32] - The company emphasizes that Adjusted EPS is not a GAAP measure and should not be considered in isolation from Basic EPS[36]