Hagerty(US:HGTY) Prnewswire·2025-11-04 11:55Core Insights - Hagerty, Inc. reported strong financial growth for the third quarter and year-to-date 2025, with total revenue increasing by 18% year-over-year to $380.0 million for Q3 and $1,068.3 million year-to-date [5][6][11] - The company has raised its full-year 2025 outlook for total revenue growth to 14-15% and net income growth to 58-65% [3][11] - Operating income for Q3 2025 surged by 240% year-over-year to $34.3 million, while year-to-date operating income increased by 78% to $107.7 million [10][21] Financial Performance - Year-to-date 2025 total revenue increased by 18% to $1,068.3 million, with Q3 total revenue also up by 18% to $380.0 million [5][6] - Written premium for Q3 2025 rose by 16% year-over-year to $334.0 million, and year-to-date written premium increased by 13% to $934.4 million [5][6] - Adjusted EBITDA for Q3 2025 increased by 106% year-over-year to $49.7 million, with year-to-date adjusted EBITDA up by 46% to $153.1 million [10][21] Growth Drivers - Marketplace revenue saw significant growth, increasing by 58% year-over-year to $34.2 million in Q3 and by 135% year-to-date to $89.9 million, driven by higher inventory sales and the addition of European auctions [6][10] - The company signed a new partnership with Liberty Mutual, enhancing its market position [5] Operational Metrics - Policies in force retention was 88.6% as of September 30, 2025, with total insured vehicles increasing by 7% year-over-year to 2.7 million [6] - The loss ratio for Q3 2025 improved to 42.0%, down from 60.0% in the prior year period, reflecting better claims management [6][10] Future Outlook - Hagerty anticipates continued growth in 2026, supported by investments in technology and strategic partnerships [3][8] - The company plans to invest $20 million in its new technology platform, Duck Creek, to enhance operational efficiency [8]