Hagerty has raised its full-year earnings forecast after enjoying a strong second quarter, supported by revenue growth, margin expansion and continued momentum across its insurance and membership segments.
The specialty insurer and automotive lifestyle company reported revenue of US$368.7 million for the second quarter of 2025, up 18% from the same period last year. Net income rose 11% year-on-year to US$47.2 million, while adjusted EBITDA increased 20% to US$63.7 million.
For the first half of the year, revenue reached US$688.3 million, a rise of 18% compared to the first six months of 2024. Net income totalled US$74.5 million, up 46% and adjusted EBITDA came in at US$112.7 million, marking a 36% increase.
On the back of these results, Hagerty has raised its full-year 2025 guidance. The company now expects net income to range between US$112 million and US$120 million, compared with US$78.2 million for full-year 2024.
Total revenue is projected to come in between US$1.36 billion and US$1.37 billion for the year, while adjusted EBITDA is expected to land between US$162 million and US$172 million.
Chief Executive Officer McKeel Hagerty said the improved outlook reflects solid demand for the company’s products and services, as well as disciplined cost management. He noted that Hagerty is “seeing margin expansion ahead of expectations” while continuing to invest in areas such as new product development, international expansion and digital infrastructure upgrades.
The company also announced a non-binding letter of intent with Markel to establish a new fronting arrangement, which would allow Hagerty to assume full control of its written premium beginning January 2026.
As part of its long-term strategy, Hagerty is investing US$20 million into a new policy administration platform based on Duck Creek Technologies. The system is expected to improve scalability and operational efficiency across the business.
As of June 30, 2025, Hagerty reported US$140.3 million in unrestricted cash and US$176.1 million in total debt, with US$38.9 million tied to collector vehicle loans through Broad Arrow Capital.
The company said it remains confident in its ability to sustain long-term growth, supported by high customer retention, growing membership and an integrated platform built around insurance, technology and community.
