$HGTY

Hagerty, Inc.

CIK:0001840776|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
REVENUE:
Earned premium, net	$ 251,956	$ 177,785	$ 491,598	$ 347,140
Marketplace revenue	39,658	26,886	65,310	55,972
Net investment income	11,003	9,416	21,266	18,474
Net investment gains	7,179	1,194	4,890	879
Total revenue	354,822	379,309	666,652	707,645
EXPENSES:
Losses and loss adjustment expenses, net	110,709	75,213	208,628	146,343
Policy acquisition costs, net	83,641	82,938	185,563	160,271
Underwriting and other insurance expenses	62,947	1,222	122,535	2,579
Selling, general, and administrative expenses	95,265	161,627	167,681	305,672
Interest expense and other, net	28	4,946	950	6,635
Total expenses	352,590	325,946	685,357	621,500
INCOME (LOSS) BEFORE TAXES	2,232	53,363	(18,705)	86,145
Income tax (expense) benefit	5,809	(6,161)	14,001	(11,650)
NET INCOME (LOSS)	8,041	47,202	(4,704)	74,495
Net (income) loss attributable to non-controlling interest	(7,761)	(36,229)	493	(55,151)
Accretion of Series A Convertible Preferred Stock	(1,948)	(1,875)	(3,978)	(3,750)
NET INCOME (LOSS) ATTRIBUTABLE TO CLASS A COMMON STOCKHOLDERS	(1,668)	9,098	(8,189)	15,594
Class A Common Stock
EXPENSES:
NET INCOME (LOSS)			(4,704)	74,495
Net (income) loss attributable to non-controlling interest	(7,761)	(36,229)	493	(55,151)
Accretion of Series A Convertible Preferred Stock	$ (1,948)	$ (1,875)	$ (3,978)	$ (3,750)
Earnings (loss) per share of Class A Common Stock:
Basic (in dollars per share)	$ (0.02)	$ 0.09	$ (0.08)	$ 0.16
Diluted (in dollars per share)	$ (0.02)	$ 0.09	$ (0.08)	$ 0.16
Weighted average shares of Class A Common Stock outstanding:
Basic (in shares)	101,797	90,698	101,418	90,374
Diluted (in shares)	101,797	90,698	101,418	91,247
Total commission and fee revenue
REVENUE:
Revenue from contract with customer, including finance revenue, excluding assessed tax	$ 23,665	$ 143,287	$ 40,100	$ 243,574
Membership and other revenue
REVENUE:
Revenue from contract with customer, including finance revenue, excluding assessed tax	$ 21,361	$ 20,741	$ 43,488	$ 41,606

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
OPERATING ACTIVITIES:
Net income (loss)	$ (4,704)	$ 74,495
Adjustments to reconcile net income (loss) to net cash from operating activities:
Loss on disposals of equipment, software, and other assets	241	1,211
Change in TRA Liability	0	3,078
Depreciation and amortization	19,422	18,321
Provision for deferred taxes	(26,199)	2,061
Share-based compensation expense	9,710	9,538
Non-cash lease expense	4,174	4,226
Net investment gains	(4,890)	(879)
(Accretion) amortization of discount and premium, net	(1,377)	(2,316)
Amortization of gain on loss portfolio transfer	(2,940)	0
Other	795	355
Changes in assets and liabilities:
Accounts and premiums receivable	128,383	(142,560)
Deferred acquisition costs, net	79,028	(21,964)
Reinsurance recoverables	2,950	(10,390)
Prepaid reinsurance premiums	(27,896)	(7,325)
Advance premiums	21,920	10,590
Due to insurers	(67,278)	68,256
Losses payable and reserves for unpaid losses and loss adjustment expenses	(22,499)	(7,828)
Unearned premiums	186,159	52,957
Ceding commissions payable	(80,032)	35,691
Other assets and liabilities, net	(28,810)	10,197
Net Cash Provided by Operating Activities	186,157	97,714
INVESTING ACTIVITIES:
Capital expenditures	(15,954)	(11,549)
Issuance of notes receivable	(92,151)	(26,617)
Collection of notes receivable	55,261	8,091
Purchases of fixed maturity securities	(228,418)	(98,455)
Purchases of equity securities	(51,041)	(347)
Proceeds from maturities and sales of fixed maturity securities	214,809	96,811
Proceeds from sales of equity securities	35,405	378
Other investing activities	(613)	(151)
Net Cash Used in Investing Activities	(82,702)	(31,839)
FINANCING ACTIVITIES:
Repayments of debt	(61,806)	(124,493)
Proceeds from debt, net of issuance costs	100,825	192,339
Proceeds from loss portfolio transfer	50,500	0
Claims payments made from loss portfolio transfer	(13,259)	0
Distributions paid to non-controlling interest unit holders	(837)	(30,380)
Payment of Series A Convertible Preferred Stock dividends	(5,600)	(5,600)
Funding of TRA Liability payments	(1,545)	(223)
Funding of employee tax obligations upon vesting of share-based payments	(3,251)	(2,452)
Other financing activities	309	289
Net Cash Provided by Financing Activities	65,336	29,480
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents	(156)	2,386
Change in cash and cash equivalents and restricted cash and cash equivalents	168,635	97,741
Beginning cash and cash equivalents and restricted cash and cash equivalents	299,000	232,845
Ending cash and cash equivalents and restricted cash and cash equivalents	$ 467,635	$ 330,586

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Fixed maturity securities	$ 701,561	$ 696,271
Equity securities, at fair value	54,945	34,871
Total investments	756,506	731,142
Cash and cash equivalents	298,302	160,177
Restricted cash and cash equivalents	169,333	138,823
Accounts receivable	27,313	98,872
Premiums receivable	120,382	180,529
Deferred acquisition costs, net	100,196	179,224
Reinsurance recoverables	12,346	15,296
Prepaid reinsurance premiums	49,846	21,950
Notes receivable	153,302	113,887
Intangible assets, net	89,315	88,915
Goodwill	114,134	114,164
Deferred tax assets	48,021	43,011
Other assets	209,435	207,986
TOTAL ASSETS	2,148,431	2,093,976
Liabilities, Current
Accounts payable and accrued expenses	89,829	111,947
Advance premiums	50,108	28,287
Due to insurers	27,100	94,930
Losses payable and reserves for unpaid losses and loss adjustment expenses	241,705	264,204
Unearned premiums	598,217	412,058
Ceding commissions payable	6,133	86,165
Debt, net	215,951	177,907
Contract liabilities	50,841	46,450
Deferred tax liability	244	23,489
Tax receivable agreement liability	38,284	39,829
Other liabilities	95,213	61,684
TOTAL LIABILITIES	1,413,625	1,346,950
Commitments and Contingencies	0	0
TEMPORARY EQUITY
Preferred stock, $0.0001 par value (20,000,000 shares authorized, 8,483,561 Series A Convertible Preferred Stock issued and outstanding as of December 31, 2025 and December 31, 2024)	84,996	86,618
STOCKHOLDERS' EQUITY
Additional paid-in capital	623,664	623,013
Accumulated earnings (deficit)	(407,171)	(402,960)
Accumulated other comprehensive income (loss)	(1,068)	1,229
Total stockholders' equity	215,459	221,316
Non-controlling interest	434,351	439,092
Total equity	649,810	660,408
TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY	2,148,431	2,093,976
Class A Common Stock
STOCKHOLDERS' EQUITY
Common stock	10	10
Class V Common Stock
STOCKHOLDERS' EQUITY
Common stock	$ 24	$ 24