Quarterly ResultMay 6, 2026, 10:57 AM
Hagerty Q1 Net Loss $(12.7M); Total Revenue $311.8M
AI Summary
Hagerty, Inc. reported a net loss of $(12.7) million for the first quarter of 2026, a significant decline from a net income of $27.3 million in the prior year period. Total revenue decreased to $311.8 million from $328.3 million year-over-year. This quarter's results reflect the impact of the new Markel Fronting Arrangement, effective January 1, 2026, which altered revenue recognition for insurance policies and involved a loss portfolio transfer.
Key Highlights
- Net loss was $(12.7) million in Q1 2026, compared to net income of $27.3 million in Q1 2025.
- Total revenue decreased to $311.8 million in Q1 2026 from $328.3 million in Q1 2025.
- Basic EPS was $(0.06) in Q1 2026, down from $0.07 in Q1 2025.
- Earned premium, net, increased to $239.6 million in Q1 2026 from $169.4 million in Q1 2025.
- Commission and fee revenue significantly decreased to $16.4 million from $100.3 million.
- Hagerty Re now controls 100% of premium and assumes 100% of risk for Essentia policies.
- Received $50.5 million cash from a Loss Portfolio Transfer Agreement effective January 1, 2026.
- Net cash provided by operating activities decreased to $16.3 million from $43.8 million.