Quarterly ResultAug 5, 2026, 01:44 PM
Hagerty Reports Q2 Net Loss of $1.7M; Revenue Down 6.4%
AI Summary
Hagerty reported a net loss attributable to Class A Common Stockholders of $(1.7) million for Q2 2026, a significant decrease from $9.1 million net income in Q2 2025. Total revenue for the quarter also declined to $354.8 million. These results reflect the impact of the new Markel Fronting Arrangement, effective January 1, 2026, which altered the company's revenue and expense recognition policies, including the discontinuation of commission revenue for Essentia-originated policies.
Key Highlights
- Q2 2026 Net Loss Attributable to Class A Common Stockholders was $(1.7) million.
- Q2 2026 Total Revenue decreased to $354.8 million from $379.3 million in Q2 2025.
- Q2 2026 Basic EPS was $(0.02), down from $0.09 in Q2 2025.
- H1 2026 Net Loss Attributable to Class A Common Stockholders was $(8.2) million.
- H1 2026 Total Revenue decreased to $666.7 million from $707.6 million in H1 2025.
- Markel Fronting Arrangement became effective January 1, 2026, changing revenue recognition.
- Hagerty Re assumed 100% of risk for Essentia policies under the new arrangement.
- Received $50.5 million cash from Loss Portfolio Transfer Agreement on January 1, 2026.
Price Impact
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