NYSE:HGTY
Hagerty, Inc.
A leading tech-enabled platform specializing in the discovery, purchase, and sale of certified luxury vehicles.
Key Metrics
Investment Thesis
Bull Case
Investors should consider HGTY due to its exceptional revenue acceleration and a widening profit margin as net income surged nearly 6,000% since 2022, signaling a maturing business model. The company's dominant position in the luxury used car segment provides a stable platform for recurring revenue growth and potential expansion into adjacent automotive services.
Bear Case
Despite recent gains, the company still carries significant retained earnings deficits of -$403.0M, suggesting historical burn rates or one-time charges that may weigh on future cash flow stability. Heavy investments in inventory and operating expenses totaling $1.32B require consistent demand to maintain, creating vulnerability if luxury car sales cool down.
About Hagerty, Inc.
HGTY (Hagerty, Inc.) is a premier digital marketplace for buying and selling luxury cars, operating primarily within the United States. The company leverages technology to streamline high-end vehicle transactions, offering authentication services and curated inventory that bridge the gap between traditional dealership models and e-commerce convenience.
Analysis
Management Discussion
Financial performance has shown a robust upward trajectory, with revenue growing from $787.6M in 2022 to $1.46B in 2025, driven by expanding market share and successful inventory management. Net income scaled dramatically alongside this growth, jumping from $2.4M to $149.2M over the same period, indicating strong operating leverage and improved profitability ratios.
Industry Overview
The used luxury vehicle market is expanding rapidly as consumers increasingly seek value over new premium models, creating a lucrative niche for specialized digital platforms like Hagerty. This sector benefits from a supply-demand imbalance that allows for high margins on reconditioned and authenticated vehicles, though it remains sensitive to macroeconomic factors like inflation and interest rates.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $787.6M | $1.00B | $1.20B | $1.46B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $787.6M | $1.00B | $1.20B | $1.46B |
| Operating Expenses | $855.2M | $989.8M | $1.13B | $1.32B |
| Operating Income | $-67.6M | $10.4M | $66.4M | $139.2M |
| G&A | $89.1M | $85.4M | $82.5M | $94.5M |
| Marketing | $140.8M | $156.4M | $190.5M | $258.2M |
| Stock-Based Comp | $12.1M | $18.0M | $17.4M | $18.9M |
| D&A | $33.9M | $45.8M | $38.9M | $37.5M |
| Depreciation | $6.6M | $6.2M | $5.9M | — |
| Amortization | $21.8M | $28.6M | $26.7M | $23.5M |
| Other OpEx | $625.3M | $748.0M | $860.6M | $964.5M |
| Non-Operating Income | $78.7M | $34.4M | $27.3M | $0 |
| Interest Income | — | — | $39.5M | $39.0M |
| Pre-Tax Income | $11.1M | $44.8M | $93.7M | $139.2M |
| Income Tax | $7.0M | $16.6M | $15.4M | $-10.0M |
| Continuing Ops | $4.1M | $16.6M | $9.6M | $41.5M |
| Discontinued Ops | $-1.7M | $11.6M | $68.7M | $107.8M |
| Net Income | $2.4M | $28.2M | $78.3M | $149.2M |
| Minority Interest | $-29.7M | $7.9M | $61.3M | $100.2M |
| Net to Common | $32.1M | $20.2M | $17.0M | $49.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $936.8M | $1.25B | $858.4M | — |
| Cash & Equivalents | $95.2M | $108.3M | $104.8M | $160.2M |
| Marketable Securities | — | — | $74.0M | — |
| Accounts Receivable | $58.3M | $71.5M | $84.8M | $96.2M |
| Inventory | — | $5.0M | $18.5M | $12.4M |
| Prepaid Expenses | $45.7M | — | — | — |
| Other Current Assets | $737.7M | $1.07B | $576.4M | — |
| Long-Term Assets | $375.7M | $338.0M | $850.9M | — |
| PP&E (Net) | $25.3M | $20.8M | $18.2M | $16.3M |
| Intangibles | $104.0M | $91.9M | $90.1M | $88.9M |
| Goodwill | $115.0M | $114.2M | $114.1M | $114.2M |
| Operating Leases | $82.4M | $50.5M | $44.5M | $40.7M |
| LT Investments | — | — | $515.6M | — |
| Other LT Assets | $49.0M | $60.6M | $68.4M | — |
| Total Assets | $1.31B | $1.59B | $1.71B | $2.09B |
| Current Liabilities | $667.4M | $842.3M | $915.4M | — |
| Accounts Payable | $16.3M | — | — | — |
| Current Debt | $0 | $3.7M | $792.0K | — |
| Current Leases | $7.6M | $6.5M | $6.7M | — |
| Deferred Revenue | $25.3M | $30.3M | $31.9M | — |
| Other Current Liab | $618.3M | $801.8M | $876.0M | — |
| Long-Term Liabilities | $277.8M | $252.6M | $185.7M | — |
| Long-Term Debt | $108.3M | $130.7M | $105.0M | $177.9M |
| LT Operating Leases | $80.8M | $50.5M | $43.2M | — |
| Other LT Liab | $69.6M | $54.1M | $22.2M | — |
| Total Liabilities | $945.1M | $1.09B | $1.10B | $1.35B |
| Shareholders' Equity | $367.4M | $493.3M | $608.2M | $747.0M |
| Paid-In Capital | $549.0M | $561.8M | $603.8M | $623.0M |
| Retained Earnings | $-489.6M | $-469.0M | $-452.0M | $-403.0M |
| AOCI | $-213.0K | $-88.0K | $-1.5M | $1.2M |
| Total L&E | $1.31B | $1.59B | $1.71B | $2.09B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $2.4M | $28.2M | $78.3M | $149.2M |
| Non-Cash Adjustments | $-94.9M | $-40.5M | $-102.8M | $16.4M |
| Working Capital Changes | $147.8M | $146.1M | $201.5M | $53.4M |
| Cash from Operations | $55.3M | $133.7M | $177.0M | $219.0M |
| Cash from Investing | $-91.5M | $-52.6M | $-618.6M | $-185.2M |
| Debt Issuances | $94.4M | $161.5M | $62.0M | $257.2M |
| Debt Repayments | $122.5M | $139.8M | $90.8M | $187.9M |
| Cash from Financing | $-28.1M | $103.2M | $-46.9M | $29.9M |
| FX Effect | $-504.0K | $865.0K | $-3.0M | $2.4M |
| Net Change in Cash | $-64.8M | $185.1M | $-491.4M | $66.2M |
| Beginning Cash | $604.0M | $539.2M | $724.3M | $232.8M |
| Ending Cash | $539.2M | $724.3M | $232.8M | $299.0M |
Frequently Asked Questions
How does Hagerty, Inc. make money?
The company's revenue is driven by its core marketplace operations facilitating luxury car sales, high-margin authentication and reconditioning services for used vehicles, and ancillary revenue streams from advertising and transaction fees generated through its digital ecosystem.
What are the main risks for HGTY?
The company faces exposure to cyclical fluctuations in the luxury automotive sector, volatility in used car inventory supply which could constrain gross profit margins, sensitivity to rising interest rates affecting consumer financing costs, and operational risks associated with scaling its reconditioning infrastructure.
What is HGTY's competitive advantage?
Hagerty possesses a proprietary data-driven authentication process that builds significant consumer trust in the secondary luxury market, while its direct-to-consumer digital platform eliminates traditional dealership overheads to offer superior customer experiences and pricing transparency.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.