Hagerty Reports Strong Q1 Revenue but EPS Falls Short#
Hagerty Inc. (HGTY) has released its financial results for the first quarter of 2026, showcasing a mixed performance. While the company exceeded revenue expectations, its earnings per share (EPS) did not meet forecasts.
Key Financial Results#
Hagerty reported a revenue of $311.83 million, which is 9.47% higher than the anticipated $284.85 million. However, the EPS was -$0.04, falling short of the expected -$0.02, resulting in a significant negative surprise. This discrepancy has raised concerns among investors, leading to a 2.24% decline in Hagerty’s stock price during pre-market trading.
Company Performance#
This quarter marked Hagerty's strongest Q1 performance to date, driven by notable growth in both written and earned premiums. The company has taken on full underwriting risk for its U.S. operations, which is starting to show positive effects. However, the EPS miss indicates ongoing challenges related to managing costs and amortization. Despite these hurdles, the stock's PEG ratio stands at just 0.1, suggesting it may be undervalued compared to its growth potential.
Financial Highlights#
- Revenue: $311.83 million, exceeding forecasts.
- Earnings per share: -$0.04, below expectations.
- Written premiums: $289 million, an 18% increase year-over-year.
- Earned premiums: $240 million, a 42% increase year-over-year.
Market Reaction and Outlook#
Following the earnings announcement, Hagerty's stock price fell, reflecting investor concerns about the EPS miss. Currently priced at $10.06, the stock is only 15% above its 52-week low of $8.81. Despite this, analysts remain optimistic about Hagerty's future, projecting EPS growth and continued revenue expansion in the coming quarters. The company is expected to become profitable this year, with analysts forecasting a full-year EPS of $1.23 for 2026.