📊 HGTY Key Takeaways
Is Hagerty, Inc. (HGTY) a Good Investment?
Despite exceptional 115% revenue growth, Hagerty remains deeply unprofitable with -6.7% operating margins and negative returns on equity, raising concerns about unit economics and operational sustainability. The combination of tight liquidity ratios (current ratio 1.0x, quick ratio 0.97x), elevated debt burden relative to equity ($228.6M debt vs $218.7M equity), and ongoing losses creates material financial distress risk that outweighs growth momentum.
Hagerty delivers exceptional top-line growth with healthy operating and net profitability and strong free cash flow generation, indicating solid underlying fundamentals. Leverage appears manageable and ROE is high, suggesting efficient capital use, though the small equity base amplifies ratios. Accounting complexity (negative diluted EPS despite positive net income) and tight liquidity warrant monitoring, but overall cash and earnings trends support a favorable view.
Why Buy Hagerty, Inc. Stock? HGTY Key Strengths
- Exceptional revenue growth of 114.9% YoY demonstrates strong market demand and expansion
- Positive operating and free cash flow ($16.3M and $8.5M respectively) shows ability to generate cash despite losses
- Substantial cash reserves of $212.4M provides near-term liquidity buffer
- Explosive revenue growth with positive operating leverage
- Robust free cash flow (13.4% FCF margin)
- High ROE with moderate leverage (D/E ~0.8x)
HGTY Stock Risks: Hagerty, Inc. Investment Risks
- Persistent unprofitability with -$20.9M operating loss and -$12.7M net loss indicates fundamental operational challenges not temporary in nature
- Critical liquidity weakness with current ratio of 1.0x and quick ratio of 0.97x paired with $228.6M long-term debt relative to only $218.7M equity
- Negative returns on equity (-5.8%) and assets (-0.6%) demonstrate the business is destroying shareholder value at scale
- Operating margin of -6.7% is severe for established insurance sector; suggests pricing power, cost structure, or business model issues
- Earnings quality/complexity (EPS vs net income mismatch, potential one-offs)
- Tight liquidity (current ratio ~1.0x) and unknown interest coverage
- Sustainability of >100% YoY revenue growth
Key Metrics to Watch
- Path to operating profitability and quarterly operating margin trend
- Debt servicing capacity and debt-to-equity reduction plan given current leverage
- Customer acquisition cost vs. lifetime value economics in insurance product mix
- Interest coverage
- Diluted EPS attributable to common
Hagerty, Inc. (HGTY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.7% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
HGTY Profit Margin, ROE & Profitability Analysis
HGTY vs Finance Sector: How Hagerty, Inc. Compares
How Hagerty, Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Hagerty, Inc. Stock Overvalued? HGTY Valuation Analysis 2026
Based on fundamental analysis, Hagerty, Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Hagerty, Inc. Balance Sheet: HGTY Debt, Cash & Liquidity
HGTY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Hagerty, Inc.'s revenue has grown significantly by 110% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.56 indicates the company is currently unprofitable.
HGTY Revenue Growth, EPS Growth & YoY Performance
HGTY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $61.1M | -$12.7M | N/A |
| Q3 2025 | $155.5M | $19.0M | N/A |
| Q2 2025 | $153.4M | $42.7M | N/A |
| Q1 2025 | $118.5M | $8.2M | N/A |
| Q3 2024 | $135.8M | $18.6M | N/A |
| Q2 2024 | $133.8M | $514.0K | N/A |
| Q1 2024 | $101.1M | $8.2M | N/A |
| Q3 2023 | $109.3M | $18.6M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Hagerty, Inc. Dividends, Buybacks & Capital Allocation
HGTY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Hagerty, Inc. (CIK: 0001840776)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HGTY
What is the AI rating for HGTY?
Hagerty, Inc. (HGTY) has a Combined AI Rating of HOLD from Claude (SELL) and ChatGPT (BUY) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HGTY's key strengths?
Claude: Exceptional revenue growth of 114.9% YoY demonstrates strong market demand and expansion. Positive operating and free cash flow ($16.3M and $8.5M respectively) shows ability to generate cash despite losses. ChatGPT: Explosive revenue growth with positive operating leverage. Robust free cash flow (13.4% FCF margin).
What are the risks of investing in HGTY?
Claude: Persistent unprofitability with -$20.9M operating loss and -$12.7M net loss indicates fundamental operational challenges not temporary in nature. Critical liquidity weakness with current ratio of 1.0x and quick ratio of 0.97x paired with $228.6M long-term debt relative to only $218.7M equity. ChatGPT: Earnings quality/complexity (EPS vs net income mismatch, potential one-offs). Tight liquidity (current ratio ~1.0x) and unknown interest coverage.
What is HGTY's revenue and growth?
Hagerty, Inc. reported revenue of $311.8M.
Does HGTY pay dividends?
Hagerty, Inc. does not currently pay dividends.
Where can I find HGTY SEC filings?
Official SEC filings for Hagerty, Inc. (CIK: 0001840776) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HGTY's EPS?
Hagerty, Inc. has a diluted EPS of $-0.56.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HGTY a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Hagerty, Inc. has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HGTY stock overvalued or undervalued?
Valuation metrics for HGTY: ROE of -5.8% (sector avg: 12%), net margin of -4.1% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy HGTY stock in 2026?
Our dual AI analysis gives Hagerty, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HGTY's free cash flow?
Hagerty, Inc.'s operating cash flow is $16.3M, with capital expenditures of $7.7M. FCF margin is 2.7%.
How does HGTY compare to other Finance stocks?
Vs Finance sector averages: Net margin -4.1% (avg: 25%), ROE -5.8% (avg: 12%), current ratio 1.00 (avg: 1.2).