Hagerty Q3 2026: Adjusted EPS Beats Expectations as Profit Returns
As seen on the 24/7 Wall St. homepage on November 3, 2026.
Two quarters of losses ended with a profit beating expectations, and management raised full-year adjusted EBITDA guidance to $305 million to $315 million from $270 million to $280 million. With the Markel transitional cost drag shrinking in Q4, reported numbers finally start matching the written premium growth underneath.
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Hagerty ended a two-quarter losing streak with adjusted diluted EPS of $0.10 in Q3 2026, comfortably beating expectations. Reported revenue fell 6.8% year over year while still clearing estimates.
That year-over-year revenue decline is largely a bookkeeping consequence of the Markel Fronting Arrangement, which took effect January 1, 2026, and eliminates Markel-related commission revenue in consolidation. Underneath that accounting change, the business is growing sharply: earned premium surged 42% to $265.11 million.
Adjusted EBITDA rose 64% to $97.05 million as the transitional cost drag tied to the Markel arrangement fades with 2025 policy expirations. That shrinking headwind let management raise full-year adjusted EBITDA guidance to $305 million to $315 million.
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Membership growth is providing the volume foundation behind the financial turnaround. Hagerty added a record 402,000 new members in the first nine months of 2026, pushing policies in force up 18% to 1.9 million.
CEO McKeel Hagerty cited record Monterey car week sales as evidence that the broader Hagerty ecosystem is contributing beyond core insurance. Broad Arrow Capital's loan portfolio balance grew 62% to $162 million, adding another revenue stream scaling alongside the membership base.
Sources
Mentioned: HGTY