Hagerty Reports 77% Jump in Adjusted EBITDA Despite GAAP Accounting Headwinds

Hagerty Inc. delivered a robust operational performance in the first quarter, highlighted by a significant 77% surge in adjusted EBITDA. This growth was fueled by record policy additions and a strategic alliance with State Farm, leading the company to reaffirm its 2026 outlook with a trend toward the upper end of its targets. However, the firm reported GAAP net losses and cash flow challenges during the period. These figures were primarily impacted by accounting noise and transition costs related to the Markel fronting arrangement as the company moves to capture full underwriting economics. Analysts suggest that Hagerty's strong core fundamentals outweigh these temporary accounting headwinds. Overall, the results underscore the company's scaling capabilities within the specialty insurance sector despite ongoing structural transitions.