Hagerty (HGTY) opened 2026 with Q1 revenue of US$311.8 million and a basic EPS loss of US$0.06, as net income swung to a loss of US$6.5 million. The company has seen quarterly revenue shift from US$319.6 million and EPS of US$0.07 in Q1 2025 to US$311.8 million and an EPS loss of US$0.06 in Q1 2026, against a trailing twelve month EPS of US$0.26. This sets up a mixed start to the year, with margins firmly in focus for investors parsing this update.

See our full analysis for Hagerty.

With the headline numbers on the table, the next step is to set these results against the widely followed Hagerty narratives to see which storylines are reinforced and which ones are questioned.

TTM earnings up 43.4% despite Q1 loss

• Over the last 12 months, net income is US$25.7 million with basic EPS of US$0.26, compared with individual quarters that ranged from a profit of US$0.18 per share in Q3 2025 to a Q1 2026 loss of about US$0.06 per share.
• Consensus narrative leans bullish on earnings durability, and the numbers partly back that up while still setting a high bar:
  • TTM earnings growth of 43.4% and five year annualized earnings growth of 53.7% fit with the view that Hagerty can build on its insurance and marketplace footprint, including global auctions and high margin ancillary businesses.
  • At the same time, the move from positive EPS in every 2025 quarter to a loss in Q1 2026 shows that quarterly swings can still cut against the bullish idea of steadily compounding profitability.

For investors trying to connect these earnings to the bigger story on growth and new business lines, the community narrative gives helpful context on how recurring insurance and marketplace revenue might support or challenge this trajectory over time. See what the community is saying about Hagerty

Margins and growth vs rich 40.6x P/E

• Trailing net profit margin sits at 1.8% compared with 1.4% a year earlier, while the stock trades on a 40.6x P/E that is above both the 22x peer average and the 11.4x US insurance industry average.
• Consensus narrative around long term expansion meets a valuation reality check here:
  • Bulls point to margin improvement and high quality earnings, but the current P/E leaves less room for error than peers that operate with lower multiples.
  • The DCF fair value of US$5.45 versus the current US$10.30 share price shows the stock trading above that model, which contrasts with the idea that today’s price fully reflects the long term margin opportunity.

Analyst upside case vs DCF fair value

• Analysts in the dataset have a consensus price target of about US$13.29, roughly 29% above the current US$10.30 share price, while the DCF fair value sits lower at US$5.45.
• This split between bullish and more cautious views gives you a clear sense of the debate:
  • Supporters of the bullish view highlight forecast earnings growth of about 73.7% per year and TTM net income of US$25.7 million as reasons the stock could grow into or beyond the analyst target.
  • More bearish investors can point to the DCF fair value and the high 40.6x P/E to argue that, even with strong earnings growth in the data, the current price already builds in optimistic assumptions.

To see how different investors frame that bull case around earnings growth, margins, and analyst targets, and where they think the upside could eventually cap out, check the detailed bullish narrative next. 🐂 Hagerty Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Hagerty on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With both bullish and cautious views on the table, it can be useful to review the raw figures yourself and stress test the optimism in this update. If you want a quick snapshot of what the market sees as the key positives, take a look at the 3 key rewards

See What Else Is Out There

Hagerty’s Q1 loss, slim 1.8% net margin and 40.6x P/E versus lower peer multiples highlight how much is being asked of this stock today.

If that rich pricing and tight margin profile feels demanding, compare it with companies screened for stronger value and quality by checking the 51 high quality undervalued stocks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.