Due to the continued revenue growth and recent geographic expansion of Hagerty's marketplace business, beginning in the fourth quarter of 2025, the Company updated its segment reporting to reflect two operating and reportable segments: Insurance and Marketplace. Previously, the Company operated as a single operating and reportable segment. Prior period segment information has been recast to conform to the current presentation in this Quarterly Report.

The Insurance segment principally includes the Company's reinsurance and MGA operations, as well as its membership, events and media activities which support and enhance its insurance offerings. The Marketplace segment offers a trusted marketplace where automotive enthusiasts can buy, sell, and finance collector cars.

The Company's Chief Executive Officer ("CEO") and Chairman of its Board of Directors ("the Board") acts as the Chief Operating Decision Maker ("CODM"). The CODM evaluates performance and makes resource allocation decisions about the Company's reportable segments using a number of measures, including income before taxes, which is the Company's measure of segment profitability.

The CODM regularly receives information about the significant expenses of each reportable segment, including (i) Losses and loss adjustment expenses, net; (ii) Policy acquisition costs, net; (iii) Underwriting and other insurance expenses; (iv) Selling, general, and administrative expenses; and (v) Interest expense and other, net. These expenses are not regularly used by the CODM on a disaggregated basis for purposes of evaluating segment profitability. The Company does not report total assets by segment for internal or external reporting purposes as the Company's CODM does not receive segment balance sheets or assess performance, make strategic decisions, or allocate resources based on assets.

Income (loss) before taxes for each segment includes an allocation of attributable shared service expenses. Certain corporate expenses are excluded from segment income (loss) before taxes as they are not attributable to the operations of the reportable segments. These unallocated expenses are included in the reconciliation of total segment income (loss) before taxes to consolidated income (loss) before taxes below.


	Three months ended June 30, 2026
	Insurance		Marketplace		Total

REVENUES:	(in thousands)
Earned premium, net	$	251,956	$	—	$	251,956
Commission and fee revenue	23,665		—		23,665
Marketplace revenue	—		39,658		39,658
Membership and other revenue	21,361		—		21,361
Net investment income	10,731		272		11,003
Net investment gains	7,179		—		7,179
Total revenue	314,892		39,930		354,822
EXPENSES:
Losses and loss adjustment expenses, net	110,709		—		110,709
Policy acquisition costs, net	83,641		—		83,641
Underwriting and other insurance expenses	62,947		—		62,947
Selling, general, and administrative expenses	55,931		38,984		94,915
Interest expense and other, net	(1,103)		(106)		(1,209)
Total segment expenses	312,125		38,878		351,003
Segment income before taxes	2,767		1,052		3,819
Corporate expenses					(350)
Interest expense					(1,237)

Income before taxes					$	2,232


	Three months ended June 30, 2025
	Insurance		Marketplace		Total

REVENUES:	(in thousands)
Earned premium, net	$	177,785	$	—	$	177,785
Commission and fee revenue	143,287		—		143,287
Marketplace revenue	—		26,886		26,886
Membership and other revenue	20,741		—		20,741
Net investment income	9,287		129		9,416
Net investment gains	1,194		—		1,194
Total revenue	352,294		27,015		379,309
EXPENSES:
Losses and loss adjustment expenses, net	75,213		—		75,213
Policy acquisition costs, net	82,938		—		82,938
Underwriting and other insurance expenses	1,222		—		1,222
Selling, general, and administrative expenses	131,634		29,165		160,799
Interest expense and other, net	528		(144)		384
Total segment expenses	291,535		29,021		320,556
Segment income (loss) before taxes	60,759		(2,006)		58,753
Corporate expenses					(828)
Interest expense					(1,484)
Change in TRA Liability					(3,078)
Income before taxes					$	53,363


	Six months ended June 30, 2026
	Insurance		Marketplace		Total

REVENUES:	(in thousands)
Earned premium, net	$	491,598	$	—	$	491,598
Commission and fee revenue	40,100		—		40,100
Marketplace revenue	—		65,310		65,310
Membership and other revenue	43,488		—		43,488
Net investment income	20,745		521		21,266
Net investment gains	4,890		—		4,890
Total revenue	600,821		65,831		666,652
EXPENSES:
Losses and loss adjustment expenses, net	208,628		—		208,628
Policy acquisition costs, net	185,563		—		185,563
Underwriting and other insurance expenses	122,535		—		122,535
Selling, general, and administrative expenses	102,797		64,256		167,053
Interest expense and other, net	(1,119)		(263)		(1,382)
Total segment expenses	618,404		63,993		682,397
Segment income (loss) before taxes	(17,583)		1,838		(15,745)
Corporate expenses					(628)
Interest expense					(2,332)

Loss before taxes					$	(18,705)


	Six months ended June 30, 2025
	Insurance		Marketplace		Total

REVENUES:	(in thousands)
Earned premium, net	$	347,140	$	—	$	347,140
Commission and fee revenue	243,574		—		243,574
Marketplace revenue	—		55,972		55,972
Membership and other revenue	41,606		—		41,606
Net investment income	18,170		304		18,474
Net investment gains	879		—		879
Total revenue	651,369		56,276		707,645
EXPENSES:
Losses and loss adjustment expenses, net	146,343		—		146,343
Policy acquisition costs, net	160,271		—		160,271
Underwriting and other insurance expenses	2,579		—		2,579
Selling, general, and administrative expenses	247,575		57,004		304,579
Interest expense and other, net	940		(260)		680
Total segment expenses	557,708		56,744		614,452
Segment income (loss) before taxes	93,661		(468)		93,193
Corporate expenses					(1,093)
Interest expense					(2,877)
Change in TRA Liability					(3,078)
Income before taxes					$	86,145

The following tables present revenues from customer contracts that are recognized in accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC 606"), disaggregated by geographic area, as well as a reconciliation to total revenue for the three and six months ended June 30, 2026 and 2025:


	Three months ended June 30, 2026
	Insurance		Marketplace		Total

	in thousands
United States	$	29,153	$	18,449	$	47,602
International	15,873		17,351		33,224
Total revenue from customer contracts	45,026		35,800		80,826
Earned premium, net	251,956		—		251,956
Net investment income	10,731		272		11,003
Net investment gains	7,179		—		7,179
Finance revenue	—		3,858		3,858
Total revenue	$	314,892	$	39,930	$	354,822


	Three months ended June 30, 2025
	Insurance		Marketplace		Total

	in thousands
United States	$	149,030	$	17,655	$	166,685
International	14,998		6,748		21,746
Total revenue from customer contracts	164,028		24,403		188,431
Earned premium, net	177,785		—		177,785
Net investment income	9,287		129		9,416
Net investment gains	1,194		—		1,194
Finance revenue	—		2,483		2,483
Total revenue	$	352,294	$	27,015	$	379,309


	Six months ended June 30, 2026
	Insurance		Marketplace		Total

	in thousands
United States	$	60,131	$	35,480	$	95,611
International	23,457		22,851		46,308
Total revenue from customer contracts	83,588		58,331		141,919
Earned premium, net	491,598		—		491,598
Net investment income	20,745		521		21,266
Net investment gains	4,890		—		4,890
Finance revenue	—		6,979		6,979
Total revenue	$	600,821	$	65,831	$	666,652


	Six months ended June 30, 2025
	Insurance		Marketplace		Total

	in thousands
United States	$	264,330	$	43,750	$	308,080
International	20,850		7,893		28,743
Total revenue from customer contracts	285,180		51,643		336,823
Earned premium, net	347,140		—		347,140
Net investment income	18,170		304		18,474
Net investment gains	879		—		879
Finance revenue	—		4,329		4,329
Total revenue	$	651,369	$	56,276	$	707,645

Commission and fee revenue is earned through two distribution channels: direct and agent. Revenue earned from the direct distribution channel includes revenue generated by Hagerty's employee agents. Revenue earned from the agent distribution channel includes revenue generated through the Company's insurance distribution partnerships, as well as its relationships with independent agents and brokers. The tables below present the Company's revenue by distribution channel for the three and six months ended June 30, 2026 and 2025:


	Three months ended June 30, 2026
	Agent		Direct		Total

	in thousands
Commission and fee revenue	$	14,534	$	9,000	$	23,534
Contingent commission	(324)		455		131
Total commission and fee revenue	$	14,210	$	9,455	$	23,665


	Three months ended June 30, 2025
	Agent		Direct		Total

	in thousands
Commission and fee revenue	$	69,678	$	58,755	$	128,433
Contingent commission	8,102		6,752		14,854
Total commission and fee revenue	$	77,780	$	65,507	$	143,287


	Six months ended June 30, 2026
	Agent		Direct		Total

	in thousands
Commission and fee revenue	$	24,346	$	12,915	$	37,261
Contingent commission	1,091		1,748		2,839
Total commission and fee revenue	$	25,437	$	14,663	$	40,100


	Six months ended June 30, 2025
	Agent		Direct		Total

	in thousands
Commission and fee revenue	$	118,770	$	98,833	$	217,603
Contingent commission	13,886		12,085		25,971
Total commission and fee revenue	$	132,656	$	110,918	$	243,574

Refer to Note 13 — Reinsurance for information regarding "Earned premium, net", Note 6 — Investments for information regarding "Net investment income" and "Net investment gains", and Note 8 — Notes Receivable for information regarding "Finance revenue".

Contract assets, primarily consisting of CUC receivables, are reported within "Other assets" on the Condensed Consolidated Balance Sheets. As of June 30, 2026 and December 31, 2025, the Company had contract assets of $1.6 million and $18.2 million, respectively. The decrease as of June 30, 2026 is primarily a result of the Markel Fronting Arrangement, as the Company no longer earns a CUC from policies issued by Essentia.

Contract liabilities consist of cash collected in advance of revenue recognition and primarily relates to the unrecognized portion of HDC membership fees, the unrecognized portion of the advanced commission payment received from State Farm Mutual Automobile Insurance Company ("State Farm"), and, to a much lesser extent, cash collected in advance of the completion of marketplace private sales. As of June 30, 2026 and December 31, 2025, the Company had contract liabilities of $50.8 million and $46.5 million, respectively.