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 before taxes below.


	Three months ended September 30, 2026
	Insurance		Marketplace		Total

REVENUES:	(in thousands)
Earned premium, net	$	265,113	$	—	$	265,113
Commission and fee revenue	21,586		—		21,586
Marketplace revenue	—		32,164		32,164
Membership and other revenue	21,908		—		21,908
Net investment income	12,284		436		12,720
Net investment gains	751		—		751
Total revenue	321,642		32,600		354,242
EXPENSES:
Losses and loss adjustment expenses, net	90,261		—		90,261
Policy acquisition costs, net	62,214		—		62,214
Underwriting and other insurance expenses	66,716		—		66,716
Selling, general, and administrative expenses	54,575		34,664		89,239
Interest expense and other, net	(1,007)		486		(521)
Total segment expenses	272,759		35,150		307,909
Segment income (loss) before taxes	48,883		(2,550)		46,333
Corporate expenses and other unallocated amounts (1)					(3,527)
Interest expense					(1,407)

Income before taxes					$	41,399

(1) Other unallocated amounts includes a loss related to the write-down of certain fixed assets classified as held-for-sale (refer to Note 1 — Description of Business) and the impairment of a right-of-use asset not attributable to segment operations.


	Three months ended September 30, 2025
	Insurance		Marketplace		Total

REVENUES:	(in thousands)
Earned premium, net	$	187,039	$	—	$	187,039
Commission and fee revenue	137,103		—		137,103
Marketplace revenue	—		34,356		34,356
Membership and other revenue	21,496		—		21,496
Net investment income	9,860		292		10,152
Net investment gains	1,271		—		1,271
Total revenue	356,769		34,648		391,417
EXPENSES:
Losses and loss adjustment expenses, net	78,626		—		78,626
Policy acquisition costs, net	87,411		—		87,411
Underwriting and other insurance expenses	1,500		—		1,500
Selling, general, and administrative expenses	137,367		39,567		176,934
Interest expense and other, net	1,067		636		1,703
Total segment expenses	305,971		40,203		346,174
Segment income (loss) before taxes	50,798		(5,555)		45,243
Corporate expenses					(1,206)
Interest expense					(1,503)
Expense related to TRA Liability					(29,197)
Income before taxes					$	13,337


	Nine months ended September 30, 2026
	Insurance		Marketplace		Total

REVENUES:	(in thousands)
Earned premium, net	$	756,711	$	—	$	756,711
Commission and fee revenue	61,686		—		61,686
Marketplace revenue	—		97,474		97,474
Membership and other revenue	65,396		—		65,396
Net investment income	33,029		957		33,986
Net investment gains	5,641		—		5,641
Total revenue	922,463		98,431		1,020,894
EXPENSES:
Losses and loss adjustment expenses, net	298,889		—		298,889
Policy acquisition costs, net	247,777		—		247,777
Underwriting and other insurance expenses	189,251		—		189,251
Selling, general, and administrative expenses	157,372		98,920		256,292
Interest expense and other, net	(2,126)		223		(1,903)
Total segment expenses	891,163		99,143		990,306
Segment income (loss) before taxes	31,300		(712)		30,588
Corporate expenses and other unallocated amounts (1)					(4,155)
Interest expense					(3,739)

Income before taxes					$	22,694


	Nine months ended September 30, 2025
	Insurance		Marketplace		Total

REVENUES:	(in thousands)
Earned premium, net	$	534,179	$	—	$	534,179
Commission and fee revenue	380,677		—		380,677
Marketplace revenue	—		90,328		90,328
Membership and other revenue	63,102		—		63,102
Net investment income	28,030		596		28,626
Net investment gains	2,150		—		2,150
Total revenue	1,008,138		90,924		1,099,062
EXPENSES:
Losses and loss adjustment expenses, net	224,969		—		224,969
Policy acquisition costs, net	247,682		—		247,682
Underwriting and other insurance expenses	4,079		—		4,079
Selling, general, and administrative expenses	384,942		96,571		481,513
Interest expense and other, net	2,007		376		2,383
Total segment expenses	863,679		96,947		960,626
Segment income (loss) before taxes	144,459		(6,023)		138,436
Corporate expenses					(2,299)
Interest expense					(4,380)
Expense related to TRA Liability					(32,275)
Income before taxes					$	99,482

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 nine months ended September 30, 2026 and 2025:


	Three months ended September 30, 2026
	Insurance		Marketplace		Total

	in thousands
United States	$	30,885	$	27,695	$	58,580
International	12,609		54		12,663
Total revenue from customer contracts	43,494		27,749		71,243
Earned premium, net	265,113		—		265,113
Net investment income	12,284		436		12,720
Net investment gains	751		—		751
Finance revenue	—		4,415		4,415
Total revenue	$	321,642	$	32,600	$	354,242


	Three months ended September 30, 2025
	Insurance		Marketplace		Total

	in thousands
United States	$	147,039	$	29,788	$	176,827
International	11,560		1,567		13,127
Total revenue from customer contracts	158,599		31,355		189,954
Earned premium, net	187,039		—		187,039
Net investment income	9,860		292		10,152
Net investment gains	1,271		—		1,271
Finance revenue	—		3,001		3,001
Total revenue	$	356,769	$	34,648	$	391,417


	Nine months ended September 30, 2026
	Insurance		Marketplace		Total

	in thousands
United States	$	91,016	$	63,175	$	154,191
International	36,066		22,905		58,971
Total revenue from customer contracts	127,082		86,080		213,162
Earned premium, net	756,711		—		756,711
Net investment income	33,029		957		33,986
Net investment gains	5,641		—		5,641
Finance revenue	—		11,394		11,394
Total revenue	$	922,463	$	98,431	$	1,020,894


	Nine months ended September 30, 2025
	Insurance		Marketplace		Total

	in thousands
United States	$	411,369	$	73,538	$	484,907
International	32,410		9,460		41,870
Total revenue from customer contracts	443,779		82,998		526,777
Earned premium, net	534,179		—		534,179
Net investment income	28,030		596		28,626
Net investment gains	2,150		—		2,150
Finance revenue	—		7,330		7,330
Total revenue	$	1,008,138	$	90,924	$	1,099,062

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 nine months ended September 30, 2026 and 2025:


	Three months ended September 30, 2026
	Agent		Direct		Total

	in thousands
Commission and fee revenue	$	13,011	$	7,753	$	20,764
Contingent commission	401		421		822
Total commission and fee revenue	$	13,412	$	8,174	$	21,586


	Three months ended September 30, 2025
	Agent		Direct		Total

	in thousands
Commission and fee revenue	$	67,685	$	54,049	$	121,734
Contingent commission	8,466		6,903		15,369
Total commission and fee revenue	$	76,151	$	60,952	$	137,103


	Nine months ended September 30, 2026
	Agent		Direct		Total

	in thousands
Commission and fee revenue	$	37,357	$	20,668	$	58,025
Contingent commission	1,492		2,169		3,661
Total commission and fee revenue	$	38,849	$	22,837	$	61,686


	Nine months ended September 30, 2025
	Agent		Direct		Total

	in thousands
Commission and fee revenue	$	186,455	$	152,882	$	339,337
Contingent commission	22,352		18,988		41,340
Total commission and fee revenue	$	208,807	$	171,870	$	380,677

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 September 30, 2026 and December 31, 2025, the Company had contract assets of $2.4 million and $18.2 million, respectively. The decrease as of September 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 relate 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 September 30, 2026 and December 31, 2025, the Company had contract liabilities of $51.6 million and $46.5 million, respectively.