Shares of Hagerty (NYSE: HGTY) surged 5.64% in pre-market trading on Monday following the company's announcement of better-than-expected second-quarter results and an improved outlook for 2025. The specialty insurance provider for classic and enthusiast vehicles demonstrated robust growth across key financial metrics, surpassing analyst expectations.

Hagerty reported a second-quarter revenue of $368.7 million, marking an 18% increase year-over-year and beating the analyst consensus estimate of $347.2 million. The company's adjusted earnings per share (EPS) came in at $0.13, exceeding the expected $0.11 and showing an 8.33% improvement from the same period last year. Net income for the quarter rose to $47.2 million, while operating income climbed 25% to $47.7 million compared to the previous year.

The strong performance was driven by several factors, including an 11% increase in written premiums and a remarkable 327% surge in marketplace revenue. In light of these results, Hagerty has raised its full-year 2025 outlook, now anticipating total revenue growth of 13-14%, net income growth of 43-53%, and adjusted EBITDA growth of 30-38%. The company also announced a non-binding letter of intent with Markel, potentially strengthening its market position. These positive developments have clearly resonated with investors, leading to the significant pre-market stock price increase.