Shares of Hagerty Inc. (HGTY) surged 5.18% in early trading on Tuesday after the specialty vehicle insurer reported better-than-expected third-quarter results and raised its full-year 2025 outlook.

For the third quarter, Hagerty posted adjusted earnings per share of $0.13, significantly beating the analyst consensus estimate of $0.08. Revenue for the quarter came in at $380 million, also surpassing expectations of $354.75 million. The company's strong performance was driven by an 18% year-over-year increase in total revenue and a 240% jump in operating income to $34.3 million.

In light of the robust results, Hagerty raised its full-year 2025 guidance. The company now expects total revenue growth of 14-15%, up from its previous forecast of 13-14%. Net income growth is projected to be 58-65%, while adjusted EBITDA growth is anticipated to be 37-41%. The improved outlook reflects Hagerty's strong business momentum and expanding margins.

CEO McKeel Hagerty commented on the results, stating, "We delivered high rates of growth through the third quarter of 2025 with year-to-date revenue gains of 18%. Margins continued to expand as we scale up our business while maintaining tight cost discipline, resulting in year-to-date net income growth of 73%, and Adjusted EBITDA gains of 46%."

The company also highlighted its new partnership with Liberty Mutual, the seventh largest auto insurer in the United States, which is expected to enhance Hagerty's market position. This strategic alliance, combined with the strong financial performance and improved outlook, appears to have fueled investor enthusiasm, leading to the significant stock price increase.