Hagerty, Inc. Earnings Per Share Disclosure
| Year ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| in thousands (except per share amounts) | |||||||||||||||||
| Basic Earnings per Share | |||||||||||||||||
| Net income available to Class A Common Stockholders | $ | 38,683 | $ | 8,900 | $ | 15,881 | |||||||||||
| Weighted average shares of Class A Common Stock outstanding | 94,404 | 87,529 | 84,180 | ||||||||||||||
| Basic earnings per share | $ | 0.41 | $ | 0.10 | $ | 0.19 | |||||||||||
| Diluted Earnings per Share | |||||||||||||||||
| Net income available to Class A Common Stockholders | $ | 127,480 | $ | 8,944 | $ | 31,769 | |||||||||||
| Weighted average shares of Class A Common Stock outstanding | 346,973 | 88,504 | 340,323 | ||||||||||||||
| Diluted earnings per share | $ | 0.37 | $ | 0.10 | $ | 0.09 | |||||||||||
| Net income available to Class A Common Stockholders | |||||||||||||||||
| Net income | $ | 149,225 | $ | 78,303 | $ | 28,179 | |||||||||||
| Net income attributable to non-controlling interest | (100,207) | (61,286) | (7,948) | ||||||||||||||
| Accretion of Series A Convertible Preferred Stock | (7,555) | (7,427) | (3,677) | ||||||||||||||
| Undistributed earnings allocated to Series A Convertible Preferred Stock | (2,780) | (690) | (673) | ||||||||||||||
| Net income available to Class A Common Stockholders, Basic | 38,683 | 8,900 | 15,881 | ||||||||||||||
| Undistributed earnings reallocated to Series A Convertible Preferred Stock | 287 | — | 347 | ||||||||||||||
| Adjustment for potentially dilutive THG units | 88,431 | — | 15,526 | ||||||||||||||
| Adjustment for potentially dilutive Series A Convertible Preferred Stock | — | — | — | ||||||||||||||
| Adjustment for potentially dilutive share-based compensation awards | 79 | 44 | 15 | ||||||||||||||
| Net income available to Class A Common Stockholders, Diluted | $ | 127,480 | $ | 8,944 | $ | 31,769 | |||||||||||
| Weighted Average Shares of Class A Common Stock Outstanding | |||||||||||||||||
| Weighted average shares of Class A Common Stock outstanding, Basic | 94,404 | 87,529 | 84,180 | ||||||||||||||
| Adjustment for potentially dilutive THG units | 251,394 | — | 255,559 | ||||||||||||||
| Adjustment for potentially dilutive Series A Convertible Preferred Stock | — | — | — | ||||||||||||||
| Adjustment for potentially dilutive share-based compensation awards | 1,175 | 975 | 584 | ||||||||||||||
| Weighted average shares of Class A Common Stock outstanding, Diluted | 346,973 | 88,504 | 340,323 | ||||||||||||||
| Year ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| in thousands | |||||||||||||||||
THG units | — | 255,328 | — | ||||||||||||||
| Series A Convertible Preferred Stock | 6,785 | 6,785 | 3,569 | ||||||||||||||
| Unvested shares associated with share-based compensation awards | 3,959 | 4,115 | 3,767 | ||||||||||||||
| Warrants | — | — | 19,484 | ||||||||||||||
| Total | 10,744 | 266,228 | 26,820 | ||||||||||||||
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.