HRTGHeritage Insurance Holdings, Inc.

Fire, Marine & Casualty Insurance

Revenue: $847M; 3.7% YoY
Operating margin: 31.5%; 175% YoY
EBITDA: $274M; 182% YoY
Market cap: $1.1B
Employees: 250; $3M revenue each
Net debt / EBITDA: -1.9×; −$516M net debt
AI in 10-K: 1.4; mentions per 10K words

Takeover score 3 of 13

Fixable underperformance 0 of 7

TSR below peersNo
—
3+ of last 5 years
High CEO pay despite TSRNo
$5M median
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
93% of net income
Cash flow under 80% of net income
Dilutive SBCNo
1% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
0% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
0% of assets
Over 40% of assets
Shareholder dissentNo
83% lowest support
Any vote under 80% support

Buyer economics 2 of 4

Low revenue per employeeNo
$3M · 81st pct
Bottom quartile of its SIC industry
Quiet on AINo
1.4 per 10K words · 44th pct
Bottom quartile of AI mentions in 10-Ks
Net cashYes
Net cash · 1.9× EBITDA
More cash than debt, positive EBITDA
Buyout-sizedYes
$1.1B market cap
Market cap $500M–$5B

Catalysts 1 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingYes
−$10M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$632M	$662M	$735M	$817M	$847M	3.7%
Operating income	−$68M	−$157M	$63M	$94M	$267M	185%
Net income	−$75M	−$154M	$45M	$62M	$196M	218%
Operating cash flow	$60M	−$34M	$70M	$87M	$182M	109%
Capex	$1M	$9M	$10M	$8M	$8M	1.9%
Stock-based comp	$1M	$2M	$1M	$3M	$5M	66%
Buybacks	$8M	$7M	$0	$0	—
Dividends	$7M	$5M	$11K	—	—

Deal filings

None.

13D filers

None on file.

Insider trading

Open-market buys, 12 mo: $377K · 2
Open-market sells, 12 mo: $11M · 46
Net: −$10M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2025	$5M	$25M	1626	—
FY2024	$4M	$9M	672	—
FY2023	$5M	$6M	362	—