Insurance management company Erie Indemnity (NASDAQ:ERIE) fell short of the market’s revenue expectations in Q4 CY2025 as sales rose 2.9% year on year to $951 million. Its GAAP profit of $1.21 per share was 23.9% below analysts’ consensus estimates.
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Erie Indemnity (ERIE) Q4 CY2025 Highlights:
- Revenue: $951 million vs analyst estimates of $975.6 million (2.9% year-on-year growth, 2.5% miss)
- Pre-tax Profit: $82.35 million (8.7% margin)
- EPS (GAAP): $1.21 vs analyst expectations of $1.59 (23.9% miss)
- Market Capitalization: $14.28 billion
Company Overview
Operating under a unique business model dating back to 1925, Erie Indemnity (NASDAQ:ERIE) serves as the attorney-in-fact for Erie Insurance Exchange, managing policy issuance, claims handling, and investment services for this reciprocal insurer.
Revenue Growth
Insurers earn revenue three ways. The core insurance business itself, often called underwriting and represented in the income statement as premiums earned, is one way. Investment income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities is the second way. Fees from various sources such as policy administration, annuities, or other value-added services is the third. Luckily, Erie Indemnity’s revenue grew at a solid 9.9% compounded annual growth rate over the last five years. Its growth surpassed the average insurance company and shows its offerings resonate with customers, a great starting point for our analysis.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Erie Indemnity’s annualized revenue growth of 11.5% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. 
This quarter, Erie Indemnity’s revenue grew by 2.9% year on year to $951 million, falling short of Wall Street’s estimates.
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Key Takeaways from Erie Indemnity’s Q4 Results
We struggled to find many positives in these results. Its EPS missed and its revenue fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 1.6% to $259.50 immediately following the results.
Erie Indemnity didn’t show it’s best hand this quarter, but does that create an opportunity to buy the stock right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).