Hippo Holdings (HIPO)
NYSE:HIPO
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Hippo Holdings
(NYSE:HIPO)
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Rating:65Neutral
Price Target:
$29.00
▲(15.26% Upside)
Action:ReiteratedDate:03/06/26
The score is driven primarily by the improved financial profile (profitability turnaround and stronger balance sheet) and upbeat 2026 guidance. These positives are moderated by weak technicals (price below key moving averages with negative MACD) and uneven cash-flow reliability, while valuation appears reasonable on a ~13x P/E.
Positive Factors
GWP growth and guidance
Management's guidance to expand gross written premium materially in 2026 reflects durable top-line scaling and success diversifying distribution. Sustained GWP growth improves risk pooling, fixed-cost absorption and strategic optionality to invest in underwriting and technology over the next 2–6 months and beyond.
Negative Factors
GAAP underwriting losses persist
A 113% combined ratio means underwriting remains loss-making on a GAAP basis despite improvements. Persisting underwriting deficits require sustained pricing, portfolio or reinsurance changes to reach profitability on an underwriting basis; otherwise gains depend more on investment or one-time items.
Read all positive and negative factors
Positive Factors
Negative Factors
GWP growth and guidance
Management's guidance to expand gross written premium materially in 2026 reflects durable top-line scaling and success diversifying distribution. Sustained GWP growth improves risk pooling, fixed-cost absorption and strategic optionality to invest in underwriting and technology over the next 2–6 months and beyond.
Read all positive factors
Hippo Holdings (HIPO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$662.26M
Dividend YieldN/A
Average Volume (3M)163.26K
Price to Earnings (P/E)13.2
Beta (1Y)1.35
Revenue Growth34.48%
EPS GrowthN/A
CountryUS
Employees478
SectorFinancial
Sector Strength70
IndustryInsurance - Specialty
Share Statistics
EPS (TTM)0.23
Shares Outstanding25,970,978
10 Day Avg. Volume117,631
30 Day Avg. Volume163,257
Financial Highlights & Ratios
PEG Ratio-0.06
Price to Book (P/B)1.74
Price to Sales (P/S)1.62
P/FCF Ratio83.48
Enterprise Value/Market Cap0.74
Enterprise Value/Revenue1.05
Enterprise Value/Gross Profit3.45
Enterprise Value/Ebitda7.78
Forecast
1Y Price Target
$30.00Price Target Upside19.24% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)0.29
Revenue Forecast (FY)$589.40M
Hippo Holdings Business Overview & Revenue Model
Company Description
Hippo Holdings Inc. provides home protection insurance in the United States and the District of Columbia. Its insurance products include homeowners' insurance against risks of fire, wind, and theft; and commercial and personal lines of products. T...
How the Company Makes Money
Hippo Holdings generates revenue primarily through the sale of home insurance policies. The company's revenue model is based on underwriting premiums from policyholders, which are collected on an annual or monthly basis. Key revenue streams includ...
Hippo Holdings Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and strategic picture: strong top-line growth (GWP +24% to >$1.1B), impressive expansion in casualty and commercial multi-peril, meaningful improvements in loss and expense ratios, and constructive 2026 guidance including a materially higher adjusted net income target. Offsetting this progress are persistent GAAP underwriting losses (113% combined ratio for the year), a continued homeowner book contraction during the repositioning, wildfire-related catastrophe impacts and some program-level underperformance. Overall, management conveyed confidence in diversification, underwriting improvements, and profitability targets while acknowledging areas of ongoing transition and risk.Positive Updates
Record Annual Gross Written Premium
Generated over $1.1 billion of gross written premium in 2025, up 24% year over year — the first time exceeding $1.1B.
Negative Updates
Homeowners Decline and Channel Reset
Homeowners GWP fell ~10% for 2025 to $379 million and declined 5% in Q4; homeowners net written premium was down 17% for the year (3% in the quarter). Homeowners share of GWP dropped materially to 34% from 47%.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual Gross Written Premium
Generated over $1.1 billion of gross written premium in 2025, up 24% year over year — the first time exceeding $1.1B.
Read all positive updates
Company Guidance
Management guided 2026 GWP to grow 27–36% to $1.4–$1.5 billion (vs. >$1.1B in 2025) and net written premium to rise 19–28% to $500–$540 million (2025: $422M); they expect net combined ratio to improve 8–10 points to 103–105% (2025: 113%), assuming a 13% catastrophe loss ratio (vs. 15% in 2025), and forecast adjusted net income of $45–$55 million for 2026 (vs. $18M in 2025) while no longer providing GAAP net income guidance; they also expect stock‑based compensation plus depreciation & amortization of ~ $41M in 2026 (down from $50M in 2025), and reiterated longer‑term 2028 targets of > $2.0B GWP, $125M adjusted net income, and an 18% adjusted ROE.Hippo Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 468.60M | 372.10M | 209.70M | 119.70M | 91.20M |
| Gross Profit | 238.70M | 74.30M | -83.40M | -59.40M | -14.70M |
| EBITDA | 63.30M | -4.20M | -242.70M | -310.00M | -157.30M |
| Net Income | 57.70M | -40.50M | -273.10M | -333.40M | -371.40M |
Balance Sheet | |||||
| Total Assets | 1.91B | 1.54B | 1.52B | 1.57B | 1.64B |
| Cash, Cash Equivalents and Short-Term Investments | 250.10M | 197.60M | 490.90M | 640.40M | 784.70M |
| Total Debt | 52.40M | 10.00M | 14.80M | 28.90M | 0.00 |
| Total Liabilities | 1.47B | 1.18B | 1.14B | 975.40M | 781.00M |
| Stockholders Equity | 436.10M | 362.10M | 377.90M | 589.90M | 859.60M |
Cash Flow | |||||
| Free Cash Flow | 9.10M | 47.20M | -139.10M | -181.20M | -141.90M |
| Operating Cash Flow | 9.20M | 47.50M | -92.40M | -161.50M | -124.50M |
| Investing Cash Flow | -11.20M | 30.30M | 57.60M | -405.90M | -30.00M |
| Financing Cash Flow | 19.30M | -40.10M | -14.60M | -6.80M | 480.80M |
Hippo Holdings Technical Analysis
Negative
25.16
Price Trends
27.54
Negative
29.41
Negative
30.82
Negative
Market Momentum
-0.51
Negative
41.21
Neutral
39.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HIPO, the sentiment is Negative. The current price of 25.16 is below the 20-day moving average (MA) of 25.75, below the 50-day MA of 27.54, and below the 200-day MA of 30.82, indicating a bearish trend. The MACD of -0.51 indicates Negative momentum. The RSI at 41.21 is Neutral, neither overbought nor oversold. The STOCH value of 39.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HIPO.
Hippo Holdings Risk Analysis
Hippo Holdings disclosed 74 risk factors in its most recent earnings report. Hippo Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hippo Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $428.97M | 13.39 | 13.19% | 4.20% | 13.47% | 26.15% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $662.26M | 13.17 | 15.26% | ― | 34.48% | ― | |
63 Neutral | $635.27M | 15.46 | 17.91% | 6.64% | -1.73% | -18.36% | |
59 Neutral | $821.56M | 95.96 | 1.04% | 2.94% | 1.69% | -52.43% | |
49 Neutral | $629.52M | 19.65 | 4.37% | 1.31% | 4.44% | 22.40% |
* Financial Sector Average
HIPO
Hippo Holdings
25.50
1.73
7.28%
AMSF
Amerisafe
33.80
-12.37
-26.79%
EIG
Employers Holdings
42.17
-4.06
-8.78%
ITIC
Investors Title Company
227.26
0.46
0.20%
TIPT
Tiptree Financial
16.62
-5.25
-24.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.