Hippo Holdings (HIPO)
NYSE:HIPO
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Hippo Holdings
(NYSE:HIPO)
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Rating:69Neutral
Price Target:
$29.00
▲(15.26% Upside)
Action:Downgraded
Date:05/01/26
The score is driven primarily by improving financial performance (turn to sustained profitability and low leverage) and a constructive earnings update (raised 2026 guidance and strong Q1 underwriting results). These positives are tempered by weak technical positioning (below key moving averages), and operating risks highlighted on the call—especially low retention, a still-high expense ratio, and catastrophe sensitivity implied by the full-year combined ratio guidance.
Positive Factors
Sustained Profitability
Hippo's return to sustained profitability (profit in 2025 and TTM with roughly 12% net margin) signals durable underwriting and operating improvements. Consistent profits support capital accumulation, reduce dilution risk, and provide internally generated funds to invest in distribution and tech, strengthening resilience across underwriting cycles.
Negative Factors
Elevated Expense Ratio
A 51.5% net expense ratio materially exceeds management's mid-30s target, indicating persistent operating inefficiency. High expense loads erode underwriting margins and force reliance on scale or cost reduction initiatives; durable margin improvement will take multiple quarters and remains a key execution risk to sustained profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Profitability
Hippo's return to sustained profitability (profit in 2025 and TTM with roughly 12% net margin) signals durable underwriting and operating improvements. Consistent profits support capital accumulation, reduce dilution risk, and provide internally generated funds to invest in distribution and tech, strengthening resilience across underwriting cycles.
Read all positive factors
Hippo Holdings (HIPO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$693.08M
Dividend YieldN/A
Average Volume (3M)163.26K
Price to Earnings (P/E)23.7
Beta (1Y)1.35
Revenue Growth20.77%
EPS GrowthN/A
CountryUS
Employees478
SectorFinancial
Sector Strength70
IndustryInsurance - Specialty
Share Statistics
EPS (TTM)4.46
Shares Outstanding26,035,917
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 Cap0.65
Enterprise Value/Revenue0.93
Enterprise Value/Gross Profit2.31
Enterprise Value/Ebitda3.86
Forecast
1Y Price Target
$35.00Price Target Upside39.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.27
Revenue Forecast (FY)$568.46M
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 makes money primarily through insurance-related revenue streams tied to selling and servicing homeowners insurance and related products. Key sources include: (1) Premiums and underwriting economics: Hippo earns revenue associated with homeow...
Hippo Holdings Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed material positive momentum: very strong gross written premium growth (+58% YoY), continued profitability (fourth consecutive profitable quarter), substantive underwriting improvements (combined ratio 99.5%, large YoY improvement), successful commercial line expansion, technology/AI-driven efficiency gains, and upgraded full-year guidance. Key challenges include low net written premium growth and retention (31% vs 48% prior year), a meaningful Renters unearned premium adjustment, an elevated expense ratio (51.5%) with a multiyear path to reduce it, and a full-year combined ratio guide above 100% (103%–105%) that leaves results sensitive to CAT activity. On balance, the positive operational and growth developments and raised guidance outweigh the near-term accounting/retention and expense challenges.Positive Updates
Strong Top-Line Growth
Gross written premium of $332M in Q1, up 58% year-over-year (from $211M), driven by commercial lines and a return to growth in Homeowners.
Negative Updates
Weak Net Written Premium and Lower Retention
Net written premium grew only 1% YoY to $101M and retention rate fell to 31% from 48% a year ago, largely due to mix shift and deliberate lower retention in faster-growing lines.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Gross written premium of $332M in Q1, up 58% year-over-year (from $211M), driven by commercial lines and a return to growth in Homeowners.
Read all positive updates
Company Guidance
Hippo updated full-year 2026 guidance, raising gross written premium to $1.45–$1.525 billion (from $1.4–$1.5B) and net written premium to $520–$550 million (from $500–$540M), introducing revenue guidance of $560–$570 million (implying +19–22% vs. 2025), keeping a net combined ratio target of 103–105% inclusive of a 13% CAT load, and increasing expected adjusted net income to $48–$56 million (from $45–$55M). These guidance changes build on Q1 momentum — Q1 GWP $332M (↑58% YoY), Q1 net income $7M ($0.27/sh), Q1 adjusted net income $17M ($0.65/sh), Q1 net combined ratio 99.5%, net loss ratio 48% (CAT 4%, non‑CAT 44%), net expense ratio 51.5%, and total shareholder equity of $449M ($17.23/sh) — with management reiterating longer‑term 2028 targets of >$2B GWP, $125M adjusted net income and ~18% adjusted ROE.Hippo Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 479.80M | 468.60M | 372.10M | 209.70M | 119.70M | 91.20M |
| Gross Profit | 194.20M | 238.70M | 74.30M | -83.40M | -59.40M | -14.70M |
| EBITDA | 116.10M | 63.30M | -4.20M | -242.70M | -310.00M | -157.30M |
| Net Income | 112.50M | 57.70M | -40.50M | -273.10M | -333.40M | -371.40M |
Balance Sheet | ||||||
| Total Assets | 2.06B | 1.91B | 1.54B | 1.52B | 1.57B | 1.64B |
| Cash, Cash Equivalents and Short-Term Investments | 519.80M | 250.10M | 197.60M | 490.90M | 640.40M | 784.70M |
| Total Debt | 51.50M | 52.40M | 10.00M | 14.80M | 28.90M | 0.00 |
| Total Liabilities | 1.61B | 1.47B | 1.18B | 1.14B | 975.40M | 781.00M |
| Stockholders Equity | 448.70M | 436.10M | 362.10M | 377.90M | 589.90M | 859.60M |
Cash Flow | ||||||
| Free Cash Flow | 50.10M | 9.10M | 47.20M | -139.10M | -181.20M | -141.90M |
| Operating Cash Flow | 53.30M | 9.20M | 47.50M | -92.40M | -161.50M | -124.50M |
| Investing Cash Flow | 42.30M | -11.20M | 30.30M | 57.60M | -405.90M | -30.00M |
| Financing Cash Flow | 29.00M | 19.30M | -40.10M | -14.60M | -6.80M | 480.80M |
Hippo Holdings Technical Analysis
Negative
25.16
Price Trends
26.76
Negative
28.16
Negative
30.87
Negative
Market Momentum
-0.29
Positive
40.37
Neutral
15.50
Positive
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 27.46, below the 50-day MA of 26.76, and below the 200-day MA of 30.87, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 40.37 is Neutral, neither overbought nor oversold. The STOCH value of 15.50 is Positive, 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $456.48M | 16.91 | 14.03% | 4.20% | 7.19% | 27.90% | |
69 Neutral | $693.08M | 23.71 | 27.46% | ― | 20.77% | ― | |
68 Neutral | $587.86M | 19.19 | 17.85% | 6.64% | 7.83% | -1.76% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $639.44M | 11.22 | 6.01% | 1.31% | -47.59% | -58.70% | |
63 Neutral | $790.83M | 24.21 | 0.83% | 2.94% | 0.41% | -91.81% |
* Financial Sector Average
HIPO
Hippo Holdings
25.81
3.69
16.68%
AMSF
Amerisafe
31.36
-12.44
-28.41%
EIG
Employers Holdings
43.23
-3.91
-8.29%
ITIC
Investors Title Company
238.06
13.83
6.17%
TIPT
Tiptree Financial
16.62
-4.83
-22.53%
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.