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Hippo Holdings (HIPO)
NYSE:HIPO
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Hippo Holdings
(NYSE:HIPO)
Rating:55Neutral
Price Target:―
Positive Factors
Earnings
Hippo reported significant improvement in EPS driven by top-line acceleration and increased risk participation among fronting programs.
Guidance
Hippo raised its 2025 guidance, expecting approximately 25% top-line growth and adjusted net income profitability.
Negative Factors
Net Loss Ratio
Hippo reported a first-quarter earnings decline as the LA wildfires contributed 51 points to the total company net loss ratio.
Profitability
There is a wait for more consistent profitability and greater visibility into top-line growth, leading to a maintained Market Perform rating.
Hippo Holdings (HIPO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$734.07M
Dividend YieldN/A
Average Volume (3M)186.97K
Price to Earnings (P/E)―
Beta (1Y)1.65
Revenue Growth43.15%
EPS Growth94.09%
CountryUS
Employees478
SectorFinancial
Sector Strength70
IndustryInsurance - Specialty
Share Statistics
EPS (TTM)0.05
Shares Outstanding25,028,053
10 Day Avg. Volume208,847
30 Day Avg. Volume186,966
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue1.84
Enterprise Value/Gross Profit23.57
Enterprise Value/Ebitda69.24
Forecast
1Y Price Target
$35.67Price Target Upside13.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Hippo Holdings Business Overview & Revenue Model
Company DescriptionHippo 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. The company distributes insurance products and services through its technology platform; and offers its policies online, over the phone, or through licensed insurance agents. It provides care and protection for homeowners, as well as operates an integrated home protection platform. The company is headquartered in Palo Alto, California.
How the Company Makes MoneyHippo Holdings makes money primarily through underwriting homeowners insurance policies. The company generates revenue by collecting premiums from policyholders in exchange for providing insurance coverage. Hippo differentiates itself by using advanced data analytics and technology to assess risk and price policies more accurately than traditional insurers. Additionally, Hippo partners with reinsurers to manage its risk exposure, allowing it to share a portion of the premiums in exchange for risk transfer. The company may also earn revenue from investment income generated by investing the premiums it collects. Key factors contributing to Hippo's earnings include its ability to attract and retain policyholders, its underwriting expertise, the efficiency of its technology platform, and its strategic partnerships with reinsurers.
Hippo Holdings Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: 13.34%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements in revenue growth, profitability, and strategic partnerships, indicating a strong positive outlook. Despite some challenges in the HHIP segment and continued exposure to catastrophe losses, the overall sentiment was positive with substantial improvements in key financial metrics.Q2-2025 Updates
Positive Updates
Transformative Partnership and Strategic Plan
Hippo announced a new partnership with the Baldwin Group, expected to accelerate premium growth and diversification across lines of business, tripling market access through Baldwin's Westwood Insurance Agency.
Significant Revenue and Premium Growth
Revenue grew 31% year-over-year to $117 million, driven by gross earned premium growth of 12%. Gross written premium grew 16% to $299 million.
Improved Profitability and Net Income
Hippo posted positive net income from operating activities for the first time, achieving $1 million in Q2, a $41 million improvement year-over-year.
Operational Efficiency and Cost Reduction
Fixed expenses decreased by 16%, contributing to improved operating leverage as revenue growth outpaced expense growth.
Enhanced Underwriting Profitability
Consolidated net loss ratio improved to 47%, a 46 percentage point improvement year-over-year, supported by favorable reserve developments.
Negative Updates
Challenges in HHIP Gross Written Premium
HHIP saw a 9% year-over-year reduction in gross written premium due to a mixed trend, with growth in new homes channel offset by reduction in cat exposure from existing homes.
Catastrophe Loss Expectations
Guidance for catastrophe loss ratio remains high at 15% in Q3 and 11% in Q4 for HHIP, indicating continued exposure to weather-related events.
Company Guidance
During the Hippo Q2 2025 earnings call, detailed guidance was provided, highlighting several key financial metrics and strategic initiatives. The company raised its full-year guidance for gross written premiums to between $1.07 billion and $1.1 billion, driven by stronger performance in newly launched programs. Revenue for the full year is expected to range from $460 million to $465 million, while the consolidated net loss ratio guidance was improved to between 67% and 69%, reflecting positive loss trends. Hippo also achieved a 31% revenue growth to $117 million in Q2, and a significant improvement in profitability, with net income reaching $1 million, a $41 million increase year-over-year. Additionally, the company reported a consolidated net loss ratio of 47% for the quarter, and fixed expenses decreased by 16% as revenue grew. The strategic partnership with the Baldwin Group aims to triple market access and accelerate premium growth, further supporting Hippo's goal of achieving over $2 billion in gross written premiums by 2028.Hippo Holdings Financial Statement Overview
Summary
Hippo Holdings shows strong revenue growth and improved operational efficiency, with a significant increase in EBIT margin. However, challenges in achieving net profitability persist, as indicated by ongoing net losses. The balance sheet is stable with no debt, but the company struggles to generate sufficient returns on equity. Positive cash flow changes are encouraging, yet past fluctuations highlight potential concerns. Enhancing profitability and cash flow stability is crucial for future financial health.Income Statement
Hippo Holdings has demonstrated notable revenue growth of 77.4% in 2024, reflecting robust top-line expansion. However, net profitability remains a challenge, with a negative net profit margin of -10.88% due to persistent losses. The EBIT margin has improved significantly to 58.98%, indicating better operational efficiency. Despite these improvements, the absence of EBITDA data limits comprehensive margin analysis.60
Neutral
Balance Sheet
The company maintains a strong equity base with an equity ratio of 23.47%, although this has decreased from previous years. The debt-to-equity ratio stands at 0, highlighting negligible leverage, which is beneficial in minimizing financial risk. However, the negative ROE of -11.18% signals inefficiency in generating returns for shareholders, impacting the balance sheet strength.50
Neutral
Cash Flow
The cash flow statement shows a positive turnaround in free cash flow, growing from a negative position in previous years to $47.2 million in 2024. The operating cash flow to net income ratio is robust at 1.17, indicating effective cash generation relative to net income. However, historical volatility in cash flows suggests potential sustainability risks.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 425.00M | 372.10M | 209.70M | 119.70M | 91.20M | 51.60M |
| Gross Profit | 33.20M | 74.30M | 209.70M | 119.70M | 91.20M | 51.60M |
| EBITDA | 11.30M | -4.20M | 0.00 | -310.00M | -356.20M | -110.50M |
| Net Income | -10.70M | -40.50M | -273.10M | -326.50M | -367.90M | -141.40M |
Balance Sheet | ||||||
| Total Assets | 1.71B | 1.54B | 1.52B | 1.57B | 1.64B | 979.40M |
| Cash, Cash Equivalents and Short-Term Investments | 454.00M | 197.60M | 142.10M | 519.30M | 784.70M | 452.30M |
| Total Debt | 54.00M | 10.00M | 14.80M | 28.90M | 0.00 | 273.00M |
| Total Liabilities | 1.37B | 1.18B | 1.14B | 975.40M | 19.90M | 279.10M |
| Stockholders Equity | 332.50M | 362.10M | 377.90M | 589.90M | 859.60M | -199.60M |
Cash Flow | ||||||
| Free Cash Flow | 35.10M | 47.20M | -139.10M | -181.20M | -141.90M | -74.80M |
| Operating Cash Flow | 29.50M | 47.50M | -92.40M | -161.50M | -124.50M | -65.40M |
| Investing Cash Flow | -22.70M | 30.30M | 57.60M | -405.90M | -30.00M | -2.30M |
| Financing Cash Flow | -1.20M | -40.10M | -14.60M | -6.80M | 480.80M | 518.10M |
Hippo Holdings Technical Analysis
Positive
31.35
Price Trends
27.51
Positive
25.63
Positive
26.56
Positive
Market Momentum
0.84
Negative
65.79
Neutral
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HIPO, the sentiment is Positive. The current price of 31.35 is above the 20-day moving average (MA) of 27.47, above the 50-day MA of 27.51, and above the 200-day MA of 26.56, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 65.79 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HIPO.
Hippo Holdings Risk Analysis
Hippo Holdings disclosed 75 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
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $991.01M | 10.26 | 9.60% | 2.92% | 2.32% | -11.91% | |
72 Outperform | $451.13M | 13.67 | 12.55% | 6.48% | 15.28% | 26.05% | |
72 Outperform | $863.69M | 17.25 | 17.80% | 9.94% | -0.86% | -11.19% | |
68 Neutral | $17.48B | 11.72 | 10.44% | 3.82% | 10.01% | 1.29% | |
65 Neutral | $856.13M | 17.61 | 11.98% | 1.05% | 6.22% | 79.14% | |
55 Neutral | $734.07M | ― | -3.27% | ― | 43.15% | 94.09% | |
49 Neutral | $373.53M | 64.08 | -4.09% | ― | -17.06% | -118.90% |
* Financial Sector Average
Performance Comparison
HIPO
Hippo Holdings
31.35
12.51
66.40%
AMSF
Amerisafe
46.10
2.61
6.00%
EIG
Employers Holdings
42.39
-2.46
-5.48%
ITIC
Investors Title Company
244.61
39.23
19.10%
AMBC
Ambac Financial
8.22
-3.11
-27.45%
TIPT
Tiptree Financial
22.96
4.64
25.33%
Hippo Holdings Corporate Events
Business Operations and Strategy
Hippo Holdings Terminates Palo Alto Lease Agreement
Neutral
Apr 18, 2025
On April 14, 2025, Hippo Analytics Inc. entered into a Second Amendment to Lease with Tallwood Forest, LLC, terminating their lease agreement for the property at 150 Forest Ave., Palo Alto, California. The company agreed to surrender the property and make a one-time lease termination payment of $1,438,411. Hippo Analytics is in the process of securing new office space in San Jose, CA, which is expected to lead to significant annual cost savings.
Spark’s Take on HIPO Stock
According to Spark, TipRanks’ AI Analyst, HIPO is a Neutral.
Hippo Holdings’ overall score of 62 reflects strong technical indicators and positive earnings call sentiment, offset by valuation concerns due to ongoing losses and a negative P/E ratio. The company shows promising revenue growth and operational improvements but faces challenges in achieving profitability. The stock’s technical outlook is stable, supporting a moderate investment potential.
To see Spark’s full report on HIPO stock, click here.
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.