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Hippo Holdings (HIPO)
NYSE:HIPO
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Hippo Holdings
(NYSE:HIPO)
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Rating:55Neutral
Price Target:―
Hippo Holdings exhibits strong revenue growth and improved operational efficiency, but ongoing net losses and challenges in profitability weigh on the overall score. Technical indicators suggest caution with the stock currently below key moving averages. The negative P/E ratio and lack of dividend yield further dampen valuation attractiveness. Conversely, the positive earnings call sentiment and optimistic guidance for 2025 provide some upside potential.
Positive Factors
Revenue Growth
Strong revenue growth indicates effective market penetration and product acceptance, enhancing long-term business sustainability.
Operational Efficiency
Improved operational efficiency through cost reductions strengthens profitability potential and supports sustainable growth.
Cash Flow Improvement
Improved cash flow enhances financial flexibility, allowing for reinvestment in growth initiatives and risk management.
Negative Factors
Net Profitability Challenges
Ongoing net losses hinder financial health, requiring strategic adjustments to achieve sustainable profitability.
Legacy Portfolio Exposure
Exposure to older, less profitable policies poses risks to financial stability and requires strategic mitigation.
Historical Cash Flow Volatility
Inconsistent cash flow generation may impact long-term financial planning and operational resilience.
Hippo Holdings (HIPO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$875.23M
Dividend YieldN/A
Average Volume (3M)188.31K
Price to Earnings (P/E)―
Beta (1Y)1.66
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. Volume191,049
30 Day Avg. Volume188,307
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)1.83
Price to Sales (P/S)1.78
P/FCF Ratio14.01
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue1.84
Enterprise Value/Gross Profit23.57
Enterprise Value/Ebitda69.24
Forecast
1Y Price Target
$40.50Price Target Upside15.81% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call was marked by significant positive developments, including strategic partnerships, substantial revenue growth, improved profitability, and a positive outlook for future performance. However, challenges in the homeowners insurance market and a reduction in HHIP gross written premium were noted.Q2-2025 Updates
Positive Updates
Strategic Partnership with Baldwin Group
Hippo announced a strategic partnership with Baldwin Group, which is expected to accelerate premium growth and enable faster diversification. This partnership includes distributing Hippo's newly built homeowners product through Baldwin's Westwood Insurance Agency, expanding reach to new home closings.
Positive Net Income from Operating Activities
Hippo achieved positive net income from operating activities for the first time in its history, demonstrating substantial improvement in profitability year-over-year.
Revenue Growth and Operating Leverage
Hippo's revenue grew by 31% year-over-year to $117 million, while fixed expenses decreased by 16%, showcasing improved operating leverage.
Improved Net Loss Ratio
The consolidated net loss ratio improved 46 percentage points year-over-year to 47%, driven by enhanced claim operations and favorable reserve development.
Raised Full Year Guidance
Hippo raised its full-year guidance for several key metrics, including gross written premium and net income, indicating strong future performance expectations.
Negative Updates
Reduction in HHIP Gross Written Premium
While there was growth in new homes channel, it was offset by a reduction in cat exposure from existing homes, resulting in a 9% year-over-year reduction in gross written premium for HHIP.
Challenges in Homeowners Insurance Market
The homeowners insurance market remains challenging due to increasing costs and weather-related events, which may lead to continued rate adjustments.
Company Guidance
In the Q2 2025 earnings call, Hippo provided updated guidance and highlighted key performance metrics. The company reported a 31% increase in revenue to $117 million and a 16% growth in gross written premiums to $299 million. A significant achievement was the improvement in consolidated net loss ratio, which dropped to 47% due to better underwriting and claims operations, alongside favorable reserve developments. Hippo managed to decrease fixed expenses by 16% while growing revenue by over 30% year-over-year. This operational efficiency led to the company posting its first positive net income from operating activities. Looking ahead, Hippo adjusted its full-year 2025 guidance, increasing the lower end of its gross written premium forecast to between $1.07 billion and $1.1 billion. Additionally, the company revised its net income guidance from a loss to a positive range of $35 million to $39 million, driven by improved net loss ratios and a one-time gain from asset sales. The strategic partnership with the Baldwin Group is expected to further enhance premium growth and diversification across business lines.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
34.97
Price Trends
31.48
Positive
28.54
Positive
27.69
Positive
Market Momentum
1.35
Positive
52.36
Neutral
12.31
Positive
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 34.97 is below the 20-day moving average (MA) of 35.44, above the 50-day MA of 31.48, and above the 200-day MA of 27.69, indicating a neutral trend. The MACD of 1.35 indicates Positive momentum. The RSI at 52.36 is Neutral, neither overbought nor oversold. The STOCH value of 12.31 is Positive, 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 | 989.84M | 10.25 | ― | 2.97% | 2.32% | -11.91% | |
72 Outperform | 490.26M | 14.85 | 12.34% | 6.14% | 15.28% | 26.05% | |
72 Outperform | 828.18M | 16.54 | ― | 10.53% | -0.86% | -11.19% | |
59 Neutral | 892.50M | 18.36 | 11.66% | 2.43% | 6.22% | 79.14% | |
55 Neutral | $875.23M | ― | -3.27% | ― | 43.15% | 94.09% | |
51 Neutral | 431.07M | -30.45 | -64.94% | ― | -17.06% | -118.90% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
HIPO
Hippo Holdings
34.75
17.08
96.66%
AMSF
Amerisafe
43.10
-1.48
-3.32%
EIG
Employers Holdings
41.76
-4.96
-10.62%
ITIC
Investors Title Company
258.19
43.00
19.98%
AMBC
Ambac Financial
9.32
-1.87
-16.71%
TIPT
Tiptree Financial
20.18
1.20
6.32%
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.