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Hippo Holdings
(NYSE:HIPO)
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Rating:76Outperform
Price Target:
$34.00
▲(22.48% Upside)
Action:Reiterated
Date:07/31/26
HIPO scores well primarily due to improved financial performance (turnaround to profitability with strong growth and a low-leverage balance sheet) and a bullish earnings call with raised 2026 guidance and better combined-ratio outlook. Valuation also supports the score given the low P/E, while technicals are moderately positive but less conclusive longer-term, and recent corporate events are incremental rather than major catalysts.
Positive Factors
Profitability Turnaround
Hippo's shift to sustained profitability and materially improved margins provides durable earnings insulation versus earlier loss years. Strong operating margins improve ROE and internal funding capacity, enabling reinvestment in underwriting, reinsurance and tech without constant external capital.
Negative Factors
Margin Volatility
Significant gross margin compression signals pressure from underwriting, claims or product mix changes that can erode the durability of recent profitability. If margins remain volatile, cash conversion and the ability to self‑fund growth or absorb catastrophe losses will be less predictable over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Turnaround
Hippo's shift to sustained profitability and materially improved margins provides durable earnings insulation versus earlier loss years. Strong operating margins improve ROE and internal funding capacity, enabling reinvestment in underwriting, reinsurance and tech without constant external capital.
Read all positive factors
Hippo Holdings (HIPO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$829.95M
Dividend YieldN/A
Average Volume (3M)163.26K
Price to Earnings (P/E)6.6
Beta (1Y)1.54
Revenue Growth19.34%
EPS GrowthN/A
CountryUS
Employees540
SectorFinancial
Sector Strength70
IndustryInsurance - Specialty
Share Statistics
EPS (TTM)4.80
Shares Outstanding26,389,381
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$38.67Price Target Upside39.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)0.77
Revenue Forecast (FY)$581.05M
Hippo Holdings Business Overview & Revenue Model
Company Description
Hippo Holdings Inc. delivers comprehensive home protection insurance solutions across the United States and the District of Columbia. Their product lineup features homeowners' insurance, providing coverage for risks such as fire, wind, and theft, ...
How the Company Makes Money
Hippo makes money primarily through insurance-related revenues tied to selling and servicing homeowners insurance policies. Key revenue streams include: (1) Premiums and insurance revenue: Hippo earns revenue from premiums on policies where it (th...
Hippo Holdings Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call presented a strong operating quarter with significant growth in GWP and net written premium, improved underwriting and expense discipline, raised guidance, and meaningful reinsurance and technology initiatives that reduce volatility and support scalable growth. Notable caveats include a shift in product mix with homeowners representing a smaller share, retention variability from reinsurance timing, concentration of casualty growth in a single long-tenured partner, and an acknowledged softer competitive environment in homeowners and commercial property which could moderate rate trends. On balance, the positives around profitably scaling the business, improved combined ratio, upgraded guidance, and risk-management actions outweigh the highlighted risks.Positive Updates
Strong Top- and Bottom-Line Growth
Q2 gross written premium (GWP) $482M, up 61% YoY; revenue $145M, up 23% YoY; net written premium $183M, up 71% YoY. Q2 net income $10M (nearly 8x YoY) and adjusted net income $21M, up 24% YoY.
Negative Updates
Lower Prior-Accident-Year Reserve Benefit
Prior accident year reserve development was only 2% in Q2 versus ~7% in Q2 last year, reducing the reserve benefit that helped prior-period results.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top- and Bottom-Line Growth
Q2 gross written premium (GWP) $482M, up 61% YoY; revenue $145M, up 23% YoY; net written premium $183M, up 71% YoY. Q2 net income $10M (nearly 8x YoY) and adjusted net income $21M, up 24% YoY.
Read all positive updates
Company Guidance
Management raised full‑year 2026 guidance to gross written premium of $1.65–$1.70 billion (from $1.45–$1.525B), net written premium $565–$580 million (from $520–$550M), revenue $580–$585 million (from $560–$570M), and adjusted net income $62–$70 million (from $48–$56M); they also tightened net combined ratio guidance to 99–101% (from 103–105%) and lowered the assumed CAT loss ratio to 10% (from 13%), while maintaining expected stock‑based compensation and depreciation & amortization of roughly $42 million. Management expects full‑year retention in the low‑20s (casualty to settle in the mid‑teens) and raised its long‑term targets to >$2.5 billion of GWP by 2028 (implying ~32% CAGR) and adjusted net income of >$140 million in 2028.Hippo Holdings Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
83
Very Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 507.20M | 468.60M | 372.10M | 209.70M | 119.70M | 91.20M |
| Gross Profit | 239.10M | 238.70M | 74.30M | -83.40M | -59.40M | -14.70M |
| EBITDA | 123.10M | 83.70M | -4.20M | -242.70M | -310.00M | -157.30M |
| Net Income | 121.30M | 57.70M | -40.50M | -273.10M | -333.40M | -371.40M |
Balance Sheet | ||||||
| Total Assets | 2.32B | 1.91B | 1.54B | 1.52B | 1.57B | 1.64B |
| Cash, Cash Equivalents and Short-Term Investments | 444.80M | 472.00M | 197.60M | 490.90M | 640.40M | 784.70M |
| Total Debt | 50.70M | 52.40M | 10.00M | 14.80M | 28.90M | 0.00 |
| Total Liabilities | 1.85B | 1.47B | 1.18B | 1.14B | 975.40M | 781.00M |
| Stockholders Equity | 465.60M | 436.10M | 362.10M | 377.90M | 589.90M | 859.60M |
Cash Flow | ||||||
| Free Cash Flow | 67.90M | 9.10M | 47.20M | -139.10M | -181.20M | -141.90M |
| Operating Cash Flow | 71.70M | 9.20M | 47.50M | -92.40M | -161.50M | -124.50M |
| Investing Cash Flow | -13.00M | -11.20M | 30.30M | 57.60M | -405.90M | -30.00M |
| Financing Cash Flow | -12.90M | 19.30M | -40.10M | -14.60M | -6.80M | 480.80M |
Hippo Holdings Technical Analysis
Positive
27.76
Price Trends
27.93
Positive
27.37
Positive
29.16
Positive
Market Momentum
1.37
Negative
63.89
Neutral
75.30
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 27.76 is below the 20-day moving average (MA) of 30.17, below the 50-day MA of 27.93, and below the 200-day MA of 29.16, indicating a bullish trend. The MACD of 1.37 indicates Negative momentum. The RSI at 63.89 is Neutral, neither overbought nor oversold. The STOCH value of 75.30 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 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $829.95M | 6.55 | 27.38% | ― | 19.34% | ― | |
74 Outperform | $546.18M | 14.34 | 14.03% | 3.71% | 7.19% | 27.90% | |
73 Outperform | $538.29M | 11.62 | 18.37% | 8.55% | 9.54% | -5.60% | |
68 Neutral | $661.75M | 1.70 | 68.25% | 1.35% | -73.08% | -226.17% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $907.90M | 73.26 | 0.82% | 2.61% | -5.83% | -82.97% |
* Financial Sector Average
HIPO
Hippo Holdings
32.62
3.79
13.15%
AMSF
Amerisafe
29.12
-12.63
-30.25%
EIG
Employers Holdings
49.49
9.58
24.00%
ITIC
Investors Title Company
289.84
77.25
36.34%
TIPT
Tiptree Financial
18.12
-3.27
-15.31%
Hippo Holdings Corporate Events
Executive/Board Changes
Hippo Holdings Names Laura Boettcher as New COO
Positive
Jun 15, 2026
On June 10, 2026, Hippo Holdings Inc. appointed Laura Boettcher as chief operating officer, elevating her from her role as COO of subsidiary Hippo Analytics Inc., where she had overseen daily operations since February 2024 and previously served as...
Executive/Board ChangesShareholder Meetings
Hippo Holdings Shareholders Back Board, Pay and Auditor
Positive
Jun 5, 2026
On June 2, 2026, Hippo Holdings Inc. held its Annual Meeting of Stockholders, at which a quorum of 16,887,256 shares out of 26,031,227 outstanding were represented in person, remotely or by proxy. Stockholders elected Lori Dickerson Fouché, H...
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.