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Hippo Holdings
(NYSE:HIPO)
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Rating:76Outperform
Price Target:
$44.00
▲(33.50% 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
Revenue and Profitability Turnaround
Rapid revenue expansion alongside a shift from substantial losses to strong profitability indicates meaningful operating improvement. If growth and margins remain resilient, Hippo can build earnings power, fund expansion internally, and strengthen its competitive position over the next several quarters.
Negative Factors
Gross Margin Compression
The sharp gross-margin decline makes recent profitability less predictable and raises questions about how much earnings improvement can persist as the business expands. Continued pressure from underwriting results or product mix could reduce the durability of margins and limit operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profitability Turnaround
Rapid revenue expansion alongside a shift from substantial losses to strong profitability indicates meaningful operating improvement. If growth and margins remain resilient, Hippo can build earnings power, fund expansion internally, and strengthen its competitive position over the next several quarters.
Read all positive factors
Hippo Holdings (HIPO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.01B
Dividend YieldN/A
Average Volume (3M)204.39K
Price to Earnings (P/E)8.0
Beta (1Y)1.45
Revenue Growth19.34%
EPS GrowthN/A
CountryUS
Employees540
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)4.80
Shares Outstanding26,389,381
10 Day Avg. Volume259,670
30 Day Avg. Volume204,388
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 Cap0.79
Enterprise Value/Revenue1.58
Enterprise Value/Gross Profit3.35
Enterprise Value/Ebitda5.83
Forecast
1Y Price Target
$36.50Price Target Upside10.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.96
Revenue Forecast (FY)$583.88M
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 homeowners insurance-related revenues generated from (1) policy premiums and (2) fees/commissions tied to originating and servicing insurance policies. Premium revenue is earned when Hippo underwrites insurance ...
Hippo Holdings Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 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 | 137.50M | 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
32.96
Price Trends
33.02
Positive
30.69
Positive
29.24
Positive
Market Momentum
1.49
Negative
83.04
Negative
94.85
Negative
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 32.96 is below the 20-day moving average (MA) of 33.78, below the 50-day MA of 33.02, and above the 200-day MA of 29.24, indicating a bullish trend. The MACD of 1.49 indicates Negative momentum. The RSI at 83.04 is Negative, neither overbought nor oversold. The STOCH value of 94.85 is Negative, 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 |
|---|---|---|---|---|---|---|---|
90 Outperform | $3.19B | 5.93 | 50.69% | 0.26% | 41.43% | -57.28% | |
87 Outperform | $1.10B | 5.27 | 42.41% | 6.76% | 1.45% | 102.69% | |
81 Outperform | $1.33B | 6.03 | 38.46% | 1.61% | 3.96% | 234.26% | |
80 Outperform | $2.54B | 7.89 | 30.79% | 0.78% | 22.83% | 86.58% | |
76 Outperform | $1.01B | 8.00 | 27.38% | ― | 19.34% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
52 Neutral | $3.51B | -24.21 | -26.78% | ― | 76.73% | 35.36% |
* Financial Sector Average
HIPO
Hippo Holdings
38.58
1.72
4.67%
UVE
Universal Insurance Holdings
48.40
20.37
72.68%
HRTG
Heritage Insurance Holdings
37.70
13.67
56.89%
HCI
HCI Group
206.68
2.30
1.13%
LMND
Lemonade
45.41
-5.98
-11.64%
SLDE
Slide Insurance Holdings, Inc.
27.75
12.25
79.04%
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.