revenue
—
FY 2021
official guidance
HIPPO HOLDINGS INC.
Last · NYSE$34.39+0.04 (+0.12%)close · yahoo · 14h ago
Market cap$907.53M26.4M sh
P/E · TTM7.4fwd 9.8 · eps 4.67
Beta1.55vs S&P 500
Div yield0.00%annual · TTM
52w range
$24.08$38.73
Volume136.0Ksession
| Revenue | $266.2M |
|---|---|
| Operating income | $18.2M |
| Net income | $17.2M |
| Free cash flow | $51.4M |
| Operating margin | 6.8% |
| Net margin | 6.5% |
| Return on equity | 3.7% |
| Period | 2026 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Growth is strong, but the loss ratio and unquantified profitability path do not support a clean buy.
Hold: Hippo delivered strong growth—Q2 Total Generated Premium rose 101% YoY to $158.7 million, in-force premium reached $500.6 million, and FY2021 guidance increased to $560-$570 million—but underwriting performance was severely weak, with a 161% gross loss ratio and a $42.3 million adjusted EBITDA loss. The investment case depends on management’s unproven claim that geographic diversification, pricing actions, and better-risk products will materially reduce losses; analysts received no quantified path or timing to profitability.
Themes
- Premium Growth
- Loss Ratio
- Texas Hail
- Geographic Diversification
- Customer Retention
- Insurtech Profitability
Near term
Texas hail exposure and elevated claims severity could keep reported loss ratios highly volatile over the next several quarters.
Updated FY2021 premium guidance of $560-$570 million provides a near-term execution benchmark, but premium growth currently outpaces revenue growth.
Further sales and marketing investment may pressure cash losses as management plans to become more aggressive despite broader industry concerns about customer acquisition costs.
Early-term loss-frequency improvements of 40% in Texas and 37% in California need to translate into reported loss-ratio improvement before the thesis strengthens.
Longer term
Geographic diversification, reaching 40 states, and multi-carrier underwriting could reduce catastrophe concentration and improve risk segmentation over time.
The HO5 new-construction product reportedly had an approximately 40% loss ratio over the past 12 months and could improve mix if its rapid growth is sustainable.
Customer retention is a meaningful positive: first-year homeowners premium retention reached 88%, supporting management’s long-term unit-economic argument.
The technology and embedded-distribution moat remains unproven; management cited APIs, smart-home technology, and partner channels but provided limited evidence of durable advantage versus incumbent insurers and other insurtechs.
Profitability depends on achieving a materially lower, properly priced loss ratio while continuing to fund expansion; management emphasized the concept of a virtuous cycle rather than providing a concrete breakeven timeline.
Red flags
The 161% gross loss ratio was driven by Texas hail, prior winter-storm development, and higher claims severity, but management declined to quantify the hail impact or current severity pressure.
Management characterized supply-chain and labor-driven severity inflation as temporary, while offering limited supporting data beyond general sector commentary.
Adjusted EBITDA loss widened to $42.3 million, and management explicitly intends to increase growth investment rather than prioritize near-term profitability.
The stated blended LTV-to-CAC estimate of 5-6x is based on long-term target loss ratios, not demonstrated current economics, making it vulnerable to underwriting underperformance.
The call did not establish when early-term frequency improvements will flow through to the overall loss ratio or produce sustainable profitability.
Forward outlook
revenue growth
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FY 2021
official guidance
ebitda
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FY 2021
official guidance
eps diluted
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FY 2021
official guidance
adjusted eps
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FY 2021
official guidance
gross margin
—
FY 2021
official guidance
operating margin
—
FY 2021
official guidance
revenue
560–570 $million
FY 2021
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Upcoming earnings
1:30 PM UTC+1
Period
Sep 2026
Est. EPS
$0.31
Est. revenue
153.2M
Earnings transcripts
Documents
FormReporting forFiledFlags