Hippo (NYSE:HIPO) Announces Earnings Results

Hippo (NYSE:HIPO) issued its quarterly earnings results on Thursday. The company reported $0.79 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.17) by $0.96, FiscalAI reports. The business had revenue of $144.70 million for the quarter, compared to analysts’ expectations of $137.44 million. Hippo had a net margin of 23.92% and a return on equity of 10.86%.

Here are the key takeaways from Hippo’s conference call:

• Strong profitable growth: Q2 gross written premium rose 61% year over year to $482 million, while net income reached $10 million and adjusted net income increased 24% to $21 million. Hippo reported its fifth consecutive quarter of profitability.
• Underwriting and operating performance improved: The combined ratio fell four percentage points to 95.8%, the accident-year ex-catastrophe loss ratio improved to 45.8%, and the expense ratio declined to 45.4% as operating leverage and AI-supported efficiency increased.
• Full-year guidance was raised: Hippo now expects 2026 gross written premium of $1.65 billion-$1.70 billion, a 99%-101% combined ratio, and adjusted net income of $62 million-$70 million. Management also raised its 2028 targets to more than $2.5 billion of premium and over $140 million of adjusted net income.
• Reinsurance changes may reduce volatility: Moving catastrophic reinsurance to the corporate group level reportedly lowered probable maximum losses by more than 30%, while a new whole-account quota share adds flexibility to manage future growth and risk retention.
• Market conditions are becoming more competitive in property insurance: Management said homeowners and commercial property markets are softening, with E&S growth being pulled back and renewal-rate increases expected to moderate. Hippo intends to reduce exposure where growth is not sufficiently profitable, which could constrain expansion in those lines.

Hippo Stock Down 1.6%

HIPO stock traded down $0.52 during mid-day trading on Friday, reaching $31.36. The company had a trading volume of 189,417 shares, compared to its average volume of 136,593. The firm has a fifty day simple moving average of $27.30 and a 200 day simple moving average of $27.61. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.99 and a current ratio of 0.99. The company has a market capitalization of $32.61 million, a price-to-earnings ratio of 6.74 and a beta of 1.49. Hippo has a fifty-two week low of $24.08 and a fifty-two week high of $38.98.

Insider Transactions at Hippo

In related news, CEO Torben Ostergaard sold 3,667 shares of the firm’s stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $26.10, for a total value of $95,708.70. Following the sale, the chief executive officer owned 65,673 shares of the company’s stock, valued at $1,714,065.30. This trade represents a 5.29% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Richard Mccathron sold 5,000 shares of Hippo stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $27.10, for a total transaction of $135,500.00. Following the completion of the transaction, the chief executive officer owned 604,212 shares of the company’s stock, valued at $16,374,145.20. This represents a 0.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 20,336 shares of company stock valued at $550,564. 4.48% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Hippo

A number of large investors have recently modified their holdings of the company. Intech Investment Management LLC lifted its position in shares of Hippo by 4.0% during the 3rd quarter. Intech Investment Management LLC now owns 7,968 shares of the company’s stock worth $288,000 after purchasing an additional 310 shares during the last quarter. Altshuler Shaham Ltd grew its stake in shares of Hippo by 270.4% during the fourth quarter. Altshuler Shaham Ltd now owns 1,000 shares of the company’s stock worth $30,000 after purchasing an additional 730 shares in the last quarter. Deutsche Bank AG increased its holdings in Hippo by 1.2% in the fourth quarter. Deutsche Bank AG now owns 60,005 shares of the company’s stock valued at $1,805,000 after buying an additional 736 shares during the last quarter. Balyasny Asset Management L.P. increased its holdings in Hippo by 5.2% in the fourth quarter. Balyasny Asset Management L.P. now owns 16,420 shares of the company’s stock valued at $494,000 after buying an additional 812 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD raised its stake in Hippo by 3.5% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 24,588 shares of the company’s stock valued at $740,000 after buying an additional 834 shares in the last quarter. 43.01% of the stock is owned by hedge funds and other institutional investors.

More Hippo News

Here are the key news stories impacting Hippo this week:

• Positive Sentiment: Fifth consecutive profitable quarter: Hippo reported second-quarter GAAP net income of $10 million, or $0.38 per diluted share, and adjusted net income of $21 million, or $0.79 per share. Adjusted EPS substantially exceeded the approximately $0.21 analyst consensus and increased from $0.65 a year earlier. Hippo posts fifth straight profitable quarter, raises full-year guidance
• Positive Sentiment: Revenue beat expectations: Second-quarter revenue reached $144.7 million, ahead of the roughly $137.4 million Wall Street estimate. Hippo also posted a 23.45% net margin and 12.17% return on equity, reinforcing the company’s improving profitability. Hippo Q2 earnings and revenues surpass estimates
• Positive Sentiment: Full-year outlook improved: Management provided fiscal 2026 revenue guidance of $580 million to $585 million, above the $568.2 million consensus estimate. The guidance increase suggests confidence in continued growth and may support a higher valuation for the technology-focused home insurer. Hippo Reports Second Quarter 2026 Financial Results
• Negative Sentiment: CFO reduced his stake: Chief Financial Officer Guy Zeltser sold 1,669 shares for approximately $51,706, decreasing his direct ownership by 1.37%. He retained 120,563 shares, making the sale relatively small, but insider selling can still weigh modestly on sentiment. SEC insider trading filing

Analyst Ratings Changes

A number of research analysts recently weighed in on the stock. Texas Capital upgraded shares of Hippo to a “strong-buy” rating in a report on Tuesday, June 9th. B. Riley Financial assumed coverage on shares of Hippo in a report on Friday, April 17th. They set a “buy” rating and a $38.00 target price on the stock. Weiss Ratings raised shares of Hippo from a “hold (c-)” rating to a “hold (c)” rating in a research report on Monday, May 4th. Finally, Keefe, Bruyette & Woods boosted their price target on shares of Hippo from $32.00 to $33.00 and gave the stock a “market perform” rating in a research note on Wednesday, July 8th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $38.67.

Hippo Company Profile

Hippo Enterprises Inc is a technology-driven home insurance company that offers modernized homeowners insurance products through a digital-first platform. Leveraging data analytics, artificial intelligence and smart home devices, the company designs tailored coverage plans intended to streamline the underwriting process and deliver more comprehensive protection for homeowners. Hippo’s policies typically include standard dwelling coverage, personal property protection and liability insurance, along with optional add-ons such as water backup, home computer systems and equipment breakdown coverage.

Through its online portal and partner network of licensed insurance agents, Hippo provides policyholders with a range of services aimed at minimizing risk and preventing losses before they occur.