Hippo (NYSE:HIPO) Announces Earnings Results

Key Points

• Hippo exceeded third-quarter expectations: Adjusted earnings were $0.74 per share versus the $0.08 consensus estimate, while revenue reached $156 million, slightly above forecasts and up 29.4% year over year.
• Operating performance improved: Gross written premiums rose 60.1% to $498.1 million, and the combined ratio improved to 98.4% from 99.6%, driven partly by a lower expense ratio.
• Management raised 2026 guidance: Hippo now expects revenue of $585 million-$590 million and adjusted net income of $77 million-$80 million; shares traded near $37.55, close to analysts’ $38.25 average target.

Hippo (NYSE:HIPO - Get Free Report) posted its quarterly earnings results on Wednesday. The company reported $0.74 earnings per share for the quarter, beating analysts' consensus estimates of $0.08 by $0.66, FiscalAI reports. The business had revenue of $156.00 million for the quarter, compared to analysts' expectations of $153.88 million. Hippo had a return on equity of 10.68% and a net margin of 23.92%.

Hippo Price Performance

HIPO stock traded down $0.16 during midday trading on Thursday, reaching $37.55. The stock had a trading volume of 262,019 shares, compared to its average volume of 157,769. Hippo has a 52-week low of $24.08 and a 52-week high of $39.39. The company's fifty day simple moving average is $33.42 and its 200 day simple moving average is $29.40. The company has a market cap of $990.99 million, a price-to-earnings ratio of 8.05 and a beta of 1.55. The company has a current ratio of 0.95, a quick ratio of 0.95 and a debt-to-equity ratio of 0.10.

Hippo News Roundup

Here are the key news stories impacting Hippo this week:

• Positive Sentiment: Q3 earnings exceeded expectations. Hippo reported adjusted earnings of $0.74 per share, above the $0.48 Zacks consensus estimate and $0.70 a year earlier. GAAP net income was $8.8 million, or $0.33 per diluted share. Revenue reached $156 million, topping the $153.88 million analyst estimate and rising 29.4% year over year. Hippo Holdings Inc. Tops Q3 Earnings and Revenue Estimates
• Positive Sentiment: Premium growth and underwriting improved. Gross written premium increased 60.1% to $498.1 million, while net earned premium rose 29% to $128.3 million. The combined ratio improved to 98.4% from 99.6%, and the expense ratio declined sharply to 41.7% from 52.0%, signaling better operating efficiency and underwriting performance. Hippo Q3 Revenue Rises 29% to $156 Million
• Positive Sentiment: Hippo raised its 2026 guidance. Management increased its revenue forecast to $585 million-$590 million and adjusted net income outlook to $77 million-$80 million, reinforcing expectations for continued growth and profitability. Book value per share also increased to $17.62 as of September 30, up from $16.97 at the end of 2025. Hippo Reports Third Quarter 2026 Financial Results
• Neutral Sentiment: New strategic partnership could support future expansion. Hippo partnered with Greenlight Re to evaluate investments in early-stage insurance programs and use Spinnaker as a preferred U.S. carrier. The agreement may create opportunities, but its financial impact is not yet quantifiable. Hippo Partners With Greenlight Re

Wall Street Analysts Forecast Growth

HIPO has been the subject of several research analyst reports. Zacks Research lowered shares of Hippo from a "strong-buy" rating to a "hold" rating in a research note on Friday, October 2nd. Keefe, Bruyette & Woods boosted their price objective on Hippo from $33.00 to $35.00 and gave the company a "market perform" rating in a research note on Thursday, August 6th. B. Riley Financial reaffirmed a "buy" rating and set a $41.50 target price (up from $38.00) on shares of Hippo in a report on Monday, August 3rd. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Hippo in a research report on Friday, July 31st. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $38.25.

Insider Activity at Hippo

In related news, CEO Torben Ostergaard sold 1,169 shares of the company's stock in a transaction dated Thursday, October 15th. The shares were sold at an average price of $35.03, for a total value of $40,950.07. Following the completion of the sale, the chief executive officer owned 60,655 shares of the company's stock, valued at $2,124,744.65. This represents a 1.89% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Richard McCathron sold 5,000 shares of the company's stock in a transaction on Friday, October 9th. The shares were sold at an average price of $34.18, for a total value of $170,900.00. Following the sale, the chief executive officer directly owned 562,132 shares of the company's stock, valued at approximately $19,213,671.76. This represents a 0.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 17,338 shares of company stock valued at $571,577. 4.48% of the stock is owned by company insiders.

Hippo Company Profile

Hippo Holdings Inc is a technology-focused insurance company that provides home insurance and related services to homeowners in the United States. Operating under the Hippo brand, the company uses digital tools, data analytics and a streamlined online experience to help customers obtain coverage, manage policies and receive support.

Hippo's offerings are designed to protect residential properties and personal belongings against covered risks, while also emphasizing proactive home protection.

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