📊 HIPOW Key Takeaways
Is Hippo Holdings Inc. (HIPOW) a Good Investment?
Hippo demonstrates impressive revenue growth (25.9% YoY) and healthy profitability margins, but critical red flags emerge: net income is flat YoY despite revenue expansion, operating cash flow is severely depressed at only 1.9% of revenue, and the current ratio of 0.69x indicates potential liquidity stress for an insurance carrier.
Hippo’s fundamentals show a clear improvement: double‑digit operating (13.5%) and net (12.3%) margins, 26% revenue growth, and a 13% ROE, supported by a debt‑free balance sheet and $218M in cash. However, cash conversion remains weak (OCF $9M vs. NI $58M) and the sub‑1.0 current ratio warrants caution; sustaining underwriting discipline will be crucial to maintain profitability.
Why Buy Hippo Holdings Inc. Stock? HIPOW Key Strengths
- Revenue growth of 25.9% YoY demonstrates strong market demand and competitive positioning
- Zero long-term debt with $218.3M cash provides significant financial flexibility and downside protection
- Operating margin of 13.5% and net margin of 12.3% show disciplined cost management
- Strong EPS growth of 235.4% YoY indicates effective capital allocation
- Double-digit operating and net margins
- Solid 25.9% revenue growth with positive net income
- Debt-free capital structure with $218M cash and 158x interest coverage
HIPOW Stock Risks: Hippo Holdings Inc. Investment Risks
- Net income unchanged YoY despite 26% revenue growth suggests margin compression or profitability deterioration
- Operating cash flow of only $9.2M (1.9% of revenue) indicates poor cash conversion and earnings quality concerns
- Current ratio of 0.69x below critical 1.0 threshold raises liquidity concerns and potential claim-paying ability risks for an insurer
- Spike in insider Form 4 filings (12 in 90 days) may signal management concerns or uncertainty
- Weak cash flow conversion (1.9% FCF margin; OCF << NI)
- Sub-1.0 current/quick ratio and insurance liability timing risk
- Underwriting volatility and catastrophe exposure could pressure margins
Key Metrics to Watch
- Operating cash flow trend and working capital changes (critical for earnings quality validation)
- Combined loss ratio and claims development (insurance-specific profitability indicator)
- Current ratio and quick ratio recovery (liquidity adequacy for regulatory compliance)
- Premium retention and loss reserve adequacy
- Combined ratio (loss + expense)
- Operating cash flow to net income
Hippo Holdings Inc. (HIPOW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.9% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
HIPOW Profit Margin, ROE & Profitability Analysis
HIPOW vs Finance Sector: How Hippo Holdings Inc. Compares
How Hippo Holdings Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Hippo Holdings Inc. Stock Overvalued? HIPOW Valuation Analysis 2026
Based on fundamental analysis, Hippo Holdings Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Hippo Holdings Inc. Balance Sheet: HIPOW Debt, Cash & Liquidity
HIPOW Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Hippo Holdings Inc.'s revenue has grown significantly by 414% over the 5-year period, indicating strong business expansion. The most recent EPS of $-11.58 indicates the company is currently unprofitable.
HIPOW Revenue Growth, EPS Growth & YoY Performance
HIPOW Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $95.5M | -$8.5M | $-0.34 |
| Q2 2025 | $89.6M | $1.3M | $0.05 |
| Q1 2025 | $85.1M | -$35.7M | $-1.47 |
| Q2 2024 | $47.7M | -$8.5M | $-0.34 |
| Q1 2024 | $39.8M | -$35.7M | $-1.47 |
| Q3 2023 | $30.7M | -$53.1M | $-2.24 |
| Q2 2023 | $28.7M | -$73.5M | $-3.25 |
| Q1 2023 | $24.5M | -$67.6M | $-3.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Hippo Holdings Inc. Dividends, Buybacks & Capital Allocation
HIPOW SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Hippo Holdings Inc. (CIK: 0001828105)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HIPOW
What is the AI rating for HIPOW?
Hippo Holdings Inc. (HIPOW) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 59% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HIPOW's key strengths?
Claude: Revenue growth of 25.9% YoY demonstrates strong market demand and competitive positioning. Zero long-term debt with $218.3M cash provides significant financial flexibility and downside protection. ChatGPT: Double-digit operating and net margins. Solid 25.9% revenue growth with positive net income.
What are the risks of investing in HIPOW?
Claude: Net income unchanged YoY despite 26% revenue growth suggests margin compression or profitability deterioration. Operating cash flow of only $9.2M (1.9% of revenue) indicates poor cash conversion and earnings quality concerns. ChatGPT: Weak cash flow conversion (1.9% FCF margin; OCF << NI). Sub-1.0 current/quick ratio and insurance liability timing risk.
What is HIPOW's revenue and growth?
Hippo Holdings Inc. reported revenue of $468.6M.
Does HIPOW pay dividends?
Hippo Holdings Inc. does not currently pay dividends.
Where can I find HIPOW SEC filings?
Official SEC filings for Hippo Holdings Inc. (CIK: 0001828105) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HIPOW's EPS?
Hippo Holdings Inc. has a diluted EPS of $2.22.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HIPOW a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Hippo Holdings Inc. has a BUY rating with 59% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is HIPOW stock overvalued or undervalued?
Valuation metrics for HIPOW: ROE of 13.2% (sector avg: 12%), net margin of 12.3% (sector avg: 25%). Higher ROE suggests strong returns relative to peers.
Should I buy HIPOW stock in 2026?
Our dual AI analysis gives Hippo Holdings Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HIPOW's free cash flow?
Hippo Holdings Inc.'s operating cash flow is $9.2M, with capital expenditures of $100.0K. FCF margin is 1.9%.
How does HIPOW compare to other Finance stocks?
Vs Finance sector averages: Net margin 12.3% (avg: 25%), ROE 13.2% (avg: 12%), current ratio 0.69 (avg: 1.2).