Operating cash flow has reached a positive $8.5 million in 2026Q1, marking a significant improvement from the $48.5 million cash burn observed in 2023Q4.
| Cash from Operations | 53.3M | 9.2M | 47.5M | -92.4M | -161.5M | -124.5M | -65.4M | -29.1M |
| Operating CF Growth % | 543.01% | -80.63% | 151.41% | 42.79% | -29.72% | -90.37% | -124.74% | - |
| Operating CF / Revenue % | 11.11% | 1.96% | 12.77% | -44.06% | -134.92% | -136.51% | -126.74% | -83.86% |
| Net Income | 112.5M | 57.7M | -28.6M | -273.1M | -326.5M | -367.9M | -141.4M | -83.1M |
| Depreciation & Amortization | 0 | 20.4M | 23.2M | 19.8M | 15.2M | 11M | 6.7M | 2.9M |
| Stock-Based Compensation | 0 | 29.3M | 38.2M | 57.5M | 61.9M | 24.3M | 17.2M | 21.9M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 47.3M | -94M | -55.6M | 10.1M | 50.6M | 164.4M | 27.1M | 2.8M |
| Working Capital Changes | 0 | -4.2M | 70.3M | 93.3M | 37.3M | 43.7M | 25M | 26.4M |
| Cash from Investing | 42.3M | -11.2M | 30.3M | 57.6M | -405.9M | -30M | -2.3M | -72.3M |
| Capital Expenditures | -3.6M | -100K | -300K | -29.6M | -19.7M | -800K | -400K | -900K |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | -600K | -83.7M | -600K |
| Purchase of Investments | -397.7M | -287.6M | -367.8M | -409.6M | -793M | -26.2M | -16.7M | 0 |
| Sale/Maturity of Investments | 398.2M | 307.8M | 336.9M | 517.1M | 408.8M | 16.5M | 107.5M | 0 |
| Other Investing | 45.4M | -31.3M | 61.5M | -20.3M | -2M | -18.9M | -9M | -70.8M |
| Cash from Financing | 29M | 19.3M | -40.1M | -14.6M | -6.8M | 480.8M | 518.1M | 101.4M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -14.5M | -14.5M | -15.6M | -1.8M | 0 | 0 | 0 | 0 |
| Stock Issued | 3.8M | 3.8M | 6.7M | 2.8M | 4.1M | 0 | 0 | 0 |
| Debt Issuance (Net) | 1000K | 1000K | 0 | 0 | 0 | 0 | 1000K | 0 |
| Other Financing | -8.2M | -17.9M | -31.2M | -15.6M | -10.9M | 480.8M | -1.5M | 101.4M |
| Net Change in Cash | 124.6M | 17.3M | 37.7M | -49.4M | -574.2M | 326.3M | 450.4M | 42M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 250.1M | 232.8M | 195.1M | 244.5M | 818.7M | 492.4M | 42M | 0 |
| Cash at End | 304.8M | 250.1M | 232.8M | 195.1M | 244.5M | 818.7M | 492.4M | 42M |
| Free Cash Flow | 50.1M | 9.1M | 47.2M | -139.1M | -181.2M | -141.9M | -74.8M | -30M |
| FCF Growth % | 1321.95% | -80.72% | 133.93% | 23.23% | -27.7% | -89.71% | -149.33% | - |
| FCF Margin % | 10.44% | 1.94% | 12.68% | -66.33% | -151.38% | -155.59% | -144.96% | -86.46% |
| FCF per Share | 1.9 | 0.35 | 1.91 | -5.9 | -7.97 | -9.17 | -21.52 | -61.92 |
Catastrophe exposure and reinsurance
According to recent quarterly filings, Hippo's operating cash flow has demonstrated a notable shift toward positive territory, reaching $8.5 million in 2026Q1, which contrasts sharply with the $48.5 million cash burn observed in 2023Q4 as the company attempts to stabilize its core underwriting operations.
The transition to positive operating cash flow suggests that the company is successfully aligning its premium collection cycle with claims outflows. Investors should monitor whether this trend is sustainable or merely a byproduct of temporary reinsurance timing benefits that may not persist in future periods.
Based on reported financial statements, Hippo maintains an active investment portfolio with quarterly purchase activity often exceeding $100 million, such as the $126.4 million in purchases during 2025Q4, indicating a strategy of constant reinvestment to manage the float generated from its insurance operations.
The frequent turnover in the investment portfolio suggests a focus on maintaining high liquidity to meet potential claims volatility. This active management appears necessary given the company's geographic concentration in catastrophe-prone regions, which requires ready access to capital should a significant weather event occur.
As reported in recent data, claims and loss payments have fluctuated significantly, peaking at $126.7 million in 2024Q4, which underscores the inherent difficulty in predicting cash outflows for a specialty insurer heavily exposed to unpredictable climate-related events in Texas and California.
The lack of a consistent pattern in claims payments suggests that the company's cash flow remains highly sensitive to external environmental factors. This volatility warrants further investigation into whether the current loss adjustment processes are effectively mitigating the impact of severe weather on the company's liquidity position.
Analysis of the provided figures reveals a significant disconnect between net income and operating cash flow, with the OCF/NI ratio swinging from 19.00 in 2025Q2 to -5.51 in 2024Q3, indicating that GAAP earnings may not accurately reflect the underlying cash reality of the business.
This wide variance suggests that non-cash accruals and the timing of reinsurance recoverables play a disproportionate role in reported profitability. Investors should be cautious of relying solely on net income, as the cash flow statement reveals a much more volatile operational profile than the headline earnings suggest.
Quick answers to the most common questions about buying HIPO stock.
Hippo Holdings Inc. (HIPO) generated $9.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Hippo Holdings Inc. (HIPO) generated $9.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Hippo Holdings Inc. (HIPO) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Hippo Holdings Inc. (HIPO) spent $14.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.