Revenue growth has decelerated from 113.8% in 2024Q1 to 10.2% in 2026Q1, reflecting a shift toward mature market expansion alongside volatile underwriting results.
| Revenue | 479.8M | 468.6M | 372.1M | 209.7M | 119.7M | 91.2M | 51.6M | 34.7M |
| Revenue Growth % | 20.77% | 25.93% | 77.44% | 75.19% | 31.25% | 76.74% | 48.7% | - |
| Medical Costs & Claims | 285.6M | 229.9M | 297.8M | 293.1M | 179.1M | 105.9M | 35M | 0 |
| Medical Cost Ratio % | 59.52% | 49.06% | 80.03% | 139.77% | 149.62% | 116.12% | 67.83% | 0% |
| Gross Profit | 194.2M | 238.7M | 74.3M | -83.4M | -59.4M | -14.7M | 16.6M | 34.7M |
| Gross Margin % | 40.48% | 50.94% | 19.97% | -39.77% | -49.62% | -16.12% | 32.17% | 100% |
| Gross Profit Growth % | - | 221.27% | 189.09% | -40.4% | -304.08% | -188.55% | -52.16% | - |
| Operating Expenses | 78.1M | 175.4M | 101.7M | 179.1M | 265.8M | 352.5M | 159.8M | 106.5M |
| OpEx / Revenue % | 16.28% | 37.43% | 27.33% | 85.41% | 222.06% | 386.51% | 309.69% | 306.92% |
| Depreciation & Amortization | 0 | 0 | 23.2M | 19.8M | 15.2M | 11M | 6.7M | 0 |
| Combined Ratio % | 75.8% | 86.49% | 107.36% | 225.18% | 371.68% | 502.63% | 377.52% | 306.92% |
| Operating Income | 116.1M | 63.3M | -27.4M | -262.5M | -325.2M | -367.2M | -143.2M | -71.8M |
| Operating Margin % | 24.2% | 13.51% | -7.36% | -125.18% | -271.68% | -402.63% | -277.52% | -206.92% |
| Operating Income Growth % | - | 331.02% | 89.56% | 19.28% | 11.44% | -156.42% | -99.44% | - |
| EBITDA | 116.1M | 63.3M | -4.2M | -242.7M | -310M | -356.2M | -136.5M | -71.8M |
| EBITDA Margin % | 24.2% | 13.51% | -1.13% | -115.74% | -258.98% | -390.57% | -264.53% | -206.92% |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 198.9M | 26M | 0 |
| Non-Operating Income | 0 | 0 | 0 | 0 | 0 | -198.9M | -26M | -71.8M |
| Pretax Income | 116.1M | 63.3M | -27.4M | -262.5M | -325.2M | -367.2M | -143.2M | -83M |
| Pretax Margin % | 24.2% | 13.51% | -7.36% | -125.18% | -271.68% | -402.63% | -277.52% | -239.19% |
| Income Tax | 1M | 700K | 1.2M | 500K | 1.3M | 700K | -1.8M | 100K |
| Effective Tax Rate % | 0.86% | 1.11% | -4.38% | -0.19% | -0.4% | -0.19% | 1.26% | -0.12% |
| Net Income | 112.5M | 57.7M | -40.5M | -273.1M | -333.4M | -371.4M | -141.5M | -83.1M |
| Net Margin % | 23.45% | 12.31% | -10.88% | -130.23% | -278.53% | -407.24% | -274.22% | -239.48% |
| Net Income Growth % | 314.29% | 242.47% | 85.17% | 18.09% | 10.23% | -162.47% | -70.28% | - |
| EPS (Diluted) | 4.27 | 2.22 | -1.64 | -11.58 | -14.35 | -23.77 | -40.68 | -171.52 |
| EPS Growth % | 305.71% | 235.37% | 85.84% | 19.3% | 39.63% | 41.57% | 76.28% | - |
| EPS (Basic) | - | 2.28 | -1.64 | -11.58 | -14.35 | -23.77 | -40.68 | -171.52 |
| Diluted Shares Outstanding | 26.35M | 26.01M | 24.7M | 23.58M | 22.75M | 15.48M | 3.48M | 484.49K |
Catastrophe exposure and reinsurance
As reported in financial statements, Hippo's revenue growth has decelerated significantly from 113.8% in 2024Q1 to 10.2% by 2026Q1, suggesting that the initial hyper-growth phase of the platform is transitioning toward a more mature, albeit slower, expansion trajectory within the competitive U.S. homeowners insurance market.
The sharp decline in year-over-year revenue growth indicates that the company is moving past its early-stage customer acquisition surge. Investors should monitor whether this deceleration reflects a deliberate shift toward higher-quality, lower-risk policyholders or a broader saturation of the company's digital-first distribution model.
Based on the provided income statement data, the combined ratio has fluctuated wildly, ranging from a low of 18.7% in 2025Q3 to a high of 160.5% in 2023Q4, highlighting the inherent difficulty in maintaining consistent underwriting discipline within a catastrophe-exposed portfolio.
The inconsistency in the combined ratio suggests that Hippo's underwriting engine is still highly sensitive to weather-related loss events. While recent quarters show improvement, the lack of a stable, sub-100% combined ratio trend warrants caution regarding the long-term sustainability of current underwriting margins.
According to recent quarterly filings, Hippo has successfully pivoted from consistent operating losses to positive operating income, reaching $7.2 million in 2026Q1, which marks a critical inflection point in the company's evolution from a cash-burning insurtech startup to a potentially self-sustaining insurance carrier.
This shift appears to be driven by a combination of improved loss ratio management and operational scaling. However, the sustainability of this profitability remains unproven, as the company must demonstrate it can maintain these margins through future, more severe catastrophe cycles.
Analysis of the company's financial structure suggests that the reported profitability may be heavily reliant on favorable reinsurance cessions, as evidenced by the extreme volatility in loss ratios that periodically exceed 100%, indicating that the core underwriting risk remains significant despite recent headline earnings improvements.
The reliance on third-party capital to offload risk means that any hardening of the global reinsurance market could disproportionately impact Hippo's net margins. Investors should investigate whether the current profitability is a result of genuine underwriting improvement or merely a temporary benefit from favorable reinsurance treaty terms.
Quick answers to the most common questions about buying HIPO stock.
For fiscal year 2025, Hippo Holdings Inc. (HIPO) reported total revenue of $468.6M. This represents a 1250.4% increase compared to $34.7M in 2019.
Hippo Holdings Inc. (HIPO) is profitable, generating $57.7M in net income for the fiscal year ending 2025 with a net profit margin of 12.3%.
Hippo Holdings Inc. (HIPO) reported an operating income of $63.3M, resulting in an operating profit margin of 13.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Hippo Holdings Inc. (HIPO) generated $238.7M in gross profit for the year, representing a gross profit margin of 50.9%. This demonstrates the company's core pricing power and production efficiency.