Revenue grew 29.4% year-over-year to $156.0M in 2026Q3 and the combined ratio improved to 93.5%, but loss ratios ranging from 37.8% to 124.3% indicate underwriting results remain highly volatile.
Hippo Holdings Inc. (HIPO) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Revenue | 542.6M | 468.6M | 372.1M | 209.7M | 119.7M | 91.2M | 51.6M | 34.7M |
| Revenue Growth % | 20.55% | 25.93% | 77.44% | 75.19% | 31.25% | 76.74% | 48.7% | - |
| Medical Costs & Claims | 260.4M | 229.9M | 297.8M | 293.1M | 179.1M | 105.9M | 35M | 0 |
| Medical Cost Ratio % | 47.99% | 49.06% | 80.03% | 139.77% | 149.62% | 116.12% | 67.83% | 0% |
| Gross Profit | 282.2M | 238.7M | 74.3M | -83.4M | -59.4M | -14.7M | 16.6M | 34.7M |
| Gross Margin % | 52.01% | 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 | 247.1M | 175.4M | 101.7M | 179.1M | 265.8M | 352.5M | 159.8M | 106.5M |
| OpEx / Revenue % | 45.54% | 37.43% | 27.33% | 85.41% | 222.06% | 386.51% | 309.69% | 306.92% |
| Depreciation & Amortization | 19.3M | 20.4M | 23.2M | 19.8M | 15.2M | 11M | 6.7M | 2.9M |
| Combined Ratio % | 93.53% | 86.49% | 107.36% | 225.18% | 371.68% | 502.63% | 377.52% | 306.92% |
| Operating Income | 35.1M | 63.3M | -27.4M | -262.5M | -325.2M | -367.2M | -143.2M | -71.8M |
| Operating Margin % | 6.47% | 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 | 54.4M | 83.7M | -4.2M | -242.7M | -310M | -356.2M | -136.5M | -68.9M |
| EBITDA Margin % | 10.03% | 17.86% | -1.13% | -115.74% | -258.98% | -390.57% | -264.53% | -198.56% |
| Interest Expense | 1.8M | 0 | 0 | 0 | 0 | 198.9M | 26M | 0 |
| Non-Operating Income | 0 | 0 | 0 | 0 | 0 | -198.9M | -26M | -71.8M |
| Pretax Income | 33.9M | 63.3M | -27.4M | -262.5M | -325.2M | -367.2M | -143.2M | -83M |
| Pretax Margin % | 6.25% | 13.51% | -7.36% | -125.18% | -271.68% | -402.63% | -277.52% | -239.19% |
| Income Tax | 1.9M | 700K | 1.2M | 500K | 1.3M | 700K | -1.8M | 100K |
| Effective Tax Rate % | 5.6% | 1.11% | -4.38% | -0.19% | -0.4% | -0.19% | 1.26% | -0.12% |
| Net Income | 32M | 57.7M | -40.5M | -273.1M | -333.4M | -371.4M | -141.5M | -83.1M |
| Net Margin % | 5.9% | 12.31% | -10.88% | -130.23% | -278.53% | -407.24% | -274.22% | -239.48% |
| Net Income Growth % | -66.63% | 242.47% | 85.17% | 18.09% | 10.23% | -162.47% | -70.28% | - |
| EPS (Diluted) | 1.18 | 2.22 | -1.64 | -11.58 | -14.35 | -23.77 | -40.68 | -171.52 |
| EPS Growth % | -67.3% | 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 | 27.03M | 26.01M | 24.7M | 23.58M | 22.75M | 15.48M | 3.48M | 484.49K |
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.
Key Metrics
Top Statement Risk
Reinsurance cost hardening
Metrics are mathematically derived from official filings.
Top-Line Growth Outpacing Earnings Scale
According to reported quarterly figures, Hippo's total revenue rose from $89.6M in 2024Q2 to $156.0M in 2026Q3, with year-over-year growth of 29.4% in the latest quarter, suggesting the platform is scaling while premium volume continues to expand meaningfully.
The revenue trajectory indicates sustained top-line expansion across the last ten quarters, which may reflect both premium rate adequacy in the homeowners market and continued distribution growth through the MGA channel. Growth of this magnitude, however, should be read alongside the gross versus net premium distinction, since retained revenue depends heavily on reinsurance cession levels that are not fully visible in the income statement. Investors should monitor whether growth persists as the reinsurance market hardens, as higher ceded costs could compress net revenue even if gross volume keeps rising.
Loss Ratio Volatility Drives Underwriting Results
Based on reported figures, Hippo's loss ratio swung from 124.3% in 2024Q4 to 37.8% in 2025Q4 and 41.3% in 2026Q2, with the combined ratio ranging from 53.8% to above 140%, indicating that underwriting profitability remains highly sensitive to loss timing.
The wide dispersion in loss and combined ratios suggests that quarterly underwriting outcomes are driven substantially by weather severity and catastrophe timing rather than a steady underlying trend. Quarters with combined ratios below 100% point to underwriting profit, while the periods above 100% imply reliance on other income to offset losses. The most recent quarters show combined ratios clustering in the low-to-mid 90s, which may indicate improving discipline, but a limited sample of stable quarters warrants caution before drawing a durable conclusion.
Earnings Quality Hinges on Loss Reserving
As reported in financial statements, Hippo's net income swung from a $98.1M gain in 2025Q3 against an $80.4M loss figure, a pattern that may reflect reserve adjustments or one-time items affecting reported earnings quality.
The gap between operating and net income in certain quarters, along with the 2025Q3 spike in net income relative to revenue, suggests that non-operating or reserve-related items may be materially influencing reported results. Reserve development quality cannot be assessed from the supplied data alone, so the appropriate interpretation is that current earnings may not fully represent recurring underwriting performance. Investors should examine prior-year reserve development disclosures before treating the recent profitability trend as sustainable.
Expense Discipline Emerging Against Rising Premiums
Based on Hippo's reported figures, operating margin moved from negative territory in 2025Q1 to roughly 6 to 7 percent in recent quarters, with net income recovering to $8.8M in 2026Q3, which may signal operating leverage as premium volume outgrows fixed expense growth.
The improvement in operating income alongside rising revenue implies that acquisition and operating expenses are growing more slowly than the premium base, a pattern consistent with maturing distribution economics. This operating leverage appears to be the main driver of the recent profitability improvement rather than a single favorable loss period. Whether this trend holds will depend on customer acquisition costs staying contained as the company pursues further growth in competitive homeowners markets.
Reinsurance Hardening Could Erode Margins
Based on the company's stated risk profile, a hardening global reinsurance market could raise ceding costs or force greater risk retention, potentially squeezing the margin improvements visible in recent quarters if loss ratios revert toward the 60 to 110 percent range seen earlier.
The bull case rests on sustained underwriting profitability, yet the historical loss ratio range shows how quickly results can deteriorate when catastrophe activity or reinsurance costs rise. If Hippo must retain more risk on its own balance sheet, capital requirements would increase and the capital-light advantage of the MGA model would weaken. Investors should treat recent quarterly improvement as encouraging but not yet proof of a structurally lower loss profile, and should weigh it against the company's concentration in catastrophe-exposed states.