Hippo Holdings Inc. delivers comprehensive home protection insurance solutions across the United States and the District of Columbia. Their product lineup features ...
Hippo Holdings Inc. (NYSE: HIPO) is a technology-native insurance group that aims to simplify and modernize the home insurance experience. Founded in 2015 and headquartered in San Jose, California, the company leverages a proprietary technology platform to distribute its insurance products directly to consumers online, via mobile, or through licensed ...Hippo Holdings Inc. (NYSE: HIPO) is a technology-native insurance group that aims to simplify and modernize the home insurance experience. Founded in 2015 and headquartered in San Jose, California, the company leverages a proprietary technology platform to distribute its insurance products directly to consumers online, via mobile, or through licensed agents and strategic partnerships. Hippo's product portfolio includes homeowners' insurance covering perils like fire, wind, and theft, as well as commercial and other personal insurance lines. The company differentiates itself by integrating smart home data and real-time analytics to better assess risk and prevent losses, offering a more proactive approach to home protection.
Hippo operates its own insurance carrier and also partners with leading home builders to embed insurance offerings at the point of home purchase, expanding its fastest-growing channel. The company's financial performance shows a strong recent turnaround, with a net profit margin of 23.9% and a return on equity of 27.4% as of the latest TTM figures, despite challenges in working capital. With a market cap of approximately $861 million and a price-to-earnings ratio of 6.8, Hippo is positioned as a growth-oriented player in the specialty insurance sector.
Under the leadership of President and CEO Richard McCathron, Hippo has focused on disciplined underwriting, operational efficiency, and strategic partnerships. The company went public in January 2021 and has since expanded its workforce to around 540 employees. Hippo's mission is to protect the joy of homeownership by making insurance more accessible, affordable, and responsive to modern needs.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$468.6M
+25.9%
+19.1%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$57.7M
+242.5%
+42.3%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+50.9%
+155.1%
+82.3%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+13.5%
+283.4%
+28.3%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+12.3%
+213.1%
+19.4%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$9.1M
-80.7%
+769.8%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+1.9%
-84.7%
+630.4%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
12.0%
+335.1%
-5.1%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.15x
-15.2%
-70.8%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Hello, everyone. Thank you for joining us, and welcome to the Hippo Holdings, Inc. Second Quarter 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to Charles Sebaski, Investor Relations. Charles, please go ahead.
Charles Sebaski: Good morning, and thank you for joining Hippo's Second Quarter 2026 Earnings Call. Earlier today, Hippo issued an earnings release announcing its Q2 results and a financial results presentation, which will be webcast during today's call, both of which are available at investors.hippo.com. Leading today's discussion will be Hippo President and Chief Executive Officer, Rick McCathron; and Chief Financial Officer, Guy Zeltser. Following management's prepared remarks, we will open up the call to questions. Before we begin, we'd like to remind you that our discussion will contain predictions, expectations, forward-looking statements and other information about our business that are based on management's current expectations as of the date of this presentation. Forward-looking statements include, but are not limited to, Hippo's expectations or predictions of financial and business performance and conditions and competitive and industry outlook. Forward-looking statements are subject to risks, uncertainties and other factors that could cause our actual results to differ materially from historical results and/or our forecast, including those set forth in Hippo's Form 10-Q and 10-K. For more information, please refer to the risks and uncertainties and other factors discussed in Hippo's SEC filings, in particular, in the section entitled Risk Factors in our Form 10-Q and 10-K. All cautionary statements are applicable to any forward-looking statements we make whenever they appear. You should carefully consider the risks and uncertainties and other factors discussed in Hippo's SEC filings. Do not place undue reliance on forward-looking statements as Hippo is under no obligation and expressly disclaims any responsibility for updating, offering, or otherwise revising any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. During this conference call, we will also refer to non-GAAP financial measures such as adjusted net income. Our GAAP results and description of our non-GAAP financial measures with full reconciliation to GAAP can be found in the second quarter 2026 earnings release, which has been furnished to the SEC and is available on our website. And with that, I'll turn the call over to Rick McCathron, our President and CEO.
Richard McCathron: Thank you, Chuck, and good morning, everyone. Thanks for joining us. Hippo delivered another strong quarter, building on the momentum we started the year with. We grew top and bottom line together, making our fifth straight quarter of profitability on both a stated and adjusted basis. For the quarter, we generated $10 million of net income, a nearly eightfold increase over last …
