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Sep 30
Hippo Holdings Q3 2025 Earnings Report
Hippo Holdings reported strong third quarter 2025 financial results, driven by significant improvements in net income, adjusted net income, and net loss ratio, alongside substantial growth in gross written premium and total revenue.
Key Takeaways
Hippo Holdings Inc. delivered a breakout third quarter in 2025, achieving a net income of $98.1 million and an adjusted net income of $18.3 million, a significant turnaround from losses in the prior year. The company saw a 33% increase in Gross Written Premium to $311.2 million and a 26% rise in total revenue to $120.6 million. A key highlight was the 25 percentage point improvement in the Net Loss Ratio to 48%, reflecting improved underwriting results and a $91 million gain from the sale of its homebuilder distribution network.
Gross Written Premium surged by 33% year-over-year, reaching $311.2 million, indicating strong business expansion.
Net Income dramatically improved to $98.1 million from a $8.5 million net loss in Q3 2024, largely due to a $91 million gain on the sale of the homebuilder distribution network.
Adjusted Net Income turned positive at $18.3 million, compared to an adjusted net loss of $1.3 million in the prior year, demonstrating enhanced operational profitability.
The Net Loss Ratio significantly improved by 25 percentage points to 48%, driven by better underwriting and a lack of meaningful catastrophe losses.
Hippo Holdings
Hippo Holdings
Hippo Holdings Revenue by Segment
Hippo Holdings Revenue by Geographic Location
Revenue by Segment
Homeowners Revenue
CapyFin.comRenters Revenue
CapyFin.comCommercial Multi-Peril Revenue
CapyFin.comCasualty Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
California Revenue
CapyFin.comFlorida Revenue
CapyFin.comTexas Revenue
CapyFin.comNew York Revenue
CapyFin.comGeorgia Revenue
CapyFin.comIllinois Revenue
CapyFin.comNorth Carolina Revenue
CapyFin.comMassachusetts Revenue
CapyFin.comSouth Carolina Revenue
CapyFin.comPennsylvania Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Hippo Holdings provided updated full-year 2025 guidance, projecting continued growth in Gross Written Premium and Revenue, alongside positive net income and adjusted net income, with a net loss ratio expected to be within a managed range.
Positive Outlook
- Full-year Gross Written Premium is projected to be between $1,090 million and $1,110 million, indicating sustained growth.
- Total Revenue for the full year is expected to be between $465 million and $468 million, reflecting continued top-line expansion.
- Net Income for the full year is guided to be between $53 million and $57 million, a significant positive shift.
- Adjusted Net Income for the full year is projected to be between $10 million and $14 million, demonstrating expected profitability.
- The Q4 Net Loss Ratio is guided to be between 55-60%, indicating a controlled loss environment.
Challenges Ahead
- The Q4 Gross Written Premium guidance of $269-289 million is lower than Q3's actual of $311.2 million, suggesting a potential seasonal or strategic slowdown.
- The Q4 Revenue guidance of $117-120 million is slightly lower than Q3's actual of $120.6 million.
- The full-year Net Loss Ratio guidance of 63-64% is higher than the Q3 actual of 48%, implying potential for increased losses in Q4 or a more conservative outlook.
- The guidance for Net Income and Adjusted Net Income for Q4 is significantly lower than Q3's actuals, indicating that the Q3 gain on sale of business was a one-time event.
- The company's long-term net loss ratio target is 60-65%, and the full-year guidance is at the higher end of this range, suggesting ongoing efforts to optimize underwriting profitability.