Hippo Holdings Inc. (NYSE: HIPO) stock is soaring 5.02% in pre-market trading on Wednesday following the company's release of impressive third-quarter 2025 financial results. The digital home insurer reported a significant turnaround in profitability and beat revenue estimates, showcasing the success of its strategic initiatives.
For the quarter ended September 30, Hippo reported revenue of $121 million, surpassing the consensus estimate of $117 million. The company's net income reached $98 million, a substantial improvement from a $9 million loss in the same quarter last year. Adjusted earnings per share came in at $0.70, significantly beating analysts' expectations. Hippo's gross written premium increased by 33% year-over-year to $311 million, reflecting strong growth across its diversified product lines.
Adding to the positive sentiment, Hippo raised its full-year 2025 revenue guidance to $465-468 million, up from the previous range of $460-465 million. The company's CEO, Rick McCathron, attributed the strong performance to disciplined execution across all business segments, including a 25-point improvement in the net loss ratio. With these results demonstrating Hippo's progress towards sustainable profitability and growth, investors are showing renewed confidence in the company's long-term prospects.
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