Porch Group Reports Fourth Quarter 2025 Results
SEATTLE--( BUSINESS WIRE)--Porch Group, Inc. (“Porch,” “the Company,” “we,” “our,” “us”) (NASDAQ: PRCH), a new kind of homeowners insurance company, today reported fourth quarter and full-year results through December 31, 2025, that exceeded our expectations.
Porch generated for shareholders 1 fourth quarter 2025 revenue of $112.3 million. Net loss attributable to Porch was $(3.5) million, and Adjusted EBITDA was $23.5 million.
In January 2025, the Porch Reciprocal Exchange (“Reciprocal”) was formed as an insurance entity owned by its policyholder-members and not by Porch. While Porch does not own the Reciprocal, it is consolidated for reporting purposes. This earnings release references results generated for Porch shareholders (“Porch Shareholder Interest”), which includes the businesses Porch shareholders own: Insurance Services, Software & Data, and Consumer Services segments, along with corporate functions. This earnings release also includes consolidated results which is Porch Shareholder Interest plus the Reciprocal Segment. The following table presents unaudited financial highlights for Porch Shareholder Interest and consolidated fourth quarter 2025 results ($ in millions).
Three Months Ended December 31, 2025
Insurance
Services
Software &
Data
Consumer
Services
Corporate 2
Porch
Shareholder
Interest 1
Reciprocal
Eliminations
Consolidated
Revenue
$
75.7
$
22.3
$
16.6
$
(2.4
)
$
112.3
$
53.2
$
(41.1
)
$
124.3
Growth
n/a
3
%
2
%
n/a
n/a
24
%
Gross Profit
65.1
14.4
14.2
(2.4
)
91.4
43.4
(39.0
)
95.7
Growth 3
6
%
11
%
Gross Margin
86
%
65
%
85
%
n/a
81
%
77
%
Net income (loss)
(3.5
)
7.8
—
4.3
Adjusted EBITDA (Loss)
29.0
3.7
1.0
(10.2
)
23.5
Adjusted EBITDA (Loss) Margin 4
38
%
16
%
6
%
n/a
21
%
Cash Flow from Operations 5
$
(5.5
)
$
6.7
$
1.2
CEO Summary
“Porch had a pivotal year in 2025. We executed our transition to a simpler commission‑ and fee‑based model, delivered outperformance each quarter, and translated that progress into strong cash generation for our shareholders and statutory surplus growth for the Reciprocal. Entering 2026, we’re positioned to further scale Reciprocal Written Premium. Our confidence is reflected in our 2026 Porch Shareholder Interest outlook, which includes $98 million to $105 million of Adjusted EBITDA 6 and a target of $600 million of Reciprocal Written Premium 7, which would represent 25% year‑over‑year organic growth. We are seeing strong performance across our insurance business from adding new agencies, increasing quote volumes, improving conversion, and the launch of Porch Insurance to add a fundamentally differentiated product for customers. The Reciprocal’s 2025 gross loss ratio of 27% continues to be best-in-class, supported by our unique property data and underwriting,” said Matt Ehrlichman, Chief Executive Officer, Chairman and Founder.
Fourth Quarter 2025 Operational Highlights
1
“Porch Shareholder Interest” includes the businesses Porch shareholders own: Insurance Services, Software & Data, and Consumer Services segments, along with corporate functions.
2
Corporate includes corporate costs and eliminations relating to intersegment transactions for Revenue and Gross Profit.
3
Porch Shareholder Interest Gross Profit of $91.4 million in Q4 2025 increased 6% or $5.0 million compared to Q4 2024 consolidated Gross Profit of $86.3 million.
4
Adjusted EBITDA (Loss) Margin is calculated as Adjusted EBITDA (Loss) divided by Revenue.
5
Cash Flow from Operations represents net cash provided by or used in operating activities. See details in the unaudited Supplemental Cash Flow Information section of this release.
6
Porch is not providing a reconciliation of expected Porch Shareholder Interest Adjusted EBITDA for future periods. See “Porch Shareholder Interest Full Year 2026 Financial Outlook" in this release for further details.
7
Porch provides guidance and targets for future periods based on current market conditions, assumptions, and expectations as of the date of this release. Actual results may vary due to a number of factors, and there is no guarantee that we will be able to achieve these results.
The following table presents the Company’s key performance indicators (“KPIs”). Definitions are on page 13 of this release.
Three Months Ended
December 31,
Year Ended
December 31,
2025
2025
Insurance Services KPIs
Reciprocal Written Premium (“RWP”) (in millions)
$
125.7
$
480.9
Reciprocal Policies Written (in thousands)
49
175
RWP per Policy Written (unrounded)
$
2,569
$
2,755
Adjusted EBITDA % of RWP 1
23
%
21
%
Software & Data KPIs
Average Number of Companies (in thousands)
23.3
23.8
Annualized Average Revenue per Company (unrounded)
$
3,833
$
3,897
Consumer Services KPIs
Monetized Services (in thousands)
77.5
220.2
Average Revenue per Monetized Service (unrounded)
$
215
$
311
Balance Sheet Information (unaudited)
The following table provides the components of cash and cash equivalents, restricted cash and cash equivalents, and investments of Porch Shareholder Interest.
(in millions)
December 31, 2025
December 31, 2024
Cash and cash equivalents of Porch Shareholder Interest
$
44.7
$
46.5
Short-term investments of Porch Shareholder Interest
12.6
1.6
Long-term investments of Porch Shareholder Interest
55.4
13.5
Unrestricted cash, cash equivalents, and investments of Porch Shareholder Interest
112.7
61.6
Restricted cash and cash equivalents of Porch Shareholder Interest
8.5
28.2
All cash, cash equivalents, investments, and restricted cash and cash equivalents of Porch Shareholder Interest
$
121.2
$
89.9
At December 31, 2025, Porch Shareholder Interest cash, cash equivalents, restricted cash and cash equivalents, and investments was $121.2 million. The increase from December 31, 2024, was driven by Porch Shareholder Interest Cash Flow from Operations of $65.4 million 2, primarily from Adjusted EBITDA of $76.6 million and favorable working capital. Porch used $68.0 million of cash to repurchase a portion of the 0.75% Convertible Senior Unsecured Notes due September 2026 (the “2026 Notes”) during the year ended December 31, 2025, including $51.0 million of cash proceeds from the issuance of the 9.00% Convertible Senior Unsecured Notes due May 2030 (the “2030 Notes”). Porch also holds $106 million surplus notes from the Reciprocal, which are eliminated in consolidation. The surplus notes bear interest of SOFR +9.75%.
As of December 31, 2025, outstanding principal for convertible debt was $475.1 million. This includes $134.0 million of the 2030 Notes, $333.3 million of the 6.75% Convertible Senior Secured Notes due October 2028 (the “2028 Notes”), and $7.8 million of the 2026 Notes, which management expects to settle at maturity on September 15, 2026.
In the fourth quarter, net cash used in operating activities for Porch shareholders was $(5.5) million and included cash interest paid on our convertible notes, which is due twice per year in Q4 and Q2.
The Company’s Board of Directors has authorized the Company to repurchase its common stock this year, up to an aggregate amount not to exceed $2.5 million. This is the maximum annual amount permitted under the 2028 Notes indenture.
1
Adjusted EBITDA % of RWP is Insurance Services Adjusted EBITDA divided by RWP. Insurance Services Adjusted EBITDA is a non-GAAP financial measure. Please refer to “Non-GAAP Financial Measures” section for further details.
2
Porch Shareholder Interest Cash Flow from Operations is consistent with and also referred to as Porch Shareholder Interest Net Cash Provided by Operating Activities.
Porch Shareholder Interest Full Year 2026 Financial Outlook
Financial guidance represents Porch Shareholder Interest, the businesses owned by Porch (1), and does not include the future results of the Reciprocal which is owned by its policyholder-members and not by Porch.
Porch Shareholder Interest full year 2026 guidance is as follows:
Porch Shareholder Interest
2026 Guidance
YoY growth range
Revenue (2)
$475m to $490m
(2025: $419m)
13% to 17%
Gross Profit (2)
$385m to $400m
(2025: $344m)
12% to 16%
Adjusted EBITDA (2)
$98m to $105m
(2025: $77m)
28% to 37%
(1)
Results in this earnings release reference results generated for Porch shareholders (“Porch Shareholder Interest”), which includes the Insurance Services, Software & Data, and Consumer Services segments, along with corporate functions. These are the businesses which Porch owns.
(2)
Porch Shareholder Interest Revenue, Gross Profit and Adjusted EBITDA are non-GAAP measures.
Porch provides full year 2026 guidance based on current market conditions, assumptions, and expectations as of the date of this release. Actual results may vary due to a number of factors, and there is no guarantee that we will be able to achieve these results. Porch is not providing reconciliations of Porch Shareholder Interest expected Revenue, Gross Profit or Adjusted EBITDA for future periods to the most directly comparable measures prepared in accordance with GAAP because the Company is unable to provide these reconciliations without unreasonable effort because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of the Company’s control.
Conference Call
Porch management will host a conference call today February 11, 2026, at 5:00 p.m. Eastern time (2:00 p.m. Pacific time). The call will be accompanied by a slide presentation available on the Investor Relations section of the Company’s website at ir.porchgroup.com. A question-and-answer session will follow management’s prepared remarks.
All are invited to listen to the event by registering for the webinar, a replay of the webinar will also be available. See the Investor Relations section of the Porch’s corporate website at ir.porchgroup.com.
About Porch Group
Porch Group, Inc. (“Porch”) is a new kind of homeowners insurance company. Porch's strategy to win in homeowners insurance is to deploy leading vertical software solutions in select home-related industries, provide the best services for homebuyers including important moving services, leverage unique data for advantaged underwriting, and provide more protection for policyholders.
To learn more about Porch, visit ir.porchgroup.com.
Forward-Looking Statements
Certain statements in this release are considered forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management. Although we believe that our plans, intentions, and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions, or expectations. Forward-looking statements are inherently subject to risks, uncertainties, and assumptions. Generally, statements that are not historical facts, including statements concerning our financial outlook and guidance, possible or assumed future actions, business strategies, events, or results of operations, are forward-looking statements. These statements may be preceded by, followed by, or include the words “believe,” “estimate,” “expect,” “project,” “forecast,” “may,” “will,” “should,” “seek,” “plan,” “scheduled,” “anticipate,” “intend,” or similar expressions.
Forward-looking statements are not guarantees of performance. You should not put undue reliance on these statements which speak only as of the date hereof. You should understand that the following important factors, among others, could affect our future results and could cause those results or other outcomes to differ materially from those expressed or implied in our forward-looking statements:
We caution you that the foregoing list may not contain all the risks to forward-looking statements made in this release.
You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this release primarily on our current expectations and projections about future events and trends we believe may affect our business, financial condition, results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors, including those described above and elsewhere in this release. We disclaim any obligation to update publicly any forward-looking statements, whether in response to new information, future events, or otherwise, except as required by applicable law.
Revisions to Previously Reported Quarterly Financial Information
The Company updated the presentation of quarterly financial information for the second and third quarters of 2025 related to the elimination of certain intercompany transactions between the Reciprocal and Porch. These revisions increase revenue and selling and marketing expense equally on a consolidated basis, and their impacts have grossed-up total assets and liabilities, all of which are reflected in the full year and quarter-to-date financial information in this release. The revisions for the second and third quarters of 2025 will be included in our upcoming 10-K. The revisions had no impact on Porch Shareholder Interest and do not impact consolidated Net Income or Net Loss Attributable to Porch.
Non-GAAP Financial Measures
This release includes non-GAAP financial measures, such as Adjusted EBITDA (Loss), Adjusted EBITDA (Loss) Margin, and certain amounts related to Porch Shareholder Interest.
Our management uses these non-GAAP financial measures as supplemental measures of our operating and financial performance, for internal budgeting and forecasting purposes, to evaluate financial and strategic planning matters, and to establish certain performance goals for incentive programs. We believe that the use of these non-GAAP financial measures provides investors with useful information to evaluate our operating and financial performance and trends and in comparing our financial results with competitors, other similar companies and companies across different industries, many of which present similar non-GAAP financial measures to investors. However, our definitions and methodology in calculating these non-GAAP measures may not be comparable to those used by other companies. In addition, we may modify the presentation of these non-GAAP financial measures in the future, and any such modification may be material.
You should not consider these non-GAAP financial measures in isolation, as a substitute to or superior to financial performance measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude specified income and expenses, some of which may be significant or material, that are required by GAAP to be recorded in our consolidated financial statements. We may also incur future income or expenses similar to those excluded from these non-GAAP financial measures, and the presentation of these measures should not be construed as an inference that future results will be unaffected by unusual or non-recurring items. In addition, these non-GAAP financial measures reflect the exercise of management judgment about which income and expenses are included or excluded in determining these non-GAAP financial measures.
You should review the tables accompanying this release for reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure. We are not providing reconciliations of non-GAAP financial measures for future periods to the most directly comparable measures prepared in accordance with GAAP. We are unable to provide these reconciliations without unreasonable effort because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of our control.
Unaudited
Three Months Ended December 31, 2025
(dollar amounts in thousands)
Insurance
Services
Software &
Data
Consumer
Services
Corporate
Eliminations (1)
Porch
Shareholder
Interest
Subtotal (2)
Reciprocal
Segment
Eliminations
Related to Reciprocal
Segment (3)
Consolidated
Revenue
$
75,685
$
22,288
$
16,636
$
—
$
(2,356
)
$
112,253
$
53,175
$
(41,124
)
$
124,304
Cost of revenue
10,542
7,883
2,466
—
(1
)
20,890
9,762
(2,082
)
28,570
Gross Profit
65,143
14,405
14,170
—
(2,355
)
91,363
43,413
(39,042
)
95,734
Gross Margin
86
%
65
%
85
%
—
%
100
%
81
%
82
%
95
%
77
%
Less: Operating expenses:
Selling and marketing
35,560
8,787
10,029
290
(2,355
)
52,311
4,934
(20,209
)
37,036
Product and technology
2,781
4,768
1,160
4,245
—
12,954
707
—
13,661
General and administrative (4)
5,299
2,426
3,372
14,477
—
25,574
21,844
(18,833
)
28,585
Operating income (loss)
(19,012
)
—
524
15,928
—
16,452
Other expense (income)
(5,656
)
(2
)
(106
)
9,388
—
3,624
1,232
—
4,856
Income (loss) before income taxes
(28,400
)
—
(3,100
)
14,696
—
11,596
Income tax benefit (provision)
(378
)
—
(378
)
(6,901
)
—
(7,279
)
Net income (loss)
$
(28,778
)
$
—
$
(3,478
)
$
7,795
$
—
4,317
Less: Net income attributable to the Reciprocal
7,795
Net loss attributable to Porch
$
(3,478
)
Adjusted EBITDA (Loss) Reconciliation:
Net income (loss)
$
(28,778
)
$
(3,478
)
$
4,317
Less Reconciling items:
Net income attributable to the Reciprocal
—
7,795
Depreciation and amortization
(107
)
(4,752
)
(889
)
(474
)
—
(6,222
)
(6,222
)
Stock-based compensation expense
(1,542
)
(359
)
(488
)
(6,472
)
—
(8,861
)
(8,861
)
Interest expense
—
(1
)
(10
)
(14,291
)
—
(14,302
)
(14,302
)
Income tax provision
—
—
—
(378
)
—
(378
)
(378
)
Mark-to-market gains (losses)
—
—
8
3,623
—
3,631
3,631
Other gains and losses
(164
)
(123
)
82
(628
)
—
(833
)
(833
)
Adjusted EBITDA (Loss) (5)
$
28,972
$
3,661
$
1,012
$
(10,158
)
$
23,487
$
23,487
(1)
The “Eliminations” column represents eliminations of transactions between the Insurance Services segment, Software & Data segment, Consumer Services segment, and Corporate.
(2)
The “Porch Shareholder Interest Subtotal” column represents non-GAAP measures that are used by management to evaluate performance. “Porch Shareholder Interest” includes the Insurance Services, Software & Data, and Consumer Services segments as well as Corporate expenses and applicable intercompany eliminations.
(3)
The “Eliminations Related to Reciprocal Segment” column represents eliminations of transactions between the Reciprocal Segment and other segments or Corporate.
(4)
Includes $1.8 million provision for doubtful accounts on a consolidated basis.
(5)
Adjusted EBITDA (Loss) is a non-GAAP measure for the “Corporate,” “Porch Shareholder Interest Subtotal,” and “Consolidated” columns. See Adjusted EBITDA (Loss) sub-section for definition.
Unaudited
Three Months Ended December 31, 2024
(dollar amounts in thousands)
Insurance
Services
Software &
Data
Consumer
Services
Corporate
Eliminations (1)
Subtotal
Reciprocal
Segment
Eliminations
Related to Reciprocal
Segment (2)
Consolidated
Revenue
$
38,486
$
21,731
$
16,293
$
—
$
(1,210
)
$
75,300
$
36,703
$
(11,642
)
$
100,361
Cost of revenue
4,708
6,419
3,148
—
(4
)
14,271
1,464
(1,710
)
14,025
Gross Profit
33,778
15,312
13,145
—
(1,206
)
61,029
35,239
(9,932
)
86,336
Gross Margin
88
%
70
%
81
%
—
%
100
%
81
%
96
%
85
%
86
%
Less: Operating expenses:
Selling and marketing
12,413
9,608
8,221
462
(257
)
30,447
7,980
(9,932
)
28,495
Product and technology
112
3,502
1,171
4,535
(949
)
8,371
1,861
—
10,232
General and administrative (3)
1,717
3,109
(436
)
15,624
—
20,014
2,515
—
22,529
Operating income (loss)
(20,621
)
—
2,197
22,883
—
25,080
Other expense (income)
(1,511
)
(3
)
(188
)
(4,835
)
—
(6,537
)
(291
)
—
(6,828
)
Income (loss) before income taxes
(15,786
)
—
8,734
23,174
—
31,908
Income tax benefit (provision)
(1,434
)
—
(1,434
)
—
—
(1,434
)
Net income (loss)
$
(17,220
)
$
—
$
7,300
$
23,174
$
—
$
30,474
Adjusted EBITDA (Loss) Reconciliation:
Net income (loss)
$
(17,220
)
$
7,300
$
30,474
Less: Reconciling items:
Depreciation and amortization
(972
)
(4,262
)
(895
)
(820
)
—
(6,949
)
(5
)
—
(6,954
)
Stock-based compensation expense
(193
)
(734
)
(393
)
(6,653
)
—
(7,973
)
—
—
(7,973
)
Interest expense
—
—
(3
)
(10,718
)
—
(10,721
)
(2,025
)
1,968
(10,778
)
Income tax provision
—
—
—
(1,434
)
—
(1,434
)
—
—
(1,434
)
Mark-to-market gains (losses)
—
—
3,284
13,256
—
16,540
—
—
16,540
Recoveries of Losses on Reinsurance Contracts
—
—
—
—
—
—
—
—
—
Other gains and losses
159
(79
)
75
1,157
—
1,312
(68
)
(1,968
)
(724
)
Adjusted EBITDA (Loss) (4)
$
22,053
$
4,171
$
2,309
$
(12,008
)
$
16,525
$
41,797
(1)
The “Eliminations” column represents eliminations of transactions between the Insurance Services segment, Software & Data segment, Consumer Services segment, and Corporate.
(2)
The “Eliminations Related to Reciprocal Segment” column represents eliminations of transactions between the Reciprocal Segment and other segments or Corporate.
(3)
Includes $0.2 million provision for doubtful accounts on a consolidated basis.
(4)
Adjusted EBITDA (Loss) is a non-GAAP measure for the “Corporate,” “Subtotal,” and “Consolidated” columns. See Adjusted EBITDA (Loss) sub-section for definition.
Unaudited
Year Ended December 31, 2025
(dollar amounts in thousands)
Insurance
Services
Software &
Data
Consumer
Services
Corporate
Eliminations (1)
Porch
Shareholder
Interest
Subtotal (2)
Reciprocal Segment
Eliminations
Related to Reciprocal
Segment (3)
Consolidated
Revenue
$
266,726
$
92,935
$
68,374
$
—
$
(9,144
)
$
418,891
$
200,463
$
(136,940
)
$
482,414
Cost of revenue
39,144
25,715
10,128
—
(9
)
74,978
71,416
(3,970
)
142,424
Gross Profit
227,582
67,220
58,246
—
(9,135
)
343,913
129,047
(132,970
)
339,990
Gross Margin
85
%
72
%
85
%
—
%
100
%
82
%
64
%
97
%
70
%
Less: Operating expenses:
Selling and marketing
123,831
37,015
41,936
1,578
(9,135
)
195,225
20,876
(76,523
)
139,578
Product and technology
10,354
18,545
4,582
16,849
—
50,330
2,987
—
53,317
General and administrative
19,936
8,741
9,698
54,442
—
92,817
68,830
(56,447
)
105,200
Provision for doubtful accounts
200
1,380
2,543
—
—
4,123
1,202
—
5,325
Operating income (loss)
(72,869
)
—
1,418
35,152
—
36,570
Other expense (income)
(21,343
)
(32
)
(418
)
26,206
—
4,413
5,422
—
9,835
Income (loss) before income taxes
(99,075
)
—
(2,995
)
29,730
—
26,735
Income tax benefit (provision)
(366
)
—
(366
)
(11,051
)
—
(11,417
)
Net income (loss)
$
(99,441
)
$
—
$
(3,361
)
$
18,679
$
—
$
15,318
Less: Net income attributable to the Reciprocal
18,679
Net loss attributable to Porch
$
(3,361
)
Adjusted EBITDA (Loss) Reconciliation:
Net income (loss)
$
(99,441
)
$
(3,361
)
$
15,318
Less Reconciling items:
Net income attributable to the Reciprocal
—
18,679
Depreciation and amortization
(367
)
(14,592
)
(3,422
)
(2,236
)
—
(20,617
)
(20,617
)
Stock-based compensation expense
(4,443
)
(2,406
)
(1,735
)
(20,368
)
—
(28,952
)
(28,952
)
Gain (loss) on extinguishment of debt
—
—
—
395
—
395
395
Interest expense
—
(3
)
(9
)
(51,464
)
—
(51,476
)
(51,476
)
Income tax provision
—
—
—
(366
)
$
—
(366
)
(366
)
Mark-to-market gains (losses)
—
—
44
15,622
—
15,666
15,666
Recoveries of Losses on Reinsurance Contracts
—
—
—
7,100
—
7,100
7,100
Other gains and losses
(324
)
(330
)
235
(1,296
)
—
(1,715
)
(1,715
)
Adjusted EBITDA (Loss) (4)
$
99,738
$
18,902
$
4,792
$
(46,828
)
$
76,604
$
76,604
(1)
The “Eliminations” column represents eliminations of transactions between the Insurance Services segment, Software & Data segment, Consumer Services segment, and Corporate.
(2)
The “Porch Shareholder Interest Subtotal” column represents non-GAAP measures that are used by management to evaluate performance. “Porch Shareholder Interest” includes the Insurance Services, Software & Data, and Consumer Services segments as well as Corporate expenses and applicable intercompany eliminations.
(3)
The “Eliminations Related to Reciprocal Segment” column represents eliminations of transactions between the Reciprocal Segment and other segments or Corporate.
(4)
Adjusted EBITDA (Loss) is a non-GAAP measure for the “Corporate,” “Porch Shareholder Interest Subtotal,” and “Consolidated” columns. See Adjusted EBITDA (Loss) sub-section for definition.
Unaudited
Year Ended December 31, 2024
(dollar amounts in thousands)
Insurance
Services
Software &
Data
Consumer
Services
Corporate
Eliminations (1)
Subtotal
Reciprocal
Segment
Eliminations
Related to Reciprocal
Segment (2)
Consolidated
Revenue
$
157,073
$
89,167
$
69,137
$
—
$
(2,102
)
$
313,275
$
182,090
$
(57,517
)
$
437,848
Cost of revenue
77,063
23,748
14,755
—
(62
)
115,504
134,850
(14,434
)
235,920
Gross Profit
80,010
65,419
54,382
—
(2,040
)
197,771
47,240
(43,083
)
201,928
Gross Margin
51
%
73
%
79
%
—
%
97
%
63
%
26
%
75
%
46
%
Less: Operating expenses:
Selling and marketing
52,571
40,147
33,896
2,109
(981
)
127,742
38,214
(43,083
)
122,873
Product and technology
221
16,662
4,265
20,504
(1,059
)
40,593
7,545
—
48,138
General and administrative
6,827
13,111
8,541
56,964
—
85,443
9,806
—
95,249
Provision for doubtful accounts
—
1,189
520
—
—
1,709
(1,470
)
—
239
Operating income (loss)
(79,577
)
—
(57,716
)
(6,855
)
—
(64,571
)
Other expense (income)
(14,968
)
(14,948
)
(305
)
205
—
(30,016
)
(3,843
)
—
(33,859
)
Income (loss) before income taxes
(79,782
)
—
(27,700
)
(3,012
)
—
(30,712
)
Income tax benefit (provision)
(2,117
)
—
(2,117
)
—
—
(2,117
)
Net income (loss)
$
(81,899
)
$
—
$
(29,817
)
$
(3,012
)
$
—
$
(32,829
)
Adjusted EBITDA (Loss) Reconciliation:
Net income (loss)
$
(81,899
)
$
(29,817
)
$
(32,829
)
Less: Reconciling items:
Depreciation and amortization
(3,943
)
(15,498
)
(3,803
)
(2,255
)
—
(25,499
)
(25,522
)
Stock-based compensation expense
(1,199
)
(4,272
)
(1,993
)
(19,717
)
—
(27,181
)
(27,181
)
Gain (loss) on extinguishment of debt
—
—
—
27,436
—
27,436
27,436
Interest expense
—
19
19
(42,685
)
—
(42,647
)
(42,536
)
Income tax provision
—
—
—
(2,117
)
—
(2,117
)
(2,117
)
Mark-to-market gains (losses)
—
(909
)
4,350
6,560
—
10,001
10,001
Recoveries of Losses on Reinsurance Contracts
8,811
—
—
3,331
—
12,142
12,142
Other gains and losses
(122
)
14,144
93
(157
)
—
13,958
7,777
Adjusted EBITDA (Loss) (3)
$
31,812
$
15,774
$
8,799
$
(52,295
)
$
4,090
$
7,171
(1)
The “Eliminations” column represents eliminations of transactions between the Insurance Services segment, Software & Data segment, Consumer Services segment, and Corporate.
(2)
The “Eliminations Related to Reciprocal Segment” column represents eliminations of transactions between the Reciprocal Segment and other segments or Corporate.
(3)
Adjusted EBITDA (Loss) is a non-GAAP measure for the “Corporate,” “Subtotal,” and “Consolidated” columns. See Adjusted EBITDA (Loss) sub-section for definition.
Adjusted EBITDA (Loss)
We define Adjusted EBITDA (Loss) as net income (loss) adjusted for net income (loss) attributable to the Reciprocal; interest expense; income taxes; depreciation and amortization; gain or loss on extinguishment of debt; other expense; other income; impairments of intangible assets and goodwill; gain or loss on reinsurance contract; impairments of property, equipment, and software; stock-based compensation expense; mark-to-market gains or losses recognized on changes in the value of contingent consideration arrangements, unexercised warrants, and derivatives; restructuring and other costs; acquisition and other transaction costs; and non-cash bonus expense. Adjusted EBITDA (Loss) Margin is defined as Adjusted EBITDA (Loss) divided by revenue. Adjusted EBITDA % of RWP is defined as Insurance Services Adjusted EBITDA divided by RWP.
The following table reconciles Net income (loss) to Adjusted EBITDA (Loss) and Net income (loss) as a percentage of Porch Shareholder Interest Revenue to Adjusted EBITDA (Loss) Margin for the periods presented (dollar amounts in thousands):
Unaudited
Three Months Ended December 31, 2025
Year Ended December 31, 2025
Amount
Margin
Amount
Margin
Net income (loss)
$
4,317
4
%
$
15,318
4
%
Net loss (income) attributable to the Reciprocal
(7,795
)
(7
)%
(18,679
)
(4
)%
Interest expense
14,302
13
%
51,476
12
%
Income tax provision
378
—
%
366
—
%
Depreciation and amortization
6,222
6
%
20,617
5
%
Gain on extinguishment of debt
—
—
%
(395
)
—
%
Other income, net
(108
)
—
%
(7,483
)
(2
)%
Stock-based compensation expense
8,861
8
%
28,952
7
%
Mark-to-market gains
(3,631
)
(3
)%
(15,666
)
(4
)%
Restructuring and other costs
792
1
%
1,761
—
%
Acquisition and other transaction costs
149
—
%
337
—
%
Adjusted EBITDA (Loss)
$
23,487
21
%
$
76,604
18
%
Porch Shareholder Interest Revenue
$
112,253
100
%
$
418,891
100
%
Our segment operating and financial performance measures are Gross Profit and Adjusted EBITDA (Loss) for the Insurance Services, Software & Data, and Consumer Services segments. Adjusted EBITDA (Loss) is defined as Gross Profit less the following expenses associated with each segment: selling and marketing, product and technology, and general and administrative. Adjusted EBITDA (Loss) also excludes non-cash items or items that management does not consider reflective of ongoing core operations, such as depreciation, amortization, and stock-based compensation expense. Adjusted EBITDA (Loss) Margin for each segment is defined as Adjusted EBITDA (Loss) for the segment divided by the segment’s revenue.
The following table reconciles Gross Margin to Adjusted EBITDA (Loss) Margin for the Insurance Services, Software & Data, and Consumer Services segments.
Unaudited
Three Months Ended December 31, 2025
Insurance Services
Software & Data
Consumer Services
Gross Margin
86.1
%
64.6
%
85.2
%
Selling and marketing
(47.0
)%
(39.4
)%
(60.3
)%
Product and technology
(3.7
)%
(21.4
)%
(7.0
)%
General and administrative
(7.0
)%
(10.9
)%
(20.3
)%
Other income (expense)
7.5
%
—
%
0.6
%
Add: Reconciling items:
Depreciation and amortization
0.1
%
21.3
%
5.3
%
Stock-based compensation expense
2.0
%
1.6
%
2.9
%
Interest expense
—
%
—
%
0.1
%
Other gains and losses
0.3
%
0.6
%
(0.3
)%
Adjusted EBITDA Margin
38.3
%
16.4
%
6.1
%
The impact of corporate expenses on Adjusted EBITDA (Loss) is also a non-GAAP financial measure. Reconciliations of these non-GAAP financial measures to the nearest GAAP measure are included in the preceding tables
Porch Shareholder Interest
Certain amounts related to Porch Shareholder Interest are non-GAAP financial measures. We define Porch Shareholder Interest as the Insurance Services, Software & Data, and Consumer Services segments, together with corporate expenses.
The operating results of these segments comprise “Net loss attributable to Porch” in our unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Reconciliations of the following non-GAAP financial measures to the nearest GAAP measure are included in the tables within this section:
Reconciliations of the following non-GAAP financial measures to the nearest GAAP measure are included in the Supplemental Cash Flow Information section.
Key Performance Indicators
In the management of these businesses, we identify, measure and evaluate various operating metrics. The key performance measures and operating metrics used in managing the businesses are discussed below. These key performance measures and operating metrics are not prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and may not be comparable to or calculated in the same way as other similarly titled measures and metrics used by other companies.
Insurance Services
Reciprocal Written Premium (“RWP”) — We define RWP as the total premium written by the Reciprocal for the face value of one year’s premium gross of cancellations, plus surplus contributions and policy fees, and before deductions for reinsurance in the period. RWP excludes the impact of cancellations and premiums ceded to reinsurers and includes surplus contributions and policy fees, and, therefore, should not be used as a substitute for revenue. We use RWP to manage the business because we believe it represents the business volume generated by associated customer acquisition activities and is reflective of the competitive market position when evaluated on a per written policy basis and is a key driver of both Porch and the Reciprocal’s growth and profit opportunities.
Reciprocal Policies Written — We define Reciprocal Policies Written as the number of new and renewal insurance policies written during the period by the Reciprocal Segment.
RWP per Policy Written — We define RWP per Policy Written as the RWP in the period, which is reflective of the total amount a policyholder is expected to pay, divided by the Reciprocal Policies Written in the period.
Software & Data
Average Number of Companies — We define Average Number of Companies as the average number of companies during the period across all of our Software & Data segment. This only includes the number of companies in our Software & Data segment.
Annualized Average Revenue per Company — We define Annualized Average Revenue per Company as the revenue generated across the Software & Data segment in the period over the Average Number of Companies in the period, which is then annualized (for example, for a given quarter, multiplied by 4).
Consumer Services
Monetized Services — We define Monetized Services as the total number of services from which we generated revenue, including, but not limited to, new and renewing warranty policies, completed moving jobs, sold security, TV/Internet or other home projects, measured over the period. This only includes services from Consumer Services segment and does not include insurance policies sold.
Average Revenue per Monetized Service — We define Average Revenue per Monetized Service as total Consumer Services segment revenue generated in the period over the number of Monetized Services.
Change in Key Performance Indicator
Effective beginning with the quarter ended September 30, 2025, we updated the definition of an operational metric, RWP, to include surplus contributions to the Reciprocal and policy fees. Management believes the revised definition reflects the total amount the policyholder is expected to pay and provides better insight to management. The primary reason for the change was the then-anticipated launch of the Porch Insurance product, where policyholders will pay a 10% surplus contribution in addition to traditional premium and fees. The updated definition ensures RWP aligns the operating metric with the full economic payment expected from the policyholder. The change in calculation methodology and updated definition did not result in a significant or material difference to the reported figures as compared to the definition utilized in prior quarters.
PORCH GROUP, INC.
Condensed Consolidated Balance Sheets (Unaudited)
(all numbers in thousands)
December 31, 2025
December 31, 2024
Assets
Current assets
Cash and cash equivalents
$
44,676
$
167,643
Accounts receivable, net
11,307
19,106
Short-term investments
12,616
24,099
Reinsurance balance due
—
92,303
Prepaid expenses
6,440
8,391
Deferred policy acquisition costs
—
17,542
Restricted cash and cash equivalents
8,503
29,139
Other current assets
4,666
6,904
Total current assets
88,208
365,127
Property, equipment, and software, net
27,607
22,542
Goodwill
191,907
191,907
Long-term investments
55,412
158,652
Intangible assets, net
30,492
68,746
Other assets
6,541
6,994
Assets of Reciprocal:
(1
)
Cash and cash equivalents, including restricted
115,932
—
Accounts receivable, net
9,054
—
Short-term investments
7,664
—
Reinsurance balance due
37,653
—
Prepaid expenses and other current assets
3,945
—
Deferred policy acquisition costs
26,707
—
Intangible assets, net
23,319
—
Long-term investments
172,978
—
Other assets
4
—
Total assets
$
797,423
$
813,968
(1)
Porch Reciprocal Exchange (the “Reciprocal”) is a consolidated variable interest entity not owned by Porch Group, Inc.
PORCH GROUP, INC.
Condensed Consolidated Balance Sheets (Unaudited) - Continued
(all numbers in thousands)
December 31, 2025
December 31, 2024
Liabilities and Stockholders' Equity (Deficit)
Current liabilities
Accounts payable
$
4,046
$
4,538
Accrued expenses and other current liabilities
38,877
41,245
Deferred revenue
4,552
248,669
Refundable customer deposits
12,535
12,629
Current debt
7,772
150
Losses and loss adjustment expense reserves
—
67,785
Other insurance liabilities, current
—
39,140
Total current liabilities
67,782
414,156
Long-term debt
385,060
403,788
Other liabilities
14,987
39,249
Liabilities of Reciprocal:
(1
)
Accounts payable and other current liabilities
13,838
—
Deferred revenue
219,559
—
Losses and loss adjustment expense reserves
49,159
—
Other insurance liabilities, current
23,834
—
Other liabilities
818
—
Total liabilities
775,037
857,193
Stockholders' equity (deficit)
Common stock, $0.0001 par value per share:
11
10
Additional paid-in capital
622,996
717,066
Accumulated other comprehensive income (loss)
642
(5,446
)
Accumulated deficit
(648,268
)
(754,855
)
Porch stockholders' deficit
(24,619
)
(43,225
)
Noncontrolling interest related to the Reciprocal
47,005
—
Total stockholders' equity (deficit)
22,386
(43,225
)
Total liabilities and stockholders' equity (deficit)
$
797,423
$
813,968
(1)
The Reciprocal is a consolidated variable interest entity not owned by Porch Group, Inc.
PORCH GROUP, INC.
Condensed Consolidated Statements of Operations (Unaudited)
(all numbers in thousands except per share amounts)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
Revenue
$
124,304
$
100,361
$
482,414
$
437,848
Cost of revenue
28,570
14,025
142,424
235,920
Gross profit
95,734
86,336
339,990
201,928
Operating expenses:
Selling and marketing
37,036
28,495
139,578
122,873
Product and technology
13,661
10,232
53,317
48,138
General and administrative
28,585
22,529
110,525
95,488
Total operating expenses
79,282
61,256
303,420
266,499
Operating income (loss)
16,452
25,080
36,570
(64,571
)
Other income (expense):
Interest expense
(14,307
)
(10,778
)
(51,572
)
(42,536
)
Change in fair value of private warrant liability
5,299
(385
)
(4,013
)
691
Change in fair value of derivatives
(1,676
)
13,641
19,635
5,869
Gain on extinguishment of debt
—
—
395
27,436
Investment income and realized gains and losses, net of investment expenses
3,207
2,740
11,671
13,697
Other income, net
2,621
1,610
14,049
28,702
Total other income (expense)
(4,856
)
6,828
(9,835
)
33,859
Income (loss) before income taxes
11,596
31,908
26,735
(30,712
)
Income tax provision
(7,279
)
(1,434
)
(11,417
)
(2,117
)
Net income (loss)
4,317
30,474
$
15,318
$
(32,829
)
Less: Net income attributable to the Reciprocal
7,795
—
18,679
—
Net income (loss) attributable to Porch
$
(3,478
)
$
30,474
(3,361
)
(32,829
)
Earnings Per Share - Basic
Net income (loss) attributable to Porch per share - basic
$
(0.03
)
$
0.30
$
(0.03
)
$
(0.33
)
Weighted average shares outstanding used to compute net loss attributable to Porch per share - basic
105,539
101,179
103,688
99,585
Earnings Per Share - Diluted
Net income (loss) attributable to Porch per share - diluted
$
(0.03
)
$
0.22
$
(0.03
)
$
(0.33
)
Weighted average shares outstanding used to compute net loss attributable to Porch per share - diluted
105,539
125,868
103,688
99,585
The following tables summarize Porch Shareholder Interest results.
Three Months Ended December 31,
2025
2024
Change
Porch Shareholder Interest Revenue
(1
)
$
112,253
$
75,300
$
36,953
Porch Shareholder Interest Gross Profit
(1
)
91,363
61,029
30,334
Porch Shareholder Interest Adjusted EBITDA (Loss)
(1
)
23,487
16,525
6,962
Year Ended December 31,
2025
2024
Change
Porch Shareholder Interest Revenue
(1
)
$
418,891
$
313,275
$
105,616
Porch Shareholder Interest Gross Profit
(1
)
$
343,913
$
197,771
$
146,142
Porch Shareholder Interest Adjusted EBITDA (Loss)
(1
)
$
76,604
$
4,090
$
72,514
(1)
Porch Shareholder Interest Revenue, Gross Profit, and Adjusted EBITDA (Loss) are non-GAAP measures. For the three months and year ended December 31, 2025, Porch Shareholder Interest Adjusted EBITDA (Loss) is equivalent to total Adjusted EBITDA (Loss) for consolidated Porch, as Porch no longer owns HOA following its sale to the Reciprocal on January 1, 2025. See Non-GAAP Financial Measures section.
PORCH GROUP, INC.
Supplemental Cash Flow Information (Unaudited)
(all numbers in thousands)
The following tables provide further detail of cash flows of Porch and cash flows of the Reciprocal Segment for the three and twelve months ended December 31, 2025.
Three Months Ended December 31, 2025
Consolidated
Reciprocal
Segment
Eliminations
Porch Shareholder
Interest (1)
Net cash provided by (used in) operating activities
$
1,201
$
6,688
$
—
$
(5,487
)
Cash flows from investing activities:
Purchases of property and equipment and capitalized software development costs
(3,486
)
—
—
(3,486
)
Maturities, sales, (purchases) of investments, net
(19,024
)
(1,991
)
—
(17,033
)
Net cash provided by (used in) investing activities
(22,510
)
(1,991
)
—
(20,519
)
Cash flows from financing activities:
Other financing activities
(2,376
)
—
—
(2,376
)
Net cash provided by (used in) financing activities
(2,376
)
—
—
(2,376
)
Net change in cash and cash equivalents & restricted cash and cash equivalents
(23,685
)
4,697
—
(28,382
)
Cash and cash equivalents & restricted cash and cash equivalents, beginning of period
192,796
111,235
—
81,561
Cash and cash equivalents & restricted cash and cash equivalents, end of period
$
169,111
$
115,932
$
—
$
53,179
Year Ended December 31, 2025
Consolidated
Reciprocal
Segment
Eliminations
Porch Shareholder
Interest (1)
Net cash provided by (used in) operating activities
$
66,419
$
992
$
—
$
65,427
Cash flows from investing activities:
Purchases of property and equipment and capitalized software development costs
(14,361
)
(6
)
—
(14,355
)
Maturities, sales, (purchases) of investments, net
(58,777
)
(7,066
)
—
(51,711
)
Proceeds from sale of business
1,217
—
—
1,217
Issuance of surplus note to Reciprocal
—
—
46,813
(46,813
)
Sale of HOA to the Reciprocal
—
(46,813
)
—
46,813
Net cash provided by (used in) investing activities
(71,921
)
(53,885
)
46,813
(64,849
)
Cash flows from financing activities:
Proceeds from surplus note with Porch
—
46,813
(46,813
)
—
Proceeds from debt issuance
51,000
—
—
51,000
Repayments of principal
(68,164
)
—
—
(68,164
)
Other financing activities
(5,005
)
—
—
(5,005
)
Net cash provided by (used in) financing activities
(22,169
)
46,813
(46,813
)
(22,169
)
Net change in cash and cash equivalents & restricted cash and cash equivalents
(27,671
)
(6,080
)
—
(21,591
)
Cash and cash equivalents & restricted cash and cash equivalents, beginning of period
196,782
122,012
—
74,770
Cash and cash equivalents & restricted cash and cash equivalents, end of period
$
169,111
$
115,932
$
—
$
53,179