Insurance Services Fuel 53% Gross Profit Jump and Upgraded Guidance for Porch Group in Q3 2025

Porch Group, Inc. (NASDAQ: PRCH) delivered an upbeat third quarter for 2025, fueled by remarkable strength in its Insurance Services segment and robust operational execution across the board. Gross profit for Porch Shareholder Interest climbed by 53% compared to the previous year, and management raised full-year profit and cash flow guidance on the back of sustained business momentum and disciplined expense management.

53% Surge in Gross Profit and $20.6M in Adjusted EBITDA Underscore Q3 Performance

The company’s financial highlights reflect the broad-based health of Porch’s operating model. Porch Shareholder Interest—which excludes the impact of its recently formed policyholder-owned insurance reciprocal—delivered the following:

Insurance Services was the clear engine of growth, accounting for $73.8 million of Q3 revenue and delivering an impressive 84% gross margin. The $20.6 million in Adjusted EBITDA marked a $3.7 million increase year-over-year, underpinned by margin expansion and cost controls. Net loss attributable to Porch narrowed to $10.9 million, despite ongoing investments for long-term scale.

Cash and Surplus Build as Operational Momentum Strengthens

Cash flow generation was a clear highlight this quarter. Porch Shareholder Interest ended Q3 with $132.1 million in cash, equivalents, and investments—a rise of more than $42 million year-to-date—fueled by $28.8 million in operational cash flow in the quarter. The balance sheet also benefited from prudent note repurchases and ongoing deleveraging activity.

The Porch Reciprocal Exchange—consolidated for accounting but owned by policyholders—reported surplus plus non-admitted assets of $412 million, up from $71 million in the year-ago period. Management’s focus remains on further surplus growth to unlock premium capacity for 2026 and beyond.

Insurance Services Momentum Reflected in KPIs and Operational Gains

Operational performance in Porch’s core businesses continues to support the top line and profitability. The Insurance Services segment wrote $137.5 million in reciprocal written premium (RWP) on nearly 47,700 policies, with an average RWP per policy of $2,884. In Software & Data, the average client base reached 23,800, generating an annualized average revenue per company of $4,140. Consumer Services monetized nearly 94,000 services, earning an average of $206 per monetized service.

Full-Year 2025 Outlook Raised on Strong Execution

With another quarter of record operational and financial delivery, Porch management lifted guidance for full-year 2025:

• Revenue: $410M to $420M (previous midpoint: $415M)
• Gross Profit: $335M to $340M (raised $2.5M at midpoint)
• Adjusted EBITDA: $70M (previous: $65M–$70M)

The move signals confidence in the trajectory of Insurance Services and operating leverage through expense discipline and digital process innovation. Importantly, results for the policyholder-owned Reciprocal are excluded from these forward guidance figures.

What Stands Out: Sustainable Growth Platform for 2026

Porch’s latest quarter underscores the value of its vertically integrated strategy in home insurance and related software. With record gross profit expansion, a surging cash position, and focus on scaling premium capacity through the Reciprocal, Porch Group is setting a foundation for potential rapid growth into 2026. Investors and analysts will be watching execution on further surplus generation, debt management, and continued profitability in the core Insurance Services business as management targets faster premium and profit scaling ahead.

For additional information, see the Investor Relations section of Porch Group’s website at ir.porchgroup.com.

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