Insurance Services Revenue Growth of 38% YoY; Reciprocal Policies Written 3 Growth of 38% YoY
SEATTLE, July 29, 2026--( BUSINESS WIRE )-- Porch Group, Inc.("Porch," "the Company," "we," "our," "us") (NASDAQ: PRCH), a new kind of homeowners insurance company, today reported second quarter results through June 30, 2026, that exceeded our expectations. As a result, the Company raised guidance for the remainder of the year.
CEO Summary
"Q2 was a strong quarter and another clear proof point that the model is working. We exceeded expectations, grew Adjusted EBITDA (Excluding Reciprocal)1 meaningfully, delivered positive net income attributable to Porch, and are raising guidance2 across the board. Insurance Services continues to run ahead of schedule, with Reciprocal Written Premium3 scaling, total Reciprocal Policies Written3 up 38% year-over-year, and strong earnings flow-through from premium into Adjusted EBITDA (Excluding Reciprocal)1. With strong capacity, expanding top-of-funnel activity, and rapid policy growth, we believe Porch is increasingly positioned for sustained profitability, a stronger balance sheet profile, and disciplined premium growth over time," said Matt Ehrlichman, Chief Executive Officer, Chairman and Founder.
Second Quarter 2026 Key Financial Highlights
-
Consolidated revenue was $140.9 million, up 12% YoY. Porch-Owned Segments Revenue (Excluding Reciprocal)1, representing the revenue contributions across the Porch-owned businesses, was $131.8 million, up 23% YoY, led by Insurance Services revenue of $92.9 million, up 38% YoY.
-
Net income attributable to Porch was $5.6 million.
-
Adjusted EBITDA (Excluding Reciprocal)1 of $39.1 million grew 150% YoY, largely driven by $139.8 million of Reciprocal Written Premium ("RWP").
-
Consolidated gross profit was $87.6 million. Porch-Owned Segments Gross Profit (Excluding Reciprocal)1, representing the gross profit contributions across the Porch-owned businesses, grew 25% YoY to $111.6 million.
Second Quarter 2026 Operational Highlights
-
Top-of-funnel expansion continued, with Q2 2026 producing agency branch locations rising 148% from Q2 2025 and quote volumes rising 87% from Q2 2025.
-
Conversion remained well above prior-year levels, helping drive 206% YoY growth in Q2 2026 RWP3 from new customers, with momentum increasing exiting the quarter.
-
Reciprocal Policies Written3 grew 38% YoY, an acceleration in the rate of year-over-year growth relative to Q1 2026 (33% year-over-year).
-
Capacity continued to build: statutory surplus at the Porch Reciprocal Exchange (the "Reciprocal") ended Q2 2026 at $169.9 million, up 33% versus Q2 2025 and up 3% versus Q1 2026. Surplus combined with non-admitted assets ended at $376.5 million, supporting our ability to scale premiums long into the future while maintaining a healthy Reciprocal.
1
Adjusted EBITDA (Excluding Reciprocal), Porch-Owned Segments Revenue (Excluding Reciprocal), and Porch-Owned Segments Gross Profit (Excluding Reciprocal) are non-GAAP measures. The measures previously defined as "Adjusted EBITDA (Loss)," "Porch Shareholder Interest Revenue," and "Porch Shareholder Interest Gross Profit" have been renamed to "Adjusted EBITDA (Excluding Reciprocal)," "Porch-Owned Segments Revenue (Excluding Reciprocal)" and "Porch-Owned Segments Gross Profit (Excluding Reciprocal)," respectively, to more clearly reflect their composition. See Non-GAAP Financial Measures section .
2
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 the Company will be able to achieve these results.
3
See Key Performance Measures and Operating Metrics section for definitions of metrics.
The following table presents the Company's unaudited segment operating results for the current quarter.
Unaudited
Three Months Ended June 30, 2026
(dollar amounts in thousands)
Insurance Services
Software & Data
Consumer Services
Reciprocal
Revenue
(a)
$
92,925
$
23,087
$
18,130
$
59,624
Cost of revenue
11,736
5,663
2,849
36,927
Gross Profit
81,189
17,424
15,281
22,697
Gross Margin
87
%
75
%
84
%
38
%
Operating expenses:
Selling and marketing
(b)
37,481
8,567
10,150
9,757
Product and technology
1,364
5,177
689
3,038
General and administrative
(c)
4,278
2,024
8,117
27,316
Interest expense on intercompany surplus notes
3,527
Other expense (income)
(d)
(5,024
)
(1
)
(106
)
(13,390
)
Income (loss) before income taxes
(7,551
)
Income tax expense
1,281
Net income (loss)
$
(8,832
)
Add back:
Depreciation and amortization
(101
)
(2,554
)
(6,278
)
Stock-based compensation costs
(1,141
)
(999
)
(670
)
Interest expense
—
—
1
Mark-to-market gains
—
—
26
Other gains and losses
(67
)
—
105
Adjusted EBITDA
(e)
44,399
5,210
3,247
Adjusted EBITDA Margin
(e)
48
%
23
%
18
%
(a)
Includes $2.3 million of intercompany revenue between Insurance Services, Software & Data, and Consumer Services and $50.6 million of intercompany revenue between Insurance Services and the Reciprocal.
(b)
Includes $2.3 million of intercompany selling and marketing expense between Insurance Services, Software & Data, and Consumer Services and $22.8 million of intercompany selling and marketing expense between Insurance Services and the Reciprocal.
(c)
Includes $23.9 million of intercompany general and administrative expense between Insurance Services, Software & Data, Consumer Services, and corporate functions (collectively) and the Reciprocal.
(d)
Reciprocal segment includes a $10.9 million gain on sale of shares of Porch common stock that is eliminated in consolidation. See Balance Sheet Information section for more information about this transaction.
(e)
Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. See Non-GAAP Financial Measures section.
The following table reconciles segment Adjusted EBITDA to Adjusted EBITDA (Excluding Reciprocal).
Unaudited
Three Months Ended
June 30, 2026
Insurance Services Adjusted EBITDA
$
44,399
Software & Data Adjusted EBITDA
5,210
Consumer Services Adjusted EBITDA
3,247
Corporate general and administrative expenses (excluding depreciation, amortization, impairments, stock-based compensation expense, restructuring & other costs, and acquisition & other transaction costs)
(a)
$
(9,579
)
Corporate product and technology expenses (excluding depreciation, amortization, and stock-based compensation expense)
(b)
(4,012
)
Corporate selling and marketing expenses (excluding stock-based compensation expense)
(c)
(410
)
Corporate interest income
229
Other corporate income (expense), net
—
Corporate unallocated items
$
(13,772
)
Adjusted EBITDA (Excluding Reciprocal)
(d)
$
39,084
Net income attributable to Porch
$
5,603
(a)
Excludes $0.5 million of depreciation and amortization, $4.6 million of stock-based compensation costs, and $3.1 million of other items that are omitted from Adjusted EBITDA (Excluding Reciprocal).
(b)
Excludes less than $0.1 million of depreciation and amortization and $0.4 million of stock-based compensation costs.
(c)
Excludes $0.1 million of stock-based compensation costs.
(d)
Adjusted EBITDA (Excluding Reciprocal) is a non-GAAP measure. See Non-GAAP Financial Measures section.
The following table presents the Company's unaudited segment operating results for the same quarter of the prior year.
Unaudited
Three Months Ended June 30, 2025
(dollar amounts in thousands)
Insurance Services
Software & Data
Consumer Services
Reciprocal
Revenue
(a)
$
67,390
$
24,013
$
17,650
$
55,409
Cost of revenue
9,526
5,846
2,414
23,896
Gross Profit
57,864
18,167
15,236
31,513
Gross Margin
86
%
76
%
86
%
57
%
Operating expenses:
Selling and marketing
(b)
37,025
9,226
10,465
3,635
Product and technology
2,539
4,625
1,067
558
General and administrative
(c)
5,313
2,622
3,089
19,854
Interest expense on intercompany surplus notes
3,890
Other expense (income)
(5,453
)
(10
)
(110
)
(2,191
)
Income (loss) before income taxes
5,767
Income tax expense
99
Net income (loss)
$
5,668
Add back:
Depreciation and amortization
(85
)
(2,951
)
(840
)
Stock-based compensation costs
(1,039
)
(897
)
(437
)
Interest expense
—
—
1
Mark-to-market gains
—
—
—
Other gains and losses
(93
)
10
44
Adjusted EBITDA
(d)
$
19,657
$
5,542
$
1,957
Adjusted EBITDA Margin
(d)
29
%
23
%
11
%
(a)
Includes $2.0 million of intercompany revenue between Insurance Services, Software & Data, and Consumer Services and $36.4 million of intercompany revenue between these segments and the Reciprocal.
(b)
Includes $2.0 million of intercompany selling and marketing expense between Insurance Services, Software & Data, and Consumer Services and $25.1 million of intercompany selling and marketing expense between Insurance Services and the Reciprocal.
(c)
Includes $13.0 million of intercompany general and administrative expense between Insurance Services and the Reciprocal.
(d)
Adjusted EBITDA is a non-GAAP measure. See Non-GAAP Financial Measures section.
The following table reconciles segment Adjusted EBITDA to Adjusted EBITDA (Excluding Reciprocal).
| Unaudited |
Three Months Ended June 30, 2025 |
|
| Insurance Services Adjusted EBITDA |
$ 19,657 |
|
| Software & Data Adjusted EBITDA |
5,542 |
|
| Consumer Services Adjusted EBITDA |
1,957 |
|
| Corporate general and administrative expenses (excluding depreciation, amortization, impairments, stock-based compensation expense, restructuring & other costs, and acquisition & other transaction costs) |
(a) |
$ (7,745) |
| Corporate product and technology expenses (excluding depreciation, amortization, and stock-based compensation expense) |
(b) |
(3,740) |
| ... |
