Porch Group (PRCH) investor relations material

Market opportunity and business model

• U.S. homeowners insurance market estimated at $200B, with significant growth potential and less than 2% penetration in Texas.

• Focus on high-margin, commission and fee-based business model, resulting in predictable, recurring revenue and low earnings volatility.

• Proprietary property data covers ~90% of U.S. homes, enabling superior risk selection and pricing.

• Differentiated offerings include extra coverages, home warranties, and membership perks for homebuyers.

• Early access to homebuyers through integrated software and partnerships, targeting a segment with higher retention and lower churn.

Financial performance and targets

• Q2 2026 Reciprocal Written Premium (RWP) reached $140M, with Insurance Services Adjusted EBITDA at $44M and Adjusted EBITDA (Excl. Reciprocal) at $39M.

• Adjusted EBITDA (Excl. Reciprocal) guidance for 2026 is $122M, with a medium-term target of $660M.

• Insurance Services Adjusted EBITDA margin at 24% of RWP on a trailing twelve-month basis.

• Net leverage ratio improved to 3.5x in Q2 2026, with guidance to fall below 3x by year-end.

• Statutory surplus for the Reciprocal grew 33% year-over-year, supporting strong growth capacity.

Operational execution and growth

• Number of producing agency branch locations increased 148% YoY, driving an 87% YoY increase in quote volumes.

• Conversion rates for new policies up 58% YoY, with RWP from new customers up 206% YoY in Q2 2026.

• Reciprocal policies written grew 38% YoY to 58.7K in Q2 2026.

• Ahead of schedule for medium-term targets, with 2026 RWP guidance at $600M and Adjusted EBITDA (Excl. Reciprocal) at $122M.