Porch Group (PRCH) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 Adjusted EBITDA of $42 million and net income of $30.5 million, marking full-year profitability and surpassing guidance.

• Transitioned to a commission and fee-based, higher-margin insurance model with the formation of PIRE and sale of HOA, completed January 1, 2025.

• Reopened geographies and reactivated distribution partners, driving strong new business premium growth in Q1 2025.

• Strategic focus on scaling insurance, innovating vertical software, expanding data business, and growing consumer services.

• Raised 2025 Adjusted EBITDA guidance to $60 million and reaffirmed $100 million target for 2026.

Financial highlights

• Q4 2024 revenue was $100.4 million, down 12% year-over-year due to non-recurring items; organic growth trends remain strong.

• Q4 Adjusted EBITDA reached $41.8 million, a $30.1 million increase year-over-year, with margin improving to 42%.

• Full-year 2024 revenue was $438 million, up 2% year-over-year; Adjusted EBITDA improved by $52 million over prior year.

• Gross written premium for Q4 was $112 million, flat year-over-year due to EIG divestiture.

• Corporate expenses reduced by $8 million year-over-year.

Outlook and guidance

• 2025 revenue guidance is $390 million–$410 million, with gross profit expected to grow to $310–$325 million and gross margins of ~80%.

• 2025 Adjusted EBITDA guidance raised to $55–$65 million, with a 15% margin at midpoint.

• Reaffirmed 2026 Adjusted EBITDA target of $100 million.

• Guidance excludes PIRE and HOA results, which will be reported as noncontrolling interest.

• Expect positive Adjusted EBITDA every quarter in 2025 and to generate cash for shareholders.