Porch Group (PRCH) Q4 2025 earnings summary

Executive summary

• 2025 was a transformational year, with results exceeding expectations, significant profitability gains, and a shift to a higher-margin, fee and commission-based business model.

• Statutory surplus at the Reciprocal grew 47% year-over-year to $155.1 million, supporting premium growth and 2026 targets.

• More than doubled active agencies and nearly tripled quote volumes year-over-year, driving strong new business momentum.

• Strategic initiatives, including the launch of Porch Insurance in Texas and improved conversion rates, accelerated new customer premium growth.

• Net loss attributable to shareholders was $(3.5) million for Q4 2025, while Adjusted EBITDA was $23.5 million.

Financial highlights

• Q4 2025 revenue was $112.3 million for shareholder interest, with gross profit of $91.4 million (81% margin) and Adjusted EBITDA of $23.5 million (21% margin).

• Full-year 2025 revenue for shareholder interest was $418.9 million, gross profit $343.9 million (82% margin), and Adjusted EBITDA $76.6 million (18% margin).

• Cash flow from operations for 2025 was $65.4 million; cash and investments ended at $121.2 million, up from $89.9 million in 2024.

• Insurance Services segment delivered $75.7 million in Q4 revenue (86% gross margin, 38% Adjusted EBITDA margin).

• Software & Data Q4 2025 revenue was $22.3 million (65% gross margin, 16% Adjusted EBITDA margin); Consumer Services revenue was $16.6 million (85% gross margin, 6% Adjusted EBITDA margin).

Outlook and guidance

• 2026 guidance: $600 million in organic Reciprocal Written Premium, representing 25% year-over-year growth.

• Revenue expected to grow 13%–17% to $475–$490 million; gross profit to reach $385–$400 million.

• Adjusted EBITDA projected at $98–$105 million (28%–37% growth, approx. 21% margin).

• Insurance Services revenue growth expected to exceed 20% year-over-year; software and consumer services to grow modestly.