Porch Group (PRCH) Q4 2025 earnings summary

Executive summary

• Q4 and full-year 2025 results exceeded expectations, with strong profitability, cash flow, and growth across all segments, driven by strategic initiatives such as the launch of Porch Insurance in Texas and improved conversion rates.

• Full-year Adjusted EBITDA reached $76.6 million, up 11x year-over-year, with $65.4 million in cash flow from operations.

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

• Transition to a commission- and fee-based model and the launch of the Reciprocal Exchange drove strong performance and product differentiation.

• Raised 2026 guidance, targeting $600 million in organic Reciprocal Written Premium (RWP), a 25% year-over-year increase.

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 totaled $121.2 million at year-end.

• Insurance Services segment delivered $75.7 million in Q4 revenue (86% margin) and $266.7 million in 2025 revenue.

• Software & Data segment Q4 revenue was $22.3 million (65% margin), with ongoing investments in AI and product innovation.

Outlook and guidance

• 2026 guidance: $600 million in organic RWP (25% growth), revenue of $475–$490 million (13–17% growth), gross profit of $385–$400 million (12–16% growth), and Adjusted EBITDA of $98–$105 million (28–37% growth, 21% margin).

• Insurance Services revenue expected to grow over 20% year-over-year; Software & Data and Consumer Services to grow modestly due to weak housing market.

• Gross margin expected to remain at 81–82%.