Porch Group, Inc. (PRCH): Results of Operations and Financial Condition
Porch Group, Inc. (PRCH) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Porch Group Reports Second Quarter 2026 Results 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
How this was made
The 30-second read
Why it matters
The filing provides quantified Q2 performance (revenue, net income, Adjusted EBITDA ex-Reciprocal) and operational KPIs (quote volumes, conversion, Reciprocal policies, statutory surplus) and states guidance was raised for the remainder of the year.
Market read
Guidance raise plus accelerating policy growth and capacity metrics can drive near-term estimate revisions and sentiment for PRCH.
What to watch
Gross margin and segment margin mix (notably low Reciprocal gross margin) and the reliance on non-GAAP Adjusted EBITDA (excluding Reciprocal) could be key for underwriting-quality concerns despite the guidance raise.
Insurance Services Revenue Growth of 38% YoY; Reciprocal Policies Written Growth of 38% YoY
Consolidated revenue rose 12% YoY, Insurance Services revenue grew 38% YoY, Adjusted EBITDA (Excluding Reciprocal) grew 150% YoY, and net income attributable to Porch was positive at $5.6 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Consolidated revenueGAAP | $140.9 million | – | 12% YoY |
| Porch-Owned Segments Revenue (Excluding Reciprocal)non-GAAP | $131.8 million | – | 23% YoY |
| Consolidated gross profitGAAP | $87.6 million | – | – |
| Porch-Owned Segments Gross Profit (Excluding Reciprocal)non-GAAP | $111.6 million | – | 25% YoY |
| Net income attributable to PorchGAAP | $5.6 million | – | – |
| Net income (loss)GAAP | $ (8,832) | – | – |
| Adjusted EBITDA (Excluding Reciprocal)non-GAAP | $39.1 million | – | 150% YoY |
| Insurance Services Adjusted EBITDAnon-GAAP | $ 44,399 | – | – |
| Software & Data Adjusted EBITDAnon-GAAP | $ 5,210 | – | – |
| Consumer Services Adjusted EBITDAnon-GAAP | $ 3,247 | – | – |
| Reciprocal Written Premium (RWP)other | $ 139.8 | – | 16 % |
| Insurance Service Gross Profit as % of RWPother | 58 % | – | – |
| Insurance Services Adjusted EBITDA % of RWPnon-GAAP | 32 % | – | – |
| Reciprocal Policies Written (in thousands)other | 58.7 | – | 38 % |
| RWP per Policy Written (unrounded)other | $ 2,383 | – | (16) % |
| Average Number of Companies (in thousands)other | 18.7 | – | (22) % |
| Annualized Average Revenue per Company (unrounded)other | $ 4,926 | – | 24 % |
| Monetized Services (in thousands)other | 83.9 | – | (4) % |
| Average Revenue per Monetized Service (unrounded)other | $ 216 | – | 7 % |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Insurance ServicesInsurance Services revenue was led by $139.8 million of Reciprocal Written Premium (“RWP”). | $ 92,925 | – | 38% YoY |
| Software & DataAnnualized Average Revenue per Company (unrounded) was $ 4,926, with a 24 % change. | $ 23,087 | – | – |
| Consumer ServicesAverage Revenue per Monetized Service (unrounded) was $ 216, with a 7 % change. | $ 18,130 | – | – |
| ReciprocalReciprocal Policies Written (in thousands) were 58.7, up 38 %. | $ 59,624 | – | – |
What drove it
- Q2 2026 producing agency branch locations rose 148% from Q2 2025.
- Quote volumes rose 87% from Q2 2025.
- RWP from new customers grew 206% YoY in Q2 2026.
- Reciprocal Policies Written grew 38% YoY, compared with 33% year-over-year growth in Q1 2026.
- Insurance Services Adjusted EBITDA Margin was 48 %, compared with 29 % in the same quarter of the prior year.
Concerns
- RWP per Policy Written (unrounded) was $ 2,383, with a (16) % change from $ 2,843.
- Average Number of Companies (in thousands) was 18.7, with a (22) % change from 24.2.
- Monetized Services (in thousands) was 83.9, with a (4) % change from 87.2.
- Net income (loss) was $ (8,832), while net income attributable to Porch was $5.6 million.
What to watch
- The durability of agency-branch and quote-volume growth.
- Whether RWP from new customers continues to grow following the reported 206% YoY increase.
- Reciprocal policy growth and RWP per Policy Written.
- Progression of Insurance Services gross profit as a percentage of RWP and Insurance Services Adjusted EBITDA as a percentage of RWP.
- The full-year 2026 outlook figures, which were not included in the provided filing text.
Balance sheet and cash flow
- Statutory surplus at the Porch Reciprocal Exchange 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.
- The Reciprocal segment included a $10.9 million gain on sale of shares of Porch common stock that is eliminated in consolidation.
Analysis
Porch reported a strong second quarter, with consolidated revenue of $140.9 million, up 12% YoY, and Porch-Owned Segments Revenue (Excluding Reciprocal) of $131.8 million, up 23% YoY. Insurance Services was the principal growth contributor: revenue was $92.9 million, up 38% YoY. The release identified $139.8 million of Reciprocal Written Premium as a key contributor to Adjusted EBITDA growth.
Profitability improved materially in the Porch-owned operations. Adjusted EBITDA (Excluding Reciprocal) was $39.1 million, up 150% YoY from $ 15,630. Insurance Services Adjusted EBITDA increased to $ 44,399 from $ 19,657, while Insurance Services Adjusted EBITDA Margin was 48 %, compared with 29 % in the prior-year quarter. Insurance Service Gross Profit as a percentage of RWP improved to 58 % from 48 %, and Insurance Services Adjusted EBITDA as a percentage of RWP increased to 32 % from 16 %.
Demand and funnel indicators were robust. Producing agency branch locations rose 148% from Q2 2025 and quote volumes rose 87% from Q2 2025. The company reported 206% YoY growth in RWP from new customers. Reciprocal Policies Written reached 58.7 thousand, up 38 %, an acceleration from the 33% year-over-year growth rate cited for Q1 2026.
The release also shows areas of mixed operating trends outside Insurance Services. Software & Data revenue was $ 23,087 versus $ 24,013 in the prior-year table, while Average Number of Companies declined 22 % to 18.7 thousand. Consumer Services revenue was $ 18,130 versus $ 17,650 in the prior-year table, although Monetized Services declined 4 % to 83.9 thousand. RWP per Policy Written declined 16 % to $ 2,383.
Capital capacity at the Reciprocal expanded, with statutory surplus of $169.9 million, up 33% versus Q2 2025 and up 3% versus Q1 2026. Surplus combined with non-admitted assets was $376.5 million. Management said it raised guidance for the remainder of the year, but the numerical full-year outlook was not present in the provided filing text, preventing an assessment of the revised guide or a comparison with prior guidance.
Management, verbatim
Q2 was a strong quarter and another clear proof point that the model is working. We exceeded expectations, grew Adjusted EBITDA (Excluding Reciprocal) meaningfully, delivered positive net income attributable to Porch, and are raising guidance across the board.
Matt Ehrlichman, Chief Executive Officer, Chairman and Founder
Not in the filing
stated, not guessed- Numerical full-year 2026 guidance, including revenue, gross margin, operating expenses, tax rate, and other guided metrics
- Prior guidance for comparison
- GAAP diluted EPS and non-GAAP diluted EPS
- Consolidated operating income or loss
- Consolidated gross margin
- Consolidated revenue prior-year amount
- Consolidated gross profit prior-year amount
- Operating cash flow
- Free cash flow
- Cash and cash equivalents
- Debt balance
- Share repurchases
- Dividends
- Prior-quarter financial results for reported revenue, profit, and EBITDA metrics
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Porch Group is a homeowners insurance platform with Insurance Services plus a Reciprocal exchange structure; this 8-K reports Q2 2026 operating results and financial condition.
Ticker impact
Porch Group reported Q2 2026 results and raised full-year guidance, citing 38% YoY growth in Reciprocal policies and 150% YoY growth in Adjusted EBITDA (ex-Reciprocal).
Likely near-term positive bias as guidance-updates and operating-metric acceleration support estimates, though investors may scrutinize sustainability of premium growth and margin mix.
The filing is a primary earnings-style update (8-K Item 2.02) with multiple quantified operating and financial metrics plus an explicit guidance increase, which typically drives estimate revisions and sentiment.
Market effects
Supports read-across for insurtech/homeowners insurance models that rely on reciprocal or capacity-backed premium scaling, potentially improving sentiment toward similar growth insurers.
Limited; company-specific update with no stated regional regulatory or capacity shock.
Low; no international expansion, reinsurance counterparty, or macro/regulatory catalyst disclosed.
Counterpoint
The headline strength is heavily supported by Reciprocal Written Premium and non-GAAP metrics; investors may discount durability if growth depends on capacity build-out or favorable timing of premium-to-earnings conversion.
Key entities
- companyPorch Group, Inc.
Reported Q2 2026 results and raised guidance, highlighting 38% YoY growth in Reciprocal policies and strong earnings flow-through.
- business_unitPorch Reciprocal Exchange
Statutory surplus ended Q2 2026 at $169.9 million, up 33% YoY, supporting premium scaling capacity.
- executiveMatt Ehrlichman
CEO who stated Q2 exceeded expectations and guidance was raised across the board.
