Porch Group, Inc. (PRCH)

Price$18.06Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkShares trade at a demanding growth multiple, partly justified by sharply improving profitability and higher guidance.

Porch Group, Inc. is Nasdaq-listed under PRCH. Using the observed equity value and Porch’s June balance sheet, a forward enterprise-value-to-adjusted-EBITDA check lands roughly in the high teens against management’s 2026 guidance; enterprise value means equity value plus debt minus available cash. That is not cheap for a leveraged company, though Q2 growth and the higher outlook justify a premium. Trailing valuation measures look richer, so the market already assumes substantial second-half earnings delivery.

Big pictureThe reciprocal model lowers direct underwriting ownership, but earnings still depend heavily on insurance growth and weather.

Porch’s restructuring placed homeowners underwriting in the policyholder-owned Reciprocal while Porch retains management fees, commissions, vertical software, and consumer services. Shareholders therefore do not directly own the Reciprocal’s underwriting profit or loss, but filings say Porch’s operating results depend heavily on the Reciprocal’s growth and financial health. Housing activity can influence software and moving demand, while catastrophe losses can weaken insurer surplus and constrain premium growth. The July catastrophe bond improves protection, but it cannot eliminate those cyclical and weather-driven risks.

Business strengthQ2 showed faster insurance growth, positive shareholder earnings, stronger cash generation, and another full-year guidance increase.

Porch-owned Q2 revenue rose 23% and adjusted EBITDA excluding the Reciprocal more than doubled, while net income attributable to Porch turned positive. At June quarter-end, Porch had $119.2 million of unrestricted cash and investments against $475.1 million of convertible principal, mostly due in 2028 and 2030; only $7.8 million of 2026 notes remained. Management says liquid resources cover at least twelve months of operations and debt service. First-half operating cash flow was $54.3 million, including $21.7 million from the Reciprocal; interest expense was $29.4 million. Adjusted EBITDA excludes interest and stock compensation, so it differs from cash flow.

What could change the storyExecution above guidance could unlock upside; catastrophes, slower growth, refinancing pressure, or dilution would weaken the case.

Capital allocation is mixed: Porch exhausted its $2.5 million annual open-market repurchase cap in Q1, while a separate $15 million captive purchase of shares from the Reciprocal mainly strengthened insurance capital. Meanwhile, performance awards increased the share count, and convertible notes can be settled partly in stock. Bull case: policy growth stays strong, margins hold, guidance lands near the top, catastrophe experience stays manageable, and debt is refinanced cleanly. Bear case: growth slows, storms weaken Reciprocal capital, refinancing costs rise, or stock settlement dilutes owners and compresses the valuation.

AI: News

Q2 outlook risesSecond-quarter results exceeded company expectations, with insurance growth and margins strong enough to lift full-year guidance again.

On July 29, Porch reported Q2 Porch-owned revenue growth of 23% and adjusted EBITDA excluding the Reciprocal of $39.1 million, up 150% year over year. Net income attributable to Porch was positive, and management raised 2026 guidance to $506 million-$517 million of Porch-owned revenue and $119 million-$125 million of adjusted EBITDA. The update strengthened the near-term earnings case, though those adjusted figures exclude items such as interest and stock compensation.

Cat bond adds protectionA new catastrophe bond added four-year protection above existing reinsurance, reducing exposure to unusually severe weather losses.

On July 10, specialist market publication Artemis reported Porch had secured its debut $100 million Harbor Crest Re catastrophe bond; the later 10-Q confirmed the July transaction. The multi-peril coverage protects against named storms, winter storms, severe weather, wildfire, and fire-following earthquakes, and provides about four years of reinsurance protection. This improves catastrophe protection and capital efficiency, but it does not remove Porch’s economic dependence on the Reciprocal’s growth and financial condition.

Share purchase boosts surplusPorch’s captive bought shares from the Reciprocal, converting a non-admitted asset into cash and strengthening regulatory capital.

On June 11, Porch announced its captive reinsurer had purchased about 2.1 million Porch shares from the Reciprocal for $15 million. The purpose was to turn part of the Reciprocal’s stock holding into cash that counts more fully toward statutory surplus, the regulatory capital buffer used by insurers. The transaction was separate from Porch’s open-market buyback, and the Reciprocal still held about 16.2 million shares afterward, leaving continued exposure to Porch’s stock value.

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Revenue

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2024

2025

Net income

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Free cash flow

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Total cash / debt

CashTotal debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019
Revenue	$418.9M	$313.3M	$287.5M	$275.9M	$192.4M	$72.3M	$77.6M
Gross profit	$340.0M	$201.9M	$200.9M	$168.4M	$133.7M	$54.7M	$56.1M
Gross margin	81.16%	64.46%	69.88%	61.02%	69.48%	75.71%	72.29%
Research & development	—	$55.3M	$58.5M	$59.6M	$47.0M	—	—
Operating expenses	$303.4M	$266.5M	$391.2M	$453.0M	$275.8M	$114.5M	$165.7M
Operating income	$36.6M	−$64.6M	−$190.4M	−$177.0M	−$83.4M	−$42.2M	−$88.1M
Operating margin	8.73%	−20.61%	−66.22%	−64.16%	−43.32%	−58.41%	−113.57%
EBITDA	$61.0M	−$39.0M	−$165.9M	−$149.1M	−$67.0M	−$35.6M	−$80.7M
EBITDA margin	14.57%	−12.46%	−57.72%	−54.04%	−34.81%	−49.22%	−104.06%
Net income	−$3.4M	−$32.8M	−$133.9M	−$156.6M	−$106.6M	−$54.0M	−$103.3M
Net profit margin	−0.80%	−10.48%	−46.59%	−56.73%	−55.40%	−74.73%	−133.15%
Basic EPSper basic share	-$0.03	-$0.33	-$1.39	-$1.61	-$1.14	-$1.96	-$3.31
Diluted EPSper diluted share	-$0.03	-$0.33	-$1.39	-$1.61	-$1.14	-$2.03	-$3.31

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of PRCH
Holder	Shares held
Ehrlichman Matt	22.39M
Granahan Investment Management, LLC	12.39M
BlackRock, Inc.	8.58M
D. E. Shaw & Co., Inc.	5.29M
VANGUARD CAPITAL MANAGEMENT LLC	4.51M
GILDER GAGNON HOWE & CO LLC	4.38M
Park West Asset Management LLC	3.54M
GOLDMAN SACHS GROUP INC	3.22M
GEODE CAPITAL MANAGEMENT, LLC	2.62M
STATE STREET CORP	2.48M
Portolan Capital Management, LLC	2.46M
VANGUARD PORTFOLIO MANAGEMENT LLC	2.34M
Driehaus Capital Management LLC	2.15M
Divisadero Street Capital Management, LP	2.11M
Neagle Matthew	1.99M
DIMENSIONAL FUND ADVISORS LP	1.67M
FRONTIER CAPITAL MANAGEMENT CO LLC	1.55M
Jupiter Topco LLC	1.46M
UBS Group AG	1.42M
WELLINGTON MANAGEMENT GROUP LLP	1.3M

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)74$32.41M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 2, 2026Form 4	Tabak ShawnCHIEF FINANCIAL OFFICER	SellCommon Stock	3.9K	$10.87	$42.9K	265.5K
May 26, 2026Form 4 · 10b5-1	Tabak ShawnCHIEF FINANCIAL OFFICER	SellCommon Stock	30.0K	$10.08	$302.4K	269.4K
May 20, 2026Form 4	Tabak ShawnCHIEF FINANCIAL OFFICER	SellCommon Stock	10.9K	$9.78	$106.4K	299.4K
May 20, 2026Form 4	Neagle MatthewChief Operating Officer	SellCommon Stock	62.3K	$9.78	$609.7K	1.99M
May 20, 2026Form 4	Ehrlichman MattCEO, CHAIRMAN AND FOUNDER	SellCommon Stock	120.4K	$9.78	$1.18M	15.97M