PRCH · Porch Group, Inc.

Porch Group’s Q1 2026 results mark a pivotal inflection point in its strategic transition to a higher-margin, fee- and commission-based homeowners insurance model. Revenue surged 29% YoY to $109.4 million, led by 50% YoY growth in Insurance Services — the largest segment — which contributed $74.7 million. This growth was underpinned by robust operational execution: quote volumes rose 69% YoY, agency branch locations increased 181%, and Reciprocal Policies Written grew 33% to 48.0 thousand, driving Reciprocal Written Premium up 18% to $114.5 million. Gross margin held steady at 83% for Porch Shareholder Interest, while Adjusted EBITDA expanded to $19.7 million (18% margin), up from $14.7 million YoY — despite a $16 million headwind from the prior-year legacy reinsurance contract wind-down. Management explicitly attributes the improvement to structural simplification and scaling efficiency, noting Q1 2026 is the first quarter with a 'tangible year-over-year comparison' post-transition. The company raised full-year 2026 guidance meaningfully across all key non-GAAP metrics: Revenue outlook widened to $495–507 million (+18–21% YoY), Adjusted EBITDA to $103–109 million (+34–42%), and Gross Profit to $401–413 million (+17–20%). Capital position strengthened, with unrestricted cash and investments rising to $126.0 million and total liquidity (including restricted cash) reaching $134.1 million — supported by $19.8 million in operating cash flow. Convertible debt remains substantial ($475.1 million), but management affirmed plans to settle the $7.8 million 2026 Notes in September and highlighted statutory surplus growth at the Reciprocal ($164.6 million, +59% YoY), reinforcing capacity for sustained premium scaling. The earnings call and investor materials underscore confidence in achieving 2026 premium-scaling targets, positioning Porch as executing against its core thesis of vertical integration, data-driven underwriting, and consumer-centric service delivery.