Key Highlights

  • Consensus EPS of 0.01 compares with second-quarter diluted EPS of 0.05, against no figure a year earlier.
  • Consensus revenue of USD 133.44 million compares with second-quarter revenue excluding reciprocal of USD 131.8 million, up 23%.
  • Management raised 2026 revenue guidance to USD 506 million to USD 517 million for the full year.
  • Reciprocal written premium was USD 139.8 million, up 16%, on 58,700 policies written, up 38%.

Porch Group (NASDAQ:PRCH) reports third-quarter results on Wednesday, Oct. 28, after the market closes. Consensus stands at EPS of 0.01 on revenue of USD 133.44 million, and the company has a market capitalization of USD 1.97 billion.

Porch Group provides home insurance, software and data services for homeowners and home service companies. Second-quarter revenue was USD 140,882 thousand against USD 126,077 thousand, and net income attributable to the company was USD 5,603 thousand against USD 2,579 thousand.

Estimates Against Second-Quarter Results and Raised Guidance

The EPS estimate of 0.01 is below the second-quarter diluted EPS of 0.05, and the estimates table does not state its EPS basis. The revenue estimate of USD 133.44 million is below the USD 140,882 thousand of total revenue and above the USD 131.8 million excluding reciprocal.

Management raised 2026 guidance to revenue of USD 506 million to USD 517 million and adjusted EBITDA of USD 119 million to USD 125 million. It also said leverage is better than 3x for the full year, within a long-term range of 2x to 3x.

What Management Guided and What It Left Open

Management said conversions stepped down in May because competitors priced more aggressively, which led to targeted pricing adjustments. Premium per new customer fell 4% as pricing was adjusted to hold conversion rates in a softer insurance market.

Management left open pricing elasticity, noting the execution and filing time required each month, and gave no third-quarter dollar guidance. Reciprocal written premium is consistent with an annual target of USD 600 million.

Insurance Services, Software and Consumer Detail

Insurance Services revenue was USD 92.9 million, up 38%, and adjusted EBITDA was USD 44.4 million, including a USD 3 million nonrecurring expense true-up benefit. Gross profit was USD 81.2 million at a gross margin of 87%.

Software and Data revenue was USD 23.1 million with USD 5.2 million of adjusted EBITDA as legacy products are sunset. Consumer Services revenue was USD 18.1 million with USD 3.2 million of adjusted EBITDA, and monetized services were 83,900, down 4%.

Earnings Lines, Capital and Balance Sheet

Operating loss was USD 4,113 thousand against income of USD 5,049 thousand, and the pre-tax loss was USD 13,565 thousand against income of USD 7,160 thousand. Adjusted EBITDA excluding reciprocal was USD 39.1 million against USD 15.6 million.

Statutory surplus at the reciprocal was USD 169.9 million, and the gross loss ratio was 38%. The reciprocal issued a USD 100 million catastrophe bond in June. Porch cash and investments were USD 126.8 million. The estimates table lists a market capitalization of USD 1.97 billion.

Items to Track in the Report

Reported EPS against 0.01 and revenue against USD 133.44 million are the headline comparisons. Other markers are policy counts, loss ratios and the raised guidance ranges.