Porch Group (PRCH) AI Stock Analysis

• Market Cap: $986.28M
• Dividend Yield: N/A
• Average Volume (3M): 2.06M
• Price to Earnings (P/E): 38.4
• Beta (1Y): 2.43
• Revenue Growth: -2.13%
• EPS Growth: N/A
• Country: US
• Employees: 729
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.10
• Shares Outstanding: 105,371,350
• 10 Day Avg. Volume: 918,283
• 30 Day Avg. Volume: 2,063,938
• PEG Ratio: 0.20
• Price to Book (P/B): -11.34
• Price to Sales (P/S): 1.12
• P/FCF Ratio: -15.21
• Enterprise Value/Market Cap: 2.11
• Enterprise Value/Revenue: 4.71
• Enterprise Value/Gross Profit: 6.56
• Enterprise Value/Ebitda: 17.45
• 1Y Price Target: $18.20
• Price Target Upside: 94.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.04
• Revenue Forecast (FY): $417.43M

• Rating: 57 Neutral
• Price Target: $9.50 ▲(1.50% Upside)

Porch Group's overall stock score reflects a mix of strong earnings performance and significant financial risks. The company's profitability and cash flow improvements are offset by a weak balance sheet and high valuation. Technical indicators suggest bearish momentum, while the earnings call provides a positive outlook with some risks.

Positive Factors

Cash Flow Generation

The significant improvement in cash flow generation indicates effective cash management, enhancing financial stability and operational flexibility.

Insurance Segment Performance

Strong performance in the insurance segment suggests robust profitability and strategic positioning, contributing to long-term growth potential.

Gross Profit Margin

Improved gross profit margin reflects effective cost control and pricing strategy, supporting sustained profitability and competitive advantage.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting the company's ability to invest in growth opportunities and affecting long-term solvency.

Geographic Concentration Risk

High geographic concentration increases vulnerability to regional economic downturns, impacting revenue stability and growth prospects.

Challenging Housing Market

A sluggish housing market affects transaction-based revenue streams, potentially hindering growth in key business segments.

Porch Group Business Overview & Revenue Model

Company Description

Porch Group, Inc. is a home services platform that connects homeowners with home improvement professionals. The company operates primarily in the home services sector, offering a range of services including home repair, maintenance, and improvement through its various digital platforms. Porch Group provides tools and resources for service professionals and homeowners, facilitating seamless communication and project management.

How the Company Makes Money

Porch Group generates revenue through multiple channels, primarily by charging service professionals for leads generated through its platform. This includes subscription fees for premium services, pay-per-lead models, and other performance-based advertising solutions. Additionally, Porch Group partners with various home service providers and manufacturers, allowing them to reach a broader audience through the Porch platform. The company also earns revenue from its software solutions, which help service providers manage their operations more efficiently. Partnerships with companies in related sectors, such as insurance and real estate, further enhance its revenue opportunities by providing integrated services to homeowners.

Porch Group Financial Statement Overview

Summary

Porch Group has shown significant improvement in profitability and cash flow generation, with a positive net profit margin and strong free cash flow growth. However, the balance sheet remains a concern due to high leverage and negative equity, which poses financial risks.

Income Statement

Porch Group has shown significant improvement in its income statement metrics over the TTM period. The gross profit margin increased to 71.77%, indicating strong cost management and pricing power. The net profit margin turned positive at 6.91%, a notable turnaround from previous losses. Revenue growth is modest at 1.58%, but the positive EBIT and EBITDA margins suggest improved operational efficiency. However, the company still faces challenges in sustaining high growth rates.

Balance Sheet

The balance sheet reveals significant leverage with a debt-to-equity ratio of 36.92, indicating high financial risk. The negative stockholders' equity suggests potential solvency issues. Return on equity is negative, reflecting past losses. While the company has improved its income statement, the balance sheet remains a concern due to high debt levels and negative equity.

Cash Flow

Cash flow metrics show a strong recovery, with free cash flow growth of 1177.12% in the TTM period. The operating cash flow to net income ratio is 0.44, indicating that cash flows are supporting earnings. The free cash flow to net income ratio is 0.89, suggesting effective cash management. Despite past volatility, the recent improvement in cash flow generation is a positive sign.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	442.48M	437.85M	430.30M	275.95M	192.43M	72.30M
Gross Profit	317.57M	212.22M	210.06M	168.37M	133.71M	54.74M
EBITDA	119.33M	37.35M	-77.07M	-119.06M	-94.74M	-34.34M
Net Income	30.59M	-32.83M	-133.93M	-156.56M	-106.61M	-54.03M
Balance Sheet
Total Assets	787.75M	813.97M	899.39M	1.05B	1.04B	268.39M
Cash, Cash Equivalents and Short-Term Investments	93.17M	191.74M	294.01M	251.58M	324.99M	196.05M
Total Debt	387.13M	403.94M	435.74M	444.30M	417.43M	47.98M
Total Liabilities	777.26M	857.19M	935.08M	969.70M	821.70M	161.06M
Stockholders Equity	-27.92M	-43.23M	-35.68M	79.35M	217.04M	107.33M
Cash Flow
Free Cash Flow	27.34M	-32.20M	23.83M	-28.19M	-39.47M	-51.55M
Operating Cash Flow	38.62M	-31.68M	33.93M	-17.74M	-34.78M	-48.67M
Investing Cash Flow	-42.26M	-45.06M	-56.25M	-79.68M	-263.43M	-10.67M
Financing Cash Flow	-20.23M	-23.71M	90.95M	1.23M	415.55M	259.61M

Porch Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRCH, the sentiment is Negative. The current price of 9.36 is below the 20-day moving average (MA) of 9.69, below the 50-day MA of 13.25, and below the 200-day MA of 11.49, indicating a bearish trend. The MACD of -1.13 indicates Negative momentum. The RSI at 31.45 is Neutral, neither overbought nor oversold. The STOCH value of 55.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRCH.

Porch Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YALA	81 Outperform	$1.13B	8.81	20.19%	―	5.80%	12.20%
PLUS	81 Outperform	$2.37B	20.21	11.50%	0.56%	6.94%	9.98%
CXM	77 Outperform	$1.90B	18.42	21.35%	―	6.48%	168.94%
JAMF	69 Neutral	$1.73B	―	-5.48%	―	12.28%	42.19%
MLNK	66 Neutral	―	―	-5.41%	―	5.96%	50.29%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PRCH	57 Neutral	$986.28M	38.36	―	―	-2.13%	―

Porch Group Corporate Events

Porch Group Exceeds Q3 2025 Expectations with Strong Results

Porch Group reported its third-quarter results for 2025, which exceeded expectations, driven by strong performance in its insurance services. The company achieved a revenue of $115.1 million and an Adjusted EBITDA of $20.6 million, marking a $3.7 million increase from the previous year. The company also raised its Gross Profit and Adjusted EBITDA guidance. The formation of the Porch Reciprocal Exchange, an insurance entity owned by policyholder-members, contributed to the company’s consolidated reporting. The Reciprocal showed a significant increase in surplus, positioning Porch for potential growth in premiums and profits in the future.