Porch Group (PRCH) AI Stock Analysis

• Market Cap: $1.70B
• Dividend Yield: N/A
• Average Volume (3M): 2.02M
• Price to Earnings (P/E): 35.3
• Beta (1Y): 2.53
• Revenue Growth: -7.41%
• EPS Growth: N/A
• Country: US
• Employees: 729
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.03
• Shares Outstanding: 104,268,890
• 10 Day Avg. Volume: 1,530,486
• 30 Day Avg. Volume: 2,017,179
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 4.33
• Enterprise Value/Gross Profit: 6.40
• Enterprise Value/Ebitda: 14.84
• 1Y Price Target: $19.24
• Price Target Upside: 17.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 58 Neutral
• Price Target: $17.00 ▲(3.85% Upside)

The overall stock score is primarily influenced by strong earnings call results and strategic growth in the Insurance Services segment. However, financial risks due to high leverage and cash flow challenges, along with a high P/E ratio, moderate the score.

Positive Factors

Insurance Services Growth

The strong performance in the Insurance Services segment, with high margins, indicates a robust growth area for Porch Group, supporting long-term revenue and profitability.

Raised Revenue Guidance

Increasing revenue guidance reflects management's confidence in sustained growth and strategic execution, which can enhance investor confidence and market positioning.

Strategic Partnerships

Expanding partnerships in the insurance sector can drive future growth and enhance distribution capabilities, strengthening Porch Group's competitive position.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting flexibility in capital allocation and increasing vulnerability to economic downturns.

Negative Free Cash Flow Growth

Negative cash flow growth indicates challenges in generating cash from operations, which could impact the company's ability to invest in growth opportunities.

Soft Housing Market Impact

A weak housing market affects key segments, potentially hindering revenue growth and profitability, posing a risk to overall business performance.

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 shows improvements in profitability with a gross profit margin of 67.66% and a net profit margin of 12.82%. However, high leverage with a debt-to-equity ratio of -13.46 and negative free cash flow growth of -104.35% indicate financial risks and cash flow challenges.

Income Statement

Porch Group's income statement shows a significant improvement in profitability metrics in the TTM period, with a gross profit margin of 67.66% and a net profit margin of 12.82%. The revenue growth rate is modest at 1.98%, indicating stable revenue performance. However, historical data reveals volatility, with previous periods showing negative net profit margins and EBIT margins, suggesting challenges in maintaining consistent profitability.

Balance Sheet

The balance sheet highlights a concerning debt-to-equity ratio of -13.46 in the TTM period, indicating high leverage and negative equity, which poses financial risk. The return on equity is also negative, reflecting challenges in generating returns for shareholders. Despite these issues, the company has managed to maintain a stable asset base.

Cash Flow

Cash flow analysis reveals a negative free cash flow growth rate of -104.35% in the TTM period, indicating cash flow challenges. The operating cash flow to net income ratio is low at 0.03, suggesting limited cash generation from operations. However, the free cash flow to net income ratio of 0.26 shows some ability to convert profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	435.60M	437.85M	430.30M	275.95M	192.43M	73.22M
Gross Profit	294.75M	212.22M	210.06M	168.37M	137.15M	55.65M
EBITDA	127.05M	37.35M	-77.07M	-116.95M	-94.42M	-34.34M
Net Income	55.83M	-32.83M	-133.93M	-156.56M	-109.08M	-51.61M
Balance Sheet
Total Assets	770.72M	813.97M	899.39M	1.05B	1.03B	268.59M
Cash, Cash Equivalents and Short-Term Investments	184.41M	191.74M	294.01M	251.58M	324.99M	196.05M
Total Debt	394.13M	403.94M	435.74M	444.30M	417.43M	47.98M
Total Liabilities	772.90M	857.19M	935.08M	969.70M	820.00M	129.18M
Stockholders Equity	-29.29M	-43.23M	-35.68M	79.35M	214.57M	139.41M
Cash Flow
Free Cash Flow	2.69M	-32.20M	23.83M	-28.94M	-39.47M	-51.55M
Operating Cash Flow	10.21M	-31.68M	33.93M	-18.49M	-34.78M	-48.67M
Investing Cash Flow	-79.09M	-45.06M	-56.25M	-79.68M	-263.43M	-10.67M
Financing Cash Flow	-28.59M	-23.71M	90.95M	1.98M	415.55M	259.61M

Porch Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.37
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 16.37 is above the 20-day moving average (MA) of 15.87, below the 50-day MA of 16.74, and above the 200-day MA of 10.51, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 52.78 is Neutral, neither overbought nor oversold. The STOCH value of 70.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRCH.

Porch Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YALA	77 Outperform	$1.12B	9.08	21.16%	―	6.79%	12.97%
CXM	75 Outperform	$1.89B	17.26	23.74%	―	6.08%	153.79%
PLUS	71 Outperform	$1.96B	17.13	11.10%	0.34%	-1.96%	5.19%
MLNK	66 Neutral	$1.48B	―	-5.41%	―	5.96%	50.29%
JAMF	64 Neutral	$1.39B	―	-6.68%	―	11.36%	46.67%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PRCH	58 Neutral	$1.70B	35.28	―	―	-7.41%	―

Porch Group Corporate Events

Porch Group’s 2030 Notes: A Looming Financial Risk with Potential Liquidity Strain

The conditional conversion feature of Porch Group, Inc.’s 2030 Notes poses a significant financial risk. If triggered, it allows note holders to convert their notes into shares or demand cash, potentially straining the company’s liquidity. Furthermore, accounting rules may necessitate reclassifying these notes as current liabilities, thereby reducing net working capital. This scenario could adversely impact Porch Group’s financial stability and operational outcomes.

Porch Group, Inc. Reports Strong Q2 Earnings

Porch Group, Inc. Reports Strong Financial Performance Amidst Soft Housing Market

Porch Group Exceeds Q2 Expectations, Raises 2025 Guidance

Porch Group, Inc. is a homeowners insurance company that leverages vertical software solutions and unique data to provide comprehensive services for homebuyers, including insurance and moving services. In its second quarter of 2025, Porch Group reported financial results that surpassed expectations, leading to an upward revision of its full-year guidance. The company achieved a revenue of $107 million and a net income of $2.6 million, with an adjusted EBITDA of $15.6 million, marking a significant improvement from the previous year.

Porch Group Exceeds Q2 2025 Financial Expectations

On August 5, 2025, Porch Group reported its second quarter 2025 financial results, which exceeded expectations, leading to an increase in its 2025 guidance. The company achieved a revenue of $107.0 million and a net income of $2.6 million, with an Adjusted EBITDA of $15.6 million, marking a significant improvement from the previous year. The formation of the Porch Reciprocal Exchange, a policyholder-owned insurance entity, contributed to these results. The company also announced new partnerships and services, such as a renewed partnership with Goosehead Insurance and new distribution partnerships, which are expected to enhance its market position.

The most recent analyst rating on (PRCH) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Porch Group stock, see the PRCH Stock Forecast page.