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Porch Group
(NASDAQ:PRCH)
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Rating:69Neutral
Price Target:
$18.50
▲(56.25% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by improving operating performance and strong cash generation, reinforced by a bullish technical trend and an earnings call that raised guidance and emphasized a path to sustained profitability. Offsetting these positives are elevated financial risk from high leverage and thin equity, plus weak valuation support given the negative P/E and no indicated dividend yield.
Positive Factors
Insurance growth and margin expansion
Rapid insurance growth with high incremental margins strengthens Porch’s core earnings engine. Expanding policy volume and improving profitability can increase operating leverage and support more durable cash generation.
Negative Factors
High leverage and thin equity cushion
The limited equity base leaves Porch financially sensitive to earnings volatility, claims losses and refinancing needs. High leverage can constrain investment capacity and increase the consequences of operational setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Insurance growth and margin expansion
Rapid insurance growth with high incremental margins strengthens Porch’s core earnings engine. Expanding policy volume and improving profitability can increase operating leverage and support more durable cash generation.
Read all positive factors
Porch Group Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Shows profit after direct costs for each segment, highlighting where Porch earns healthy margins versus where revenue is thin after costs. Helps identify which businesses are scalable and which rely on volume or expensive fulfillment, signaling where margin expansion or cost control could improve overall earnings.
Shows profit after direct costs for each segment, highlighting where Porch earns healthy margins versus where revenue is thin after costs. Helps identify which businesses are scalable and which rely on volume or expensive fulfillment, signaling where margin expansion or cost control could improve overall earnings.
Data provided by:
The Fly
The FlyPorch Group (PRCH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.94B
Dividend YieldN/A
Average Volume (3M)2.01M
Price to Earnings (P/E)―
Beta (1Y)2.59
Revenue Growth15.79%
EPS Growth-125.94%
CountryUS
Employees801
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)-0.12
Shares Outstanding113,519,840
10 Day Avg. Volume1,514,380
30 Day Avg. Volume2,012,217
Financial Highlights & Ratios
PEG Ratio3.12
Price to Book (P/B)-38.45
Price to Sales (P/S)1.96
P/FCF Ratio18.18
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$19.63Price Target Upside65.75% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)>-0.01
Revenue Forecast (FY)$517.93M
Porch Group Business Overview & Revenue Model
Company Description
Porch Group, Inc. functions as a technology company, delivering a comprehensive software platform across both the United States and Canada. Its business model is structured around two core segments: Vertical Software and Insurance. The Vertical So...
How the Company Makes Money
Porch Group generates revenue primarily through (1) software and data products sold to home-service professionals and enterprises and (2) transaction- and move-related monetization tied to homebuyers/homeowners.
1) Software and data revenue: Porc...
Porch Group Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call conveys largely positive momentum: strong, high‑margin growth coming from Insurance Services with accelerating policies written, raised full‑year guidance, a healthier reciprocal statutory surplus and inaugural reinsurance (cat bond). Offsetting items are concentrated and generally manageable in the near term — a softer homeowners pricing environment that briefly pressured conversion, non‑recurring benefits supporting some margin improvement, a Q2 storm, and subdued performance in housing‑tied Software & Data and Consumer Services. Management emphasized durable economics, AI/data advantages, and path to continued scaling and profitability.Positive Updates
Positive Net Income Milestone
Net income attributable to Porch shareholders was $6 million in Q2 and management expects positive net income for the full year 2026 and ongoing, marking a transition to sustained profitability.
Negative Updates
Stagnant Housing Market Pressures Other Segments
Software & Data and Consumer Services revenues were relatively flat year-over-year (Software & Data revenue $23M, Consumer Services $18M) with the Software & Data decline driven by sunsetting a legacy SMB product; both segments tied to a weak U.S. housing market.
Read all updates
Q2-2026 Updates
Positive
Negative
Positive Net Income Milestone
Net income attributable to Porch shareholders was $6 million in Q2 and management expects positive net income for the full year 2026 and ongoing, marking a transition to sustained profitability.
Read all positive updates
Company Guidance
Porch substantially raised 2026 targets: revenue for Porch‑owned segments (ex‑reciprocal) is now guided to $506–$517M (midpoint $512M, +22% y/y), gross profit ex‑reciprocal to $419–$429M (midpoint +23% y/y) and adjusted EBITDA ex‑reciprocal to $119–$125M (midpoint $122M, +59% y/y); the company has already generated $59M of adjusted EBITDA in H1 (Q2 adjusted EBITDA ex‑reciprocal $39M), has increased midpoint guidance by >$20M since the start of the year, expects net income attributable to Porch shareholders to be positive for the full year and going forward, targets reciprocal written premium (RWP) of $600M (H1 RWP $255M, H2 expected ~$345M) with policies ramping to >70,000/quarter by year‑end, expects leverage to be better than 3x this year, and cites a strong reciprocal statutory surplus of $170M (up 33% y/y) that today supports >$800M of premium and approaches $2B of capacity.Porch Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
28
Negative
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 504.39M | 482.41M | 437.85M | 430.30M | 275.95M | 192.43M |
| Gross Profit | 361.11M | 339.99M | 212.22M | 210.06M | 168.37M | 133.71M |
| EBITDA | 90.46M | 98.92M | 37.35M | -77.07M | -119.06M | -94.74M |
| Net Income | -5.65M | 15.32M | -32.83M | -133.93M | -156.56M | -106.61M |
Balance Sheet | ||||||
| Total Assets | 815.96M | 797.42M | 813.97M | 899.39M | 1.05B | 1.04B |
| Cash, Cash Equivalents and Short-Term Investments | 218.46M | 65.80M | 191.74M | 294.01M | 251.58M | 324.99M |
| Total Debt | 405.28M | 392.83M | 403.94M | 435.74M | 444.30M | 417.43M |
| Total Liabilities | 799.62M | 775.04M | 857.19M | 935.08M | 969.70M | 821.70M |
| Stockholders Equity | -11.85M | -24.62M | -43.23M | -35.68M | 79.35M | 217.04M |
Cash Flow | ||||||
| Free Cash Flow | 83.67M | 52.06M | -32.20M | 23.83M | -28.19M | -39.47M |
| Operating Cash Flow | 96.32M | 66.42M | -31.68M | 33.93M | -17.74M | -34.78M |
| Investing Cash Flow | -72.37M | -71.92M | -45.06M | -56.25M | -79.68M | -263.43M |
| Financing Cash Flow | -16.24M | -22.17M | -23.71M | 90.95M | 1.23M | 415.55M |
Porch Group Technical Analysis
Positive
11.84
Price Trends
14.19
Positive
11.66
Positive
10.20
Positive
Market Momentum
0.97
Negative
65.01
Neutral
82.01
Negative
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 11.84 is below the 20-day moving average (MA) of 15.62, below the 50-day MA of 14.19, and above the 200-day MA of 10.20, indicating a bullish trend. The MACD of 0.97 indicates Negative momentum. The RSI at 65.01 is Neutral, neither overbought nor oversold. The STOCH value of 82.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRCH.
Porch Group Risk Analysis
Porch Group disclosed 70 risk factors in its most recent earnings report. Porch Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Porch Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $1.69B | 64.29 | 5.25% | ― | 8.10% | -73.21% | |
74 Outperform | $845.88M | 6.27 | 16.63% | ― | -3.75% | -3.09% | |
69 Neutral | $1.94B | -139.40 | 25.17% | ― | 15.79% | -125.94% | |
68 Neutral | $2.27B | 18.06 | 11.84% | 1.15% | 15.01% | 11.40% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
PRCH
Porch Group
17.09
0.70
4.27%
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86.85
15.41
21.57%
YALA
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5.64
-2.16
-27.69%
CXM
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7.40
-1.21
-14.05%
Porch Group Corporate Events
Business Operations and StrategyFinancial Disclosures
Porch Group Raises Guidance After Strong Q2 Results
Positive
Jul 29, 2026
On July 29, 2026, Porch Group reported second-quarter 2026 results that outpaced internal expectations, prompting the company to raise guidance for the rest of the year. Consolidated revenue rose 12% year over year to $140.9 million, with Porch-ow...
Business Operations and StrategyShareholder Meetings
Porch Group Shareholders Back Board, Auditor and Compensation
Positive
Jun 15, 2026
Porch Group, Inc. held its annual meeting of stockholders on June 10, 2026, with 90.2% of the company’s voting power represented, and shareholders elected eight directors to serve until the 2027 annual meeting, each receiving between 96.8% a...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Porch Group Subsidiary Buys Shares to Boost Capital
Positive
Jun 11, 2026
On June 10, 2026, Porch Group subsidiary Porticus Reinsurance Ltd. bought about 2.1 million shares of Porch common stock from the Porch Reciprocal Exchange for $15 million in a privately negotiated transaction at $7.17 per share, after securing ap...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.