Porch Group (PRCH) AI Stock Analysis

• Market Cap: $1.60B
• Dividend Yield: N/A
• Average Volume (3M): 1.97M
• Price to Earnings (P/E): 33.1
• Beta (1Y): 2.63
• Revenue Growth: -7.41%
• EPS Growth: N/A
• Country: US
• Employees: 729
• Sector: Technology
• Sector Strength: 89
• Industry: Software - Application
• EPS (TTM): 0.03
• Shares Outstanding: 104,268,890
• 10 Day Avg. Volume: 2,415,714
• 30 Day Avg. Volume: 1,968,705
• 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: 1.18
• Enterprise Value/Revenue: 4.33
• Enterprise Value/Gross Profit: 6.40
• Enterprise Value/Ebitda: 14.84
• 1Y Price Target: $16.83
• Price Target Upside: 9.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 63 Neutral
• Price Target: $17.00 ▲(10.82% Upside)

Porch Group's overall stock score is driven by strong earnings call performance and positive technical indicators. However, financial performance is hampered by high leverage and cash flow issues, and the valuation is relatively high. These factors collectively moderate the overall score.

Positive Factors

Earnings

Porch Group, Inc. had another outstanding quarter, beating consensus revenue by $10 million for the second straight time and consensus EBITDA by half that.

Financial Performance

The gross loss ratio improved significantly from 117% in the year-ago period to just 34% in the current quarter, suggesting that management has vastly derisked the portfolio.

Growth Potential

Porch has rapidly become a must-own name for any SMID cap portfolio, and the current insurance capacity shows the company is still probably in the early stages of growth.

Negative Factors

Financing Costs

The coupon of 9% was a little higher than anticipated.

Forecasting and Reporting

One of the biggest challenges Porch faces is the lack of consistency in both forecasting and reporting from the sell-side and the aggregators.

Porch Group Business Overview & Revenue Model

Company Description

Porch Group, Inc. operates a software platform in the United States and Canada. The company operates through two segments, Vertical Software and Insurance. The Vertical Software segment provides software and services to home services companies and gives early access to homebuyers and homeowners. It offers services to home services companies, such as home inspectors, consumers, such as homebuyers and homeowners, service providers, such as moving, insurance, warranty, and security companies, and TV/Internet providers. This segment operates through Floify, HireAHelper, ISN, iRoofing, Palm-Tech, Porch.com, Rynoh, and V12 brands. The Insurance segment offers property related insurance policies through our own risk-bearing carrier and independent agency as well as risk-bearing home warranty company. This segment operates though American Home Protect, Elite Insurance Group, and Homeowners of America brands. In addition, the company provides property and casualty, home, auto, flood, and umbrella insurance products; and contractor services. The company was incorporated in 2011 and is headquartered in Seattle, Washington.

How the Company Makes Money

Porch Group makes money primarily through a combination of software subscription fees, service transaction revenues, and insurance-related services. The company's revenue model is anchored in its ability to offer comprehensive software solutions to home service businesses, which pay recurring subscription fees for access to Porch's tools and services. Additionally, Porch generates transaction-based revenue by facilitating connections between homeowners and service professionals, where it earns fees or commissions for successful job completions. The company also earns revenue from its insurance segment by providing homeowners insurance services, which can include policy underwriting and premium collection, either directly or through partnerships with insurance carriers. Significant partnerships with homebuilders, real estate companies, and insurance firms further contribute to Porch's earnings by expanding its network and customer base.

Porch Group Financial Statement Overview

Summary

Porch Group shows strong revenue growth but struggles with profitability and financial stability. Negative equity and high debt levels pose risks, although there are signs of operational improvements.

Income Statement

Porch Group has shown a consistent growth in revenue over the years, with a significant increase from 2020 to 2024. However, the company struggles with profitability, as both net income and EBIT remain negative. The TTM data shows a slight improvement in EBIT margin and EBITDA margin compared to previous annual data, indicating potential operational improvements.

Balance Sheet

The balance sheet presents a challenging situation for Porch Group, with negative stockholders' equity indicating financial distress. The debt-to-equity ratio is not meaningful due to negative equity, but the high total debt level poses a risk. Despite these issues, the company maintains a reasonable level of cash and equivalents.

Cash Flow

Porch Group's cash flow shows improvement in free cash flow from previous years, yet remains negative in the TTM period, highlighting ongoing operational challenges. The operating cash flow to net income ratio is negative, suggesting inefficiencies in converting income into cash. Despite improvements, cash flow stability remains a concern.

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: 15.34
• 50DMA: Positive
• 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 15.34 is above the 20-day moving average (MA) of 13.98, above the 50-day MA of 12.62, and above the 200-day MA of 7.40, indicating a bullish trend. The MACD of 0.86 indicates Negative momentum. The RSI at 60.73 is Neutral, neither overbought nor oversold. The STOCH value of 63.71 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
Sector *	68 Neutral	¥242.89B	15.13	6.64%	2.45%	9.16%	-0.19%
DSP	64 Neutral	$598.04M	282.74	5.20%	―	30.92%	―
PRCH	63 Neutral	$1.60B	33.06	75.95%	―	-7.41%	―
FRGE	62 Neutral	$287.40M	―	-28.14%	―	14.78%	21.87%
SMRT	58 Neutral	$248.25M	―	-25.48%	―	-28.45%	-224.48%
ONTF	54 Neutral	$220.42M	―	-22.60%	―	-6.88%	15.83%
BMBL	50 Neutral	$654.23M	―	-75.71%	―	-5.06%	-2318.18%

Porch Group Corporate Events

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.

Porch Group Holds Successful Annual Stockholders Meeting

On June 11, 2025, Porch Group, Inc. conducted its annual meeting of stockholders, where 88.5% of the company’s voting power was represented. During this meeting, all nominated directors were elected to the board with overwhelming support, Grant Thornton LLP’s appointment as the independent registered public accounting firm was ratified, and the executive compensation package was approved on a non-binding basis.

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.

Porch Group Completes Major Refinancing Transaction

On May 27, 2025, Porch Group completed its refinancing transactions, repurchasing $144.3 million of its 2026 Notes and issuing $134.0 million of new 2030 Notes. This move aims to retire the majority of its existing debt while minimizing shareholder dilution, positioning the company for future growth and financial stability.

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.

Porch Group Announces Refinancing with New 2030 Notes

On May 19, 2025, Porch Group, Inc. announced a refinancing transaction involving the repurchase of $144.3 million of its 2026 convertible notes and the issuance of $134.0 million in new 2030 notes. This move aims to reduce the company’s debt maturity from $174 million to $29 million by 2026, thereby deleveraging its balance sheet and minimizing shareholder dilution. The 2030 notes, which are convertible and redeemable under specific conditions, are expected to close on May 27, 2025, and will not be registered under the Securities Act.

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.