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Porch Group
(NASDAQ:PRCH)
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Rating:64Neutral
Price Target:
$15.00
▲(82.93% Upside)
Action:Reiterated
Date:06/27/26
The score is driven primarily by improving operations and strong cash generation, supported by a very upbeat earnings call with raised full-year revenue and EBITDA guidance. Offsetting these positives are meaningful balance-sheet risk (high debt and thin/negative equity) and an overbought technical setup (high RSI/Stochastics), while valuation is pressured by loss-making earnings and no provided dividend yield.
Positive Factors
Strong free cash flow generation
Sustained positive operating and free cash flow provides durable internal funding for underwriting capital, product investment, and deleveraging. Reliable cash conversion reduces reliance on external financing, supporting execution of growth targets and capacity to withstand industry shocks over coming quarters.
Negative Factors
High leverage and thin equity
Elevated leverage and weak equity reduce financial flexibility and increase refinancing and covenant risk. In the face of underwriting volatility or slower revenue, the capital structure limits strategic optionality, raising the probability of constrained investment or costly capital actions within the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained positive operating and free cash flow provides durable internal funding for underwriting capital, product investment, and deleveraging. Reliable cash conversion reduces reliance on external financing, supporting execution of growth targets and capacity to withstand industry shocks over coming quarters.
Read all positive factors
Porch Group Key Performance Indicators (KPIs)
Porch Group (PRCH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.65B
Dividend YieldN/A
Average Volume (3M)1.66M
Price to Earnings (P/E)―
Beta (1Y)2.52
Revenue Growth13.03%
EPS Growth7.07%
CountryUS
Employees729
SectorFinancial
Sector Strength70
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.15
Shares Outstanding109,403,270
10 Day Avg. Volume1,792,113
30 Day Avg. Volume1,659,043
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 Cap0.95
Enterprise Value/Revenue3.25
Enterprise Value/Gross Profit4.49
Enterprise Value/Ebitda15.17
Forecast
1Y Price Target
$15.83Price Target Upside93.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)-0.04
Revenue Forecast (FY)$502.38M
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 SaaS-style fees from providing vertical software products to home-service professionals (including subscriptions, licensing, and related service fees where applicable), (2) transacti...
Porch Group Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive view: strong, above-expectation Q1 results driven by Insurance Services (50% revenue growth), meaningful expansion in distribution and conversion (agency branches +181%, quote volume +69%, conversion nearly doubled), raised full-year revenue and EBITDA guidance, and improved capital/reserve economics (statutory surplus +59% and ~20% lower excess reinsurance costs). Offsetting items include flat Software & Data revenue due to cyclical housing weakness, Consumer Services at breakeven, a decline in average premium per policy from mix shift, and the normal seasonal weather risk in Q2. Overall the company demonstrated durable underwriting performance, expanding margins in the core insurance engine, and a plan to scale profitably—positives materially outweigh the cyclical and mix-related headwinds.Positive Updates
Strong Top-Line and Profitability Results
Q1 Porch shareholder interest revenue of $109M, up 29% year-over-year; Q1 gross profit $91M with an 83% gross margin; Q1 adjusted EBITDA $20M (18% margin).
Negative Updates
Software & Data Revenue Stagnation
Software and Data revenue of $22M was relatively flat year-over-year, reflecting near-trough U.S. housing activity and per-transaction pricing exposure to housing volumes.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line and Profitability Results
Q1 Porch shareholder interest revenue of $109M, up 29% year-over-year; Q1 gross profit $91M with an 83% gross margin; Q1 adjusted EBITDA $20M (18% margin).
Read all positive updates
Company Guidance
Management raised 2026 targets to a $600M organic RWP goal (≈25% YoY) and lifted Porch shareholder interest guidance to $495–507M revenue (≈20% YoY at midpoint), $401–413M gross profit (≈81% gross margin at midpoint) and $103–109M adjusted EBITDA (≈21% adjusted EBITDA margin at midpoint). The raise was driven by strong Q1 results: RWP $114M (+18% YoY), revenue $109M (+29%), gross profit $91M (83% GM), adjusted EBITDA $20M (18% margin); Insurance Services revenue $75M (+50%), gross profit $64M (85% GM) and adj. EBITDA $27M (37% margin), with adj. EBITDA/RWP 24% in Q1 (TTM 20%). KPIs underpinning the outlook included ~48k policies written (+33% YoY), RWP per policy $2,386, producing agency branch locations +181% YoY, quote volumes +69% YoY, conversion rates nearly doubled YoY while premium per new customer was only ~5% lower YoY and new‑customer RWP was ~3x prior year; statutory surplus was $165M (+59% YoY, +$61M) supporting >$800M of premium (>$1.25B including ~+$100M non‑admitted assets), excess‑of‑loss reinsurance costs down ~20%, Porch shareholder cash+investments $134M with $20M cash from ops in Q1 and the Reciprocal holding >$300M of cash and investments.Porch Group Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
22
Negative
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 482.80M | 482.41M | 437.85M | 430.30M | 275.95M | 192.43M |
| Gross Profit | 349.40M | 339.99M | 212.22M | 210.06M | 168.37M | 133.71M |
| EBITDA | 103.37M | 98.92M | 37.35M | -77.07M | -119.06M | -94.74M |
| Net Income | -8.67M | 15.32M | -32.83M | -133.93M | -156.56M | -106.61M |
Balance Sheet | ||||||
| Total Assets | 806.58M | 797.42M | 813.97M | 899.39M | 1.05B | 1.04B |
| Cash, Cash Equivalents and Short-Term Investments | 184.99M | 65.80M | 191.74M | 294.01M | 251.58M | 324.99M |
| Total Debt | 399.05M | 392.83M | 403.94M | 435.74M | 444.30M | 417.43M |
| Total Liabilities | 780.27M | 775.04M | 857.19M | 935.08M | 969.70M | 821.70M |
| Stockholders Equity | -25.40M | -24.62M | -43.23M | -35.68M | 79.35M | 217.04M |
Cash Flow | ||||||
| Free Cash Flow | 82.90M | 52.06M | -32.20M | 23.83M | -28.19M | -39.47M |
| Operating Cash Flow | 90.62M | 66.42M | -31.68M | 33.93M | -17.74M | -34.78M |
| Investing Cash Flow | -52.94M | -71.92M | -45.06M | -56.25M | -79.68M | -263.43M |
| Financing Cash Flow | -24.33M | -22.17M | -23.71M | 90.95M | 1.23M | 415.55M |
Porch Group Technical Analysis
Positive
8.20
Price Trends
10.19
Positive
8.86
Positive
10.54
Positive
Market Momentum
0.93
Negative
77.04
Negative
95.18
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 8.2 is below the 20-day moving average (MA) of 11.07, below the 50-day MA of 10.19, and below the 200-day MA of 10.54, indicating a bullish trend. The MACD of 0.93 indicates Negative momentum. The RSI at 77.04 is Negative, neither overbought nor oversold. The STOCH value of 95.18 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $807.64M | 5.70 | 17.85% | ― | -2.25% | 4.06% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $2.18B | 16.95 | 12.69% | 0.56% | 19.74% | 20.52% | |
64 Neutral | $1.65B | -101.59 | 32.36% | ― | 13.03% | 7.07% | |
63 Neutral | $1.21B | 45.05 | 5.25% | ― | 8.10% | -73.21% |
* Financial Sector Average
PRCH
Porch Group
15.04
2.95
24.40%
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83.23
12.68
17.97%
YALA
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5.49
-1.23
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CXM
Sprinklr
5.16
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-40.42%
Porch Group Corporate Events
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...
Business Operations and StrategyFinancial Disclosures
Porch Group Raises Outlook After Strong Q1 Insurance Growth
Positive
Apr 28, 2026
On April 28, 2026, Porch Group reported that first-quarter 2026 results through March 31 exceeded expectations, driven by strong performance in its Insurance Services segment and premium growth. Revenue attributable to Porch shareholders reached $...
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.