Porch Group (PRCH) AI Stock Analysis

• Market Cap: $1.89B
• Dividend Yield: N/A
• Average Volume (3M): 2.20M
• Price to Earnings (P/E): 39.1
• Beta (1Y): 2.60
• Revenue Growth: -7.41%
• EPS Growth: N/A
• Country: US
• Employees: 729
• Sector: Technology
• Sector Strength: 85
• Industry: Software - Application
• EPS (TTM): 0.03
• Shares Outstanding: 104,268,890
• 10 Day Avg. Volume: 2,274,585
• 30 Day Avg. Volume: 2,196,943
• 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: 1.00
• Enterprise Value/Revenue: 4.33
• Enterprise Value/Gross Profit: 6.40
• Enterprise Value/Ebitda: 14.84
• 1Y Price Target: $18.43
• Price Target Upside: 5.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 62 Neutral
• Price Target: $18.00 ▲(3.21% Upside)

Porch Group's overall score reflects strong technical momentum and positive earnings call sentiment, offset by financial risks due to high leverage and cash flow challenges. The high P/E ratio suggests growth expectations, but financial stability remains a concern.

Positive Factors

Insurance Services Growth

The Insurance Services segment's strong revenue and high margins indicate a robust growth area, enhancing Porch's long-term profitability and market position.

Strategic Partnerships

Expanding partnerships with key agencies strengthens Porch's distribution network, potentially increasing market reach and customer base over time.

Improved Profitability

Improved profitability metrics reflect effective cost management and pricing strategies, supporting sustainable financial performance.

Negative Factors

High Leverage

High leverage and negative equity pose financial risks, limiting Porch's flexibility to invest in growth opportunities and manage economic downturns.

Negative Free Cash Flow Growth

Negative cash flow growth highlights challenges in generating sufficient cash from operations, potentially impacting liquidity and investment capacity.

Soft Housing Market Impact

The soft housing market affects key segments, potentially limiting revenue growth and profitability in these areas, impacting overall business performance.

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 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: 17.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 17.44 is above the 20-day moving average (MA) of 16.94, above the 50-day MA of 14.86, and above the 200-day MA of 8.76, indicating a bullish trend. The MACD of 1.03 indicates Positive momentum. The RSI at 57.26 is Neutral, neither overbought nor oversold. The STOCH value of 54.39 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
PRCH	62 Neutral	$1.89B	39.12	75.95%	―	-7.41%	―
Sector *	61 Neutral	$36.69B	12.42	-10.22%	1.85%	8.50%	-7.32%
DSP	59 Neutral	$628.57M	297.17	5.20%	―	30.92%	―
SMRT	58 Neutral	$280.23M	―	-25.48%	―	-28.45%	-224.48%
ONTF	56 Neutral	$235.22M	―	-22.60%	―	-6.88%	15.83%
BMBL	52 Neutral	$702.07M	―	-75.71%	―	-5.06%	-2318.18%
FRGE	47 Neutral	$242.10M	―	-28.14%	―	14.78%	21.87%

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.

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.