Porch Group, Inc. (PRCH)
NASDAQ:PRCH
Top Page
Porch Group
(NASDAQ:PRCH)
Select Model
Select Model
Rating:56Neutral
Price Target:
$7.50
▼(-0.13% Downside)
Action:ReiteratedDate:02/17/26
The score is primarily driven by a meaningful 2025 operating and cash-flow turnaround but weighed down by a pressured balance sheet (high debt and negative equity). Earnings-call guidance and operational momentum are constructive, while technicals remain weak versus key moving averages and valuation support is limited due to a negative P/E and no dividend.
Positive Factors
Profitability Turnaround
Porch delivered a durable profitability inflection in 2025 with adjusted EBITDA materially positive and margins expanding. Sustained higher margins indicate improving unit economics and operating leverage, which support reinvestment, scaling of the insurance platform, and stronger internal funding for growth.
Negative Factors
Leverage & Negative Equity
High absolute debt and multi-year negative shareholders' equity constrain financial flexibility and raise refinancing and covenant risk. Even with improving operations, the stressed capital structure increases interest burdens and limits capacity for opportunistic investments or shock absorption over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Turnaround
Porch delivered a durable profitability inflection in 2025 with adjusted EBITDA materially positive and margins expanding. Sustained higher margins indicate improving unit economics and operating leverage, which support reinvestment, scaling of the insurance platform, and stronger internal funding for growth.
Read all positive factors
Porch Group (PRCH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$762.15M
Dividend YieldN/A
Average Volume (3M)1.11M
Price to Earnings (P/E)61.8
Beta (1Y)2.48
Revenue Growth-2.13%
EPS GrowthN/A
CountryUS
Employees729
SectorFinancial
Sector Strength70
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.03
Shares Outstanding106,149,690
10 Day Avg. Volume840,932
30 Day Avg. Volume1,108,887
Financial Highlights & Ratios
PEG Ratio-0.69
Price to Book (P/B)-38.45
Price to Sales (P/S)1.96
P/FCF Ratio18.18
Enterprise Value/Market Cap1.45
Enterprise Value/Revenue2.36
Enterprise Value/Gross Profit3.40
Enterprise Value/Ebitda10.82
Forecast
1Y Price Target
$16.83Price Target Upside124.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.07
Revenue Forecast (FY)$484.29M
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...
How the Company Makes Money
Porch Group primarily makes money through (1) insurance-related revenue and (2) software/data and transaction revenue tied to home services.
1) Insurance revenue (insurance operations): Porch earns revenue via premiums from insurance policies it ...
Porch Group Key Performance Indicators (KPIs)
Porch Group Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial story: significant improvement in profitability (11x adjusted EBITDA growth), strong Q4 results, meaningful build in reciprocal statutory surplus, top-of-funnel and distribution momentum, and the strategic rollout of Porch Insurance. These positives are balanced by macro housing softness that limits cyclical upside, a one-time software cost that compressed software gross margin, some near-term cash timing/interest headwinds, and execution risk in scaling conversion and agency penetration. On balance, the highlights materially outweigh the lowlights.Positive Updates
Transformational Profitability and Cash Generation
Full-year 2025 adjusted EBITDA of ~$77M, an 11x increase versus 2024, with an adjusted EBITDA margin of ~18% and strong cash generation: ~$65.4M cash flow from operations (≈85% conversion of adjusted EBITDA).
Negative Updates
Housing Market Headwinds
Weak U.S. housing activity is persisting; MBA forecast revised from a prior multi-year view to only ~3% rise in home purchases by 2026 (vs. prior 20%), which pressures software & consumer services that charge per transaction and could limit cyclical upside.
Read all updates
Q4-2025 Updates
Positive
Negative
Transformational Profitability and Cash Generation
Full-year 2025 adjusted EBITDA of ~$77M, an 11x increase versus 2024, with an adjusted EBITDA margin of ~18% and strong cash generation: ~$65.4M cash flow from operations (≈85% conversion of adjusted EBITDA).
Read all positive updates
Company Guidance
Porch guided to $600 million of organic reciprocal written premium in 2026 (implied 25% year‑over‑year growth) and for Porch shareholder interest expects revenue of $475–$490 million (13–17% growth), an associated gross margin of 81–82% (gross profit $385–$400 million), and adjusted EBITDA of $98–$105 million (≈21% margin); management called for insurance services revenue to grow north of 20% year‑over‑year while software & data and Consumer Services should grow modestly, warned Q1 adjusted EBITDA may be modestly lower year‑over‑year (tough legacy comparisons) with sequential EBITDA improvement and accelerating top‑line growth thereafter.Porch Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
35
Negative
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 482.41M | 437.85M | 430.30M | 275.95M | 192.43M |
| Gross Profit | 339.99M | 212.22M | 210.06M | 168.37M | 133.71M |
| EBITDA | 98.92M | 37.35M | -77.07M | -119.06M | -94.74M |
| Net Income | 15.32M | -32.83M | -133.93M | -156.56M | -106.61M |
Balance Sheet | |||||
| Total Assets | 797.42M | 813.97M | 899.39M | 1.05B | 1.04B |
| Cash, Cash Equivalents and Short-Term Investments | 65.80M | 191.74M | 294.01M | 251.58M | 324.99M |
| Total Debt | 392.83M | 403.94M | 435.74M | 444.30M | 417.43M |
| Total Liabilities | 775.04M | 857.19M | 935.08M | 969.70M | 821.70M |
| Stockholders Equity | -24.62M | -43.23M | -35.68M | 79.35M | 217.04M |
Cash Flow | |||||
| Free Cash Flow | 52.06M | -32.20M | 23.83M | -28.19M | -39.47M |
| Operating Cash Flow | 66.42M | -31.68M | 33.93M | -17.74M | -34.78M |
| Investing Cash Flow | -71.92M | -45.06M | -56.25M | -79.68M | -263.43M |
| Financing Cash Flow | -22.17M | -23.71M | 90.95M | 1.23M | 415.55M |
Porch Group Technical Analysis
Negative
7.51
Price Trends
7.63
Negative
8.45
Negative
11.72
Negative
Market Momentum
-0.15
Negative
45.17
Neutral
56.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRCH, the sentiment is Negative. The current price of 7.51 is above the 20-day moving average (MA) of 7.34, below the 50-day MA of 7.63, and below the 200-day MA of 11.72, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 45.17 is Neutral, neither overbought nor oversold. The STOCH value of 56.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRCH.
Porch Group Risk Analysis
Porch Group disclosed 69 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.03B | 7.22 | 19.47% | ― | 5.80% | 12.20% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $2.14B | 16.37 | 12.93% | 0.56% | 6.94% | 9.98% | |
64 Neutral | $1.41B | 69.87 | 3.93% | ― | 6.48% | 168.94% | |
56 Neutral | $762.15M | 61.80 | -13.21% | ― | -2.13% | ― |
* Financial Sector Average
PRCH
Porch Group
7.18
1.25
21.08%
PLUS
Eplus
81.27
22.42
38.09%
YALA
Yalla Group
6.51
1.34
25.92%
CXM
Sprinklr
5.65
-2.25
-28.48%
Porch Group Corporate Events
Business Operations and StrategyFinancial Disclosures
Porch Group Posts Strong Q4 2025 Under Reciprocal Model
Positive
Feb 11, 2026
Porch Group reported that for the fourth quarter of 2025, revenue attributable to its shareholders reached $112.3 million, with a net loss of $3.5 million and Adjusted EBITDA of $23.5 million, while consolidated revenue was $124.3 million and net ...
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.