Porch Group, Inc.

Q2 consolidated GAAP revenue was $141 million, up 12% year over year. Revenue excluding the reciprocal was $132 million, up 23% year over year, and Insurance Services revenue was $93 million, up 38% year over year. Gross profit for Insurance Services was $81 million with an 87% gross margin; consolidated gross margin was 85% for the quarter. Adjusted EBITDA excluding the reciprocal was $39 million, up 2.5x year over year, and Insurance Services adjusted EBITDA was $44 million, up 126% year over year. Net income attributable to Porch shareholders was $6 million. Reciprocal written premium was $140 million, up 16% year over year, and policies written were 59,000, up 38% year over year. Cash and investments at Porch were $127 million, while the reciprocal held $331 million. For 2026, management raised revenue excluding the reciprocal guidance to $506 million to $517 million, gross profit excluding the reciprocal to $419 million to $429 million, and adjusted EBITDA excluding the reciprocal to $119 million to $125 million. The midpoint of adjusted EBITDA guidance is $122 million; management said leverage should be better than 3x this year. The company still expects full-year reciprocal written premium of $600 million and more than 70,000 policies written per quarter by year-end.

Matt Ehrlichman framed the quarter as a broad beat with stronger-than-expected profitability, saying Porch is now a Rule of 50 company and expects positive net income for 2026, 2027 and beyond. He emphasized that policy count matters as much as premium in Porch’s model because policy fees contribute materially to revenue, and he said the company is managing growth and margin together rather than chasing volume alone. His tone was confident and strategic, highlighting the durability of the insurance platform, the strength of the reciprocal’s surplus, and the company’s long-term opportunity across a large TAM.

Shawn Tabak focused on the financial mechanics behind the quarter: 59,000 policies written, $140 million of reciprocal written premium, $93 million of Insurance Services revenue, $81 million of gross profit, and $44 million of Insurance Services adjusted EBITDA. He noted the 48% Insurance Services EBITDA margin, partly helped by a roughly $3 million expense true-up that he said should not recur, and said Porch ended Q2 with $127 million in cash and investments after buying 2.1 million Porch shares from the reciprocal and paying $17 million in interest expense. He also outlined the raised 2026 outlook: revenue excluding the reciprocal of $506 million to $517 million, gross profit of $419 million to $429 million, and adjusted EBITDA of $119 million to $125 million, with leverage expected to stay better than 3x.

Analysts pressed on whether the current take rate and policy growth mix are the new normal, and management said Insurance Services revenue as a percentage of reciprocal written premium was 66% in Q2 versus 65% in Q1, with a 60% to 65% range seen over the last few quarters. Questions also focused on softer market pricing and how Porch adjusts pricing; management said it can respond because its loss ratios are better than peers, and that it used targeted pricing actions when conversion rates dipped in May. Other questions covered Michigan, the use of AI and proprietary data, and what Porch plans to do with the reciprocal’s share holdings and cat bond; management said Michigan is early but promising, AI is helping build more Home Factors and improve operations, and there is no rush to sell reciprocal-held shares despite future potential to move non-admitted assets into surplus.