Porch Group Surpasses Revenue Expectations, Boosts 2025 Outlook with Refined Business Model

Porch Group (PRCH) reported Q2 revenue of $107mln, surpassing the $98.06mln estimate. Gross profit increased over 400% YoY, and Adjusted EBITDA improved by $50.4mln to $15.6mln. The company revised its 2025 financial projections upward, forecasting revenue of $415mln, gross profit of $335mln, and Adjusted EBITDA of $67.5mln. Porch Group operates in the home services and insurance industries, with a market capitalization of $1.36bln.

Porch Group, Inc. (NASDAQ: PRCH), a leading homeowners insurance company, reported its second quarter 2025 results, which exceeded expectations. The company reported revenue of $107.0 million, surpassing the $98.06 million estimate. Gross profit increased over 400% year-over-year (YoY), while Adjusted EBITDA improved by $50.4 million to $15.6 million.

The company's CEO, Matt Ehrlichman, stated, "Q2 2025 was the second quarter in our go-forward operating model post the launch of the Reciprocal. It was a tremendous success as our financial results outpaced expectations and our organization delivered against key initiatives." [1]

Porch Group also revised its 2025 financial projections upward. The company now expects revenue of $415.0 million, gross profit of $335.0 million, and Adjusted EBITDA of $67.5 million. The company operates in the home services and insurance industries, with a market capitalization of $1.36 billion.

The company's operational highlights include a renewed partnership with Goosehead Insurance and new insurance agency distribution partnerships. Additionally, the Home Factors data product continues to progress, and new services were launched in the Consumer Services segment.

Porch Group's cash flow from operations was $14.9 million for Porch Shareholders. The company used $55.7 million of cash to repurchase a portion of its convertible debt during the six months ended June 30, 2025. The company also holds $106 million surplus notes from the Reciprocal, which are eliminated in consolidation.

The company's full year 2025 financial outlook is based on current market conditions and expectations as of the date of this release. The outlook does not include the future results of the Reciprocal.

Porch Group management will host a conference call today, August 5, 2025, at 5:00 p.m. Eastern time (2:00 p.m. Pacific time). The call will be accompanied by a slide presentation available on the Investor Relations section of the Company’s website at ir.porchgroup.com.

References:
[1] https://finance.yahoo.com/news/porch-group-reports-second-quarter-200200599.html