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What were the key takeaways from Porch Group’s earnings call?

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What is Porch Group's latest dividend and current dividend yield?

What were the key takeaways from Porch Group's earnings call?

- **Record Q3 performance**: $21 million EBITDA, surpassing $50 million annual target and tracking to $70 million (10x 2024). 
- **Surplus explosion**: Reciprocal capital +$100 million Q3 to $412 million, supporting $100 million+ future EBITDA. 
- **Margin dominance**: 18% RWP-to-EBITDA conversion, 22% loss ratio, and 82% gross margin. 
- **2026 growth engine**: $2 billion premium potential with current capital, 89 Home Factors, and AI-driven underwriting. 
- **Cash flow machine**: $71 million year-to-date cash flow, $28.8 million Q3, and $70 million EBITDA guidance. 
- **Strategic patience**: Prioritizing surplus over premium in 2025 to maximize long-term value. 


**【CEO Summary Section】**
- Q3 2025 adjusted EBITDA of $21 million, surpassing the initial $50 million annual target and tracking towards $70 million for the full year (10x increase vs. 2024). 
- Reciprocal written premium (RWP) conversion rate to Insurance Services EBITDA improved to 18% (Q2: 16%), driven by strong underwriting and data-driven pricing. 
- Reciprocal surplus + non-admitted assets reached $412 million (Q2: $309 million), supporting future premium growth at a 5:1 ratio. 
- Home Factors data expanded to 89 unique property characteristics, enabling industry-leading loss ratios of 22% (gross) and 17% (attritional). 

**【CFO Financial Commentary】**
- Q3 revenue: $115 million (82% gross margin), with Insurance Services contributing 64% ($73.8 million) at an 84% gross margin. 
- Adjusted EBITDA: $20.6 million (18% margin), up from $15.6 million in Q2. 
- Cash flow from operations: $28.8 million, with year-to-date $71 million. 
- Updated 2025 guidance: $70 million EBITDA (vs. prior $50 million target), $335-340 million gross profit, and $410-420 million revenue. 
- Repurchased $12.8 million of 2026 convertible notes, leaving $7.8 million outstanding. 

**【COO Operational Update】**
- Agency appointments +14% QoQ, quote volumes up 20% YoY, and RWP per policy of $2,884. 
- Software & Data segment: 7% YoY revenue growth to $24.6 million, with 24,000 companies at $4,140 ARR. 
- Consumer Services: 9% YoY revenue growth to $19.4 million, with 94,000 monetized services. 
- New Chief Actuary and Data Science Head hired to accelerate surplus generation. 

**【Q&A Highlights】**
- **Surplus prioritization**: 2025 focused on capital accumulation (Q3 +$100 million surplus) over premium growth, enabling $100 million+ annual EBITDA in future years. 
- **2026 outlook**: Potential to scale RWP at 5:1 ratio with current $412 million surplus, targeting $2 billion premium. 
- **Housing market**: Software/Data and Consumer Services segments impacted by low housing activity, but 2026 recovery could drive margin expansion. 
- **M&A strategy**: Restarting acquisition pipeline with capital flexibility, though no transactions announced. 
- **Home Factors monetization**: 8 new data points launched, with carriers testing ROI and pipeline expansion. 
- **Texas concentration**: 60% of RWP from Texas, with plans to expand into 22+ states in 2026. 
- **AI integration**: Using AI to accelerate insights from visual data, improving underwriting efficiency. 


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