Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $107 million, primarily from $12.121 billion of reciprocal written premium, with a gross profit of $89 million, reflecting a 431% increase year-over-year [6][16] - Adjusted EBITDA for Q2 was $16 million, an improvement of $50 million compared to the prior year, resulting in a 15% margin [6][16] - Cash flow from operations for Q2 was $15 million, contributing to a total of $42 million for the first half of 2025 [7][37] Business Line Data and Key Metrics Changes - Insurance services generated $67.4 million in revenue from $121 million of reciprocal written premium, with a gross profit of $57.9 million and a gross margin of 86% [20] - Software and data revenue was $24 million, a 4% increase year-over-year, with a gross profit of $18.2 million and a 76% gross margin [21] - Consumer services revenue decreased by 6% to $17.7 million, with a gross profit of $15.2 million and an 86% gross margin [22] Market Data and Key Metrics Changes - The reciprocal ended Q2 with $299 million in surplus, an increase of $102 million from the previous quarter and $259 million from Q2 2024 [10][11] - The homeowners insurance market is projected to grow at high single digits annually over the next ten years, with Porch Group positioned to benefit from this growth [5] Company Strategy and Development Direction - The company has transitioned to a commission and fee-based model, aiming for predictable and high-margin financial results [5] - The focus is on growing premiums while also increasing surplus at the reciprocal, with a target of $500 million in reciprocal written premium for 2025 [27] - The company is expanding its agency distribution channel and has increased its sales team from 2 to 26 employees [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business across macroeconomic cycles, noting that homeowners insurance is a necessary purchase [14] - The company anticipates that a potential recession could benefit its business, as lower interest rates may stimulate the housing market [15] - Management highlighted strong underwriting performance and a favorable loss ratio of 34% for the reciprocal in Q2, compared to 117% the previous year [84] Other Important Information - The company has settled most of its 2026 convertible notes and is on track to reach a leverage goal of 2 to 3 times adjusted EBITDA in the medium term [25] - The company raised its 2025 revenue guidance by $5 million, now ranging from $420 million to $425 million, and increased adjusted EBITDA guidance midpoint to $67.5 million [26] Q&A Session Summary Question: Why did the take rate in insurance increase from 51.5% to almost 56%? - Management noted that the reciprocal written premium is efficiently converting into revenue, exceeding expectations [41][42] Question: How is the company managing growth versus margin expansion? - Management emphasized a balanced approach, aiming for consistent growth while also expanding margins over time [53][54] Question: What was the impact of weather on Q2 results? - Management indicated that weather conditions were normalized, and the company has strong reinsurance protection in place [58][59] Question: Can you provide insights on the HomeFactors data applications beyond underwriting? - Management highlighted various use cases for the data, including marketing campaigns and enhancing consumer experience through the Porch app [66][68] Question: How is the reception of new insurance agency partnerships? - Management reported positive reception and excitement among agents due to competitive commissions and differentiated product offerings [73]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________________________ Table of Contents FORM 10-Q ___________________________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to Commis ...

Q2 2025 Performance Highlights - Porch Shareholder Interest revenue reached $107 million[20], with a gross profit of $89.2 million[20] and an 83% gross margin[20] - Adjusted EBITDA for Porch Shareholder Interest was $15.6 million[20], representing a 15% margin[20] - Reciprocal Written Premium (RWP) grew to $120.7 million[20], a $72 million increase or 431% increase year-over-year[20, 21] - Porch Shareholder Interest Cash Flow from Operations was $14.9 million[20] Reciprocal Performance - The Reciprocal's surplus combined with non-admitted assets reached $299 million as of June 30, 2025[27], a $102 million increase compared to the prior quarter[27] and a $259 million increase compared to the prior year[27] - The company estimates that a ~$300M surplus could potentially drive ~$1.5B Reciprocal Written Premium and ~$240M Insurance Services Adjusted EBITDA[29] Segment Performance - Insurance Services revenue was $67.4 million with a gross profit of $57.9 million and Adjusted EBITDA of $19.7 million[42], representing an 86% gross margin and 29% Adjusted EBITDA margin[42, 50] - Software & Data revenue was $24.0 million with a gross profit of $18.2 million and Adjusted EBITDA of $5.5 million[42], representing a 76% gross margin and 23% Adjusted EBITDA margin[42, 54] - Consumer Services revenue was $17.7 million with a gross profit of $15.2 million and Adjusted EBITDA of $2.0 million[42], representing an 86% gross margin and 11% Adjusted EBITDA margin[42, 58] Guidance - The company increased its 2025 revenue guidance to $405 million - $425 million[68], gross profit guidance to $328 million - $342 million[68], and Adjusted EBITDA guidance to $65 million - $70 million[68]

Exhibit 99.1 Porch Group Reports Second Quarter 2025 Results Exceeds Expectations and Increases Guidance Driven by Insurance Services SEATTLE, August 5, 2025 (BUSINESS WIRE) – Porch Group, Inc. ("Porch Group", "Porch" or "the Company") (NASDAQ: PRCH), a new kind of homeowners insurance company, today reported second quarter results through June 30, 2025, that exceeded expectations and correspondingly raised 2025 guidance. Porch generated for shareholders second quarter 2025 revenue of $107.0 million. Net in ...

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Porch Group, Inc. (PRCH) currently holding a Momentum Style Score of B [2][3] Group 2: Performance Metrics - PRCH shares have increased by 4.24% over the past week, outperforming the Zacks Internet - Software industry, which rose by 2.59% [5] - Over the last quarter, PRCH shares have surged by 138.35%, and over the past year, they have gained 600.55%, while the S&P 500 has only increased by 23.56% and 13.28%, respectively [6] Group 3: Trading Volume and Earnings Outlook - The average 20-day trading volume for PRCH is 1,991,823 shares, indicating a bullish sign with rising stock prices [7] - In the past two months, one earnings estimate for PRCH has moved higher, raising the consensus estimate from -$0.22 to -$0.18, with no downward revisions [9] Group 4: Conclusion - Considering the performance metrics and earnings outlook, PRCH is rated as a 2 (Buy) stock with a Momentum Score of B, making it a promising near-term investment [11]

Group 1 - Porch Group, Inc. has transitioned from a tech company focused on home services to a data-driven platform emphasizing insurance, software, and consumer engagement [1] - The company's current strategy prioritizes margin-focused operations rather than service provision [1] Group 2 - The analysis primarily targets small- to mid-cap companies, which are often overlooked by investors, while also occasionally reviewing large-cap companies for a broader market perspective [1]

Group 1 - The analysis begins coverage on Porch Group (NASDAQ: PRCH) with a comprehensive overview of their business model, history, financial performance, Q1 2025 earnings, valuation, and risks [1] - A 'Hold' rating will be issued for Porch Group based on the analysis [1]

PART I — FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited Q1 2025 consolidated financial statements reflect the company's financial position and performance, significantly impacted by the Reciprocal Exchange formation [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) The March 31, 2025, balance sheet reflects total assets of **$802.3 million** and a **$32.0 million** stockholders' deficit, including the consolidated Reciprocal Exchange Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $65,899 | $167,643 | | Total current assets | $111,368 | $365,127 | | Goodwill | $191,907 | $191,907 | | Assets of Reciprocal (VIE) | $403,267 | $0 | | **Total assets** | **$802,283** | **$813,968** | | **Liabilities & Stockholders' Deficit** | | | | Total current liabilities | $73,071 | $414,156 | | Long-term debt | $409,160 | $403,788 | | Liabilities of Reciprocal (VIE) | $319,911 | $0 | | **Total liabilities** | **$834,332** | **$857,193** | | Porch stockholders' deficit | ($52,418) | ($43,225) | | **Total stockholders' deficit** | **($32,049)** | **($43,225)** | - On January 1, 2025, Porch sold HOA to the newly formed Porch Reciprocal Exchange, a consolidated VIE managed by Porch[8](index=8&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)%20(Unaudited)) Q1 2025 consolidated net income was **$3.7 million**, a turnaround from a **$13.4 million** loss in Q1 2024, driven by reduced cost of revenue Q1 2025 vs Q1 2024 Performance (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $104,745 | $115,443 | | Cost of revenue | $39,297 | $78,366 | | **Gross Profit** | **$65,448** | **$37,077** | | Operating loss | ($1,266) | ($34,668) | | **Net income (loss)** | **$3,736** | **($13,362)** | | Net loss attributable to the Reciprocal | ($4,659) | $0 | | **Net income (loss) attributable to Porch** | **$8,395** | **($13,362)** | | Net income (loss) attributable to Porch per share - basic | $0.08 | ($0.14) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Q1 2025 net cash used in operating activities was **$11.2 million**, a reversal from **$8.5 million** provided in Q1 2024, primarily due to working capital shifts Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | ($11,178) | $8,465 | | Net cash provided by (used in) investing activities | ($19,368) | $12,697 | | Net cash used in financing activities | ($229) | ($2,501) | | **Net change in cash** | **($30,775)** | **$18,661** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Notes detail accounting policies and the strategic shift to a reciprocal insurance model, establishing new segments and the Reciprocal's formation - As of January 2025, the company operates under new segments: Insurance Services, Software & Data, Consumer Services (Porch Shareholder Interest), and the Reciprocal Segment[32](index=32&type=chunk)[62](index=62&type=chunk) - The Reciprocal's formation on January 1, 2025, involved Porch selling HOA and receiving approximately **$106 million** in surplus notes[85](index=85&type=chunk) - As of April 1, 2025, the Reciprocal's reinsurance program includes excess of loss catastrophe coverage starting at **$25 million** and a 7.5% third-party quota share[163](index=163&type=chunk)[164](index=164&type=chunk) - The company is involved in legal proceedings alleging TCPA violations, with potential loss currently unestimable[173](index=173&type=chunk)[177](index=177&type=chunk) [Management's Discussion and Analysis (MD&A)](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the Q1 2025 transition to a new reciprocal insurance model, leading to improved profitability and Adjusted EBITDA despite a revenue decrease [Business Overview](index=36&type=section&id=Business%20Overview) Porch leverages SaaS relationships and property data for its homeowners insurance business, operating under four new segments as of January 2025 - Porch leverages relationships with approximately **24,000** SaaS companies to gain insights into U.S. homebuyers and properties for its insurance business[187](index=187&type=chunk) - Unique property data enhances risk assessment, pricing, and underwriting for the policyholder-owned Porch Reciprocal Exchange, managed by Porch[193](index=193&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Q1 2025 consolidated revenue decreased 9% to **$104.7 million**, but operating loss significantly narrowed, and Adjusted EBITDA turned positive due to the new reciprocal model Consolidated Results Summary (in thousands) | Metric | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $104,745 | $115,443 | ($10,698) | (9)% | | Cost of revenue | $39,297 | $78,366 | ($39,069) | (50)% | | Operating loss | ($1,266) | ($34,668) | $33,402 | (96)% | | Net income (loss) attributable to Porch | $8,395 | ($13,362) | $21,757 | (163)% | | Adjusted EBITDA (Loss) | $16,861 | ($16,788) | $33,649 | (200)% | - Revenue decreased primarily due to higher reinsurance ceding, while cost of revenue fell due to the same program and fewer weather-related claims[202](index=202&type=chunk)[203](index=203&type=chunk) - Adjusted EBITDA improved due to the shift to the reciprocal model, generating higher-margin management fees, and reduced weather-related claims[206](index=206&type=chunk) [Porch Shareholder Interest Results (Non-GAAP)](index=42&type=section&id=Porch%20Shareholder%20Interest%20Results%20(Non-GAAP)) Porch Shareholder Interest segments showed strong Q1 2025 performance, with flat revenue but significant increases in Gross Profit and Adjusted EBITDA Porch Shareholder Interest Performance (in thousands) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $84,546 | $84,416 | $130 | | Gross Profit | $69,074 | $49,838 | $19,236 | | Adjusted EBITDA (Loss) | $16,861 | ($4,075) | $20,936 | - Gross Profit and Adjusted EBITDA improved due to the shift to managing the Reciprocal, generating high-margin management fees, and reduced weather-related claims[220](index=220&type=chunk)[221](index=221&type=chunk) [Key Performance Measures and Operating Metrics](index=44&type=section&id=Key%20Performance%20Measures%20and%20Operating%20Metrics) The company tracks key operating metrics for its new segments, including Reciprocal Written Premium, Average Companies, and Monetized Services - Q1 2025 Insurance Services metrics include **$96.9 million** in Reciprocal Written Premium and **36.1 thousand** policies written[222](index=222&type=chunk) - Q1 2025 Software & Data metrics include **24.1 thousand** average companies and **$3,644** in annualized average revenue per company[228](index=228&type=chunk) - Q1 2025 Consumer Services metrics include **71.0 thousand** monetized services and **$207** in average revenue per monetized service[232](index=232&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity and capital resources as of March 31, 2025, are discussed, with management affirming sufficient funding for 12 months Liquidity of Porch Shareholder Interest (in thousands) | Component | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Unrestricted cash, cash equivalents, and investments | $96,624 | $61,648 | | Restricted cash and cash equivalents | $17,213 | $28,244 | | **Total cash, cash equivalents, and investments** | **$113,837** | **$89,892** | - The company has outstanding convertible notes totaling **$507.1 million** principal, with maturities in 2026 (**$173.8 million**) and 2028 (**$333.3 million**)[254](index=254&type=chunk)[255](index=255&type=chunk) - Net cash used in operating activities was **$11.2 million** in Q1 2025, a reversal from **$8.5 million** provided in Q1 2024, due to ceded insurance premium timing[260](index=260&type=chunk)[261](index=261&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks including interest rate fluctuations, inflation, and dependence on the Reciprocal's financial health - The company's **$507.1 million** fixed-rate convertible debt means interest expense is not directly impacted by market rate changes[280](index=280&type=chunk) - Fixed income investment portfolios of both the company and the Reciprocal are exposed to unrealized losses in a rising interest rate environment[282](index=282&type=chunk) - Inflation negatively impacts operations through higher costs and could reduce consumer spending[284](index=284&type=chunk) - A key risk is the company's dependence on the Reciprocal's financial condition and growth, as it impacts Porch's management fee revenue[286](index=286&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025[287](index=287&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter[288](index=288&type=chunk) PART II — OTHER INFORMATION [Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) The company refers to Note 16 for legal proceedings, believing current claims will not materially adversely affect the business - The report refers to Note 16 in the financial statements for a description of certain litigation and legal proceedings[291](index=291&type=chunk) - Management believes current legal proceedings will not materially adversely affect the company's business, financial condition, or results of operations[292](index=292&type=chunk) [Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were disclosed from the Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes from the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[293](index=293&type=chunk) [Other Information](index=52&type=section&id=Item%205.%20Other%20Information) Two Board members entered Rule 10b5-1 trading plans in March 2025 to sell shares for tax obligations related to board compensation - Lead Independent Director Alan Pickerill entered a Rule 10b5-1 trading plan on March 13, 2025, to sell up to **40,000** shares[297](index=297&type=chunk) - Board member Rachel Lam entered a Rule 10b5-1 trading plan on March 14, 2025, to sell up to **50,000** shares[298](index=298&type=chunk)

Core Viewpoint - Porch Group, Inc. reported quarterly earnings of $0.02 per share, exceeding the Zacks Consensus Estimate of a loss of $0.07 per share, marking a significant improvement from a loss of $0.21 per share a year ago [1] Financial Performance - The company posted revenues of $104.75 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 30.20%, although this is a decline from year-ago revenues of $115.44 million [2] - Over the last four quarters, Porch Group has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance - Porch Group shares have increased approximately 27% since the beginning of the year, contrasting with the S&P 500's decline of -3.9% [3] Future Outlook - The company's earnings outlook will be crucial for determining the sustainability of its stock price movement, with current consensus EPS estimates for the coming quarter at -$0.02 on revenues of $98.16 million, and -$0.10 on revenues of $400 million for the current fiscal year [4][7] - The estimate revisions trend for Porch Group is currently mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Internet - Software industry, to which Porch Group belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was reported at $85 million, generated from $97 million of written premium, both exceeding expectations [6][7] - Gross profit reached $69 million, an 86% increase year-over-year, with gross margins at 82% [8][20] - Adjusted EBITDA was $17 million, representing a 20% margin and a $34 million increase compared to the prior year [9][20] - Net income attributable to Porch was positive at $8 million, with positive cash flow from operations amounting to $27 million [9][26] Business Line Data and Key Metrics Changes - Insurance services accounted for 59% of revenue, with a gross margin of 85% and adjusted EBITDA of $25.8 million [19][22] - Software and data revenue was $22 million, a 4% increase year-over-year, with a gross margin of 75% [22] - Consumer services revenue decreased by 9% to $14.7 million, driven by the closure of lower-margin moving products [24] Market Data and Key Metrics Changes - The reciprocal's written premium reached $97 million, reflecting a 10% increase year-over-year [37] - New business premium doubled compared to the prior year, indicating strong growth in the insurance segment [40] Company Strategy and Development Direction - The company has transitioned to a commission and fee-based model, focusing on higher margins and predictable results [5][6] - Strategic focus areas include scaling insurance premiums, software innovation, and expanding data services [31][35] - The company aims to grow its written premium to $3 billion over the next 7-10 years, with a target revenue of $2.3 billion [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience during economic downturns, particularly in the homeowners insurance market [12][14] - The company anticipates continued growth in written premiums and management fees, supported by strategic pricing and distribution efforts [37][39] - Management noted that the reciprocal's surplus reached $198 million, the highest ever, indicating a strong financial position [10][72] Other Important Information - The company has reduced corporate expenses significantly, leading to improved cash flow [25] - The reciprocal's reinsurance costs have decreased year-over-year due to strong underwriting results [10][45] Q&A Session Summary Question: Clarity on high take rate in the quarter - Management explained that the high take rate was due to policy fees from policyholders and management fees from the reciprocal, with a healthy surplus of nearly $200 million [54][55] Question: Willingness to accelerate growth given strong start - Management indicated a willingness to invest in growth initiatives, including engaging more agents and expanding into new geographies [58][60] Question: Insights on consumer selection between HOA and Porch insurance - Management did not provide specific metrics but noted strong conversion rates among homebuyers and new construction segments [69][70] Question: Surplus metrics and expectations - Management clarified that the surplus combined with non-admitted assets was $198 million, the highest ever, and discussed the seasonal nature of surplus [72][74] Question: Reinsurance process and reinsurers' appetite - Management expressed satisfaction with the reinsurance renewal process, highlighting strong relationships with reinsurers and reduced risk exposure [86][88] Question: Breakdown of reciprocal written premium growth - Management stated that growth would come from both rate increases and new policy acquisitions, with expectations for continued growth in the second quarter [90][91] Question: Growth levers and agent channel size - Management noted that many previously closed ZIP codes have reopened and emphasized the potential for growth through the agency channel [96][100]