Core Viewpoint - Porch Group Inc. experienced a significant stock surge of 21.87% to $9.25 in after-hours trading following the release of its fourth-quarter earnings report, which exceeded market expectations [1]. Q4 Earnings Results - The company reported a loss of $0.03 per share, which was better than the anticipated loss of $0.07 per share [2]. - Porch Group's revenue increased to $23.94 million compared to the same period last year [2]. - In the previous quarter, the company's earnings per share fell short of estimates by $0.04 [2]. - Keefe, Bruyette & Woods upgraded Porch Group's rating from Market Perform to Outperform and set a price target of $10.50 [2]. Trading Metrics, Technical Analysis - Porch Group has a market capitalization of $938.76 million, with a 52-week high of $19.44 and a low of $3.72 [3]. - The stock has a Relative Strength Index (RSI) of 43.09 and has gained 59.79% over the past 12 months [3]. - As of Wednesday, the stock closed at $7.59, reflecting a 2.71% increase, and is currently trading approximately 24.6% above its 52-week low [3]. Stock Rankings - Benzinga's Edge Stock Rankings indicate that Porch Group has a positive price trend across all time frames [4].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Management repeatedly framed premium growth around three drivers: statutory surplus at the reciprocal (capacity), quote volume (top-of-funnel), and conversion rate (new policies). Ehrlichman said statutory surplus at the reciprocal increased about $50 million in 2025 and ended the year almost 50% higher than 2024. He added that the company more than doubled active agencies and nearly tripled quote volumes year-over-year, while conversion rates improved late in 2025 and into early 2026 following pricing and ...

分组1 - Porch Group, Inc. reported a quarterly loss of $0.03 per share, better than the Zacks Consensus Estimate of a loss of $0.08, representing an earnings surprise of +60.00% [1] - The company posted revenues of $112.25 million for the quarter ended December 2025, exceeding the Zacks Consensus Estimate by 3.33% and up from $100.36 million a year ago [2] - Over the last four quarters, Porch Group has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] 分组2 - The stock has underperformed the market, losing about 19.1% since the beginning of the year compared to the S&P 500's gain of 1.4% [3] - The current consensus EPS estimate for the coming quarter is -$0.10 on revenues of $96.5 million, and for the current fiscal year, it is $0.04 on revenues of $480.78 million [7] - The Zacks Industry Rank for Internet - Software is in the bottom 44% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

Financial Data and Key Metrics Changes - Full year 2025 adjusted EBITDA reached $77 million, an 11-fold increase over 2024, translating into $65 million in cash flow from operations [3][13] - Q4 gross profit was $91 million, resulting in an 81% gross margin, while Q4 adjusted EBITDA was $23 million, a 21% margin [5][15] - Statutory surplus at the reciprocal grew approximately $50 million year-over-year, ending 2025 at $155 million, a 47% increase [6][11] Business Line Data and Key Metrics Changes - Insurance services revenue for Q4 was $75.7 million, contributing 67% to total revenue, with an 86% gross margin [15][16] - Software and Data segment revenue was $22.3 million, a 3% increase year-over-year, while Consumer Services revenue was $16.6 million, a 2% increase [17][18] - Reciprocal written premium (RWP) for Q4 was $126 million, exceeding expectations, with a significant increase in new customer additions [4][28] Market Data and Key Metrics Changes - The number of active agencies more than doubled year-over-year, with quote volumes increasing nearly 3x compared to the previous year [25][26] - New business premiums in November increased 61% compared to the January to October average, with December seeing a further 104% increase [6][27] Company Strategy and Development Direction - The company aims for $600 million in organic reciprocal written premium for 2026, representing a 25% growth rate, supported by increased agency and quote volumes [4][22] - Porch Insurance was launched in Texas, providing a unique product that includes additional coverages and services, enhancing agent incentives [7][52] - The company focuses on building a data-driven underwriting advantage, which has resulted in strong loss ratios and profitability [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2026 targets, citing strong momentum in new customer acquisition and improved conversion rates [4][34] - The company noted that the competitive landscape is shifting towards independent agents, which aligns with its distribution strategy [82] Other Important Information - The company authorized a $2.5 million share repurchase program, reflecting confidence in its financial position [21] - The 2026 guidance includes expectations for revenue growth of 13%-17%, with adjusted EBITDA projected between $98 million to $105 million [22] Q&A Session Questions and Answers Question: Can you provide insight into the pricing actions taken to drive acceleration and the flexibility for future pricing adjustments? - Management indicated that there is significant margin in the system, allowing for targeted pricing adjustments to drive conversion rates without dramatic changes [39][40] Question: How should the RWP to EBITDA conversion be viewed as the company scales RWP? - The company highlighted strong operating discipline, maintaining fixed operating expenses while increasing revenue, which supports improved EBITDA conversion rates [42][43] Question: What is the outlook for the competitive landscape and how does it impact the business? - Management noted a shift from in-house agents to independent agents, which is beneficial for the company as it works primarily with independent agents [82]

Financial Data and Key Metrics Changes - Full year 2025 Adjusted EBITDA reached $77 million, an 11-fold increase over 2024, translating into $65 million in cash flow from operations [3][13] - Q4 gross profit was $91 million, resulting in an 81% gross margin, with Q4 Adjusted EBITDA at $23 million, a 21% margin [5][15] - Statutory surplus at the reciprocal grew approximately $50 million year-over-year, ending 2025 at $155 million, a 47% increase [6][11] Business Line Data and Key Metrics Changes - Insurance Services generated 67% of Q4 revenue, with RWP at $126 million, driven by new customer additions [15][28] - Software and Data segment revenue was $22.3 million, a 3% increase year-over-year, while Consumer Services revenue was $16.6 million, a 2% increase [18][19] - Adjusted EBITDA for Insurance Services was $29 million, a margin of 38%, while Software and Data had an Adjusted EBITDA of $3.7 million [16][18] Market Data and Key Metrics Changes - Quote volumes increased nearly 3x year-over-year, with a 9% sequential increase from Q3 to Q4 [26][28] - New business premiums in November increased 61% compared to the January to October average, with December seeing a further 104% increase [6][27] - The company expects to achieve $600 million in organic reciprocal written premium (RWP) in 2026, representing a 25% growth rate [4][22] Company Strategy and Development Direction - The launch of Porch Insurance in Texas is a key part of the long-term strategy, aimed at improving conversion rates and providing better products for homeowners [7][51] - The company is focused on growing agency and quote volumes, pricing adjustments, and agency incentives to increase conversion rates [4][25] - The strategy emphasizes a structural advantage in underwriting, leveraging data and software to improve risk assessment and pricing [8][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering against the 2026 plan, citing strong momentum in new policyholder conversion rates and agency growth [4][6] - The company noted that 2025 was a transformational year, positioning for durable, profitable growth despite challenges in the broader housing market [3][34] - Management highlighted the importance of maintaining a healthy reciprocal surplus to support future growth targets [11][72] Other Important Information - The company ended 2025 with a cash position of $121.2 million, a $31.3 million increase from the beginning of the year [20] - A $2.5 million share repurchase program was authorized by the board of directors [21] - The company plans to focus on larger customers and sunset certain legacy software products to improve profitability [30] Q&A Session Summary Question: Can you provide insight into pricing actions taken to drive acceleration and flexibility for future pricing? - Management indicated that there is significant margin in the system, allowing for targeted pricing adjustments to improve conversion rates without dramatic changes [38][39] Question: How should we think about the operating leverage in RWP to EBITDA conversion as you scale RWP? - Management noted that operating discipline and cost control have led to improved RWP to Adjusted EBITDA conversion rates, with expectations for continued improvement [41][43] Question: Can you discuss the competitive landscape and any shifts observed in key markets? - Management acknowledged no significant changes in competition impacting quote volumes or conversion rates, maintaining confidence in their growth strategy [7][80]

Financial Data and Key Metrics Changes - Full year 2025 adjusted EBITDA reached $77 million, an 11-fold increase over 2024, translating into $65 million in cash flow from operations [3][14] - Q4 gross profit was $91 million, resulting in an 81% gross margin, while Q4 adjusted EBITDA was $23 million, a 21% margin [5][16] - Statutory surplus at the reciprocal grew approximately $50 million, ending 2025 almost 50% higher than 2024, with a total of $155 million in statutory surplus [3][12] Business Line Data and Key Metrics Changes - Insurance services revenue was $75.7 million in Q4, accounting for 60% of total revenue, with a gross margin of 86% [16][17] - Software and data segment revenue was $22.3 million, a 3% increase over the prior year, while consumer services revenue was $16.6 million, a 2% increase [18][20] - Reciprocal written premium (RWP) was $126 million in Q4, with a significant increase in new customer additions driving this growth [4][28] Market Data and Key Metrics Changes - The number of active agencies more than doubled year-over-year, with quote volumes increasing nearly 3x compared to the previous year [26][28] - New business premiums in December rose 104% compared to the January to October average, indicating strong market demand [6][28] - The competitive landscape is shifting from in-house agents to independent agents, which is favorable for the company [82] Company Strategy and Development Direction - The company aims for $600 million in organic reciprocal written premium in 2026, representing a 25% growth rate [4][23] - The launch of Porch Insurance is a key part of the strategy, providing a unique product that enhances conversion rates and agent profitability [8][51] - The company is focused on leveraging its data and technology to improve underwriting and risk assessment, creating a structural advantage in the market [9][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2026 growth targets, citing strong momentum in new customer additions and improved conversion rates [4][36] - The company noted that the insurance services division is offsetting soft U.S. housing conditions, which are expected to persist [24][71] - Management highlighted the importance of maintaining a healthy statutory surplus to support future growth [12][74] Other Important Information - The company ended 2025 with a cash position of $121.2 million, a $31.3 million increase from the beginning of the year [21][22] - A $2.5 million share repurchase program has been authorized by the board of directors [22] Q&A Session Questions and Answers Question: Can you provide insight into the pricing actions taken to drive acceleration and the flexibility for future pricing adjustments? - Management indicated that there is significant margin in the system, allowing for targeted pricing adjustments to improve conversion rates without dramatic changes [41][42] Question: How should we think about the operating leverage in RWP to EBITDA conversion as you scale RWP? - Management noted that the RWP to adjusted EBITDA conversion improved due to operating discipline and cost control, with expectations for continued improvement in 2026 [44][45] Question: Can you discuss the competitive landscape and any shifts observed in key markets? - Management acknowledged a shift from in-house agents to independent agents, which is beneficial for the company as it works with independent agents [82]

Q4 2025 Earnings Presentation February 11, 2026 Copyright 2026 Porch Group, Inc. All rights reserved Disclaimers Financial Targets Porch is providing guidance and targets for future periods in this presentation, based on current market conditions, assumptions, and expectations as of the date of this presentation. Actual results may vary due to a number of factors, and there is no guarantee that we will be able to achieve these results. Please refer to the below for important disclaimers and a description of ...

Exhibit 99.1 Porch Group Reports Fourth Quarter 2025 Results Strong Q4 Performance Caps Off a Successful First Year Under Reciprocal Model SEATTLE, February 11, 2026 (BUSINESS WIRE) – Porch Group, Inc. ("Porch," "the Company," "we," "our," "us") (NASDAQ: PRCH), a new kind of homeowners insurance company, today reported fourth quarter and full-year results through December 31, 2025, that exceeded our expectations. Porch generated for shareholders fourth quarter 2025 revenue of $112.3 million. Net loss attrib ...