Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $85 million, generated from $97 million of premium written, both exceeding expectations [6][19] - Gross profit reached $69 million, an 86% increase year-over-year, with gross margins at 82% [7][20] - Adjusted EBITDA was $17 million, a 20% margin, representing a $34 million increase over the prior year [8][20] - Positive cash flow from operations was $27 million for the quarter [8][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 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 effective expansion efforts [40] Company Strategy and Development Direction - The company has transitioned to a commission and fee-based model, enhancing predictability and margins [4][5] - Focus areas include scaling insurance premiums, software innovation, and expanding access to homebuyers [32][34] - The company aims to grow its written premium to $3 billion over the next 7-10 years [59] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the homeowners insurance market, even during economic downturns [12][45] - The company anticipates continued growth in reciprocal written premium and management fees due to strategic pricing and distribution efforts [37][90] - Management noted that the reciprocal's surplus reached $198 million, the highest ever, providing a strong financial position [10][71] 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][44] Q&A Session Summary Question: Clarification on high take rate in the quarter - Management explained that the high take rate was due to management fees and policy fees from the reciprocal, with a healthy surplus of nearly $200 million [52][54] 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 [56][59] Question: Insights on Texas market and consumer selection - Management noted that they do not disclose specific metrics on consumer selection but emphasized their focus on homebuyers and new construction [67][68] Question: Details on reinsurance process and reinsurers' appetite - Management expressed satisfaction with the reinsurance renewal process, highlighting strong relationships with reinsurers and a healthy retention limit [84][86] Question: Breakdown of reciprocal written premium growth - Management stated that they do not break out the specific contributions from rate increases versus policy acquisition but expect continued growth in both areas [89][90]

Exhibit 99.1 Porch Group Reports First Quarter 2025 Results | | | | | | | | | | | Three Months Ended March 31, 2025 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | Porch | | | | | | | | | | Insurance | | Software & | | Consumer | | | | | Shareholder | | | | | | | | | | Services | | Data | | Services | | | Corporate 3 | | Interest | 1 | Reciprocal | | Eliminations | | Consolidated | | Revenue | | $ | 49.8 | ...

Q1 2025 Financial Performance - Porch Shareholder Interest revenue reached $84.5 million[16], with a gross profit of $69.1 million[16] and an impressive gross profit margin of 82%[16] - Adjusted EBITDA for Porch Shareholder Interest was $16.9 million[16], resulting in a 20% Adjusted EBITDA margin[16] - Cash flow from operations for Porch Shareholder Interest was $27.2 million[16] Segment Performance - Insurance Services generated $49.8 million in revenue with an 85% gross margin and a 52% Adjusted EBITDA margin[87] - Software & Data revenue was $22 million[34], with a 75% gross margin and a 21% Adjusted EBITDA margin[39] - Consumer Services revenue reached $14.7 million[34], boasting an 83% gross margin but a negative 5% Adjusted EBITDA margin due to investments for future growth[39] Guidance and Long-Term View - The company increased its 2025 Adjusted EBITDA guidance by $5 million to $65 million[59] (mid-point) - The company projects long-term (approximately 10 years) revenue of $2.3 billion and Adjusted EBITDA of $660 million[61] Reciprocal Performance - Reciprocal Written Premium (RWP) reached $97 million[16] - The Reciprocal maintains a healthy surplus of $198 million combined with non-admitted assets[18]

Company Overview - Porch Group, Inc. (PRCH) shares increased by 6.3% to close at $6.80, with trading volume significantly higher than usual, reflecting a 33.1% gain over the past four weeks [1] - The company is experiencing strong revenue growth and improved profitability due to its data-driven underwriting, expanded distribution partnerships, and innovative insurance and vertical software solutions [1] Earnings Expectations - Porch Group is expected to report a quarterly loss of $0.07 per share, which is a year-over-year change of +66.7%, with revenues projected at $80.45 million, down 30.3% from the previous year [2] - The consensus EPS estimate for Porch Group has been revised 63.2% higher in the last 30 days, indicating a positive trend that typically correlates with price appreciation [3] Industry Context - Porch Group is part of the Zacks Internet - Software industry, where another company, Braze, Inc. (BRZE), saw a 2.7% increase in its stock price, closing at $37.03, but has returned -11.3% over the past month [3] - Braze's consensus EPS estimate for its upcoming report remains unchanged at $0.05, reflecting a +225% change from the previous year, and it currently holds a Zacks Rank of 3 (Hold) [4]

Porch Group, Inc. (NASDAQ: PRCH ) , based in Seattle, is what's known as a vertical software and insurance platform specializing in home services, a broad category that includes things like home inspections, moving, real estate, utilities, and warranties. In addition to the software side of things,The mission of Grassroots Trading rests on the following principles: providing objective, unbiased, and balanced research, backed by solid data and completely void of emotional influences or preference for compani ...

Q4 2024 Earnings Presentation February 25, 2025 Copyright 2025 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 t ...

Core Viewpoint - Porch Group's stock experienced a significant surge, rising 76% over two trading days following its Q4 2024 earnings release, reaching a 52-week high [1][8]. Company Overview - Porch Group operates in the homebuying and home insurance sectors, aiming to create a flywheel effect where different business segments enhance each other [2]. - The company provides software utilized by 40% of the home inspection market, generating revenue and acquiring valuable data for home insurance pricing [3]. - Porch also serves 40% of the title transaction industry, gaining insights into home transaction timelines, which aids in marketing home insurance services [4][5]. - Additionally, Porch is the second-largest moving labor provider in the U.S., connecting homebuyers with moving professionals and earning fees from these services [6]. Financial Performance - In Q4 2024, Porch reported a gross profit margin of 89%, despite a 12% decline in revenues year-over-year [8]. - The company anticipates a gross margin of around 80% for 2025, a significant increase from the 48% margin achieved in 2024 [9]. - The formation of the Porch Insurance Reciprocal Exchange (PIRE) has allowed Porch to hold insurance policies and receive commissions, contributing to higher margins [10]. - Porch achieved record adjusted EBITDA of $42 million in Q4, with a full-year adjusted EBITDA of $7 million for 2024, and expects to increase this to $60 million in 2025 [11]. Stock Outlook - The average price target for Porch Group's stock is $5.84, indicating a potential downside of 16.40% from current levels, with a short-term upside potential of 19% based on recent earnings [12][13]. - Despite the recent stock surge, a short-term decline in share price would not be surprising given the rapid increase [13].

Financial Data and Key Metrics Changes - For the full year 2024, the company achieved adjusted EBITDA of $7 million, with Q4 adjusted EBITDA reaching a record $42 million, significantly better than guidance [9][12][52] - Total revenue for Q4 2024 was $100.4 million, a 12% decrease from the prior year, impacted by nonrecurring items and the divestiture of EIG [18][23] - The company provided 2025 adjusted EBITDA guidance of $60 million at the midpoint, representing a 15% adjusted EBITDA margin and an increase of over $50 million compared to 2024 [10][33] Business Line Data and Key Metrics Changes - In the Insurance segment, revenue was $72 million, with a strong 29% organic growth trend driven by increases in premium per policy [21] - Vertical Software revenue increased by 6% to $29.3 million, supported by SaaS price increases [21] - Insurance adjusted EBITDA was $48.8 million, a $17.2 million increase year-over-year, while Vertical Software adjusted EBITDA rose to $5 million, a $5.3 million increase [22] Market Data and Key Metrics Changes - The company reported gross written premium of $112 million, roughly flat compared to the prior year, with premium retention at 105% [20][45] - The gross loss ratio improved to 21% in Q4 2024, down from 36% the previous year, reflecting effective risk management [47] - The gross combined ratio for the full year was 79%, an improvement from 88% in the prior year [49] Company Strategy and Development Direction - The company aims to build one of the largest and most profitable homeowners insurance companies, focusing on advantaged underwriting and a customer-centric experience [6][8] - The formation of the Porch Insurance Reciprocal Exchange (PIRE) is expected to enhance financial predictability and margins [13][14] - The strategic focus includes scaling insurance premiums, innovating in vertical software, and expanding the data business [34][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2026 target of $100 million in adjusted EBITDA, emphasizing strong execution and growth momentum [12][51] - The company is positioned to benefit from a favorable insurance market dynamic, with plans to increase premiums and expand distribution [80] - Management remains conservative in assumptions regarding the housing market, expecting flat growth but ready to capitalize on any recovery [115] Other Important Information - The company ended 2024 with cash and investments of approximately $93 million, following the sale of HOA to PIRE [26] - The company plans to introduce new KPIs in 2025, focusing on gross profit instead of revenue less cost of revenue [30] Q&A Session Summary Question: Insights on 2025 growth expectations - Management noted strong execution and early signs of growth following the activation of the growth plan, with a focus on premium growth and agent engagement [58][62] Question: Agency engagement and new business - Management highlighted excitement among agents regarding PIRE and noted a reactivation of agency partnerships, leading to an increase in new policies [66][68] Question: Growth investments and M&A considerations - Management confirmed that current guidance is based on organic growth, with M&A opportunities being considered as incremental to existing plans [104][105] Question: Home Factors product performance - Management indicated strong interest from carriers in Home Factors, with ongoing development and a focus on expanding the product's market presence [93][95]

Core Viewpoint - Porch Group, Inc. reported quarterly earnings of $0.15 per share, significantly exceeding the Zacks Consensus Estimate of $0.06 per share, marking a 150% earnings surprise compared to a loss of $0.06 per share a year ago [1] Financial Performance - The company posted revenues of $100.36 million for the quarter ended December 2024, which was 8.95% below the Zacks Consensus Estimate and a decrease from $114.61 million in the same quarter last year [2] - Over the last four quarters, Porch Group has surpassed consensus EPS estimates two times and topped revenue estimates only once [2] Stock Performance - Porch Group shares have declined approximately 20.1% since the beginning of the year, contrasting with the S&P 500's gain of 1.7% [3] Future Outlook - The company's earnings outlook will be crucial for determining the stock's immediate price movement, with current consensus EPS estimates at -$0.19 for the coming quarter and -$0.38 for the current fiscal year [4][7] - The estimate revisions trend for Porch Group is currently favorable, resulting in a Zacks Rank 2 (Buy), indicating expected outperformance in the near future [6] Industry Context - The Internet - Software industry, to which Porch Group belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Financial Performance and Growth - Porch Insurance Reciprocal Exchange (PIRE) was approved on October 25, 2024, and funded with approximately $106 million in surplus notes, expected to enhance financial performance and mitigate exposure to seasonality and catastrophic weather [49]. - The strategy focuses on profitable growth by recruiting a high-performing sales team to increase insurance gross written premiums and premium per policy [51]. - The company plans to launch new SaaS products and features while maintaining high customer retention rates and increasing prices [52]. - The company expanded its insurance operations through the acquisition of HOA, a leading property and casualty insurance company, effective January 1, 2025 [91]. - The company operates an insurance business through Porch Insurance Reciprocal Exchange (PIRE), which directly affects its operating revenue and financial health [90]. - The company's future growth depends on managing operations and growing the insurance business by limiting attrition and increasing revenue from home-related services [96]. - The company may not be able to access capital markets when needed, impacting its ability to fund operations and seize business opportunities [87]. - The cyclical nature of the insurance industry may lead to fluctuations in financial performance, affecting premium rates and underwriting capacity [97]. - The company incurred operating losses of $64.6 million, $190.4 million, and $177.0 million for the years ended December 31, 2024, 2023, and 2022, respectively, with an accumulated deficit of $754.9 million as of December 31, 2024 [213]. - The company has experienced net losses in each year since its inception, indicating challenges in achieving and sustaining profitability [213]. Risks and Challenges - Claims costs for PIRE may increase due to inflated material costs, supply chain shortages, and labor cost increases, potentially impacting the company's financial position [92]. - The company faces risks from its expansion into the insurance business, including higher than expected claims costs and external factors affecting financial condition [90]. - PIRE's financial strength ratings could be downgraded, which may adversely affect the company's financial condition [87]. - Severe weather events and climate change may require additional capital for the insurance business, impacting financial stability [102]. - Increased insurance claims and costs could reduce access to reinsurance, negatively affecting the company's operations [103]. - Development of new insurance products and market expansion efforts may require substantial expenditures and carry inherent risks [106]. - The company faces risks related to customer service quality, which could harm its reputation and sales if not maintained [128]. - The company is subject to market volatility affecting raw material prices, which may hinder its ability to pass cost increases to customers [132]. - The company is dependent on reinsurance, and any inability to secure adequate reinsurance could materially impact its business model and profitability [168]. - The company may face litigation risks related to the actions of its service providers, which could divert management's focus and resources [133]. Regulatory and Compliance Issues - The company is subject to various risks related to regulatory compliance, which could limit growth and impose additional costs on PIRE and HOA [87]. - The company is subject to extensive state regulation in its insurance businesses, which could limit growth and impose additional costs [220]. - The company is subject to evolving privacy and data protection regulations, which could increase operational costs and expose it to liabilities [229]. - Compliance with privacy and data protection laws may impose significant costs and burdens on the company, potentially delaying product development and affecting business relationships [232]. - Non-compliance with applicable laws could lead to increased scrutiny from regulatory agencies and result in significant financial penalties [239]. - The company is subject to numerous regulations, including the Truth in Lending Act and the Fair Credit Reporting Act, which impose specific compliance obligations [235]. Employee and Organizational Structure - As of December 31, 2024, the company had a total of 733 employees, including 729 full-time employees, and maintains good relationships with employees and contractors [82]. - The company emphasizes a decentralized operating model to maintain momentum and entrepreneurial culture during acquisitions [78]. - The company was certified as a Great Place to Work in 2023 and 2024, highlighting its commitment to a supportive and inclusive environment [81]. - Employee costs, the largest expense for the company, could increase due to external factors like inflation, impacting profitability [201]. Strategic Partnerships and Market Position - Partnerships with moving companies and utilities are being leveraged to expand access to high-value homebuyers and foster long-term customer relationships [54]. - The company is incorporating AI into its products and services, which presents both opportunities and regulatory risks [147]. - A business collaboration agreement with Aon includes a cash payment of approximately $25 million and additional payments in 2025, contingent on maintaining certain conditions [165]. Financial Management and Capital Structure - Management fees and commissions from PIRE are critical to the company's revenue; any reduction could adversely affect profitability [153]. - The company does not own PIRE but serves as its attorney-in-fact, which subjects it to risks associated with PIRE's financial health [151]. - Changes in the management fee rate could materially affect the company's revenues and profitability, as it is determined at Porch's discretion [160]. - PIRE holds surplus notes totaling $106 million, with payments subject to risk-based capital levels and regulatory approval [157]. - The company has net operating loss carryforwards of $430.4 million for U.S. federal income tax purposes and $289.7 million for state income tax purposes, which may expire if not utilized [219].