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]