Key Takeaways AI-driven sell-offs are spreading beyond tech into broader sectors.Markets show a "sell first, ask questions later" reaction to AI-related headlines.Defensive ETFs like VDC, XLU and VIG can help cushion portfolios amid tech selloffs.Last week’s sell-off in U.S. software and data services stocks dubbed “software-mageddon,” combined with intensifying Wall Street scrutiny of Big Tech’s rising AI spending, underscored growing fatigue around AI trade.This weakness spilled over into financial stocks ...

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]

Core Viewpoint - The release of new AI tools by Anthropic has raised concerns in the software sector, leading to a sell-off in software-as-a-service and data provider stocks [1][2]. Group 1: Market Reaction - The S&P 500 Software & Services Index, which includes 140 companies, fell over 4% on Thursday, marking an eight-session losing streak and a year-to-date decline of approximately 20% [2]. - Shares of major companies such as Thomson Reuters, Salesforce, and LegalZoom experienced significant declines during the sell-off, which also affected Asian IT firms like Tata Consultancy Services and Infosys [3]. Group 2: AI Tools Impact - Anthropic's new AI tools are designed to manage complex professional workflows, potentially undermining traditional software business models across various functions, including legal and technology research, customer relationship management, and analytics [2]. - There is a division among analysts and tech executives regarding the long-term impact of these AI tools on the software and data provider industries [3].

Wall Street ended sharply lower on Thursday, with the Nasdaqdragged to its lowest since November by losses ​in Microsoft, Amazon and other tech heavyweights afterAlphabet said it could double capital ‌spending on AIin the race to dominate the emerging technology.Shares of Alphabet fell 0.55% ​after the Google parent said itplans as much as $185 billion in capex in 2026. Together, it andits Big Tech rivals are expected to collectively shell out morethan $500 billion on AI this year.Adding to recent losses, M ...

Software and data services stocks stabilized on Thursday after a bruising selloff, as investors looked for clues on whether fast-advancing artificial intelligence tools are starting to dent demand for traditional software and subscription businesses. ...

Group 1: Market Overview - U.S. software and data services companies have experienced a significant decline, with the S&P 500 software and services index dropping 4.6% and losing approximately $1 trillion in market value since January 28, referred to as "software-mageddon" [1] - Major tech companies affected include ServiceNow, which fell 7.6%, Salesforce, which slipped 4.7%, and Microsoft, which sank 5% [1] Group 2: Investor Sentiment - The current market sentiment is characterized by a "sell-everything mindset," indicating widespread fear among investors [2] - Concerns about the impact of artificial intelligence on various sectors have led to a lack of dip-buying, with the S&P 500 software and services index trading about 21% below its 200-day moving average, the lowest since June 2022 [4] Group 3: Company-Specific Insights - Thomson Reuters, despite raising its dividend and reporting fourth-quarter results in line with estimates, fell 5.6% due to investor concerns over AI disrupting its legal business [2][3] - Goldman Sachs' chief U.S. equity strategist noted that while AI investments are yielding tangible benefits, the uncertainty surrounding AI's long-term impact poses risks to near-term earnings [3] Group 4: Sector Rotation - There is a notable rotation out of technology stocks into value-oriented sectors such as consumer staples, energy, and industrials, which had previously lagged in the bull market that began in October 2022 [6] - This trend reflects a broader strategy of de-risking from technology investments, which has been observed since the beginning of the year [6]

Core Points - QuoteMedia, Inc. will release its earnings for the quarter ended September 30, 2025, on November 14, 2025 [1] - A conference call to discuss the financial results and provide a business update will be held on the same day at 5:00 PM Eastern time [1] Company Overview - QuoteMedia is a leading software developer and cloud-based syndicator of financial market information and streaming financial data solutions [2] - The company licenses various interactive stock research tools, including real-time quotes, market research, news, charting, option chains, filings, corporate financials, insider reports, market indices, and portfolio management systems [2] - QuoteMedia provides market data solutions for notable companies such as Nasdaq, TMX Group, London Stock Exchange Group, JPMorgan Chase, and General Electric among others [2]