Porch Group, Inc. reported a modest increase in revenue for the fiscal year ending December 31, 2024, totaling $437.8 million, up 2% from $430.3 million in 2023. The Insurance segment, which includes Homeowners of America (HOA), contributed $318.2 million, reflecting a 4% increase driven by higher premiums per policy. In contrast, the Vertical Software segment saw a decline of 4%, generating $120.6 million, primarily due to a shift towards higher profit but lower revenue services and the closure of its corporate relocation business. The company recorded an operating loss of $64.6 million, a significant improvement from the $190.4 million loss in the previous year.
The filing highlighted several strategic developments, including the formation of the Porch Insurance Reciprocal Exchange (PIRE) on January 1, 2025, which involved the sale of HOA to PIRE for approximately $105 million. This transition is expected to enhance the company's operational efficiency and profitability by providing more predictable income streams. Additionally, Porch Group repurchased $51.2 million of its 2026 convertible notes, resulting in a $27.4 million gain on extinguishment of debt, which contributed to the overall financial improvement.
Operationally, Porch Group reported a decrease in policies in force, dropping from 310,000 in 2023 to 206,000 in 2024, largely due to the sale of EIG and non-renewals of unprofitable policies. The company also noted a gross loss ratio improvement to 65% from 69% in the prior year, attributed to better underwriting practices and premium adjustments. The attritional loss ratio improved to 22% from 34%, indicating enhanced risk management. The total employee headcount as of December 31, 2024, was 733, reflecting ongoing efforts to streamline operations and reduce costs.
Looking ahead, Porch Group aims to leverage its strategic partnerships and data insights to drive growth in both its insurance and software segments. The company plans to expand its insurance offerings into new states and enhance its software products to improve customer retention. Management expressed optimism about achieving profitability in the future, although it acknowledged the challenges posed by market conditions, including inflation and severe weather events that could impact claims and operational costs. The company remains focused on executing its growth strategy while managing its financial obligations effectively.
About Porch Group, Inc.
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