Porch Group Reports $482.4 Million Revenue and $15.3 Million Net Income for 2025

Porch Group, Inc. reported total consolidated revenue of $482.4 million for the year ended December 31, 2025, an increase of 10% compared to $437.8 million in 2024. The increase was primarily driven by lower external reinsurance costs offsetting revenue, with the company's captive reinsurer retaining a higher proportion of premiums. The company's net income was $15.3 million, a significant improvement from a net loss of $32.8 million in the prior year. However, net loss attributable to Porch was $(3.4) million, after accounting for net income attributable to the Porch Reciprocal Exchange.

The company's cost of revenue decreased by 40% to $142.4 million, representing 30% of revenue compared to 54% in the prior year, primarily due to strong underwriting at the Reciprocal and fewer catastrophic weather events. Operating expenses increased by 14% to $303.4 million, with selling and marketing expenses increasing by 14% to $139.6 million due to incentives to insurance agencies and increased marketing for new warranty products. Product and technology expenses rose by 11% to $53.3 million, driven by increased payroll and software expenses, while general and administrative expenses increased by 10% to $105.2 million due to a one-time agency partnership payment and increased legal expenses.

Strategic developments in 2025 included the completion of the formation of Porch Reciprocal Exchange and the sale of Homeowners of America (HOA) to the Reciprocal. Porch now manages and operates the Reciprocal, earning commissions and fees for these services. The company also completed a series of debt refinancing transactions, exchanging $96.8 million of 2026 Notes for $83.0 million of newly issued 2030 Notes, issuing an additional $51.0 million of 2030 Notes for cash, and repurchasing $47.5 million of 2026 Notes for cash. As of December 31, 2025, the company had 803 employees.

Key operational developments included the launch of a new insurance product, Porch Insurance, in Texas, with plans for future expansion. The company also focused on software innovation, aiming to increase utilization of SaaS products and maintain high customer retention. The company intends to add new categories to its Home Factors property insights product and further monetize it with third parties. As of December 31, 2025, the Reciprocal had $155.1 million in total statutory surplus, an increase of $49.4 million from the prior year. The company's Adjusted EBITDA was $76.6 million, a $69.4 million improvement from $7.2 million in 2024.

Looking ahead, Porch Group intends to scale insurance premiums, drive software innovation in its SaaS businesses, grow its data business, and expand access to consumers through partnerships. The company's strategy focuses on profitable growth, including expanding its insurance offerings within existing and new states and recruiting a high-performing sales team. The company also plans to increase utilization of its SaaS products, launch new products and features, and further monetize its Home Factors property insights product.