Porch Group Reports 8% Revenue Growth and Net Income Turnaround in Q2 2025

Porch Group, Inc. reported its financial results for the second quarter of 2025, revealing a revenue increase of 8% to $119.3 million compared to $110.8 million in the same period last year. The company achieved a gross profit of $75.9 million, a significant rise from $16.8 million in the prior year, primarily due to a reduction in weather-related claims and improved operational efficiency. The net income attributable to Porch for the quarter was $2.6 million, a substantial turnaround from a net loss of $64.3 million in the second quarter of 2024.

The financial performance reflects a strategic shift following the sale of its legacy homeowners insurance carrier, Homeowners of America, to the newly formed Porch Reciprocal Exchange on January 1, 2025. This transaction has allowed Porch to consolidate the Reciprocal's financials while managing it as a separate entity. The company now operates under four reportable segments: Insurance Services, Software & Data, Consumer Services, and the Reciprocal Segment. The Insurance Services segment, which manages the Reciprocal, reported a revenue increase of 98% to $67.4 million, driven by new management fees and commissions from the Reciprocal.

Operationally, Porch Group has seen a decline in total current liabilities from $414.2 million at the end of 2024 to $66.2 million as of June 30, 2025. This reduction is attributed to the restructuring of its debt and the impact of the Reciprocal's operations. The company also reported a decrease in selling and marketing expenses by 19% to $26.9 million, reflecting a strategic focus on cost control and efficiency. The total employee headcount has been adjusted to align with the new operational structure, contributing to lower general and administrative expenses, which increased by 33% to $30.9 million due to one-time costs associated with agency partnerships.

Looking ahead, Porch Group anticipates continued growth driven by the Reciprocal's performance and the expansion of its service offerings. The company is focused on enhancing its product lines and leveraging its unique property data to improve risk assessment and pricing strategies. Management expressed confidence in the ongoing operational improvements and the potential for increased profitability as the business adapts to the new reciprocal model. The company remains committed to maintaining a strong financial position while exploring further opportunities for growth and market expansion.