Porch Group — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenue was $143.9 million, up 13% year-over-year (YoY).
• Porch-Owned Segments Revenue (Excluding Reciprocal) was $140.8 million, up 22% YoY.
• Insurance Services revenue was $102.8 million, up 39% YoY.
• Net income attributable to Porch was $12.2 million.
• Adjusted EBITDA (Excluding Reciprocal) was $44.5 million, up 116% YoY.
• Consolidated gross profit was $107.9 million.
• Porch-Owned Segments Gross Profit (Excluding Reciprocal) was $120.8 million, up 28% YoY.
• Insurance Services Adjusted EBITDA was $50.1 million, with a margin of 49% (up from 34% in Q3 2025).
• Software & Data Adjusted EBITDA was $4.2 million, with a margin of 19% (down from 21% in Q3 2025).
• Consumer Services Adjusted EBITDA was $3.2 million, with a margin of 18% (up from 13% in Q3 2025).
• Cash and cash equivalents (excluding Reciprocal) increased to $80.1 million at September 30, 2026, from $54.1 million at June 30, 2026.
• Total unrestricted cash, cash equivalents, and investments of Porch (excluding Reciprocal) were $157.6 million at September 30, 2026.
• Outstanding convertible debt principal was $467.3 million as of September 30, 2026.

Guidance and Future Outlook:

• The Company raised its full-year 2026 guidance for Porch-Owned Segments.
• New 2026 Revenue (Excluding Reciprocal) guidance is $518 million to $523 million (prior: $506 million to $517 million), representing 24% to 25% YoY growth.
• New 2026 Gross Profit (Excluding Reciprocal) guidance is $438 million to $443 million (prior: $419 million to $429 million), representing 27% to 29% YoY growth.
• New 2026 Adjusted EBITDA (Excluding Reciprocal) guidance is $135 million to $140 million (prior: $119 million to $125 million), representing 76% to 83% YoY growth.
• Management expects the acquisition of Allied Trust to close in the first quarter of 2027, positioning the company for growth in 2027.

Business Segments and Product Lines:

• Insurance Services: Revenue grew 39% YoY; Reciprocal Written Premium (RWP) was $161.0 million, up 17% YoY.
• Reciprocal Policies Written grew 42% YoY to 67.5 thousand, accelerating from 38% YoY growth in Q2 2026.
• RWP per Policy Written was $2,384, down 17% YoY.
• Software & Data: Average number of companies decreased 22% YoY to 18.5 thousand; Annualized Average Revenue per Company increased 17% YoY to $4,840.
• Consumer Services: Monetized Services decreased 11% YoY to 83.7 thousand; Average Revenue per Monetized Service increased 6% YoY to $219.
• Top-of-funnel expansion: Agency branch locations rose 114% YoY; quote volumes rose 79% YoY.
• RWP from new customers grew 178% YoY.
• Porch Reciprocal Exchange statutory surplus was $174.4 million at September 30, 2026, up $22 million from Q3 2025.

Market and Competitive Landscape:

• Insurance Services is operating as a "Rule of 80" business in a soft insurance market.
• Management cites proprietary data, disciplined underwriting, and an expanding distribution network as competitive advantages.
• The pending acquisition of Allied Trust is expected to add scale, products, geographic reach, and over a decade of operating data.

Risks and Challenges:

• Risks include the potential failure to complete the Allied Trust acquisition on anticipated terms or timeline, or at all.
• Regulatory approval risks related to the acquisition and other strategic initiatives.
• Risks associated with weather events, catastrophes, and economic conditions affecting the housing and insurance markets.
• Potential negative impact of share price declines on the Reciprocal's surplus position or captive reinsurance capital.
• Risks related to cybersecurity, privacy, data governance, and data breaches.

Management Commentary and Tone:

• CEO Matt Ehrlichman stated the Company is "executing at a high level" and exceeded expectations.
• Management expressed confidence that the business model can perform across market cycles.
• The tone is confident, highlighting "strong Adjusted EBITDA conversion to cash" and improved leverage ratios.
• Management views the pending Allied Trust acquisition as a catalyst to "further accelerate our growth."

Other Key Points:

• On October 13, 2026, Porch entered into a Stock and Membership Interest Purchase Agreement to acquire Allied Trust Insurance Company, Allied Underwriters, LLC, and Lonestar Lagniappe Reinsurance Holdings, LLC.
• The Reciprocal will acquire Allied Trust's insurance carrier for an initial base price of $55 million in cash plus $50 million deferred consideration.
• Porch Group will acquire Allied Trust's managing general agency and captive reinsurance entity for $95 million ($75 million cash and $20 million in PRCH shares).
• The transaction is expected to be approximately statutory surplus neutral for the Reciprocal.
• The acquisition multiple for Porch Group is expected to be less than four times Allied Trust's expected Adjusted EBITDA (Excluding Reciprocal) contribution for the first full year following close.
• The 2026 Notes (0.75% Convertible Senior Unsecured Notes) totaling $7.8 million were repaid in Q3 2026.
• Porch-Owned Segments Revenue (Excluding Reciprocal) includes eliminations of intercompany revenue between Insurance Services, Software & Data, and Consumer Services.