Business
Porch Group Reports First Quarter 2025 Results
Exceeds Expectations and Increases Guidance Driven by Insurance Services SEATTLE--(BUSINESS WIRE)-- Porch Group, Inc. (“Porch Group” or “the Company”)
About this update from Porch Group, Inc.
[{"type":"text","content":"\nExceeds Expectations and Increases Guidance Driven by Insurance Services\n\n SEATTLE--(BUSINESS WIRE)--\nPorch Group, Inc. (“Porch Group” or “the Company”) (NASDAQ: PRCH), a new kind of homeowners insurance company, today reported first quarter results through March 31, 2025, that exceeded expectations and correspondingly raised 2025 guidance.\n\nPorch generated for shareholders1 first quarter 2025 revenue of $84.5 million. Net income attributable to Porch was $8.4 million, and Adjusted EBITDA was $16.9 million, an increase of $33.6 million compared to prior year2.\n\nOn January 2, 2025, the Porch Reciprocal Exchange (“Reciprocal”) was formed as an insurance entity owned by its policyholder-members and not by Porch. Simultaneously, Porch Group sold its legacy homeowners insurance carrier Homeowners of America (“HOA”) to the Reciprocal in exchange for a surplus note and became its manager, receiving commissions and fees. Given the existence of a surplus note, the Reciprocal is consolidated as a variable interest entity (“VIE”) for reporting purposes at this time. This earnings release references results generated for Porch shareholders (“Porch Shareholder Interest”), which includes the businesses Porch shareholders own: Insurance Services, Software & Data, and Consumer Services segments, along with corporate functions. This earnings release also includes consolidated results which is Porch Shareholder Interest plus the Reciprocal Segment. We expect Porch Shareholder Interest results to be consistent and predictable, with its Adjusted EBITDA aligning to cash flow generated for Porch shareholders. We expect the Reciprocal to continue to remain healthy, while experiencing the seasonality and volatility of a homeowners insurance carrier. The following table presents financial highlights for Porch Shareholder Interest1 and consolidated first quarter 2025 results ($ in millions).\n\n\n\n \n\n\n\nThree Months Ended March 31, 2025\n\n\n\n\n\n \n\n\n\nInsurance Services\n\n\n\nSoftware & Data\n\n\n\nConsumer Services\n\n\n\nCorporate3\n\n\n\nPorch Shareholder Interest 1\n\n\n\nReciprocal\n\n\n\nEliminations\n\n\n\nConsolidated\n\n\n\n\n\nRevenue\n\n\n\n$\n\n\n\n49.8\n\n\n\n \n\n\n\n$\n\n\n\n22.0\n\n\n\n \n\n\n\n$\n\n\n\n14.7\n\n\n\n \n\n\n\n$\n\n\n\n(2.0\n\n\n\n)\n\n\n\n$\n\n\n\n84.5\n\n\n\n \n\n\n\n$\n\n\n\n39.9\n\n\n\n \n\n\n\n$\n\n\n...