Porch Group, Inc. · NASDAQ:PRCH

Porch — Q1 2025 Earnings Presentation

31 slides from Porch's earnings presentation, May 6, 2025

  1. Slide 1: Q1 2025 Earnings Presentation

    Q1 2025 Earnings Presentation May 6, 2025 Copyright 2025 Porch Group, Inc. All rights reserved

  2. Slide 2: Disclaimers

    Disclaimers Financial Targets Porch is providing guidance and targets for future periods in this presentation based on current market conditions, assumptions, and expectations as of the date of this presentation. Actual results may vary due to a number of factors and there is no guarantee that we wi

  3. Slide 3: Agenda

    Agenda Matt Ehrlichman CEO, Chairman & Founder Key Updates Shawn Tabak Chief Financial Officer Financials & Guidance Matthew Neagle Chief Operating Officer Strategic Update & KPIs Copyright 2025 Porch Group, Inc. All rights reserved 3

  4. Slide 4: Key Updates

    Key Updates Matt Ehrlichman CEO, Chairman & Founder Copyright 2025 Porch Group, Inc. All rights reserved 4

  5. Slide 5: Q1'25 Demonstrates Business Structured to Scale

    Q1’25 Demonstrates Business Structured to Scale 1• Delivered exciting results for Porch Shareholder Interest1: +$32m / +86% $96.9 vs prior year2 $84.5 $69.1 +$34m vs prior year3 $27.2 $16.9 Reciprocal Written Revenue Gross Profit Adj EBITDA Cash flow from Premium operations 82% gross profit 20% Adj

  6. Slide 6: Top Decile 2024 Direct Combined Ratio

    Top Decile 2024 Direct Combined Ratio U.S. Top 30 Homeowners’ Insurance Carriers: 2024 Direct Combined Ratio1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Texas Top 30 Homeowners’ Insurance Carriers: 2024 Direct Combined Ratio1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

  7. Slide 7: Porch is a Resilient Investment in Turbulent Times

    Porch is a Resilient Investment in Turbulent Times US Homeowners Insurance Premiums1 1• Tariffs: no significant impact 2• Recession: 140 120 • Industry premiums grown in the past Home Premium ($b) 100 • Lower interest rates drive housing volumes 80 60 3• Inflation: scales premium at the Reciprocal 4

  8. Slide 8: Financials & Guidance

    Financials & Guidance Shawn Tabak Chief Financial Officer Copyright 2025 Porch Group, Inc. All rights reserved 8

  9. Slide 9: Q1'25 Results Ahead of Expectations

    Q1’25 Results Ahead of Expectations Porch Shareholder Interest Insurance Software & Consumer Corporate & Reciprocal Total Eliminations Total Services Data Services Eliminations Segment Revenue $50m $22m $15m $(2)m $85m $40m $(20)m $105m Gross Profit $42m $16m $12m $(2)m $69m $14m $(17)m $65m Adj EBI

  10. Slide 10: Q1'25 Porch Shareholder Interest: Exceeded expectations

    Q1’25 Porch Shareholder Interest: Exceeded expectations Revenue1: $85m Gross Profit1: $69m 82% margin $12.2 $14.7 83% $49.8 $16.5 $42.3 $22.0 75% 85% Key:: Gross Profit ($m) Gross Profit Margin (%) Insurance Services Software & Data Consumer Services Notes: All numbers are $million unless otherwise

  11. Slide 11: Q1'25 Porch Shareholder Interest: Exceeded expectations

    Q1’25 Porch Shareholder Interest: Exceeded expectations Adjusted EBITDA: $17m 20% margin $4.6 ($0.7) $25.8 $16.9 ($12.8) Insurance Software Consumer Corporate & Adj EBITDA Services & Data Services Eliminations 52% 21% (5)% 20% Adjusted EBITDA margin Notes: All numbers are $million unless otherwise s

  12. Slide 12: Insurance Services: High Margin and Predictable

    Insurance Services: High Margin and Predictable Non-CAT weather quota share reinsurance Policy fees direct from Fees for homebuyer leads policyholders from third party agencies 3 2 4 Management fee based on ~15%1 coupon on $106m Reciprocal Written Premium surplus notes Income Streams 1 5 $97m $50m $

  13. Slide 13: Software & Data: Product Innovation Driving Price Increases

    Software & Data: Product Innovation Driving Price Increases Revenue Gross Profit Adj EBITDA $21.1 $22.0 +4% $16.5 $15.5 +7% +$2m $4.6 $2.6 Q1'24 Q1'25 Q1'24 Q1'25 Q1'24 Q1'25 73% 75% 12% 21% Gross Margin Adjusted EBITDA margin • Revenue increase driven by product innovation and launches; correspondi

  14. Slide 14: Consumer Services: Investing for 2026 Growth

    Consumer Services: Investing for 2026 Growth Revenue Gross Profit Adj EBITDA $16.2 $14.7 (9)% $12.7 $12.2 (3)% $1.5 Q1'24 Q1'25 ($0.7) Q1'24 Q1'25 Q1'24 Q1'25 78% 83% 9% (5)% Gross Margin Adjusted EBITDA margin • Revenue decrease driven by closing corporate relocation business in Q3’24 • Gross margi

  15. Slide 15: Corporate Expenses: Reducing Corporate Expenses

    Corporate Expenses: Reducing Corporate Expenses Adj EBITDA ($12.8) ($15.0) Q1'24 Q1'25 • $2.2m improvement compared to prior year due to strong cost control Notes: All numbers are $million unless otherwise stated. Financials present the corporate expenses for Porch Shareholder Interest Adjusted EBIT

  16. Slide 16: Predictable, High-Margin Adj EBITDA Results in Positive Cash

    Predictable, High-Margin Adj EBITDA Results in Positive Cash $114m +$27m Porch Cash + Investments1 Q1’25 Porch Shareholder Interest March 31, 2025 Cash Flow from Operations • Porch Shareholder Interest Cash from Operations of $27m: • $17m Adj EBITDA in Q1’25 • $7m receipt from the Vesttoo bankruptcy

  17. Slide 17: Increasing 2025 Guidance Across the Board

    Increasing 2025 Guidance Across the Board 2025 guidance relates to Porch Shareholder Interest and excludes Reciprocal Revenue $400m to $420m $10 million increase from prior guidance Gross Profit $320m to $335m $10 million increase from prior guidance Adjusted EBITDA $60m to $70m $5 million increase

  18. Slide 18: Updating Long-Term View; Insurance Services Conversion

    Updating Long-Term View; Insurance Services Conversion 2025 ~10 Years ~10 Years Porch Shareholder Interest Guidance1 Investor Day Current View Reciprocal Written Premium $3bn $3bn Revenue $410m $2bn $2.3bn Gross Margin ~80% ~80% ~80% Adjusted EBITDA $65m $600m $660m Adj EBITDA Margin ~16% ~30% ~30%

  19. Slide 19: Strategic Update & KPIs

    Strategic Update & KPIs Matthew Neagle Chief Operating Officer Copyright 2025 Porch Group, Inc. All rights reserved 19

  20. Slide 20: Strategic Growth Areas

    Strategic Growth Areas Scaling Insurance Premiums Software Innovation • New business growth accelerated • Rynoh implemented 20% price increase • Texas implemented 16% rate increase • Inspection launched warranty program • Key hires strengthen team • Floify launched mortgage application auto-fill Gro

  21. Slide 21: Insurance Services Q1 2025 KPIs

    Insurance Services Q1 2025 KPIs $97m 36k $2,683 Reciprocal Written Premium Reciprocal Policies Written RWP1 per Policy Written Number of new and renewed policies Reciprocal Written Premium divided by Premium written by the Reciprocal on written by the Reciprocal in the quarter Reciprocal Policies Wr

  22. Slide 22: Software & Data and Consumer Services Q1 2025 KPIs

    Software & Data and Consumer Services Q1 2025 KPIs Software & Data Consumer Services 24k 71k Number of Companies Number of Monetized Transactions $3,644 $207 Annualized Average Revenue per Average Revenue per Monetized Company Transaction Notes: Consumer Services monetized services of 71k times $207

  23. Slide 23: Wrap Up

    Wrap Up Matt Ehrlichman CEO, Chairman & Founder Copyright 2025 Porch Group, Inc. All rights reserved 23

  24. Slide 24: Wrap Up: Porch Shareholder Interest

    Wrap Up: Porch Shareholder Interest 1• Delivered record Q1 Adj EBITDA in Q1 2025 of $17m, $34m increase year over year • This translated to $27m of positive Porch Shareholder Interest cash flow from operations • Increased 2025 Adj EBITDA guidance by $5m to $65m (mid-point) • Now a high margin busine

  25. Slide 25: Q1 2025 Earnings Q&A

    Q1 2025 Earnings Q&A Copyright 2025 Porch Group, Inc. All rights reserved 25

  26. Slide 26: Appendix

    Q1 2025 Earnings APPENDIX Copyright 2025 Porch Group, Inc. All rights reserved 26

  27. Slide 27: Porch Shareholder Interest Breakdown

    Porch Shareholder Interest Breakdown Q1 2025 ($ million) Revenue Gross Profit Margin Adj EBITDA Margin Insurance Services 49.8 42.3 85% 25.8 52% Software & Data 22.0 16.5 75% 4.6 21% Consumer Services 14.7 12.2 83% (0.7) (5)% Corporate & Eliminations (2.0) (2.0) n/a (12.8) n/a Total Porch Shareholde

  28. Slide 28: Porch Shareholder Interest Cash Flow from Operations

    Porch Shareholder Interest Cash Flow from Operations Porch Reciprocal Shareholder Q1 2025 ($ million) Consolidated Segment Eliminations Interest Net cash provided by (used in) operating activities (11.2) (38.4) - 27.2 Net cash provided by (used in) investing activities (19.4) (47.6) 46.8 (18.6) Net

  29. Slide 29: Non-GAAP Financial Measures

    Non-GAAP Financial Measures This release includes non-GAAP financial measures, such as Adjusted EBITDA (Loss), Adjusted EBITDA (Loss) margin, and certain amounts related to Porch Shareholder Interest. On January 1, 2025, Porch Group sold its legacy homeowners insurance carrier Homeowners of America

  30. Slide 30: Glossary

    Glossary Term Definition Annualized Average Revenue per Defined as the revenue generated across the Software & Data segment in the period over the Average Number of Companies in the period, which is then annualized (for example, Company for a given quarter, multiplied by four). Average Revenue per M

  31. Slide 31: Thank You

    THANK YOU Email: IR@porch.com Website: IR.porchgroup.com Copyright 2025 Porch Group, Inc. All rights reserved 31

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