Porch Group Inc

Following a chapter focused on profitability, we now enter a chapter focused on growth. Our goal is to positively impact long-term shareholder value by focusing on the the following strategic growth pillars:

Porch Insurance Reciprocal Exchange

On October 25, 2024, our application to form and license PIRE, a Texas reciprocal exchange, with the Texas Department of Insurance (“TDI”) was approved. In November 2024, we funded PIRE in exchange for a surplus note. On January 1, 2025, just after PIRE was officially formed, we sold HOA to PIRE for an additional surplus note, bringing the total surplus notes held by Porch to approximately $106 million. Member-owned PIRE is expected to have several benefits to Porch Group, including mitigating our exposure to seasonality and catastrophic weather, therefore providing more predictable commission and fee-based income and higher margin financial performance. The Company will fully manage and operate PIRE and HOA in accordance with an Attorney-In-Fact Agreement. For more information, see the “Reciprocal Exchange” subsection in the “Recent Developments” section of “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Annual Report.

The sale of HOA to PIRE completed our planned structural changes. We plan to operate prospectively under new segments effective in 2025. Our new segments will be Insurance Services, Software & Data, Consumer Services, and PIRE. Because of its member-owned design, PIRE results will be reported as noncontrolling interest for the time being.

Scale PIRE Insurance Premiums

Our strategy continues to focus on profitable growth, including recruiting a high performing sales team who will increase our quote volumes and therefore insurance gross written premiums by:

•Building deeper relationships with existing third party insurance agencies.

•Expand the number of third party insurance agency relationships.

•Expand our offering within our existing states and into new states.

In addition, we plan to continue to increase premium per policy and implement other underwriting actions where appropriate.

Software Innovation to SaaS Businesses

We plan to continue increasing utilization of our SaaS products and maintain high customer retention. We expect to launch new products and features to meet the needs of our clients, while increasing prices and maintaining high customer retention rates.

Growth of Data Business

We intend to add new Home Factors, our property insights product, each quarter and further monetize Home Factors with third parties.

Expand Access to Consumers

By leveraging existing partnerships with moving companies, major utilities, and other other partnerships, we are expanding access to high-value homebuyers early in their journey, and fostering long-term customer relationships.