Q - Porch Group,

For the period ended Jun 30, 2025. Filed Aug 5, 2025.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2025 · Filed Aug 5, 2025

PRCH$21.95+6.3%Stored close · as of Nov 10, 2026

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Contents

Consolidated Year-to-Date Results

	Six Months Ended June 30,
2025 · 2024 · $ Change · % Change
(dollar amounts in thousands)
Revenue	$224,040	$226,287		$(2,247)		(1)%
Cost of revenue	82,719	172,412		(89,693)		(52)%
Gross Profit	141,321	53,875		87,446		162%
Operating expenses:
Selling and marketing	56,374	67,145		(10,771)		(16)%
Product and technology	26,277	25,219		1,058		4%
General and administrative	54,887	48,658		6,229		13%
Total operating expenses	137,538	141,022		(3,484)		(2)%
Operating income (loss)	3,783	(87,147)		90,930		(104)%
Other income (expense):
Interest expense	(23,302)	(21,113)		(2,189)		10%
Change in fair value of private warrant liability	(3,610)	1,026		(4,636)		(452)%
Change in fair value of derivatives	19,526	(6,724)		26,250		(390)%
Gain on extinguishment of debt	34	4,891		(4,857)		(99)%
Investment income and realized gains and losses, net of investment expenses	5,475	7,170		(1,695)		(24)%
Other income, net	9,893	25,078		(15,185)		(61)%
Total other income	8,016	10,328		(2,312)		(22)%
Income (loss) before income taxes	11,799	(76,819)		88,618		(115)%
Income tax benefit (provision)	184	(866)		1,050		(121)%
Net income (loss)	$11,983	$(77,685)		$89,668		(115)%
Less: Net income attributable to the Reciprocal	1,009	—		1,009		N/A
Net income (loss) attributable to Porch	$10,974	$(77,685)		$88,659		(114)%
Net income (loss)	$11,983	$(77,685)		$89,668		(115)%
Net loss (income) attributable to the Reciprocal	(1,009)	—		$(1,009)			N/A
Interest expense	23,221	21,113		$2,108			10%
Income tax provision (benefit)	(1,172)	866		$(2,038)			(235)%
Depreciation and amortization	9,485	12,519		$(3,034)			(24)%
Gain on extinguishment of debt	(34)		(4,891)		$4,857			(99)%
Other income, net	(7,257)	(22,206)		$14,949			(67)%
Loss (gain) on reinsurance contract	—	(1,106)		$1,106			(100)%
Stock-based compensation expense	12,910	12,473		$437			4%
Mark-to-market losses (gains)	(15,944)	5,398		$(21,342)			(395)%
Restructuring costs	132	1,792		$(1,660)			(93)%
Acquisition and other transaction costs	176	166		$10			6%
Adjusted EBITDA (Loss)	$32,491	$(51,561)		$84,052		(163)%
Adjusted EBITDA (Loss) Margin	15%		(23)%

Revenue. Total consolidated revenue including the Reciprocal decreased by 1% compared to the same period last year, reflecting stable performance across the company. Revenue related to the Porch Shareholder Interest was $191.6 million in the six months ended June 30, 2025, as detailed in the following table.

Cost of revenue. Total consolidated cost of revenue including the Reciprocal decreased by $89.7 million, or 52%, from $172.4 million in the six months ended June 30, 2024, to $82.7 million in the six months ended June 30, 2025. The decrease was primarily the result of a reduction in weather related claims. As a percentage of revenue, cost of revenue represented 37% of revenue in the six months ended June 30, 2025, compared with 76% in the six months ended June 30, 2024. Cost of revenue typically exhibits seasonal trends, with lower costs in the first and fourth quarters and higher costs in the second and third quarters, primarily due to increased frequency and severity of weather-related events and timing of insurance-related expenses. However, we had significantly fewer weather related claims in the second quarter of 2025 compared to historical seasonal trends. Cost of revenue related to Porch Shareholder Interest was $33.3 million in the six months ended June 30, 2025, as detailed in the table below. Porch Shareholder Interest Cost of Revenue is a non-GAAP measure. See Non-GAAP Financial Measures section for definition.

Selling and marketing. Total consolidated selling and marketing expenses including the Reciprocal decreased by $10.8 million, or 16%, from $67.1 million in the six months ended June 30, 2024, to $56.4 million in the six months ended June 30, 2025. The decrease is primarily driven by a reduction in the amortization of deferred policy acquisition costs, reflecting a shift away from policies written under historically higher commission rates. As a percentage of revenue, selling and marketing expenses represented 25% of revenue in the six months ended June 30, 2025 compared with 30% in the six months ended June 30, 2024. Selling and marketing expense related to Porch Shareholder Interest was $88.0 million in the six months ended June 30, 2025, as detailed in the table below. Porch Shareholder Interest Selling and Marketing is a non-GAAP measure. See Non-GAAP Financial Measures section for definition

General and administrative. Total consolidated general administrative expenses including the Reciprocal increased by $6.2 million, or 13%, from $48.7 million in the six months ended June 30, 2024, to $54.9 million in the six months ended June 30, 2025, primarily due to a one-time agency partnership payment during the six months ended June 30, 2025. General and administrative expenses related to Porch Shareholder Interest were $46.9 million in the six months ended June 30, 2025, as detailed in the table below. Porch Shareholder Interest General and Administrative is a non-GAAP measure. See Non-GAAP Financial Measures section for definition.

Change in fair value of derivatives. The fair value of the derivative liability decreased in the six months ended June 30, 2025, compared increasing during the six months ended June 30, 2024. The value is driven by various factors, including the fair value of the underlying debt, stock price, and assumptions regarding timing of possible repurchase events. See Note 6 in the unaudited Notes to Condensed Consolidated Financial Statements. The change in fair value of derivatives related entirely to Porch Shareholder Interest.

Gain on extinguishment of debt. In connection with the repurchase of a portion of the 2026 Notes, we recognized a $4.9 million gain on extinguishment of debt during the three months ended June 30, 2024, compared to less than $0.1 million during the three months ended June 30, 2025. See Note 9 in the unaudited Notes to Condensed Consolidated Financial Statements. The gain on extinguishment of debt related entirely to Porch Shareholder Interest.

Investment income and realized gains and losses, net of investment expenses. Total investment income and realized gains, net of investment expenses, including the Reciprocal were $5.5 million and $7.2 million in the six months ended June 30, 2025 and 2024, respectively. The decrease was primarily driven by unfavorable market conditions, which resulted in lower returns on our investment portfolio. Investment income and realized gains, net of investment expenses, related to Porch Shareholder Interest was $0.8 million for the six months ended June 30, 2025. Porch Shareholder Interest Other Income is a non-GAAP measure. See Non-GAAP Financial Measures section for definition

Other income, net. Total consolidated other income, net, including the Reciprocal decreased by $15.2 million from $25.1 million in the six months ended June 30, 2024, to $9.9 million in the six months ended June 30, 2025. The decrease is primarily driven by a $14.9 million gain on settlement of contingent consideration and a $5.3 million loss on sale of our EIG business, both which occurred during the months ended June 30, 2024, with no comparable event during the six months ended June 30, 2025. Additionally, recoveries on reinsurance contracts were approximately $4.5 million lower in the six months ended June 30, 2025, compared to the six months ended June 30, 2024. See Note 14 in the unaudited Notes to Condensed Consolidated Financial Statements for detail of other income, net, for each period presented. Other income, net, related to Porch Shareholder Interest was $17.5 million for the six months ended June 30, 2025. Porch Shareholder Interest Other Income is a non-GAAP measure. See Non-GAAP Financial Measures section for definition

The following tables summarize operating results of our four segments as well as corporate expenses and eliminations.

Insurance Services · Software & Data · Consumer Services · Corporate · Eliminations (1) · Porch Shareholder Interest Subtotal (2) · Reciprocal Segment · Eliminations Related to Reciprocal Segment (3) · Consolidated
Revenue	$117,196	$46,012	$32,371		$—		$(4,015)		$191,564		$95,347	$(62,871)		$224,040
Cost of revenue	17,007	11,352	4,904		—		(7)		33,256		50,145	(682)		82,719
Gross Profit	100,189	34,660	27,467		—		(4,008)		158,308		45,202	(62,189)		141,321
Gross Margin	—	—	—		—		—		—		—	—		—
Less: Operating expenses:
Selling and marketing	52,552	18,395	20,263		806		(4,008)		88,008		11,046	(42,680)		56,374
Product and technology	4,990	8,913	2,198		8,483		—		24,584		1,693	—		26,277
General and administrative	9,690	5,130	6,390		25,729		—		46,939		27,457	(19,509)		54,887
Operating income (loss)			(35,018)		—		(1,223)		5,006		—	3,783
Other expense (income)	(10,447)	(19)	(203)		(356)		—		(11,025)		3,009	—		(8,016)
Income (loss) before income taxes			(34,662)		—		9,802		1,997		—	11,799
Income tax benefit (provision)			1,172		—		1,172		(988)		—	184
Net income (loss)			$(33,490)		$—		$10,974		$1,009		$—	$11,983
Less: Net income attributable to the Reciprocal								1,009
Net income attributable to Porch										$10,974
Adjusted EBITDA (Loss) Reconciliation:
Net income (loss)			$(33,490)			$10,974					$11,983
Less Reconciling items:
Net income attributable to the Reciprocal				—					1,009
Depreciation and amortization	(176)	(6,430)	(1,725)		(1,154)		—		(9,485)				(9,485)
Stock-based compensation expense	(1,718)	(1,453)	(825)		(8,914)		—		(12,910)				(12,910)
Gain (loss) on extinguishment of debt	—	—	—		34		—		34				34
Interest expense	—	(2)	1		(23,220)		—		(23,221)				(23,221)
Income tax provision	—	—	—		1,172		$—		1,172				1,172
Mark-to-market gains (losses)	—	—	28		15,916		—		15,944				15,944
Recoveries of Losses on Reinsurance Contracts	—	—	—		7,100		—		7,100				7,100
Other gains and losses	(168)	13	53		(49)		—		(151)				(151)
Adjusted EBITDA (Loss) (4)	$45,466	$10,113	$1,287		$(24,375)			$32,491				$32,491

(2)The “Porch Shareholder Interest Subtotal” column includes non-GAAP measures that are used by management to evaluate performance. Porch Shareholder Interest includes the Insurance Services, Software & Data, and Consumer Services segments as well as Corporate expenses and applicable intercompany eliminations. See Non-GAAP Financial Measures section.

(3)The “Eliminations Related to Reciprocal Segment” column represents eliminations of transactions between the Reciprocal Segment and other segments or Corporate.

(4)Adjusted EBITDA (Loss) is a non-GAAP measure. See Non-GAAP Financial Measures section for definition.

Insurance Services · Software & Data · Consumer Services · Corporate · Eliminations (1) · Subtotal · Reciprocal Segment · Eliminations Related to Reciprocal Segment (2) · Consolidated
Revenue	$81,439	$44,308	$35,044	$—		$(509)		$160,282	$96,234	$(30,229)		$226,287
Cost of revenue	44,867	11,501	7,323	—		(36)		63,655	115,678	(6,921)		172,412
Gross Profit	36,572	32,807	27,721	—		(473)		96,627	(19,444)	(23,308)		53,875
Gross Margin	45%	74%	79%	—%		93%		60%	(20)%	77%		24%
Less: Operating expenses:
Selling and marketing	28,077	20,402	18,991	1,223		(473)		68,220	22,233	(23,308)		67,145
Product and technology	448	8,801	1,979	10,617		—		21,845	3,374	—		25,219
General and administrative	3,344	7,948	5,921	27,591		—		44,804	3,854	—		48,658
Operating income (loss)			(39,431)	—		(38,242)		(48,905)	—	(87,147)
Other expense (income)	(11,976)	(14,946)	77	18,483		—		(8,362)	(1,966)	—		(10,328)
Income (loss) before income taxes			(57,914)	—		(29,880)		(46,939)	—	(76,819)
Income tax benefit (provision)			(866)	—		(866)		—	—	(866)
Net income (loss)			$(58,780)	$—		$(30,746)		$(46,939)	$—	$(77,685)
Adjusted EBITDA (Loss) Reconciliation:
Net income (loss)			$(58,780)		$(30,746)				$(77,685)
Less: Reconciling items:
Depreciation and amortization	(1,985)	(7,586)	(2,009)	(925)		—		(12,505)			(12,519)
Stock-based compensation expense	(734)	(2,343)	(1,061)	(8,335)		—		(12,473)			(12,473)
Gain (loss) on extinguishment of debt	—	—	—	4,891		—		4,891			4,891
Interest expense	—	21	(14)	(21,050)		—		(21,043)			(21,113)
Income tax provision	—	—	—	(866)		—		(866)			(866)
Mark-to-market gains (losses)	—	(909)	1,209	(5,698)		—		(5,398)			(5,398)
Recoveries of Losses on Reinsurance Contracts	8,664	—	—	2,981		—		11,645			11,645
Other gains and losses	(19)	14,829	(7)	(2,521)		—		12,282			9,709
Adjusted EBITDA (Loss) (3)	$10,753	$6,590	$2,635	$(27,257)			$(7,279)			$(51,561)

(2)The “Eliminations Related to Reciprocal Segment” column represents eliminations of transactions between the Reciprocal Segment and other segments or Corporate.

(3)Adjusted EBITDA (Loss) is a non-GAAP measure. See Non-GAAP Financial Measures section for definition.

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