Porch Group, Inc.

Effective January 1, 2025, Porch shareholders own three segments: Insurance Services, Software & Data, and Consumer Services. Together, these segments—offset by corporate expenses—comprise what we refer to as the “Porch Shareholder Interest.” These segments contribute to Net Income Attributable to Porch and are what is expected to generate cash for Porch shareholders. Comparative period amounts in the following table include only the Insurance Services, Software & Data, and Consumer Services segments as well as corporate expenses. Certain amounts presented in the following table are non-GAAP measures and are reconciled to the nearest GAAP measure in the earlier “Consolidated Quarter-to-Date Results” section.

(1)Porch Shareholder Interest Revenue, Gross Profit, and Adjusted EBITDA (Loss) are non-GAAP measures. For the three months ended September 30, 2025, Porch Shareholder Interest Adjusted EBITDA (Loss) is equivalent to total Adjusted EBITDA (Loss) for consolidated Porch, as Porch no longer owns HOA following its sale to the Reciprocal on January 1, 2025. See Non-GAAP Financial Measures section.

For the three months ended September 30, 2025, revenue for Porch Shareholder Interest increased $37.4 million when compared to the prior year period. The increase was primarily due to an increase in ceding from the Reciprocal Segment with the new reinsurance programs beginning on April 1, 2025, and the launch of the Reciprocal on January 1, 2025, and the associated revenue streams as Porch acts as its manager.

Porch Shareholder Interest Gross Profit improved by $54.1 million for the three months ended September 30, 2025, when compared to the prior year period. This improvement was primarily driven the launch of the Reciprocal and higher revenue resulting from increased ceding activity from the Reciprocal Segment. Porch Shareholder Interest Gross Profit is a non-GAAP measure. See Non-GAAP Financial Measures section for definition.

Porch Shareholder Interest Adjusted EBITDA (Loss) improved by $26.2 million for the three months ended September 30, 2025, compared to the prior year period. The improvement was primarily driven by increased ceding activity from the Reciprocal Segment and the shift in the business model from carrier to the manager of the Reciprocal, producing higher margin management fees. Our Insurance Services segment benefited from the receipt of management fees from the Reciprocal Segment which began in January 2025 and an increase in interest income from the surplus note due from the Reciprocal Segment. Our other segment and corporate costs also declined due to lower professional fees, reduced reliance on third-party consultants, and strong cost control. Porch Shareholder Interest Adjusted EBITDA (Loss) is a non-GAAP measure. See Non-GAAP Financial Measures section for definition.

INSURANCE SERVICES

(1)Insurance Services Adjusted EBITDA (Loss) and Adjusted EBITDA (Loss) Margin are non-GAAP measures. See Non-GAAP Financial Measures section.

(2)See Key Performance Measures and Operating Metrics for definitions of metrics.

For the three months ended September 30, 2025, Insurance Services segment revenue was $73.8 million. For the three months ended September 30, 2024, Insurance Services segment revenue was $37.1 million. The 99% increase in Insurance Services segment revenue was primarily driven by an increase in ceding from the Reciprocal Segment with the new reinsurance program beginning on April 1, 2025. Additionally, Insurance Services revenue increased due to the launch of the Reciprocal on January 1, 2025, and the associated revenue streams as the Insurance Services segment acts as the Reciprocal’s manager.

Our Insurance Services segment generates economics in several ways: management fees based on a percentage of written premium from the Reciprocal, policy fees based on the number of Reciprocal Policies Written, non-catastrophic weather quota share reinsurance, lead fees from third-party insurance agencies, and interest from the surplus note due from the Reciprocal. Insurance Services revenue as a percentage of RWP was 54% for the three months ended September 30, 2025.

For the three months ended September 30, 2025, Insurance Services segment gross profit was $62.3 million. For the three months ended September 30, 2024, Insurance Services segment gross profit was $9.7 million. The increase in gross profit was primarily driven by higher revenue resulting from increased ceding activity from the Reciprocal Segment..

Insurance Services Adjusted EBITDA (Loss) was $25.3 million in the third quarter of 2025, which improved compared to prior year due to increased ceding activity from the Reciprocal Segment and the various commissions and fees beginning January 1, 2025, including interest income from the surplus note due from the Reciprocal Segment.

Insurance Services Adjusted EBITDA (Loss) Margin increased to 34% for the three months ended September 30, 2025, primarily due to the increase in revenue driven by increased ceding activity from the Reciprocal Segment. The Adjusted EBITDA (Loss) Margin increase outpaced the increase in revenue, reflecting a shift in the business model from carrier to the manager of the Reciprocal, producing higher margin management fees. Higher interest income earned on surplus notes with the Reciprocal Segment also contributed to the increase.

SOFTWARE & DATA

(1)Software & Data Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. See Non-GAAP Financial Measures section.

Software & Data Adjusted EBITDA was $5.1 million in the third quarter of 2025, which improved compared to the prior year due to an increase in revenue from greater transaction volume of our Home Factors product and price increases of our title insurance software.

Software & Data Adjusted EBITDA Margin decreased to 21% for the three months ended September 30, 2025. While revenue increased by 7% compared with the prior year, primarily due to title insurance software price increases and higher transaction volume of our Home Factors product, Adjusted EBITDA Margin declined due to an increase in growth-driven investments in headcount and professional fees to support the Home Factors sales organization and product innovation.

CONSUMER SERVICES

(1)Consumer Services Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. See Non-GAAP Financial Measures section.

For the three months ended September 30, 2025, Consumer Services segment revenue was $19.4 million. For the three months ended September 30, 2024, Consumer Services segment revenue was $17.8 million. The increase in revenue was primarily driven by higher fees for providing third-party TV/Internet services.

Consumer Services Adjusted EBITDA decreased by $1.4 million for the three months ended September 30, 2025, when compared to the three months ended September 30, 2024. The decrease was primarily driven by the timing of direct mail advertising expense compared to the prior year and was partially offset by the increase in revenue.

Consumer Services Adjusted EBITDA Margin decreased to 13% for the three months ended September 30, 2025, primarily driven by the timing of direct mail advertising expense. This increase had a greater impact to Adjusted EBITDA than the increase in revenue, leading to lower Adjusted EBITDA Margin.

CORPORATE

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

Corporate expenses decreased for the three months ended September 30, 2025, compared to the same period for 2024. The decrease was driven primarily by lower professional fees and reduced reliance on third-party consultants as well as strong cost control across the business. Our cost control measures included centralizing administrative functions and shifting hiring to target lower-cost locations.

Nine Months Ended September 30, 2025, compared to the Nine Months Ended September 30, 2024