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 Year-to-Date Results” section.

(1)Porch Shareholder Interest Revenue, Gross Profit, and Adjusted EBITDA (Loss) are non-GAAP measures. For the nine 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 nine months ended September 30, 2025, revenue for Porch Shareholder Interest increased $68.7 million when compared to the prior year period. The increase was primarily due to the launch of the Reciprocal on January 1, 2025, and the associated revenue streams as Porch acts as its manager, and an increase in ceding from the Reciprocal Segment with the new reinsurance programs beginning on April 1, 2025. This increase was partially offset by an increase in the average coverage period of our warranty products, resulting in revenue being recognized over a longer timeframe, and strategic shift to lower revenue, higher profit services in our moving businesses.

Porch Shareholder Interest Gross Profit improved by $115.8 million for the nine 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 $65.6 million for the nine 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 and Adjusted EBITDA 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 nine months ended September 30, 2025, Insurance Services segment revenue was $191.0 million. For the nine months ended September 30, 2024, Insurance Services segment revenue was $118.6 million. The 61% increase in Insurance Services segment revenue was primarily driven by an increase in ceding from the Reciprocal Segment with the new reinsurance programs beginning on April 1, 2025. Additionally, revenue increased due to the launch of the Reciprocal on January 1, 2025, and the associated revenue streams as Porch acts as its 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 nine months ended September 30, 2025

For the nine months ended September 30, 2025, Insurance Services segment gross profit was $162.4 million. For the nine months ended September 30, 2024, Insurance Services segment profit was $46.2 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 was $70.8 million in the nine months ended September 30, 2025, which improved compared to prior year primarily due to 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 Margin increased to 37% for the nine months ended September 30, 2025, primarily due to the increase in revenue driven by increased ceding activity from the Reciprocal Segment. The Adjusted EBITDA 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 higher principal balance of 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.

For the nine months ended September 30, 2025, Software & Data segment revenue was $70.6 million. For the nine months ended September 30, 2024, Software & Data segment revenue was $67.4 million. Revenue was impacted by an increase in transaction volume of our Home Factors product and price increases of our title insurance software.

For the nine months ended September 30, 2025, Software & Data segment gross profit was $52.8 million. For the nine months ended September 30, 2024, Software & Data segment gross profit was $50.1 million. Gross Profit improvement correlated with the increase in Software & Data segment revenue.

Software & Data Adjusted EBITDA was $15.2 million in the nine months ended September 30, 2025, which improved compared to prior year due to strong cost control, including a reduction in workforce, lower professional fees, and lower rent expense.

Software & Data Adjusted EBITDA Margin increased to 22% for the nine months ended September 30, 2025, reflecting improved operational efficiency. While revenue increased by 5% 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 growth was driven by reduction in operating costs from strong cost control, including a reduction in workforce and lower professional fees.

CONSUMER SERVICES

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

For the nine months ended September 30, 2025, Consumer Services segment revenue was $51.7 million. For the nine months ended September 30, 2024, Consumer Services segment revenue was $52.8 million. The decrease in revenue was primarily driven by an increase in the average coverage period of our warranty products, resulting in revenue being recognized over a longer timeframe. The decrease in revenue was also driven by a strategic shift to lower revenue higher profit services in our moving businesses. These decreases were partially offset by increased revenue from greater fee retention for providing third-party TV/Internet services.

Consumer Services Adjusted EBITDA was $3.8 million in the nine months ended September 30, 2025, which decreased compared to prior year, was primarily driven by the decrease in monthly revenue resulting from a longer warranty coverage period. The new longer warranty is priced higher but results in a lower monthly rate. In addition, the decrease was also impacted by the timing of direct mail marketing expense for new warranty products compared to the prior year.

Consumer Services Adjusted EBITDA Margin decreased to 7% for the nine months ended September 30, 2025, primarily driven by decrease in monthly revenue related to longer coverage period of our warranty products and the shift to higher profit moving services.

CORPORATE

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

Corporate expenses decreased for the nine months ended September 30, 2025, compared to the 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.