Porch Group, Inc.

Effective January 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 year ended December 31, 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 effective January 1, 2025. See Non-GAAP Financial Measures section.

For the year ended December 31, 2025, Porch Shareholder Interest Revenue increased $105.6 million when compared to the same segments in the prior year. The increase was primarily due to the launch of the Reciprocal in January 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 warranty revenue being recognized over a longer timeframe, and a strategic shift to lower revenue, higher profit services in our moving businesses. Porch Shareholder Interest Revenue is a non-GAAP measure. See Non-GAAP Financial Measures section for definition.

Porch Shareholder Interest Gross Profit improved by $146.1 million for the year ended December 31, 2025, when compared to the prior year. This improvement was primarily driven by the shift in the business model from carrier to the operator of the Reciprocal. The increase was also a result of the change in reinsurance programs at our captive reinsurer effective April 1, 2025. 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 $72.5 million for the year ended December 31, 2025, compared to the prior year. The improvement was primarily driven by increased ceding activity from the Reciprocal Segment and the shift in the business model from carrier to the operator 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, Adjusted EBITDA Margin, and Adjusted EBITDA % of RWP are non-GAAP measures. See Non-GAAP Financial Measures section.

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

(3)Adjusted EBITDA % of RWP is Insurance Services Adjusted EBITDA divided by RWP.

For the year ended December 31, 2025, Insurance Services segment revenue was $266.7 million. For the year ended December 31, 2024, Insurance Services segment revenue was $157.1 million. The 70% 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, the increase partially resulted from the launch of the Reciprocal in January 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 Reciprocal Written Premium, policy fees from the Reciprocal, reinsurance to improve capital efficiency for the Reciprocal, lead fees from third-party insurance agencies, and interest from the surplus note due from the Reciprocal. Insurance Services Adjusted EBITDA as a percentage of Reciprocal Written Premium was 21% for the year ended December 31, 2025.

For the year ended December 31, 2025, Insurance Services segment gross profit was $227.6 million. For the year ended December 31, 2024, Insurance Services segment profit was $80.0 million. The increase in gross profit was primarily driven by the shift in the business model from carrier to the operator of the Reciprocal.

Insurance Services Adjusted EBITDA was $99.7 million for the year ended December 31, 2025, which improved compared to prior year primarily driven by an increase in ceding from the Reciprocal Segment. Adjusted EBITDA also increased as a result of 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 year ended December 31, 2025, primarily due to the increase in revenue due to 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.

SOFTWARE & DATA

(1)Software & Data 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. In 2025, metrics are presented on a segment-level basis.

For the year ended December 31, 2025, Software & Data segment revenue was $92.9 million. For the year ended December 31, 2024, Software & Data segment revenue was $89.2 million. The increase in revenue was driven by additional transaction volume of our Home Factors product and price increases of our title insurance software.

For the year ended December 31, 2025, Software & Data segment gross profit was $67.2 million. For the year ended December 31, 2024, Software & Data segment gross profit was $65.4 million. The gross profit improvement correlated with the increase in Software & Data segment revenue.

Software & Data Adjusted EBITDA was $18.9 million for the year ended December 31, 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 20% for the year ended December 31, 2025, reflecting improved operational efficiency. Adjusted EBITDA Margin growth was driven by a reduction in operating costs from strong cost control, including a reduction in workforce, lower professional fees, and lower rent expense.

CONSUMER SERVICES

(1)Consumer 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. In 2025, metrics are presented on a segment-level basis.

For the year ended December 31, 2025, Consumer Services segment revenue was $68.4 million. For the year ended December 31, 2024, Consumer Services segment revenue was $69.1 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 services that yield higher profit in our moving businesses.

Consumer Services gross profit was $58.2 million for the year ended December 31, 2025. For the year ended December 31, 2024, Consumer Services segment gross profit was $54.4 million. The increase in gross profit was primarily driven by a decrease in warranty claims and a shift to higher profit services in our moving businesses.

Consumer Services Adjusted EBITDA was $4.8 million for the year ended December 31, 2025, which decreased compared to prior year, and was primarily driven by an increase in direct mail marketing expense for new warranty products. This decrease was slightly offset but an increase in gross profit due to a decrease in the number of warranty claims and a shift to higher profit services in our moving businesses.

Consumer Services Adjusted EBITDA Margin decreased to 7% for the three months ended December 31, 2025, primarily driven by an increase in direct mail marketing expense for new warranty products, a 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 year ended December 31, 2025, compared to the prior year. 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.