Porch Group, Inc.

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 March 31, 2026, 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 March 31, 2026, revenue for Porch Shareholder Interest increased $24.9 million when compared to the prior year period. The increase was primarily due to an increase in fee revenue associated with increases in RWP and Reciprocal Policies Written. In addition, we had increased revenue due to an increase in ceding from the Reciprocal Segment with the new reinsurance programs beginning on April 1, 2025. Porch Shareholder Interest Revenue is a non-GAAP measure. See Non-GAAP Financial Measures section for definition

Porch Shareholder Interest Gross Profit improved by $22.1 million for the three months ended March 31, 2026, when compared to the prior year period. The increase in gross profit was primarily driven by the increase in revenue and was slightly offset by increased ceding activity with the Reciprocal segment following updates to its reinsurance program on 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 $2.8 million for the three months ended March 31, 2026, compared to the prior year period. The increase was primarily due to increased Adjusted EBITDA in our Insurance Services segment and strong cost control across the business including lower legal and accounting professional fees. The following sections provide more discussion of individual segment results. 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.

For the three months ended March 31, 2026, Insurance Services segment revenue increased by $24.9 million, or 50%, to $74.7 million compared to $49.8 million for the three months ended March 31, 2025. Our Insurance Services segment generates revenue in several ways: management fees based on a percentage of RWP, policy fees based on the number of Reciprocal Policies Written, captive reinsurance premiums, and lead fees from third-party insurance agencies. The 50% increase in Insurance Services segment revenue was primarily due to an increase in fee revenue associated with the 18% increase in RWP and the 33% increase in Reciprocal Policies Written, driven by an increase in the number of agencies and improved conversion rates from quotes to written policies for new policyholders. In addition, we had increased revenue due to an increase in ceding from the Reciprocal Segment with the new reinsurance programs beginning on April 1, 2025.

For the three months ended March 31, 2026, Insurance Services segment gross profit was $63.8 million. For the three months ended March 31, 2025, Insurance Services segment gross profit was $42.3 million. The increase in gross profit resulted from the $24.9 million increase in revenue as described above. Higher revenue was slightly offset by an increase in cost of revenue due to an increase in ceding activity with the Reciprocal segment following updates to its reinsurance program on April 1, 2025.

Insurance Services Adjusted EBITDA was $27.5 million in the first quarter of 2026, which increased slightly compared to prior year due to the $21.5 million increase in gross profit. This increase was partially offset by a $20.1 million increase in selling and marketing expense resulting from higher commission rates and increased ceding from the Reciprocal Segment following updates to its reinsurance program on April 1,2025. The increase in commissions is reflected in selling and marketing expense in the unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

Insurance Services Adjusted EBITDA Margin decreased to 37% for the three months ended March 31, 2026, due the increase in revenue outpacing the increase in Adjusted EBITDA.

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 three months ended March 31, 2026, Software & Data segment results were relatively stable, with revenue, gross profit, gross margin, Adjusted EBITDA, and Adjusted EBITDA margin all remaining consistent when compared to the three months ended March 31, 2025. Average Number of Companies decreased slightly compared to the same period last year. This slight decrease was expected as we focus our strategy on more profitable products. However, this decrease was offset by an increase in Annualized Average Revenue per Company due to price increases on our title insurance software.

CONSUMER SERVICES

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

For the three months ended March 31, 2026, Consumer Services segment revenue was relatively stable when compared to the three months ended March 31, 2025. Average Revenue per Monetized Service increased, reflecting our strategic focus on higher value services, which led to a decrease in the number of Monetized Services while maintaining stable revenue year‑over‑year.There was a slight increase in Average Revenue per Monetized Service, particularly in our warranty businesses. This increase was partially offset by a decrease in the number of Monetized Services which was expected as we focus our strategy on more profitable services.

Consumer Services segment gross profit improved by $0.9 million due to a decrease in warranty claims expense. The stable revenue and improved gross profit resulted in an increase in Consumer Services gross margin from 83% for the three months ended March 31, 2025, to 87% for the three months ended March 31, 2026.

Consumer Services Adjusted EBITDA Loss improved by $0.7 million for the three months ended March 31, 2026, when compared to the three months ended March 31, 2025. The improvement was primarily driven by a decrease in expense for warranty claims offset by increased consumer marketing costs in our warranty businesses.

Consumer Services Adjusted EBITDA Loss Margin improved for the three months ended March 31, 2026, primarily driven by a decrease in expense for warranty claims. This decrease in cost led to a increase of Adjusted EBITDA while revenue remained relatively stable, leading to higher Adjusted EBITDA Loss Margin.

CORPORATE

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

Corporate expenses slightly decreased for the three months ended March 31, 2026, compared to the same period for 2025. The decrease was primarily due to strong cost control across the business including lower legal and accounting professional fees partially offset by increased payroll costs due to organizational realignment and consolidation of headcount from operating segments into Corporate.