Executive Summary

Q2 2025 outperformed across key metrics and drove a guidance raise: consolidated revenue $119.3M and net income $8.2M; Porch Shareholder Interest revenue $107.0M, gross profit $89.2M, and Adjusted EBITDA $15.6M .
Revenue materially beat Wall Street: consensus $98.1M vs actual $119.3M; EPS beat with actual $0.03 vs consensus -$0.114; 5 estimates on both metrics. Values retrieved from S&P Global*.
Gross profitability inflected: consolidated gross profit up 352% YoY to $75.9M with gross margin 64%; Insurance Services margin at 86% and segment Adjusted EBITDA $19.7M .
Guidance raised midpoints: Revenue to $415M (+$5M), Gross Profit to $335M (+$7.5M), Adjusted EBITDA to $67.5M (+$2.5M), reflecting stronger insurance economics and margin resilience .
Catalysts: accelerated agency distribution (Goosehead renewal; Roamly, Evertree, MassDrive), Reciprocal surplus reached $299.2M enabling premium scaling; KPI momentum in policies written and conversion .

What Went Well and What Went Wrong

What Went Well

Insurance Services monetization exceeded plan: $67.4M revenue on $120.7M RWP (56% premium-to-revenue conversion), 86% gross margin, 29% segment EBITDA margin; CFO: “premium convert to revenue and adjusted EBITDA very strongly in Porch Insurance Services.”
Data and software progress: Rhino wins at Fidelity National Financial and another top-five title insurer; HomeFactors ahead of plan with carrier tests and strong ROI signals .
Balance sheet and capital structure: repurchased majority of 2026 notes during/after Q2, leaving $8.8M outstanding in July; Board authorized repurchasing remaining notes; Reciprocal surplus at $299.2M (+$102M q/q) .

What Went Wrong

Housing market softness kept Software & Data growth modest (+4% YoY) and Consumer Services revenue down (-6% YoY), despite margin improvements via mix shift and pricing .
Consolidated diluted EPS not meaningful due to GAAP consolidation mechanics; basic EPS modest at $0.03, highlighting the complexity from consolidating the Reciprocal while managing to Porch Shareholder Interest economics .
Ongoing reinsurance/weather dependence at the Reciprocal (though mitigated): management emphasized retention reduced to $23M per event and noted Q2 weather was “normalized,” underscoring residual carrier-seasonality (absorbed at the Reciprocal) .

Financial Results

Headline Financials vs Prior Periods and Consensus

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue (Consolidated, $M)	$110.844	$104.745	$119.295
Gross Profit (Consolidated, $M)	$16.798	$65.448	$75.873
Gross Margin (Consolidated, %)	15%	62%	64%
Net Income (Consolidated, $M)	$(64.323)	$3.736	$8.247
EPS (Basic, attributable to Porch, $)	$(0.65)	$0.08	$0.03
Adjusted EBITDA (Porch Shareholder Interest, $M)	$(3.204)	$16.861	$15.630
Revenue Consensus ($M)	—	—	98.064*
EPS Consensus ($)	—	—	-0.114*

Notes: Values retrieved from S&P Global*; Revenue “Porch Shareholder Interest” is non-GAAP and distinct from consolidated results. Adjusted EBITDA reflects non-GAAP reconciliations excluding Reciprocal earnings; see 8-K tables -.

Segment Breakdown

Segment Metric	Q2 2024	Q1 2025	Q2 2025
Insurance Services Revenue ($000s)	$34,080	$49,806	$67,390
Insurance Services Gross Profit ($000s)	$14,621	$42,325	$57,864
Insurance Services Gross Margin (%)	43%	85%	86%
Insurance Services Adjusted EBITDA ($000s)	$3,838	$25,809	$19,657
Software & Data Revenue ($000s)	$23,173	$21,999	$24,013
Software & Data Gross Profit ($000s)	$17,327	$16,493	$18,167
Software & Data Gross Margin (%)	75%	75%	76%
Software & Data Adjusted EBITDA ($000s)	$4,036	$4,571	$5,542
Consumer Services Revenue ($000s)	$18,858	$14,721	$17,650
Consumer Services Gross Profit ($000s)	$15,068	$12,231	$15,236
Consumer Services Gross Margin (%)	80%	83%	86%
Consumer Services Adjusted EBITDA ($000s)	$1,152	$(670)	$1,957

KPIs

KPI	Q1 2025	Q2 2025
Reciprocal Written Premium (RWP, $M)	$96.9	$120.7
Reciprocal Policies Written (000s)	36.1	42.5
RWP per Policy ($)	$2,683	$2,843
Avg # of Companies (000s)	24.1	24.2
Annualized Avg Revenue per Company ($)	$3,644	$3,974
Monetized Services (000s)	71.0	87.2
Avg Revenue per Monetized Service ($)	$207	$202

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue (Porch Shareholder Interest)	FY 2025	$400m–$420m	$405m–$425m	Raised (midpoint +$5m)
Gross Profit (Porch Shareholder Interest)	FY 2025	$320m–$335m	$328m–$342m	Raised (midpoint +$7.5m)
Adjusted EBITDA (Porch Shareholder Interest)	FY 2025	$60m–$70m	$65m–$70m	Raised (midpoint +$2.5m)

Notes: Guidance excludes future Reciprocal results; Porch manages to Porch Shareholder Interest economics .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24, Q1’25)	Current Period (Q2’25)	Trend
Insurance model transition	Formation of Reciprocal (PIRE) in Jan-25; moving to fee/commission model -	“Go-forward structure is playing out better than expected”; simple, predictable, high-margin	Positive continuation
Agency distribution	Restarted growth; expanding partners	Renewed Goosehead; added Roamly, Evertree, MassDrive; sales team from 2 to 26	Accelerating
HomeFactors data	Strong pipeline of carrier tests	Ahead of plan; ROI strong; use cases beyond underwriting (marketing, reinsurance)	Broadening adoption
Margin expansion	Record Q4 EBITDA; high gross margins -	83% gross margin (Porch Shareholder Interest); adjusted EBITDA margin 15%	Sustained high margins
Weather/reinsurance	Lower reinsurance cost; retention reduction	Retention $23M per event; Q2 weather normalized; flood not covered; strong underwriting (gross loss ratio 34%) -	Risk mitigated
Tariffs/macro	Not a material impact previously	“Tariffs will not impact our business in any meaningful way”; recession/interest-rate scenarios supportive	Neutral-to-supportive
Geographic expansion	Reopening geographies	Michigan near launch; most ZIPs reopened; Texas dynamic favorable	Expanding footprint
Product differentiation	Moving services marketplace; warranties	TDI approval: full home warranty + 4 hours moving services for policyholders	Enhanced value proposition

Management Commentary

CEO: “Our go forward structure is… simple, predictable, and high margin... revenue was $107M… gross profit $89M… Adjusted EBITDA $16M… $15M cash flow from operations… raising 2025 guidance to Revenue $415M, Gross Profit $335M, and Adjusted EBITDA $67.5M at the mid-point.”
CFO: “Q2 Porch Shareholder Interest revenue was $107M with an 83% gross margin… Adjusted EBITDA of $15.6M was ahead of expectations… insurance services drove outperformance.”
COO: “Reciprocal written premium grew 25% over Q1... wrote nearly 43k policies; RWP per policy $2,843 (+6% q/q)”; “reinsurance renewal improved retention to $23M” .
CEO on macro resilience: “Homeowners need homeowners insurance… premiums have grown through cycles… tariffs will not impact our business in any meaningful way.”

Q&A Highlights

Insurance monetization uptick: Take rate improved to ~56% premium-to-revenue conversion; CFO emphasized strong EBITDA/cash flow conversion from RWP .
Growth vs margin philosophy: Aim for >20% annual growth and consistent margin expansion; avoid maximizing either in a single year to optimize LT value .
Weather impacts: Q2 weather normalized; flood losses typically not covered and July Texas floods nominal; retention lowered to $23M per event -.
Underwriting performance: Reciprocal gross loss ratio 34% vs 117% prior year; attritional loss ratio down to 8% (−1300 bps YoY) .
Agency reception/geographies: Strong agent interest; expanding in Texas and adding Michigan; competitive commissions enabled by economics -.
HomeFactors adoption: Strong carrier engagement; broader use cases (marketing, pricing, reinsurance); no 2025 revenue dependency -.

Estimates Context

Q2 2025 Revenue: Actual $119.3M vs consensus $98.1M; material beat. Values retrieved from S&P Global*.
Q2 2025 EPS: Actual basic $0.03 vs consensus -$0.114; beat. 5 estimates on both metrics. Values retrieved from S&P Global*.
Implications: Street models likely need higher insurance revenue conversion and margins, with FY guidance raises supporting upward revisions to FY revenue, gross profit, and EBITDA trajectories .

Key Takeaways for Investors

Insurance Services economics are scaling: high conversion from RWP to revenue (56%), 86% gross margin, and resilient EBITDA/cash generation—expect continued margin-led growth .
Guidance raise and surplus growth increase confidence: FY midpoints moved up; Reciprocal surplus at $299.2M expands capacity for premium growth into 2026 without equity sales assumptions .
Distribution flywheel accelerating: Goosehead renewal and new agency partnerships broaden reach; expect volume tailwinds as states/geographies expand .
Data advantage is a differentiator: HomeFactors traction with carriers and in non-insurance use cases supports multi-segment monetization and pricing advantages .
Risk buffers strengthen: Reinsurance retention lowered; normalized weather in Q2; Porch Shareholders insulated from cat volatility via Reciprocal structure .
Near-term trading: Results/guidance beats plus agency wins are positive catalysts; watch Q3/Q4 seasonality and continued premium scaling/EBITDA conversion.
Medium-term thesis: Durable, asset-light, fee-based model with high margins, growing distribution, and data-driven underwriting supports >20% growth with expanding EBITDA margins over multi-year horizon .

Footnote: Consensus estimates and any “actual” fields shown from S&P Global Capital IQ are marked with an asterisk (). Values retrieved from S&P Global.

Porch Group, Inc. (PRCH)·Q2 2025 Earnings Summary