Porch Group NASDAQ: PRCH reported what CEO and Founder Matt Ehrlichman called a “strong start to 2026,” with first-quarter results coming in ahead of expectations and prompting the company to raise its full-year outlook for Porch Shareholder Interest revenue, gross profit, and adjusted EBITDA.
Ehrlichman said Porch has become “a simpler, higher margin fee and commission-based business” designed to compound premium and cash flow over time while avoiding the earnings volatility typical of risk-bearing insurance carriers. He emphasized that 2026 marks the first year with meaningful year-over-year comparisons for Porch Shareholder Interest results following the January 1, 2025 launch of the reciprocal exchange and related reporting changes.
First-quarter results exceeded expectations
In the first quarter, Porch reported Porch Shareholder Interest reciprocal written premium (RWP) of $114 million, up 18% year-over-year. Porch Shareholder Interest revenue was $109 million, up 29% year-over-year, and gross profit was $91 million for an 83% gross margin. Adjusted EBITDA was $20 million, representing an 18% margin, according to Ehrlichman.
CFO Shawn Tabak said the quarter exceeded expectations across RWP, revenue, gross profit, and adjusted EBITDA. Insurance Services drove the quarter, with Tabak noting that the segment benefited from new customer additions, continued agency expansion, rising quote volumes, and improved quote-to-bind conversion.
- Insurance Services: $75 million revenue (up 50% year-over-year), $64 million gross profit (85% gross margin), and $27 million adjusted EBITDA (37% margin).
- Software and Data: $22 million revenue, $17 million gross profit (75% gross margin), and $4.6 million adjusted EBITDA, with results “relatively flat year-over-year” amid “near cyclical trough” housing activity.
- Consumer Services: $15 million revenue (slightly higher year-over-year), $13 million gross profit (87% gross margin), and approximately breakeven adjusted EBITDA.
Tabak also pointed to a year-over-year margin comparison that was affected by prior reinsurance terms. He said Q1 2025 was the final quarter that benefited from legacy captive reinsurance terms by $16 million, making it a “tough comp.”
Insurance growth engine: capacity, distribution, and conversion
Management highlighted the insurance “growth engine” as a combination of capacity, top-of-funnel expansion, and improved conversion, alongside what it described as strong underwriting performance.
Ehrlichman said statutory surplus—described as the key capacity guidepost—was $165 million in Q1, up 59% or $61 million year-over-year. He said that level of surplus supports “north of $800 million in premiums,” above Porch’s $600 million RWP target for 2026. Including “incremental non-admitted assets of a little north of $100 million,” the reciprocal could support “more than $1.25 billion of premium,” he said.
On reinsurance, Ehrlichman said the reciprocal completed an April 1 renewal with “a panel of 40-plus A-rated partners” and would benefit from an “approximately 20% decline in costs for excess of loss reinsurance,” which he attributed to strong underwriting results and improved risk performance.
In distribution, producing agency branch locations increased 181% year-over-year in Q1, while quote volumes grew 69% year-over-year and improved sequentially for the sixth straight quarter, Ehrlichman said.
On conversion, Ehrlichman said actions beginning in November contributed to a step-up starting in Q4, with year-over-year conversion rates “almost doubled.” He added that premium per new customer declined only 5% year-over-year during the period.
COO Matthew Neagle said reciprocal policies written were nearly 48,000 in Q1, up 33% year-over-year. RWP per policy written was $2,386, down year-over-year “largely a function of mix shift, not competition or price,” as new customers represented a larger portion of the total. He reiterated that premium per new customer was down only 5% year-over-year, while new customer RWP was “3 times higher versus the prior year.”
Underwriting performance and loss ratio commentary
During the question-and-answer session, Ehrlichman provided loss ratio detail for the quarter, saying gross loss ratio in Q1 was 24% and attritional loss ratio (excluding catastrophic weather) was 19%. He said the company was among “the top handful” of performers nationally and in Texas and characterized its results as consistent across several years compared with peers that may see more volatility.
Ehrlichman also referenced AM Best 2025 annual market share data, stating the reciprocal ranked top quartile nationally and in Texas for combined ratios. He noted that combined ratios include fees paid to Porch as part of reciprocal expenses and pointed to Insurance Services’ 2025 adjusted EBITDA-to-RWP margin of 21% as evidence of the broader margin structure.
Guidance raised; housing markets still a headwind for non-insurance segments
Tabak said Porch maintained its 2026 target of $600 million in organic RWP, which represents 25% year-over-year growth. However, the company raised its 2026 Porch Shareholder Interest guidance for revenue, gross profit, and adjusted EBITDA based on Insurance Services strength.
- Revenue: raised to $495 million–$507 million (20% year-over-year growth at the midpoint), up 400 basis points versus prior guidance.
- Gross profit: raised to $401 million–$413 million (81% gross margin at the midpoint).
- Adjusted EBITDA: raised to $103 million–$109 million (21% adjusted EBITDA margin at the midpoint).
From a modeling standpoint, Tabak said the company continues to assume “trough-like” U.S. housing conditions, with “flattish year-over-year results” expected in Software and Data and Consumer Services. Neagle added that Software and Data is largely priced per transaction and should see average revenue per company rise as transaction volumes recover, while Moving Group within Consumer Services would see a tailwind in transaction count as housing activity improves.
Balance sheet, repurchases, and product updates
Porch ended Q1 with cash plus investments of $134 million, up $13 million from December 31, 2025, Tabak said. Porch Shareholder Interest cash flow from operations was $20 million in the quarter, though Tabak noted cash flow timing is seasonal due to interest payments on notes in the second and fourth quarters.
Tabak said the company exhausted its board-authorized share repurchase program in March, repurchasing 334,000 shares for $2.5 million at an average of $7.48 per share, which he described as the maximum amount allowed by the 2028 notes indenture. He added that the 2026 notes have a remaining balance of $7.8 million, which Porch expects to settle at maturity on Sept. 15, 2026 with balance sheet cash.
On product, Ehrlichman and Neagle discussed the early rollout of Porch Insurance in Texas. Ehrlichman said Porch Insurance is designed to be “give or take 10% higher” in all-in price than the Homeowners of America product, with added consumer value such as a warranty and moving services, as well as higher commissions for agencies. Neagle said agents have shown “a lot of excitement,” highlighting the warranty attachment, free moving services and a moving concierge, and the “premium commission” structure, while noting the product should ramp over time as the book builds.
Neagle also addressed Home Factors, saying Porch is using it internally and sees impact in results. Externally, he said there is an “active and increasing pipeline” of carriers testing the product and seeing ROI, though the company expects contracting and revenue to take time due to testing and procurement cycles. He reiterated expectations for a “modest early-stage revenue contribution in 2026” that should build over time.
In closing remarks, Ehrlichman said the company is seeing momentum because “capacity, distribution, conversion are all moving in concert” and reiterated Porch’s goal of scaling rapidly while maintaining underwriting performance. “We’ve built the foundation, and now we scale profitably and fast,” he said.
About Porch Group NASDAQ: PRCH
Porch Group, Inc operates a technology-driven home services platform designed to connect homeowners with professional contractors, maintenance providers and home improvement specialists. Through its online marketplace and proprietary software solutions, Porch enables users to research, compare and book services ranging from home repairs and remodeling to maintenance and renovations. The company's platform integrates detailed provider profiles, customer reviews and real-time appointment scheduling to streamline the process of sourcing and managing home projects.
In addition to its core marketplace, Porch offers software products tailored for service professionals.
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