Key Highlights

  • Diluted EPS of USD 0.10 topped the consensus estimate of USD 0.01, versus a loss of USD 0.10 last year.
  • Revenue excluding reciprocal, about USD 141 million, topped the USD 134.65 million consensus estimate; GAAP Revenue reached USD 143.86 million.
  • Reciprocal policies written grew 42% to roughly 68 thousand, and Written Premium reached USD 161 million, up 17%.
  • Adjusted EBITDA excluding the reciprocal was USD 44 million, up 116%, and net Leverage fell to 2.4 times.

Porch Group, Inc. (NASDAQ:PRCH) reported third quarter 2026 Diluted Earnings per Share of USD 0.10, well above a consensus estimate of USD 0.01, compared with a loss of USD 0.10 in the prior year period. Net Income attributable to Porch was USD 12.19 million, a swing from a loss of USD 10.86 million a year earlier. Consolidated GAAP revenue was USD 143.86 million, up from USD 127.29 million, while revenue from the Porch owned segments, which leaves out the reciprocal, was about USD 141 million, above a consensus estimate of USD 134.65 million.

Insurance Services Carries the Quarter

Insurance services revenue grew 39% to roughly USD 103 million, with segment adjusted EBITDA of about USD 50 million, a 49% margin. Gross Margin in the segment was 89%. Software and data revenue was about USD 22 million, reflecting the exit from a low value product for small home service contractors, and consumer services revenue was about USD 18 million. Chief Executive Officer Matthew Ehrlichman described the results as proof that the organic growth system is working, pointing to quote Volume up 79% and producing agency branch locations up 114%.

On the reciprocal side, the gross loss ratio was 24% and the attritional loss ratio was 18%. Statutory surplus stood at USD 174 million, up USD 22 million from a year earlier. Premium per policy fell because new customers made up a larger share of policies written, although premium per new customer declined just 2%.

Raised Outlook and the Allied Trust Deal

The company raised the midpoint of each 2026 guidance measure. Revenue excluding the reciprocal is now guided to USD 518 million to USD 523 million, Gross Profit to USD 438 million to USD 443 million, and adjusted EBITDA excluding the reciprocal to USD 135 million to USD 140 million. Management continues to project positive net income attributable to Porch for the full year.

Porch also announced a pending Acquisition of Allied Trust Insurance Company and two affiliated entities. The reciprocal would pay about USD 105 million for the carrier, while Porch would pay about USD 95 million for the managing general agency and captive Reinsurance entities, including up to USD 20 million in stock. The company said the deal cannot close before January 1, 2027, and requires approvals including from the Texas Department of Insurance. Management shared an initial combined 2027 target of more than USD 900 million of written premium, more than 360 thousand policies and more than USD 180 million of adjusted EBITDA excluding the reciprocal.

Data Points to Follow Into 2027

Several figures frame the next reports. Fourth quarter policy growth is the first check, since management said conversion strengthened through October after the 42% third quarter gain. The Allied Trust closing, which the company places in the first quarter of 2027, is the second, along with the 2027 guidance scheduled for February.

Balance sheet markers also matter. Porch ended the quarter with USD 165 million of cash and investments, up USD 38 million from the second quarter, and net leverage of 2.4 times trailing adjusted EBITDA sits inside the 2 to 3 times target range. Reciprocal statutory surplus of USD 174 million, and the planned at the Market Share program, remain tied to premium capacity.