Key Highlights

  • Shares are trading 26.99% higher at $20.70 on Thursday, October 29, 2026.
  • Third-quarter revenue grew 13% to $143.9 million, and net income was $9.0 million against a $1.0 million loss.
  • Adjusted EBITDA excluding Reciprocal leapt 116% to $44.5 million from $20.6 million.
  • Full-year adjusted EBITDA guidance moved up to $135 million to $140 million from $119 million to $125 million.
  • The Allied Trust agency and captive purchase is priced at $95 million, with closing expected in the first quarter of 2027.

Porch Share Surge: Did the Higher 2026 Outlook Power the 27% Gain?

Porch Group (NASDAQ:PRCH) shares are trading 26.99% higher at $20.70 on Thursday, October 29, 2026, an implied prior close of about $16.30 (calculated). The move comes after third-quarter results released on Wednesday, October 28.

Porch operates three segments: Insurance Services, Software and Data, and Consumer Services. It also consolidates the Reciprocal, an insurance exchange it does not own.

Consolidated revenue of $143.9 million was up 13%, and operating income was $18.1 million against $16.3 million. Net income was $9.0 million versus a loss of $1.0 million, and diluted EPS attributable to Porch was $0.10 against a loss of $0.10.

Insurance Services Segment: Why Did Margins Expand So Quickly?

Insurance Services revenue grew 39% to $102.8 million, and gross profit reached $91.2 million, an 89% margin compared with 84%. Segment adjusted EBITDA was $50.1 million at a 49% margin, versus $25.3 million and 34%.

Reciprocal written premium rose 17% to $161.0 million, while policies written surged 42% to 67.5 thousand. Premium per policy declined 17% to $2,384.

Agency branch locations expanded 114% and quote volumes 79%. Insurance Services adjusted EBITDA reached 31% of written premium, up from 18%.

Software and Consumer Services Segments: What Is Pulling Revenue Down?

Software and Data revenue slipped 9% to $22.3 million as average companies served fell 22% to 18.5 thousand, partly cushioned by 17% higher annualized revenue per company at $4,840.

Consumer Services revenue eased 5% to $18.3 million, with monetized services down 11% to 83.7 thousand. Adjusted EBITDA was $3.2 million.

The Reciprocal itself recorded a net loss of $3.2 million against net income of $9.9 million, as its gross margin narrowed to 64% from 78%.

Allied Trust Acquisition: How Is the $95 Million Purchase Financed?

Porch will buy Allied Trust's managing general agency and captive reinsurance entity for $95 million, composed of $75 million in cash and about $20 million in Porch shares.

Separately, the Reciprocal will acquire the Allied Trust carrier for a $55 million cash base price plus $50 million of deferred consideration over 12 months, payable in cash or Porch shares. The carrier is expected to carry about $60 million of statutory surplus at closing.

Porch unrestricted cash and investments climbed to $157.6 million from $119.2 million at June 30. Convertible debt principal was $467.3 million, comprising $333.3 million of 6.75% notes due 2028 and $134.0 million of 9.00% notes due 2030.

What to Watch Next: Allied Trust Closings and Delivery on the Guidance

Both Allied Trust transactions are expected to close in the first quarter of 2027, no earlier than Friday, January 1, 2027. Full-year revenue excluding the Reciprocal is guided to $518 million to $523 million, up from $506 million to $517 million, with gross profit of $438 million to $443 million. The release offers no fourth-quarter guidance and does not mention share repurchases.