Porch Group Reports Fourth Quarter 2025 Results

Porch Group Reports Fourth Quarter 2025 Results February 11, 2026 Strong Q4 Performance Caps Off a Successful First Year Under Reciprocal Model Porch Group, Inc. (“Porch,” “the Company,” “we,” “our,” “us”) (NASDAQ: PRCH), a new kind of homeowners insurance company, today reported fourth quarter and full-year results through December 31, 2025, that exceeded our expectations. Porch generated for shareholders1 fourth quarter 2025 revenue of $112.3 million. Net loss attributable to Porch was $(3.5) million, and Adjusted EBITDA was $23.5 million. In January 2025, the Porch Reciprocal Exchange (“Reciprocal”) was formed as an insurance entity owned by its policyholder-members and not by Porch. While Porch does not own the Reciprocal, it is consolidated for reporting purposes. This earnings release references results generated for Porch shareholders (“Porch Shareholder Interest”), which includes the businesses Porch shareholders own: Insurance Services, Software & Data, and Consumer Services segments, along with corporate functions. This earnings release also includes consolidated results which is Porch Shareholder Interest plus the Reciprocal Segment. The following table presents unaudited financial highlights for Porch Shareholder Interest and consolidated fourth quarter 2025 results ($ in millions). Three Months Ended December 31, 2025 Insurance Services Software & Data Consumer Services Corporate2 Porch Shareholder Interest1 Reciprocal Eliminations Consolidated Revenue $ 75.7 $ 22.3 $ 16.6 $ (2.4 ) $ 112.3 $ 53.2 $ (41.1 ) $ 124.3 Growth n/a 3 % 2 % n/a n/a 24 % Gross Profit 65.1 14.4 14.2 (2.4 ) 91.4 43.4 (39.0 ) 95.7 Growth3 6 % 11 % Gross Margin 86 % 65 % 85 % n/a 81 % 77 % Net income (loss) (3.5 ) 7.8 — 4.3 Adjusted EBITDA (Loss) 29.0 3.7 1.0 (10.2 ) 23.5 Adjusted EBITDA (Loss) Margin4 38 % 16 % 6 % n/a 21 % Cash Flow from Operations5 $ (5.5 ) $ 6.7 $ 1.2 CEO Summary “Porch had a pivotal year in 2025. We executed our transition to a simpler commission‑ and fee‑based model, delivered outperformance each quarter, and translated that progress into strong cash generation for our shareholders and statutory surplus growth for the Reciprocal. Entering 2026, we’re positioned to further scale Reciprocal Written Premium. Our confidence is reflected in our 2026 Porch Shareholder Interest outlook, which includes $98 million to $105 million of Adjusted EBITDA6 and a target of $600 million of Reciprocal Written Premium7, which would represent 25% year‑over‑year organic growth. We are seeing strong performance across our insurance business from adding new agencies, increasing quote volumes, improving conversion, and the launch of Porch Insurance to add a fundamentally differentiated product for customers. The Reciprocal’s 2025 gross loss ratio of 27% continues to be best-in-class, supported by our unique property data and underwriting,” said Matt Ehrlichman, Chief Executive Officer, Chairman and Founder. Fourth Quarter 2025 Operational Highlights Top-of-funnel momentum continued with Q4 2025 active agencies and quotes each rising >100% from Q4 2024.Following targeted actions starting in November, RWP from new customers in November and December accelerated 61% and 104%, respectively, compared to the January 2025 to October 2025 monthly average.Q4 2025 statutory surplus at the Reciprocal of $155.1 million, increased $49.4 million from Q4 2024. Q4 2025 surplus combined with non-admitted assets of $289.4 million, increased $131.4 million from Q4 2024. 1 “Porch Shareholder Interest” includes the businesses Porch shareholders own: Insurance Services, Software & Data, and Consumer Services segments, along with corporate functions. 2 Corporate includes corporate costs and eliminations relating to intersegment transactions for Revenue and Gross Profit. 3 Porch Shareholder Interest Gross Profit of $91.4 million in Q4 2025 increased 6% or $5.0 million compared to Q4 2024 consolidated Gross Profit of $86.3 million. 4 Adjusted EBITDA (Loss) Margin is calculated as Adjusted EBITDA (Loss) divided by Revenue. 5 Cash Flow from Operations represents net cash provided by or used in operating activities. See details in the unaudited Supplemental Cash Flow Information section of this release. 6 Porch is not providing a reconciliation of expected Porch Shareholder Interest Adjusted EBITDA for future periods. See “Porch Shareholder Interest Full Year 2026 Financial Outlook" in this release for further details. 7 Porch provides guidance and targets for future periods based on current market conditions, assumptions, and expectations as of the date of this release. Actual results may vary due to a number of factors, and there is no guarantee that we will be able to achieve these results. The following table presents the Company’s key performance indicators (“KPIs”). Definitions are on page 13 of this release. Three Months Ended December 31, Year Ended December 31, 2025 2025 Insurance Services KPIs Reciprocal Written Premium (“RWP”) (in millions) $ 125.7 $ 480.9 Reciprocal Policies Written (in thousands) 49 175 RWP per Policy Written (unrounded) $ 2,569 $ 2,755 Adjusted EBITDA % of RWP1 23 % 21 % Software & Data KPIs Average Number of Companies (in thousands) 23.3 23.8 Annualized Average Revenue per Company (unrounded) $ 3,833 $ 3,897 Consumer Services KPIs Monetized Services (in thousands) 77.5 220.2 Average Revenue per Monetized Service (unrounded) $ 215 $ 311 Balance Sheet Information (unaudited) The following table provides the components of cash and cash equivalents, restricted cash and cash equivalents, and investments of Porch Shareholder Interest. (in millions) December 31, 2025 December 31, 2024 Cash and cash equivalents of Porch Shareholder Interest $ 44.7 $ 46.5 Short-term investments of Porch Shareholder Interest 12.6 1.6 Long-term investments of Porch Shareholder Interest 55.4 13.5 Unrestricted cash, cash equivalents, and investments of Porch Shareholder Interest 112.7 61.6 Restricted cash and cash equivalents of Porch Shareholder Interest 8.5 28.2 All cash, cash equivalents, investments, and restricted cash and cash equivalents of Porch Shareholder Interest $ 121.2 $ 89.9 At December 31, 2025, Porch Shareholder Interest cash, cash equivalents, restricted cash and cash equivalents, and investments was $121.2 million. The increase from December 31, 2024, was driven by Porch Shareholder Interest Cash Flow from Operations of $65.4 million2, primarily from Adjusted EBITDA of $76.6 million and favorable working capital. Porch used $68.0 million of cash to repurchase a portion of the 0.75% Convertible Senior Unsecured Notes due September 2026 (the “2026 Notes”) during the year ended December 31, 2025, including $51.0 million of cash proceeds from the issuance of the 9.00% Convertible Senior Unsecured Notes due May 2030 (the “2030 Notes”). Porch also holds $106 million surplus notes from the Reciprocal, which are eliminated in consolidation. The surplus notes bear interest of SOFR +9.75%. As of December 31, 2025, outstanding principal for convertible debt was $475.1 million. This includes $134.0 million of the 2030 Notes, $333.3 million of the 6.75% Convertible Senior Secured Notes due October 2028 (the “2028 Notes”), and $7.8 million of the 2026 Notes, which management expects to settle at maturity on September 15, 2026. In the fourth quarter, net cash used in operating activities for Porch shareholders was $(5.5) million and included cash interest paid on our convertible notes, which is due twice per year in Q4 and Q2. The Company’s Board of Directors has authorized the Company to repurchase its common stock this year, up to an aggregate amount not to exceed $2.5 million. This is the maximum annual amount permitted under the 2028 Notes indenture. 1 Adjusted EBITDA % of RWP is Insurance Services Adjusted EBITDA divided by RWP. Insurance Services Adjusted EBITDA is a non-GAAP financial measure. Please refer to “Non-GAAP Financial Measures” section for further details. 2 Porch Shareholder Interest Cash Flow from Operations is consistent with and also referred to as Porch Shareholder Interest Net Cash Provided by Operating Activities. Porch Shareholder Interest Full Year 2026 Financial Outlook Financial guidance represents Porch Shareholder Interest, the businesses owned by Porch(1), and does not include the future results of the Reciprocal which is owned by its policyholder-members and not by Porch. Porch Shareholder Interest full year 2026 guidance is as follows: Porch Shareholder Interest 2026 Guidance YoY growth range Revenue(2) $475m to $490m (2025: $419m) 13% to 17% Gross Profit(2) $385m to $400m (2025: $344m) 12% to 16% Adjusted EBITDA(2) $98m to $105m (2025: $77m) 28% to 37% (1) Results in this earnings release reference results generated for Porch shareholders (“Porch Shareholder Interest”), which includes the Insurance Services, Software & Data, and Consumer Services segments, along with corporate functions. These are the businesses which Porch owns. (2) Porch Shareholder Interest Revenue, Gross Profit and Adjusted EBITDA are non-GAAP measures. Porch provides full year 2026 guidance based on current market conditions, assumptions, and expectations as of the date of this release. Actual results may vary due to a number of factors, and there is no guarantee that we will be able to achieve these results. Porch is not providing reconciliations of Porch Shareholder Interest expected Revenue, Gross Profit or Adjusted EBITDA for future periods to the most directly comparable measures prepared in accordance with GAAP because the Company is unable to provide these reconciliations without unreasonable effort because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of the Company’s control. Conference Call Porch management will host a conference call today February 11, 2026, at 5:00 p.m. Eastern time (2:00 p.m. Pacific time). The call will be accompanied by a slide presentation available on the Investor Relations section of the Company’s website at ir.porchgroup.com. A question-and-answer session will follow management’s prepared remarks. All are invited to listen to the event by registering for the webinar, a replay of the webinar will also be available. See the Investor Relations section of the Porch’s corporate website at ir.porchgroup.com. About Porch Group Porch Group, Inc. (“Porch”) is a new kind of homeowners insurance company. Porch's strategy to win in homeowners insurance is to deploy leading vertical software solutions in select home-related industries, provide the best services for homebuyers including important moving services, leverage unique data for advantaged underwriting, and provide more protection for policyholders. To learn more about Porch, visit ir.porchgroup.com. Forward-Looking Statements Certain statements in this release are considered forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management. Although we believe that our plans, intentions, and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions, or expectations. Forward-looking statements are inherently subject to risks, uncertainties, and assumptions. Generally, statements that are not historical facts, including statements concerning our financial outlook and guidance, possible or assumed future actions, business strategies, events, or results of operations, are forward-looking statements. These statements may be preceded by, followed by, or include the words “believe,” “estimate,” “expect,” “project,” “forecast,” “may,” “will,” “should,” “seek,” “plan,” “scheduled,” “anticipate,” “intend,” or similar expressions. Forward-looking statements are not guarantees of performance. You should not put undue reliance on these statements which speak only as of the date hereof. You should understand that the following important factors, among others, could affect our future results and could cause those results or other outcomes to differ materially from those expressed or implied in our forward-looking statements: expansion plans and opportunities, and managing growth, to build a consumer brand;the incidence, frequency, and severity of weather events, extensive wildfires, and other catastrophes;economic conditions, especially those affecting the housing, insurance, and financial markets;expectations regarding revenue, cost of revenue, operating expenses, and the ability to achieve and maintain future profitability;existing and developing federal and state laws and regulations, including with respect to insurance, warranty, privacy, information security, data protection, and taxation, and management’s interpretation of and compliance with such laws and regulations;the structure, availability, and performance of Porch Reciprocal Exchange (the “Reciprocal”)’s and Homeowners of America (“HOA”)’s reinsurance programs to protect against loss and maintain their financial stability ratings and a healthy surplus, the success of which are dependent on a number of factors outside management’s control;the possibility that a decline in our share price would result in a negative impact to the Reciprocal’s surplus position and may require further financial support to enable the Reciprocal to meet applicable regulatory requirements and maintain financial stability rating;uncertainties related to regulatory approval of insurance rates, policy forms, insurance products, license applications, acquisitions of businesses, or strategic initiative, and other matters within the purview of insurance regulators (including the discount associated with the shares contributed to HOA that were subsequently transferred to the Reciprocal in connection with the closing of the sale of HOA to the Reciprocal);the ability of the Company and its affiliates to successfully operate and manage the Reciprocal and our ability to successfully operate our businesses alongside a reciprocal exchange;our ability to implement our plans, forecasts and other expectations with respect to the Reciprocal and to realize expected synergies and/or convert policyholders from our existing insurance carrier business into policyholders of the Reciprocal;reliance on strategic, proprietary relationships to provide us with access to personal data and product information, and the ability to use such data and information to increase transaction volume and attract and retain customers;the ability to develop new, or enhance existing, products, services, and features and bring them to market in a timely manner;changes in capital requirements, and the ability to access capital when needed to provide statutory surplus;our ability to timely repay our outstanding indebtedness;the increased costs and initiatives required to address new legal and regulatory requirements arising from developments related to cybersecurity, privacy, and data governance and the increased costs and initiatives to protect against data breaches, cyber-attacks, virus or malware attacks, or other infiltrations or incidents affecting system integrity, availability, and performance;retaining and attracting skilled and experienced employees;costs related to being a public company; andother risks and uncertainties discussed in Part II, Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2024, and in our subsequent reports filed with the Securities and Exchange Commission (“SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2025, to be filed with the SEC, as well as those discussed elsewhere in this earnings release, all of which are available on the SEC’s website at www.sec.gov. We caution you that the foregoing list may not contain all the risks to forward-looking statements made in this release. You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this release primarily on our current expectations and projections about future events and trends we believe may affect our business, financial condition, results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors, including those described above and elsewhere in this release. We disclaim any obligation to update publicly any forward-looking statements, whether in response to new information, future events, or otherwise, except as required by applicable law. Revisions to Previously Reported Quarterly Financial Information The Company updated the presentation of quarterly financial information for the second and third quarters of 2025 related to the elimination of certain intercompany transactions between the Reciprocal and Porch. These revisions increase revenue and selling and marketing expense equally on a consolidated basis, and their impacts have grossed-up total assets and liabilities, all of which are reflected in the full year and quarter-to-date financial information in this release. The revisions for the second and third quarters of 2025 will be included in our upcoming 10-K. The revisions had no impact on Porch Shareholder Interest and do not impact consolidated Net Income or Net Loss Attributable to Porch. Non-GAAP Financial Measures This release includes non-GAAP financial measures, such as Adjusted EBITDA (Loss), Adjusted EBITDA (Loss) Margin, and certain amounts related to Porch Shareholder Interest. Our management uses these non-GAAP financial measures as supplemental measures of our operating and financial performance, for internal budgeting and forecasting purposes, to evaluate financial and strategic planning matters, and to establish certain performance goals for incentive programs. We believe that the use of these non-GAAP financial measures provides investors with useful information to evaluate our operating and financial performance and trends and in comparing our financial results with competitors, other similar companies and companies across different industries, many of which present similar non-GAAP financial measures to investors. However, our definitions and methodology in calculating these non-GAAP measures may not be comparable to those used by other companies. In addition, we may modify the presentation of these non-GAAP financial measures in the future, and any such modification may be material. You should not consider these non-GAAP financial measures in isolation, as a substitute to or superior to financial performance measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude specified income and expenses, some of which may be significant or material, that are required by GAAP to be recorded in our consolidated financial statements. We may also incur future income or expenses similar to those excluded from these non-GAAP financial measures, and the presentation of these measures should not be construed as an inference that future results will be unaffected by unusual or non-recurring items. In addition, these non-GAAP financial measures reflect the exercise of management judgment about which income and expenses are included or excluded in determining these non-GAAP financial measures. You should review the tables accompanying this release for reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure. We are not providing reconciliations of non-GAAP financial measures for future periods to the most directly comparable measures prepared in accordance with GAAP. We are unable to provide these reconciliations without unreasonable effort because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of our control. Unaudited Three Months Ended December 31, 2025 (dollar amounts in thousands) Insurance Services Software & Data Consumer Services Corporate Eliminations(1) Porch Shareholder Interest Subtotal(2) Reciprocal Segment Eliminations Related to Reciprocal Segment(3) Consolidated Revenue $ 75,685 $ 22,288 $ 16,636 $ — $ (2,356 ) $ 112,253 $ 53,175 $ (41,124 ) $ 124,304 Cost of revenue 10,542 7,883 2,466 — (1 ) 20,890 9,762 (2,082 ) 28,570 Gross Profit 65,143 14,405 14,170 — (2,355 ) 91,363 43,413 (39,042 ) 95,734 Gross Margin 86 % 65 % 85 % — % 100 % 81 % 82 % 95 % 77 % Less: Operating expenses: Selling and marketing 35,560 8,787 10,029 290 (2,355 ) 52,311 4,934 (20,209 ) 37,036 Product and technology 2,781 4,768 1,160 4,245 — 12,954 707 — 13,661 General and administrative(4) 5,299 2,426 3,372 14,477 — 25,574 21,844 (18,833 ) 28,585 Operating income (loss) (19,012 ) — 524 15,928 — 16,452 Other expense (income) (5,656 ) (2 ) (106 ) 9,388 — 3,624 1,232 — 4,856 Income (loss) before income taxes (28,400 ) — (3,100 ) 14,696 — 11,596 Income tax benefit (provision) (378 ) — (378 ) (6,901 ) — (7,279 ) Net income (loss) $ (28,778 ) $ — $ (3,478 ) $ 7,795 $ — 4,317 Less: Net income attributable to the Reciprocal 7,795 Net loss attributable to Porch $ (3,478 ) Adjusted EBITDA (Loss) Reconciliation: Net income (loss) $ (28,778 ) $ (3,478 ) $ 4,317 Less Reconciling items: Net income attributable to the Reciprocal — 7,795 Depreciation and amortization (107 ) (4,752 ) (889 ) (474 ) — (6,222 ) (6,222 ) Stock-based compensation expense (1,542 ) (359 ) (488 ) (6,472 ) — (8,861 ) (8,861 ) Interest expense — (1 ) (10 ) (14,291 ) — (14,302 ) (14,302 ) Income tax provision — — — (378 ) — (378 ) (378 ) Mark-to-market gains (losses) — — 8 3,623 — 3,631 3,631 Other gains and losses (164 ) (123 ) 82 (628 ) — (833 ) (833 ) Adjusted EBITDA (Loss)(5) $ 28,972 $ 3,661 $ 1,012 $ (10,158 ) $ 23,487 $ 23,487 (1) The “Eliminations” column represents eliminations of transactions between the Insurance Services segment, Software & Data segment, Consumer Services segment, and Corporate. (2) The “Porch Shareholder Interest Subtotal” column represents non-GAAP measures that are used by management to evaluate performance. “Porch Shareholder Interest” includes the Insurance Services, Software & Data, and Consumer Services segments as well as Corporate expenses and applicable intercompany eliminations. (3) The “Eliminations Related to Reciprocal Segment” column represents eliminations of transactions between the Reciprocal Segment and other segments or Corporate. (4) Includes $1.8 million provision for doubtful accounts on a consolidated basis. (5) Adjusted EBITDA (Loss) is a non-GAAP measure for the “Corporate,” “Porch Shareholder Interest Subtotal,” and “Consolidated” columns. See Adjusted EBITDA (Loss) sub-section for definition. Unaudited Three Months Ended December 31, 2024 (dollar amounts in thousands) Insurance Services Software & Data Consumer Services Corporate Eliminations(1) Subtotal Reciprocal Segment Eliminations Related to Reciprocal Segment(2) Consolidated Revenue $ 38,486 $ 21,731 $ 16,293 $ — $ (1,210 ) $ 75,300 $ 36,703 $ (11,642 ) $ 100,361 Cost of revenue 4,708 6,419 3,148 — (4 ) 14,271 1,464 (1,710 ) 14,025 Gross Profit 33,778 15,312 13,145 — (1,206 ) 61,029 35,239 (9,932 ) 86,336 Gross Margin 88 % 70 % 81 % — % 100 % 81 % 96 % 85 % 86 % Less: Operating expenses: Selling and marketing 12,413 9,608 8,221 462 (257 ) 30,447 7,980 (9,932 ) 28,495 Product and technology 112 3,502 1,171 4,535 (949 ) 8,371 1,861 — 10,232 General and administrative(3) 1,717 3,109 (436 ) 15,624 — 20,014 2,515 — 22,529 Operating income (loss) (20,621 ) — 2,197 22,883 — 25,080 Other expense (income) (1,511 ) (3 ) (188 ) (4,835 ) — (6,537 ) (291 ) — (6,828 ) Income (loss) before income taxes (15,786 ) — 8,734 23,174 — 31,908 Income tax benefit (provision) (1,434 ) — (1,434 ) — — (1,434 ) Net income (loss) $ (17,220 ) $ — $ 7,300 $ 23,174 $ — $ 30,474 Adjusted EBITDA (Loss) Reconciliation: Net income (loss) $ (17,220 ) $ 7,300 $ 30,474 Less: Reconciling items: Depreciation and amortization (972 ) (4,262 ) (895 ) (820 ) — (6,949 ) (5 ) — (6,954 ) Stock-based compensation expense (193 ) (734 ) (393 ) (6,653 ) — (7,973 ) — — (7,973 ) Interest expense — — (3 ) (10,718 ) — (10,721 ) (2,025 ) 1,968 (10,778 ) Income tax provision — — — (1,434 ) — (1,434 ) — — (1,434 ) Mark-to-market gains (losses) — — 3,284 13,256 — 16,540 — — 16,540 Recoveries of Losses on Reinsurance Contracts — — — — — — — — — Other gains and losses 159 (79 ) 75 1,157 — 1,312 (68 ) (1,968 ) (724 ) Adjusted EBITDA (Loss)(4) $ 22,053 $ 4,171 $ 2,309 $ (12,008 ) $ 16,525 $ 41,797 (1) The “Eliminations” column represents eliminations of transactions between the Insurance Services segment, Software & Data segment, Consumer Services segment, and Corporate. (2) The “Eliminations Related to Reciprocal Segment” column represents eliminations of transactions between the Reciprocal Segment and other segments or Corporate. (3) Includes $0.2 million provision for doubtful accounts on a consolidated basis. (4) Adjusted EBITDA (Loss) is a non-GAAP measure for the “Corporate,” “Subtotal,” and “Consolidated” columns. See Adjusted EBITDA (Loss) sub-section for definition. Unaudited Year Ended December 31, 2025 (dollar amounts in thousands) Insurance Services Software & Data Consumer Services Corporate Eliminations(1) Porch Shareholder Interest Subtotal(2) Reciprocal Segment Eliminations Related to Reciprocal Segment(3) Consolidated Revenue $ 266,726 $ 92,935 $ 68,374 $ — $ (9,144 ) $ 418,891 $ 200,463 $ (136,940 ) $ 482,414 Cost of revenue 39,144 25,715 10,128 — (9 ) 74,978 71,416 (3,970 ) 142,424 Gross Profit 227,582 67,220 58,246 — (9,135 ) 343,913 129,047 (132,970 ) 339,990 Gross Margin 85 % 72 % 85 % — % 100 % 82 % 64 % 97 % 70 % Less: Operating expenses: Selling and marketing 123,831 37,015 41,936 1,578 (9,135 ) 195,225 20,876 (76,523 ) 139,578 Product and technology 10,354 18,545 4,582 16,849 — 50,330 2,987 — 53,317 General and administrative 19,936 8,741 9,698 54,442 — 92,817 68,830 (56,447 ) 105,200 Provision for doubtful accounts 200 1,380 2,543 — — 4,123 1,202 — 5,325 Operating income (loss) (72,869 ) — 1,418 35,152 — 36,570 Other expense (income) (21,343 ) (32 ) (418 ) 26,206 — 4,413 5,422 — 9,835 Income (loss) before income taxes (99,075 ) — (2,995 ) 29,730 — 26,735 Income tax benefit (provision) (366 ) — (366 ) (11,051 ) — (11,417 ) Net income (loss) $ (99,441 ) $ — $ (3,361 ) $ 18,679 $ — $ 15,318 Less: Net income attributable to the Reciprocal 18,679 Net loss attributable to Porch $ (3,361 ) Adjusted EBITDA (Loss) Reconciliation: Net income (loss) $ (99,441 ) $ (3,361 ) $ 15,318 Less Reconciling items: Net income attributable to the Reciprocal — 18,679 Depreciation and amortization (367 ) (14,592 ) (3,422 ) (2,236 ) — (20,617 ) (20,617 ) Stock-based compensation expense (4,443 ) (2,406 ) (1,735 ) (20,368 ) — (28,952 ) (28,952 ) Gain (loss) on extinguishment of debt — — — 395 — 395 395 Interest expense — (3 ) (9 ) (51,464 ) — (51,476 ) (51,476 ) Income tax provision — — — (366 ) $ — (366 ) (366 ) Mark-to-market gains (losses) — — 44 15,622 — 15,666 15,666 Recoveries of Losses on Reinsurance Contracts — — — 7,100 — 7,100 7,100 Other gains and losses (324 ) (330 ) 235 (1,296 ) — (1,715 ) (1,715 ) Adjusted EBITDA (Loss)(4) $ 99,738 $ 18,902 $ 4,792 $ (46,828 ) $ 76,604 $ 76,604 (1) The “Eliminations” column represents eliminations of transactions between the Insurance Services segment, Software & Data segment, Consumer Services segment, and Corporate. (2) The “Porch Shareholder Interest Subtotal” column represents non-GAAP measures that are used by management to evaluate performance. “Porch Shareholder Interest” includes the Insurance Services, Software & Data, and Consumer Services segments as well as Corporate expenses and applicable intercompany eliminations. (3) The “Eliminations Related to Reciprocal Segment” column represents eliminations of transactions between the Reciprocal Segment and other segments or Corporate. (4) Adjusted EBITDA (Loss) is a non-GAAP measure for the “Corporate,” “Porch Shareholder Interest Subtotal,” and “Consolidated” columns. See Adjusted EBITDA (Loss) sub-section for definition. Unaudited Year Ended December 31, 2024 (dollar amounts in thousands) Insurance Services Software & Data Consumer Services Corporate Eliminations(1) Subtotal Reciprocal Segment Eliminations Related to Reciprocal Segment(2) Consolidated Revenue $ 157,073 $ 89,167 $ 69,137 $ — $ (2,102 ) $ 313,275 $ 182,090 $ (57,517 ) $ 437,848 Cost of revenue 77,063 23,748 14,755 — (62 ) 115,504 134,850 (14,434 ) 235,920 Gross Profit 80,010 65,419 54,382 — (2,040 ) 197,771 47,240 (43,083 ) 201,928 Gross Margin 51 % 73 % 79 % — % 97 % 63 % 26 % 75 % 46 % Less: Operating expenses: Selling and marketing 52,571 40,147 33,896 2,109 (981 ) 127,742 38,214 (43,083 ) 122,873 Product and technology 221 16,662 4,265 20,504 (1,059 ) 40,593 7,545 — 48,138 General and administrative 6,827 13,111 8,541 56,964 — 85,443 9,806 — 95,249 Provision for doubtful accounts — 1,189 520 — — 1,709 (1,470 ) — 239 Operating income (loss) (79,577 ) — (57,716 ) (6,855 ) — (64,571 ) Other expense (income) (14,968 ) (14,948 ) (305 ) 205 — (30,016 ) (3,843 ) — (33,859 ) Income (loss) before income taxes (79,782 ) — (27,700 ) (3,012 ) — (30,712 ) Income tax benefit (provision) (2,117 ) — (2,117 ) — — (2,117 ) Net income (loss) $ (81,899 ) $ — $ (29,817 ) $ (3,012 ) $ — $ (32,829 ) Adjusted EBITDA (Loss) Reconciliation: Net income (loss) $ (81,899 ) $ (29,817 ) $ (32,829 ) Less: Reconciling items: Depreciation and amortization (3,943 ) (15,498 ) (3,803 ) (2,255 ) — (25,499 ) (25,522 ) Stock-based compensation expense (1,199 ) (4,272 ) (1,993 ) (19,717 ) — (27,181 ) (27,181 ) Gain (loss) on extinguishment of debt — — — 27,436 — 27,436 27,436 Interest expense — 19 19 (42,685 ) — (42,647 ) (42,536 ) Income tax provision — — — (2,117 ) — (2,117 ) (2,117 ) Mark-to-market gains (losses) — (909 ) 4,350 6,560 — 10,001 10,001 Recoveries of Losses on Reinsurance Contracts 8,811 — — 3,331 — 12,142 12,142 Other gains and losses (122 ) 14,144 93 (157 ) — 13,958 7,777 Adjusted EBITDA (Loss)(3) $ 31,812 $ 15,774 $ 8,799 $ (52,295 ) $ 4,090 $ 7,171 (1) The “Eliminations” column represents eliminations of transactions between the Insurance Services segment, Software & Data segment, Consumer Services segment, and Corporate. (2) The “Eliminations Related to Reciprocal Segment” column represents eliminations of transactions between the Reciprocal Segment and other segments or Corporate. (3) Adjusted EBITDA (Loss) is a non-GAAP measure for the “Corporate,” “Subtotal,” and “Consolidated” columns. See Adjusted EBITDA (Loss) sub-section for definition. Adjusted EBITDA (Loss) We define Adjusted EBITDA (Loss) as net income (loss) adjusted for net income (loss) attributable to the Reciprocal; interest expense; income taxes; depreciation and amortization; gain or loss on extinguishment of debt; other expense; other income; impairments of intangible assets and goodwill; gain or loss on reinsurance contract; impairments of property, equipment, and software; stock-based compensation expense; mark-to-market gains or losses recognized on changes in the value of contingent consideration arrangements, unexercised warrants, and derivatives; restructuring and other costs; acquisition and other transaction costs; and non-cash bonus expense. Adjusted EBITDA (Loss) Margin is defined as Adjusted EBITDA (Loss) divided by revenue. Adjusted EBITDA % of RWP is defined as Insurance Services Adjusted EBITDA divided by RWP. The following table reconciles Net income (loss) to Adjusted EBITDA (Loss) and Net income (loss) as a percentage of Porch Shareholder Interest Revenue to Adjusted EBITDA (Loss) Margin for the periods presented (dollar amounts in thousands): Unaudited Three Months Ended December 31, 2025 Year Ended December 31, 2025 Amount Margin Amount Margin Net income (loss) $ 4,317 4 % $ 15,318 4 % Net loss (income) attributable to the Reciprocal (7,795 ) (7 )% (18,679 ) (4 )% Interest expense 14,302 13 % 51,476 12 % Income tax provision 378 — % 366 — % Depreciation and amortization 6,222 6 % 20,617 5 % Gain on extinguishment of debt — — % (395 ) — % Other income, net (108 ) — % (7,483 ) (2 )% Stock-based compensation expense 8,861 8 % 28,952 7 % Mark-to-market gains (3,631 ) (3 )% (15,666 ) (4 )% Restructuring and other costs 792 1 % 1,761 — % Acquisition and other transaction costs 149 — % 337 — % Adjusted EBITDA (Loss) $ 23,487 21 % $ 76,604 18 % Porch Shareholder Interest Revenue $ 112,253 100 % $ 418,891 100 % Our segment operating and financial performance measures are Gross Profit and Adjusted EBITDA (Loss) for the Insurance Services, Software & Data, and Consumer Services segments. Adjusted EBITDA (Loss) is defined as Gross Profit less the following expenses associated with each segment: selling and marketing, product and technology, and general and administrative. Adjusted EBITDA (Loss) also excludes non-cash items or items that management does not consider reflective of ongoing core operations, such as depreciation, amortization, and stock-based compensation expense. Adjusted EBITDA (Loss) Margin for each segment is defined as Adjusted EBITDA (Loss) for the segment divided by the segment’s revenue. The following table reconciles Gross Margin to Adjusted EBITDA (Loss) Margin for the Insurance Services, Software & Data, and Consumer Services segments. Unaudited Three Months Ended December 31, 2025 Insurance Services Software & Data Consumer Services Gross Margin 86.1 % 64.6 % 85.2 % Selling and marketing (47.0 )% (39.4 )% (60.3 )% Product and technology (3.7 )% (21.4 )% (7.0 )% General and administrative (7.0 )% (10.9 )% (20.3 )% Other income (expense) 7.5 % — % 0.6 % Add: Reconciling items: Depreciation and amortization 0.1 % 21.3 % 5.3 % Stock-based compensation expense 2.0 % 1.6 % 2.9 % Interest expense — % — % 0.1 % Other gains and losses 0.3 % 0.6 % (0.3 )% Adjusted EBITDA Margin 38.3 % 16.4 % 6.1 % The impact of corporate expenses on Adjusted EBITDA (Loss) is also a non-GAAP financial measure. Reconciliations of these non-GAAP financial measures to the nearest GAAP measure are included in the preceding tables Porch Shareholder Interest Certain amounts related to Porch Shareholder Interest are non-GAAP financial measures. We define Porch Shareholder Interest as the Insurance Services, Software & Data, and Consumer Services segments, together with corporate expenses. The operating results of these segments comprise “Net loss attributable to Porch” in our unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Reconciliations of the following non-GAAP financial measures to the nearest GAAP measure are included in the tables within this section: Porch Shareholder Interest Adjusted EBITDA (Loss)Porch Shareholder Interest Cost of RevenuePorch Shareholder Interest Depreciation and AmortizationPorch Shareholder Interest General and AdministrativePorch Shareholder Interest Gross MarginPorch Shareholder Interest Gross ProfitPorch Shareholder Interest Income (Loss) Before Income TaxesPorch Shareholder Interest Income Tax Benefit (Provision)Porch Shareholder Interest Interest ExpensePorch Shareholder Interest Mark-to-Market Losses (Gains)Porch Shareholder Interest Operating Income (Loss)Porch Shareholder Interest Other Expense (Income)Porch Shareholder Interest Other Gains and LossesPorch Shareholder Interest Product and TechnologyPorch Shareholder Interest Provision for Doubtful AccountsPorch Shareholder Interest RevenuePorch Shareholder Interest Selling and MarketingPorch Shareholder Interest Stock-based Compensation Expense Reconciliations of the following non-GAAP financial measures to the nearest GAAP measure are included in the Supplemental Cash Flow Information section. Porch Shareholder Interest net cash provided by (used in) financing activitiesPorch Shareholder Interest net cash provided by (used in) investing activitiesPorch Shareholder Interest net cash provided by (used in) operating activities Key Performance Indicators In the management of these businesses, we identify, measure and evaluate various operating metrics. The key performance measures and operating metrics used in managing the businesses are discussed below. These key performance measures and operating metrics are not prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and may not be comparable to or calculated in the same way as other similarly titled measures and metrics used by other companies. Insurance Services Reciprocal Written Premium (“RWP”) — We define RWP as the total premium written by the Reciprocal for the face value of one year’s premium gross of cancellations, plus surplus contributions and policy fees, and before deductions for reinsurance in the period. RWP excludes the impact of cancellations and premiums ceded to reinsurers and includes surplus contributions and policy fees, and, therefore, should not be used as a substitute for revenue. We use RWP to manage the business because we believe it represents the business volume generated by associated customer acquisition activities and is reflective of the competitive market position when evaluated on a per written policy basis and is a key driver of both Porch and the Reciprocal’s growth and profit opportunities. Reciprocal Policies Written — We define Reciprocal Policies Written as the number of new and renewal insurance policies written during the period by the Reciprocal Segment. RWP per Policy Written — We define RWP per Policy Written as the RWP in the period, which is reflective of the total amount a policyholder is expected to pay, divided by the Reciprocal Policies Written in the period. Software & Data Average Number of Companies — We define Average Number of Companies as the average number of companies during the period across all of our Software & Data segment. This only includes the number of companies in our Software & Data segment. Annualized Average Revenue per Company — We define Annualized Average Revenue per Company as the revenue generated across the Software & Data segment in the period over the Average Number of Companies in the period, which is then annualized (for example, for a given quarter, multiplied by 4). Consumer Services Monetized Services — We define Monetized Services as the total number of services from which we generated revenue, including, but not limited to, new and renewing warranty policies, completed moving jobs, sold security, TV/Internet or other home projects, measured over the period. This only includes services from Consumer Services segment and does not include insurance policies sold. Average Revenue per Monetized Service — We define Average Revenue per Monetized Service as total Consumer Services segment revenue generated in the period over the number of Monetized Services. Change in Key Performance Indicator Effective beginning with the quarter ended September 30, 2025, we updated the definition of an operational metric, RWP, to include surplus contributions to the Reciprocal and policy fees. Management believes the revised definition reflects the total amount the policyholder is expected to pay and provides better insight to management. The primary reason for the change was the then-anticipated launch of the Porch Insurance product, where policyholders will pay a 10% surplus contribution in addition to traditional premium and fees. The updated definition ensures RWP aligns the operating metric with the full economic payment expected from the policyholder. The change in calculation methodology and updated definition did not result in a significant or material difference to the reported figures as compared to the definition utilized in prior quarters. PORCH GROUP, INC. Condensed Consolidated Balance Sheets (Unaudited) (all numbers in thousands) December 31, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents $ 44,676 $ 167,643 Accounts receivable, net 11,307 19,106 Short-term investments 12,616 24,099 Reinsurance balance due — 92,303 Prepaid expenses 6,440 8,391 Deferred policy acquisition costs — 17,542 Restricted cash and cash equivalents 8,503 29,139 Other current assets 4,666 6,904 Total current assets 88,208 365,127 Property, equipment, and software, net 27,607 22,542 Goodwill 191,907 191,907 Long-term investments 55,412 158,652 Intangible assets, net 30,492 68,746 Other assets 6,541 6,994 Assets of Reciprocal: (1 ) Cash and cash equivalents, including restricted 115,932 — Accounts receivable, net 9,054 — Short-term investments 7,664 — Reinsurance balance due 37,653 — Prepaid expenses and other current assets 3,945 — Deferred policy acquisition costs 26,707 — Intangible assets, net 23,319 — Long-term investments 172,978 — Other assets 4 — Total assets $ 797,423 $ 813,968 (1) Porch Reciprocal Exchange (the “Reciprocal”) is a consolidated variable interest entity not owned by Porch Group, Inc. PORCH GROUP, INC. Condensed Consolidated Balance Sheets (Unaudited) - Continued (all numbers in thousands) December 31, 2025 December 31, 2024 Liabilities and Stockholders' Equity (Deficit) Current liabilities Accounts payable $ 4,046 $ 4,538 Accrued expenses and other current liabilities 38,877 41,245 Deferred revenue 4,552 248,669 Refundable customer deposits 12,535 12,629 Current debt 7,772 150 Losses and loss adjustment expense reserves — 67,785 Other insurance liabilities, current — 39,140 Total current liabilities 67,782 414,156 Long-term debt 385,060 403,788 Other liabilities 14,987 39,249 Liabilities of Reciprocal: (1 ) Accounts payable and other current liabilities 13,838 — Deferred revenue 219,559 — Losses and loss adjustment expense reserves 49,159 — Other insurance liabilities, current 23,834 — Other liabilities 818 — Total liabilities 775,037 857,193 Stockholders' equity (deficit) Common stock, $0.0001 par value per share: 11 10 Additional paid-in capital 622,996 717,066 Accumulated other comprehensive income (loss) 642 (5,446 ) Accumulated deficit (648,268 ) (754,855 ) Porch stockholders' deficit (24,619 ) (43,225 ) Noncontrolling interest related to the Reciprocal 47,005 — Total stockholders' equity (deficit) 22,386 (43,225 ) Total liabilities and stockholders' equity (deficit) $ 797,423 $ 813,968 (1) The Reciprocal is a consolidated variable interest entity not owned by Porch Group, Inc. PORCH GROUP, INC. Condensed Consolidated Statements of Operations (Unaudited) (all numbers in thousands except per share amounts) Three Months Ended December 31, Year Ended December 31, 2025 2024 2025 2024 Revenue $ 124,304 $ 100,361 $ 482,414 $ 437,848 Cost of revenue 28,570 14,025 142,424 235,920 Gross profit 95,734 86,336 339,990 201,928 Operating expenses: Selling and marketing 37,036 28,495 139,578 122,873 Product and technology 13,661 10,232 53,317 48,138 General and administrative 28,585 22,529 110,525 95,488 Total operating expenses 79,282 61,256 303,420 266,499 Operating income (loss) 16,452 25,080 36,570 (64,571 ) Other income (expense): Interest expense (14,307 ) (10,778 ) (51,572 ) (42,536 ) Change in fair value of private warrant liability 5,299 (385 ) (4,013 ) 691 Change in fair value of derivatives (1,676 ) 13,641 19,635 5,869 Gain on extinguishment of debt — — 395 27,436 Investment income and realized gains and losses, net of investment expenses 3,207 2,740 11,671 13,697 Other income, net 2,621 1,610 14,049 28,702 Total other income (expense) (4,856 ) 6,828 (9,835 ) 33,859 Income (loss) before income taxes 11,596 31,908 26,735 (30,712 ) Income tax provision (7,279 ) (1,434 ) (11,417 ) (2,117 ) Net income (loss) 4,317 30,474 $ 15,318 $ (32,829 ) Less: Net income attributable to the Reciprocal 7,795 — 18,679 — Net income (loss) attributable to Porch $ (3,478 ) $ 30,474 (3,361 ) (32,829 ) Earnings Per Share - Basic Net income (loss) attributable to Porch per share - basic $ (0.03 ) $ 0.30 $ (0.03 ) $ (0.33 ) Weighted average shares outstanding used to compute net loss attributable to Porch per share - basic 105,539 101,179 103,688 99,585 Earnings Per Share - Diluted Net income (loss) attributable to Porch per share - diluted $ (0.03 ) $ 0.22 $ (0.03 ) $ (0.33 ) Weighted average shares outstanding used to compute net loss attributable to Porch per share - diluted 105,539 125,868 103,688 99,585 The following tables summarize Porch Shareholder Interest results. Three Months Ended December 31, 2025 2024 Change Porch Shareholder Interest Revenue (1 ) $ 112,253 $ 75,300 $ 36,953 Porch Shareholder Interest Gross Profit (1 ) 91,363 61,029 30,334 Porch Shareholder Interest Adjusted EBITDA (Loss) (1 ) 23,487 16,525 6,962 Year Ended December 31, 2025 2024 Change Porch Shareholder Interest Revenue (1 ) $ 418,891 $ 313,275 $ 105,616 Porch Shareholder Interest Gross Profit (1 ) $ 343,913 $ 197,771 $ 146,142 Porch Shareholder Interest Adjusted EBITDA (Loss) (1 ) $ 76,604 $ 4,090 $ 72,514 (1) Porch Shareholder Interest Revenue, Gross Profit, and Adjusted EBITDA (Loss) are non-GAAP measures. For the three months and year ended December 31, 2025, 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. PORCH GROUP, INC. Supplemental Cash Flow Information (Unaudited) (all numbers in thousands) The following tables provide further detail of cash flows of Porch and cash flows of the Reciprocal Segment for the three and twelve months ended December 31, 2025. Three Months Ended December 31, 2025 Consolidated Reciprocal Segment Eliminations Porch Shareholder Interest(1) Net cash provided by (used in) operating activities $ 1,201 $ 6,688 $ — $ (5,487 ) Cash flows from investing activities: Purchases of property and equipment and capitalized software development costs (3,486 ) — — (3,486 ) Maturities, sales, (purchases) of investments, net (19,024 ) (1,991 ) — (17,033 ) Net cash provided by (used in) investing activities (22,510 ) (1,991 ) — (20,519 ) Cash flows from financing activities: Other financing activities (2,376 ) — — (2,376 ) Net cash provided by (used in) financing activities (2,376 ) — — (2,376 ) Net change in cash and cash equivalents & restricted cash and cash equivalents (23,685 ) 4,697 — (28,382 ) Cash and cash equivalents & restricted cash and cash equivalents, beginning of period 192,796 111,235 — 81,561 Cash and cash equivalents & restricted cash and cash equivalents, end of period $ 169,111 $ 115,932 $ — $ 53,179 Year Ended December 31, 2025 Consolidated Reciprocal Segment Eliminations Porch Shareholder Interest(1) Net cash provided by (used in) operating activities $ 66,419 $ 992 $ — $ 65,427 Cash flows from investing activities: Purchases of property and equipment and capitalized software development costs (14,361 ) (6 ) — (14,355 ) Maturities, sales, (purchases) of investments, net (58,777 ) (7,066 ) — (51,711 ) Proceeds from sale of business 1,217 — — 1,217 Issuance of surplus note to Reciprocal — — 46,813 (46,813 ) Sale of HOA to the Reciprocal — (46,813 ) — 46,813 Net cash provided by (used in) investing activities (71,921 ) (53,885 ) 46,813 (64,849 ) Cash flows from financing activities: Proceeds from surplus note with Porch — 46,813 (46,813 ) — Proceeds from debt issuance 51,000 — — 51,000 Repayments of principal (68,164 ) — — (68,164 ) Other financing activities (5,005 ) — — (5,005 ) Net cash provided by (used in) financing activities (22,169 ) 46,813 (46,813 ) (22,169 ) Net change in cash and cash equivalents & restricted cash and cash equivalents (27,671 ) (6,080 ) — (21,591 ) Cash and cash equivalents & restricted cash and cash equivalents, beginning of period 196,782 122,012 — 74,770 Cash and cash equivalents & restricted cash and cash equivalents, end of period $ 169,111 $ 115,932 $ — $ 53,179 Source: Porch Group, Inc.