Porch Group (PRCH) Q3 2026 Earnings Call: Guidance Raised as Policy Growth Reaches 42%
Source Tradingkey
Key Takeaways
- Reciprocal policies written increased 42% year over year to 68,000, while reciprocal written premium (RWP) rose 17% to $161 million.
- Adjusted EBITDA excluding the reciprocal more than doubled to $44 million, up 116% year over year. Net income attributable to Porch improved by $23 million to $12 million.
- Insurance Services revenue grew 39% to $103 million. Adjusted EBITDA rose 98% to $50 million, representing a 49% margin and the segment’s sixth consecutive Rule of 80 quarter.
- Porch raised its full-year 2026 guidance. The midpoint for adjusted EBITDA excluding the reciprocal increased to $138 million, implying 79% year-over-year growth.
- The proposed Allied Trust acquisition is expected to contribute approximately $25 million of adjusted EBITDA to Porch in the first full year after closing. Management expects the investment to be repaid through cash earnings within three years.
- Assuming a full year of Allied contributions, management’s initial 2027 combined-company targets include more than $900 million of RWP, over 360,000 reciprocal policies written and more than $180 million of adjusted EBITDA excluding the reciprocal.
Key Financial Data
| Metric | Q3 2026 | Change / Context |
|---|---|---|
| Consolidated GAAP revenue | $144 million | Up 13% year over year |
| Porch-owned segment revenue, excluding reciprocal | $141 million | Up 22% year over year |
| Adjusted EBITDA, excluding reciprocal | $44 million | Up 116% year over year |
| Net income attributable to Porch | $12 million | Improved by $23 million year over year |
| Insurance Services revenue | $103 million | Up 39% year over year |
| Insurance Services gross profit | $91 million | Up 46%; 89% gross margin |
| Insurance Services adjusted EBITDA | $50 million | Up 98%; 49% margin |
| Reciprocal written premium | $161 million | Up 17% year over year |
| Reciprocal policies written | 68,000 | Up 42% year over year |
| RWP per policy written | $2,384 | Lower year over year, primarily due to customer mix |
| Reciprocal gross loss ratio | 24% | Attritional loss ratio was 18% |
| Reciprocal statutory surplus | $174 million | Up $22 million year over year |
| Porch cash and investments | $165 million | Up $38 million sequentially |
| Reciprocal cash and investments | $333 million | At quarter-end |
| Net leverage | 2.4x | Within management’s 2x–3x target range |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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