$PRCH

Porch Group, Inc.

CIK:0001784535|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue	$ 140,882	$ 126,077	$ 262,005	$ 230,822
Cost of revenue	53,302	43,422	83,577	82,719
Gross profit	87,580	82,655	178,428	148,103
Operating expenses:
Selling and marketing	41,332	33,640	81,396	63,156
Product and technology	14,676	13,076	27,707	26,277
General and administrative	35,685	30,890	61,623	54,887
Operating income (loss)	(4,113)	5,049	7,702	3,783
Other income (expense):
Interest expense	(14,775)	(12,056)	(29,381)	(23,302)
Change in fair value of private warrant liability	0	(2,878)	0	(3,610)
Change in fair value of derivatives	860	12,853	2,627	19,526
Gain on extinguishment of debt	0	34	0	34
Investment income and realized gains and losses, net of investment expenses	3,151	2,665	6,549	5,475
Other income, net	1,312	1,493	2,679	9,893
Total other income (expense)	(9,452)	2,111	(17,526)	8,016
Income (loss) before income taxes	(13,565)	7,160	(9,824)	11,799
Income tax benefit (expense)	(585)	1,087	(2,390)	184
Net income (loss)	(14,150)	8,247	(12,214)	11,983
Less: Net income (loss) attributable to the Reciprocal	(19,753)	5,668	(13,104)	1,009
Net income attributable to Porch	$ 5,603	$ 2,579	$ 890	$ 10,974
Earnings Per Share - Basic
Net income attributable to Porch per share - basic (in usd per share)	$ 0.05	$ 0.03	$ 0.01	$ 0.11
Weighted average shares outstanding used to compute net income attributable to Porch per share - basic (in shares)	111,087	103,160	108,594	102,435
Earnings Per Share - Diluted
Net income attributable to Porch per share - diluted (in usd per share)	$ 0.05	$ 0	$ 0.01	$ 0.10
Weighted average shares outstanding used to compute net income attributable to Porch per share - diluted (in shares)	120,741	131,679	116,888	114,741
Comprehensive Income
Net income (loss)	$ (14,150)	$ 8,247	$ (12,214)	$ 11,983
Other comprehensive income (loss):
Change in net unrealized loss, net of tax	(948)	1,081	(3,859)	3,691
Comprehensive income (loss)	(15,098)	9,328	(16,073)	15,674
Less: Comprehensive income (loss) attributable to the Reciprocal	(20,492)	6,735	(15,796)	4,458
Comprehensive income (loss) attributable to Porch	$ 5,394	$ 2,593	$ (277)	$ 11,216

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income (loss)	$ (12,214)	$ 11,983
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation and amortization	15,603	11,411
Provision for doubtful accounts	2,688	2,768
Gain on extinguishment of debt	0	(34)
Change in fair value of private warrant liability	0	3,610
Change in fair value of derivatives	(2,627)	(19,526)
Stock-based compensation	15,145	12,910
Non-cash interest expense	21,509	17,515
Other operating activities	(1,995)	(829)
Change in operating assets and liabilities, net of acquisitions and divestitures
Accounts receivable	(7,770)	(2,039)
Reinsurance balance due	29,600	46,760
Deferred policy acquisition costs	(10,023)	7,939
Prepaid expenses and other current assets	(5,523)	(14,397)
Accounts payable	(1,130)	(336)
Accrued expenses and other current liabilities	(17,680)	(4,440)
Losses and loss adjustment expense reserves	11,949	283
Other insurance liabilities, current	7,721	(9,182)
Deferred revenue	7,173	(40,230)
Refundable customer deposits	(1,681)	869
Other assets and liabilities, net	3,544	(644)
Net cash provided by operating activities	54,289	24,391
Cash flows from investing activities:
Purchases of property and equipment	(548)	(271)
Capitalized internal use software development costs	(8,320)	(6,756)
Purchases of short-term and long-term investments	(62,788)	(75,423)
Maturities, sales of short-term and long-term investments	45,941	57,181
Net cash used in investing activities	(25,715)	(25,269)
Cash flows from financing activities:
Proceeds from issuance of debt	0	51,000
Repayments of principal	0	(55,858)
Cash paid for debt issuance costs	0	(2,206)
Repurchase of stock	(2,511)	0
Other financing activities	430	(947)
Net cash used in financing activities	(2,081)	(8,011)
Net change in cash, cash equivalents, and restricted cash and cash equivalents	26,493	(8,889)
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period	169,111	196,782
Cash, cash equivalents, and restricted cash and cash equivalents at end of period	195,604	187,893
Supplemental schedule of non-cash investing and financing activities
Non-cash reduction of convertible notes, net	0	14,514
Non-cash additions of internally developed software	671	0
Supplemental disclosures
Cash paid for interest	17,328	12,021
Income taxes paid	$ 13,249	$ 349

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands

Jun. 30, 2026

Dec. 31, 2025

Current assets

Prepaid expenses

$ 4,827

$ 6,440

Restricted cash and cash equivalents

7,562

8,503

Other current assets

7,744

4,666

Total current assets

93,481

88,208

Property, equipment, and software, net

29,933

27,607

Goodwill

191,907

Cash and cash equivalents, including restricted

195,604

169,111

Total assets

818,992

797,423

Current liabilities

Accounts payable

2,602

4,046

Accrued expenses and other current liabilities

39,064

38,877

Deferred revenue

4,261

4,552

Refundable customer deposits

10,854

12,535

Current debt

7,792

7,772

Total current liabilities

64,573

67,782

Long-term debt

397,491

385,060

Other liabilities

11,435

14,987

Total liabilities

799,616

775,037

Commitments and contingencies (Note 16)

Redeemable noncontrolling interest related to the Reciprocal

Stockholders' equity

Common stock, $0.0001 par value per share

Additional paid-in capital

638,558

622,996

Accumulated other comprehensive income (loss)

(525)

642

Accumulated deficit

(649,889)

(648,268)

Porch stockholders' deficit

(11,845)

(24,619)

Noncontrolling interest related to the Reciprocal

31,211

47,005

Total stockholders' equity

19,366

22,386

Total liabilities, redeemable noncontrolling interest, and stockholders' equity

818,992

797,423

Consolidated Entity, Excluding Consolidated VIE

Current assets

Cash and cash equivalents

54,140

44,676

Accounts receivable, net

14,177

11,307

Short-term investments

5,031

12,616

Restricted cash and cash equivalents

7,562

8,503

Long-term investments

60,091

55,412

Intangible assets, net

21,688

30,492

Other assets

7,252

6,541

Variable Interest Entity, Primary Beneficiary

Current assets

Cash and cash equivalents

133,321

115,373

Accounts receivable, net

^[1]

11,419

9,054

Short-term investments

^[1]

25,386

7,664

Restricted cash and cash equivalents

581

559

Long-term investments

^[1]

171,702

172,978

Intangible assets, net

^[1]

21,394

23,319

Other assets

^[1]

Cash and cash equivalents, including restricted

^[1]

133,902

115,932

Reinsurance balance due

^[1]

7,899

37,653

Prepaid expenses and other current assets

^[1]

6,137

3,945

Deferred policy acquisition costs

^[1]

36,730

26,707

Current liabilities

Other liabilities

^[2]

854

818

Accounts payable and other current liabilities

^[2]

5,366

13,838

Deferred revenue

^[2]

227,234

219,559

Losses and loss adjustment expense reserves

^[2]

61,108

49,159

Other insurance liabilities, current

^[2]

31,555

23,834

Redeemable noncontrolling interest related to the Reciprocal

$ 10

$ 0

[1]	Porch Reciprocal Exchange (the “Reciprocal”) is a consolidated variable interest entity not owned by Porch Group, Inc. (see Note 3 in the unaudited Notes to Condensed Consolidated Financial Statements).
[2]	The Reciprocal is a consolidated variable interest entity not owned by Porch Group, Inc. (see Note 3 in the unaudited Notes to Condensed Consolidated Financial Statements)