Porch Group Q3 adjusted EBITDA more than doubles on insurance growth; raises outlook
Overview
US homeowners insurance firm's Q3 revenue rose 13% yr/yr, led by Insurance Services growth
Q3 adjusted EBITDA excluding Reciprocal more than doubled yr/yr
Company raised full-year revenue, gross profit, and adjusted EBITDA guidance
Outlook
Porch raises 2026 revenue guidance to $518 mln-$523 mln for Porch-Owned Segments
Company now sees 2026 gross profit of $438 mln-$443 mln for Porch-Owned Segments
Porch lifts 2026 adjusted EBITDA outlook to $135 mln-$140 mln for Porch-Owned Segments
Result Drivers
INSURANCE SERVICES GROWTH - Q3 results driven by 39% yr/yr revenue growth in Insurance Services and 42% yr/yr increase in Reciprocal Policies Written
DISTRIBUTION EXPANSION - Co said growth in agency branch locations and higher quote volumes contributed to increased policy sales
OPERATING LEVERAGE - Management attributed margin improvement to disciplined underwriting, use of proprietary data, and a largely fixed cost base
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Adjusted EBITDA (Excluding Reciprocal) | Beat | $44.50 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Porch Group, Inc. is $22.00, about 24.6% above its October 27 closing price of $17.66
The stock recently traded at 74 times the next 12-month earnings vs. a P/E of 179 three months ago
Reuters Recommended Reads
Oct 27 - Slide Insurance Q3 revenue, net income rise; lifts FY outlook
Oct 26 - Hartford Insurance Q3 core EPS beats estimates; dividend raised
Oct 28 - Aon reports 6% organic growth, Q3 earnings beat consensus
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)