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

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)