Porch Group Raises 2026 Outlook As Insurance Services Revenue Climbs 39% In Third Quarter

Porch Group, Inc. (NASDAQ: PRCH), a homeowners insurance company, announced on October 28, 2026 third quarter revenue of $143.9 million, up 13% from a year earlier. The company also raised its full-year 2026 outlook for Porch-owned segments and shared early 2027 targets that include its pending acquisition of Allied Trust.

Third Quarter Results

Revenue from Porch-owned segments, which exclude the Porch Reciprocal Exchange, rose 22% to $140.8 million. Insurance Services led the way, with revenue up 39% to $102.8 million. In contrast, Software and Data revenue slipped to $22.3 million from $24.6 million, and Consumer Services revenue declined to $18.3 million from $19.4 million.

Profitability improved sharply. Adjusted EBITDA excluding the Reciprocal more than doubled to $44.5 million from $20.6 million, and net income attributable to Porch reached $12.2 million, or $0.10 per diluted share. By comparison, the company reported a loss of $0.10 per share in the third quarter of 2025.

Meanwhile, the Reciprocal wrote $161.0 million in premium, up 17%, and its policies written grew 42% to about 67,500. That growth rate accelerated from 38% in the second quarter. In addition, quote volumes rose 79%, and statutory surplus at the Reciprocal reached $174.4 million, up $22 million from a year earlier. “Porch continues to execute at a high level,” said Matt Ehrlichman, Chief Executive Officer, Chairman and Founder of Porch.

Raised Full-Year Guidance and Balance Sheet

Porch now expects 2026 revenue of $518 million to $523 million for its Porch-owned segments, up from a prior range of $506 million to $517 million. It also raised its gross profit outlook to $438 million to $443 million from $419 million to $429 million.

Most notably, the company lifted its adjusted EBITDA outlook to $135 million to $140 million from $119 million to $125 million, which represents growth of 76% to 83% over 2025. The guidance does not include the Reciprocal, which its policyholder-members own.

As of September 30, Porch held $157.6 million in unrestricted cash and investments. During the quarter, it repaid $7.8 million of convertible notes that came due in September. As a result, outstanding convertible debt principal stood at $467.3 million, made up of $134.0 million of 9.00% notes due 2030 and $333.3 million of 6.75% secured notes due 2028.

Allied Trust and the 2027 Targets

On October 13, Porch agreed to acquire Allied Trust, a regional homeowners insurer that operates in Louisiana, Texas, South Carolina and North Carolina. Louisiana accounted for nearly half of Allied Trust’s 2025 premiums and would be a new state for the Reciprocal.

Under the agreement, the Reciprocal will buy the insurance carrier for $55 million in cash plus $50 million in deferred payments over 12 months, payable in cash or PRCH shares. Separately, Porch will buy the managing general agency and a captive reinsurance entity for $95 million, consisting of $75 million in cash and about $20 million in PRCH shares. Porch expects that price to equal less than four times the adjusted EBITDA it gains in the first full year after closing.

In that first full year, Porch expects the deal to add about $200 million in written premium and about $25 million in adjusted EBITDA. Looking ahead, the company set internal 2027 targets of more than $900 million in Reciprocal written premium, more than 360,000 Reciprocal policies written and more than $180 million in adjusted EBITDA, assuming a full year of Allied Trust. However, the deal still requires regulatory approvals, and Porch expects it to close in the first quarter of 2027. “Allied Trust is expected to strengthen an already compelling growth profile and position Porch for a meaningful step forward in 2027,” Ehrlichman said.

Strategic Investment Summary

• Revenue Growth: Porch Group, Inc. (NASDAQ: PRCH) reported third quarter 2026 revenue of $143.9 million on October 28, 2026, up 13% year over year.
• Insurance Services: Insurance Services revenue rose 39% to $102.8 million, while Reciprocal policies written grew 42%.
• Profitability: Adjusted EBITDA excluding the Reciprocal more than doubled to $44.5 million, and net income attributable to Porch reached $12.2 million.
• Guidance Raised: Porch now expects 2026 adjusted EBITDA of $135 million to $140 million, up from $119 million to $125 million.
• Allied Trust: The pending acquisition is expected to add about $200 million in written premium and about $25 million in adjusted EBITDA in its first full year.
• 2027 Targets: Internal 2027 targets include more than $900 million in Reciprocal written premium and more than $180 million in adjusted EBITDA, assuming a full year of Allied Trust.

Find out more about the latest corporate developments and financial reports at the Porch Group investor portal.

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