Free cash flow remains highly unpredictable, with margins oscillating between a negative 133.5% in 2023Q4 and a positive 31.3% in 2025Q3, reflecting significant liquidity sensitivity.
| Cash from Operations | 90.62M | 66.42M | -31.68M | 33.93M | -17.74M | -34.78M | -48.67M | -29.34M | -30.52M |
| Operating CF Margin % | - | 13.77% | -7.24% | 7.88% | -6.43% | -18.07% | -67.32% | -37.81% | -56.38% |
| Operating CF Growth % | 786.56% | 309.64% | -193.38% | 291.3% | 49% | 28.54% | -65.91% | 3.88% | - |
| Net Income | -8.67M | -3.36M | -32.83M | -133.93M | -156.56M | -106.61M | -54.03M | -103.32M | -49.92M |
| Depreciation & Amortization | 19.71M | 20.62M | 25.52M | 24.41M | 27.93M | 16.7M | 6.64M | 7.38M | 5.46M |
| Stock-Based Compensation | 31.32M | 28.95M | 27.18M | 20.71M | 27.04M | 0 | 11.3M | 35.97M | 5.17M |
| Deferred Taxes | 0 | 0 | 0 | 0 | -287K | 1.86M | 0 | 29K | 0 |
| Other Non-Cash Items | 39.94M | 38.44M | -23.56M | 33.87M | 46.97M | 69.31M | 3.92M | 17.43M | 613K |
| Working Capital Changes | -6.08M | -18.23M | -28M | 88.87M | 37.16M | -16.04M | -16.5M | 13.17M | 8.15M |
| Change in Receivables | 54.62M | 48.07M | -155K | 180.47M | -75.53M | -18.25M | -3.16M | -1.84M | -226K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 754K | -162K | -4.22M | 2.49M | -697K | -11.78M | 4.09M | 2.36M | 0 |
| Cash from Investing | -52.94M | -71.92M | -45.06M | -56.25M | -79.68M | -263.43M | -10.67M | -5.21M | -7.55M |
| Capital Expenditures | -14.47M | -14.36M | -523K | -851K | -2.35M | -4.69M | -279K | -478K | -761K |
| CapEx % of Revenue | 3% | 2.98% | 0.12% | 0.2% | 0.85% | 2.44% | 0.39% | 0.62% | 1.41% |
| Acquisitions | 1.22M | 1.22M | 0 | -1.97M | -38.63M | -256.43M | -7.79M | -634K | -2.68M |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | -19.3M | -89.56M | -1.4M | -9.24M | -8.1M | 0 | -2.6M | -4.1M | -4.11M |
| Cash from Financing | -24.33M | -22.17M | -23.71M | 90.95M | 1.23M | 415.55M | 259.61M | 34.49M | 35.75M |
| Debt Issued (Net) | -17.01M | -17.16M | -23.37M | 106.52M | 9.85M | 366.57M | -15.45M | 31.1M | 0 |
| Equity Issued (Net) | 0 | 0 | 0 | -5.61M | -1.81M | 131.03M | 4.67M | 3.27M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | -30M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -5.61M | -1.81M | 0 | -42K | 0 | -250K |
| Other Financing | -7.31M | -5M | -339K | -9.96M | -6.81M | -82.05M | 300.39M | 114K | 35.75M |
| Net Change in Cash | 8.65M | -143.6M | -100.45M | 68.63M | -96.19M | 116.84M | 200.27M | -57K | -2.32M |
| Free Cash Flow | 72.39M | 52.06M | -32.2M | 23.83M | -28.19M | -39.47M | -51.55M | -33.91M | -31.28M |
| FCF Margin % | 14.99% | 10.79% | -7.36% | 5.54% | -10.21% | -20.51% | -71.3% | -43.7% | -57.78% |
| FCF Growth % | 211.18% | 261.65% | -235.13% | 184.56% | 28.59% | 23.44% | -52.02% | -8.4% | - |
| FCF per Share | 0.68 | 0.50 | -0.32 | 0.25 | -0.29 | -0.42 | -0.63 | -1.57 | -1.62 |
| FCF Conversion (FCF/Net Income) | -8.35x | 4.34x | 0.97x | -0.25x | 0.11x | 0.33x | 0.90x | 0.28x | 0.61x |
| Interest Paid | 12.09M | 0 | 23.76M | 0 | 3.51M | 0 | 9.1M | 3.47M | 0 |
| Taxes Paid | 362K | 562K | 621K | 0 | 674K | 0 | 0 | 0 | 0 |
Insurance underwriting volatility
As reported in recent financial statements, Porch Group exhibits a highly erratic relationship between net income and operating cash flow, with OCF/NI ratios swinging from -3.76 to 13.79, suggesting that accounting earnings are frequently decoupled from the actual cash-generating capacity of the underlying business model.
The extreme volatility in the OCF/NI ratio indicates that non-cash adjustments and insurance-related accruals significantly distort the company's reported profitability. Investors should interpret these fluctuations as a sign that net income is an unreliable proxy for the firm's ability to generate sustainable liquidity.
Based on the provided cash flow data, Porch Group's free cash flow margins have demonstrated extreme instability, ranging from a negative 133.5% in 2023Q4 to a positive 31.3% in 2025Q3, highlighting the company's struggle to maintain consistent cash generation amidst its current operational and insurance-related challenges.
The wide variance in FCF margins suggests that the company's cash flow profile is highly sensitive to external shocks and internal working capital swings. This lack of predictability makes it difficult to ascertain a baseline level of cash generation, warranting further investigation into the sustainability of recent positive quarters.
According to historical cash flow filings, working capital changes have been a primary driver of liquidity fluctuations, with quarterly swings as large as negative $54.8 million, indicating that the company's cash position is heavily influenced by the timing of insurance premiums and operational payables management.
The significant magnitude of these working capital shifts suggests that the company's cash flow is prone to sudden, large-scale outflows that can quickly deplete available liquidity. This pattern appears to be a structural byproduct of the insurance segment's cash cycle, which may not align with the software business's more predictable billing.
Analysis of the company's cash flow statements reveals that stock-based compensation consistently consumes between $4.9 million and $8.9 million per quarter, which, when combined with insurance-related accruals, obscures the true cash-generating potential of the software segment for common shareholders.
The persistent reliance on stock-based compensation as a non-cash expense suggests that the company's reported cash flow from operations may be artificially bolstered relative to a cash-only compensation structure. Investors should monitor whether this reliance on equity-based incentives continues to dilute the economic value of the underlying cash flows.
Quick answers to the most common questions about buying PRCH stock.
Porch Group, Inc. (PRCH) generated $66.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Porch Group, Inc. (PRCH) generated $52.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Porch Group, Inc. (PRCH) spent $14.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.