Free cash flow turned positive at $36.1M (25.6% margin) in 2026Q2, with cumulative operating cash flow of $128.0M over ten quarters far exceeding cumulative net income of -$27.5M, indicating improving cash conversion despite working capital volatility.
Porch Group, Inc. (PRCH) cash flow statement — 8-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Cash from Operations | 96.32M | 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 % | 565.62% | 309.64% | -193.38% | 291.3% | 49% | 28.54% | -65.91% | 3.88% | - |
| Net Income | -5.65M | -3.36M | -32.83M | -133.93M | -156.56M | -106.61M | -54.03M | -103.32M | -49.92M |
| Depreciation & Amortization | 28.66M | 20.62M | 25.52M | 24.41M | 27.93M | 16.7M | 6.64M | 7.38M | 5.46M |
| Stock-Based Compensation | 31.19M | 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 | 57.65M | 38.44M | -23.56M | 33.87M | 46.97M | 69.31M | 3.92M | 17.43M | 613K |
| Working Capital Changes | -12.3M | -18.23M | -28M | 88.87M | 37.16M | -16.04M | -16.5M | 13.17M | 8.15M |
| Change in Receivables | -58.75M | 48.07M | -155K | 180.47M | -75.53M | -18.25M | -3.16M | -1.84M | -226K |
| Change in Inventory | 764K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 52.61M | -162K | -4.22M | 2.49M | -697K | -11.78M | 4.09M | 2.36M | 0 |
| Cash from Investing | -72.37M | -71.92M | -45.06M | -56.25M | -79.68M | -263.43M | -10.67M | -5.21M | -7.55M |
| Capital Expenditures | -5.5M | -14.36M | -523K | -851K | -2.35M | -4.69M | -279K | -478K | -761K |
| CapEx % of Revenue | 1.09% | 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 | -10.71M | -89.56M | -1.4M | -9.24M | -8.1M | 0 | -2.6M | -4.1M | -4.11M |
| Cash from Financing | -16.24M | -22.17M | -23.71M | 90.95M | 1.23M | 415.55M | 259.61M | 34.49M | 35.75M |
| Debt Issued (Net) | -12.31M | -17.16M | -23.37M | 106.52M | 9.85M | 366.57M | -15.45M | 31.1M | 0 |
| Equity Issued (Net) | -2.51M | 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 | -2.51M | 0 | 0 | -5.61M | -1.81M | 0 | -42K | 0 | -250K |
| Other Financing | -1.42M | -5M | -339K | -9.96M | -6.81M | -82.05M | 300.39M | 114K | 35.75M |
| Net Change in Cash | 7.71M | -143.6M | -100.45M | 68.63M | -96.19M | 116.84M | 200.27M | -57K | -2.32M |
| Free Cash Flow | 83.67M | 52.06M | -32.2M | 23.83M | -28.19M | -39.47M | -51.55M | -33.91M | -31.28M |
| FCF Margin % | 16.59% | 10.79% | -7.36% | 5.54% | -10.21% | -20.51% | -71.3% | -43.7% | -57.78% |
| FCF Growth % | 14305.43% | 261.65% | -235.13% | 184.56% | 28.59% | 23.44% | -52.02% | -8.4% | - |
| FCF per Share | 0.72 | 0.50 | -0.32 | 0.25 | -0.29 | -0.42 | -0.63 | -1.57 | -1.62 |
| FCF Conversion (FCF/Net Income) | -14.81x | 4.34x | 0.97x | -0.25x | 0.11x | 0.33x | 0.90x | 0.28x | 0.61x |
| Interest Paid | 85K | 0 | 23.76M | 0 | 3.51M | 0 | 9.1M | 3.47M | 0 |
| Taxes Paid | 102K | 562K | 621K | 0 | 674K | 0 | 0 | 0 | 0 |
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.
Key Metrics
Top Statement Risk
Housing market and reinsurance exposure
Metrics are mathematically derived from official filings.
Cash Conversion Volatility Masks Underlying Improvement
Porch's operating cash flow swung from -$26.6M in 2024Q4 to $41.3M in 2026Q2, per reported figures, with OCF/NI reaching 7.37x in the latest quarter, suggesting earnings quality is improving but remains erratic.
The gap between net income and operating cash flow has been highly variable, with OCF/NI ranging from -3.76x in 2025Q3 to 13.79x in 2025Q2. This volatility likely stems from insurance loss reserve adjustments and working capital swings, as evidenced by the large WC changes in 2024Q4 (-$54.8M) and 2025Q1 (-$32.6M). The recent positive net income quarters appear to be supported by cash generation, but the inconsistency warrants monitoring.
Free Cash Flow Inflection Point Emerging
FCF turned positive in 2026Q2 at $36.1M, a 25.6% margin, per financial statements, after negative FCF in 2024Q4 and 2025Q1, indicating a potential inflection toward sustainable cash generation.
The FCF trajectory shows a clear improvement from -$30.5M in 2024Q4 to +$36.1M in 2026Q2, with FCF margins expanding from -30.4% to 25.6%. This aligns with the prior income statement analysis noting a turning point in 2024Q2. However, the sustainability is questionable given the housing market headwinds and reinsurance cost pressures, which could reverse this trend.
Minimal Capital Expenditure Reflects Asset-Light Model
CapEx averaged just 0.1% of revenue over the last ten quarters, per reported data, indicating a highly asset-light business model where capital intensity is minimal and FCF is largely driven by working capital and operating leverage.
With CapEx/Rev consistently below 0.2% (except 2024Q3 at 4.7%), Porch's capital requirements are negligible, typical of a software-led platform. This suggests that any FCF weakness is not due to heavy investment but rather operational cash flow volatility. The low capex also implies that growth is funded through working capital and acquisitions, which may increase balance sheet risk.
Working Capital Swings Dictate Cash Flow Timing
Working capital changes swung from -$54.8M in 2024Q4 to +$17.1M in 2025Q2, per financial statements, indicating that insurance-related receivables and payables are the primary drivers of quarterly cash flow variability.
The large WC fluctuations, particularly in insurance-heavy quarters, suggest that the timing of premium collections and claim payments significantly impacts operating cash flow. For instance, 2024Q4's negative WC change coincided with a net income of $30.5M but negative OCF, highlighting the disconnect between accrual earnings and cash. Investors should monitor the efficiency of collections and payables management, as these swings could mask underlying profitability.
Capital Deployment Focused on Acquisitions, Not Returns
Porch has not paid dividends or executed significant buybacks, with only $2.5M in buybacks in 2026Q1, per reported data, while acquisition-related cash flows have been sporadic, indicating a strategy of reinvesting in vertical integration.
The absence of shareholder returns and the presence of acquisition cash flows (e.g., $10.3M in 2024Q1, -$10.9M in 2024Q3) suggest management prioritizes M&A to build its data moat. This aligns with the company's history of aggressive acquisitions. However, the lack of buybacks or dividends may disappoint income-focused investors, and the reliance on M&A increases integration risk.
Cumulative Earnings vs Cash: A Narrowing Gap
Over the last ten quarters, cumulative net income is -$27.5M while cumulative operating cash flow is $128.0M, per reported figures, indicating that cash generation has far exceeded accrual earnings, a positive divergence that may reflect conservative accounting.
The cumulative OCF of $128.0M versus net income of -$27.5M suggests that Porch's cash generation is stronger than GAAP earnings imply, likely due to non-cash charges like D&A and SBC, as well as favorable working capital timing. This divergence may indicate that the company is building cash reserves despite reporting losses, which could support future investments or debt reduction. However, the sustainability of this gap depends on the insurance segment's underwriting performance.
What the Cash Flow Statement Obscures
Porch's cash flow statement obscures the impact of stock-based compensation, which totaled $7.9M in 2026Q2, per reported data, and the distinction between restricted and available cash, potentially overstating operational cash generation.
While SBC is added back in operating cash flow, it represents a real economic cost to shareholders, and the cumulative SBC over the last ten quarters is approximately $71.4M, which is not reflected in the cash flow from operations. Additionally, the $53M in cash and equivalents may include restricted cash for insurance regulatory purposes, limiting its deployability. Investors should adjust for these factors when assessing true cash generation and liquidity.