Gross margins exhibit extreme instability, fluctuating from a low of 15.2% in 2024Q2 to a peak of 89.0% in 2024Q4 due to insurance loss adjustments.
| Sales/Revenue | 482.8M | 482.41M | 437.85M | 430.3M | 275.95M | 192.43M | 72.3M | 77.59M | 54.14M |
| Revenue Growth % | 13.03% | 10.18% | 1.75% | 55.94% | 43.4% | 166.16% | -6.83% | 43.33% | - |
| Cost of Goods Sold | 133.4M | 142.42M | 225.63M | 220.24M | 107.58M | 58.73M | 17.56M | 21.5M | 15.34M |
| COGS % of Revenue | - | 29.52% | 51.53% | 51.18% | 38.98% | 30.52% | 24.29% | 27.71% | 28.33% |
| Gross Profit | 349.4M | 339.99M | 212.22M | 210.06M | 168.37M | 133.71M | 54.74M | 56.09M | 38.8M |
| Gross Margin % | 72.37% | 70.48% | 48.47% | 48.82% | 61.02% | 69.48% | 75.71% | 72.29% | 71.67% |
| Gross Profit Growth % | - | 60.21% | 1.03% | 24.76% | 25.92% | 144.27% | -2.42% | 44.57% | - |
| Operating Expenses | 299.75M | 303.42M | 276.79M | 400.41M | 345.42M | 217.07M | 96.97M | 144.22M | 85.57M |
| OpEx % of Revenue | - | 62.9% | 63.22% | 93.05% | 125.17% | 112.8% | 134.12% | 185.86% | 158.06% |
| Selling, General & Admin | 246.6M | 250.1M | 221.28M | 247.5M | 223.66M | 169.01M | 69.86M | 108.23M | 63.88M |
| SG&A % of Revenue | - | 51.84% | 50.54% | 57.52% | 81.05% | 87.83% | 96.63% | 139.48% | 118% |
| Research & Development | 53.15M | 53.32M | 55.27M | 58.5M | 59.56M | 47.01M | 28.55M | 30.99M | 24.17M |
| R&D % of Revenue | - | 11.05% | 12.62% | 13.6% | 21.59% | 24.43% | 39.48% | 39.94% | 44.65% |
| Other Operating Expenses | 0 | 0 | 239K | 94.41M | 62.19M | 1.05M | -1.44M | 4.99M | 0 |
| Operating Income | 49.65M | 36.57M | -64.57M | -190.35M | -177.05M | -83.36M | -42.23M | -88.12M | -49.26M |
| Operating Margin % | 10.28% | 7.58% | -14.75% | -44.24% | -64.16% | -43.32% | -58.41% | -113.57% | -90.99% |
| Operating Income Growth % | - | 156.64% | 66.08% | -7.52% | -112.38% | -97.4% | 52.08% | -78.9% | - |
| EBITDA | 72.25M | 57.19M | -39.05M | -165.94M | -149.12M | -66.98M | -35.59M | -80.75M | -43.8M |
| EBITDA Margin % | 14.96% | 11.85% | -8.92% | -38.56% | -54.04% | -34.81% | -49.22% | -104.06% | -80.9% |
| EBITDA Growth % | 1308.38% | 246.45% | 76.47% | -11.28% | -122.63% | -88.21% | 55.93% | -84.37% | - |
| D&A (Non-Cash Add-back) | 22.6M | 20.62M | 25.52M | 24.41M | 27.93M | 16.39M | 6.64M | 7.38M | 5.46M |
| EBIT | 74.24M | 78.31M | 11.82M | -101.48M | -146.99M | -111.12M | -40.99M | -96.09M | -49.26M |
| Net Interest Income | -51.17M | -51.57M | -40.79M | -27.93M | -8.01M | -5.72M | -14.73M | -7.13M | 0 |
| Interest Income | 3.77M | 0 | 1.75M | 3.9M | 717K | 33K | 0 | 0 | 3.71M |
| Interest Expense | 54.93M | 51.57M | 42.54M | 31.83M | 8.72M | 5.76M | 14.73M | 7.13M | 0 |
| Other Income/Expense | -23.81M | -9.84M | 33.86M | 57.04M | 21.33M | -33.51M | -13.49M | -15.1M | -1.22M |
| Pretax Income | 25.84M | 26.73M | -30.71M | -133.31M | -155.72M | -116.88M | -55.72M | -103.22M | -50.48M |
| Pretax Margin % | 5.35% | 5.54% | -7.01% | -30.98% | -56.43% | -60.74% | -77.07% | -133.03% | -93.24% |
| Income Tax | 12.32M | 11.42M | 2.12M | 622K | 842K | -10.27M | -1.69M | 96K | -558K |
| Effective Tax Rate % | 47.68% | 42.7% | -6.89% | -0.47% | -0.54% | 8.79% | 3.03% | -0.09% | 1.11% |
| Net Income | -8.67M | 15.32M | -32.83M | -133.93M | -156.56M | -106.61M | -54.03M | -103.32M | -49.92M |
| Net Margin % | -1.8% | 3.18% | -7.5% | -31.13% | -56.73% | -55.4% | -74.73% | -133.15% | -92.2% |
| Net Income Growth % | 21.66% | 146.66% | 75.49% | 14.45% | -46.86% | -97.3% | 47.7% | -106.98% | - |
| Net Income (Continuing) | 13.52M | 15.32M | -32.83M | -133.93M | -156.56M | -106.61M | -54.03M | -103.32M | -49.92M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 51.71M | 47.01M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.08 | -0.03 | -0.33 | -1.39 | -1.61 | -1.16 | -0.63 | -4.79 | -2.59 |
| EPS Growth % | -9.57% | 90.18% | 76.26% | 13.66% | -38.79% | -84.13% | 86.85% | -84.94% | - |
| EPS (Basic) | - | -0.03 | -0.33 | -1.39 | -1.61 | -1.16 | -0.63 | -4.79 | -2.59 |
| Diluted Shares Outstanding | 106.07M | 103.69M | 99.58M | 96.06M | 97.35M | 93.88M | 81.48M | 21.56M | 19.28M |
| Basic Shares Outstanding | 106.07M | 103.69M | 99.58M | 96.06M | 97.35M | 93.88M | 81.48M | 21.56M | 19.27M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Insurance underwriting volatility
As reported in recent financial filings, Porch Group's revenue growth has exhibited significant volatility, fluctuating from a 70.4% surge in 2023Q4 to a 9.3% contraction by 2025Q1, suggesting that the company's top-line performance is heavily tethered to the cyclical nature of the U.S. residential real estate market.
The inconsistency in revenue growth appears to stem from the company's dual exposure to software-driven lead generation and transactional insurance premiums. Investors should monitor whether the recent 15.6% growth in 2026Q1 represents a sustainable recovery or merely a temporary rebound from previous inventory-constrained periods.
Based on historical income statements, Porch Group's gross margin has swung wildly from a low of 15.2% in 2024Q2 to a peak of 89.0% in 2024Q4, indicating that the company's core profitability is frequently disrupted by insurance loss adjustments and fluctuating reinsurance costs inherent in their carrier model.
The wide variance in gross margins suggests that the software segment's high-margin profile is often obscured by the unpredictable nature of insurance claims. This structural instability warrants further investigation into whether the company can achieve consistent margin expansion without shifting away from direct risk-bearing activities.
According to the provided income statement data, Porch Group's operating income has failed to demonstrate a consistent scaling trend, with margins oscillating between a negative 47.3% in 2024Q2 and a positive 25.0% in 2024Q4, highlighting the difficulty of managing corporate overhead against volatile gross profit streams.
The lack of a clear operating leverage trend suggests that SG&A expenses remain relatively rigid despite the fluctuations in top-line revenue. This may indicate that the company's current cost structure is not yet optimized to absorb the inherent volatility of its insurance segment without impacting bottom-line stability.
Analysis of the company's reported figures reveals that stock-based compensation remains a persistent expense, consistently ranging between $4.9 million and $8.9 million per quarter, which significantly impacts the quality of net income and complicates the assessment of the company's underlying cash-generating potential for common shareholders.
The recurring nature of these non-cash charges suggests that reported net income may not fully reflect the economic reality of the business. Investors should be cautious, as the reliance on equity-based incentives may continue to dilute earnings per share even during periods of operational improvement.
As indicated by the company's historical performance, the decision to retain insurance risk on the balance sheet introduces significant earnings volatility, as evidenced by the sharp net loss of $64.3 million in 2024Q2, which underscores the potential for catastrophic events to overwhelm the software segment's profitability.
Short-term observers may argue that the company's reliance on insurance underwriting creates a structural mismatch between its software-based moat and its financial obligations. This risk profile suggests that the company's valuation may remain depressed until management successfully executes a transition toward a capital-light, reciprocal exchange model.
Quick answers to the most common questions about buying PRCH stock.
For fiscal year 2025, Porch Group, Inc. (PRCH) reported total revenue of $482.4M. This represents a 791.1% increase compared to $54.1M in 2018.
Porch Group, Inc. (PRCH) is profitable, generating $15.3M in net income for the fiscal year ending 2025 with a net profit margin of 3.2%.
Porch Group, Inc. (PRCH) reported an operating income of $36.6M, resulting in an operating profit margin of 7.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Porch Group, Inc. (PRCH) generated $340.0M in gross profit for the year, representing a gross profit margin of 70.5%. This demonstrates the company's core pricing power and production efficiency.