Revenue growth has stabilized at 18.1% in 2026Q2, but gross margins remain volatile, swinging from 15.2% in 2024Q2 to 89.0% in 2024Q4, with operating margin slipping to -2.9% in 2026Q2, indicating inconsistent operating leverage.
Porch Group, Inc. (PRCH) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Sales/Revenue | 504.39M | 482.41M | 437.85M | 430.3M | 275.95M | 192.43M | 72.3M | 77.59M | 54.14M |
| Revenue Growth % | 15.79% | 10.18% | 1.75% | 55.94% | 43.4% | 166.16% | -6.83% | 43.33% | - |
| Cost of Goods Sold | 143.28M | 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 | 361.11M | 339.99M | 212.22M | 210.06M | 168.37M | 133.71M | 54.74M | 56.09M | 38.8M |
| Gross Margin % | 71.59% | 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 | 320.62M | 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 | 265.87M | 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 | 53.1M | 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 | 1000K | 0 | 239K | 94.41M | 62.19M | 1.05M | -1.44M | 4.99M | 0 |
| Operating Income | 40.49M | 36.57M | -64.57M | -190.35M | -177.05M | -83.36M | -42.23M | -88.12M | -49.26M |
| Operating Margin % | 8.03% | 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 | 68.19M | 57.19M | -39.05M | -165.94M | -149.12M | -66.98M | -35.59M | -80.75M | -43.8M |
| EBITDA Margin % | 13.52% | 11.85% | -8.92% | -38.56% | -54.04% | -34.81% | -49.22% | -104.06% | -80.9% |
| EBITDA Growth % | 34.3% | 246.45% | 76.47% | -11.28% | -122.63% | -88.21% | 55.93% | -84.37% | - |
| D&A (Non-Cash Add-back) | 27.7M | 20.62M | 25.52M | 24.41M | 27.93M | 16.39M | 6.64M | 7.38M | 5.46M |
| EBIT | 62.76M | 78.31M | 11.82M | -101.48M | -146.99M | -111.12M | -40.99M | -96.09M | -49.26M |
| Net Interest Income | -50.79M | -51.57M | -40.79M | -27.93M | -8.01M | -5.72M | -14.73M | -7.13M | 0 |
| Interest Income | 6.86M | 0 | 1.75M | 3.9M | 717K | 33K | 0 | 0 | 3.71M |
| Interest Expense | 57.65M | 51.57M | 42.54M | 31.83M | 8.72M | 5.76M | 14.73M | 7.13M | 0 |
| Other Income/Expense | -35.38M | -9.84M | 33.86M | 57.04M | 21.33M | -33.51M | -13.49M | -15.1M | -1.22M |
| Pretax Income | 5.11M | 26.73M | -30.71M | -133.31M | -155.72M | -116.88M | -55.72M | -103.22M | -50.48M |
| Pretax Margin % | 1.01% | 5.54% | -7.01% | -30.98% | -56.43% | -60.74% | -77.07% | -133.03% | -93.24% |
| Income Tax | 13.99M | 11.42M | 2.12M | 622K | 842K | -10.27M | -1.69M | 96K | -558K |
| Effective Tax Rate % | 273.69% | 42.7% | -6.89% | -0.47% | -0.54% | 8.79% | 3.03% | -0.09% | 1.11% |
| Net Income | -5.65M | 15.32M | -32.83M | -133.93M | -156.56M | -106.61M | -54.03M | -103.32M | -49.92M |
| Net Margin % | -1.12% | 3.18% | -7.5% | -31.13% | -56.73% | -55.4% | -74.73% | -133.15% | -92.2% |
| Net Income Growth % | -110.12% | 146.66% | 75.49% | 14.45% | -46.86% | -97.3% | 47.7% | -106.98% | - |
| Net Income (Continuing) | -8.88M | 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 | 31.21M | 47.01M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.05 | -0.03 | -0.33 | -1.39 | -1.61 | -1.16 | -0.63 | -4.79 | -2.59 |
| EPS Growth % | -123.9% | 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 | 116.89M | 103.69M | 99.58M | 96.06M | 97.35M | 93.88M | 81.48M | 21.56M | 19.28M |
| Basic Shares Outstanding | 108.59M | 103.69M | 99.58M | 96.06M | 97.35M | 93.88M | 81.48M | 21.56M | 19.27M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Housing market and reinsurance exposure
Metrics are mathematically derived from official filings.
Revenue Growth Stabilizing After Volatility
Revenue growth has decelerated from 32.1% in 2024Q1 to 18.1% in 2026Q2, per company filings, reflecting a mixed trajectory with recent stabilization around 15-18%.
The sharp deceleration from 2024's double-digit growth to mid-single-digit in early 2025 suggests a cooling housing market impact. However, the rebound to 18.1% in 2026Q2 indicates some resilience, possibly from insurance premium growth. Investors should monitor whether this growth is sustainable given the high mortgage rate environment.
Gross Margin Volatility Masks Structural Shift
Gross margin swung from 15.2% in 2024Q2 to 89.0% in 2024Q4, per income statement data, indicating significant volatility likely due to insurance loss reserve adjustments and revenue mix.
The extreme volatility in gross margin suggests the insurance segment's underwriting performance is highly unpredictable, with catastrophic events or reserve changes causing swings. The recent 62.2% margin in 2026Q2 is below the 70%+ levels seen in late 2025, implying ongoing pressure. This volatility complicates valuation and suggests the market should focus on underlying underwriting discipline.
Operating Leverage Emerging but Inconsistent
Operating margin improved from -47.3% in 2024Q2 to 13.2% in 2025Q4, per reported figures, but slipped to -2.9% in 2026Q2, indicating operating leverage is not yet durable.
The dramatic improvement in operating margin from 2024 to 2025 suggests that fixed costs are being spread over a larger revenue base, but the recent dip in 2026Q2 indicates that SG&A expenses have grown faster than revenue. This may reflect increased investment in growth or one-time costs. The sustainability of operating leverage depends on revenue growth outpacing overhead expansion.
Net Income Volatility Raises Quality Concerns
Net income swung from -$64.3M in 2024Q2 to +$30.5M in 2024Q4, per financial statements, with recent quarters showing small profits, suggesting earnings quality is influenced by non-operating items.
The large swings in net income, including a $30.5M profit in 2024Q4 followed by losses in 2025Q1 and Q3, indicate that reported earnings are not a reliable indicator of underlying profitability. Stock-based compensation of $7-9M per quarter adds to the noise. Investors should focus on adjusted metrics that exclude these non-cash and one-time items.
SG&A and COGS Drive Margin Variability
SG&A has grown from $51.4M in 2024Q4 to $77.0M in 2026Q2, per income statement data, while COGS fluctuates widely, indicating cost control is challenged by insurance claims and overhead.
The steady increase in SG&A suggests ongoing investment in sales and corporate infrastructure, which may be necessary for growth but pressures margins. COGS volatility, particularly the $94.0M spike in 2024Q2, likely reflects insurance claims and reinsurance costs. Management's expense discipline will be critical to achieving consistent profitability.
2024Q2 Marked a Turning Point
The 2024Q2 quarter showed a gross margin of 15.2% and operating loss of -$52.5M, per reported data, representing the trough from which the company has since improved significantly.
The 2024Q2 results appear to have been a low point, likely due to adverse insurance claims and integration costs. Since then, the company has shown improvement in gross and operating margins, culminating in positive net income in 2026Q2. This inflection suggests that management's strategic adjustments, possibly in underwriting and cost structure, are beginning to take effect, though durability remains unproven.
What Could Invalidate the Base Case
Despite recent profitability, the reliance on insurance underwriting and housing market cyclicality poses risks, as evidenced by volatile gross margins and net income swings in the data.
Short-sellers might argue that the positive net income in 2026Q2 is not sustainable given the historical volatility and the ongoing headwinds from high mortgage rates and reinsurance costs. The gross margin of 62.2% in 2026Q2 is well below the 89.0% in 2024Q4, suggesting that the insurance segment's profitability is fragile. If housing turnover remains depressed or catastrophic events increase, the company could easily slip back into losses, undermining the recent earnings improvement.