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# Porch Lifts 2026 Profit Outlook To $135 Million-$140 Million As Insurance Services Revenue Climbs 39%
- URL: https://www.bullished.co/porch-lifts-2026-profit-outlook-to-135-million-140-million-as-insurance-services-revenue-c917cfb1/
- Published: 2026-10-28T20:27:20.000Z
- Updated: 2026-10-28T20:27:20.000Z
- Description: The homeowners insurer raised its full-year Adjusted EBITDA forecast and agreed to buy Allied Trust, with closing targeted for the first quarter of 2027.
- Author: Matteo Parrino
- Tags: Deals, PRCH, Industry: Financials

[Porch Group](https://www.bullished.co/tag/prch/), a homeowners insurance company that also sells software and services to home buyers, [raised its 2026 outlook](https://www.sec.gov/Archives/edgar/data/0001784535/000178453526000058/prch-20261028xexx991.htm?ref=bullished.co) on Wednesday, lifting full-year Adjusted EBITDA guidance for the businesses it owns to $135 million-$140 million from $119 million-$125 million. The company said third-quarter results exceeded its expectations, and it expects to close its Allied Trust acquisition in the first quarter of 2027.

## The raised guidance

The new range covers only Porch-owned businesses, not the Porch Reciprocal Exchange, the policyholder-owned insurer that writes the policies. Revenue guidance rises to $518 million-$523 million from $506 million-$517 million, and gross profit to $438 million-$443 million from $419 million-$429 million.

CEO Matt Ehrlichman said the company "raised our full-year outlook again." He said Insurance Services is operating as a "Rule of 80 business in a soft insurance market."

## Third-quarter numbers

Consolidated revenue was $143.9 million, up 13% from a year earlier. Insurance Services revenue was $102.8 million, up 39%, and Adjusted EBITDA (Excluding Reciprocal) rose 116% to $44.5 million.

Net income attributable to Porch was $12.2 million, against a loss of $10.9 million in the third quarter of 2025.

Policies written by the Reciprocal grew 42%, speeding up from 38% in the second quarter. Written premium from new customers rose 178% as quote volumes climbed 79%. Reciprocal written premium was $161.0 million, up 17%, while premium per policy fell 17% to $2,384.

Porch's unrestricted cash, cash equivalents and investments reached $157.6 million, up from $119.2 million at June 30\. Convertible debt principal stood at $467.3 million.

## The Allied Trust purchase

Under agreements signed October 13, the Reciprocal will buy Allied Trust's insurance carrier for a base price of $55 million in cash, plus $50 million of deferred consideration over 12 months after closing. Porch will separately buy the managing general agency and captive reinsurer for $95 million, made up of $75 million in cash and an expected $20 million in PRCH shares.

The company puts the deal at an acquisition multiple of less than four times for Porch, based on expected first-year Adjusted EBITDA. Closing cannot come before January 1, 2027, and the deal depends on approval from the Texas Department of Insurance.

Management holds its earnings call at 5:00 p.m. Eastern on Wednesday.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — Porch Group, Inc. (PRCH)](https://www.sec.gov/Archives/edgar/data/0001784535/000178453526000058/prch-20261028.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit prch-20261028xexx991.htm — Porch Group, Inc. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001784535/000178453526000058/prch-20261028xexx991.htm?ref=bullished.co) — SEC EDGAR

### More on Porch Group

- [Porch Group Agrees To Buy Allied Trust For $200 Million, Gaining A Louisiana Foothold](https://www.bullished.co/porch-group-agrees-to-buy-allied-trust-for-200-million-gaining-a-louisiana-foothold-0349fc88/)

[All Porch Group (PRCH) coverage →](https://www.bullished.co/tag/prch/)