Porch Lifts 2026 Profit Outlook To $135 Million-$140 Million As Insurance Services Revenue Climbs 39%
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.
Porch Group, a homeowners insurance company that also sells software and services to home buyers, raised its 2026 outlook 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.
Sources
- 8-K Filing — Porch Group, Inc. (PRCH) — SEC EDGAR
- Exhibit prch-20261028xexx991.htm — Porch Group, Inc. 8-K exhibit — SEC EDGAR
