Porch Group Q2 adjusted core profit eases past estimates; annual outlook lifted

Overview

• U.S. homeowners insurer's Q2 revenue grew 12% yr/yr, driven by Insurance Services segment

• Adjusted EBITDA for Q2 beat analyst expectations, rising 150% yr/yr

• Company raised full-year guidance on strong Insurance Services growth and policy momentum

Outlook

• Porch raises 2026 revenue guidance to $506 mln-$517 mln from $495 mln-$507 mln

• Company lifts 2026 gross profit outlook to $419 mln-$429 mln from $401 mln-$413 mln

• Porch increases 2026 adjusted EBITDA forecast to $119 mln-$125 mln from $103 mln-$109 mln

Result Drivers

• INSURANCE SERVICES GROWTH - Insurance Services revenue rose 38% yr/yr, leading segment growth

• POLICY VOLUME - Reciprocal Policies Written grew 38% yr/yr, with new customer RWP up 206% yr/yr

• DISTRIBUTION EXPANSION - Agency branch locations producing in Q2 rose 148% yr/yr, quote volumes up 87%

Company press release: ID:nBw9hTt0Fa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Porch Group Inc is $16.25, about 28.7% above its July 28 closing price of $12.63

• The stock recently traded at 127 times the next 12-month earnings vs. a P/E of 54 three months ago

Reuters Recommended Reads

• July 28 - Slide Insurance Q2 net income nearly doubles on premium growth

• July 29 - Insurer Lemonade Inc's Q2 revenue rises on premium growth

• July 27 - Brown & Brown's second-quarter profit rises on fee, commission growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)