Porch Raises 2026 Outlook After Reciprocal Policy Growth

The Tip Desk · November 9, 2026 · 4 min read

Reciprocal Policies Written rose 42% year over year in the third quarter, and the company lifted full-year Adjusted EBITDA (Excluding Reciprocal) guidance to $135 million to $140 million.

Porch Group, Inc. (PRCH), a homeowners insurance company, reported third-quarter results through September 30, 2026, that it said exceeded expectations, and raised full-year guidance for the remainder of 2026.

Consolidated revenue was $143.9 million, up 13% from a year earlier. Porch-Owned Segments Revenue (Excluding Reciprocal) was $140.8 million, up 22% year over year, led by Insurance Services revenue of $102.8 million, up 39%. Net income attributable to Porch was $12.2 million. Adjusted EBITDA (Excluding Reciprocal) was $44.5 million, up 116% year over year, which the company said was largely driven by $161.0 million of Reciprocal Written Premium and 42% growth in Reciprocal Policies Written.

Reciprocal Policies Written growth accelerated to 42% year over year from 38% in the second quarter. Reciprocal Written Premium was $161.0 million, up 17% from $137.5 million a year earlier. RWP per policy written was $2,384, down 17% from $2,884 a year earlier. Statutory surplus at the Porch Reciprocal Exchange was $174.4 million, up $22 million versus the year-ago quarter.

Insurance Services Adjusted EBITDA was $50.1 million, with an Adjusted EBITDA margin of 49%, versus $25.3 million and a 34% margin a year earlier. Insurance Services Adjusted EBITDA as a percentage of RWP was 31%, versus 18% a year earlier. Insurance Services gross profit as a percentage of RWP was 57%, versus 45%. The company said Insurance Services is operating as a Rule of 80 business in a soft insurance market.

Top-of-funnel activity continued to expand. Producing agency branch locations rose 114% from the year-ago quarter and quote volumes rose 79%. The company said conversion tracked well above prior-year levels, supporting 178% year-over-year growth in RWP from new customers.

Software & Data revenue was $22.3 million. Average number of companies was 18.5 thousand, down 22% from 23.8 thousand a year earlier, while annualized average revenue per company was $4,840, up 17% from $4,140. Consumer Services revenue was $18.3 million. Monetized services were 83.7 thousand, down 11% from 93.9 thousand a year earlier, while average revenue per monetized service was $219, up 6% from $206.

Porch-Owned Segments Gross Profit (Excluding Reciprocal) grew 28% year over year to $120.8 million. Consolidated gross profit was $107.9 million.

The company raised Porch-Owned Segments full-year 2026 revenue guidance (Excluding Reciprocal) to $518 million to $523 million, or 24% to 25% year-over-year growth, from a prior range of $506 million to $517 million. Gross profit guidance (Excluding Reciprocal) moved to $438 million to $443 million, or 27% to 29% growth, from $419 million to $429 million. Adjusted EBITDA (Excluding Reciprocal) guidance moved to $135 million to $140 million, or 76% to 83% growth, from $119 million to $125 million. Guidance covers businesses owned by Porch and does not include the Reciprocal, which is owned by its policyholder-members.

On October 13, 2026, Porch entered agreements under which the Reciprocal will acquire Allied Trust Insurance Company and Homeowners of America Holding Corporation will acquire Allied Underwriters, LLC and Lonestar Lagniappe Reinsurance Holdings, LLC. The Reciprocal’s initial base price for the carrier is $55 million in cash, subject to surplus and indebtedness adjustments, plus $50 million of deferred consideration payable over 12 months after closing. Porch Group will acquire the managing general agency and captive reinsurance entity for an aggregate base price of $95 million, consisting of $75 million in cash and an expected $20 million in PRCH shares. The transaction had not closed as of the release date. Closing is not expected earlier than January 1, 2027, and the company currently expects it in the first quarter of 2027. Chief Executive Officer Matt Ehrlichman said the deal would add scale, products, geographic reach, an experienced team, and more than a decade of operating data, and that Porch can make those assets more valuable through proprietary property data, distribution, and insurance operating capabilities.

Unrestricted cash, cash equivalents, and investments of Porch were $157.6 million at September 30, 2026, versus $119.2 million at June 30. Outstanding principal for convertible debt was $467.3 million.