Porch Group, Inc. reported its second quarter 2025 results on August 5, 2025, exceeding expectations and leading to another increase in its 2025 guidance. Porch Shareholder Interest revenue reached $107 million, primarily from $120.7 million of reciprocal written premium.
The company achieved a robust gross profit of $89 million, representing an 83% gross margin. Adjusted EBITDA for the quarter was $16 million, a significant $50 million improvement year-over-year, resulting in a 15% margin.
Operating cash flow for Porch shareholders was $15 million in Q2, contributing to $42 million for the first half of 2025. The Porch Reciprocal Exchange's gross loss ratio was an exceptional 34% in Q2 2025, a stark contrast to 117% in Q2 2024, demonstrating effective underwriting.
Porch raised its 2025 guidance for Porch Shareholder Interest, projecting revenue between $405 million and $425 million, gross profit between $328 million and $342 million, and Adjusted EBITDA between $65 million and $70 million. The company also reaffirmed its target of $100 million in Adjusted EBITDA for 2026.
The reciprocal's surplus, combined with non-admitted assets, grew to $299 million, an increase of $102 million from Q1 2025, which can support approximately $1.5 billion in premium. This strong financial health and growth capacity underscore the success of the new business model.
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