Porch Group, Inc. Q1 FY2026 earnings call

• 2026 Q1 results exceeded expectations, and full year guidance for Porch shareholder interest revenue, gross profit and adjusted EBITDA was raised. • Portra is a simpler, higher margin fee and commission based business. • Insurance services delivered 50% year-over-year revenue growth in Q1. • AI is being used across Porch to improve engineering velocity, operations, customer support, etc. • Focus on scaling the insurance growth engine with capacity, top of funnel, and conversion. • Launched Porch Insurance in Texas as a tailwind for conversion.

Insurance services: Q1 revenue was $75 million, up 50% year-over-year. Gross profit was $64 million with an 85% gross margin. Adjusted EBITDA was $27 million, or a 37% margin. Software and data: Revenue was $22 million in Q1, gross profit was $17 million with a 75% gross margin, and adjusted EBITDA was $4.6 million. Consumer services: Segment revenue was $15 million, gross profit was $13 million with an 87% gross margin, and adjusted EBITDA was approximately break-even. Revenue contribution: Insurance services contributed 68%, software and data 20%, with the remainder from consumer services.

• Raised revenue guidance to a range of $495 million to $507 million, representing 20% year-over-year growth at the midpoint. • Raised gross profit guidance to a range of $401 million to $413 million, still with an 81% gross margin at the midpoint. • Raised adjusted EBITDA guidance to a range of $103 million to $109 million, still a 21% adjusted EBITDA margin at the midpoint.

• Macro environment changes could impact business. • Competition in the insurance industry. • Risks related to AI application and integration. • Seasonal factors affecting cash flow timing for the reciprocal.

Q: Thoughts on RWP guide for the year and premium per policy written?

A: Sean mentioned revenue guidance increased, and Matt and Matthew discussed porch insurance's impact on premium mix and future growth.

Q: Talk about loss ratios or combined ratio trends for Q1?

A: Matt and Gaston discussed Q1 gross loss ratios of 24% and attritional loss ratios of 19%, and Porch's consistent top-performing loss ratios.

Q: Cash flow for operations and home factors?

A: Sean talked about cash flow timing and statutory surplus, and Matthew discussed home factors' internal use and external commercialization.

Q: Price action and conversion rate improvement?

A: Matt and Adam discussed pricing actions and conversion rate drivers.

Q: Top of funnel disruption from AI and M&A appetite?

A: Ryan and Matt discussed Porch's net AI beneficiary position and potential M&A activity.

Q: Porch Insurance rollout and software/data/consumer services KPIs?

A: Timothy discussed Porch Insurance rollout feedback and how KPIs in software/data and consumer services may perform with housing market unthaw.

Q: Agency branch locations saturation and conversion levers?

A: Matt discussed agency branch locations growth potential and conversion rate levers consideration.