Porch Group, Inc.PRCH
Porch Group, Inc. Goodwill & Intangibles Disclosure
Note 8. Intangible Assets and Goodwill
Intangible Assets
Intangible assets are stated at cost or acquisition-date fair value, less accumulated amortization and impairment. The following tables summarize intangible asset balances.
| As of December 31, 2025 | Weighted Average Useful Life (in years) | Intangible Assets, Gross | Accumulated Amortization and Impairment | Intangible Assets, Net | ||||||||||||||||||||||
| Customer relationships | (1) | 9 | $ | 57,833 | $ | (28,725) | $ | 29,108 | ||||||||||||||||||
| Acquired technology | 8 | 7,980 | (4,765) | 3,215 | ||||||||||||||||||||||
| Trademarks and tradenames | (2) | 11 | 22,025 | (9,296) | 12,729 | |||||||||||||||||||||
| Non-compete agreements | 7 | 180 | (96) | 84 | ||||||||||||||||||||||
| Renewal rights | (3) | 6 | 9,734 | (6,019) | 3,715 | |||||||||||||||||||||
| Insurance licenses | (4) | Indefinite | 4,960 | — | 4,960 | |||||||||||||||||||||
| Total intangible assets | $ | 102,712 | $ | (48,901) | $ | 53,811 | ||||||||||||||||||||
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(1)Balance includes $8.8 million of customer relationships that are included in intangible assets, net, in Assets of Reciprocal section of the Consolidated Balance Sheets as of December 31, 2025.
(2)Balance includes $6.4 million of trademarks and tradenames that are included in intangible assets, net, in Assets of Reciprocal section of the Consolidated Balance Sheets as of December 31, 2025.
(3)Balance includes $3.1 million of renewal rights that are included in intangible assets, net, in Assets of Reciprocal section of the Consolidated Balance Sheets as of December 31, 2025.
(4)The entire insurance licenses balance is included in intangible assets, net, in Assets of Reciprocal section of the Consolidated Balance Sheets as of December 31, 2025.
| As of December 31, 2024 | Weighted Average Useful Life (in years) | Intangible Assets, Gross | Accumulated Amortization and Impairment | Intangible Assets, Net | |||||||||||||||||||
| Customer relationships | 9 | $ | 69,024 | $ | (32,620) | $ | 36,404 | ||||||||||||||||
| Acquired technology | 5 | 28,001 | (20,490) | 7,511 | |||||||||||||||||||
| Trademarks and tradenames | 11 | 23,443 | (8,708) | 14,735 | |||||||||||||||||||
| Non-compete agreements | 5 | 301 | (182) | 119 | |||||||||||||||||||
| Renewal rights | 6 | 9,734 | (4,717) | 5,017 | |||||||||||||||||||
| Insurance licenses | Indefinite | 4,960 | — | 4,960 | |||||||||||||||||||
| Total intangible assets | $ | 135,463 | $ | (66,717) | $ | 68,746 | |||||||||||||||||
Aggregate amortization expense related to intangibles was $14.9 million, $18.5 million, and $19.4 million for the years ended December 31, 2025, 2024 and 2023, respectively. The following table shows estimated future intangible amortization expense for the next five years and thereafter.
| Year ending December 31, | Estimated Amortization Expense | |||||||
| 2026 | $ | 10,187 | ||||||
| 2027 | 9,048 | |||||||
| 2028 | 8,332 | |||||||
| 2029 | 7,450 | |||||||
| 2030 | 7,012 | |||||||
| Thereafter | 6,822 | |||||||
| $ | 48,851 | |||||||
Goodwill
The following table summarizes the changes in the carrying amount of goodwill:
Balance as of December 31, 2022, net of accumulated impairment of $43.8 million | $ | 244,697 | ||||||
| Acquisitions | 2,421 | |||||||
| (55,211) | ||||||||
Balance as of December 31, 2023, 2024, and 2025, net of accumulated impairment of $99.0 million | (1) | $ | 191,907 | |||||
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(1)There were no changes in the carrying amount of goodwill for the years ended December 31, 2024 and 2025.
As of December 31, 2024, the entire $191.9 million goodwill balance was included in our legacy Vertical Software segment. On January 1, 2025, new segments were created per the discussion in Note 2. We performed a quantitative analysis as of January 1, 2025, reallocating the $191.9 million to the Software & Data and Consumer Services segments. We allocated $157.4 million to the Software & Data segment and $34.5 million to the Consumer Services segment on a relative fair value basis. We estimated the fair value of the Software & Data and Consumer Services reporting units using a combination of market and income approaches based on peer performance and discounted cash flow methodologies. The goodwill analysis required significant judgments to reallocate the fair value of the reporting units, including internal forecasts and determination of weighted average cost of capital. The weighted average cost of capital used was risk-adjusted to reflect the specific risk profile of the reporting units and ranged from 11% to 14%. Management considers historical experience and all available information at the time the fair values are estimated. Assumptions are subject to a high degree of judgment and complexity.
During our annual impairment testing as of October 1, 2025, we performed a qualitative assessment and determined that it was not more likely than not that the fair value of each reporting unit was less than its carrying value. Therefore, we did not perform a quantitative assessment as of that date.
We continue to monitor our reporting units at risk of impairment for interim impairment indicators and believe that the estimates and assumptions used in the calculations are reasonable as of December 31, 2025. We also reconcile the fair value of our reporting units to our market capitalization. Should the fair value of either of our reporting units fall below its carrying amount because of reduced operating performance, market declines including a deterioration of the macroeconomic environment in the housing and real estate or insurance industries, changes in the discount rate, or other adverse conditions, goodwill impairment charges may be necessary in future periodsHistorical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 16, 2022 | |
| 2020 | Mar 31, 2021 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.