Porch Group, Inc.PRCH
Porch Group, Inc. Revenue Disclosure
Note 4. Revenue
Disaggregation of Revenue
The following table provides detail of total revenue. Transactional revenue consists of revenue recognized from non-recurring sales or services that do not generate ongoing revenue and primarily includes revenue generated from moving services. Recurring revenue refers to revenue streams that are more predictable and generate revenue from customers on an ongoing basis, including revenue from insurance services management, inspection software, title insurance software, mortgage software, warranty products, and marketing services. Insurance carrier revenue consists of revenue earned through premiums collected on policies, policy fees, and commissions by the Reciprocal.
Year Ended December 31, | ||||||||||||||||||||
2025 | 2024 | 2023 | ||||||||||||||||||
| Transactional | $ | 33,743 | $ | 31,892 | $ | 40,350 | ||||||||||||||
| Recurring | (1) | 394,292 | 283,484 | 247,908 | ||||||||||||||||
| Intercompany revenue | (9,144) | (2,101) | (791) | |||||||||||||||||
| 418,891 | 313,275 | 287,467 | ||||||||||||||||||
| Insurance carrier | 200,463 | 182,090 | 155,752 | |||||||||||||||||
| Intercompany revenue | (136,940) | (57,517) | (12,917) | |||||||||||||||||
Total revenue | (2) | $ | 482,414 | $ | 437,848 | $ | 430,302 | |||||||||||||
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(1)Revenue recognized during the years ended December 31, 2025, 2024, and 2023 includes revenue that is accounted for in accordance with ASC 460 separately from revenue from contracts with customers. Revenue accounted for under ASC 460 was $34.2 million, $36.5 million, and $36.6 million for the years ended December 31, 2025, 2024, and 2023, respectively.
(2)Revenue recognized during the years ended December 31, 2025, 2024, and 2023, includes revenue that is accounted for in accordance with ASC 944 separately from the revenue from contracts with customers. Revenue accounted for under ASC 944 was $303.1 million, $259.7 million, and $234.5 million for the years ended December 31, 2025, 2024, and 2023, respectively.
Disclosures Related to Contracts with Customers
Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to contracts with customers. Liabilities are recorded for amounts that are collected in advance of the satisfaction of performance obligations. To the extent a contract exists, as defined by ASC 606, these liabilities are classified as deferred revenue. To the extent that a contract does not exist, as defined by ASC 606, these liabilities are classified as refundable customer deposits. Refundable customer deposits related to contracts with customers were not material at December 31, 2025 and 2024.
Insurance Commissions Receivable
A summary of the activity impacting insurance commissions receivable is presented below:
| Balance as of January 1, 2023 | $ | 15,521 | |||
| Estimated lifetime value of commissions on insurance policies sold by carriers | 6,583 | ||||
| Cash receipts | (4,711) | ||||
| Balance at December 31, 2023 | 17,393 | ||||
| Estimated lifetime value of commissions on insurance policies sold by carriers | 1,506 | ||||
| Cash receipts | (491) | ||||
| Value of commissions sold with business disposition (Note 14) | (16,982) | ||||
| Balance at December 31, 2024 | 1,426 | ||||
| Estimated lifetime value of commissions on insurance policies sold by carriers | 2,208 | ||||
| Cash receipts | (517) | ||||
| Balance at December 31, 2025 | $ | 3,117 | |||
As of December 31, 2025 and 2024, $0.6 million and $0.2 million, respectively, of insurance commissions receivable were expected to be collected within the immediately following 12 months and therefore were included in accounts receivable, net, on the Consolidated Balance Sheets. The remaining $2.5 million and $1.2 million as of December 31, 2025 and 2024, respectively, of insurance commissions receivable are expected to be collected after the immediately following 12 months and were included in long-term insurance commissions receivable on the Consolidated Balance Sheets.
Deferred Revenue
A summary of the activity impacting Software & Data segment deferred revenue balances is presented below:
| Software & Data Segment Deferred Revenue | |||||
| Balance as of January 1, 2023 | $ | 3,874 | |||
| Additional amounts deferred | 16,142 | ||||
| Revenue recognized | (16,301) | ||||
| Balance at December 31, 2023 | 3,715 | ||||
| Additional amounts deferred | 19,436 | ||||
| Revenue recognized | (19,716) | ||||
| Balance at December 31, 2024 | 3,435 | ||||
| Additional amounts deferred | 16,084 | ||||
| Revenue recognized | (16,820) | ||||
| Balance at December 31, 2025 | $ | 2,699 | |||
Deferred revenue on our Consolidated Balance Sheets as of December 31, 2025 and 2024, includes $219.6 million and $242.6 million, respectively, of deferred revenue related to the Reciprocal Segment. The portion of insurance premiums related to the unexpired term of policies in force as of the end of the reporting period and to be earned over the remaining term of these policies is deferred and reported as deferred revenue.
Remaining Performance Obligations
The amount of the transaction price allocated to performance obligations to be satisfied at a later date, which is not recorded in the Consolidated Balance Sheets, is immaterial as of December 31, 2025 and 2024.
We have applied the practical expedients not to present unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts with variable consideration that is allocated entirely to unsatisfied
performance obligations or to a wholly unsatisfied promise accounted for under the series guidance, and (iii) contracts for which we recognize revenue at the amount which we have the right to invoice for services performed.
Warranty Revenue and Related Balance Sheet Disclosures
We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. As of December 31, 2025 and 2024, we had $0.2 million and $0.3 million, respectively, of capitalized costs in prepaid expenses and other current assets. As of December 31, 2025 and 2024, we had $0.5 million and $1.0 million, respectively, in other assets on the consolidated balance sheets.
Payments received in advance of warranty services provided are included in refundable customer deposits or deferred revenue based upon the cancellation and refund provisions within the respective agreement. The following table provides balances as of the dates shown:
December 31, 2025 | December 31, 2024 | ||||||||||
Refundable customer deposits | $ | 12,379 | $ | 12,598 | |||||||
Deferred revenue | $ | 1,853 | $ | 2,751 | |||||||
Non-current deferred revenue | $ | 2,010 | $ | 2,433 | |||||||
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(1)Non-current deferred revenue is included in other liabilities in the Consolidated Balance Sheets.
We incurred $3.9 million and $7.1 million in expenses related to warranty claims for the years ended December 31, 2025 and 2024, respectively.
Historical 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 Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.