Porch Group, Inc.PRCH
Porch Group, Inc. Segments Disclosure
Note 2. Segment Information
Reportable segments were identified based on how the chief operating decision-maker (“CODM”) manages the business, makes operating decisions, and evaluates operating and financial performance. Our chief executive officer acts as the CODM and reviews financial and operational information for our reportable segments. Operating segments are components of an enterprise for which separate discrete financial information is available and operational results are regularly evaluated by the CODM for the purposes of making decisions regarding resource allocation and assessing performance.
Beginning in January 2025, there was a change in internal reporting provided to the CODM and a change in the lens through which the CODM makes decisions and allocates resources. As a result, our reportable segments, that are also our operating segments, changed from Vertical Software and Insurance prior to 2025 to Insurance Services, Software & Data, Consumer Services, and the Reciprocal Segment. Three of these segments are owned by Porch — Insurance Services, Software & Data, and Consumer Services. Management references the Insurance Services, Software & Data, and Consumer Services segments, together with corporate expenses, as “Porch Shareholder Interest.” The fourth segment, the Reciprocal Segment, is managed, but not owned, by Porch and is consolidated for reporting purposes.
The changes in reporting were driven by how the CODM views our target customer (e.g. primarily total premium in Insurance Services, primarily businesses in Software & Data, and primarily direct consumers in Consumer Services) and by the shift to a reciprocal exchange model where we are the manager of the Reciprocal rather than the owner of a carrier. In connection with the formation of the Reciprocal in January 2025, we sold our legacy homeowners insurance carrier, Homeowners of America (“HOA”), to the Reciprocal, shifting all premium and policyholders to the member-owned entity. Effective January 1, 2025, the Reciprocal pays all claim costs, all reinsurance costs, and all agency commissions in addition to management fees to Porch. The Reciprocal is a VIE and represents a noncontrolling interest as discussed in Note 3, Variable Interest Entity.
Our Insurance Services segment manages and operates the Reciprocal, providing services related, but not limited, to underwriting, policy renewal, risk management, insurance portfolio management, financial management, and setting investment guidelines in exchange for commissions and fees. The Insurance Services segment also holds the surplus notes issued by the Reciprocal and includes our captive reinsurer which provides reinsurance support to improve capital efficiency for the Reciprocal.
Our Software & Data segment provides, on a subscription and predominantly transactional basis, software to inspection, mortgage, title, and roofing companies and data products to insurance and other types of companies. This segment includes several strategically important businesses, including home inspection software, title and mortgage software, Home Factors (our unique property insights product), and mover marketing products.
Our Consumer Services segment provides warranty products through Porch Warranty and other warranty brands to protect the whole home. Our Consumer Services segment also provides moving related services such as movers, TV/Internet, and security.
The Reciprocal Segment includes HOA and its parent, Porch Reciprocal Exchange, which is a member-owned reciprocal exchange, owned by policyholder members rather than Porch. The Reciprocal Segment provides consumers with insurance to protect their homes, earning revenue primarily through premiums collected on policies.
Our segment operating and financial performance measures are Gross Profit and Adjusted EBITDA (Loss) for the Insurance Services, Software & Data, and Consumer Services segments. Adjusted EBITDA (Loss) is defined as Gross Profit less the following expenses associated with each segment: selling and marketing, product and technology, and general and administrative. Adjusted EBITDA (Loss) also excludes non-cash items or items that management does not consider reflective of ongoing core operations, such as depreciation, amortization, and stock-based compensation expense. The CODM uses gross profit and Adjusted EBITDA (Loss) to allocate resources for these segments (including employees, property, and financial or capital resources) predominately in the annual budget and forecasting process. Both of these measures are also used to provide guidance to investors.
Our segment operating financial performance measures for the Reciprocal Segment are gross profit and Net Income (Loss). These measures are consistent with the information that is regularly provided to and reviewed by the CODM in assessing segment performance and allocating resources. The CODM utilizes Net Income (Loss) rather than Adjusted EBITDA (Loss) for the Reciprocal Segment because Net Income (Loss) includes interest expense associated with the surplus note issued in connection with the formation of the Reciprocal. This interest is a significant component of the Reciprocal Segment’s financial performance, is regularly provided to the CODM, and is therefore considered in his evaluation. Adjusted EBITDA (Loss), by definition, excludes interest expense.
Beginning in 2025, following the formation of the Reciprocal, we began allocating certain expenses to the Insurance Services segment that were historically considered Corporate costs. This allocation is meant to account for fees paid through Corporate shared services on behalf of the Insurance Services segment and related to its management of the Reciprocal. Because this change occurred as a direct result of the formation of the Reciprocal, the allocation is not recast to prior periods.
The following tables present revenue and significant expenses by segment that are regularly provided to the CODM. Other segment items that the CODM does not consider in assessing segment performance are presented to reconcile to each segment’s measure of profit or loss.
The “Corporate” column includes shared expenses that are not allocated to the reportable segments. These consist primarily of selling and marketing, product and technology, accounting, human resources, legal, general and administrative, and other income, expenses, gain and losses.
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| Insurance Services | Software & Data | Consumer Services | Corporate | Reciprocal Segment | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||
| Revenue | (1) | $ | 266,726 | $ | 92,935 | $ | 68,374 | $ | — | $ | 200,463 | $ | (146,084) | $ | 482,414 | |||||||||||||||||||||||||||||
| Cost of revenue | 39,144 | 25,715 | 10,128 | — | 71,416 | (3,979) | 142,424 | |||||||||||||||||||||||||||||||||||||
| Gross Profit | 227,582 | 67,220 | 58,246 | — | 129,047 | (142,105) | 339,990 | |||||||||||||||||||||||||||||||||||||
| Significant expenses: | ||||||||||||||||||||||||||||||||||||||||||||
| Selling and marketing | 123,831 | 37,015 | 41,936 | 1,578 | 20,876 | (85,658) | 139,578 | |||||||||||||||||||||||||||||||||||||
| Product and technology | 10,354 | 18,545 | 4,582 | 16,849 | 2,987 | — | 53,317 | |||||||||||||||||||||||||||||||||||||
| General and administrative | 19,936 | 8,741 | 9,698 | 54,442 | 68,830 | (56,447) | 105,200 | |||||||||||||||||||||||||||||||||||||
| Provision for doubtful accounts | 200 | 1,380 | 2,543 | — | 1,202 | — | 5,325 | |||||||||||||||||||||||||||||||||||||
| Other segment items: | ||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | (2) | (367) | (14,592) | (3,422) | ||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | (2) | (4,443) | (2,406) | (1,735) | ||||||||||||||||||||||||||||||||||||||||
| Interest income on intercompany surplus notes | (14,987) | — | — | |||||||||||||||||||||||||||||||||||||||||
| Change in fair value of contingent consideration | — | — | 44 | |||||||||||||||||||||||||||||||||||||||||
| Restructuring and other costs | (279) | (276) | (156) | |||||||||||||||||||||||||||||||||||||||||
| Other gains and losses | (3) | (6,356) | — | — | ||||||||||||||||||||||||||||||||||||||||
| Acquisition and other transaction costs | (45) | (89) | (36) | |||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA (Loss) | $ | 99,738 | $ | 18,902 | $ | 4,792 | ||||||||||||||||||||||||||||||||||||||
| Other income (expense): | ||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | (96) | (51,572) | ||||||||||||||||||||||||||||||||||||||||||
| Change in fair value of private warrant liability | — | (4,013) | ||||||||||||||||||||||||||||||||||||||||||
| Change in fair value of derivatives | — | 19,635 | ||||||||||||||||||||||||||||||||||||||||||
| Gain on extinguishment of debt | — | 395 | ||||||||||||||||||||||||||||||||||||||||||
| Investment income and realized gains and losses, net of investment expenses | 9,661 | 11,671 | ||||||||||||||||||||||||||||||||||||||||||
| Other income | — | 14,049 | ||||||||||||||||||||||||||||||||||||||||||
| Interest expense on intercompany surplus notes | (14,987) | — | ||||||||||||||||||||||||||||||||||||||||||
| Income tax expense | (11,051) | (11,417) | ||||||||||||||||||||||||||||||||||||||||||
| Net income | $ | 18,679 | 15,318 | |||||||||||||||||||||||||||||||||||||||||
| Net income attributable to the Reciprocal | 18,679 | |||||||||||||||||||||||||||||||||||||||||||
| Net loss attributable to Porch | $ | (3,361) | ||||||||||||||||||||||||||||||||||||||||||
______________________________________
(1)Revenue includes intersegment revenues of $239.6 million in Insurance Services (which includes fees, commissions, and reinsurance premiums paid by the Reciprocal to Insurance Services), $9.1 million in Software & Data, and $(77.5) million in revenue offsets in the Reciprocal Segment.
(2)Depreciation, amortization, and stock-based compensation are included in Cost of revenue, Selling and marketing, Product and technology, and General and administrative lines above and are excluded from Adjusted EBITDA (Loss).
(3)Other gains and losses primarily include investment income and some recoveries of reinsurance losses.
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||
| Insurance Services | Software & Data | Consumer Services | Corporate | Reciprocal Segment | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||
| Revenue | (1) | $ | 157,073 | $ | 89,167 | $ | 69,137 | $ | — | $ | 182,090 | $ | (59,619) | $ | 437,848 | |||||||||||||||||||||||||||||
| Cost of revenue | 77,063 | 23,748 | 14,755 | — | 134,850 | (14,496) | 235,920 | |||||||||||||||||||||||||||||||||||||
| Gross Profit | 80,010 | 65,419 | 54,382 | — | 47,240 | (45,123) | 201,928 | |||||||||||||||||||||||||||||||||||||
| Significant expenses: | ||||||||||||||||||||||||||||||||||||||||||||
| Selling and marketing | 52,571 | 40,147 | 33,896 | 2,109 | 38,214 | (44,064) | 122,873 | |||||||||||||||||||||||||||||||||||||
| Product and technology | 221 | 16,662 | 4,265 | 20,504 | 7,545 | (1,059) | 48,138 | |||||||||||||||||||||||||||||||||||||
| General and administrative | 6,827 | 13,111 | 8,541 | 56,964 | 9,806 | — | 95,249 | |||||||||||||||||||||||||||||||||||||
| Provision for doubtful accounts | — | 1,189 | 520 | — | (1,470) | — | 239 | |||||||||||||||||||||||||||||||||||||
| Other segment items: | ||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | (2) | (3,943) | (15,498) | (3,803) | ||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | (2) | (1,199) | (4,272) | (1,993) | ||||||||||||||||||||||||||||||||||||||||
| Change in fair value of contingent consideration | — | (909) | 4,350 | |||||||||||||||||||||||||||||||||||||||||
| Restructuring and other costs | (104) | (765) | (305) | |||||||||||||||||||||||||||||||||||||||||
| Acquisition and other transaction costs | — | (20) | — | |||||||||||||||||||||||||||||||||||||||||
| Other gains and losses | (3) | (6,175) | — | 112 | ||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA (Loss) | $ | 31,812 | $ | 15,774 | $ | 8,799 | ||||||||||||||||||||||||||||||||||||||
| Other income (expense): | ||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | (7,394) | (42,536) | ||||||||||||||||||||||||||||||||||||||||||
| Change in fair value of private warrant liability | — | 691 | ||||||||||||||||||||||||||||||||||||||||||
| Change in fair value of derivatives | — | 5,869 | ||||||||||||||||||||||||||||||||||||||||||
| Gain on extinguishment of debt | — | 27,436 | ||||||||||||||||||||||||||||||||||||||||||
| Investment income and realized gains and losses, net of investment expenses | 11,237 | 13,697 | ||||||||||||||||||||||||||||||||||||||||||
| Other income | — | 28,702 | ||||||||||||||||||||||||||||||||||||||||||
| Income tax expense | — | (2,117) | ||||||||||||||||||||||||||||||||||||||||||
| Net loss | $ | (3,012) | $ | (32,829) | ||||||||||||||||||||||||||||||||||||||||
______________________________________
(1)Revenue includes intersegment revenues of $141.3 million in Insurance Services (which includes fees, commissions, and reinsurance premiums paid by the Reciprocal to Insurance Services), $2.1 million in Software & Data, and $(83.8) million revenue offsets in the Reciprocal Segment.
(2)Depreciation, amortization, and stock-based compensation are included in Cost of revenue, Selling and marketing, Product and technology, and General and administrative lines above and are excluded from Adjusted EBITDA (Loss).
(3)Other gains and losses primarily include investment income and some recoveries of reinsurance losses.
| Year Ended December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
| Insurance Services | Software & Data | Consumer Services | Corporate | Reciprocal Segment | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||
| Revenue | (1) | $ | 125,779 | $ | 84,948 | $ | 77,531 | $ | — | $ | 155,752 | $ | (13,708) | $ | 430,302 | |||||||||||||||||||||||||||||
| Cost of revenue | 51,358 | 23,195 | 21,122 | — | 146,640 | (12,908) | 229,407 | |||||||||||||||||||||||||||||||||||||
| Gross Profit | 74,421 | 61,753 | 56,409 | — | 9,112 | (800) | 200,895 | |||||||||||||||||||||||||||||||||||||
| Significant expenses: | ||||||||||||||||||||||||||||||||||||||||||||
| Selling and marketing | 19,206 | 38,222 | 39,103 | 3,419 | 45,144 | (791) | 144,303 | |||||||||||||||||||||||||||||||||||||
| Product and technology | 2,230 | 18,478 | 4,058 | 21,775 | 4,925 | (9) | 51,457 | |||||||||||||||||||||||||||||||||||||
| General and administrative | 12,307 | 13,181 | 12,143 | 54,293 | 9,153 | — | 101,077 | |||||||||||||||||||||||||||||||||||||
| Provision for doubtful accounts | — | 911 | 348 | — | 35,921 | — | 37,180 | |||||||||||||||||||||||||||||||||||||
| Impairment loss on intangible assets and goodwill | — | 2,021 | — | 55,211 | — | — | 57,232 | |||||||||||||||||||||||||||||||||||||
| Other segment items: | ||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | (2) | (4,098) | (15,037) | (3,470) | ||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | (2) | (1,628) | (4,481) | (1,827) | ||||||||||||||||||||||||||||||||||||||||
| Change in fair value of contingent consideration | — | 1,505 | 4,089 | |||||||||||||||||||||||||||||||||||||||||
| Impairment loss on intangible assets and goodwill | — | (2,021) | — | |||||||||||||||||||||||||||||||||||||||||
| Restructuring and other costs | (308) | (185) | (248) | |||||||||||||||||||||||||||||||||||||||||
| Acquisition and other transaction costs | — | (3) | — | |||||||||||||||||||||||||||||||||||||||||
| Other gains and losses | (3) | (876) | (216) | — | ||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA (Loss) | $ | 47,588 | $ | 9,378 | $ | 2,213 | ||||||||||||||||||||||||||||||||||||||
| Other income (expense): | ||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | (2,227) | (31,828) | ||||||||||||||||||||||||||||||||||||||||||
| Change in fair value of earnout liability | — | 44 | ||||||||||||||||||||||||||||||||||||||||||
| Change in fair value of private warrant liability | — | (444) | ||||||||||||||||||||||||||||||||||||||||||
| Change in fair value of derivatives | — | (4,261) | ||||||||||||||||||||||||||||||||||||||||||
| Gain on extinguishment of debt | — | 81,354 | ||||||||||||||||||||||||||||||||||||||||||
| Investment income and realized gains and losses, net of investment expenses | 7,383 | 8,285 | ||||||||||||||||||||||||||||||||||||||||||
| Other income (expense) | — | 3,893 | ||||||||||||||||||||||||||||||||||||||||||
| Income tax expense | — | (622) | ||||||||||||||||||||||||||||||||||||||||||
| Net loss | $ | (80,875) | $ | (133,933) | ||||||||||||||||||||||||||||||||||||||||
______________________________________
(1)Revenue includes intersegment revenues of $98.7 million in Insurance Services (which includes fees, commissions, and reinsurance premiums paid by the Reciprocal to Insurance Services), $0.8 million in Software & Data, and $(85.8) million revenue offsets in the Reciprocal Segment.
(2)Depreciation, amortization, and stock-based compensation are included in Cost of revenue, Selling and marketing, Product and technology, and General and administrative lines above and are excluded from Adjusted EBITDA (Loss).
(3)Other gains and losses primarily include investment income and some recoveries of reinsurance losses.
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Segment Profitability Measures: | ||||||||||||||||||||
| Insurance Services Adjusted EBITDA (Loss) | $ | 99,738 | $ | 31,812 | $ | 47,588 | ||||||||||||||
| Software & Data Adjusted EBITDA (Loss) | 18,902 | 15,774 | 9,378 | |||||||||||||||||
| Consumer Services Adjusted EBITDA (Loss) | 4,792 | 8,799 | 2,213 | |||||||||||||||||
| Reciprocal Segment Net Income (loss) | 18,679 | (3,012) | (80,875) | |||||||||||||||||
| Subtotal | 142,111 | 53,373 | (21,696) | |||||||||||||||||
| Reconciling items: | ||||||||||||||||||||
| Corporate expenses | $ | (46,828) | $ | (52,295) | $ | (61,141) | ||||||||||||||
| Interest expense | (51,476) | (42,647) | (31,463) | |||||||||||||||||
| Income tax expense | (366) | (2,117) | (622) | |||||||||||||||||
| Depreciation and amortization | (20,617) | (25,499) | (24,361) | |||||||||||||||||
| Gain on extinguishment of debt | 395 | 27,436 | 81,354 | |||||||||||||||||
| Other income, net | 7,483 | 30,713 | 5,755 | |||||||||||||||||
| Impairment loss on intangible assets and goodwill | — | — | (57,232) | |||||||||||||||||
| Stock-based compensation expense | (28,952) | (27,181) | (20,709) | |||||||||||||||||
| Mark-to-market gains | 15,666 | 10,002 | 1,003 | |||||||||||||||||
| Restructuring and other costs | (1,761) | (4,185) | (4,015) | |||||||||||||||||
| Acquisition and other transaction costs | (337) | (429) | (806) | |||||||||||||||||
| Net income (loss) | $ | 15,318 | $ | (32,829) | $ | (133,933) | ||||||||||||||
The CODM does not review assets on a segment basis. As of December 31, 2025, and 2024, goodwill for the Software & Data segment was $157.4 million and was $34.5 million for the Consumer Services segment (see Note 8, Intangible Assets and Goodwill for additional information).
All of our revenue is generated in the United States, except for an immaterial amount. As of December 31, 2025, and 2024, we did not have material assets located outside of the United States.
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 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.