Q2 2026 Porch Group Inc Earnings Call Transcript
Key Points
- Porch Group Inc (PRCH) reported positive net income attributable to Porch in Q2 2026 and expects to remain profitable for the full year and beyond.
- Adjusted EBITDA, excluding the reciprocal, grew 2.5 times year-over-year to $39 million in Q2, driven by strong operating leverage in Insurance Services.
- Insurance Services revenue grew 38% year-over-year with a 48% adjusted EBITDA margin, demonstrating high incremental margins and scalability.
- Reciprocal policies written increased 38% year-over-year, with a strong pipeline of new customers and expanding agency distribution (148% growth in producing branches).
- The reciprocal's statutory surplus reached $170 million, up 33% year-over-year, providing ample capacity to support future premium growth and a healthy balance sheet.
- The US housing market remains stagnant, negatively impacting the Software and Data and Consumer Services segments, which were relatively flat year-over-year.
- Premium per new customer declined 4% year-over-year in Q2 due to a softer insurance market and competitive pricing pressures from rivals.
- The company noted a $3 million non-recurring expense true-up benefit in Q2 that boosted margins, which is not expected to recur in future quarters.
- Conversion rates experienced a temporary dip in May due to competitors lowering prices, requiring targeted pricing adjustments to reaccelerate growth.
- The legacy product sunset in Software and Data led to a decline in total companies served, with a planned reduction of roughly 4,000 small home service contractors.
Good afternoon, and thank you for participating in Porch Group's second-quarter 2026 conference call. Earlier today, we issued our press release and filed our related Form 8-K with the SEC. The earnings release and today's presentation are available on our Investor Relations website at ir.porchgroup.com.
Before we begin, I'd like to review the company's Safe Harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995, which provides important cautions regarding forward-looking statements. Today's discussion, including responses to your questions, reflect management's views as of today, July 29, 2026. We undertake no obligation to update or revise these remarks. We will make forward-looking statements that involve risks and uncertainties, and actual results may differ materially. Please refer to the information on this slide and our SEC filings for additional detail.
We will also reference certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures are
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