Porch GroupPRCH +6.25%64 Gross Margin % is 75.00% as of Mar. 2026, which is 15% above its 10-year median of 65.25. GuruFocus rates PRCH with a GF Score™ of 64/100 and a GF Value™ of $3.98 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 60 Insurance companies, Porch Group ranks better than 86.67% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Porch Group's Gross Profit for the
three
months ended in Mar. 2026 was $90.8 Mil. Porch Group's Revenue for the
three
months ended in Mar. 2026 was $121.1 Mil. Therefore, Porch Group's Gross Margin % for the quarter that ended in Mar. 2026 was 75.00%.
The historical rank and industry rank for Porch Group's Gross Margin % or its related term are showing as below:
PRCH'
s Gross Margin % Range Over the Past 10 Years
Min: 46.33 Med: 65.25 Max: 80.07
Current: 80.07
During the past 7 years, the highestGross Margin % of Porch Group was 80.07%. The lowest was 46.33%. And the median was 65.25%.
PRCH's Gross Margin % is ranked better than 86.67% of 60
companies
in the Insurance industry
Industry Median: 42.375
vs PRCH: 80.07
Porch Group had a gross margin of 75.00% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Porch Group was 0.00% per year.
Porch Group (NAS:PRCH) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Porch Group had a gross margin of 75.00% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Porch Group Gross Margin % Related Terms
Porch Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Porch Group's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PRCH vs KMPR, UFCS, PRA: Gross Margin % Comparison
For the Insurance - Property & Casualty subindustry, Porch Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Porch Group Gross Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, Porch Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Porch Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Porch Group (PRCH) has a Gross Margin % of 75.00% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Porch Group and its competitors. This is 15% above median its historical median of 65.25. Over the past decade, Porch Group's Gross Margin % has ranged from 46.33 to 80.07. According to the industry distribution chart, Porch Group ranks #8 out of 60 companies in the Insurance industry, placing it in the top 13.3%.
Is Porch Group's Gross Margin % too high?
Porch Group's current Gross Margin % of 75.00% is 15% above median its 10-year median of 65.25. Over the past 10 years, this metric has ranged from a low of 46.33 to a high of 80.07. The Insurance industry median Gross Margin % is 42.38. Porch Group's value of 75.00% is 77% above this industry median. Based on the distribution chart, Porch Group ranks #8 out of 60 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Porch Group has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Porch Group's Gross Margin % compare to KMPR and UFCS?
According to the Insurance industry distribution chart, Porch Group ranks #8 out of 60 companies for Gross Margin %. This places Porch Group in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 42.38. Porch Group's value of 75.00% is 77% above this benchmark. Historically, Porch Group's own Gross Margin % has ranged from 46.33 to 80.07 over the past decade. While the company's 10-year median is 65.25 vs. the industry median of 42.38, Porch Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Insurance company?
The median Gross Margin % among Insurance companies is 42.38, based on 60 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Porch Group's current Gross Margin % of 75.00% is 77% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Porch Group and its competitors. For the Insurance industry, the median Gross Margin % is 42.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Porch Group's current Gross Margin % is 75.00%, which is 15% above median its own 10-year median of 65.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Porch Group stock overvalued right now?
Based on GuruFocus' analysis, Porch Group (PRCH) is currently considered Significantly Overvalued. The stock's GF Value™ is $3.98, compared to a current price of $15.98 — trading 301.5% above its estimated fair value. The current Gross Margin % is 75.00%, which is 15% above median its 10-year median of 65.25 and 77% above the Insurance industry median of 42.38. Porch Group's overall GF Score™ is 64/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Porch Group (PRCH), the current Gross Margin % is 75.00% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Porch Group (PRCH) Overvalued in 2026?
Based on GuruFocus' analysis, Porch Group stock appears to be overvalued.
The current stock price of $15.98 is trading 301.5% above its estimated GF Value™ of $3.98.
GuruFocus considers Porch Group to be Significantly Overvalued.
Key valuation signals for PRCH:
Gross Margin %: 75.00% (15% above median its 10-year median of 65.25)
GF Value™: $3.98 vs. price of $15.98 (301.5% above fair value)
Industry Position: 77% above the Insurance median (#8 of 60)
No single metric tells the full story. See the PRCH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Porch Group Inc is a vertical software company reinventing the home services and insurance industries. It has four reportable segments: Insurance Services, Software & Data, Consumer Services, and Corporate. The majority of revenue is from the Insurance segment. The 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.
64GF Score
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