Porch Group, Inc. (PRCH) AI Stock Analysis

Porch Group, Inc. operates a software platform serving the home services and insurance sectors in the United States and Canada. The company is organized into two primary segments: Vertical Software and Insurance. Under Vertical Software, it provides software tools and services to home services companies, utilizing brands such as Floify, HireAHelper, ISN, iRoofing, Palm-Tech, Porch.com, Rynoh, and V12 across inspection, moving, warranties, security, and utility services. In its Insurance segment, Porch Group operates a risk-bearing carrier and independent agency offering property and casualty, home, auto, flood, and umbrella policies through brands including American Home Protect, Elite Insurance Group, and Homeowners of America.

Porch Group generated a 5-year revenue CAGR of 46.2% from FY2020 to FY2025, with revenue expanding from $192.4M in FY2021 to $482.4M in FY2025. Annual net income improved from -$106.6M in FY2021 to $15.3M in FY2025, accompanied by a gross margin of 70.5% and an operating margin of 7.6%. Over the trailing twelve months, revenue totaled $513.6M with an operating margin of -2.9% and a net profit margin of -2.6%. In the latest quarter ended June 30, 2026, quarterly revenue grew 11.7% year-over-year, while quarterly earnings increased 155.3%.

As of June 30, 2026, Porch Group held $218.5M in cash and short-term investments and $405.3M in total debt, resulting in net debt of $186.8M. Total assets stood at $816.0M, the current ratio was 1.37, and shareholders' equity was -$11.8M. Operating cash flow improved to $66.4M in FY2025, supporting free cash flow of $52.1M after capital expenditures of $14.4M. Over the trailing five years, the company's share count increased 18.6%.

At a last close of $17.50, Porch Group has a market capitalization of $1.99B and an enterprise value of $2.07B. The stock trades at a forward P/E of 69.4x and an EV/EBITDA of 29.9x, both higher than the median of its US-listed Financial Services peers of 10.8x and 11.7x, respectively. Its price-to-sales ratio stands at 3.9x compared to the peer median of 3.2x. Over the past year, PRCH generated a return of 16.3%, trailing the S&P 500 (SPY) return of 16.8%, though its year-to-date return reached 91.7%.

Wall Street coverage consists of 6 Strong Buy ratings, 1 Hold rating, and 0 Sell ratings. The mean price target is $21.79, which is 24.5% above the last close of $17.50. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $514.1M and EPS of $0.08, representing 366.7% EPS growth. Porch Group beat EPS estimates in 3 of the last 4 quarters, and its next earnings release is scheduled for November 4, 2026.

This page is an AI-written research summary of Porch Group, Inc. (PRCH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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