Segment Information

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Information

Note 18. Segment Information

We have two reportable segments that are also our operating segments: Insurance and Vertical Software. 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.

Our Insurance segment provides consumers with insurance and warranty products to protect their homes, earning revenue through premiums collected on policies, policy fees and commissions. The Insurance segment includes Homeowners of America (“HOA”), a wholly owned insurance carrier, other insurance-related legal entities, Porch Warranty, and other warranty brands.

Our Vertical Software segment provides software and services to customers, including but are not limited to inspection, mortgage, title, roofing, and contractor companies on a subscription and transactional basis. These accounted for 60% of total Vertical Software segment revenue in 2024. Additionally, the Vertical Software segment provides move and post-move services, which accounted for 40% of total Vertical Software segment revenue in 2024. The Vertical Software segment operates as several key businesses, offering products including inspection software and services, title insurance software, mortgage software, moving services, mover and homeowner marketing, and measurement software for roofers.

Our segment operating and financial performance measure is Segment Adjusted EBITDA (Loss). Segment Adjusted EBITDA (Loss) is defined as revenue less the following expenses associated with each segment: cost of revenue, selling and marketing, product and technology, general and administrative, and provision for doubtful accounts. Segment Adjusted EBITDA (Loss) also excludes non-cash items or items that management does not consider reflective of ongoing core operations and intersegment revenues.

We do not allocate shared expenses to the reportable segments. These expenses are included in the “Corporate & Eliminations” column in the following reconciliations. “Corporate & Eliminations” includes shared expenses such as selling and marketing; certain product and technology; accounting; human resources; legal; general and administrative; and other income, expenses, gains, and losses that are not allocated in assessing segment performance due to their function. Such transactions are excluded from the reportable segments’ results but are included in consolidated results.

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 Adjusted EBITDA (Loss).

	Year Ended December 31, 2024
	Insurance		Vertical Software		Corporate & Eliminations		Totals
Revenue from external customers	$	318,190	$	119,658	$	—	$	437,848
Intersegment revenue	—		949		(949)		—
Revenue	318,190		120,607		(949)		437,848
Significant expenses:
Cost of revenue	205,303		20,324		—		225,627
Selling and marketing	61,037		60,688		1,148		122,873
Product and technology	8,867		25,903		20,504		55,274
General and administrative	18,441		23,240		56,964		98,645
Other segment items:
Depreciation and amortization (1)	(5,761)		(17,506)		(2,255)		(25,522)
Stock-based compensation expense (1)	(1,364)		(6,100)		(19,717)		(27,181)
Change in fair value of contingent consideration	4,350		(908)		—		3,442
Losses on terminated reinsurance contracts (see Note 14)	1,324		—		—		1,324
Restructuring costs (2)	(131)		(1,044)		(3,010)		(4,185)
Acquisition and other transaction costs	—		(20)		(409)		(429)
Other gains and losses (3)	(17,312)		—		(1,879)		(19,191)
Adjusted EBITDA (Loss)	$	43,436	$	16,030	$	(52,295)	7,171
Reconciliation to consolidated operating loss
Depreciation and amortization (1)							(25,522)
Stock-based compensation expense (1)							(27,181)
Change in fair value of contingent consideration							3,442
Restructuring costs (2)							(4,185)
Acquisition and other transaction costs							(429)
Other gains and losses (3)							(19,191)
Loss on reinsurance contract (see Note 14)							1,324
Consolidated operating loss							$	(64,571)

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(1)Depreciation, amortization, and stock-based compensation expenses are included in the Sales and marketing, Product and technology, and General and administrative lines above. These expenses are not included in Adjusted EBITDA (Loss).

(2)Primarily consists of costs related to forming a reciprocal exchange.

(3)Other gains and losses primarily includes investment income and some recoveries of reinsurance losses.

	Year Ended December 31, 2023
	Insurance		Vertical Software		Corporate & Eliminations		Totals
Revenue from external customers	$	305,186	$	125,116	$	—	$	430,302
Significant expenses:
Cost of revenue	190,508		29,735		—		220,243
Selling and marketing	79,491		61,431		3,385		144,307
Product and technology	8,182		28,530		21,790		58,502
General and administrative	62,520		23,560		54,292		140,372
Other segment items:
Depreciation and amortization (1)	(5,885)		(16,775)		(1,755)		(24,415)
Stock-based compensation expense (1)	(1,409)		(6,528)		(12,772)		(20,709)
Change in fair value of contingent consideration	4,089		1,505		70		5,664
Recoveries of terminated reinsurance contracts (see Note 14)	(36,042)		—		—		(36,042)
Restructuring costs (2)	(308)		(433)		(3,274)		(4,015)
Acquisition and other transaction costs	—		(216)		(590)		(806)
Other gains and losses (3)	(8,280)		—		(5)		(8,285)
Adjusted EBITDA (Loss)	$	12,320	$	4,307	$	(61,141)	(44,514)
Reconciliation to consolidated operating loss
Depreciation and amortization (1)							(24,415)
Stock-based compensation expense (1)							(20,709)
Change in fair value of contingent consideration							5,664
Recoveries of terminated reinsurance contracts (see Note 14)							(36,042)
Restructuring costs (2)							(4,015)
Acquisition and other transaction costs							(806)
Other gains and losses (3)							(8,285)
Impairment loss on intangible assets and goodwill							(57,232)
Consolidated operating loss							$	(190,354)

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(1)Depreciation, amortization, and stock-based compensation expenses are included in the Sales and marketing, Product and technology, and General and administrative lines above. These expenses are not included in Adjusted EBITDA (Loss).

(2)Primarily consists of costs related to forming reciprocal exchange.

(3)Other gains and losses primarily includes investment income.

	Year Ended December 31, 2022
	Insurance		Vertical Software		Corporate & Eliminations		Totals
Revenue from external customers	$	121,033	$	154,915	$	—	$	275,948
Significant expenses:
Cost of revenue	62,268		45,309		—		107,577
Selling and marketing	42,193		67,339		4,316		113,848
Product and technology	8,476		30,628		20,461		59,565
General and administrative	26,515		31,937		52,167		110,619
Other segment items:
Depreciation and amortization (1)	(5,574)		(20,209)		(2,147)		(27,930)
Stock-based compensation expense (1)	(5,074)		(7,948)		(14,019)		(27,041)
Change in fair value of contingent consideration	(965)		(6,331)		352		(6,944)
Restructuring costs (2)	—		—		(647)		(647)
Acquisition and other transaction costs	(150)		(488)		(1,687)		(2,325)
Other gains and losses (3)	(1,157)		—		(16)		(1,173)
Adjusted EBITDA (Loss)	$	(5,499)	$	14,678	$	(58,780)	(49,601)
Reconciliation to consolidated operating loss
Depreciation and amortization (1)							(27,930)
Stock-based compensation expense (1)							(27,041)
Change in fair value of contingent consideration							(6,944)
Restructuring costs (2)							(647)
Acquisition and other transaction costs							(2,325)
Other gains and losses (3)							(1,173)
Impairment loss on intangible assets and goodwill							(61,386)
Consolidated operating loss							$	(177,047)

______________________________________

(1)Depreciation, amortization, and stock-based compensation expenses are included in the Sales and marketing, Product and technology, and General and administrative lines above. These expenses are not included in Adjusted EBITDA (Loss).

(2)Primarily consists of costs related to forming reciprocal exchange.

(3)Other gains and losses primarily includes investment income.

The CODM does not review assets on a segment basis. As of December 31, 2024, and 2023, goodwill for the Vertical Software segment was $191.9 million and was zero for the Insurance segment which was fully impaired during 2023 (see Note 6, 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, 2024, and 2023, we did not have material assets located outside of the United States.