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Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information
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. Management references the Insurance Services, Software & Data, and Consumer Services segments, together with corporate expenses, as “Porch Shareholder Interest.” Our fourth segment, the Reciprocal Segment, is managed, but not owned, by Porch Group 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 rather than the owner. In connection with the formation of the Reciprocal on January 1, 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. As of 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 non-catastrophic weather 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 Group, Inc. 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). The CODM uses Net Income (Loss) instead of Adjusted EBITDA (Loss) for this segment because he reviews interest expense on the surplus note created as part of the formation of the Reciprocal. Adjusted EBITDA (Loss), by definition, excludes interest expense.
As a result of the formation of the Reciprocal, beginning in 2025, we will allocate 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, certain product and technology, accounting, human resources, legal, general and administrative, and other income, expenses, gain and losses.
Three Months Ended June 30, 2025
Insurance ServicesSoftware & DataConsumer ServicesCorporateReciprocal SegmentEliminationsTotal
Revenue(1)67,390 24,013 17,650 — 55,409 (45,167)119,295 
Cost of revenue9,526 5,846 2,414 — 23,896 1,740 43,422 
Gross Profit57,864 18,167 15,236 — 31,513 (46,907)75,873 
Significant expenses:
Selling and marketing37,025 9,226 10,465 398 3,635 (33,891)26,858 
Product and technology2,539 4,625 1,067 4,287 558 — 13,076 
General and administrative5,313 2,622 3,089 13,028 19,854 (13,016)30,890 
Other segment items:
Depreciation and amortization(2)(85)(2,951)(840)
Stock-based compensation expense(2)(1,039)(897)(437)
Interest income on intercompany surplus notes(3,890)— — 
Other gains and losses(3)(1,563)— — 
Restructuring costs(84)— (65)
Acquisition and other transaction costs(9)— — 
Adjusted EBITDA (Loss)$19,657 $5,542 $1,957 
Other income (expense):
Interest expense(30)(12,056)
Change in fair value of private warrant liability— (2,878)
Change in fair value of derivatives— 12,853 
Gain on extinguishment of debt— 34 
Investment income and realized gains and losses, net of investment expenses2,221 2,665 
Other income— 1,493 
Interest expense on intercompany surplus notes(3,890)— 
Income tax expense (provision)(99)1,087 
Net income5,668 8,247 
Net income attributable to the Reciprocal5,668 
Net income attributable to Porch$2,579 
______________________________________
(1)Revenue includes intersegment revenues of $60.6 million in Insurance Services (which includes fees and commissions paid by the Reciprocal to Insurance Services), $2.0 million in Software & Data, and $(17.5) 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 includes investment income and some recoveries of reinsurance losses.
Three Months Ended June 30, 2024
Insurance ServicesSoftware & DataConsumer ServicesCorporateReciprocal SegmentEliminationsTotal
Revenue(1)34,080 23,173 18,858 — 48,739 (14,006)110,844 
Cost of revenue19,459 5,846 3,790 — 69,071 (4,120)94,046 
Gross Profit14,621 17,327 15,068 — (20,332)(9,886)16,798 
Significant expenses:
Selling and marketing12,058 10,400 10,614 575 9,436 (9,886)33,197 
Product and technology86 4,586 1,052 5,297 1,906 — 12,927 
General and administrative1,701 3,411 2,321 14,122 1,598 — 23,153 
Other segment items:
Depreciation and amortization(2)(993)(3,796)(917)
Investment income and realized gains, net of investment expenses
Stock-based compensation expense(2)(392)(1,271)(561)
Change in fair value of contingent consideration— — 1,351 
Restructuring costs(9)(39)(161)
Other gains and losses(3)(1,668)— 217 
Adjusted EBITDA (Loss)3,838 4,036 1,152 
Other income (expense):
Interest expense(1,716)(10,326)
Change in fair value of private warrant liability— 1,451 
Change in fair value of derivatives— (8,207)
Investment income and realized gains and losses, net of investment expenses2,793 3,526 
Other income (expense)— 2,400 
Income tax benefit (expense)— (688)
Net loss(32,195)(64,323)
______________________________________
(1)Revenue includes intersegment revenues of $30.1 million in Insurance Services (which includes fees and commissions paid by the Reciprocal Segment to Insurance Services), $0.2 million in Software & Data, and $(16.3) 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 includes investment income and some recoveries of reinsurance losses.
Six Months Ended June 30, 2025
Insurance ServicesSoftware & DataConsumer ServicesCorporateReciprocal SegmentEliminationsTotal
Revenue(1)117,196 46,012 32,371 — 95,347 (66,886)224,040 
Cost of revenue17,007 11,352 4,904 — 50,145 (689)82,719 
Gross Profit100,189 34,660 27,467 — 45,202 (66,197)141,321 
Significant expenses:
Selling and marketing52,552 18,395 20,263 806 11,046 (46,688)56,374 
Product and technology4,990 8,913 2,198 8,483 1,693 — 26,277 
General and administrative9,690 5,130 6,390 25,729 27,457 (19,509)54,887 
Other segment items:
Depreciation and amortization(2)(176)(6,430)(1,725)
Stock-based compensation expense(2)(1,718)(1,453)(825)
Interest income on intercompany surplus notes(7,564)— — 
Change in fair value of contingent consideration— — 28 
Restructuring costs(129)(19)(149)
Other gains and losses(3)(2,883)— — 
Acquisition and other transaction costs(39)11 — 
Adjusted EBITDA (Loss)$45,466 $10,113 $1,287 
Other income (expense):
Interest expense(81)(23,302)
Change in fair value of private warrant liability— (3,610)
Change in fair value of derivatives— 19,526 
Gain on extinguishment of debt— 34 
Investment income and realized gains and losses, net of investment expenses4,636 5,475 
Other income— 9,893 
Interest expense on intercompany surplus notes(7,564)— 
Income tax expense (provision)(988)184 
Net income$1,009 11,983 
Net income attributable to the Reciprocal1,009 
Net income attributable to Porch$10,974 
______________________________________
(1)Revenue includes intersegment revenues of $106.0 million in Insurance Services (which includes fees and commissions paid by the Reciprocal to Insurance Services), $4.0 million in Software & Data, and $(43.1) 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 includes investment income and some recoveries of reinsurance losses.
Six Months Ended June 30, 2024
Insurance ServicesSoftware & DataConsumer ServicesCorporateReciprocal SegmentEliminationsTotal
Revenue(1)81,439 44,308 35,044 — 96,234 (30,738)226,287 
Cost of revenue44,867 11,501 7,323 — 115,678 (6,957)172,412 
Gross Profit36,572 32,807 27,721 — (19,444)(23,781)53,875 
Significant expenses:
Selling and marketing28,077 20,402 18,991 1,223 22,233 (23,781)67,145 
Product and technology448 8,801 1,979 10,617 3,374 — 25,219 
General and administrative3,344 7,948 5,921 27,591 3,854 — 48,658 
Other segment items:
Depreciation and amortization(2)(1,985)(7,586)(2,009)
Stock-based compensation expense(2)(734)(2,343)(1,061)
Change in fair value of contingent consideration— (909)1,209 
Restructuring costs(17)(96)(160)
Other gains and losses(3)(3,314)— 216 
Adjusted EBITDA (Loss)$10,753 $6,590 $2,635 
Other income (expense):
Interest expense(3,751)(21,113)
Change in fair value of private warrant liability— 1,026 
Change in fair value of derivatives— (6,724)
Gain on extinguishment of debt— 4,891 
Investment income and realized gains and losses, net of investment expenses5,717 7,170 
Other income (expense)— 25,078 
Income tax benefit (expense)— (866)
Net loss$(46,939)$(77,685)
______________________________________
(1)Revenue includes intersegment revenues of $74.2 million in Insurance Services, $0.5 million in Software & Data, and $(43.9) 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 includes investment income and some recoveries of reinsurance losses.
The following table presents a reconciliation of segment profitability measures to consolidated net income (loss).
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Segment Profitability Measures:
Insurance Services Adjusted EBITDA (Loss)$19,657 $3,838 $45,466 $10,753 
Software & Data Adjusted EBITDA (Loss)5,542 4,036 10,113 6,590 
Consumer Services Adjusted EBITDA (Loss)1,957 1,152 1,287 2,635 
Reciprocal Segment Net Income (loss)5,668 (32,195)1,009 $(46,939)
Subtotal32,824 (23,169)57,875 (26,961)
Reconciling items:
Corporate expenses(11,526)(12,230)$(24,375)$(27,257)
Interest expense(12,026)(10,451)(23,221)(21,043)
Income tax provision1,186 (688)1,172 (866)
Depreciation and amortization(4,461)(6,198)(9,485)(12,508)
Gain (loss) on extinguishment of debt34 — 34 4,891 
Other income, net95 2,545 7,257 25,887 
Stock-based compensation expense(8,000)(7,105)(12,910)(12,473)
Mark-to-market gains (losses)9,975 (5,404)15,944 (5,397)
Restructuring costs(1)187 (1,635)(132)(1,792)
Acquisition and other transaction costs(41)12 (176)(166)
Net income (loss)$8,247 $(64,323)$11,983 $(77,685)
______________________________________
(1) Primarily consists of cost related to forming a reciprocal exchange.

The CODM does not review assets on a segment basis other than the assets of the Reciprocal Segment that are presented on the unaudited Condensed Consolidated Balance Sheets as required for VIE disclosure.
All of our revenue is generated in the United States except for an immaterial amount. As of June 30, 2025, and December 31, 2024, we did not have material assets located outside of the United States.