Segment Information

9 Months Ended

Sep. 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. Three of these segments are owned by Porch — Insurance Services, Software & Data, and Consumer Services. Management references the Insurance Services, Software & Data, and Consumer Services segments, together with corporate expenses, as “Porch Shareholder Interest.” The fourth segment, the Reciprocal Segment, is managed, but not owned, by Porch 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. 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). These measures are consistent with the information that is regularly provided to and reviewed by the CODM in assessing segment performance and allocating resources. The CODM utilizes Net Income (Loss) rather than Adjusted EBITDA (Loss) for the Reciprocal Segment because Net Income (Loss) includes interest expense associated with the surplus note issued in connection with the formation of the Reciprocal. This interest is a significant component of the Reciprocal Segment’s financial performance, is regularly provided to the CODM, and is therefore considered in his evaluation. Adjusted EBITDA (Loss), by definition, excludes interest expense.

Beginning in 2025, following the formation of the Reciprocal, we began allocating 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, product and technology, accounting, human resources, legal, general and administrative, and other income, expenses, gain and losses.

		Three Months Ended September 30, 2025
		Insurance Services		Software & Data		Consumer Services		Corporate	Reciprocal Segment	Eliminations	Total
Revenue	(1)	73,845		24,635		19,367		—	51,941	(51,706)	118,082
Cost of revenue		11,595		6,480		2,758		—	11,509	(1,207)	31,135
Gross Profit		62,250		18,155		16,609		—	40,432	(50,499)	86,947
Significant expenses:
Selling and marketing		35,719		9,832		11,644		483	4,896	(32,394)	30,180
Product and technology		2,583		4,864		1,224		4,121	587	—	13,379
General and administrative		5,147		2,564		2,479		14,237	20,731	(18,105)	27,053
Other segment items:
Depreciation and amortization	(2)	(84)		(3,409)		(808)
Stock-based compensation expense	(2)	(1,183)		(593)		(422)
Interest income on intercompany surplus notes		(3,756)		—		—
Change in fair value of contingent consideration		—		—		8
Other gains and losses	(3)	(1,484)		—		—
Restructuring and other costs		8		(220)		(9)
Acquisition and other transaction costs		—		(11)		—
Adjusted EBITDA (Loss)		$	25,300	$	5,128	$	2,493
Other income (expense):
Interest expense									(10)		(13,963)
Change in fair value of private warrant liability									—		(5,702)
Change in fair value of derivatives									—		1,785
Gain on extinguishment of debt									—		361
Investment income and realized gains and losses, net of investment expenses									2,585		2,989
Other income									—		1,535
Interest expense on intercompany surplus notes									(3,756)		—
Income tax expense (provision)									(3,162)		(4,322)
Net income (loss)									9,875		(982)
Net income attributable to the Reciprocal											9,875
Net loss attributable to Porch											$	(10,857)

______________________________________

(1)Revenue includes intersegment revenues of $66.2 million in Insurance Services (which includes fees, commissions, and reinsurance premiums paid by the Reciprocal to Insurance Services), $2.8 million in Software & Data, and $(17.3) 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.

		Three Months Ended September 30, 2024
		Insurance Services	Software & Data	Consumer Services	Corporate	Reciprocal Segment	Eliminations	Total
Revenue	(1)	37,147	23,127	17,800	—	49,153	(16,027)	111,200
Cost of revenue		27,488	5,826	4,285	—	17,708	(5,824)	49,483
Gross Profit		9,659	17,301	13,515	—	31,445	(10,203)	61,717
Significant expenses:
Selling and marketing		12,081	10,136	6,683	426	8,001	(10,094)	27,233
Product and technology		34	4,357	1,116	5,352	1,937	(109)	12,687
General and administrative		1,766	3,244	3,576	13,748	1,967	—	24,301
Other segment items:
Depreciation and amortization	(2)	(985)	(3,648)	(900)
Stock-based compensation expense	(2)	(272)	(1,194)	(539)
Change in fair value of contingent consideration		—	—	(143)
Other gains and losses	(3)	(1,512)	—	—
Restructuring and other costs		(86)	(607)	(133)
Adjusted EBITDA (Loss)		(1,367)	5,013	3,855
Other income (expense):
Interest expense						(1,618)		(10,645)
Change in fair value of private warrant liability						—		50
Change in fair value of derivatives						—		(1,048)
Gain on extinguishment of debt						—		22,545
Investment income and realized gains and losses, net of investment expenses						3,204		3,787
Other income						—		2,014
Income tax benefit (expense)						—		183
Net income						21,126		14,382

______________________________________

(1)Revenue includes intersegment revenues of $32.6 million in Insurance Services (which includes fees, commissions, and reinsurance premiums paid by the Reciprocal Segment to Insurance Services), $0.4 million in Software & Data, and $(17.0) 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.

		Nine Months Ended September 30, 2025
		Insurance Services		Software & Data		Consumer Services		Corporate	Reciprocal Segment		Eliminations	Total
Revenue	(1)	191,041		70,647		51,738		—	147,288		(118,592)	342,122
Cost of revenue		28,602		17,832		7,662		—	61,654		(1,896)	113,854
Gross Profit		162,439		52,815		44,076		—	85,634		(116,696)	228,268
Significant expenses:
Selling and marketing		88,271		28,227		31,907		1,289	15,942		(79,082)	86,554
Product and technology		7,573		13,777		3,422		12,604	2,280		—	39,656
General and administrative		14,837		7,694		8,869		39,966	48,188		(37,614)	81,940
Other segment items:
Depreciation and amortization	(2)	(260)		(9,839)		(2,533)
Stock-based compensation expense	(2)	(2,901)		(2,046)		(1,247)
Interest income on intercompany surplus notes		(11,320)		—		—
Change in fair value of contingent consideration		—		—		36
Restructuring and other costs		(121)		(239)		(158)
Other gains and losses	(3)	(4,367)		—		—
Acquisition and other transaction costs		(39)		—		—
Adjusted EBITDA (Loss)		$	70,766	$	15,241	$	3,780
Other income (expense):
Interest expense									(91)			(37,265)
Change in fair value of private warrant liability									—			(9,312)
Change in fair value of derivatives									—			21,311
Gain on extinguishment of debt									—			395
Investment income and realized gains and losses, net of investment expenses									7,221			8,464
Other income									—			11,428
Interest expense on intercompany surplus notes									(11,320)			—
Income tax expense (provision)									(4,150)			(4,138)
Net income									$	10,884		11,001
Net income attributable to the Reciprocal												10,884
Net income attributable to Porch												$	117

______________________________________

(1)Revenue includes intersegment revenues of $172.2 million in Insurance Services (which includes fees, commissions, and reinsurance premiums paid by the Reciprocal to Insurance Services), $6.8 million in Software & Data, and $(60.4) 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.

		Nine Months Ended September 30, 2024
		Insurance Services		Software & Data		Consumer Services		Corporate	Reciprocal Segment		Eliminations	Total
Revenue	(1)	118,586		67,436		52,844		—	145,387		(46,766)	337,487
Cost of revenue		72,355		17,326		11,608		—	133,387		(12,781)	221,895
Gross Profit		46,231		50,110		41,236		—	12,000		(33,985)	115,592
Significant expenses:
Selling and marketing		40,158		30,542		25,675		1,645	30,234		(33,876)	94,378
Product and technology		109		13,158		3,095		15,969	5,684		(109)	37,906
General and administrative		5,110		11,192		9,497		41,340	5,820		—	72,959
Other segment items:
Depreciation and amortization	(2)	(2,970)		(11,235)		(2,909)
Stock-based compensation expense	(2)	(1,007)		(3,538)		(1,600)
Change in fair value of contingent consideration		—		(909)		1,066
Restructuring and other costs		(104)		(703)		(294)
Other gains and losses	(3)	(4,824)		—		216
Adjusted EBITDA (Loss)		$	9,759	$	11,603	$	6,490
Other income (expense):
Interest expense									(5,369)			(31,758)
Change in fair value of private warrant liability									—			1,076
Change in fair value of derivatives									—			(7,772)
Gain on extinguishment of debt									—			27,436
Investment income and realized gains and losses, net of investment expenses									8,921			10,957
Other income									—			27,092
Income tax benefit (expense)									—			(683)
Net loss									$	(26,186)		$	(63,303)

______________________________________

(1)Revenue includes intersegment revenues of $106.7 million in Insurance Services (which includes fees, commissions, and reinsurance premiums paid by the Reciprocal to Insurance Services), $0.9 million in Software & Data, and $(60.8) 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 September 30,				Nine Months Ended September 30,
		2025		2024		2025		2024
Segment Profitability Measures:
Insurance Services Adjusted EBITDA (Loss)		$	25,300	$	(1,367)	$	70,766	$	9,759
Software & Data Adjusted EBITDA (Loss)		5,128		5,013		15,241		11,603
Consumer Services Adjusted EBITDA (Loss)		2,493		3,855		3,780		6,490
Reciprocal Segment Net Income (loss)		9,875		21,126		10,884		$	(26,186)
Subtotal		42,796		28,627		100,671		1,666
Reconciling items:
Corporate expenses		(12,295)		(13,030)		$	(36,670)	$	(40,287)
Interest expense		(13,953)		(10,883)		(37,174)		(31,926)
Income tax benefit (provision)		(1,160)		183		12		(683)
Depreciation and amortization		(4,910)		(6,042)		(14,395)		(18,550)
Gain on extinguishment of debt		361		22,545		395		27,436
Other income, net		118		2,628		7,375		28,515
Stock-based compensation expense		(7,181)		(6,735)		(20,091)		(19,208)
Mark-to-market gains (losses)		(3,909)		(1,141)		12,035		(6,538)
Restructuring and other costs	(1)	(837)		(1,668)		(969)		(3,460)
Acquisition and other transaction costs		(12)		(102)		(188)		(268)
Net income (loss)		$	(982)	$	14,382	$	11,001	$	(63,303)

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(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 September 30, 2025, and December 31, 2024, we did not have material assets located outside of the United States.