(PRCH) Porch - Overview
Sector: Financial Services | Industry: Insurance - Property & Casualty | Exchange: NASDAQ (USA) | Market Cap: 1.046m USD | Total Return: -3.7% in 12m
Avg Turnover: 23.0M
Qual. Beats: 0
Rev. Trend: 67.6%
Qual. Beats: 2
Warnings
Negative Equity with losses - insolvent profile
Below Avwap Earnings
Tailwinds
No distinct edge detected
Porch Group, Inc. (PRCH) functions as a vertical software and insurance platform focused on the residential homeownership lifecycle. The company operates through four distinct segments: Insurance Services, Software & Data, Consumer Services, and the Reciprocal Segment. Its business model leverages software-as-a-service (SaaS) and data solutions to capture early-stage homebuyer leads through inspection, mortgage, and title companies, which are then monetized through insurance policies and moving-related services.
The company utilizes a reciprocal insurance structure, a model where policyholders technically own the insurance entity while Porch generates recurring revenue through management fees and administrative services. In the broader application software sector, companies increasingly integrate financial services-often referred to as embedded finance-to increase the average revenue per user and improve customer retention. For deeper insights into these revenue streams, ValueRay provides comprehensive data for further analysis. Headquartered in Seattle, Porch Group maintains a diverse portfolio ranging from property underwriting and risk management to warranty products and home security setup.
- Transition to reciprocal insurance model reduces balance sheet risk and capital requirements
- Integrated software ecosystem drives low-cost lead generation for high-margin insurance products
- Severe weather events and catastrophic loss ratios impact insurance segment profitability
- High mortgage rates and cooling housing turnover reduce demand for moving services
- Regulatory approval and expansion of insurance underwriting licenses facilitate national revenue growth
| Net Income: -8.67m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 17.09 > 1.0 |
| NWC/Revenue: -12.15% < 20% (prev -0.61%; Δ -11.54% < -1%) |
| CFO/TA 0.11 > 3% & CFO 90.6m > Net Income -8.67m |
| Net Debt (215.9m) to EBITDA (96.8m): 2.23 < 3 |
| Current Ratio: 0.82 > 1.5 & < 3 |
| Outstanding Shares: last quarter (106.1m) vs 12m ago -6.38% < -2% |
| Gross Margin: 72.37% > 18% (prev 0.55%; Δ 7.18k% > 0.5%) |
| Asset Turnover: 60.02% > 50% (prev 53.24%; Δ 6.78% > 0%) |
| Interest Coverage Ratio: 1.35 > 6 (EBITDA TTM 96.8m / Interest Expense TTM 54.9m) |
| A: -0.07 (Total Current Assets 270.1m - Total Current Liabilities 328.7m) / Total Assets 806.6m |
| B: -0.81 (Retained Earnings -655.5m / Total Assets 806.6m) |
| C: 0.09 (EBIT TTM 74.2m / Avg Total Assets 804.4m) |
| D: -0.84 (Book Value of Equity -655.8m / Total Liabilities 780.3m) |
| Altman-Z'' = -3.39 = D |
| DSRI: 0.48 (Receivables 60.9m/112.9m, Revenue 482.8m/427.1m) |
| GMI: 0.76 (GM 72.37% / 55.17%) |
| AQI: 1.10 (AQ_t 0.63 / AQ_t-1 0.57) |
| SGI: 1.13 (Revenue 482.8m / 427.1m) |
| TATA: -0.12 (NI -8.67m - CFO 90.6m) / TA 806.6m) |
| Beneish M = -3.65 (Cap -4..+1) = AAA |
As of May 26, 2026, the stock is trading at USD 9.56 with a total of 1,186,800 shares traded.
Over the past week, the price has changed by -2.85%,
over one month by +18.76%,
over three months by +27.81% and
over the past year by -3.73%.
Porch has received a consensus analysts rating of 4.60. Therefore, it is recommended to buy PRCH.
- StrongBuy: 4
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 16.3 | 70% |
P/E Forward = 84.0336
P/S = 2.0969
P/B = 1.7993
Revenue TTM = 482.8m USD
EBIT TTM = 74.2m USD
EBITDA TTM = 96.8m USD
Long Term Debt = 391.3m USD (from longTermDebt, last quarter)
Short Term Debt = 7.78m USD (from shortTermDebt, last quarter)
Debt = 400.9m USD (from shortLongTermDebtTotal, last quarter) + Leases 1.90m
Net Debt = 215.9m USD (calculated: Debt 400.9m - CCE 185.0m)
Enterprise Value = 1.26b USD (1.05b + Debt 400.9m - CCE 185.0m)
Interest Coverage Ratio = 1.35 (Ebit TTM 74.2m / Interest Expense TTM 54.9m)
EV/FCF = 17.43x (Enterprise Value 1.26b / FCF TTM 72.4m)
FCF Yield = 5.74% (FCF TTM 72.4m / Enterprise Value 1.26b)
FCF Margin = 14.99% (FCF TTM 72.4m / Revenue TTM 482.8m)
Net Margin = -1.80% (Net Income TTM -8.67m / Revenue TTM 482.8m)
Gross Margin = 72.37% ((Revenue TTM 482.8m - Cost of Revenue TTM 133.4m) / Revenue TTM)
Gross Margin QoQ = 75.00% (prev 77.02%)
Tobins Q-Ratio = 1.56 (Enterprise Value 1.26b / Total Assets 806.6m)
Interest Expense / Debt = 13.70% (Interest Expense 54.9m / Debt 400.9m)
Taxrate = 48.25% (1.80m / 3.74m)
NOPAT = 38.4m (EBIT 74.2m * (1 - 48.25%))
Current Ratio = 0.82 (Total Current Assets 270.1m / Total Current Liabilities 328.7m)
Debt / Equity = -15.79 (negative equity) (Debt 400.9m / totalStockholderEquity, last quarter -25.4m)
Debt / EBITDA = 2.23 (Net Debt 215.9m / EBITDA 96.8m)
Debt / FCF = 2.98 (Net Debt 215.9m / FCF TTM 72.4m)
Total Stockholder Equity = -26.8m (last 4 quarters mean from totalStockholderEquity)
RoA = -1.08% (Net Income -8.67m / Total Assets 806.6m)
RoE = -1.38% (Net Income TTM -8.67m / Total Stockholder Equity 628.7m)
RoCE = 7.28% (EBIT 74.2m / Capital Employed (Equity 628.7m + L.T.Debt 391.3m))
RoIC = 7.91% (NOPAT 38.4m / Invested Capital 485.7m)
WACC = 12.61% (E(1.05b)/V(1.45b) * Re(14.72%) + D(400.9m)/V(1.45b) * Rd(13.70%) * (1-Tc(0.48)))
Discount Rate = 14.72% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 71.91 | Cagr: 4.10%
[DCF] Terminal Value 62.06% ; FCFF base≈72.4m ; Y1≈72.7m ; Y5≈77.0m
[DCF] Fair Price = 4.38 (EV 695.1m - Net Debt 215.9m = Equity 479.2m / Shares 109.4m; r=12.61% [WACC]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.09 | # QB: 0
Revenue Correlation: 67.64 | Revenue CAGR: 8.08% | SUE: 1.14 | # QB: 2
EPS current Quarter (2026-06-30): EPS=-0.02 | Chg30d=+63.05% | Revisions=+20% | Analysts=5
EPS next Quarter (2026-09-30): EPS=0.01 | Chg30d=-86.36% | Revisions=N/A | Analysts=4
EPS current Year (2026-12-31): EPS=-0.04 | Chg30d=+52.94% | Revisions=-20% | GrowthEPS=-33.3% | GrowthRev=+19.9%
EPS next Year (2027-12-31): EPS=0.13 | Chg30d=-39.64% | Revisions=+20% | GrowthEPS=+435.0% | GrowthRev=+16.3%
[Analyst] Revisions Ratio: +20%