Porch Group (PRCH) Delivers Record EBITDA Growth and High Margins for 2025
Porch Group Inc. (NASDAQ:PRCH) is one of the best small cap tech stocks with high upside potential. On February 11, Porch Group reported earnings for 2025, highlighted by an 11-fold increase in adjusted EBITDA, which reached $77 million. The company’s Q4 featured $112 million in revenue and an impressive 81% gross margin, reflecting strong operational discipline. This growth was supported by the successful launch of Porch Insurance in Texas and a surge in active agencies and quote volumes.
Despite these records, the company faces headwinds from a sluggish housing market, which has weighed on transaction volumes within its software and data segments. Management noted that a decline in stock price during Q4 negatively impacted the statutory surplus, and they do not anticipate the double-digit price increases seen in previous years to continue into 2026.
Looking forward, Porch Group Inc. (NASDAQ:PRCH) has set ambitious 2026 targets, including a revenue range of $475 to $490 million and a reciprocal written premium/RWP goal of $600 million. The company expressed long-term confidence in scaling to $3 billion in RWP, planning to use its excess surplus for potential M&A opportunities, renewal rights deals, and expanded agent partnerships across the country.
Porch Group Inc. (NASDAQ:PRCH) develops and sells software and data solutions, manages insurance services, and provides consumer services related to homeownership in the US. It operates through four segments: Insurance Services, Software & Data, Consumer Services, and the Reciprocal Segment.
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