v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information
Note 2. Segment Information
We have four reportable segments that are also our operating segments: Insurance Services, Software & Data, Consumer Services, and Reciprocal Segment. The Reciprocal Segment, is managed, but not owned, by Porch and is consolidated for reporting purposes in accordance with ASC Topic 810, Consolidation. 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 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 reinsurance support to improve capital efficiency for the Reciprocal. Our captive reinsurer only provides reinsurance coverage for risks with low earnings volatility.
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 for the Insurance Services, Software & Data, and Consumer Services segments. Adjusted EBITDA for each segment is defined as Gross Profit less the following expenses associated with each segment: selling and marketing, product and technology, and general and administrative. Segment Adjusted EBITDA 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 each segment’s Gross Profit and Adjusted EBITDA 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 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, by definition, excludes interest expense. Reciprocal Segment revenue includes a reduction for premiums ceded to reinsurers. Premiums ceded to our captive reinsurer and related ceding commissions are fully eliminated in consolidation.

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 accounting policies of the segments are the same as those described in Note 1, Description of Business and Summary of Significant Accounting Policies. In particular, see the Insurance Services section of the Revenue Recognition accounting policy disclosure for further discussion of intercompany revenue generated by management fees and reinsurance premiums. We account for intersegment sales as if the sales were to third parties, that is, at current market prices.
Three Months Ended June 30, 2026
Insurance ServicesSoftware & DataConsumer ServicesReciprocal SegmentTotal
Revenue from external customers$10,028 $20,757 $18,130 $91,967 140,882 
Intersegment revenue82,897 2,330 — (32,343)52,884 
Segment revenue$92,925 $23,087 $18,130 $59,624 $193,766 
Elimination of intersegment revenue(52,884)
Total consolidated revenue$140,882 
Less:(1)
Cost of revenue(11,736)(5,663)(2,849)(36,927)
Segment Gross Profit$81,189 $17,424 $15,281 $22,697 $136,591 
Add (Subtract):(1)
Selling and marketing(9,757)
Product and technology(3,038)
General and administrative(27,316)
Interest expense on intercompany surplus notes(3,527)
Income tax benefit (expense)(1,281)
Other segment items(2)13,390 
Segment Net Income$(8,832)
Segment revenue$92,925 $23,087 $18,130 
Add (Subtract):(1)
Selling and marketing (excluding depreciation, amortization, and stock-based compensation expense)(37,358)(7,643)(9,827)
Product and technology (excluding depreciation, amortization, impairments, and stock-based compensation expense)(1,186)(4,868)(584)
General and administrative (excluding depreciation, amortization, impairments, stock-based compensation expense, mark-to-market gains or losses, restructuring & other costs, and acquisition & other transaction costs)(3,317)(1,413)(1,811)
Interest income on intercompany surplus notes3,527 — — 
Other segment items(2)(10,192)(3,953)(2,661)
Segment Adjusted EBITDA$44,399 $5,210 $3,247 
Additional measure of segment profit (loss)$44,399 $5,210 $3,247 $(8,832)$44,024 
Other segment disclosures
Stock-based compensation expense(3)$30 $14 $3 $47 
Depreciation and amortization(3)20 1,695 185 1,900 
Other interest expense194 194 
______________________________________
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown.
(2)Other segment items for each reportable segment include:
Insurance Services - investment income, other gains and losses, and cost of revenue (excluding depreciation, amortization, and stock-based compensation expense)
Software & Data - cost of revenue (excluding depreciation, amortization, and stock-based compensation expense)
Consumer Services - cost of revenue (excluding depreciation, amortization, and stock-based compensation expense)
Reciprocal Segment - investment income, other interest expense, gain on sale of shares of Porch common stock to our wholly owned captive reinsurance business.
(3)This depreciation, amortization, and stock-based compensation expense for the Insurance Services, Software & Data, and Consumer Services segments is the amount included within Gross Profit. No depreciation, amortization or stock-based compensation expense is included in Adjusted EBITDA. The amount of depreciation and amortization disclosed for the Reciprocal Segment is included within selling and marketing expense and general and administrative expense.
The following table presents a reconciliation of the total of the reportable segments’ other significant items to the corresponding consolidated amount.
Three Months Ended June 30, 2026
Segment TotalsAdjustmentsConsolidated Totals
Stock-based compensation expense$47 $7,815 (1)$7,862 
Depreciation and amortization1,900 7,604 (2)9,504 
Other interest expense194 14,581 (3)14,775 
______________________________________
(1)Represents stock-based compensation expense not included in Cost of Revenue.
(2)Represents depreciation and amortization expense in reportable segments other than the Reciprocal Segment and not included in Cost of Revenue.
(3)Represents interest expense in reportable segments other than the Reciprocal Segment and primarily consists of interest expense on our convertible senior notes (see Note 9).
Three Months Ended June 30, 2025
Insurance ServicesSoftware & DataConsumer ServicesReciprocal SegmentTotal
Revenue from external customers$6,748 $21,978 $17,650 $79,701 126,077 
Intersegment revenue60,642 2,035 — (24,292)38,385 
Segment revenue$67,390 $24,013 $17,650 $55,409 $164,462 
Elimination of intersegment revenue(38,385)
Total consolidated revenue$126,077 
Less:(1)
Cost of revenue(9,526)(5,846)(2,414)(23,896)
Segment Gross Profit$57,864 $18,167 $15,236 $31,513 $122,780 
Add (Subtract):(1)
Selling and marketing(3,635)
Product and technology(558)
General and administrative(19,854)
Interest expense on intercompany surplus notes(3,890)
Income tax benefit (expense)(99)
Other segment items(2)2,191 
Segment Net Income$5,668 
Segment revenue$67,390 $24,013 $17,650 
Add (Subtract):(1)
Selling and marketing (excluding depreciation, amortization, and stock-based compensation expense)(36,936)(8,109)(10,151)
Product and technology (excluding depreciation, amortization, impairments, and stock-based compensation expense)(2,354)(4,304)(978)
General and administrative (excluding depreciation, amortization, impairments, stock-based compensation expense, mark-to-market gains or losses, restructuring & other costs, and acquisition & other transaction costs)(4,414)(2,038)(2,334)
Interest income on intercompany surplus notes3,890 — — 
Other segment items(2)(7,919)(4,020)(2,230)
Segment Adjusted EBITDA$19,657 $5,542 $1,957 
Additional measure of segment profit (loss)$19,657 $5,542 $1,957 $5,668 $32,824 
Other segment disclosures
Stock-based compensation expense(3)$44 $16 $2 $62 
Depreciation and amortization(3)— 1,810 182 1,992 
Other interest expense30 30 
______________________________________
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown.
(2)Other segment items for each reportable segment include:
Insurance Services - investment income, other gains and losses, and cost of revenue (excluding depreciation, amortization, and stock-based compensation expense)
Software & Data - cost of revenue (excluding depreciation, amortization, and stock-based compensation expense)
Consumer Services - cost of revenue (excluding depreciation, amortization, and stock-based compensation expense)
Reciprocal Segment - investment income, other interest expense.
(3)The amount of depreciation, amortization, and stock-based compensation expense disclosed for the Insurance Services, Software & Data, and Consumer Services segments is the amount included within Gross Profit. No depreciation, amortization or stock-based compensation expense is included in Adjusted EBITDA. The amount of depreciation and amortization disclosed for the Reciprocal Segment is included within selling and marketing expense and general and administrative expense.

The following table presents a reconciliation of the total of the reportable segments’ other significant items to the corresponding consolidated amount.
Three Months Ended June 30, 2025
Segment TotalsAdjustmentsConsolidated Totals
Stock-based compensation expense$62 $7,938 (1)$8,000 
Depreciation and amortization1,992 2,469 (2)4,461 
Other interest expense30 12,026 (3)12,056 
______________________________________
(1)Represents stock-based compensation expense not included in Cost of Revenue.
(2)Represents depreciation and amortization expense in reportable segments other than the Reciprocal Segment and not included in Cost of Revenue.
(3)Represents interest expense in reportable segments other than the Reciprocal Segment and primarily consists of interest expense on our convertible senior notes (see Note 9).
Six Months Ended June 30, 2026
Insurance ServicesSoftware & DataConsumer ServicesReciprocal SegmentTotal
Revenue from external customers$18,335 $40,383 $33,271 $170,016 262,005 
Intersegment revenue149,261 4,636 — (59,109)94,788 
Segment revenue$167,596 $45,019 $33,271 $110,907 $356,793 
Elimination of intersegment revenue(94,788)
Total consolidated revenue$262,005 
Less:(1)
Cost of revenue(22,623)(11,067)(4,821)(51,912)
Segment Gross Profit$144,973 $33,952 $28,450 $58,995 $266,370 
Add (Subtract):(1)
Selling and marketing(16,826)
Product and technology(3,803)
General and administrative(46,404)
Interest expense on intercompany surplus notes(7,027)
Income tax benefit (expense)(3,049)
Other segment items(2)15,934 
Segment Net Income$(2,180)
Segment revenue$167,596 $45,019 $33,271 
Add (Subtract):(1)
Selling and marketing (excluding depreciation, amortization, and stock-based compensation expense)(72,939)(15,414)(19,784)
Product and technology (excluding depreciation, amortization, impairments, and stock-based compensation expense)(3,783)(9,406)(1,121)
General and administrative (excluding depreciation, amortization, impairments, stock-based compensation expense, mark-to-market gains or losses, restructuring & other costs, and acquisition & other transaction costs)(6,942)(2,777)(4,690)
Interest income on intercompany surplus notes7,027 — — 
Other segment items(2)(19,069)(7,644)(4,435)
Segment Adjusted EBITDA$71,890 $9,778 $3,241 
Additional measure of segment profit (loss)$71,890 $9,778 $3,241 $(2,180)$82,729 
Other segment disclosures:
Stock-based compensation expense(3)$53 $28 $8 $89 
Depreciation and amortization(3)39 3,395 378 3,812 
Other interest expense198 198 
______________________________________
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown.
(2)Other segment items for each reportable segment include:
Insurance Services - investment income, other gains and losses, and cost of revenue (excluding depreciation, amortization, and stock-based compensation expense)
Software & Data - cost of revenue (excluding depreciation, amortization, and stock-based compensation expense)
Consumer Services - cost of revenue (excluding depreciation, amortization, and stock-based compensation expense)
Reciprocal Segment - investment income, other interest expense, gain on sale of shares of Porch common stock to our wholly owned captive reinsurance business.
(3)The amount of depreciation, amortization, and stock-based compensation expense disclosed for the Insurance Services, Software & Data, and Consumer Services segments is the amount included within Gross Profit. No depreciation, amortization or stock-based compensation expense is included in Adjusted EBITDA. The amount of depreciation and amortization disclosed for the Reciprocal Segment is included within selling and marketing expense and general and administrative expense.
The following table presents a reconciliation of the total of the reportable segments’ other significant items to the corresponding consolidated amount.
Six Months Ended June 30, 2026
Segment TotalsAdjustmentsConsolidated Totals
Stock-based compensation expense$89 $15,056 (1)$15,145 
Depreciation and amortization3,812 9,807 (2)13,619 
Other interest expense198 29,183 (3)29,381 
______________________________________
(1)Represents stock-based compensation expense not included in Cost of Revenue.
(2)Represents depreciation and amortization expense in reportable segments other than the Reciprocal Segment and not included in Cost of Revenue.
(3)Represents interest expense in reportable segments other than the Reciprocal Segment and primarily consists of interest expense on our convertible senior notes (see Note 9).
Six Months Ended June 30, 2025
Insurance ServicesSoftware & DataConsumer ServicesReciprocal SegmentTotal
Revenue from external customers$11,202 $41,997 $32,371 $145,252 230,822 
Intersegment revenue105,994 4,015 — (49,905)60,104 
Segment revenue$117,196 $46,012 $32,371 $95,347 $290,926 
Elimination of intersegment revenue(60,104)
Total consolidated revenue$230,822 
Less:(1)
Cost of revenue(17,007)(11,352)(4,904)(50,145)
Segment Gross Profit$100,189 $34,660 $27,467 $45,202 $207,518 
Add (Subtract):(1)
Selling and marketing(11,046)
Product and technology(1,693)
General and administrative(27,457)
Interest expense on intercompany surplus notes(7,564)
Income tax benefit (expense)(988)
Other segment items(2)4,555 
Segment Net Income$1,009 
Segment revenue$117,196 $46,012 $32,371 
Add (Subtract):(1)
Selling and marketing (excluding depreciation, amortization, and stock-based compensation expense)(51,997)(16,002)(19,630)
Product and technology (excluding depreciation, amortization, impairments, and stock-based compensation expense)(4,667)(8,332)(2,025)
General and administrative (excluding depreciation, amortization, impairments, stock-based compensation expense, mark-to-market gains or losses, restructuring & other costs, and acquisition & other transaction costs)(8,568)(3,987)(4,897)
Interest income on intercompany surplus notes7,564 — — 
Other segment items(2)(14,062)(7,578)(4,532)
Segment Adjusted EBITDA$45,466 $10,113 $1,287 
Additional measure of segment profit (loss)$45,466 $10,113 $1,287 $1,009 $57,875 
Other segment disclosures
Stock-based compensation expense(3)$62 $30 $4 $96 
Depreciation and amortization(3)— 3,744 368 4,112 
Other interest expense81 81 
______________________________________
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown.
(2)Other segment items for each reportable segment include:
Insurance Services - investment income, other gains and losses, and cost of revenue (excluding depreciation, amortization, and stock-based compensation expense)
Software & Data - cost of revenue (excluding depreciation, amortization, and stock-based compensation expense)
Consumer Services - cost of revenue (excluding depreciation, amortization, and stock-based compensation expense)
Reciprocal Segment - investment income, other interest expense.
(3)The amount of depreciation, amortization, and stock-based compensation expense disclosed for the Insurance Services, Software & Data, and Consumer Services segments is the amount included within Gross Profit. No depreciation, amortization or stock-based compensation expense is included in Adjusted EBITDA. The amount of depreciation and amortization disclosed for the Reciprocal Segment is included within selling and marketing expense and general and administrative expense.

The following table presents a reconciliation of the total of the reportable segments’ other significant items to the corresponding consolidated amount.
Six Months Ended June 30, 2025
Segment TotalsAdjustmentsConsolidated Totals
Stock-based compensation expense$96 $12,814 (1)$12,910 
Depreciation and amortization4,112 5,373 (2)9,485 
Other interest expense81 23,221 (3)23,302 
______________________________________
(1)Represents stock-based compensation expense not included in Cost of Revenue.
(2)Represents depreciation and amortization expense in reportable segments other than the Reciprocal Segment and not included in Cost of Revenue.
(3)Represents interest expense in reportable segments other than the Reciprocal Segment and primarily consists of interest expense on our convertible senior notes (see Note 9).
The following table presents a reconciliation of segment gross profit to consolidated gross profit and consolidated income before taxes profitability measures to consolidated net income (loss).
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Reconciliation of segment Gross Profit
Total segment Gross Profit$136,591 $122,780 $266,370 $207,518 
Add back: Segment cost of revenue (excluding Reciprocal Segment)20,248 17,786 38,511 33,263 
Segment operating expenses (excluding Reciprocal Segment)(1)(84,813)(85,787)(168,004)(146,277)
Reciprocal Segment operating expenses(2)(26,721)(21,856)(51,099)(35,641)
Unallocated amounts:
Corporate general and administrative expenses (excluding depreciation, amortization, impairments, stock-based compensation expense, restructuring & other costs, and acquisition & other transaction costs)(9,579)(7,745)(18,142)(16,760)
Corporate product and technology expenses (excluding depreciation, amortization, and stock-based compensation expense)(4,012)(3,740)(7,715)(7,514)
Corporate selling and marketing expenses (excluding stock-based compensation expense)(410)(320)(725)(693)
Corporate interest income229 279 459 592 
Other corporate income (expense), net— — — — 
Interest expense (excluding Reciprocal Segment)(14,581)(12,026)(29,183)(23,221)
Depreciation and amortization (excluding Reciprocal Segment)(9,504)(4,461)(13,619)(9,485)
Gain on extinguishment of debt— 34 — 34 
Other income, net79 95 96 7,257 
Stock-based compensation costs(10,733)(8,000)(18,016)(12,910)
Change in fair value of private warrant liability— (2,878)— (3,610)
Change in fair value of derivatives860 12,853 2,627 19,526 
Other items(11,219)146 (11,384)(280)
Consolidated income (loss) before income taxes$(13,565)$7,160 $(9,824)$11,799 
Reconciliation of segment profit/(loss)
Total segment profit/(loss)$44,024 $32,824 $82,729 $57,875 
Add back: Income tax benefit (provision) of Reciprocal1,281 99 3,049 988 
Unallocated amounts:
Corporate general and administrative expenses (excluding depreciation, amortization, impairments, stock-based compensation expense, restructuring & other costs, and acquisition & other transaction costs)(9,579)(7,745)(18,142)(16,760)
Corporate product and technology expenses (excluding depreciation, amortization, and stock-based compensation expense)(4,012)(3,740)(7,715)(7,514)
Corporate selling and marketing expenses (excluding stock-based compensation expense)(410)(320)(725)(693)
Corporate interest income229 279 459 592 
Other corporate income (expense), net— — — — 
Interest expense (excluding Reciprocal Segment)(14,581)(12,026)(29,183)(23,221)
Depreciation and amortization (excluding Reciprocal Segment)(9,504)(4,461)(13,619)(9,485)
Gain on extinguishment of debt— 34 — 34 
Other income, net79 95 96 7,257 
Stock-based compensation costs(10,733)(8,000)(18,016)(12,910)
Change in fair value of private warrant liability— (2,878)— (3,610)
Change in fair value of derivatives860 12,853 2,627 19,526 
Other items(11,219)146 (11,384)(280)
Consolidated income (loss) before income taxes$(13,565)$7,160 $(9,824)$11,799 
______________________________________
(1)Segment operating expenses (excluding Reciprocal Segment) includes Selling and marketing (excluding depreciation, amortization, and stock-based compensation expense), Product and technology (excluding depreciation, amortization, impairments, and stock-based compensation expense), General and administrative (excluding depreciation, amortization, impairments, stock-based compensation expense, mark-to-market
gains or losses, restructuring & other costs, and acquisition & other transaction costs), and Other segment items for the Insurance Services, Software & Data, and Consumer Services segments.
(2)Reciprocal Segment operating expenses include Selling and marketing, Product and technology, General and administrative, and Other segment items of the Reciprocal Segment.

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, 2026, and December 31, 2025, we did not have material assets located outside of the United States.