Porch Group, Inc. (PRCH) Stock Price & How to Invest
Last updated October 2026
Short answer
Porch Group (PRCH) is a Seattle-based homeowners insurance business that now earns most of its profit managing a reciprocal insurer rather than carrying the risk itself. Investing in PRCH means buying a leveraged, fast-improving turnaround: Insurance Services revenue grew ~38% in Q2 2026 and guidance was raised, but Texas weather, ~$475 million of convertible debt and a thin GAAP profit history keep it a volatile small cap.
PRCH stock price
As of 2026-10-23, Porch Group, Inc. (PRCH) last closed at $17.97, up 10.0% over the past year. Over the past 52 weeks it has traded between $6.40 and $18.59.
Prices are daily closing prices from Yahoo Finance and may be delayed. For the live quote, check your broker or Porch Group, Inc.'s investor relations page. Walnut is informational, not investment advice.
What does Porch Group, Inc. (PRCH) do?
Porch Group, Inc. (NASDAQ: PRCH) describes itself as a new kind of homeowners insurance company. It started as a vertical software business selling tools to home inspectors, mortgage, title and roofing companies, and used those relationships to reach homebuyers at the moment they move. It then bought Homeowners of America Insurance Company and began writing home policies, largely in Texas. In early 2025 it restructured that insurer into the Porch Insurance Reciprocal Exchange, a member-owned reciprocal that Porch manages for fees but does not own. Porch now reports four segments: Insurance Services (the fee-earning manager, plus a captive reinsurer and surplus notes), Software & Data (inspection software and data products such as Home Factors), Consumer Services (home warranties and moving services), and the Reciprocal itself, which is consolidated as a variable interest entity but whose profits belong to policyholders.
The recent numbers show the model working. For Q2 2026, reported on July 29, consolidated revenue was ~$141 million, up ~12%, while revenue from the Porch-owned segments rose ~23% to ~$132 million. Insurance Services revenue jumped ~38% to ~$93 million with a ~48% adjusted EBITDA margin, and adjusted EBITDA excluding the Reciprocal reached ~$39 million, up ~150%. Net income attributable to Porch was ~$5.6 million (~$0.05 per share), even though the consolidated line showed a ~$14 million loss because of an ~$8.8 million Reciprocal loss. Management raised full-year 2026 guidance for Porch-owned revenue to ~$506 to $517 million and adjusted EBITDA to ~$119 to $125 million, up ~55% to 63% from 2025's ~$77 million. The stock reflects that shift: it closed near ~$7 at the end of March 2026 and traded around ~$18 on October 22, a market value near ~$2.1 billion. The investment picture is a capital-light insurance manager growing fast, set against weather concentration, roughly $475 million of convertible notes, a shrinking software customer base, and the third-quarter report (expected in early November) as the next test of whether the raised guidance holds through hurricane season.
What's driving Porch Group, Inc. (PRCH)?
1. The reciprocal fee model
The biggest driver is the conversion of Porch from an insurer that kept underwriting risk into a manager that earns fees on premiums written by the Porch Insurance Reciprocal Exchange. In Q2 2026, Reciprocal written premium was ~$140 million, up ~16%, and Insurance Services gross profit equaled ~58% of that premium versus ~48% a year earlier. Insurance Services adjusted EBITDA as a share of written premium doubled to ~32%. Management targets ~$600 million of Reciprocal written premium for 2026, about 25% organic growth. If premium keeps compounding while the fee structure holds, most of the incremental dollars fall through to Porch's own earnings, which is why EBITDA is growing much faster than revenue.
2. Policy growth and agency distribution
Porch is adding customers quickly. Reciprocal policies written rose ~38% to ~58,700 in Q2 2026, premium from new customers grew ~206% year over year, agency branch locations increased ~148%, and quote volumes were up ~87%. Average premium per policy written fell ~16% to ~$2,383, which reflects expansion into new states and lower-premium segments rather than price cuts alone. Porch also uses data from its inspection software (such as findings on roof condition) to price policies, which it argues gives it an underwriting edge. Sustaining this pace depends on agents continuing to place business with a relatively young carrier and on the Reciprocal having enough surplus to support growth.
3. Capital, reinsurance and surplus
Because the Reciprocal is separately capitalized, its statutory surplus limits how fast Porch can grow. Surplus reached ~$170 million at June 30, 2026, up ~33% year over year, and ~$377 million when non-admitted assets are included. Porch holds ~$106 million of surplus notes from the Reciprocal paying SOFR plus 9.75%, an income stream that is eliminated in consolidation. In June 2026 Porch's captive reinsurer bought ~2.1 million PRCH shares from the Reciprocal for ~$15 million to convert a non-admitted asset into cash surplus. The company also highlighted a ~$100 million catastrophe bond. Cheaper or more available reinsurance would support margins; tighter markets would squeeze them.
4. Software, data and deleveraging
The Software & Data and Consumer Services segments are smaller but profitable, generating ~$5.2 million and ~$3.2 million of adjusted EBITDA in Q2 2026. Software & Data average companies fell ~22% to ~18,700 as Porch pruned smaller accounts, while annualized revenue per company rose ~24% to ~$4,926. These units feed homebuyer leads and underwriting data to the insurance business. The other lever is the balance sheet: Porch had ~$475 million of convertible principal, mostly 6.75% secured notes due October 2028 (~$333 million) and 9% notes due May 2030 (~$134 million). Rising EBITDA and operating cash flow (~$65 million in 2025) give it more room to refinance or reduce that debt before 2028.
What are the risks to Porch Group, Inc. (PRCH)?
Weather concentration is the headline risk. About 56% of Q2 2026 consolidated revenue came from Texas customers, so a severe hail, wind or hurricane season can hit Reciprocal surplus, raise reinsurance costs and slow the premium growth that drives Porch's fees; the Reciprocal already lost ~$8.8 million in Q2 2026. The structure is complex: Porch consolidates an entity it does not own, so headline GAAP results can show losses even when shareholder earnings improve, and regulators oversee the fees and capital flows between the two. Leverage is meaningful at ~$475 million of convertible principal against ~$119 million of Porch unrestricted cash and investments, and conversions could dilute shareholders. Software & Data customer counts are falling, and a weak existing-home sales market reduces inspection and moving activity. Porch has a history of net losses, past material weaknesses in internal controls, and an ongoing consumer TCPA lawsuit over telemarketing calls. Finally, the stock is volatile: its 52-week range runs from ~$6.40 to ~$18.40, and Keefe, Bruyette & Woods downgraded it to market perform in July 2026 on valuation.
What is the Porch Group, Inc. (PRCH) forecast?
7 analysts publish price targets on PRCH, averaging $21.79 against a $18.34 price as of October 2026, or +18.8%. The published targets run from $16.50 to $25.00, a moderate spread, and the ratings split 6 buy, 1 hold, 0 sell. Over the last six months there have been 9 raises and 0 cuts among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.
Read the full PRCH forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.
Is PRCH a buy or a sell?
We give no verdict on Porch Group, Inc.. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.
The case for buying. The reciprocal fee model. The biggest driver is the conversion of Porch from an insurer that kept underwriting risk into a manager that earns fees on premiums written by the Porch Insurance Reciprocal Exchange. The most optimistic published target, $25.00, assumes this works close to its best case.
The case against. Weather concentration is the headline risk. The most pessimistic target, $16.50, is roughly what PRCH is worth if this bites instead.
Read the full bull and bear case on PRCH, including what would have to change to break either one. Walnut is not an investment adviser.
How is Porch Group, Inc. (PRCH) valued? (approximate, October 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Porch Group, Inc.'s investor relations page or your broker.
- Revenue (TTM): ~$470 million for Porch-owned segments (Q2 2026 ~$132 million, up ~23%); consolidated Q2 2026 ~$141 million
- Adjusted EBITDA ex-Reciprocal: ~$39 million in Q2 2026 (up ~150%); 2026 guidance ~$119 to $125 million
- Net income to Porch: ~$5.6 million in Q2 2026 (~$0.05 per share); ~$0.9 million for the first half
- Market cap: ~$2.1 billion (stock ~$18 on October 22)
- EV / 2026 adjusted EBITDA: ~20x (enterprise value ~$2.5 billion including convertible debt)
- Convertible debt: ~$475 million principal, mainly due 2028 and 2030
Figures are approximate and tied to the asOf date; verify live numbers before acting. A trailing P/E is not meaningful because GAAP net income to Porch is barely positive, so the market prices PRCH on adjusted EBITDA excluding the Reciprocal. At roughly 19 times the 2026 guidance midpoint, the stock already assumes the fee model keeps compounding. The average analyst target was about $16.75 in July, below the ~$18 quote in late October, so the shares have run ahead of where the consensus stood after the second quarter.
Who competes with Porch Group, Inc. (PRCH)?
Homeowners insurtechs
Hippo (HIPO), Lemonade (LMND) and privately held Kin Insurance chase the same goal: using data and technology to underwrite homes more accurately and acquire customers more cheaply. Hippo is the closest analogue, having also shifted toward a fee-based hybrid fronting model, and Kin also operates a reciprocal exchange structure focused on catastrophe-prone states.
Traditional and regional home insurers
National carriers such as State Farm, Allstate (ALL) and Progressive (PGR) dominate Texas homeowners insurance, while regional specialists like HCI Group (HCI) and Universal Insurance Holdings (UVE) compete in weather-exposed markets. They have far larger balance sheets and reinsurance buying power, which sets the pricing Porch must compete against through independent agents.
Home services and software
In warranties and moving, Frontdoor (FTDR), owner of American Home Shield, and Angi (ANGI) compete for homeowner spending. In software, private inspection platforms such as Spectora and title and mortgage software vendors compete for the inspection companies and service providers that Porch uses to reach homebuyers and gather underwriting data.
What stocks are similar to Porch Group, Inc. (PRCH)?
Other names that sit close to PRCH: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.
How to invest in Porch Group, Inc. (PRCH)
There are three common ways to get PRCH exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic portfolio, so PRCH sits alongside other stocks that express the same thesis.
Walnut takes the portfolio route. Describe a thesis where PRCH fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.
New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.
The bottom line on Porch Group, Inc. (PRCH)
PRCH is a high-growth, high-risk homeowners insurance manager whose fee model is finally producing profits, but its Texas weather exposure, convertible debt and a share price that more than doubled in 2026 demand caution.
More on Porch Group, Inc. (PRCH)
Whether PRCH is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is PRCH a buy or a sell?, and where the stock could go from here in the PRCH stock forecast.
For income investors, whether PRCH pays a dividend and how the payout looks is covered in does PRCH pay a dividend? And to weigh PRCH against a peer, read the full side-by-side comparisons: PRCH vs LMND and PRCH vs PGR.
Wondering how PRCH fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Porch Group, Inc. with AI
Connect the broker you already use and ask Walnut's AI how PRCH fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What does Porch Group do?
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Porch Group is a homeowners insurance and home services company based in Seattle. Its largest business, Insurance Services, manages the Porch Insurance Reciprocal Exchange, a member-owned insurer that writes homeowners policies mostly in Texas and other southern states, and earns fees on the premiums written. Porch also runs Software & Data, which sells software to home inspectors, mortgage, title and roofing companies and sells property data products, and Consumer Services, which offers home warranties and moving-related services. The original idea was to use the software business to reach people at the moment they buy a home, then offer them insurance and services. Today insurance is the profit engine: Insurance Services produced ~$93 million of Porch's ~$132 million in Porch-owned revenue in Q2 2026, and most of its adjusted EBITDA.
How do you invest in PRCH stock?
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PRCH trades on the Nasdaq, so it can be bought through most US brokerage accounts, including apps that allow fractional shares, which matters less here since the stock trades around $18. Porch is a small cap with a market value near ~$2.1 billion, so trading volume is lower than for large insurers and price swings can be large, as the move from about $7 in March 2026 to the high teens in October shows. Some people get indirect exposure through small-cap or insurance-focused funds, though PRCH is usually a tiny weight in those. Anyone considering a position typically looks at how a single volatile stock fits alongside their other holdings, their time horizon, and whether they can tolerate sharp drawdowns around weather events or earnings reports.
Is PRCH a good stock to buy right now?
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That depends on your goals, time horizon and risk tolerance, and this is not investment advice. The bull case is a capital-light fee model that is scaling fast: Insurance Services revenue up ~38% in Q2 2026, adjusted EBITDA excluding the Reciprocal up ~150%, guidance raised twice in 2026, and Reciprocal surplus growing ~33%. The bear case is that the stock has already more than doubled since March, trades at roughly 19 times 2026 adjusted EBITDA, carries ~$475 million of convertible debt, and depends heavily on Texas weather and reinsurance pricing. GAAP profit to shareholders is only barely positive so far. The average analyst target was close to the October price, so the setup leans on further upside surprises rather than a deep discount.
What is the Porch Insurance Reciprocal Exchange?
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A reciprocal exchange is an insurer owned by its policyholders rather than by shareholders. In early 2025 Porch moved its insurance carrier, Homeowners of America Insurance Company, into the Porch Insurance Reciprocal Exchange. Porch acts as the attorney-in-fact, meaning it manages underwriting, claims, renewals and investments in exchange for fees tied to premiums. The underwriting profit or loss, and the surplus, belong to the Reciprocal and its members. For Porch shareholders, this means earnings depend on how much premium the Reciprocal writes rather than directly on claims costs, although a bad catastrophe year still matters because it shrinks surplus and limits growth. Porch also holds ~$106 million of surplus notes from the Reciprocal and owns a captive reinsurer, so it retains some indirect exposure to underwriting results.
Why does Porch report a loss when it says it is profitable?
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Accounting rules require Porch to consolidate the Reciprocal as a variable interest entity because Porch controls its operations, even though Porch does not own it. So consolidated results include the Reciprocal's premiums, claims and losses. In Q2 2026, consolidated net income was a loss of ~$14 million, driven partly by an ~$8.8 million Reciprocal loss, while net income attributable to Porch shareholders was a profit of ~$5.6 million. Management therefore emphasizes Porch-owned segment revenue and adjusted EBITDA excluding the Reciprocal. Those non-GAAP measures are useful for understanding the fee business, but they exclude stock compensation and other costs, so investors usually compare them with GAAP net income attributable to Porch and with operating cash flow, which was ~$65 million for full-year 2025.
How exposed is Porch to hurricanes and hail?
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Quite exposed, mostly indirectly. About 56% of consolidated revenue in Q2 2026 came from Texas customers, and Texas regularly produces costly hail, wind and hurricane losses. Under the reciprocal model, catastrophe claims are paid by the Reciprocal and its reinsurers rather than by Porch, so a bad storm does not flow straight into Porch's fee income. However, large losses reduce the Reciprocal's surplus, which constrains how many new policies it can write, can push reinsurance costs higher, and can affect the value of Porch's surplus notes and captive reinsurer. The company has bought reinsurance and highlighted a ~$100 million catastrophe bond to absorb severe events. Weather in the second and third quarters is the main seasonal swing factor for results and sentiment.
Does Porch Group pay a dividend?
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No. Porch does not pay a dividend and has never paid one since it went public in December 2020 through a merger with a special purpose acquisition company. Cash generated by the business goes to growth, to supporting the Reciprocal's capital, and to servicing roughly $475 million of convertible notes, which carry coupons of 6.75% on the 2028 secured notes and 9% on the 2030 notes. Porch has also not disclosed an open-market share buyback program; the June 2026 purchase of ~2.1 million shares by its captive reinsurer was a transaction with the Reciprocal to strengthen its surplus rather than a return of capital. Returns for PRCH holders therefore depend entirely on share price changes, which have been large in both directions.
Is there a lawsuit against Porch Group?
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Porch has faced shareholder law-firm investigations in the past, including notices in 2021, 2022 and 2023 tied to delayed filings, internal-control weaknesses and its SPAC process, but no securities-fraud class action appears to be active as of October 2026. Its 2026 quarterly filings state that the company is not party to any proceeding it believes would have a material adverse effect. The notable ongoing case is consumer litigation under the Telephone Consumer Protection Act, consolidated in the Western District of Washington, which alleges unwanted telemarketing calls; a judge dismissed some claims in late 2024 and plaintiffs filed amended complaints, and Porch says it is contesting the case. As with any company, legal outcomes are uncertain, and the latest 10-Q is the place to check current status.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with Porch Group, Inc.'s investor relations page or your broker before making investment decisions.