Thu, May 8, 7:36 PM (7 days ago)
**Porch Group, Inc. (PRCH) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $104.7M (down 9% YoY) - **Profit Margins:** Gross profit margin at 62%, operating loss margin at -1.2% - **Cash Flow:** Negative operating cash flow of $11.2M, positive investing cash flow of $19.4M, and minimal financing cash outflow of $0.2M - **Earnings Changes:** Net income of $3.7M (up from a loss of $13.4M YoY) - **Quarterly Performance:** Improved Adjusted EBITDA by $33.6M YoY to $16.9M **Segment Performance:** - **Insurance Services:** Revenue up 5% to $49.8M, driven by Reciprocal management fees - **Software & Data:** Revenue up 4% to $22.0M, benefiting from transaction volume and price increases - **Consumer Services:** Revenue down 9% to $14.7M, due to longer warranty coverage periods and strategic shifts **Trends & Uncertainties:** - **Positive Trends:** Improved operating margins, increased management fees, and strategic pricing - **Uncertainties:** Economic conditions, weather events, regulatory changes, and competitive pressures **Future Operations Impact:** - Continued focus on managing the Reciprocal, growing software and data services, and optimizing consumer services - Potential need for additional capital or strategic initiatives to support growth and innovation **Key Metrics:** - **Reciprocal Written Premium:** $96.9M - **Reciprocal Policies Written:** 36.1K - **Average Number of Companies (Software & Data):** 24.1K - **Monetized Services (Consumer Services):** 71K **Liquidity & Capital Resources:** - **Cash & Cash Equivalents:** $166.0M (down from $196.8M QoQ) - **Debt:** $507.1M in convertible notes and promissory notes - **Sufficient liquidity** to finance operations, capital expenditures, and debt service for at least the next 12 months **Market Risks:** - **Interest Rate Risk:** Fixed-rate debt, potential unrealized losses in investment portfolio - **Inflation Risk:** Negative impact on operations, potential reduction in consumer spending - **Foreign Currency Risk:** Minimal exposure, primarily U.S.-based operations **Legal & Regulatory:** - Ongoing litigation and regulatory approvals may impact operations and financial results - Compliance with insurance regulations and risk-based capital standards **Outlook:** - Continued focus on operational efficiency, strategic growth, and risk management - Potential for further improvements in profitability and cash flow generation - Monitoring of economic conditions, regulatory environment, and competitive landscape