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Porch Group, Inc. (PRCH) Fundamental Analysis & AI Grade 2026

PRCH Nasdaq Services-Prepackaged Software CIK: 0001784535
Updated This Month • Analysis: May 6, 2026 • SEC Data: 2026-03-31
Combined AI Grade
C
78% Confidence
N/A
C
78% Conf
Pending
Analysis scheduled

📊 PRCH Key Takeaways

Revenue: $121.1M
Net Margin: -3.9%
Free Cash Flow: $12.8M
Current Ratio: 1.28x
Debt/Equity: N/A
EPS: $-0.04
AI Grade: C with 78% confidence
Porch Group, Inc. (PRCH) receives a C fundamental grade with 78% confidence from our AI analysis based on SEC 10-K filings. With revenue of $121.1M, net profit margin of -3.9%, Porch Group, Inc. demonstrates mixed fundamentals in the Technology sector. Below is our complete PRCH stock analysis for 2026.

Is Porch Group, Inc. (PRCH) a Good Investment?

Claude

Porch Group exhibits strong operational metrics with 15.2% revenue growth and exceptional 75% gross margins, but is fundamentally impaired by negative stockholders' equity of -$25.4M and interest coverage of 0.8x, indicating the company cannot service debt from operating income. Despite positive free cash flow, structural profitability and balance sheet insolvency present material financial distress.

Porch Group, Inc. Key Strengths (PRCH)

Claude
  • + Strong revenue growth of 15.2% YoY demonstrates market demand
  • + Excellent gross margin of 75% indicates strong pricing power and product-market fit
  • + Positive free cash flow of $12.8M provides liquidity despite operating losses
  • + Minimal capital intensity with only $176K capex enables cash preservation
  • + EPS improving +90.9% YoY suggests trajectory toward profitability

PRCH Stock Risks: Porch Group, Inc. Investment Risks

Claude
  • ! Negative stockholders' equity of -$25.4M—company is technically insolvent with liabilities exceeding assets
  • ! Interest coverage ratio of 0.8x—cannot cover debt service from operating income, indicating refinancing risk
  • ! Net unprofitability of -$4.7M despite $90.8M gross profit indicates excessive operating expenses (~87% of gross profit consumed by SG&A)
  • ! High debt burden of $399M with only $11.8M operating income creates unsustainable leverage
  • ! Significant insider trading activity (29 Form 4 filings in 90 days) may signal management concerns

Key Metrics to Watch

Claude
  • * Path to operating profitability and net income return to positive
  • * Operating margin expansion—need to reduce SG&A as percentage of gross profit
  • * Debt refinancing capability and interest coverage ratio improvement above 1.0x
  • * Stockholders' equity recovery toward positive territory

Porch Group, Inc. (PRCH) Financial Metrics & Key Ratios

Revenue
$121.1M
Net Income
$-4.7M
EPS (Diluted)
$-0.04
Free Cash Flow
$12.8M
Total Assets
$806.6M
Cash Position
$64.2M

💡 AI Analyst Insight

Porch Group, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

PRCH Profit Margin, ROE & Profitability Analysis

Gross Margin 75.0%
Operating Margin 9.8%
Net Margin -3.9%
ROE N/A
ROA -0.6%
FCF Margin 10.6%

PRCH vs Technology Sector: How Porch Group, Inc. Compares

How Porch Group, Inc. compares to Technology sector averages

Net Margin
PRCH -3.9%
vs
Sector Avg 18.0%
PRCH Sector
ROE
PRCH 0.0%
vs
Sector Avg 22.0%
PRCH Sector
Current Ratio
PRCH 1.3x
vs
Sector Avg 2.5x
PRCH Sector
Debt/Equity
PRCH 0.0x
vs
Sector Avg 0.5x
PRCH Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Porch Group, Inc. Stock Overvalued? PRCH Valuation Analysis 2026

Based on fundamental analysis, Porch Group, Inc. has mixed fundamental signals relative to the Technology sector in 2026.

Return on Equity
N/A
Sector avg: 22%
Net Profit Margin
-3.9%
Sector avg: 18%
Revenue Growth
N/A
Year-over-year
Debt/Equity
N/A
Sector avg: 0.5x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Porch Group, Inc. Balance Sheet: PRCH Debt, Cash & Liquidity

Current Ratio
1.28x
Quick Ratio
1.28x
Debt/Equity
N/A
Debt/Assets
96.7%
Interest Coverage
0.79x
Long-term Debt
$399.0M

PRCH Revenue & Earnings Growth: 5-Year Financial Trend

PRCH 5-year financial data: Year 2021: Revenue $192.4M, Net Income -$103.3M, EPS $-3.31. Year 2022: Revenue $275.9M, Net Income -$54.0M, EPS $-2.03. Year 2023: Revenue $430.3M, Net Income -$106.6M, EPS $-1.14. Year 2024: Revenue $437.8M, Net Income -$156.6M, EPS $-1.61. Year 2025: Revenue $418.9M, Net Income -$133.9M, EPS $-1.39.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Porch Group, Inc.'s revenue has grown significantly by 118% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.39 indicates the company is currently unprofitable.

PRCH Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
10.6%
Free cash flow / Revenue

PRCH Quarterly Earnings & Performance

Quarterly financial performance data for Porch Group, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $84.5M -$4.7M $-0.04
Q3 2025 $77.7M $117.0K $0.00
Q2 2025 $75.9M $2.6M $0.00
Q1 2025 $84.4M $8.4M $0.07
Q2 2023 $70.9M -$27.3M $-0.28
Q1 2023 $63.6M -$9.3M $-0.10
Q3 2022 $62.8M -$5.1M $-0.08
Q2 2022 $51.3M -$5.8M $-0.17

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Porch Group, Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$13.0M
Cash generated from operations
Stock Buybacks
$2.5M
Shares repurchased (TTM)
Capital Expenditures
$176.0K
Investment in assets
Dividends Paid
$30.0M
Returned to shareholders

PRCH SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Porch Group, Inc. (CIK: 0001784535)

📋 Recent SEC Filings

Date Form Document Action
May 28, 2026 4 xslF345X06/wk-form4_1780005828.xml View →
May 21, 2026 4 xslF345X06/wk-form4_1779400017.xml View →
May 21, 2026 4 xslF345X06/wk-form4_1779399778.xml View →
May 21, 2026 4 xslF345X06/wk-form4_1779399615.xml View →
May 19, 2026 4 xslF345X06/wk-form4_1779226794.xml View →

Frequently Asked Questions about PRCH

What is the AI rating for PRCH?

Porch Group, Inc. (PRCH) has an AI grade of C with 78% confidence, based on fundamental analysis of SEC EDGAR filings.

What are PRCH's key strengths?

Claude: Strong revenue growth of 15.2% YoY demonstrates market demand. Excellent gross margin of 75% indicates strong pricing power and product-market fit.

What are the risks of investing in PRCH?

Claude: Negative stockholders' equity of -$25.4M—company is technically insolvent with liabilities exceeding assets. Interest coverage ratio of 0.8x—cannot cover debt service from operating income, indicating refinancing risk.

What is PRCH's revenue and growth?

Porch Group, Inc. reported revenue of $121.1M.

Does PRCH pay dividends?

Porch Group, Inc. pays dividends, with $30.0M distributed to shareholders in the trailing twelve months.

Where can I find PRCH SEC filings?

Official SEC filings for Porch Group, Inc. (CIK: 0001784535) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is PRCH's EPS?

Porch Group, Inc. has a diluted EPS of $-0.04.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is PRCH's fundamental grade?

Based on our AI fundamental analysis in May 2026, Porch Group, Inc. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is PRCH stock overvalued or undervalued?

Valuation metrics for PRCH: ROE of N/A (sector avg: 22%), net margin of -3.9% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.

What is PRCH's AI grade for 2026?

Our dual AI analysis gives Porch Group, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is PRCH's free cash flow?

Porch Group, Inc.'s operating cash flow is $13.0M, with capital expenditures of $176.0K. FCF margin is 10.6%.

How does PRCH compare to other Technology stocks?

Vs Technology sector averages: Net margin -3.9% (avg: 18%), ROE N/A (avg: 22%), current ratio 1.28 (avg: 2.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 6, 2026 | Data as of: 2026-03-31 | Powered by Claude AI