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

PRCH Nasdaq Services-Prepackaged Software CIK: 0001784535
Recently Updated • Analysis: Apr 14, 2026 • SEC Data: 2025-12-31
SELL
85% Conf
Pending
Analysis scheduled

📊 PRCH Key Takeaways

Revenue: $482.4M
Net Margin: -0.7%
Free Cash Flow: $66.0M
Current Ratio: 1.30x
Debt/Equity: N/A
EPS: $-0.03
AI Rating: SELL with 85% confidence
Porch Group, Inc. (PRCH) receives a SELL rating with 85% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $482.4M, net profit margin of -0.7%, 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

While Porch Group demonstrates strong revenue growth (15.2% YoY) and positive free cash flow of $66M, it faces critical financial distress with negative stockholders' equity (-$24.6M), interest coverage of only 0.7x, and a $392.8M debt burden the company cannot service from operations, indicating structural insolvency despite operational cash generation.

Why Buy Porch Group, Inc. Stock? PRCH Key Strengths

Claude
  • + Strong revenue growth of 15.2% YoY reaching $482.4M
  • + Excellent gross margin of 70.5% indicating strong underlying business economics and pricing power
  • + Positive free cash flow of $66M with 13.7% FCF margin despite net losses, providing debt service flexibility

PRCH Stock Risks: Porch Group, Inc. Investment Risks

Claude
  • ! Negative stockholders' equity of -$24.6M represents technical insolvency on a book basis
  • ! Interest coverage of 0.7x - operating income cannot cover interest expense, critical solvency risk
  • ! Excessive leverage with $392.8M long-term debt and only $44.7M cash, highly vulnerable to interest rate increases or refinancing risk
  • ! Operational unprofitability (-$3.4M net loss) despite strong gross margins indicates unsustainable cost structure
  • ! Negative ROA of -0.4% demonstrates failure to generate shareholder value from asset base

Key Metrics to Watch

Claude
  • * Interest coverage ratio - must improve above 1.0x to demonstrate debt sustainability
  • * Stockholders' equity trajectory - return to positive territory critical for financial viability
  • * Net income and operating margin expansion - current -0.7% net margin is unsustainable long-term
  • * Debt reduction progress and refinancing capability at maturing debt levels
  • * Operating cash flow sustainability and conversion to net income profitability

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

Revenue
$482.4M
Net Income
$-3.4M
EPS (Diluted)
$-0.03
Free Cash Flow
$66.0M
Total Assets
$797.4M
Cash Position
$44.7M

💡 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 70.5%
Operating Margin 7.6%
Net Margin -0.7%
ROE N/A
ROA -0.4%
FCF Margin 13.7%

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

How Porch Group, Inc. compares to Technology sector averages

Net Margin
PRCH -0.7%
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
-0.7%
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
1.30x
Quick Ratio
1.30x
Debt/Equity
N/A
Debt/Assets
97.2%
Interest Coverage
0.70x
Long-term Debt
$392.8M

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
13.7%
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
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
Q1 2022 $26.7M -$5.8M $-0.06

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
$66.4M
Cash generated from operations
Capital Expenditures
$454.0K
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
Apr 10, 2026 4 xslF345X06/wk-form4_1775858104.xml View →
Apr 10, 2026 4 xslF345X06/wk-form4_1775858055.xml View →
Apr 10, 2026 4 xslF345X06/wk-form4_1775858007.xml View →
Apr 9, 2026 4 xslF345X06/wk-form4_1775770852.xml View →
Apr 9, 2026 4 xslF345X06/wk-form4_1775770795.xml View →

Frequently Asked Questions about PRCH

What is the AI rating for PRCH?

Porch Group, Inc. (PRCH) has an AI rating of SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.

What are PRCH's key strengths?

Claude: Strong revenue growth of 15.2% YoY reaching $482.4M. Excellent gross margin of 70.5% indicating strong underlying business economics and pricing power.

What are the risks of investing in PRCH?

Claude: Negative stockholders' equity of -$24.6M represents technical insolvency on a book basis. Interest coverage of 0.7x - operating income cannot cover interest expense, critical solvency risk.

What is PRCH's revenue and growth?

Porch Group, Inc. reported revenue of $482.4M.

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 $-0.03.

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 rating reflects both perspectives for balanced insights.

Is PRCH a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Porch Group, Inc. has a SELL rating with 85% confidence. Review the strengths and risks sections above before making a decision. 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 -0.7% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.

Should I buy PRCH stock in 2026?

Our dual AI analysis gives Porch Group, Inc. a combined SELL rating 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 $66.4M, with capital expenditures of $454.0K. FCF margin is 13.7%.

How does PRCH compare to other Technology stocks?

Vs Technology sector averages: Net margin -0.7% (avg: 18%), ROE N/A (avg: 22%), current ratio 1.30 (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: Apr 14, 2026 | Data as of: 2025-12-31 | Powered by Claude AI