Home services small cap Porch soars 68% on strong earnings

Shares of Porch Group, which operates a vertical software and insurance platform in the U.S., surged 68% yesterday, May 7, after the company’s first-quarter revenue beat the consensus estimate by a wide margin.

Porch jumped nearly 68% on the Nasdaq yesterday to close at $10.60 per share, its highest level since late 2021.

The day before, the company released its financial results for the first quarter. While revenue declined 9% year over year to $104.7 million, it still delivered a strong beat on the Wall Street consensus estimate, by 25%.

Net income soared over 350% to $3.7 million, after a net loss of $13.4 million in the same quarter a year ago. Earnings per share came in at $0.08 versus analyst expectations of a $0.10 loss. 

Porch reported positive adjusted EBITDA of $16.9 million, a sharp turnaround from a negative $16.8 million in the first quarter of 2024.

Alongside the earnings, the insurer upgraded its full-year 2025 guidance: It now expects revenue of $400-420 million (versus $390-410 million previously) and adjusted EBITDA of $60-70 million (versus $55-65 million).

Founded in 2012 in Seattle, Porch began as a service connecting homeowners with contractors and repairmen. As a private company, it raised more than $120 million in venture funding from the likes of SVAngel, Valor Equity Partners, and Founders Fund.

Over time, Porch shifted its focus to the home insurance business, acquiring players in that segment. It went public in 2020, raising $322 million. The company remained unprofitable from its founding until early 2024.

In January 2025, Porch restructured its operations by spinning off Porch Reciprocal Exchange, to which it transferred its homeowners insurance subsidiary that handles customer claims, called Homeowners of America. Porch retained its software for home inspectors and mortgage automation, as well as its moving-related services. This reorganization was part of a strategy to boost profitability and reduce expenses associated with processing weather-related claims, according to the company’s CEO.

Porch has had a streak of bad natural disasters of late. In the summer of 2023, it reported $18 million in losses from severe wind, rain, and hail in Texas. Going forward, as noted above, claims related to weather damage will be handled by Porch Reciprocal Exchange.

According to MarketWatch, of the six Wall Street analysts covering Porch, five rate the stock a “buy” and one rates it a “hold.” Their average target price of $10 per share is slightly below current quotes.