PRCH

Porch has crossed the inflection that long-suffering insurtech/proptech turnarounds are supposed to reach but rarely do. FY2025 revenue grew 33.7% to $419M (Porch Shareholder Interest), gross margin is a software-like 81.2%, and operating income swung to a positive $36.6M (+156.6%). The net-loss progression tells the story even more clearly — from -$107M (2021) to -$157M, -$134M, -$32.8M, and now just -$3.36M — essentially breakeven. Critically, this isn't a paper improvement: operating cash flow jumped 309.6% to $66.4M against trivial capex of $454K, so free cash flow is real and roughly $66M. The MD&A confirms the quality of the turn: Adjusted EBITDA went from $4.1M to $76.6M, driven by the reorganization around the Insurance Services, Software & Data, and Consumer Services segments, with the regulated Reciprocal now consolidated but its $18.7M of income attributable to policyholders rather than Porch shareholders. The reported Insurance Services segment operating loss of -$72.9M is largely an artifact of how Reciprocal eliminations flow through; the consolidated and Porch-attributable figures are what matter, and they are positive at the operating line.

Valuation is reasonable rather than cheap. At $14.60 the market cap is $1.82B, or 4.3x FY2025 revenue and roughly 27x trailing free cash flow — a fair GARP multiple for a business compounding revenue in the low-30s% with 81% gross margins and a freshly positive operating model. If execution holds, the multiple is not demanding.