Porch Group Delivers Strong Q3 2026 Results with 42% Year-Over-Year Policy Growth and Doubling of Adjusted EBITDA
Porch Group's third quarter 2026 conference call highlighted the company's strong financial performance, driven by a 42% year-over-year increase in Reciprocal policies written and more than doubling of Adjusted EBITDA, excluding the Reciprocal.
The company reported Reciprocal written premium (RWP) of $161 million, up 17% from the prior year period. This growth was fueled by an expansion of the customer base, with a total of 68,000 policies written across new and renewal, representing a 42% increase year-over-year. The rate of growth accelerated from Q2's 38% growth rate.
Insurance Services delivered its sixth consecutive Rule of 80 quarter, combining 39% revenue growth and 49% Adjusted EBITDA margin. This performance drove another healthy raise to the company's full-year outlook, with Adjusted EBITDA, excluding the Reciprocal, more than doubling from the prior year period.
Porch Group's CEO, Matt Ehrlichman, emphasized that the company's organic growth system is working well, citing significant capacity at the Reciprocal, an expanding distribution funnel, rapid new customer growth, and disciplined underwriting. As volume moves through the company's largely fixed cost structure, it generates higher earnings, strong cash flow, and an improving financial profile.
The company's recent acquisition of Allied Trust, a high-quality regional insurance company, is expected to add scale, products, geographies, talent, and more than a decade of claims data. This strategic move complements Porch Group's organic growth model and positions the company for continued success in the insurance industry.
The Reciprocal statutory surplus has increased by almost $75 million since its launch, reaching $174 million in Q3. This demonstrates the strength of underlying underwriting results and provides substantial capacity to support disciplined premium growth. With a strong capital position at the Reciprocal, Porch Group is well-positioned for continued success in the insurance industry.
