Porch Group (PRCH) Delivers Record EBITDA Growth and High Margins for 2025

Porch Group Inc. (NASDAQ:PRCH) is one of the best small cap tech stocks with high upside potential. On February 11, Porch Group reported earnings for 2025, highlighted by an 11-fold increase in adjusted EBITDA, which reached $77 million. The company’s Q4 featured $112 million in revenue and an impressive 81% gross margin, reflecting strong operational discipline. This growth was supported by the successful launch of Porch Insurance in Texas and a surge in active agencies and quote volumes.

Despite these records, the company faces headwinds from a sluggish housing market, which has weighed on transaction volumes within its software and data segments. Management noted that a decline in stock price during Q4 negatively impacted the statutory surplus, and they do not anticipate the double-digit price increases seen in previous years to continue into 2026.

Looking forward, Porch Group Inc. (NASDAQ:PRCH) has set ambitious 2026 targets, including a revenue range of $475 to $490 million and a reciprocal written premium/RWP goal of $600 million. The company expressed long-term confidence in scaling to $3 billion in RWP, planning to use its excess surplus for potential M&A opportunities, renewal rights deals, and expanded agent partnerships across the country.

Porch Group Inc. (NASDAQ:PRCH) develops and sells software and data solutions, manages insurance services, and provides consumer services related to homeownership in the US. It operates through four segments: Insurance Services, Software & Data, Consumer Services, and the Reciprocal Segment.

While we acknowledge the potential of PRCH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. Follow Insider Monkey on Google News.