Porch Group, Inc.

Good afternoon, and thank you for participating in Porch Group's first quarter 2026 conference call. Earlier today, we issued our earnings release and filed our related form 8K with SEC. The earnings release and today's presentation are available on our investor relations website at ir.porchgroup.com. Before we begin, I'd like to review the company's safe harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995, which provides important cautions regarding forward-looking statements. Today's discussion, including responses to your questions, reflects management views as of today, April 28th, 2026. We undertake no obligation to update or revise these remarks. We will make forward-looking statements that involve risk and uncertainties, and actual results may differ materially. Please refer to the information on this slide in our SEC filings for additional detail. We will also reference certain non-GAAP financial measures. Reconciliations are included in today's earnings release, and also a replay of this webcast is going to be available shortly after the call on our investor relations site. So joining me here today are Matt Ehrlichman, Porch's CEO, Chairman and Founder, John DeBak, Porch's CFO, and Matthew Nagel, Porch's COO. With that, I'll turn the call over to Matt for his key updates.

Thank you, John. Good afternoon, everyone. We are pleased to report a strong start to 2026. Q1 results exceeded expectations, and we're raising our full year guidance for Porch shareholder interest revenue. gross profit and adjusted EBITDA. Portra is now a simpler, higher margin fee and commission based business. One that's built to compound premium and cash flow over time without the earnings volatility often associated with risk bearing insurance carriers. Last year, we proved out the profitability of our business model. 2026 is the first year with tangible year over year comparables for Port shareholder interest results. And we demonstrated significant and sustainable growth, especially in insurance services, which delivered 50% year-over-year revenue growth in the quarter. From here, our strategy is straightforward, scale rapidly and with discipline, and continue to invest in the differentiated assets that strengthen our moat, our data advantage, our underwriting and pricing capabilities, and our differentiated products for consumers. Okay, so for the first quarter, we delivered results for port shareholder interest that reflected continued strength in insurance services and continued discipline across the business. Specifically, you can see here reciprocal written premium or RWP was $114 million of 18% year over year. Revenue was $109 million of 29% year over year. Q1 gross profit was $91 million resulting in an 83% gross margin. Q1 adjusted EBITDA was $20 million, an 18% margin. Earlier, I said we intend to scale rapidly and with discipline. The clearest way to see that is through our insurance growth engine, capacity, top of funnel, and conversion, as well as the latest underwriting results. Over the next four slides, you'll see the progress we've made. And importantly, after seeing these drivers in sequence, I think it becomes clear why we're confident in continued RWP growth acceleration. So first here, capacity. Statutory surplus is the key guidepost, and you can see the progress over the last year, growth of 59% and $61 million year over year. The takeaway is that the Capital Foundation is far stronger today and supports our growth plans, not just this year, but well into the future. Q1's statutory surplus of $165 million supports north of $800 million in premiums, well above our $600 million RWP target for this year. When including incremental non-admitted assets of a little north of $100 million, the reciprocal then has the ability to support more than $1.25 billion of premium. The reciprocal's reinsurance program is in place to protect this capital across cycles. On April 1st, the reciprocal wrapped up a very successful renewal of its reinsurance program. Similar to prior years, this included a panel of 40-plus A-rated partners offering catastrophic weather protection. We're happy to report that the reciprocal will benefit from an approximately 20% decline in costs for excess of loss reinsurance, driven by strong underwriting results and improved risk performance, which further bolsters its surplus and overall margin in the system. So with capacity in place, the next driver is distribution, and this starts with agency growth. Think of this as a land and expand strategy. We're growing our agency footprint and expanding production across our existing partners' locations. That's why we highlight producing agency branch locations. It's a metric we use internally to gauge distribution depth. As we expand reach at existing agencies, this translates to quote volumes. For Q1, you can see here, producing agency branch locations increased 181% year over year, while quote volumes grew 69% year over year and improved on an absolute basis for the sixth straight quarter. All in, the funnel is expanding, and we're increasing the pool of potential new customers. Moving down the funnel, conversion is the lever that turns quote volumes into new customers and premiums. The reciprocal's stellar pricing and underwriting results means we have more margin in the system than other carriers. Given that and our understanding of the elasticity of the conversion rate curve, we can take targeted actions like those we started in November to bring in more low risk consumers and grow premium at our targeted rates while maintaining the reciprocal's exceptional underwriting outcomes and profitability. In the chart here, you can see the clear step up in conversion that began in Q4 following the activation actions. That improvement continued into Q1, and year-over-year conversion rates have almost doubled. Note that we've only seen a 5% year-over-year decline in premium per new customer while producing these Q1 gains. At the start of 2026, we launched Porch Insurance in Texas, Over time, Porsche Insurance will serve as another tailwind for conversion as its product differentiation helps open us up to new segments of consumers. All right, so now the results. And this is probably the most important message today. When capacity, top of funnel, and conversion improve together, it shows up in new customer growth. As this chart shows, RWP from new customers stepped up meaningfully. approximately tripling year over year, which is the clearest proof that the growth engine is working. We're certainly excited about continuing this momentum. We've reached an inflection point for growth, but what's notable is the way we are driving this growth. In Q1, total policies written across new and renewal grew 33% year over year. Another clear proof point that the growth engine is on track. Matthew will cover this in more detail later in the call. All right, so we've just walked through the premium drivers and how the system is designed to deliver rapid growth. And now we move into the discipline and sustainability side of it, which you can see through the reciprocals underwriting results. These charts depict the 2025 AM Vest annual market share data. The takeaway is simple. the reciprocal continues to perform among the best in its peer set. Top quartile nationally and in Texas for the combined ratios. And here's what's so exciting about these combined ratios. This includes all of the margin paid via fees to Porch Group as part of the reciprocal's expenses. In 2025, Porch's insurance services segment saw a margin adjusted EBITDA to RWP of 21%. So you can do the math. If you were to reduce the expenses and thus the combined ratio by this amount, it truly is exceptional combined ratio results. Putting all this together, our goal is simple. We aim to drive compounded port shareholder interest earnings growth while maintaining strong health at the reciprocal. As we deliver on those two key objectives, We can scale this business rapidly and profitably for decades to come. With that, I'll turn it over to Sean to cover the financials and guidance.

Thank you, Matt. Good afternoon, everyone. I'll start off with a high-level summary of our financials. Overall, we're pleased with our first quarter results, which exceeded expectations across reciprocal written premium, revenue, gross profit, and adjusted EBITDA. We raised our outlook for the year, driven by our insurance services segment. Insurance services delivered strong Q1 results, particularly in RWP, driven by new customer additions. The team continues to add agencies and quotes, and we saw higher quote-to-bind conversion rates, as Matt noted. Two quick housekeeping items before we dive deeper into the results. First, as a reminder, we launched the reciprocal on January 1st, 2025, and we updated our segment reporting at that time. As a result, this Q1 2026 represents the first period with tangible year-over-year comps for RWP as well as Port Shareholder Interest and Insurance Services financials. And second, related to that, Q1 2025 was the final quarter of the legacy captive reinsurance terms that benefited the prior year quarter by $16 million. So while adjusted EBITDA still grew nicely this quarter, Q1 2025 is our last tough call. Okay, similar to Matt's remarks, my comments focus on port shareholder interest since generating cash for port shareholders remains our ultimate objective. Under GAAP, we consolidate the reciprocal exchange financials, which are included in the press release and our 10Q. Q1, 2026 port shareholder interest revenue was $109 million. Insurance services contributed 68%, software and data 20%, with the remainder from consumer services. Associated gross profit was $91 million with an 83% gross margin, driven by insurance services' 85% gross margin. Adjusted EBITDA was $20 million ahead of expectations with insurance services delivering a 37% adjusted EBITDA margin. Okay, now let's move a little deeper into the segment results, starting with insurance services. Insurance services revenue was $75 million, growth of 50% over the prior year and exceeding expectations driven by higher fee-based revenue with higher RWP volume and new customer additions. As Matt highlighted, premium for new customers almost tripled year over year. And we saw a 33% increase in total reciprocal policies written. Gross profit was $64 million, delivering a strong 85% gross margin. Adjusted EBITDA was $27 million, or a 37% margin. While we continue to see strong incremental EBITDA margins from revenue growth, particularly the fee revenue that has a relatively fixed cost base, the year-over-year margin decline simply reflects the changes to our captive reinsurance terms that I mentioned. Overall, adjusted EBITDA as a percentage of RWP was 24% in Q1, reflecting a strong margin as we scale RWP and continued operating leverage in insurance services. On a trailing 12-month basis, adjusted EBITDA as a percentage of RWP was 20%. Okay, shifting to software and data, as a reminder, most of our vertical software businesses charge per transaction. So results do remain tied to US housing activity, which continues to be at near cyclical trough levels. And we do expect tailwinds as housing recovers. In the first quarter of 2026, results were relatively flat year over year. Software and data revenue was $22 million. Gross profit was $17 million with a 75% gross margin. Adjusted EBITDA was $4.6 million. Consumer services also reflects softer housing conditions. Segment revenue was $15 million, increasing slightly over the prior year. Gross profit was $13 million, an 87% gross margin, and up 390 basis points year over year, driven by mixed shift to higher quality revenue. And finally, adjusted EBITDA was approximately break-even. Moving now to the balance sheet, we ended Q1 with cash plus investments of $134 million, up $13 million from December 31st, 2025. Port shareholder interest cash flow from operations was $20 million in the quarter. As a reminder, cash flow timing is seasonal. We pay interest on our notes in the second and fourth quarters of each year. In March, we exhausted the share repurchase authorized by the board and repurchased 334,000 shares for $2.5 million, or an average of $7.48 per share. And as a reminder, this was the maximum amount allowed by our 2028 notes indenture. Our 2026 notes have a remaining balance of $7.8 million, which we expect to settle at maturity on September 15th, 2026 with cash from the balance sheet. Okay, and shifting to our 2026 guidance for poor shareholder interest, our 2026 target of $600 million organic RWP represents 25% year-over-year growth. Given the strong start to the year, we are raising our guidance for revenue, gross profit and adjusted EBITDA. We are raising our revenue guidance to a range of $495 million to $507 million, representing 20% year-over-year growth at the midpoint, up 400 basis points versus prior guidance. We are raising our gross profit guidance to a range of $401 million to $413 million, still with an 81% gross margin at the midpoint. We are raising our adjusted EBITDA guidance to a range of $103 million to $109 million, still a 21% adjusted EBITDA margin at the midpoint. From a modeling perspective, we continue to expect trough-like U.S. housing conditions and thus flattish year-over-year results in software and data and consumer services, with the guidance increase attributable to strength and insurance services. And I'll now hand over to Matthew to provide a strategic update and a KPI review. Thank you, Sean.