Porch Group buys back $8.9 million of its 2026 convertible notes

SEATTLE - Porch Group, Inc. (NASDAQ: PRCH), a company offering homeowners insurance, has repurchased $8.9 million of its 0.75% Senior Unsecured Convertible Notes due in September 2026. The company, which has seen its stock surge over 330% in the past year according to InvestingPro data, continues to manage its debt position actively. The transaction occurred on Sunday, with the company acquiring the notes for roughly $8.46 million in cash, representing 95% of their par value.

This buyback is part of a larger repurchase plan, with the board of directors previously authorizing the management to repurchase the remaining $29 million of these 2026 Notes. Following this recent transaction, the company aims to retire the outstanding $21 million of 2026 Notes using cash from its balance sheet.

Porch Group’s approach to the homeowners insurance market involves utilizing vertical software solutions in home-related industries, offering services to homebuyers, leveraging data for underwriting, and providing enhanced policyholder protection. With annual revenue of $427 million and a healthy current ratio of 1.79, the company maintains strong liquidity to support its operations. According to InvestingPro’s Fair Value analysis, the stock appears fairly valued at current levels.

The press release emphasized that this announcement is not an offer to purchase or a solicitation of an offer to sell the 2026 Notes or any other securities. Additionally, it clarified that such offers, solicitations, or purchases would not be lawful in any state or jurisdiction where they are prohibited.

The statement also contained forward-looking remarks as defined under the United States Private Securities Litigation Reform Act of 1995. These included expectations regarding future repurchases and financial goals. However, the company noted that these statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations.

Investors are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s views only as of the date of the press release. Porch Group does not commit to updating any forward-looking statements to reflect events or circumstances after the date of the release. For deeper insights into Porch Group’s financial health and future prospects, investors can access comprehensive analysis and 10+ additional ProTips through InvestingPro’s detailed research reports, available as part of its coverage of 1,400+ US stocks.

This news is based on a press release statement from Porch Group, Inc. and the company’s latest financial disclosures and activities are available for review on the SEC’s website.

In other recent news, Porch Group Inc. reported impressive financial results for the first quarter of 2025, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $0.08, contrary to the anticipated $0.10 loss, and recorded revenue of $104.7 million, exceeding the forecasted $79.39 million. Porch Group’s strong performance has led to increased revenue guidance for 2025, now projected between $400 million and $420 million, along with an adjusted EBITDA forecast of $60 million to $70 million. Analysts from Loop Capital raised the stock’s price target from $6.00 to $13.00, citing the successful launch of the new reciprocal exchange insurance model, PIRE, which has improved margins and reduced risks. Meanwhile, Benchmark maintained a Buy rating with a $12.00 price target, following Porch Group’s successful refinancing of its 2026 convertible notes, extending maturity to 2030 and improving its financial position. Keefe, Bruyette & Woods also adjusted the stock’s price target to $7.00, highlighting the company’s first-quarter adjusted EBITDA of $16.9 million, which exceeded both their and consensus estimates. These developments underscore Porch Group’s positive trajectory and the confidence analysts have in its continued growth and profitability.

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