Forensic Analysis · Technology / Software · as of Jun 27, 2026
Porch Group, Inc. (PRCH)
A forensic read on Porch Group, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-2.2
Altman Z-score
Clean
Earnings quality
6
Forensic signals
-171.8%
ROE
$1.8B
Market cap
Porch Group, Inc. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is -2.2, placing it in the Distress zone. 6 forensic signals were flagged in its latest SEC filings, led by accruals ratio.
What the filings flag
+63.0%Accruals ratio.Net operating assets grew +63.0% relative to their average in FY2025 — the accrual component of earnings. Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The cash-flow cross-check agrees: reported earnings ran behind operating cash by -25% of net operating assets.
3%Return on invested capital.Return on invested capital is 3% and rising from -42% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+2.2%/yrShare-count dilution.Diluted share count changed +7% over the last 3 years to FY2025 (+2.2%/yr). The count is GROWING — existing holders are being diluted. That's ~2.2% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~7%.
6% of revStock-based comp load.Stock-based compensation ran 6% of revenue and 44% of free cash flow in FY2025 — about $0.28 per diluted share. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.
stoppedShareholder returns — halted.Capital returns have STOPPED — $6M of buybacks + dividends in FY2023, but ~$0 in FY2025. A halt usually means the company is conserving cash; understand why before reading it as neutral.
$99MGoodwill impairments.Took $99M of goodwill writedowns across 2 year(s) (FY2022 ($44M), FY2023 ($55M)). Writedowns mean past acquisitions underperformed what was paid for them — worth weighing on capital-allocation skill.
Key fundamentals
Net Margin-0.7%
Free Cash Flow$66.0M
Latest Revenue$482.4M
Revenue Growth YoY+10.2%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Porch Group, Inc.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about PRCH's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown