Good morning, everyone, welcome to Porch Group's 2026 Annual General Meeting of Stockholders. I'm Matt Ehrlichman, Porch Group's Chief Executive Officer, Chairman, and Founder. I now call this meeting to order. Today's presentation, including responses to your questions, reflects management views as of today, June 10th, 2026. We undertake no obligation to update or revise these remarks. We will make forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Please refer to the information in our SEC filings and on our website for additional detail. We will also reference certain non-GAAP financial measures. For definitions and reconciliations to the most directly comparable GAAP measures, please refer to our earnings release furnished on Form 8-K and available on our investor relations website at ir.porchgroup.com.
Joining me here today are Meghan Silver, Porch Group's General Counsel and Secretary, who will cover the general meeting agenda. Alan Pickerill, Porch Group's Lead Independent Director, will cover corporate governance remarks. Following the prepared remarks, we will answer questions from validated shareholders, which can be submitted during the meeting via the Ask a Question box on the virtual meeting website. Please note that this meeting is being recorded. All participants will be in a listen-only mode. This slide presents our board members as of today. Also joining us are representatives from our independent auditors, Grant Thornton. Francis Byrd, who is acting as our Inspector of Elections. I'll now hand over to Meghan Silver to conduct the official business of the meeting. Over to you, Meghan.
Good morning, everyone. Thank you for attending our 2026 Annual Meeting of Stockholders. We're pleased to once again conduct our annual meeting virtually. If you experience any technical difficulties during the meeting, please call the Broadridge technical support number on their website. Notice that this meeting was duly provided to stockholders entitled to vote. We commenced mailing of our proxy statement on or about April 17th, 2026, to our stockholders of record as of close of business on April 13th, 2026. We've made the agenda, proxy statement, and meeting rules and procedures available on the virtual meeting website. Only matters for which notice has been legally given in accordance with our bylaws may be brought before today's meeting. Since legal notice of this meeting has been given, a quorum is present, I declare that the meeting is properly convened for business and the polls are open.
Stockholders who previously voted their proxies do not need to vote again today unless they wish to change their earlier vote. Stockholders that wish to vote live during the meeting may do so through the meeting website using their control number. I will read the proposals that are up for a vote today as detailed in the meeting agenda. Our first item of business is to elect eight directors to serve until the 2027 annual meeting of Porch stockholders, absent earlier resignation or removal. The following are the directors who have been nominated for election: Matthew Ehrlichman, Sean Kell, Rachel Lam, Alan Pickerill, Amanda Reierson, Maurice Tulloch, Camilla Velasquez, and Regi Vengalil. The board recommends that stockholders vote for the eight director nominees.
The second matter to be voted on at today's meeting is the ratification of Grant Thornton's appointment to serve as the company's independent registered public accounting firm for the fiscal year ending December 31, 2026. The board recommends that stockholders vote for this proposal. The third matter to be voted on at today's meeting is the approval of the compensation of our named executive officers on an advisory, non-binding basis. The board recommends that stockholders vote for this proposal. The fourth and final matter to be voted on at today's meeting is the approval and authorization of the Porch Group employee stock purchase plan. The board recommends that stockholders vote for this proposal. I will now pause for a few seconds to permit final voting before I close the polls. We now appear to have completed all voting. It is 10:04 A.M. Pacific, and I hereby declare the polls closed.
The Inspector of Elections counted the votes received by proxy before the meeting. If you voted today, it will be tallied and included in our final vote. Based on the preliminary results, each of the eight directors has been elected. The proposal to ratify Grant Thornton as our independent auditor for the 2026 fiscal year has been approved. The advisory vote to approve executive compensation on an advisory, non-binding basis has been approved. Finally, the Porch Group employee stock purchase plan has been authorized and approved. The Inspector of Elections will provide final certified results to me after this meeting. Within four business days of this meeting, we will publish the final results in a Form 8-K filed with the Securities and Exchange Commission. That concludes the preliminary vote report and business portion of our meeting. I will now turn the call back over to Matt Ehrlichman.
Thanks, Meghan. Before we move forward, I'd like to take a moment to reflect on our progress and where we're headed. Porch is a new kind of homeowners insurance company, and we win by combining leading vertical software, home buyer services, and unique property data to drive advantaged underwriting and better protection for policyholders. Over the last year, we've been executing a clear plan, simplifying the business, improve the quality of earnings, and re-accelerate growth from a stronger foundation. 2025 was transformational for Porch. We delivered results ahead of expectations and made meaningful progress toward a simpler, higher margin fee and commission-based model. Starting with profitability, we ended 2025 with $77 million of adjusted EBITDA, an 11x increase over the prior year, and converted $65 million of that into Porch shareholder interest cash flow from operations.
At the reciprocal, statutory surplus grew by approximately $50 million and end of the year, almost 50% higher than 2024, an important additional layer of value creation alongside earnings. We also strengthened the growth engine. We more than doubled active agencies, nearly tripled quote volumes, and saw conversion improve as we exited 2025 and moved into 2026. Underwriting performance remained strong. In our year-end materials, we noted the reciprocal's 2025 gross loss ratio of 27%, a testament to our unique property data and advantage underwriting capabilities. With the foundation now in place, we're focused on scaling with discipline. Looking to 2026, our focus is straightforward, further scale reciprocal written premium, and deliver over $100 million of adjusted EBITDA while continuing to expand margins over time. I want to thank our employees for their execution and commitment and our shareholders for your continued support. I'll now hand it over to Alan.
Thanks, Matt. Hello, everyone. As Lead Independent Director speaking for the independent board, I'm pleased to join you today. From a governance standpoint, the board has been focused on strengthening risk oversight and controls as the business scales. That includes enhanced cybersecurity and data governance, and given the current landscape, formal AI governance with focused board and audit committee oversight. We've also maintained a pay-for-performance compensation philosophy that emphasizes multi-year alignment to create long-term value for our shareholders. More broadly, we continue to operate governance practices designed to advance and protect shareholder interests, including annual director elections, an empowered Lead Independent Director, strong stock ownership guidelines, and a clawback policy and prohibitions on hedging Porch securities. Across all of these areas, the board remains deeply committed to building a strong, transparent, and values-driven company.
We thank you for your continued support, and with that, I'll turn the meeting back to Matt.
Thanks, Alan. As we discussed today, we made meaningful progress over the last year and built a strong foundation for durable, profitable growth. We're focused on continuing to execute against that plan, and we're confident in the opportunity ahead. With that, we'll open the call for questions. No questions have been submitted. With that'll be it for today. Thank you all for joining. Our investor relations website and contact information are displayed on the slide should you have any further questions and wish to reach out. We now call this meeting to an official close. Take care.
Today's annual meeting has concluded. Thank you for attending today's presentation. You may now disconnect.