Porch Group, Inc. (PRCH) shares experienced a significant pre-market plunge of 16.10% on Thursday, following the release of the company's third-quarter earnings report. The sharp decline came despite Porch Group reporting better-than-expected revenue and adjusted EBITDA for Q3 2025, highlighting investors' concerns about the company's profitability.

For the third quarter, Porch Group posted revenue of $115.1 million, surpassing analyst estimates of $111.2 million. The company's adjusted EBITDA also impressed at $20.6 million, significantly higher than the projected $16.7 million. However, these positive metrics were overshadowed by a reported net loss of $10.9 million for the quarter, which appears to be the primary catalyst for the negative market reaction.

The substantial sell-off indicates that market participants are prioritizing bottom-line results over revenue growth and adjusted EBITDA improvements. Despite ending the quarter with a cash and investments position of $132.1 million, which could provide some reassurance about Porch Group's financial stability, investors seem to be focusing on the company's ongoing struggle to achieve profitability. This pre-market plunge suggests that the market is reevaluating Porch Group's valuation in light of its continued net losses, despite its top-line growth.