Shares of Porch Group, Inc. (PRCH) plummeted 11.65% in after-hours trading on Wednesday, despite the company reporting better-than-expected third-quarter results. The sharp decline came as investors focused on the company's net loss, overshadowing its revenue and adjusted EBITDA beats.

For the third quarter of 2025, Porch Group reported revenue of $115.1 million, surpassing the IBES estimate of $111.2 million. The company's adjusted EBITDA came in at $20.6 million, significantly higher than the estimated $16.7 million. However, Porch Group posted a net loss of $10.9 million for the quarter, which likely contributed to the negative market reaction.

Despite the strong top-line performance and improved adjusted EBITDA, investors appear concerned about the company's profitability. The after-hours sell-off suggests that market participants may be prioritizing bottom-line results over revenue growth. It's worth noting that Porch Group ended the quarter with a solid cash and investments position of $132.1 million, which could provide some reassurance about the company's financial stability amidst ongoing losses.