We are exposed to a variety of market and other risks, including the effects of changes in interest rates, inflation, availability of funding sources, hazard events, and specific asset risks. Interest Rate Risk Debt The market risk inherent in our financial instruments and financial position represents the potential loss arising from adverse changes in interest rates. As of June 30, 2026, and December 31, 2025, we had interest-bearing debt of $475.1 million and $475.1 million, respectively. Our 2026 Notes have a principal balance of $7.8 million as of June 30, 2026, a fixed coupon rate of 0.75%, and an effective interest rate of 1.3%. Our 2028 have a principal balance of $333.3 million as of June 30, 2026, a fixed coupon rate of 6.75%, and an effective interest rate of 17.9%. Our 2030 have a principal balance of $134.0 million as of June 30, 2026, a fixed coupon rate of 9.00%, and an effective interest rate of 9.2%. Interest expense includes both contractual interest expense and amortization of debt issuance costs and discount. The following table provides details of interest expense. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Contractual interest expense for 2026 Notes $ 14 $ 230 $ 29 $ 556 Contractual interest expense for 2028 Notes 5,625 5,625 11,250 11,250 Contractual interest expense for 2030 Notes 3,015 1,005 6,030 1,005 Total contractual interest expense 8,654 6,860 17,309 12,811 Amortization of debt issuance costs and discount for 2026 Notes 10 167 20 403 Amortization of debt issuance costs and discount for 2028 Notes 6,131 5,114 12,241 10,251 Amortization of debt issuance costs for 2030 Notes 96 36 190 36 Total amortization of debt issuance costs and discount 6,237 5,317 12,451 10,690 Capitalized interest and other (116) (121) (379) (199) Total interest expense $ 14,775 $ 12,056 $ 29,381 $ 23,302 Because the coupon rates are fixed, interest expense on our debt will not change if market interest rates increase. Investments As of June 30, 2026, Porch has a $65.1 million portfolio of fixed income securities and an unrealized gain (loss) of $(0.4) million while the Reciprocal has a $197.1 million portfolio of fixed income securities and an unrealized gain (loss) of $(2.5) million, as described in Note 5 in the unaudited Notes to Condensed Consolidated Financial Statements included in Part I, Item 1, of this Quarterly Report. In a rising interest rate environment, the portfolio would result in unrealized losses. Surplus Note As of June 30, 2026, Porch held approximately $106 million of surplus notes due from the Reciprocal which pay interest of 9.75% plus SOFR. These surplus notes are included in the Reciprocal’s statutory surplus and are eliminated in Porch’s consolidated financial statements for GAAP reporting. A one-percent decrease in SOFR would have resulted in a net decrease in interest income to Porch of $1.1 million on an annualized basis. Other As of June 30, 2026, accounts receivable balances were $14.2 million and $11.4 million for Porch and the Reciprocal, respectively, and reinsurance balance due for the Reciprocal was $7.9 million. These are not interest-bearing assets and are generally collected in less than 180 days. As such, we do not consider these assets to have material interest rate risk. 70 Table of Contents Inflation Risk General economic factors beyond our control and changes in the global economic environment, specifically fluctuations in inflation, including access to credit under favorable terms, could result in lower revenues, higher costs, and decreased margins and earnings in the foreseeable future. While we take action wherever possible to reduce the impact of the effects of inflation, in the case of sustained inflation across several of the markets in which we operate, it could become increasingly difficult to effectively mitigate the increases to costs. In addition, the effects of inflation on consumers’ budgets could result in the reduction of consumer spending habits, specifically in the move and post-move markets. If unable to take actions to effectively mitigate the effect of the resulting higher costs, our profitability and financial position could be materially and adversely impacted. Foreign Currency Risk There was no material foreign currency risk for the six months ended June 30, 2026. Our activities to date have been conducted primarily in the United States. Other Risks We are exposed to a variety of market and other risks, including risks to the availability of funding sources, reinsurance providers, weather and other catastrophic hazard events, and specific asset risks. As the manager of the Reciprocal, our results of operations are tied to the growth and financial condition of the Reciprocal. If any events occur that impair the Reciprocal's ability to grow or sustain its financial condition, including but not limited to reduced financial strength ratings, disruption in the independent agency relationships, significant catastrophe losses, or products not meeting customer demands, the Reciprocal could find it more difficult to retain its existing business and attract new business. A decline in the business of the Reciprocal almost certainly could have as a consequence a decline in the total premiums paid and a correspondingly adverse effect on the amount of the management fees we receive. We also have an exposure to a concentration of credit risk related to the unsecured receivables due from the Reciprocal for net management fee and other reimbursements.