Financial Data and Key Metrics Changes - Total revenue grew 16% year-over-year to $90.4 million, with core revenue increasing 14% to $83.9 million [27] - Adjusted EBITDA rose 14% to $29.7 million, with an adjusted EBITDA margin of 33% compared to 34% a year ago [29] - Client retention improved to 85%, up from 84% for four consecutive quarters [28] Business Line Data and Key Metrics Changes - Franchise premiums reached $976 million, up 18%, while corporate premiums were $206 million, a 1% increase [28] - Franchise producers at quarter end were 2,124, up 1% year-over-year, with producers per franchise growing 6% [22] - The corporate team achieved new business commissions growth of 20% year-over-year, accelerating from 13% in the previous quarter [24] Market Data and Key Metrics Changes - Total written premium for the quarter was $1.2 billion, a 15% increase from the previous year [28] - Policies in force grew 13% year-over-year to 1.9 million [28] - Contingent commissions for the quarter were $4.5 million, an increase of 82% compared to $2.5 million in the previous year [29] Company Strategy and Development Direction - The company aims to become the largest distributor of personal lines insurance in the U.S. and has identified significant growth opportunities in a fragmented market [6][8] - Key strategic initiatives include expanding existing agencies, launching new franchises, and enhancing technology to improve client experience [9][10] - The digital agent technology is expected to revolutionize personal lines insurance distribution and drive significant growth [14][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering a stable pricing cycle, which is expected to enhance client retention and overall business efficiency [16][26] - The company anticipates continued acceleration in revenue growth and improvements in client retention as market conditions stabilize [27][30] - Management highlighted the importance of technology investments and partnerships in driving future growth [19][22] Other Important Information - The company has invested $10.9 million into the digital agent platform in 2025, with plans to invest between $25 million and $35 million in 2026 and 2027 [19] - The company repurchased and retired 685,000 Class A shares, utilizing $58.7 million of its share repurchase authorization [30] Q&A Session Summary Question: Can you break out the margin profile of franchise versus corporate versus enterprise? - Management indicated that the enterprise sales business will have a more impactful margin profile over the long term compared to corporate and franchise businesses [34] Question: How many carriers are on the digital agent right now? - Currently, there are about 12 carriers integrated with the digital agent, and major carriers are supportive of the initiative [37][38] Question: What are you seeing in home sales and how is that affecting written premium? - Management noted that housing activity remains depressed, but the company is well-positioned to capture leads as the market improves [41] Question: What is the expectation for producer count growth? - Management expects consistent producer count growth, focusing on quality and strategic geographic expansion [46] Question: Why is there a wide range in the full-year outlook? - The wide range is due to the variability of contingent commissions and the unpredictable nature of the market [66] Question: How will the digital agent impact future growth? - The digital agent is expected to allow the company to penetrate additional markets and significantly increase total written premium growth [68]

Financial Data and Key Metrics Changes - Total revenue grew 16% year-over-year to $90.4 million, with core revenue increasing 14% to $83.9 million [26] - Adjusted EBITDA rose 14% to $29.7 million, with an adjusted EBITDA margin of 33% compared to 34% a year ago [29] - Client retention improved to 85%, up from 84% for four consecutive quarters [26][27] Business Line Data and Key Metrics Changes - Franchise premiums totaled $976 million, up 18%, while corporate premiums were $206 million, a 1% increase [27] - Franchise producers at quarter end were 2,124, up 1% year-over-year, with producers per franchise growing 6% [20] - The corporate team achieved new business commissions growth of 20% year-over-year, accelerating from 13% in the second quarter [23] Market Data and Key Metrics Changes - Total written premium for the quarter was $1.2 billion, a 15% increase from the previous year [27] - Policies in force grew 13% year-over-year to 1.9 million, with the growth rate accelerating during the quarter [27] - Contingent commissions for the quarter were $4.5 million, an increase of 82% compared to $2.5 million in the previous year [28] Company Strategy and Development Direction - The company aims to become the largest distributor of personal lines insurance in the U.S. and has identified significant growth opportunities in a fragmented market [5][6] - Key strategic initiatives include expanding existing agencies, launching new franchises, and enhancing technology to improve client experience [8][10] - The company is investing heavily in its digital agent platform, expecting it to drive substantial growth in total written premiums over the next five years [19][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering a stable pricing cycle, which is expected to enhance client retention and overall business efficiency [14][25] - The company anticipates continued improvement in client retention and premium growth, with expectations for acceleration in 2026 [26][49] - Management highlighted the importance of technology investments and partnerships in driving future growth and improving service delivery [18][20] Other Important Information - The company repurchased and retired 685,000 Class A shares, utilizing $58.7 million of its share repurchase authorization [30] - The company expects to invest between $25 million and $35 million annually in the digital agent platform for 2026 and 2027 [18] Q&A Session Summary Question: Can you break out the margin profile of franchise versus corporate versus enterprise? - Management indicated that the enterprise sales business will have a more impactful margin profile in the long term compared to corporate or franchise business, with franchise business still being the primary driver of total written premium [33][34] Question: How many carriers are currently on the digital agent? - Currently, there are about 12 carriers integrated with the digital agent, and management is in discussions with major carriers for further integration [36][37] Question: What is the outlook for home sales and how does it affect written premium? - Management noted that while housing activity remains depressed, the company is well-positioned to capture market share as housing activity improves [39][40] Question: What is the expected trajectory for client retention next year? - Management is optimistic about continued improvement in client retention, driven by investments in service delivery tools and a stable pricing environment [73] Question: Were there any one-time revenue adjustments this quarter? - Management confirmed there were no one-time revenue adjustments in the third quarter, and improvements in commission rates are ongoing [75]

Financial Data and Key Metrics Changes - Total revenue grew 16% year over year to $90.4 million, with core revenue increasing 14% to $83.9 million [29] - Adjusted EBITDA for the quarter grew 14% to $29.7 million, with an adjusted EBITDA margin of 33% compared to 34% a year ago [33] - Client retention improved to 85%, up from 84% for four consecutive quarters [30] - Total written premiums for the quarter were $1.2 billion, up 15% from a year ago [31] Business Line Data and Key Metrics Changes - Franchise premiums were $976 million, an increase of 18%, while corporate premiums were $206 million, a 1% increase from a year ago [31] - Franchise producers at quarter end were 2,124, up 1% from a year ago, with producers per franchise growing 6% [23] - The corporate team generated new business commissions growth of 20% year over year, accelerating from 13% in the second quarter [26] Market Data and Key Metrics Changes - The industry has over $530 billion in total written premium annually, with the company growing from over $2 billion in premiums in 2022 to over $4 billion in 2025 [7] - The company still represents less than 1% of total market share, indicating significant growth potential [7] Company Strategy and Development Direction - The company aims to become the largest distributor of personal lines insurance in the U.S. and has identified five key strategic initiatives to support this goal [10] - The digital agent technology is expected to revolutionize personal lines insurance distribution, allowing for a more seamless client experience [15] - The company plans to invest between $25 million and $35 million annually in the digital agent platform for 2026 and 2027 [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering a stable pricing cycle, which is expected to improve client retention and overall business efficiency [17] - The company anticipates continued acceleration in revenue growth and premium growth in 2026 [65] - Management highlighted the importance of technology investments and partnerships in driving future growth [20] Other Important Information - The company repurchased and retired 685,000 Class A shares, utilizing $58.7 million of its share repurchase authorization [34] - The company expects total revenues for 2025 to be between $350 million and $385 million, representing organic growth of 11% to 22% [34] Q&A Session Summary Question: Can you break out the margin profile of franchise versus corporate versus enterprise? - The enterprise sales business is expected to have a more impactful margin profile over the long term compared to corporate or franchise business [37] Question: How many carriers are involved in the digital agent? - Currently, there are about 12 carriers integrated with the digital agent, and major carriers are supportive of the integration [42][44] Question: What is the outlook for home sales and how does it affect written premium? - The housing market remains depressed, but the company is building a referral partner network to capture lead flow [47] Question: What is the expected growth in producer count? - Producer count is expected to grow consistently, with a focus on quality over quantity [54] Question: Why is the revenue trajectory not more upbeat? - The company is optimistic about the direction of the business, but is cautious due to the variability in contingent commissions [58] Question: What needs to happen to reach the high end of revenue guidance? - The contingent commissions are variable, and the company is optimistic about potential upside based on current market conditions [70] Question: How will the digital agent impact growth? - The digital agent is expected to allow for significant market penetration and could drive total written premium growth of over 40% in the next five years [76]

Financial Performance - Total revenue for Q3 2025 was $90.4 million, representing a 16% increase compared to the prior-year period[5] - Core revenue for Q3 2025 was $83.9 million, a 14% increase from $73.5 million in the prior-year period[7] - Net income for Q3 2025 was $12.7 million, slightly up from $12.6 million in the prior-year period[9] - Adjusted EBITDA for Q3 2025 was $29.7 million, an increase from $26.1 million in the prior-year period[9] - The net income margin for Q3 2025 was 14%[9] - Total revenues for the three months ended September 30, 2025, were $90,435,000, a 15.8% increase from $78,035,000 in the same period of 2024[20] - Core revenue reached $83,874,000 for the three months ended September 30, 2025, compared to $73,516,000 in 2024, reflecting a 14.1% growth[20] - Adjusted EBITDA for the three months ended September 30, 2025, was $29,688,000, with an adjusted EBITDA margin of 33%[20] - Net income for the three months ended September 30, 2025, was $12,690,000, resulting in a net income margin of 14%[20] - Adjusted EPS for Q3 2025 was $0.46, compared to $0.50 in Q3 2024[33] - Total Core Revenue for the nine months ended September 30, 2025 was $239,779,000, compared to $205,762,000 for the same period in 2024[28] Premiums and Commissions - Total written premiums increased by 15% to $1.2 billion in Q3 2025[4] - The company expects total written premiums for 2025 to be between $4.38 billion and $4.65 billion, representing growth of 15% to 22%[12] - QTD Written Premium for Q3 2025 was $1,181,825,000, a significant increase from $1,028,736,000 in Q3 2024[35] - Renewal Royalty Fees increased to $45,687,000 for the three months ended September 30, 2025, compared to $38,070,000 in the same period of 2024, marking a 20.5% increase[20] - New Business Commissions rose to $7,527,000 for the three months ended September 30, 2025, from $6,249,000 in 2024, reflecting a 20.5% growth[20] Assets and Liabilities - Total current assets decreased to $93,083,000 as of September 30, 2025, from $108,564,000 as of December 31, 2024[22] - Total liabilities increased significantly to $574,316,000 as of September 30, 2025, compared to $358,577,000 as of December 31, 2024[22] - The accumulated deficit grew to $(145,787,000) as of September 30, 2025, from $(15,401,000) at the end of 2024[22] Employee and Operational Metrics - Employee compensation and benefits, excluding equity-based compensation, were $43,137,000 for the three months ended September 30, 2025, up from $36,124,000 in 2024[20] - The corporate agent headcount increased by 14% to 523 compared to the prior-year period[5] - Policies in Force increased to 1,853,000 as of September 30, 2025, from 1,636,000 a year earlier[35] - Client Retention improved to 85% in Q3 2025, up from 84% in Q3 2024[35] Future Expectations - Total revenues for 2025 are expected to be between $350 million and $385 million, representing growth of 11% to 22%[12]

Core Insights - Goosehead Insurance, Inc. reported a total revenue increase of 16% year-over-year, reaching $90.4 million for the third quarter of 2025 [4][6] - Core revenue, which excludes certain non-recurring items, grew by 14% to $83.9 million compared to the same period last year [4][6] - The company achieved a net income of $12.7 million, slightly up from $12.6 million in the prior year, with a net income margin of 14% [6][7] - Adjusted EBITDA increased by 14% to $29.7 million, although the adjusted EBITDA margin decreased to 33% [6][7] - Total written premiums rose by 15% to $1.2 billion, indicating strong growth in the insurance segment [4][6] Financial Performance - Total operating expenses for Q3 2025 were $69.2 million, up from $61.6 million in the prior-year period, with significant increases in employee compensation and benefits [5][6] - Employee compensation and benefits rose to $48.7 million, reflecting investments in corporate producers and technology [5][6] - The company repurchased $58.7 million of shares at an average price of $85.58 during the quarter, indicating a commitment to returning value to shareholders [3][9] Key Metrics - Policies in force increased by 13% to approximately 1,853,000 [6][25] - The corporate agent headcount grew by 14% to 523, while total franchise producers increased by 1% to 2,124 [6][25] - Client retention remained strong at 85%, with premium retention at 93% [25] Future Outlook - For the full year 2025, total written premiums are expected to be between $4.38 billion and $4.65 billion, representing growth of 15% to 22% [14] - Total revenues for 2025 are projected to be between $350 million and $385 million, indicating growth of 11% to 22% [14]

Core Insights - Goosehead Insurance, Inc. is set to release its quarterly earnings on October 22, 2025, with analysts predicting an EPS of $0.47 and revenue of approximately $91 million [1] - Analysts from Zacks Investment Research expect a decline in earnings for the quarter ending September 2025, despite an anticipated revenue increase, creating a complex financial backdrop [2] Financial Metrics - The company has a price-to-earnings (P/E) ratio of 57.55, indicating high expectations for future growth, with investors paying $57.55 for every dollar of earnings [3] - Goosehead's price-to-sales ratio stands at 7.54, and the enterprise value to sales ratio is 7.44, highlighting its valuation relative to sales [3] - The enterprise value to operating cash flow ratio is 29.91, providing insights into the company's financial efficiency [3] Investment Indicators - The earnings yield is 1.74%, reflecting the return on investment [4] - A debt-to-equity ratio of -0.74 suggests a strong equity position relative to debt [4] - The current ratio of 2.92 indicates robust short-term financial stability, showcasing the company's ability to cover short-term liabilities with short-term assets [4]

Core Points - Goosehead Insurance Agency has experienced a data breach that compromised the personal and confidential information of tens of thousands of individuals [2][4] - The breach involved cybercriminals infiltrating Goosehead's inadequately secured network, leading to unauthorized access to sensitive files [2][4] - Murphy Law Firm is investigating claims and evaluating legal options, including a potential class action lawsuit for affected individuals [1][3][4] Data Compromised - The exposed information includes names, Social Security numbers, financial account information, payment card information, medical information, health insurance information, driver's license numbers, and government-issued ID numbers [5] - The compromised data may be sold on the dark web or used for identity theft [4] Legal Actions - Murphy Law Firm is actively seeking individuals affected by the breach to join a class action lawsuit [1][3] - The firm specializes in data breach class actions and has a track record of securing favorable recoveries for clients [4]

Core Viewpoint - Goosehead Insurance, Inc. will report its third quarter 2025 results on October 22, 2025, after market close [1] Group 1: Earnings Announcement - The company will hold a conference call to discuss the results at 4:30 PM ET on October 22, 2025 [2] - Participants can access the call via a registration link and a live webcast will be available on the investor relations website [2] Group 2: Company Overview - Goosehead is a rapidly growing independent personal lines insurance agency with corporate and franchise locations across the United States [3] - The company represents over 200 insurance companies that underwrite personal and commercial lines [3]

Core Viewpoint - Goosehead Insurance (GSHD) is expected to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended September 2025, with the consensus outlook being crucial for assessing the company's earnings picture [1][3]. Earnings Expectations - The consensus EPS estimate for Goosehead is $0.49 per share, reflecting a -2% change year-over-year, while revenues are anticipated to reach $93.39 million, representing a 19.7% increase from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 2.96% higher, indicating a collective reassessment by covering analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Goosehead is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.37%, suggesting a bullish outlook from analysts [12]. Historical Performance - In the last reported quarter, Goosehead was expected to post earnings of $0.53 per share but delivered $0.49, resulting in a surprise of -7.55%. Over the last four quarters, the company has beaten consensus EPS estimates three times [13][14]. Investment Considerations - Despite a positive Earnings ESP, Goosehead currently holds a Zacks Rank of 5, complicating the prediction of an earnings beat [12]. Investors are advised to consider other factors beyond earnings results when making investment decisions [15][17].

Core Points - Goosehead Insurance Agency, LLC has reported a cybersecurity incident affecting the personal information of tens of thousands of individuals [1] - The breach involved unauthorized access to records containing personally identifiable information (PII), including Social Security numbers, driver's license numbers, financial information, and health insurance details [1] Company Summary - Goosehead Insurance Agency is a nationwide property and casualty insurance agency [1] - The company is currently facing investigations related to the data breach, with potential claims for compensation being explored by affected individuals [2] Legal Context - Lynch Carpenter, LLP is investigating claims against Goosehead related to the data breach and is offering assistance to individuals who received breach notifications [2] - Lynch Carpenter is a national class action law firm with extensive experience in data privacy matters [3]