Financial Performance - Total Written Premium grew 29% to $3.8 billion in 2024, up from $3.0 billion in 2023[31] - Total revenue growth was 20% and Total Written Premium growth was 29% in 2024, with a 10-year Total Written Premium CAGR of 42%[57] - Franchise sales generated a 33% increase in premiums during 2024, with a total of 1,103 franchises operating as of December 31, 2024, reflecting a 10% decrease compared to 2023[50] - The company earns 20% of New Business Royalty Fees and 50% of Renewal Royalty Fees from franchise sales, contributing to its core revenue[48] Client Retention and Satisfaction - Client retention rate reached 84% in 2024, which is among the best in the industry[23] - The company achieved a Net Promoter Score (NPS) of 89 in 2024, a decrease from 92 in 2023, while maintaining an 84% Client Retention rate[56] - Goosehead's service centers achieved a 2024 NPS score of 89, leading to an 84% Client Retention rate and a 98% premium retention rate[68] Sales and Production - Average commission rate on new business premium was 14% and on renewal business premium was 12% in 2024[29] - New Business Production per Agent in corporate sales was $66 thousand for agents with less than 1 year of tenure and $115 thousand for those with more than one year[40] - Corporate sales agents with more than three years of tenure averaged 2.8x as much New Business Production per Agent compared to industry best practices[42] - The company’s corporate sales agents generate approximately 2.8 times as much new business as top-performing personal lines agents after three years[62] - Franchise sales agents with over three years of tenure averaged 1.9 times the New Business Production per Agent compared to the industry best practice[47] Technology and Innovation - Goosehead's proprietary technology allows clients to receive quotes in less than two minutes using just three data points[35] - Goosehead's Digital Agent combines millions of data points to deliver tailored insurance quotes to clients[22] - The company has a competitive advantage through its proprietary cloud-based technology platform, which enhances sales and service efficiency[64] - Goosehead aims to leverage technology to enhance operational efficiencies and maintain a competitive edge in the market[68] Franchise Model and Growth - Goosehead has 1,103 operating franchise locations, reflecting significant growth in the franchise model[28] - As of December 31, 2024, Goosehead has operating franchises in 44 states, covering over 98% of the total U.S. population[66] - Total operating franchises decreased by 10% to 1,103 in 2024 from 1,226 in 2023, showing an improvement in franchise turnover compared to the previous year[75] - Franchise owners benefit from reduced startup costs and do not require additional employees or retail locations to launch their agencies[52] Employee Engagement and Culture - More than half of Goosehead's employees are women, and over one-third identify as racially diverse, reflecting the company's commitment to diversity[96] - Goosehead offers a competitive health benefits package, including a 401(k) retirement savings plan with matching contributions that vest over four years[95] - The company has adopted a code of business conduct and ethics that applies to all employees, promoting honest and ethical conduct[100] - Goosehead maintains strong Equal Opportunity and Anti-Harassment policies, ensuring a respectful workplace[97] - The company emphasizes a meritocratic culture, aligning employee incentives with shareholder interests through an Omnibus Incentive Plan[94] - Goosehead provides ongoing professional development through a structured training curriculum for all incoming recruits[92] - The company engages employees and franchise partners through in-person town halls, facilitating real-time updates to its operating platform[93] - Goosehead's operating principles focus on integrity, exceptional service, and creating value, fostering a motivated workforce[99] - Goosehead conducts weekly virtual webinars for ongoing training and mentoring of corporate and franchise agents[92] Operational Efficiency - Service expenses as a percentage of gross commissions were 3.2 times lower than the industry best practice in 2024[64] - The company’s service centers support both new and renewal business, allowing agents to focus on acquiring new clients[64] - Goosehead's compensation for service team employees averaged over $51,000 in 2024, contributing to employee retention[68] Market Opportunity - The U.S. personal lines P&C industry is valued at approximately $453 billion, indicating a significant market opportunity for Goosehead[69] - The company plans to continue expanding its recruiting efforts on college campuses and through targeted internet campaigns to grow its agent count[66] Compliance and Reporting - The company encourages independent reporting of policy violations through a third-party solutions team[98]

Financial Data and Key Metrics Changes - Goosehead Insurance, Inc. reported a total revenue growth of 20% for 2024, with core revenue growth of 17% and premium growth of 29% [19][50] - EBITDA reached nearly $100 million, reflecting a 43% year-over-year increase and a record margin of 32% [19][34] - Adjusted EBITDA for Q4 grew 164% to $37.4 million, up from $14.1 million in the previous year [55] Business Line Data and Key Metrics Changes - Franchise premiums increased by 33% to $778 million, while corporate premiums grew by 9% to $187 million [49][50] - Policies in force as of year-end were 1.7 million, marking a 13% increase [54] - Franchise productivity grew 47% year-over-year in Q4 and 49% for the full year [40] Market Data and Key Metrics Changes - The personal lines insurance market is showing signs of improvement, with auto direct loss ratios decreasing from 74.8% to 64.5% year-over-year, and homeowners' direct loss ratios improving from 81% to 66.8% [17][18] - Contingent commissions for Q4 were $24 million, bringing the full year to $31.4 million, significantly higher than anticipated [51] Company Strategy and Development Direction - Goosehead Insurance aims to expand its franchise distribution and enhance technology capabilities, including the launch of a mobile app and improvements in quote-to-issue technology [29][30][34] - The company is focusing on embedding franchises within existing businesses, such as mortgage servicers, to diversify lead flow and mitigate fluctuations in housing transaction volumes [46][110] - The goal is to achieve a "rule of sixty" performance, combining revenue growth and profit margin exceeding 60% [34] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of insurance in the wake of significant natural catastrophes and emphasized the need for adequate coverage [10][11] - The company remains optimistic about continued growth in 2025, driven by improved market conditions and strategic initiatives [19][60] - Management expressed confidence in the ability to capture additional market share and improve client retention rates [57][106] Other Important Information - Goosehead Insurance ended the year with $54.3 million in cash and total debt of $93.1 million [58] - The company completed a new term loan B offering of $300 million and a revolving credit facility of $75 million [59] Q&A Session Summary Question: Insights on contingent commissions - Management noted that the core performance of the book was better than anticipated, leading to larger contingencies from carriers [66] Question: Direction of EBITDA margin in 2025 - Management expects core revenue to grow faster than expenses, leading to margin expansion over time [69] Question: Product availability across geographies - Management indicated that product availability varies by state, with Texas seeing improvements in the E&S side [75] Question: Guidance on commission rates and client retention - Management anticipates an increase in average commission rates as the admitted market heals and expects gradual improvement in client retention [86] Question: Expectations for hiring and margin accretion - On the franchise side, new hires are margin accretive almost immediately, while corporate agents take about six to eight months to become margin accretive [121] Question: Long-term organic growth guidance - Management expects accelerating core revenue growth in 2025 compared to 2024, despite some conservative estimates due to contingent commissions [95]

Core Insights - Goosehead Insurance (GSHD) reported revenue of $93.92 million for Q4 2024, marking a year-over-year increase of 49.1% and exceeding the Zacks Consensus Estimate of $77.82 million by 20.70% [1] - The company's EPS for the same period was $0.79, significantly higher than the $0.28 reported a year ago, resulting in an EPS surprise of 92.68% compared to the consensus estimate of $0.41 [1] Key Financial Metrics - Total Core Revenue was $67.97 million, below the four-analyst average estimate of $71.76 million, reflecting a year-over-year increase of 19.5% [4] - Total Cost Recovery Revenue was $1.54 million, which is a decrease of 44.4% year-over-year and below the average estimate of $2.19 million [4] - Total Ancillary Revenue reached $24.41 million, significantly surpassing the four-analyst average estimate of $6.61 million, with a year-over-year increase of 630.8% [4] - Core Revenue from New Business Royalty Fees was $6.73 million, slightly above the average estimate of $6.52 million, representing a year-over-year increase of 25.7% [4] - Core Revenue from Agency Fees was $2.09 million, which is below the estimated $2.22 million but shows a year-over-year increase of 36.5% [4] - Ancillary Revenue from Contingent Commissions was $24.02 million, far exceeding the average estimate of $5.51 million, with a year-over-year increase of 688.8% [4] - Core Revenue from Renewal Commissions was $18.17 million, below the average estimate of $19.65 million, but still reflects a year-over-year increase of 4.8% [4] - Core Revenue from New Business Commissions was $6 million, below the average estimate of $6.85 million, with a year-over-year increase of 8.8% [4] - Core Revenue from Renewal Royalty Fees was $34.99 million, slightly above the average estimate of $33.79 million, representing a year-over-year increase of 28.7% [4] - Cost Recovery Revenue from Initial Franchise Fees was $1.33 million, below the average estimate of $2.06 million, reflecting a year-over-year decrease of 45.8% [4] - Cost Recovery Revenue from Interest Income was $0.21 million, slightly above the average estimate of $0.20 million, but shows a year-over-year decrease of 32.8% [4] Stock Performance - Goosehead's shares have returned +5.8% over the past month, contrasting with the Zacks S&P 500 composite's -0.5% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]

Goosehead Insurance topped fourth-quarter expectations with strong double-digit percentage growth in revenues and profits.Goosehead Insurance (GSHD -0.97%) announced its results for the fourth quarter after the close of trading on Feb. 24. The personal lines insurance agency reported adjusted earnings per share (EPS) of $0.79, well in excess of the estimated $0.40. Revenue growth for the quarter was likewise strong, reaching $93.9 million compared to the expected $78 million. MetricQ4 2024Q4 2024 Analysts' ...

Goosehead Insurance (GSHD) came out with quarterly earnings of $0.79 per share, beating the Zacks Consensus Estimate of $0.41 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 92.68%. A quarter ago, it was expected that this insurance company would post earnings of $0.46 per share when it actually produced earnings of $0.50, delivering a surprise of 8.70%.Over the last four quarters, ...

GOOSEHEAD INSURANCE, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR 2024 RESULTS – Total Revenue Increased 20% for the year to $314.5 million – – Core Revenue Grew 17% for the year to $273.7 million – – Total Written Premium in 2024 Increased 29% to $3.8 billion – – 2024 Net Income of $49.1 million versus $23.7 million in 2023 – – Adjusted EBITDA in 2024 up 43% to $99.9 million – WESTLAKE, TEXAS – February 24, 2025 - Goosehead Insurance, Inc. ("Goosehead" or the "Company") (NASDAQ: GSHD), a rapidly growing ind ...

– Total Revenue Increased 20% for the year to $314.5 million –– Core Revenue Grew 17% for the year to $273.7 million –– Total Written Premium in 2024 Increased 29% to $3.8 billion –– 2024 Net Income of $49.1 million versus $23.7 million in 2023 –– Adjusted EBITDA in 2024 up 43% to $99.9 million – WESTLAKE, Texas, Feb. 24, 2025 (GLOBE NEWSWIRE) -- Goosehead Insurance, Inc. (“Goosehead” or the “Company”) (NASDAQ: GSHD), a rapidly growing independent personal lines insurance agency, today announced results for ...

WESTLAKE, Texas, Feb. 18, 2025 (GLOBE NEWSWIRE) -- Goosehead Insurance, Inc. (“Goosehead” or the “Company”) (NASDAQ: GSHD), announced today that it will report its fourth quarter 2024 results after the market close on Monday, February 24, 2024. The company will hold a conference call to discuss results at 4:30 PM ET on February 24th. To access the call by phone, participants should go to this link (registration link), and you will be provided with the dial in details. A live webcast of the conference call w ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Goosehead Insurance (GSHD) reports results for the quarter ended December 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, ...

Core Viewpoint - Purcell & Lefkowitz LLP is investigating Goosehead Insurance, Inc. to determine if its directors breached fiduciary duties related to recent corporate actions [1]. Group 1 - The investigation is on behalf of Goosehead Insurance's shareholders [1]. - The law firm specializes in representing shareholders affected by securities fraud and breaches of fiduciary duty [3]. - Shareholders seeking more information can contact the firm directly [2].