[PART I](index=5&type=section&id=Part%20I) This section presents unaudited consolidated financial statements and management's discussion and analysis [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including statements of operations, balance sheets, stockholders' equity, and cash flows, along with detailed notes explaining the company's organization, significant accounting policies, revenue recognition, asset details, debt, income taxes, equity, noncontrolling interests, equity-based compensation, dividends, segment information, and litigation [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section provides a summary of the company's revenues, operating income, and net income for the reported periods | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Total revenues | $94,027 | $78,088 | $169,611 | $142,548 | | Income from operations | $15,660 | $15,397 | $22,274 | $16,852 | | Net income | $8,283 | $10,875 | $10,929 | $12,684 | | Net income attributable to Goosehead Insurance, Inc. | $5,150 | $6,198 | $7,492 | $8,012 | | Basic EPS | $0.20 | $0.25 | $0.30 | $0.32 | | Diluted EPS | $0.18 | $0.24 | $0.27 | $0.29 | - Total revenues increased by **20%** for the three months ended June 30, 2025, and by **19%** for the six months ended June 30, 2025, compared to the respective prior-year periods[14](index=14&type=chunk) - Net income attributable to Goosehead Insurance, Inc. decreased by **$1.048 million (16.9%)** for the three months ended June 30, 2025, and by **$0.52 million (6.5%)** for the six months ended June 30, 2025, compared to the respective prior-year periods[14](index=14&type=chunk) [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section details the company's assets, liabilities, and equity at specific points in time | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :-------------------------------- | :--------------------------------- | | Total assets | $436,587 | $397,653 | | Total liabilities | $567,181 | $358,577 | | Total stockholders' equity | $(78,589) | $43,889 | | Total equity | $(130,594) | $39,076 | - Total assets increased by **$38.934 million (9.8%)** from December 31, 2024, to June 30, 2025[15](index=15&type=chunk) - Total liabilities significantly increased by **$208.604 million (58.2%)** from December 31, 2024, to June 30, 2025, primarily due to a substantial increase in the note payable (net of current portion) and liabilities under tax receivable agreement[15](index=15&type=chunk) - Total stockholders' equity and total equity shifted from positive to negative, indicating a significant reduction in equity during the period[15](index=15&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section outlines changes in the company's equity, including accumulated deficit and noncontrolling interests - The company reported a significant accumulated deficit of **$(153.695) million** as of June 30, 2025, compared to **$(15.401) million** at January 1, 2025, largely due to dividends declared[16](index=16&type=chunk) - Total stockholders' equity decreased from **$43.889 million** at January 1, 2025, to **$(78.589) million** at June 30, 2025, primarily driven by dividends declared of **$(145.786) million**[16](index=16&type=chunk) - Noncontrolling interests also saw a significant decrease from **$(4.813) million** to **$(52.005) million**, influenced by distributions and share repurchases[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the cash inflows and outflows from operating, investing, and financing activities | Cash Flow Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net cash provided by operating activities | $44,397 | $30,942 | | Net cash used for investing activities | $(8,368) | $(5,822) | | Net cash provided by (used for) financing activities | $1,620 | $(42,882) | | Net increase (decrease) in cash and cash equivalents, and restricted cash | $37,649 | $(17,762) | | Cash and cash equivalents, and restricted cash, end of period | $95,622 | $26,285 | - Net cash provided by operating activities increased by **$13.455 million (43.5%)** for the six months ended June 30, 2025, compared to the same period in 2024[18](index=18&type=chunk) - Net cash used for investing activities increased by **$2.546 million (43.7%)** for the six months ended June 30, 2025, primarily due to increased capital expenditures[18](index=18&type=chunk) - Financing activities shifted from a net cash outflow of **$42.882 million** in 2024 to a net cash inflow of **$1.620 million** in 2025, largely due to new debt proceeds and reduced share repurchases, despite significant member distributions and dividends[18](index=18&type=chunk) [Note 1 Organization](index=12&type=section&id=Note%201%20Organization) This note describes the company's corporate structure and primary business activities in insurance brokerage services - Goosehead Insurance, Inc. (GSHD) is the sole managing member of Goosehead Financial, LLC (GF), consolidating GF's financial results and reporting noncontrolling interest[20](index=20&type=chunk) - The Company provides personal and commercial property and casualty insurance brokerage services through corporate-owned agencies and franchise units[21](index=21&type=chunk) | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | | Corporate-owned locations | 14 | 13 | | Franchise locations onboarded (3 months) | 16 | 19 | | Operating franchise locations | 1,075 | 1,122 | [Note 2 Summary of significant accounting policies](index=12&type=section&id=Note%202%20Summary%20of%20significant%20accounting%20policies) This note details the accounting principles, estimates, and policies applied in preparing the financial statements - The financial statements are prepared in accordance with GAAP, with management making estimates and assumptions that may differ from actual results[24](index=24&type=chunk)[26](index=26&type=chunk) - The Company experiences seasonal revenue fluctuations due to contingent commission recognition and housing market activity[25](index=25&type=chunk) - Intangible assets include web domain (**15-year amortization**), computer software (**3-10 years**), and purchased books of business (**8 years**)[27](index=27&type=chunk) - An impairment expense of **$1.6 million** for property and equipment and **$3.1 million** for right-of-use assets was recorded for the three months ended June 30, 2025, due to identified office leases to be exited or subleased[30](index=30&type=chunk) | Cash and Cash Equivalents | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Cash and cash equivalents | $92,388 | $23,643 | | Restricted cash | $3,234 | $2,642 | | Total | $95,622 | $26,285 | [Note 3 Revenues](index=15&type=section&id=Note%203%20Revenues) This note explains the company's revenue recognition policies across various commission and fee streams - Commissions are earned for placing initial and renewal insurance policies, with New Business Commissions recognized at policy effective date and Renewal Commissions upon renewal or replacement policy effective date[39](index=39&type=chunk)[40](index=40&type=chunk) - Contingent commission revenue is estimated and recognized over time based on growth, profitability, or other performance metrics with insurance carriers[43](index=43&type=chunk)[44](index=44&type=chunk) - Initial Franchise Fees are recognized as revenue over the **10-year** life of the franchise contract, while New and Renewal Royalty Fees are recognized over time as policies are placed or renewed[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) | Revenue Stream | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Renewal Commissions | $23,119 | $20,591 | $40,071 | $36,552 | | New Business Commissions | $7,559 | $6,682 | $13,314 | $12,363 | | Agency Fees | $2,906 | $2,137 | $5,146 | $4,048 | | Contingent Commissions | $4,492 | $2,209 | $8,968 | $4,877 | | Renewal Royalty Fees | $45,381 | $36,828 | $82,625 | $65,881 | | New Business Royalty Fees | $7,820 | $7,169 | $14,749 | $13,402 | | Initial Franchise Fees | $1,247 | $1,631 | $2,589 | $3,875 | | Other Franchise Revenues | $1,324 | $598 | $1,781 | $1,055 | | Interest Income | $179 | $244 | $368 | $494 | | **Total Revenues** | **$94,027** | **$78,088** | **$169,611** | **$142,548** | [Note 4 Franchise fees receivable](index=18&type=section&id=Note%204%20Franchise%20fees%20receivable) This note provides details on the company's franchise fees receivable, including unamortized discount and allowance for uncollectible amounts | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :--------------------------------- | | Franchise fees receivable | $5,501 | $6,263 | | Less: Unamortized discount | $(1,323) | $(1,671) | | Less: Allowance for uncollectible franchise fees | $(29) | $(35) | | **Net franchise fees receivable** | **$4,149** | **$4,557** | | Allowance for Uncollectible Franchise Fees | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Balance at December 31 | $35 (2024) | $223 (2023) | | Charges to bad debts | $123 | $379 | | Write offs | $(129) | $(570) | | Balance at June 30 | $29 | $32 | [Note 5 Allowance for uncollectible agency fees](index=18&type=section&id=Note%205%20Allowance%20for%20uncollectible%20agency%20fees) This note details the allowance for uncollectible agency fees, including changes from bad debts and write-offs | Allowance for Uncollectible Agency Fees | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Balance at December 31 | $363 (2024) | $508 (2023) | | Charges to bad debts | $597 | $816 | | Write offs | $(377) | $(925) | | Balance at June 30 | $583 | $399 | [Note 6 Property and equipment](index=19&type=section&id=Note%206%20Property%20and%20equipment) This note provides a breakdown of property and equipment, net of accumulated depreciation | Property and Equipment | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :--------------------------------- | | Furniture & fixtures | $11,056 | $10,369 | | Computer equipment | $6,014 | $5,443 | | Network equipment | $563 | $481 | | Phone system | $220 | $227 | | Leasehold improvements | $35,775 | $35,288 | | Total | $53,628 | $51,808 | | Less accumulated depreciation | $(31,661) | $(27,707) | | **Property and equipment, net** | **$21,967** | **$24,101** | - Depreciation expense was **$3.5 million** for the six months ended June 30, 2025, a decrease from **$3.7 million** for the same period in 2024[62](index=62&type=chunk) [Note 7 Intangible assets](index=19&type=section&id=Note%207%20Intangible%20assets) This note details the company's intangible assets, including computer software, web domain, and books of business | Intangible Assets | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :--------------------------------- | | Computer software & web domain | $30,698 | $24,475 | | Books of business | $7,854 | $6,895 | | Total | $38,552 | $31,369 | | Less: accumulated amortization | $(8,223) | $(6,294) | | **Intangible assets, net** | **$30,329** | **$25,075** | - Amortization expense increased to **$1.9 million** for the six months ended June 30, 2025, from **$1.5 million** for the same period in 2024[63](index=63&type=chunk) [Note 8 Debt](index=19&type=section&id=Note%208%20Debt) This note outlines the company's debt structure, including term loans and revolving credit facilities - On January 8, 2025, the Company entered into a new credit agreement for an aggregate **$300 million** term notes payable and a **$75 million** revolving credit facility, replacing the previous agreement[66](index=66&type=chunk) - The 2025 Initial Term Loan matures on January 8, 2032, with quarterly installments of **$0.8 million** and a balloon payment of **$279.8 million**[66](index=66&type=chunk) - As of June 30, 2025, the Company had no draws against the revolving credit facility, with **$75.0 million** available[68](index=68&type=chunk) - Subsequent to the quarter, on July 9, 2025, the Company refinanced the term loan, reducing the interest rate by **0.50%** to Term SOFR plus **3.00%**[75](index=75&type=chunk) [Note 9 Income taxes](index=21&type=section&id=Note%209%20Income%20taxes) This note explains the company's income tax expense, deferred tax assets, and liabilities under the Tax Receivable Agreement - Tax expense decreased to **$1.9 million** for the three months ended June 30, 2025 (effective tax rate **19%**), from **$3.0 million** in 2024 (effective tax rate **22%**), primarily due to lower pre-tax income and increased tax benefits from stock option exercises[77](index=77&type=chunk) - For the six months ended June 30, 2025, tax expense was **$0.2 million** (effective tax rate **2%**), a significant change from a tax benefit of **$5.6 million** in 2024 (effective tax rate **(79%)**), mainly due to changes in state apportionment and filing requirements in 2024[77](index=77&type=chunk) - Deferred tax assets increased to **$207.5 million** at June 30, 2025, from **$193.5 million** at December 31, 2024, driven by additional redemptions of LLC Units[78](index=78&type=chunk) - The total liability under the Tax Receivable Agreement (TRA) was **$171.8 million** as of June 30, 2025, with **$7.0 million** classified as current[81](index=81&type=chunk)[82](index=82&type=chunk) [Note 10 Stockholders' equity](index=22&type=section&id=Note%2010%20Stockholders'%20equity) This note details the company's capital structure, including common stock, share repurchases, and restatement information - As of June 30, 2025, there were **25,351 thousand** shares of Class A common stock outstanding (with economic and voting rights) and **12,207 thousand** shares of Class B common stock outstanding (with voting rights only)[85](index=85&type=chunk)[86](index=86&type=chunk) - The Company restated prior period financial statements to correct errors in the allocation of stock option exercises, equity-based compensation, employee stock purchase plan activity, and LLC Unit redemptions, as well as deferred tax adjustments related to the TRA[88](index=88&type=chunk)[89](index=89&type=chunk) | EPS Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic EPS | $0.20 | $0.25 | $0.30 | $0.32 | | Diluted EPS | $0.18 | $0.24 | $0.27 | $0.29 | | Weighted average outstanding Class A common shares - Basic | 25,216 | 24,693 | 25,005 | 24,890 | | Weighted average outstanding Class A common shares - Diluted | 38,553 | 38,031 | 38,542 | 38,435 | - The board approved a new share repurchase program on April 23, 2025, authorizing up to **$100 million** of Class A common stock repurchases through May 1, 2026[100](index=100&type=chunk) - During the three and six months ended June 30, 2025, the Company repurchased **6 thousand** shares for **$0.5 million**, significantly less than the **1,045 thousand** shares for **$63.6 million** repurchased in the same periods of 2024[101](index=101&type=chunk) [Note 11 Noncontrolling interest](index=28&type=section&id=Note%2011%20Noncontrolling%20interest) This note describes the noncontrolling interest in Goosehead Financial, LLC and related transactions - GSHD consolidates GF's financial results and reports a noncontrolling interest representing other GF members' economic interest[102](index=102&type=chunk) - For the three and six months ended June 30, 2025, GF made distributions of **$5.2 million** and **$5.3 million**, with **$1.9 million** and **$1.9 million** going to Pre-IPO LLC Members, respectively[103](index=103&type=chunk) - During the three and six months ended June 30, 2025, **268 thousand** and **413 thousand** LLC Units were redeemed by noncontrolling interest holders for Class A common stock, increasing GSHD's ownership in GF[105](index=105&type=chunk) | Ownership Interest in GF | June 30, 2025 (in thousands) | | :-------------------------------- | :----------------------------- | | LLC Units held by GSHD | 25,351 (67.5%) | | LLC Units held by noncontrolling interest holders | 12,207 (32.5%) | | Total LLC Units outstanding | 37,558 (100.0%) | [Note 12 Equity-based compensation](index=29&type=section&id=Note%2012%20Equity-based%20compensation) This note provides information on the company's equity-based compensation expenses | Metric | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2024 (in millions) | | :-------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Stock option expense | $6.0 | $6.6 | $12.3 | $14.0 | [Note 13 Dividends](index=29&type=section&id=Note%2013%20Dividends) This note details the special distribution and cash dividend declared by the company - On January 9, 2025, GF declared a special distribution of **$175 million**, with **$59 million** paid to noncontrolling interest holders[108](index=108&type=chunk) - Concurrently, the Company declared a one-time special cash dividend of **$5.91** per Class A common stock, totaling **$146 million**, funded by prior tax distributions and the special distribution from GF[108](index=108&type=chunk) [Note 14 Segment information](index=29&type=section&id=Note%2014%20Segment%20information) This note clarifies that the company operates as a single reportable segment: insurance distribution - The Company operates as a single reportable segment: insurance distribution, providing various property and casualty insurance products[110](index=110&type=chunk) - All revenue is derived from within the United States, and business activities are managed on a consolidated basis[110](index=110&type=chunk) - The CEO, as the chief operating decision maker, uses net income to assess performance, allocate resources, and evaluate income generated from segment assets[111](index=111&type=chunk)[113](index=113&type=chunk) [Note 15 Litigation](index=30&type=section&id=Note%2015%20Litigation) This note discusses the company's legal contingencies and ongoing litigation matters - The Company accrues for legal contingencies when a liability is probable and estimable, otherwise discloses reasonably possible material losses[114](index=114&type=chunk) - Management believes the likely results of ongoing legal matters will not materially adversely affect the Company's financial position, results of operations, or cash flows[114](index=114&type=chunk) - The 'Dollens Action' class action lawsuit, alleging invalid corporate governance documents, is currently stayed with a proposed non-monetary settlement involving revisions to the Stockholder Agreement[115](index=115&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides an overview of the company's financial performance, including key highlights for Q2 2025, a detailed analysis of revenue streams and operating expenses, and a discussion of key performance indicators. It also reconciles non-GAAP financial measures and outlines the company's liquidity, capital resources, and contractual obligations [Overview](index=31&type=section&id=OVERVIEW) This section provides a high-level description of Goosehead Insurance, Inc.'s business model and strategic focus - Goosehead Insurance, Inc. is a rapidly growing personal lines independent insurance agency focused on providing superior coverage and pricing through a differentiated business model and innovative technology[118](index=118&type=chunk) [Financial Highlights for the Second Quarter of 2025](index=31&type=section&id=Financial%20Highlights%20for%20the%20Second%20Quarter%20of%202025) This section summarizes the key financial and operational achievements for the second quarter of 2025 - Total revenue increased **20%** to **$94.0 million** - Core Revenue increased **18%** to **$86.8 million** - Total Written Premiums placed increased **18%** to **$1.2 billion** - Net income decreased by **$2.6 million** to **$8.3 million (9% of total revenues)** - Adjusted EBITDA increased **18%** to **$29.2 million (31% of total revenues)** - Basic EPS was **$0.20**, Diluted EPS was **$0.18**, and Adjusted EPS was **$0.49** - Policies in Force increased **13%** to **1,793,000** - Corporate sales headcount increased **53%** to **479** - Total operating franchises decreased **4%** to **1,075** [Certain Income Statement Line Items - Revenues](index=32&type=section&id=Certain%20income%20statement%20line%20items%20-%20Revenues) This section analyzes the company's revenue streams, categorizing them by predictability and quality - Total revenue increased **20%** to **$94.0 million** for Q2 2025 and **19%** to **$169.6 million** for the six months ended June 30, 2025[122](index=122&type=chunk) - Total Written Premium, a key indicator of future revenue, increased **18%** to **$1.18 billion** for Q2 2025 and **20%** to **$2.2 billion** for the six months ended June 30, 2025[122](index=122&type=chunk) - Core Revenue (Renewal Commissions, Renewal Royalty Fees, New Business Commissions, New Business Royalty Fees, Agency Fees) is the most predictable and higher-quality revenue stream[126](index=126&type=chunk) - Cost Recovery Revenue (Initial Franchise Fees, Interest Income) reimburses the Company for recruitment, training, and support costs[126](index=126&type=chunk) - Ancillary Revenue (Contingent Commissions, Other Franchise Revenues) is unpredictable and susceptible to external factors like weather events[126](index=126&type=chunk) | Revenue Category | Q2 2025 (in thousands) | Q2 2024 (in thousands) | 6M 2025 (in thousands) | 6M 2024 (in thousands) | | :----------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Total Core Revenue | $86,785 (92%) | $73,407 (94%) | $155,905 (92%) | $132,246 (93%) | | Total Cost Recovery Revenue | $1,426 (2%) | $1,875 (2%) | $2,957 (2%) | $4,369 (3%) | | Total Ancillary Revenue | $5,816 (6%) | $2,807 (4%) | $10,749 (6%) | $5,933 (4%) | | **Total Revenues** | **$94,027 (100%)** | **$78,088 (100%)** | **$169,611 (100%)** | **$142,548 (100%)** | [Consolidated Results of Operations](index=34&type=section&id=Consolidated%20results%20of%20operations) This section provides a detailed analysis of the company's revenues and operating expenses for the reported periods | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Total revenues | $94,027 | $78,088 | $169,611 | $142,548 | | Employee compensation and benefits | $50,388 | $42,551 | $98,722 | $84,681 | | General and administrative expenses | $24,647 | $16,855 | $42,206 | $34,035 | | Bad debts | $550 | $653 | $957 | $1,780 | | Depreciation and amortization | $2,782 | $2,632 | $5,452 | $5,200 | | Total operating expenses | $78,367 | $62,691 | $147,337 | $125,696 | | Income from operations | $15,660 | $15,397 | $22,274 | $16,852 | | Interest expense | $(6,303) | $(1,982) | $(12,126) | $(3,469) | | Other income (expense) | $815 | $441 | $983 | $(6,286) | | Income before taxes | $10,172 | $13,856 | $11,131 | $7,097 | | Tax expense (benefit) | $1,889 | $2,981 | $202 | $(5,587) | | Net income | $8,283 | $10,875 | $10,929 | $12,684 | | Net income attributable to Goosehead Insurance, Inc. | $5,150 | $6,198 | $7,492 | $8,012 | - Renewal Commissions increased **12%** to **$23.1 million** (QoQ) and **10%** to **$40.1 million** (YoY), driven by a **$3.0 million** release of variable consideration constraint and **84%** client retention[132](index=132&type=chunk) - New Business Commissions increased **13%** to **$7.6 million** (QoQ) and **8%** to **$13.3 million** (YoY), due to more Corporate sales agents, offset by product challenges in Texas[133](index=133&type=chunk) - Agency Fees increased **36%** to **$2.9 million** (QoQ) and **27%** to **$5.1 million** (YoY), attributed to higher average fees and more policies written with fees[134](index=134&type=chunk) - Contingent Commissions increased significantly by **$2.3 million** to **$4.5 million** (QoQ) and **$4.1 million** to **$9.0 million** (YoY), due to increased Total Written Premium and qualifying for additional commissions[135](index=135&type=chunk) - Renewal Royalty Fees increased **23%** to **$45.4 million** (QoQ) and **25%** to **$82.6 million** (YoY), driven by more renewal policies, **84%** client retention, rising premium rates, and a **$1.0 million** release of variable consideration constraint[137](index=137&type=chunk) - New Business Royalty Fees increased **9%** to **$7.8 million** (QoQ) and **10%** to **$14.7 million** (YoY), due to increased franchise productivity and rising premium rates[138](index=138&type=chunk) - Initial Franchise Fees decreased **24%** to **$1.2 million** (QoQ) and **33%** to **$2.6 million** (YoY), primarily due to lower franchise turnover[139](index=139&type=chunk) - Interest income decreased **27%** to **$0.2 million** (QoQ) and **26%** to **$0.4 million** (YoY), due to fewer franchises on payment plans[140](index=140&type=chunk) - Employee compensation and benefits increased **18%** to **$50.4 million** (QoQ) and **17%** to **$98.7 million** (YoY), mainly due to investments in corporate producers and service/technology functions[141](index=141&type=chunk) - General and administrative expenses increased **46%** to **$24.6 million** (QoQ) and **24%** to **$42.2 million** (YoY), primarily due to **$4.7 million** in asset impairment charges and increased spending on technology and professional services[142](index=142&type=chunk) - Bad debts decreased **16%** to **$0.6 million** (QoQ) and **46%** to **$1.0 million** (YoY), attributed to lower franchise turnover[143](index=143&type=chunk) - Depreciation and amortization increased **6%** to **$2.8 million** (QoQ) and **5%** to **$5.5 million** (YoY), due to increased software development spending[144](index=144&type=chunk) - Interest expense increased significantly by **$4.3 million** to **$6.3 million** (QoQ) and **$8.7 million** to **$12.1 million** (YoY), driven by higher outstanding borrowings[145](index=145&type=chunk) - Other income (expense) increased by **$0.4 million** (QoQ) and **$7.3 million** (YoY), due to interest income on cash balances and remeasurements of TRA liability in the prior year[146](index=146&type=chunk) - Tax expense (benefit) decreased by **$1.1 million** (QoQ) due to lower pre-tax income and higher stock option tax benefits, but increased by **$5.8 million** (YoY) due to prior year deferred tax asset remeasurements[147](index=147&type=chunk) [Key Performance Indicators](index=38&type=section&id=Key%20performance%20indicators) This section presents crucial metrics used to evaluate the company's operational performance and growth | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | % Change | | :-------------------------------- | :--------------------- | :--------------------- | :------- | | Corporate sales Total Written Premium | $217,147 | $205,788 | 6% | | Franchise sales Total Written Premium | $958,762 | $793,087 | 21% | | **Total Written Premium** | **$1,175,909** | **$998,875** | **18%** | | Metric | 6M 2025 (in thousands) | 6M 2024 (in thousands) | % Change | | :-------------------------------- | :--------------------- | :--------------------- | :------- | | Corporate sales Total Written Premium | $393,753 | $374,288 | 5% | | Franchise sales Total Written Premium | $1,782,388 | $1,443,372 | 23% | | **Total Written Premium** | **$2,176,141** | **$1,817,660** | **20%** | - Policies in Force increased **13%** to **1.8 million** at June 30, 2025, from **1.6 million** at June 30, 2024[152](index=152&type=chunk) - Net Promoter Score (NPS) decreased to **84** at June 30, 2025, from **91** at June 30, 2024[154](index=154&type=chunk) - Client Retention remained steady at **84%** at June 30, 2025, compared to June 30, 2024, despite rising premium rates[156](index=156&type=chunk) - Premium retention for the trailing twelve months ended June 30, 2025, was **95%**, a decrease from **98%** at December 31, 2024, due to moderating premium rate increases and stable client retention[156](index=156&type=chunk) - New Business Revenue grew **14%** to **$18.3 million** (QoQ) and **11%** to **$33.2 million** (YoY), driven by increased corporate sales agents, franchise productivity, and rising premium rates[158](index=158&type=chunk) - Renewal Revenue grew **19%** to **$68.5 million** (QoQ) and **20%** to **$122.7 million** (YoY), driven by the release of variable consideration constraint, increased renewal policies, **84%** client retention, and rising premium rates[161](index=161&type=chunk) [Non-GAAP Measures](index=39&type=section&id=Non-GAAP%20Measures) This section reconciles non-GAAP financial measures to their most directly comparable GAAP counterparts - Non-GAAP measures (Core Revenue, Cost Recovery Revenue, Ancillary Revenue, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS) are used to facilitate operating performance comparisons by excluding non-representative items[163](index=163&type=chunk) - Core Revenue increased **18%** to **$86.8 million** (QoQ) and **18%** to **$155.9 million** (YoY), driven by increased renewal policies, new policies, rising premium rates, and release of variable consideration constraint[165](index=165&type=chunk) - Cost Recovery Revenue decreased **24%** to **$1.4 million** (QoQ) and **32%** to **$3.0 million** (YoY), primarily due to fewer franchises and less acceleration of initial franchise fee revenue from terminations[167](index=167&type=chunk) - Ancillary Revenue increased by **$3.0 million** to **$5.8 million** (QoQ) and **$4.8 million** to **$10.7 million** (YoY), mainly due to increased Total Written Premium and additional Contingent Commissions[169](index=169&type=chunk) | Non-GAAP Revenue | Q2 2025 (in thousands) | Q2 2024 (in thousands) | 6M 2025 (in thousands) | 6M 2024 (in thousands) | | :----------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Total Core Revenue | $86,785 | $73,407 | $155,905 | $132,246 | | Total Cost Recovery Revenue | $1,426 | $1,875 | $2,957 | $4,369 | | Total Ancillary Revenue | $5,816 | $2,807 | $10,749 | $5,933 | | **Total Revenues (GAAP)** | **$94,027** | **$78,088** | **$169,611** | **$142,548** | - Adjusted EBITDA increased **18%** to **$29.2 million** (QoQ) and **23%** to **$44.7 million** (YoY), driven by total revenue growth, including **$4 million** from the release of variable consideration constraint, partially offset by increased employee compensation[172](index=172&type=chunk) - Adjusted EBITDA Margin was **31%** (QoQ) compared to **32%** in 2024, and remained unchanged at **26%** (YoY)[174](index=174&type=chunk) - Adjusted EPS was **$0.49** (QoQ) compared to **$0.43** in 2024, and **$0.76** (YoY) compared to **$0.70** in 2024[175](index=175&type=chunk) | Adjusted EBITDA Reconciliation | Q2 2025 (in thousands) | Q2 2024 (in thousands) | 6M 2025 (in thousands) | 6M 2024 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Net income | $8,283 | $10,875 | $10,929 | $12,684 | | Interest expense | $6,303 | $1,982 | $12,126 | $3,469 | | Depreciation and amortization | $2,782 | $2,632 | $5,452 | $5,200 | | Tax benefit | $1,889 | $2,981 | $202 | $(5,587) | | Equity-based compensation | $6,016 | $6,632 | $12,253 | $13,989 | | Impairment expense | $4,694 | $0 | $4,694 | $347 | | Other (income) expense | $(815) | $(441) | $(983) | $6,286 | | **Adjusted EBITDA** | **$29,152** | **$24,661** | **$44,672** | **$36,388** | | Adjusted EBITDA Margin | 31% | 32% | 26% | 26% | | Adjusted EPS Reconciliation | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Earnings per share - basic (GAAP) | $0.20 | $0.25 | $0.30 | $0.32 | | Add: equity-based compensation | $0.16 | $0.18 | $0.33 | $0.37 | | Add: impairment expense | $0.13 | $0.00 | $0.13 | $0.01 | | **Adjusted EPS (non-GAAP)** | **$0.49** | **$0.43** | **$0.76** | **$0.70** | [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20capital%20resources) This section discusses the company's ability to meet its short-term and long-term financial obligations and funding sources - The Company's liquidity is primarily managed through revenues, cash on hand (**$92.4 million** as of June 30, 2025), net working capital, and its revolving credit facility[181](index=181&type=chunk)[189](index=189&type=chunk) - On January 8, 2025, a new credit agreement was established, providing a **$300 million** term loan and a **$75 million** revolving credit facility, replacing the prior agreement[182](index=182&type=chunk) - Subsequent to the period, on July 9, 2025, the term loan interest rate was reduced by **0.50%** to Term SOFR plus **3.00%**[183](index=183&type=chunk) | Cash Flow Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | Change (in thousands) | | :-------------------------------- | :-------------------------------------------- | :-------------------------------------------- | :-------------------- | | Net cash provided by operating activities | $44,397 | $30,942 | $13,455 | | Net cash used for investing activities | $(8,368) | $(5,822) | $(2,546) | | Net cash provided by (used for) financing activities | $1,620 | $(42,882) | $44,502 | | Net increase (decrease) in cash and cash equivalents | $37,649 | $(17,762) | $55,411 | | Cash and cash equivalents, and restricted cash, end of period | $95,622 | $26,285 | $69,337 | - Operating cash flow increased by **$13.5 million**, driven by higher commissions and agency fees and changes in contract liabilities, partially offset by prepaid expenses[186](index=186&type=chunk) - Investing cash flow used increased by **$2.5 million**, primarily due to higher purchases of property and equipment[187](index=187&type=chunk) - Financing activities shifted to a net cash inflow of **$1.6 million** from a **$42.9 million** outflow, due to new term loan proceeds, repayment of previous debt, special distributions/dividends, and reduced share repurchases[188](index=188&type=chunk) - Primary liquidity needs include funding organic growth, operating expenses, tax receivable agreement payments, debt service, income taxes, share repurchases, and potential dividends[190](index=190&type=chunk)[192](index=192&type=chunk) - The Tax Receivable Agreement (TRA) obligates the Company to pay Pre-IPO LLC Members **85%** of cash tax savings from tax basis adjustments resulting from LLC Unit redemptions/exchanges[193](index=193&type=chunk) | Contractual Obligations (in thousands) | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | | :-------------------------------- | :---- | :--------------- | :-------- | :-------- | :---------------- | | Operating leases | $72,350 | $11,512 | $23,662 | $19,754 | $17,422 | | Debt obligations payable | $299,250 | $3,000 | $6,000 | $6,000 | $284,250 | | Interest expense | $152,703 | $23,297 | $45,890 | $44,952 | $38,564 | | Liabilities under the tax receivable agreement | $171,802 | $6,993 | $45,512 | $22,002 | $97,295 | | **Total** | **$696,105** | **$44,802** | **$121,064** | **$92,708** | **$437,531** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes to the Company's exposure to market risks since the Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - No material changes to market risk exposure since the December 31, 2024, Annual Report on Form 10-K[203](index=203&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025. No material changes to internal control over financial reporting occurred during the quarter - Disclosure controls and procedures were effective as of June 30, 2025[204](index=204&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended June 30, 2025[205](index=205&type=chunk) [PART II](index=47&type=section&id=Part%20II) This section details legal proceedings, risk factors, equity sales, defaults, and other required disclosures [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 15 to the condensed consolidated financial statements - Legal proceedings information is referenced from Note 15 of the condensed consolidated financial statements[206](index=206&type=chunk) [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, other than those described in the Q1 2025 Form 10-Q - No material changes to risk factors since the December 31, 2024, Annual Report on Form 10-K, except as noted in the Q1 2025 Form 10-Q[207](index=207&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Each LLC Unit is redeemable for one share of Class A common stock. The Company repurchased 6 thousand shares of Class A common stock for $0.5 million during the three months ended June 30, 2025, under a new $100 million share repurchase program approved in April 2025 - Each LLC Unit is redeemable for one share of Class A common stock, with corresponding Class B common stock cancellation[208](index=208&type=chunk) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :-------------------------------- | :------------------------------- | :--------------------------- | | April 1, 2024 - April 30, 2024 | 6 | $94.51 | | May 1, 2024 - May 31, 2024 | — | $— | | June 1, 2024 - June 30, 2024 | — | $— | | **Total** | **6** | | - A new **$100 million** share repurchase program was approved on April 23, 2025, valid through May 1, 2026[209](index=209&type=chunk) [Item 3. Defaults Upon Senior Securities](index=47&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the period - No defaults upon senior securities[210](index=210&type=chunk) [Item 4. Mine Safety Disclosures](index=47&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company - Not applicable[211](index=211&type=chunk) [Item 5. Other Information](index=47&type=section&id=Item%205.%20Other%20Information) The Company's CEO and director, Mark K. Miller, adopted a Rule 10b5-1 trading arrangement on April 29, 2025, for the potential sale of up to 60,000 shares - CEO Mark K. Miller adopted a Rule 10b5-1 trading arrangement on April 29, 2025, for the potential sale of up to **60,000** shares, terminating by May 1, 2026[212](index=212&type=chunk) [Item 6. Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications, XBRL documents, and the cover page interactive data file - Exhibit 31.1: Certifications of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 - Exhibit 31.2: Certifications of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 - Exhibit 32: Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - XBRL Instance, Schema, Calculation, Definition, Label, and Presentation Linkbase Documents (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE) - Exhibit 104: Cover Page Interactive Data File

Company Performance - Goosehead Insurance (GSHD) reported quarterly earnings of $0.49 per share, missing the Zacks Consensus Estimate of $0.53 per share, but showing an increase from $0.42 per share a year ago, resulting in an earnings surprise of -7.55% [1] - The company posted revenues of $94.03 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.13%, and up from $78.09 million year-over-year [2] - Over the last four quarters, Goosehead has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Market Outlook - Goosehead shares have underperformed the market, losing about 6% since the beginning of the year, while the S&P 500 gained 7.3% [3] - The current consensus EPS estimate for the coming quarter is $0.56 on revenues of $96.11 million, and for the current fiscal year, it is $1.87 on revenues of $362.11 million [7] - The Zacks Industry Rank for Insurance - Multi line is currently in the bottom 35% of over 250 Zacks industries, indicating potential challenges for stock performance [8] Earnings Estimate Revisions - Ahead of the earnings release, the estimate revisions trend for Goosehead was unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, suggesting expected underperformance in the near future [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Total revenue grew 20% year-over-year to $94 million, with core revenue increasing 18% to $86.8 million and adjusted EBITDA rising 18% to $29.2 million, resulting in an adjusted EBITDA margin of 31% for the quarter [33][34][37] - Total written premiums reached $1.2 billion for the quarter, up 18% from the previous year, including franchise premiums of $959 million (up 21%) and corporate premiums of $217 million (up 6%) [35] - Contingent commissions for the quarter were $4.5 million, a 103% increase from $2.2 million in the previous year [36] Business Line Data and Key Metrics Changes - Franchise producers at quarter end were 2,085, up 5% from a year ago, with producers per franchise growing 14% to 1.9 [28] - The corporate sales team ended the quarter with 479 total agents, a 53% increase over the previous year, with corporate new business commissions growing at 13% compared to the prior year [27] - Agencies in the top 200 grew their new business by over 30% in the second quarter, with gross earnings also up 30% [29] Market Data and Key Metrics Changes - The company has expanded into Arizona with the launch of a new office in Tempe, which has been the most successful new office launch in years [14] - The enterprise sales and partnerships team produced 88% more new business in the second quarter compared to the previous year and grew 41% sequentially over the first quarter of 2025 [26] - Policies in force at quarter end were 1.8 million, a 13% increase over the previous year [36] Company Strategy and Development Direction - The company aims to become the largest distributor of personal lines insurance in the U.S. and is focusing on expanding its distribution network, which has grown to over 2,500 licensed agents and 200 carriers [6][7] - Strategic initiatives include optimizing agency staffing programs, expanding corporate teams, and developing new technologies to enhance market leadership [7][20] - The company is also pursuing partnerships with established firms to enhance its market presence and streamline the home buying process [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improving product environment and the potential for rapid and profitable growth, particularly as the underwriting demand and capacity landscape becomes clearer [24][22] - The company anticipates that client retention will improve, which is expected to positively impact revenue growth in the second half of the year [34][76] - Management highlighted the importance of leveraging AI to optimize client experience and reduce service costs, with expectations for a decrease in service delivery costs in the second half of the year [30][31] Other Important Information - The company has successfully repriced its existing term loan, reducing its interest burden by approximately $1.5 million annually [37] - The company generated $28.9 million of cash flow from operations, representing a 53% increase over the prior year period [38] - The company is reiterating its 2025 revenue guidance, expecting total revenues to be between $350 million and $385 million, reflecting organic growth of 11% to 22% [39] Q&A Session Summary Question: Can you quantify the upside to commissions as a percentage of written premiums? - Management indicated that there has been a gradual decline in average commission rates due to a shift towards excess and surplus lines, but they expect this trend to reverse as more national products become available [42][43][45] Question: Is the cost of servicing down in the second half of the year? - Management confirmed that the total cost of the service department is expected to decrease, driven by AI improvements that enhance efficiency and client experience [47][48] Question: What dynamics are affecting premiums per policy in force? - Management noted that the intentional shift towards lower premium states and the leveling off of premium growth rates are influencing the dynamics [54][55] Question: Are new initiatives baked into your guidance? - Management clarified that new initiatives are not included in the current guidance as they are relatively new and will take time to materialize [57] Question: What is the outlook for commission rates? - Management expressed optimism about the product environment improving, with more business flowing away from state-run plans, which should positively impact commission rates [61][62] Question: What is the reason for the slight decrease in total franchise producers since year-end? - Management explained that seasonal factors and consolidation of smaller franchises into larger ones are contributing to the slight decrease [68][70] Question: What is the outlook for premium retention? - Management indicated that while client retention is currently at 84%, they expect it to improve, aligning more closely with premium retention in the near future [76]

Financial Data and Key Metrics Changes - Total revenue grew 20% year-over-year to $94 million, with core revenue increasing 18% to $86.8 million and adjusted EBITDA rising 18% to $29.2 million, resulting in an adjusted EBITDA margin of 31% for the quarter [31][32][35] - Total written premiums reached $1.2 billion for the quarter, up 18% from a year ago, including franchise premiums of $959 million (up 21%) and corporate premiums of $217 million (up 6%) [33] - Adjusted EBITDA margin excluding contingent commissions was 28% [35] Business Line Data and Key Metrics Changes - Franchise producers at quarter end were 2,085, up 5% from a year ago, with producers per franchise growing 14% to 1.9 [27] - The top 200 franchises grew their new business by over 30% in the second quarter, with gross earnings also up 30% [28] - Corporate sales agents ended the quarter with 479 total agents, up 53% year-over-year, with corporate new business commissions growing at 13% compared to the prior year [26] Market Data and Key Metrics Changes - The corporate sales team is expanding into attractive markets, launching new offices in Arizona and Nashville, with a focus on high-potential geographies [13][14] - The enterprise sales and partnerships team produced 88% more new business in the second quarter compared to the previous year, growing 41% sequentially over the first quarter [25] Company Strategy and Development Direction - The company aims to become the largest distributor of personal lines insurance in the U.S., focusing on expanding its distribution network and enhancing technology to maintain industry leadership [6][7] - Strategic initiatives include the agency staffing program to recruit top talent, partnerships with established firms, and leveraging AI to optimize client experience and operational efficiency [8][15][18] - The company is transitioning from an insurance distribution organization aided by technology to a technology organization supported by insurance professionals [38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improving product environment, with more business flowing away from state-run plans and a clearer underwriting demand landscape [22][60] - Client retention is expected to improve, with a goal to reach a more normalized product environment that will enhance revenue generation [32][37] - The company anticipates continued growth in the second half of 2025, driven by new business commissions and improved client retention [97] Other Important Information - The company recovered $4 million of past due renewal commissions and royalty fees from a large carrier partner, with an expected benefit of approximately $1.5 million for the second half of the year [33][100] - A one-time non-cash impairment charge of $4.7 million was recorded related to changes in the real estate footprint [35] Q&A Session Summary Question: Can you quantify the upside to commissions as a percentage of written premiums? - Management noted a gradual decline in average commission rates due to a shift towards excess and surplus lines, but expects this trend to reverse as more national products become available [40][41] Question: Is the cost of servicing expected to decrease in the second half of the year? - Management confirmed that the total cost of the service department is expected to decrease, driven by AI improvements that enhance efficiency and client experience [44][45] Question: What is the outlook for premium retention and client retention? - Management indicated that while client retention is currently at 84%, it is improving, and they expect premium retention to align with client retention in the near future [75] Question: How does the direct channel relate to previous investments? - Management stated that previous investments have enabled the development of a direct-to-consumer interface, which will facilitate targeted client engagement with carriers [80][82] Question: Will the increased proportion of business from state funds impact contingent commissions? - Management clarified that state-run plans do not incentivize agents for contingent commissions, and a higher proportion of non-residual policies should lead to more opportunities for contingent commissions [83][87]

GOOSEHEAD INSURANCE, INC. ANNOUNCES SECOND QUARTER 2025 RESULTS – Total Revenue Increased 20% and Core Revenue* Grew 18% over the Prior-Year Period – WESTLAKE, TEXAS – July 23, 2025 - Goosehead Insurance, Inc. ("Goosehead" or the "Company") (NASDAQ: GSHD), a rapidly growing independent personal lines insurance agency, today announced results for the second quarter ended June 30, 2025. Second Quarter 2025 Highlights "We delivered another strong quarter result while making substantial investments in people an ...

Core Insights - Goosehead Insurance reported strong financial results for Q2 2025, with total revenue growth of 20% and core revenue growth of 18% compared to the same period in 2024 [4][5][6] - The company achieved a net income of $8.3 million, a decrease of 24% from $10.9 million in the prior year, while adjusted EBITDA grew by 18% to $29.2 million [5][7][9] - Goosehead continues to invest in technology and personnel to enhance operational efficiency and drive future growth, aiming to become the largest distributor of personal lines insurance [3][4] Financial Performance - Total revenues for Q2 2025 were $94.0 million, up from $78.1 million in Q2 2024, while core revenues reached $86.8 million, an increase from $73.4 million [4][5] - Total written premiums increased by 18% to $1.2 billion, indicating strong future revenue potential [5][6] - The company reported an adjusted EPS of $0.49, a 14% increase from the previous year, while basic EPS decreased to $0.20 from $0.25 [5][7] Operating Expenses - Total operating expenses rose to $78.4 million from $62.7 million in the prior-year period, with employee compensation and benefits increasing to $50.4 million [6][9] - General and administrative expenses also increased to $24.6 million, primarily due to investments in technology and systems [6][9] - The company recorded an impairment expense of $4.7 million related to office leases during the quarter [6][9] Key Performance Indicators - Policies in force increased by 13% to approximately 1,793,000, with a client retention rate of 84% [5][35] - The corporate agent headcount grew by 53% to 479, while total franchise producers increased by 5% to 2,085 [5][35] - The company achieved a net promoter score (NPS) of 84, reflecting strong customer satisfaction [35] Liquidity and Capital Resources - As of June 30, 2025, Goosehead had cash and cash equivalents of $92.4 million and an unused line of credit of $75.0 million [9][10] - The company successfully repriced its existing $299.3 million term loan, reducing the interest rate by 50 basis points [10][9] - Goosehead repurchased 6,000 shares at an average price of $94.51 during the quarter, with $99.5 million remaining under the share repurchase authorization [9][10] 2025 Outlook - Goosehead expects total written premiums for 2025 to be between $4.38 billion and $4.65 billion, representing growth of 15% to 22% [12] - Total revenues for 2025 are projected to be between $350 million and $385 million, indicating growth of 11% to 22% [12]

The market expects Goosehead Insurance (GSHD) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence 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 ...

Core Viewpoint - Goosehead Insurance, Inc. will report its second quarter 2025 results on July 23, 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 July 23, 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 operating through corporate and franchise locations across the United States [3] - The company focuses on providing extraordinary value by offering a broad product choice and a world-class service experience [3] - Goosehead represents over 150 insurance companies that underwrite personal and commercial lines [3]

Core Insights - Goosehead Insurance has appointed Angie Kervin as Chief Human Resources Officer (CHRO) to enhance HR capabilities and solidify its industry leadership [1][2] - Kervin brings over two decades of experience in human capital strategies, having held significant roles in various organizations [2][4] - The appointment aligns with Goosehead's commitment to its people strategy and ambitious business goals [3] Company Overview - Goosehead Insurance (NASDAQ: GSHD) is a rapidly growing independent personal lines insurance agency operating through corporate and franchise locations across the United States [5] - The company focuses on providing extraordinary value by centering consumer needs and offering a broad product choice along with a world-class service experience [5] Strategic Focus Areas - Developing innovative HR programs to attract, develop, and retain top talent [7] - Strengthening a high-performance culture emphasizing meritocracy and servant leadership [7] - Leveraging advanced technologies and data-driven decision-making to enhance workforce productivity [7] - Enhancing Goosehead's HR infrastructure to support aggressive, long-term growth in personal lines insurance [7]

Core Insights - Goosehead Insurance has launched the Veteran Initiative Program (VIP) to support military veterans in becoming franchise owners, leveraging their unique skills from military service [1][2] - The program aims to provide veterans with professional development, mentorship, and real-world learning opportunities to succeed in the insurance industry [1][3] Company Overview - Goosehead Insurance, Inc. (NASDAQ: GSHD) is a rapidly growing independent personal lines insurance agency that operates through corporate and franchise locations across the United States [5] - The company represents over 200 insurance companies, offering a wide range of personal and commercial insurance products [5] Veteran Initiative Program Details - The VIP is designed to empower veterans, regardless of their prior insurance experience, with comprehensive support and training to operate successful franchises [2][3] - The program includes structured coaching, access to industry-leading technology, a dedicated veteran development team, and geographic flexibility for franchise locations [6] - Goosehead Insurance offers a 20% discount on the initial franchise fee for veterans, demonstrating its commitment to making franchise ownership more accessible [6] Success Stories - The program was inspired by successful veteran franchisees like Tim McMullin, who achieved a $10 million book of business, showcasing the potential for veterans in the franchise model [4]