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Goosehead Insurance(GSHD) - 2025 Q1 - Quarterly Results
GSHDGoosehead Insurance(GSHD)2025-04-23 20:05

Financial Performance - Total revenue for Q1 2025 was 75.6million,a1775.6 million, a 17% increase compared to Q1 2024[4] - Core revenue for Q1 2025 was 69.1 million, also up 17% from 58.8millionintheprior−yearperiod[6]−NetincomeforQ12025was58.8 million in the prior-year period[6] - Net income for Q1 2025 was 2.6 million, compared to 1.8millionintheprior−yearperiod,representinga461.8 million in the prior-year period, representing a 46% increase[4] - Adjusted EBITDA for Q1 2025 was 15.5 million, up from 11.7millionintheprior−yearperiod,markinga3211.7 million in the prior-year period, marking a 32% increase[4] - Adjusted EBITDA margin expanded by 300 basis points to 21% in Q1 2025[3] - Total revenues for 2025 are projected to be between 350 million and 385million,indicatinggrowthof11385 million, indicating growth of 11% to 22%[12] - Total revenues for the three months ended March 31, 2025, were 75,583,000, an increase of 17.3% compared to 64,460,000forthesameperiodin2024[28]−Corerevenuereached64,460,000 for the same period in 2024[28] - Core revenue reached 69,120,000, up 17.4% from 58,839,000year−over−year,drivenbyincreasesinrenewalcommissionsandroyaltyfees[28]−AdjustedEBITDAforQ12025was58,839,000 year-over-year, driven by increases in renewal commissions and royalty fees[28] - Adjusted EBITDA for Q1 2025 was 15,520,000, representing a 32.5% increase from 11,727,000inQ12024,withanadjustedEBITDAmarginof2111,727,000 in Q1 2024, with an adjusted EBITDA margin of 21% compared to 18%[30][31] - Net income for the first quarter of 2025 was 2,646,000, a 46.2% increase from 1,809,000inQ12024,resultinginanetincomemarginof41,809,000 in Q1 2024, resulting in a net income margin of 4%[30][31] Premiums and Policies - Total written premiums increased by 22% to 1.0 billion in Q1 2025[4] - For full year 2025, total written premiums are expected to be between 4.65billionand4.65 billion and 4.88 billion, representing growth of 22% to 28%[12] - Policies in force increased by 13% to approximately 1,729,000 compared to the prior-year period[4] - Policies in force reached 1,729,000 in Q1 2025, up from 1,528,000 in Q1 2024, marking a 13.1% increase[34] - QTD written premium for Q1 2025 was 1,000,231,000,comparedto1,000,231,000, compared to 818,785,000 in Q1 2024, showing a growth of 22.1%[34] Assets and Liabilities - Total current assets as of March 31, 2025, were 115,403,000,comparedto115,403,000, compared to 108,564,000 at the end of 2024, reflecting a growth of 6.9%[22] - Total liabilities increased significantly to 558,071,000asofMarch31,2025,comparedto558,071,000 as of March 31, 2025, compared to 358,577,000 at the end of 2024, indicating a rise of 55.6%[22] - Cash and cash equivalents increased to 70,208,000,upfrom70,208,000, up from 54,280,000, marking a growth of 29.3%[22] - The company’s accumulated deficit grew to (158,845,000)asofMarch31,2025,comparedto(158,845,000) as of March 31, 2025, compared to (15,401,000) at the end of 2024[22] Shareholder Actions - The company announced a new 100millionsharerepurchaseauthorizationthroughMay1,2026[11]EmployeeandFranchiseMetrics−Employeecompensationandbenefits,excludingequity−basedcompensation,increasedto100 million share repurchase authorization through May 1, 2026[11] Employee and Franchise Metrics - Employee compensation and benefits, excluding equity-based compensation, increased to 42,098,000, up 21% from 34,773,000intheprioryear[28]−Totalfranchiseproducersincreasedto2,097inQ12025from1,963inQ12024,representingagrowthof6.834,773,000 in the prior year[28] - Total franchise producers increased to 2,097 in Q1 2025 from 1,963 in Q1 2024, representing a growth of 6.8%[34] - Corporate agent productivity for agents with less than 1 year tenure increased to 14,960 in Q1 2025 from 12,787inQ12024,ariseof17.112,787 in Q1 2024, a rise of 17.1%[34] - Operating franchises with more than 1 year tenure slightly decreased to 998 in Q1 2025 from 1,022 in Q1 2024, a decline of 2.4%[34] Customer Metrics - Client retention remained stable at 84% for both Q1 2025 and Q1 2024[34] - Premium retention was 98% for both Q1 2025 and Q1 2024, indicating consistent performance[34] - Net Promoter Score (NPS) decreased to 87 in Q1 2025 from 91 in Q1 2024, reflecting a decline of 4.4%[34] Earnings Per Share - Basic earnings per share (GAAP) for Q1 2025 was 0.09, compared to 0.07inQ12024,reflectinga28.60.07 in Q1 2024, reflecting a 28.6% increase[32] - Adjusted EPS (non-GAAP) for Q1 2025 was 0.26, down from 0.28inQ12024,indicatingadecreaseof7.10.28 in Q1 2024, indicating a decrease of 7.1%[32] Other Financial Metrics - The company reported a decrease in initial franchise fees, which fell to 1,342,000 from $2,245,000 year-over-year[28]