Goosehead Insurance(GSHD) - 2025 Q1 - Quarterly Results

Financial Performance - Total revenue for Q1 2025 was $75.6 million, a 17% increase compared to Q1 2024[4] - Core revenue for Q1 2025 was $69.1 million, also up 17% from $58.8 million in the prior-year period[6] - Net income for Q1 2025 was $2.6 million, compared to $1.8 million in the prior-year period, representing a 46% increase[4] - Adjusted EBITDA for Q1 2025 was $15.5 million, up from $11.7 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 $385 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 $64,460,000 for the same period in 2024[28] - Core revenue reached $69,120,000, up 17.4% from $58,839,000 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 $11,727,000 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 $1,809,000 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 $4.65 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, 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, compared to $108,564,000 at the end of 2024, reflecting a growth of 6.9%[22] - Total liabilities increased significantly to $558,071,000 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, up from $54,280,000, marking a growth of 29.3%[22] - The company’s accumulated deficit grew to $(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 $100 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 $34,773,000 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 $12,787 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 $0.07 in Q1 2024, reflecting a 28.6% increase[32] - Adjusted EPS (non-GAAP) for Q1 2025 was $0.26, down from $0.28 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]