Goosehead Insurance(GSHD) - 2025 Q3 - Quarterly Results

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]