Goosehead (GSHD) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

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]