Goosehead Insurance, Inc. Announces Second Quarter 2025 Results

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]