Goosehead Insurance, Inc. Announces Third Quarter 2025 Results

Core Insights - Goosehead Insurance, Inc. reported a total revenue increase of 16% year-over-year, reaching $90.4 million for the third quarter of 2025 [4][6] - Core revenue, which excludes certain non-recurring items, grew by 14% to $83.9 million compared to the same period last year [4][6] - The company achieved a net income of $12.7 million, slightly up from $12.6 million in the prior year, with a net income margin of 14% [6][7] - Adjusted EBITDA increased by 14% to $29.7 million, although the adjusted EBITDA margin decreased to 33% [6][7] - Total written premiums rose by 15% to $1.2 billion, indicating strong growth in the insurance segment [4][6] Financial Performance - Total operating expenses for Q3 2025 were $69.2 million, up from $61.6 million in the prior-year period, with significant increases in employee compensation and benefits [5][6] - Employee compensation and benefits rose to $48.7 million, reflecting investments in corporate producers and technology [5][6] - The company repurchased $58.7 million of shares at an average price of $85.58 during the quarter, indicating a commitment to returning value to shareholders [3][9] Key Metrics - Policies in force increased by 13% to approximately 1,853,000 [6][25] - The corporate agent headcount grew by 14% to 523, while total franchise producers increased by 1% to 2,124 [6][25] - Client retention remained strong at 85%, with premium retention at 93% [25] Future Outlook - For the full year 2025, total written premiums are expected to be between $4.38 billion and $4.65 billion, representing growth of 15% to 22% [14] - Total revenues for 2025 are projected to be between $350 million and $385 million, indicating growth of 11% to 22% [14]