Core Viewpoint - Goosehead Insurance, Inc. will report its second quarter 2025 results on July 23, 2025, after market close [1] Group 1: Earnings Announcement - The company will hold a conference call to discuss the results at 4:30 PM ET on July 23, 2025 [2] - Participants can access the call via a registration link and a live webcast will be available on the investor relations website [2] Group 2: Company Overview - Goosehead is a rapidly growing independent personal lines insurance agency operating through corporate and franchise locations across the United States [3] - The company focuses on providing extraordinary value by offering a broad product choice and a world-class service experience [3] - Goosehead represents over 150 insurance companies that underwrite personal and commercial lines [3]

Core Insights - Goosehead Insurance has appointed Angie Kervin as Chief Human Resources Officer (CHRO) to enhance HR capabilities and solidify its industry leadership [1][2] - Kervin brings over two decades of experience in human capital strategies, having held significant roles in various organizations [2][4] - The appointment aligns with Goosehead's commitment to its people strategy and ambitious business goals [3] Company Overview - Goosehead Insurance (NASDAQ: GSHD) is a rapidly growing independent personal lines insurance agency operating through corporate and franchise locations across the United States [5] - The company focuses on providing extraordinary value by centering consumer needs and offering a broad product choice along with a world-class service experience [5] Strategic Focus Areas - Developing innovative HR programs to attract, develop, and retain top talent [7] - Strengthening a high-performance culture emphasizing meritocracy and servant leadership [7] - Leveraging advanced technologies and data-driven decision-making to enhance workforce productivity [7] - Enhancing Goosehead's HR infrastructure to support aggressive, long-term growth in personal lines insurance [7]

Investment Rating - The report identifies 25 SMID Cap stocks with a "Buy" rating, focusing on high-quality and high-growth characteristics [2][10][12]. Core Insights - The report emphasizes the importance of operational quality and growth sustainability in selecting SMID Cap stocks, particularly in a challenging macroeconomic environment [3][12]. - SMID Caps have underperformed large caps by 750 basis points year-to-date, but historically, smaller caps tend to outperform larger caps by approximately 2% over the long term [3][12]. - The report combines insights from HOLT's screening criteria and UBS analysts' fundamental research to highlight underappreciated businesses in the SMID Cap segment [3][12]. Summary by Sections Investment Opportunities - The report lists 25 high-quality and high-growth SMID Cap stocks, categorized by sectors such as Industrials, Healthcare, Consumer, Financials, TMT, and Materials [10][11]. - Notable stocks include Alight Inc (ALIT) with a market cap of $2.9 billion and a price target upside of 81%, and Bio-Techne Corp (TECH) with a market cap of $7.6 billion and a price target upside of 45% [6][11]. Market Context - The report discusses the current underperformance of SMID Caps relative to the S&P 500, attributing it to higher exposure to interest rates and economic sensitivity compared to large caps [3][12]. - It highlights the need for careful stock selection and strong fundamentals in the current uncertain economic climate [3][12]. HOLT Methodology - The HOLT High Quality and Growth screen identifies companies with high and stable operational quality and strong growth characteristics, using metrics such as CFROI [16][19]. - The report indicates that the HOLT methodology provides a consistent approach to evaluating corporate profitability across a wide range of companies [17][19].

Core Insights - Goosehead Insurance has launched the Veteran Initiative Program (VIP) to support military veterans in becoming franchise owners, leveraging their unique skills from military service [1][2] - The program aims to provide veterans with professional development, mentorship, and real-world learning opportunities to succeed in the insurance industry [1][3] Company Overview - Goosehead Insurance, Inc. (NASDAQ: GSHD) is a rapidly growing independent personal lines insurance agency that operates through corporate and franchise locations across the United States [5] - The company represents over 200 insurance companies, offering a wide range of personal and commercial insurance products [5] Veteran Initiative Program Details - The VIP is designed to empower veterans, regardless of their prior insurance experience, with comprehensive support and training to operate successful franchises [2][3] - The program includes structured coaching, access to industry-leading technology, a dedicated veteran development team, and geographic flexibility for franchise locations [6] - Goosehead Insurance offers a 20% discount on the initial franchise fee for veterans, demonstrating its commitment to making franchise ownership more accessible [6] Success Stories - The program was inspired by successful veteran franchisees like Tim McMullin, who achieved a $10 million book of business, showcasing the potential for veterans in the franchise model [4]

Core Viewpoint - Goosehead Insurance (GSHD) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Goosehead is projected at $1.87 per share for the fiscal year ending December 2025, reflecting a year-over-year change of -6% [8]. - Over the past three months, analysts have increased their earnings estimates for Goosehead by 15.8% [8]. Impact of Institutional Investors - Changes in earnings estimates are strongly correlated with stock price movements, largely due to institutional investors who adjust their valuations based on these estimates [4]. - An increase in earnings estimates typically leads to higher fair value calculations for stocks, prompting institutional buying or selling actions that influence stock prices [4]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Goosehead to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Revenue Growth - Total revenue increased by 17% year-over-year to $75.6 million for Q1 2025, up from $64.5 million in Q1 2024[113] - Core Revenue increased by 17% to $69.1 million in Q1 2025, compared to $58.8 million in Q1 2024[113] - Total Written Premiums rose by 22% to $1.0 billion in Q1 2025, up from $0.82 billion in Q1 2024[114] - Renewal Revenue grew 20% to $54.2 million for the three months ended March 31, 2025, from $45.0 million for the same period in 2024[155] - New Business Revenue grew 8% to $14.9 million for the three months ended March 31, 2025, from $13.8 million for the same period in 2024[152] Profitability - Net income increased by $0.8 million to $2.6 million, representing 4% of total revenues for Q1 2025[113] - Adjusted EBITDA grew by 32% to $15.5 million, accounting for 21% of total revenues in Q1 2025[113] - Net income for Q1 2025 was $2.646 million, up from $1.809 million in Q1 2024, representing a 46.2% increase[170] - Adjusted EBITDA for Q1 2025 was $15.520 million, compared to $11.727 million in Q1 2024, reflecting a 32.5% increase; Adjusted EBITDA margin improved to 21% from 18%[170] Expenses - Employee compensation and benefits expenses increased by $6.2 million, or 15%, to $48.3 million for the three months ended March 31, 2025, from $42.1 million for the same period in 2024[134] - Revenue from Initial Franchise Fees decreased by $0.9 million, or 40%, to $1.3 million for the three months ended March 31, 2025, from $2.2 million for the same period in 2024[132] - Interest income decreased by $0.1 million, or 24%, to $0.2 million for the three months ended March 31, 2025, from $0.3 million for the same period in 2024[133] Operational Metrics - Policies in Force increased by 13% to 1,729,000 as of March 31, 2025, compared to the previous year[113] - Corporate sales headcount increased by 46% to 426 as of March 31, 2025, compared to the previous year[113] - Total operating franchises decreased by 5% to 1,098 as of March 31, 2025, from 1,155 in the previous year[113] Cash Flow and Financing - Cash and cash equivalents as of March 31, 2025, totaled $70.2 million, an increase from $57.973 million at the beginning of the period[173] - Net cash provided by operating activities rose to $15.484 million in Q1 2025, up from $12.067 million in Q1 2024, marking a 28.5% increase[175] - The company utilized $3.313 million for investing activities in Q1 2025, compared to $2.882 million in Q1 2024, indicating a 14.9% increase[177] - Financing activities generated $2.427 million in Q1 2025, a significant turnaround from a net cash used of $0.115 million in Q1 2024[178] - The company entered into a new credit agreement on January 8, 2025, for $300 million in term loans and a $75 million revolving credit facility[179] Shareholder Actions - A new share repurchase program was approved on April 23, 2025, allowing for the purchase of up to $100 million of Class A common stock through May 1, 2026[190] Accounting and Risk - No significant changes to critical accounting policies since the Annual Report for the fiscal year ended December 31, 2024[192] - No material changes to exposure to market risks as described in the Annual Report for the fiscal year ended December 31, 2024[194]

Goosehead Insurance, Inc (NASDAQ:GSHD) Q4 2024 Results Conference Call February 24, 2025 4:30 PM ET Company Participants Daniel Farrell - VP of Capital Markets Mark Miller - President and CEO Mark Jones - CFO Conference Call Participants Tommy McJoynt - KBW Matt Carletti - JMP Securities Brian Meredith - UBS Paul Newsome - Piper Sandler Andrew Kligerman - TD Cowen Katie Sakys - Autonomous Research Michael Zaremski - BMO Capital Markets Mark Hughes - Truist Securities Pablo Singzon - JPMorgan Scott Heleniak ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the transition period from _______ to ______ Commission file number: 001-38466 GOOSEHEAD INSURANCE, INC. FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Delaware 82-3886022 (IRS Employer Identification No.) Not applicable (Former ...

Part I [Condensed Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for Goosehead Insurance, Inc. show a net loss of $3.0 million for the six months ended June 30, 2022, primarily due to increased operating expenses [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenues increased 39% to $53.0 million in Q2 2022, but a 38% rise in operating expenses led to a net income decrease to $2.4 million, resulting in a $3.0 million net loss for the six-month period Condensed Consolidated Statements of Operations (in thousands) | | Three Months Ended June 30, | | Six Months Ended June 30, | | | :--- | :--- | :--- | :--- | :--- | | | **2022** | **2021** | **2022** | **2021** | | **Total revenues** | $53,022 | $38,173 | $94,300 | $69,401 | | **Total operating expenses** | $47,355 | $34,387 | $94,735 | $66,417 | | **Income (loss) from operations** | $5,667 | $3,786 | $(435) | $2,984 | | **Net income (loss)** | $2,389 | $3,136 | $(2,994) | $2,047 | | **Net income (loss) attributable to Goosehead Insurance, Inc.** | $342 | $1,487 | $(1,944) | $1,091 | | **Diluted EPS** | $0.02 | $0.07 | $(0.10) | $0.05 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2022, total assets increased to $291.3 million and total liabilities to $350.0 million, resulting in a total equity deficit of $58.7 million Condensed Consolidated Balance Sheet Highlights (in thousands) | | **June 30, 2022** | **December 31, 2021** | | :--- | :--- | :--- | | **Total current assets** | $51,110 | $47,813 | | **Total assets** | $291,286 | $267,798 | | **Total current liabilities** | $26,194 | $27,777 | | **Total liabilities** | $350,033 | $336,986 | | **Total equity** | $(58,747) | $(69,188) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities decreased to $10.1 million for the six months ended June 30, 2022, with a period-end cash balance of $33.5 million Six Months Ended June 30, Cash Flow Summary (in thousands) | | **2022** | **2021** | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $10,092 | $19,992 | | **Net cash used for investing activities** | $(6,802) | $(9,286) | | **Net cash used for financing activities** | $(221) | $(416) | | **Net increase in cash and restricted cash** | $3,069 | $10,290 | | **Cash and cash equivalents, and restricted cash, end of period** | $33,548 | $36,526 | [Note 1: Organization](index=11&type=section&id=Note%201%20Organization) Goosehead Insurance, Inc. operates as an insurance brokerage through corporate and expanding franchise networks, onboarding 141 new locations in Q2 2022 - The company operates through corporate-owned locations and a growing network of franchises[22](index=22&type=chunk) Operational Growth as of June 30 | Metric | **2022** | **2021** | | :--- | :--- | :--- | | Corporate-owned locations | 15 | 11 | | Operating franchise locations | 1,344 | 1,072 | | New franchises onboarded (Q2) | 141 | 108 | [Note 3: Revenues](index=13&type=section&id=Note%203%20Revenues) Total revenues reached $94.3 million for the six months ended June 30, 2022, primarily from recurring renewal-based commissions and royalty fees, reflecting the company's predictable business model Disaggregation of Revenue (in thousands) | Revenue Source | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | **Commissions and agency fees** | | | | Renewal Commissions | $14,541 | $24,748 | | New Business Commissions | $6,730 | $12,097 | | Agency Fees | $3,114 | $5,751 | | Contingent Commissions | $1,880 | $3,678 | | **Franchise revenues** | | | | Renewal Royalty Fees | $18,870 | $32,872 | | New Business Royalty Fees | $4,821 | $9,113 | | Initial Franchise Fees | $2,591 | $4,887 | | **Total Revenues** | **$53,022** | **$94,300** | [Note 7: Debt](index=16&type=section&id=Note%207%20Debt) The company refinanced its debt in July 2021 to a $50.0 million revolving credit facility and a $100.0 million term note, with $25.0 million drawn on the revolver and $96.9 million on the term note as of June 30, 2022, while remaining in compliance with all covenants - The company refinanced its debt in July 2021, increasing its credit facilities to a **$50.0 million** revolver and a **$100.0 million** term note[54](index=54&type=chunk) - As of June 30, 2022, **$25.0 million** was drawn on the revolving credit facility, with **$24.8 million** available[55](index=55&type=chunk) - The term note requires quarterly principal payments with a balloon payment on July 21, 2026, and the company was in compliance with all covenants[56](index=56&type=chunk)[59](index=59&type=chunk) [Note 8: Income Taxes](index=17&type=section&id=Note%208%20Income%20taxes) The effective tax rate for Q2 2022 was 48%, significantly higher due to fewer stock option exercises, with a total liability of $105.3 million under the Tax Receivable Agreement as of June 30, 2022 - The effective tax rate for Q2 2022 was **48%**, up from 7% in Q2 2021, mainly due to fewer employee stock option exercises[63](index=63&type=chunk) - The total liability for payments due under the Tax Receivable Agreement (TRA) was **$105.3 million** as of June 30, 2022[68](index=68&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong Q2 2022 performance with a 39% revenue increase and 42% growth in total written premiums, driven by investments in headcount and technology, while maintaining sufficient liquidity for future needs [Financial Highlights](index=22&type=section&id=Financial%20Highlights) Goosehead demonstrated strong Q2 2022 growth, with total revenue up 39% to $53.0 million, total written premiums up 42% to $566.0 million, and Adjusted EBITDA increasing 85% to $12.5 million Q2 2022 Financial Highlights vs. Q2 2021 | Metric | Q2 2022 | % Change YoY | | :--- | :--- | :--- | | Total Revenue | $53.0 million | +39% | | Core Revenue* | $48.1 million | +39% | | Total Written Premiums | $566.0 million | +42% | | Adjusted EBITDA* | $12.5 million | +85% | | Policies in Force | 1,181,000 | +35% | | Total Franchises | 2,341 | +30% | | Corporate Sales Headcount | 503 | +11% | - *Core Revenue and Adjusted EBITDA are non-GAAP measures[88](index=88&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Total revenues increased 39% to $53.0 million in Q2 2022, driven by strong growth in both commissions and franchise revenues, while operating expenses rose 41% due to increased headcount and equity-based compensation - Renewal Commissions grew **41%** in Q2 2022, driven by an increase in policies in their renewal term and steady client retention of **89%**[101](index=101&type=chunk) - Renewal Royalty Fees increased **62%** in Q2 2022, also due to more policies entering the renewal term where the company's royalty share increases from 20% to 50%[106](index=106&type=chunk) - Employee compensation and benefits expense rose **41%** in Q2 2022, caused by a **25%** increase in total headcount and a **189%** increase in equity-based compensation[110](index=110&type=chunk) [Key Performance Indicators](index=28&type=section&id=Key%20performance%20indicators) Key performance indicators show strong growth, with Total Written Premium increasing 42% to $1.02 billion, Policies in Force growing 35% to 1,181,000, and client retention remaining high at 89% with an NPS of 90 Total Written Premium (in thousands) | | **Six Months Ended June 30, 2022** | **Six Months Ended June 30, 2021** | **% Change** | | :--- | :--- | :--- | :--- | | Corporate sales | $257,239 | $201,403 | 28% | | Franchise sales | $759,634 | $516,412 | 47% | | **Total** | **$1,016,873** | **$717,815** | **42%** | - Policies in Force increased **35%** to **1,181,000** as of June 30, 2022, from 872,000 a year prior[120](index=120&type=chunk) - Client retention remained constant at **89%** as of June 30, 2022, and the Net Promoter Score (NPS) was **90**[122](index=122&type=chunk)[124](index=124&type=chunk) [Non-GAAP Measures](index=29&type=section&id=Non-GAAP%20Measures) Non-GAAP measures show Core Revenue grew 39% to $48.1 million and Adjusted EBITDA increased 85% to $12.5 million in Q2 2022, with the margin expanding to 24% Reconciliation of Net Income to Adjusted EBITDA (in thousands) | | **Three Months Ended June 30, 2022** | **Three Months Ended June 30, 2021** | | :--- | :--- | :--- | | **Net Income** | **$2,389** | **$3,136** | | Interest expense | 1,114 | 546 | | Depreciation and amortization | 1,658 | 1,132 | | Tax (benefit) expense | 2,164 | 223 | | Equity-based compensation | 5,173 | 1,852 | | Other (income) expense | — | (119) | | **Adjusted EBITDA** | **$12,498** | **$6,770** | | **Adjusted EBITDA Margin** | **24%** | **18%** | Reconciliation of Basic EPS to Adjusted EPS | | **Three Months Ended June 30, 2022** | **Three Months Ended June 30, 2021** | | :--- | :--- | :--- | | **Earnings per share - basic (GAAP)** | **$0.02** | **$0.08** | | Add: equity-based compensation | $0.14 | $0.05 | | **Adjusted EPS (non-GAAP)** | **$0.16** | **$0.13** | [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity, including $31.1 million cash on hand and $10.1 million from operations, is deemed sufficient to meet its $306.7 million contractual obligations, including $105.3 million in tax receivable liabilities and $96.9 million in debt - As of June 30, 2022, cash and cash equivalents were **$31.1 million**[147](index=147&type=chunk) Contractual Obligations as of June 30, 2022 (in thousands) | Obligation | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating leases | $78,219 | $3,742 | $19,500 | $20,588 | $34,389 | | Debt obligations payable | $96,875 | $5,625 | $18,125 | $73,125 | — | | Liabilities under the tax receivable agreement | $105,311 | — | $16,553 | $12,087 | $76,671 | | **Total** | **$306,655** | **$13,286** | **$57,358** | **$124,951** | **$111,060** | [Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes to the company's market risk exposure since the disclosures in its 2021 Annual Report on Form 10-K - There have been no material changes to the company's market risk exposure as described in the Annual Report on Form 10-K[165](index=165&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2022, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation, the CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2022[166](index=166&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[167](index=167&type=chunk) Part II [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, but management does not expect their resolution to materially affect its financial position or results of operations - The company may be involved in various legal proceedings, but management does not expect the outcomes to have a material adverse effect on its financials[83](index=83&type=chunk)[168](index=168&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's 2021 Annual Report on Form 10-K - No material changes have been made to the risk factors disclosed in the 2021 Form 10-K[169](index=169&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The report indicates no unregistered sales of equity securities, noting that LLC Units are redeemable for Class A common stock on a one-for-one basis - The report indicates no unregistered sales of equity securities during the period[170](index=170&type=chunk) [Exhibits](index=37&type=section&id=Item%206.%20Exhibits) Exhibits filed with the Form 10-Q include a separation agreement, CEO and CFO certifications, and XBRL data files - Exhibits filed include a separation agreement with Michael C. Colby, Sarbanes-Oxley certifications, and XBRL documents[175](index=175&type=chunk)

Revenue Growth - Total revenue increased by 32% from Q1 2021 to $41.3 million in Q1 2022[20] - Core Revenue increased by 37% from Q1 2021 to $36.5 million in Q1 2022[20] - Total Written Premiums placed increased by 41% from the prior-year period to $450.9 million[20] - Total Written Premium grew by 41% to $450.9 million for the three months ended March 31, 2022, compared to $318.9 million for the same period in 2021[12] - Core Revenue increased by $9.8 million, or 37%, to $36.5 million for the three months ended March 31, 2022, driven by increases in operating franchises and client retention[124] - Total core revenue reached $36,505 million, up 36.7% from $26,700 million year-over-year[135] Policy and Franchise Growth - Policies in Force increased by 39% from March 31, 2021, to 1,097,000 at March 31, 2022[20] - Total franchises increased by 41% compared to the prior year period to 2,298[20] - Policies in Force increased by 39% to 1,097,000 as of March 31, 2022, compared to 788,000 as of March 31, 2021[14] - Initial Franchise Fees increased by $0.9 million, or 60%, to $2.3 million for the three months ended March 31, 2022, due to a 41% increase in total franchises to 2,298[3] - New Business Royalty Fees rose by $1.1 million, or 36%, to $4.3 million for the three months ended March 31, 2022, attributed to a 28% increase in the total number of operating franchises to 1,268[2] Commission and Revenue Streams - Renewal Commissions increased by 32% to $10.2 million in Q1 2022 from $7.8 million in Q1 2021[96] - New Business Commissions increased by 16% to $5.4 million in Q1 2022 from $4.6 million in Q1 2021[97] - Renewal Royalty Fees increased by $5.3 million, or 60%, to $14.0 million for the three months ended March 31, 2022, driven by an increase in client retention to 89%[1] Financial Performance - Adjusted EBITDA decreased by 41% to $1.3 million, or 3% of total revenues in Q1 2022[20] - Adjusted EBITDA decreased by $0.9 million, or 41%, to $1.3 million for the three months ended March 31, 2022, primarily due to increased General and Administrative expenses[130] - Adjusted EBITDA Margin was 3% for the three months ended March 31, 2022, down from 7% for the same period in 2021, influenced by rising expenses and decreased revenue from Contingent Commissions[132] - The company reported a net loss of $5,383 million for Q1 2022, compared to a net loss of $1,089 million in Q1 2021[137] - Net cash used for operating activities was $5,154 million in Q1 2022, a decrease of $13,042 million compared to a net cash provided of $7,888 million in Q1 2021[141] - Cash and cash equivalents at the end of Q1 2022 were $22,679 million, down from $31,955 million at the end of Q1 2021[141] Client Retention and Service - Client Retention remained constant at 89% as of March 31, 2022, reflecting the service team's focus on delivering high service levels[118] Tax and Accounting - The company will record an increase in deferred tax assets based on enacted federal and state tax rates at the date of redemption or exchange[155] - The company estimates that it will not realize the full benefit of the deferred tax asset, leading to a potential reduction with a valuation allowance[155] - The company will record 85% of the estimated realizable tax benefit as an increase to the liability due under the tax receivable agreement[155] - There have been no significant changes to the company's critical accounting policies as disclosed in the Annual Report on Form 10-K[156] - There have been no material changes to the company's exposure to market risks as described in the Annual Report on Form 10-K[158] Liquidity and Obligations - The company’s liquidity sources include cash on hand of $21.2 million as of March 31, 2022, and cash flows from operations[139] - Total contractual obligations as of March 31, 2022, amounted to $284,994 million, with operating leases accounting for $66,090 million[152] - The company expects to fund its working capital requirements and commitments through cash on hand, net working capital, and cash flows from operations[145] - The company’s adjusted EPS for Q1 2022 was $0.04, compared to $0.03 in Q1 2021[138]