Core Insights - Goosehead Insurance, Inc. reported total revenues of $105.3 million in Q4 2025, a 12% increase year-over-year [1] - Core revenue reached $78.2 million in Q4 2025, reflecting a 15% increase from $68 million in Q4 2024, driven by strong client retention of 85%, rising premium rates, and increased agent productivity [2] - Total written premiums were $1.1 billion, marking a 13% year-over-year growth [3] Financial Performance - Net income for Q4 2025 decreased by 12.6% to $20.8 million from $23.8 million [2] - Total operating expenses rose to $74.4 million, a 12.6% increase from $66.1 million, with adjusted operating expenses increasing 17% to $66 million [3] - Earnings per share for Q4 2025 was $0.50, with a net income margin of 20% [4] Annual Overview - For the full year 2025, total revenue increased by 16% and core revenue also grew by 16% compared to 2024 [5] - Net income for the year declined by 9.4% to $44.5 million from $49.1 million, while adjusted EBITDA rose by 14% to $113.6 million [5] Strategic Developments - The company launched its Digital Agent 2.0 platform in Texas, enhancing the digital buying experience for insurance [5] - Goosehead emphasized the importance of deep relationships with carriers and complex integrations to support its digital binding capabilities [6] - The deployment of AI in service operations aims to enhance client experience and improve cost efficiency [6]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $105.3 million, up 12% year-over-year, and $365.3 million for the full year, growing 16% [30] - Adjusted EBITDA for Q4 grew 5% to $39.2 million, with a full year adjusted EBITDA of $113.6 million, growing 14% and producing an adjusted EBITDA margin of 31% [33] - Total written premiums for Q4 were $1.1 billion, growing 13% year-over-year, and $4.4 billion for the full year, up 17% over 2024 [32] Business Line Data and Key Metrics Changes - Core revenues for Q4 grew 15% to $78.2 million, and for the full year, they grew 16% to $317.9 million due to improved client retention and new business production [30] - Policies in force grew 14% to 1.9 million, accelerating from a 13% growth rate in Q3 2025 [33] - Gross payments per franchise increased by 29% year-over-year, indicating improved cash flow for franchise owners [11] Market Data and Key Metrics Changes - The company is transitioning out of a hard market where carriers raised rates and tightened underwriting, leading to improved underwriting profitability and a healthier product market [9] - The corporate agents outside of Texas increased from 30% in 2022 to 52% in 2025, indicating geographic expansion [13] Company Strategy and Development Direction - The company aims to accelerate growth within existing agencies, expand corporate sales, and invest in technology, particularly AI applications [18] - Goosehead is focused on maintaining a long-term mindset and prioritizing quality over quantity in its franchise network, which has led to increased productivity and healthier economics [22] - The Digital Agent 2.0 platform is a key strategic initiative, providing an end-to-end choice buying experience and enhancing client interactions [15][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position for 2026, expecting low double-digit core revenue growth in the first half and acceleration in the second half as market conditions improve [31] - The company acknowledges the potential impact of regulatory changes on the insurance pricing environment but remains optimistic about its ability to adapt [42][44] - Management believes that AI will enhance agent productivity rather than disintermediate them, as the complexity of home insurance requires human interaction [48][50] Other Important Information - The company repurchased and retired 323,000 shares of Class A stock in Q4, totaling $22.5 million, with an additional $180 million share repurchase authorization announced [35][36] - Cash flow from operations for the year was $91.8 million, up 28% from the prior year, indicating strong cash generation capabilities [34] Q&A Session Summary Question: Guidance for next year regarding home closing transactions and insurance pricing environment - Management noted that housing construction has not been a significant headwind and that they do not expect improvements in housing to impact guidance for 2026 [40] - Pricing dynamics are expected to vary, with the bottom end of guidance assuming generally down pricing and the top end including moderate increases [41] Question: Impact of regulatory changes on business model - Management expressed uncertainty about the likelihood of profitability caps but noted that the Excess and Surplus Lines market may be more durable in such scenarios [44] Question: Use of AI and disintermediation of agents - Management believes that the complexity of home insurance will prevent disintermediation, as clients still prefer human guidance [48][50] Question: Digital Agent 2.0 platform and customer retention - Initial results indicate that the platform improves client retention by allowing existing clients to purchase additional policies [53] Question: Investment spending in 2026 - Management expects total cash investment spending in 2026 to be between $25 million and $35 million, with a portion impacting the P&L [65] Question: Producer trends and franchise consolidation - Management anticipates continued demand for new hires and expects producer counts to increase as consolidation occurs [77][79]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $105.3 million, up 12% year-over-year, and $365.3 million for the full year, growing 16% [28] - Adjusted EBITDA for Q4 grew 5% to $39.2 million, with a full year adjusted EBITDA of $113.6 million, growing 14% and producing an adjusted EBITDA margin of 31% [31] - Total written premiums for Q4 were $1.1 billion, growing 13% year-over-year, and $4.4 billion for the full year, up 17% over 2024 [30] Business Line Data and Key Metrics Changes - Core revenues for Q4 grew 15% to $78.2 million, and for the full year, they grew 16% to $317.9 million due to improved client retention and new business production [28] - Policies in force grew 14% to 1.9 million, accelerating from a 13% growth rate in Q3 2025 [31] - Gross payments per franchise increased by 29% year-over-year, indicating improved cash flow for franchise owners [9] Market Data and Key Metrics Changes - The company is transitioning from a hard market to a healthier product market, which is expected to enhance growth opportunities [7] - The corporate agents outside of Texas increased from 30% in 2022 to 52% in 2025, indicating geographic expansion [11] - The enterprise sales and partnership network almost doubled new business production in 2025, addressing millions of mortgages serviced across the country [11] Company Strategy and Development Direction - The company aims to accelerate growth within existing agencies, expand corporate sales, and invest in technology, particularly AI applications [16] - Goosehead is focused on maintaining a long-term mindset and prioritizing quality over quantity in its franchise network [19] - The Digital Agent 2.0 platform is a key strategic initiative, providing an end-to-end choice buying experience and enhancing client interactions [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position for 2026, anticipating low double-digit core revenue growth in the first half and acceleration in the second half [29] - The company acknowledges the evolving nature of insurance distribution due to technology advancements but remains committed to its core business model [12] - Management highlighted the importance of client retention and the positive impact of technology on service efficiency [26] Other Important Information - The company repurchased and retired 323,000 shares of Class A stock in Q4, representing $22.5 million, with an additional $180 million share repurchase authorization approved [33] - Cash flow from operations for the year was $91.8 million, up 28% from the prior year [32] - The company is investing heavily in technology to enhance its competitive advantage and improve client experience [12] Q&A Session Summary Question: How is the company thinking about home closing transactions and the insurance pricing environment for next year? - Management noted that housing construction has not been a significant headwind and that they are not counting on improvements in housing for guidance in 2026 [37] - Pricing dynamics are expected to vary, with the bottom end of guidance including generally down pricing and the top end reflecting moderate increases [38] Question: How would regulatory changes like profitability caps impact the business model? - Management indicated that such changes could affect carrier appetite and commission economics, but the impact remains uncertain [40] Question: Why does the company believe agents will not be disintermediated through AI? - Management emphasized the complexity of home insurance sales and the continued demand for human guidance, suggesting that AI will enhance agent productivity rather than replace them [44][46] Question: How is the Digital Agent 2.0 platform performing in terms of customer retention? - Initial results show that existing clients are using the platform to purchase additional policies, which is expected to improve client retention [49] Question: What is the company's outlook on buybacks given the current stock valuation? - Management expressed a strong appetite for buybacks, citing the undervaluation of the stock and the strong cash flow generation capabilities [58]

Core Financial Performance - Total revenue for 2025 increased by 16% compared to the previous year, reaching $365.3 million [1][5] - Core revenue, which excludes certain non-GAAP items, also grew by 16% to $317.9 million [1][5] - Adjusted EBITDA for 2025 rose by 14% to $113.6 million, with an adjusted EBITDA margin of 31% [1][6][35] Fourth Quarter Highlights - In Q4 2025, total revenues were $105.3 million, a 12% increase from Q4 2024 [5][6] - Core revenues for Q4 were $78.2 million, reflecting a 15% growth year-over-year [5][6] - Net income for Q4 was $20.8 million, down from $23.8 million in the prior year, resulting in a net income margin of 20% [6][8] Share Repurchase and Capital Management - The company repurchased $81.7 million of shares at an average price of $80.60 during the year [1] - The share repurchase authorization was expanded by $180 million, extending through May 1, 2027 [1][11] Strategic Developments - The company launched its Digital Agent 2.0 platform in Texas, enhancing its digital insurance buying experience [4] - AI technologies were deployed to improve service efficiency and client experience [4] Board of Directors Update - Louis Goldberg was elected to the Board of Directors, bringing over 28 years of experience in corporate governance [12][14] - Thomas McConnon will step down from the Board effective February 18, 2026 [17] 2026 Outlook - The company expects total revenues to grow organically between 10% and 19% and total written premiums to increase between 12% and 20% [15]

Group 1: Farmers & Merchants Bancorp (FMAO) - Farmers & Merchants Bancorp is a community bank operating 19 offices in Northwest Ohio, providing commercial and retail banking services [1] - The Zacks Consensus Estimate for its current year earnings has increased by 5.3% over the last 60 days [1] Group 2: First Financial Corporation Indiana (THFF) - First Financial Corporation Indiana is a multi-bank holding company offering various financial products and services across several states [2] - The Zacks Consensus Estimate for its current year earnings has increased by 3.9% over the last 60 days [2] - The company has a dividend yield of 3.6%, higher than the industry average of 2.9% [2] Group 3: Allstate (ALL) - Allstate is the third-largest property-casualty insurer and the largest publicly-held personal lines carrier in the U.S. [3] - The Zacks Consensus Estimate for its current year earnings has increased by 29.9% over the last 60 days [3] - The company has a dividend yield of 1.9%, compared to the industry average of 0.7% [3]

Core Insights - Markel Group has seen significant institutional investment activity, with various firms increasing their holdings in the company, indicating strong interest from institutional investors [1][7] - Analysts have mixed ratings on Markel Group, with a consensus rating of "Hold" and a price target of $1,930.50, reflecting cautious optimism [2] - The company's stock price has experienced fluctuations, currently trading at $2,060.41, with a market cap of $25.98 billion and a price-to-earnings ratio of 12.90 [3] Institutional Investment - Brighton Jones LLC initiated a new position worth approximately $236,000 in Markel Group during Q4 [1] - CWM LLC increased its holdings by 22.5% in Q1, now owning 386 shares valued at $722,000 after acquiring 71 additional shares [1] - Larson Financial Group LLC boosted its position by 104.8% in Q1, owning 43 shares valued at $80,000 after purchasing 22 more shares [1] - Private Advisor Group LLC grew its stake by 32.6% in Q1, now holding 557 shares worth $1,041,000 after acquiring 137 shares [1] - Kestra Private Wealth Services LLC raised its holdings by 13.7% in Q1, owning 358 shares valued at $669,000 after buying 43 additional shares [1] - Overall, 77.12% of Markel Group's stock is owned by hedge funds and institutional investors [1] Analyst Ratings and Forecasts - Cowen maintained a "hold" rating on Markel Group shares as of October 7 [2] - Weiss Ratings reiterated a "buy (b)" rating on November 11 [2] - The stock has two "Buy" ratings and three "Hold" ratings from analysts, with an average rating of "Hold" [2] - The consensus price target for Markel Group is $1,930.50 [2] Financial Performance - Markel Group reported earnings per share of $30.90 for the last quarter, exceeding the consensus estimate of $22.77 by $8.13 [4] - The company achieved a net margin of 12.99% and a return on equity of 7.91% [4] - Revenue for the quarter was $3.93 billion, surpassing analysts' expectations of $3.77 billion [4] - Analysts project an EPS of 96.25 for the current year [4] Company Overview - Markel Group Inc. is a diverse holding company that markets and underwrites specialty insurance products across the United States, Bermuda, the United Kingdom, and Germany [5] - The company offers various insurance products, including general and professional liability, personal lines, marine and energy, specialty programs, and workers' compensation [5] - Property coverages include fire, allied lines, and specialized property coverages for catastrophe-exposed risks such as earthquakes and wind [5]

Financial Data and Key Metrics Changes - For Q3 2025, the company recorded a net loss of $5 million, operating income of $300,000, and adjusted EBITDA of $34 million, with a year-to-date net income of $35 million [10][11] - The company achieved a 59% gross accident period loss ratio, indicating strong underwriting performance [10][11] Business Line Data and Key Metrics Changes - The company experienced double-digit percentage increases in policies in force, written premium, and earned premium year-over-year [10] - New writings in the partnership channel more than doubled, with independent agents now representing 50% of partnership distribution [8][10] Market Data and Key Metrics Changes - The company is currently active in less than 10% of independent agents, representing a significant growth opportunity as this channel accounts for over $100 billion in premium nationally [8][12] - The average premium per policy decreased quarter-over-quarter due to a proactive rate decrease in Florida, a significant market [30] Company Strategy and Development Direction - The company aims to build the largest, most profitable personal lines insurance carrier in the U.S., focusing on technology-driven growth and innovation [9] - Continued investment in direct R&D marketing is planned, with an increase of approximately $5 million in Q4 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth despite an increasingly competitive environment, attributing success to superior technology and pricing models [12] - The company anticipates a seasonal headwind to the loss ratio in Q4, driven by factors such as animal collisions and bad weather [12] Other Important Information - The company maintains a strong capital position with unencumbered capital of $309 million at the end of Q3 [11] - The deployment of a new pricing algorithm improved customer lifetime values by 20% on average [5][6] Q&A Session Summary Question: Opportunities in the direct channel and competitiveness - Management noted continued acceleration of new writings and growth in all channels, driven by improved pricing [16] Question: Change in severity number and rate adjustments - Management indicated no major changes to rates are anticipated, with the increase in severity being within normal variation [18] Question: Independent agents penetration and growth trajectory - Management highlighted that independent agents represent a significant growth opportunity, with a tripling of new writings year-over-year [23] Question: Partnership as a percentage of earned premium - Management stated that partnership growth is expected to continue and become a larger proportion of the overall book over time [25] Question: Average premium per policy decrease and pricing flexibility - Management explained the decrease was due to a proactive rate decrease in Florida, positioning the company well for future growth [30] Question: Changes in the competitive landscape - Management confirmed that competitive pressures remain high, but the company continues to grow through its technology and pricing models [32] Question: Impact of tariffs on data and expectations - Management reported no significant changes in expectations regarding tariffs, maintaining that loss ratios may increase seasonally in Q4 [34]

Financial Data and Key Metrics Changes - Net income for Q3 2025 was $1.1 billion, including $675 million after-tax from the increase in fair value of equity securities [4] - Non-GAAP operating income for Q3 2025 was $449 million, more than double compared to the same quarter last year [4] - The property casualty combined ratio improved to 88.2%, a 9.2 percentage point improvement year-over-year, with a decrease of 9.3 points for catastrophe losses [4][5] Business Line Data and Key Metrics Changes - Consolidated property casualty net written premiums grew by 9% for the quarter [5] - Commercial lines net written premiums increased by 5% with a combined ratio of 91.1%, improving by 1.9 percentage points [6] - Personal lines net written premiums grew by 14%, with a combined ratio of 88.2%, improving by 22.1 percentage points [6] - Excess and surplus lines saw an 11% increase in net written premiums, with a combined ratio of 89.8%, improving by 5.5 percentage points [7] - Cincinnati RE's net written premiums decreased by 2%, with a combined ratio of 80.8% [8] - Cincinnati Global's combined ratio was 61.2%, with premium growth of 6% [8] Market Data and Key Metrics Changes - Investment income grew by 14% in Q3 2025, with bond interest income increasing by 21% [10] - The total investment portfolio net appreciated value was approximately $8.2 billion at the end of Q3 2025 [11] - Cash flow from operating activities for the first nine months of 2025 was $2.2 billion, up 8% [11] Company Strategy and Development Direction - The company remains confident in its long-term strategy and has been recognized with an upgrade to AA- by Fitch Ratings for its financial strength [15] - The focus is on maintaining strong relationships with independent insurance agents and enhancing underwriting decisions [6][15] - The company is adapting to changing market conditions, particularly in California, by updating risk models and focusing on E&S lines [35][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underwriting process and the overall favorable development of reserves over the past 30 years [18][26] - The competitive environment is described as rational and stable, with ongoing attention to legal system impacts and social inflation [50][51] - The company is focused on maintaining a balance between premium growth and underwriting profitability [51][53] Other Important Information - The company paid $134 million in dividends during Q3 2025 and repurchased approximately 404,000 shares [13] - The book value reached a record high of $98.76 per share, with $15.4 billion of GAAP consolidated shareholders' equity [14] Q&A Session Summary Question: Insights on commercial auto performance and prior year development - Management noted favorable development across all lines, with commercial auto remaining profitable despite some noise in prior year development [18][19] Question: Concerns regarding large claims in commercial lines - Management indicated that while there was an increase in large claims, there was no unexpected concentration of losses [23][24] Question: Thoughts on general liability trends - Management acknowledged pressures from legal system abuse but maintained confidence in their consistent underwriting process [26] Question: Investment portfolio credit quality concerns - Management confirmed a focus on high-quality bonds and adherence to investment policies, avoiding subprime exposure [29] Question: New business trends and competitive pressures - Management expressed strong new business growth across segments, emphasizing a disciplined approach to pricing and underwriting [31][34] Question: Catastrophe reinsurance strategy for 2026 - Management confirmed a consistent approach to purchasing property CAT cover for balance sheet protection, with no changes anticipated [63]

Financial Data and Key Metrics Changes - Total revenue grew 16% year-over-year to $90.4 million, with core revenue increasing 14% to $83.9 million [26] - Adjusted EBITDA rose 14% to $29.7 million, with an adjusted EBITDA margin of 33% compared to 34% a year ago [29] - Client retention improved to 85%, up from 84% for four consecutive quarters [26][27] Business Line Data and Key Metrics Changes - Franchise premiums totaled $976 million, up 18%, while corporate premiums were $206 million, a 1% increase [27] - Franchise producers at quarter end were 2,124, up 1% year-over-year, with producers per franchise growing 6% [20] - The corporate team achieved new business commissions growth of 20% year-over-year, accelerating from 13% in the second quarter [23] Market Data and Key Metrics Changes - Total written premium for the quarter was $1.2 billion, a 15% increase from the previous year [27] - Policies in force grew 13% year-over-year to 1.9 million, with the growth rate accelerating during the quarter [27] - Contingent commissions for the quarter were $4.5 million, an increase of 82% compared to $2.5 million in the previous year [28] Company Strategy and Development Direction - The company aims to become the largest distributor of personal lines insurance in the U.S. and has identified significant growth opportunities in a fragmented market [5][6] - Key strategic initiatives include expanding existing agencies, launching new franchises, and enhancing technology to improve client experience [8][10] - The company is investing heavily in its digital agent platform, expecting it to drive substantial growth in total written premiums over the next five years [19][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering a stable pricing cycle, which is expected to enhance client retention and overall business efficiency [14][25] - The company anticipates continued improvement in client retention and premium growth, with expectations for acceleration in 2026 [26][49] - Management highlighted the importance of technology investments and partnerships in driving future growth and improving service delivery [18][20] Other Important Information - The company repurchased and retired 685,000 Class A shares, utilizing $58.7 million of its share repurchase authorization [30] - The company expects to invest between $25 million and $35 million annually in the digital agent platform for 2026 and 2027 [18] Q&A Session Summary Question: Can you break out the margin profile of franchise versus corporate versus enterprise? - Management indicated that the enterprise sales business will have a more impactful margin profile in the long term compared to corporate or franchise business, with franchise business still being the primary driver of total written premium [33][34] Question: How many carriers are currently on the digital agent? - Currently, there are about 12 carriers integrated with the digital agent, and management is in discussions with major carriers for further integration [36][37] Question: What is the outlook for home sales and how does it affect written premium? - Management noted that while housing activity remains depressed, the company is well-positioned to capture market share as housing activity improves [39][40] Question: What is the expected trajectory for client retention next year? - Management is optimistic about continued improvement in client retention, driven by investments in service delivery tools and a stable pricing environment [73] Question: Were there any one-time revenue adjustments this quarter? - Management confirmed there were no one-time revenue adjustments in the third quarter, and improvements in commission rates are ongoing [75]

Core Insights - Goosehead Insurance, Inc. is set to release its quarterly earnings on October 22, 2025, with analysts predicting an EPS of $0.47 and revenue of approximately $91 million [1] - Analysts from Zacks Investment Research expect a decline in earnings for the quarter ending September 2025, despite an anticipated revenue increase, creating a complex financial backdrop [2] Financial Metrics - The company has a price-to-earnings (P/E) ratio of 57.55, indicating high expectations for future growth, with investors paying $57.55 for every dollar of earnings [3] - Goosehead's price-to-sales ratio stands at 7.54, and the enterprise value to sales ratio is 7.44, highlighting its valuation relative to sales [3] - The enterprise value to operating cash flow ratio is 29.91, providing insights into the company's financial efficiency [3] Investment Indicators - The earnings yield is 1.74%, reflecting the return on investment [4] - A debt-to-equity ratio of -0.74 suggests a strong equity position relative to debt [4] - The current ratio of 2.92 indicates robust short-term financial stability, showcasing the company's ability to cover short-term liabilities with short-term assets [4]