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 [27] - 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 [27][28] Business Line Data and Key Metrics Changes - Franchise premiums totaled $976 million, up 18%, while corporate premiums were $206 million, a 1% increase [28] - Franchise producers at quarter end were 2,124, up 1% year-over-year, with producers per franchise growing 6% [22] - The corporate team achieved new business commissions growth of 20% year-over-year, accelerating from 13% in the previous quarter [24] Market Data and Key Metrics Changes - Total written premium for the quarter was $1.2 billion, a 15% increase from the previous year [28] - Policies in force grew 13% year-over-year to 1.9 million [28] - Contingent commissions for the quarter were $4.5 million, an increase of 82% compared to $2.5 million in the previous year [29] 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 [6][8] - Key strategic initiatives include expanding existing agencies, launching new franchises, and enhancing technology to improve client experience [9][10] - The digital agent technology is expected to revolutionize personal lines insurance distribution and drive significant growth [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering a stable pricing cycle, which is expected to enhance operational efficiency and client satisfaction [16][27] - The company anticipates continued improvement in client retention and premium growth, with expectations for revenue contributions from new partnerships starting in 2026 [20][28] - The management highlighted the importance of technology investments and partnerships in driving future growth [19][22] Other Important Information - The company repurchased and retired 685,000 Class A shares, utilizing $58.7 million of its share repurchase authorization [30] - Total debt outstanding was $299 million, with cash and cash equivalents at $51.6 million [30] - The company reiterated its full-year 2025 revenue guidance, expecting total revenues between $350 million and $385 million [30][31] 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 over the long term compared to corporate and franchise businesses [34] Question: How many carriers are currently on the digital agent? - There are about 12 carriers integrated with the digital agent, and management is in discussions with major carriers for further integration [37][38] Question: What is the outlook for home sales and how does it affect written premium? - Management noted that housing activity remains depressed, but the company is well-positioned to capture leads as the market improves [41] Question: What is the expected growth in producer count? - Management expects consistent growth in producer count, emphasizing the importance of quality over quantity in franchise performance [46] Question: Why is the revenue trajectory not more upbeat? - Management expressed optimism about the business direction but acknowledged ongoing challenges in the product market, which is gradually improving [51][55] Question: What needs to happen to reach the high end of the revenue outlook? - Management highlighted the variability of contingent commissions and the need for a stable product market to achieve higher revenue [66]

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 [27] - 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 [28] Business Line Data and Key Metrics Changes - Franchise premiums reached $976 million, up 18%, while corporate premiums were $206 million, a 1% increase [28] - Franchise producers at quarter end were 2,124, up 1% year-over-year, with producers per franchise growing 6% [22] - The corporate team achieved new business commissions growth of 20% year-over-year, accelerating from 13% in the previous quarter [24] Market Data and Key Metrics Changes - Total written premium for the quarter was $1.2 billion, a 15% increase from the previous year [28] - Policies in force grew 13% year-over-year to 1.9 million [28] - Contingent commissions for the quarter were $4.5 million, an increase of 82% compared to $2.5 million in the previous year [29] 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 [6][8] - Key strategic initiatives include expanding existing agencies, launching new franchises, and enhancing technology to improve client experience [9][10] - The digital agent technology is expected to revolutionize personal lines insurance distribution and drive significant growth [14][20] 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 [16][26] - The company anticipates continued acceleration in revenue growth and improvements in client retention as market conditions stabilize [27][30] - Management highlighted the importance of technology investments and partnerships in driving future growth [19][22] Other Important Information - The company has invested $10.9 million into the digital agent platform in 2025, with plans to invest between $25 million and $35 million in 2026 and 2027 [19] - The company repurchased and retired 685,000 Class A shares, utilizing $58.7 million of its share repurchase authorization [30] 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 over the long term compared to corporate and franchise businesses [34] Question: How many carriers are on the digital agent right now? - Currently, there are about 12 carriers integrated with the digital agent, and major carriers are supportive of the initiative [37][38] Question: What are you seeing in home sales and how is that affecting written premium? - Management noted that housing activity remains depressed, but the company is well-positioned to capture leads as the market improves [41] Question: What is the expectation for producer count growth? - Management expects consistent producer count growth, focusing on quality and strategic geographic expansion [46] Question: Why is there a wide range in the full-year outlook? - The wide range is due to the variability of contingent commissions and the unpredictable nature of the market [66] Question: How will the digital agent impact future growth? - The digital agent is expected to allow the company to penetrate additional markets and significantly increase total written premium growth [68]