Goosehead Insurance (GSHD) investor relations material

Executive summary

• Q3 2025 revenue grew 16% year-over-year to $90.4M, with net income up slightly to $12.7M and Adjusted EBITDA up 14% to $29.7M; core revenue rose 14% to $83.9M.

• Policies in force increased 13% to 1,853,000, and total written premiums rose 15% to $1.2B.

• Strategic focus on franchise expansion, technology investment, and new partnerships, including a top 20 mortgage originator.

• Digital agent technology and AI initiatives are central to future scalability and margin expansion.

• Franchise and corporate sales headcount increased, while total operating franchises declined 4% to 1,068, reflecting intentional consolidation for higher productivity.

Financial highlights

• Q3 2025 total revenue: $90.4M (+16% YoY); core revenue: $83.9M (+14% YoY); net income: $12.7M; Adjusted EBITDA: $29.7M (+14% YoY); margin: 33%.

• Policies in force: 1.85M (+13% YoY); total written premium: $1.2B (+15% YoY); franchise premiums up 18%, corporate premiums up 1%.

• Adjusted EPS for Q3: $0.46; basic and diluted EPS: $0.31 and $0.29, respectively.

• Cash and equivalents: $51.6M; total debt: $299M; $75M undrawn on revolving credit facility.

• Contingent commissions rose 82% to $4.5M; ancillary revenue up 74% to $5.0M.

Outlook and guidance

• 2025 revenue guidance: $350M–$385M (organic growth 11%–22%); written premiums expected at $4.38B–$4.65B (organic growth 15%–22%).

• Digital agent investments of $25M–$35M annually in 2026–2027, with revenue contributions expected in H2 2026 and acceleration in 2027.

• Anticipates 40%+ total written premium growth within five years via digital agent and partnerships.

• Management expects continued growth in core revenue and policies in force, driven by increased agent headcount and franchise productivity.

• Cautions that carrier capacity constraints and catastrophic events could impact new business and renewal revenue growth.