Goosehead Insurance (GSHD) investor relations material

Executive summary

• Total revenue for Q2 2025 grew 20% year-over-year to $94M, with core revenue up 18% to $86.8M and total written premiums up 18% to $1.2B.

• Adjusted EBITDA rose 18% to $29.2M (31% margin), while net income declined 24% to $8.3M due to higher expenses and a $4.7M impairment charge.

• Corporate agent headcount increased 53% to 479, franchise producers rose 5%, and policies in force grew 13% to 1.8M.

• Strategic investments in technology, AI, and partnerships drove growth and are expected to further improve margins and scalability.

• New enterprise sales and partnerships, including agreements with Baird & Warner and Fay Servicing, are expected to drive future growth but are not yet included in current guidance.

Financial highlights

• Q2 2025 revenue was $94M (+20% YoY); adjusted EBITDA was $29.2M (+18% YoY) with a 31% margin.

• Net income margin was 9%, down from 14% YoY; adjusted EPS was $0.49, up 14% YoY.

• Operating expenses rose to $78.4M, driven by investments in personnel and technology.

• Cash and cash equivalents at quarter end were $92.4M; net cash from operating activities for six months was $44.4M (+$13.5M YoY).

• Contingent commissions doubled to $4.5M; cost recovery revenue was $1.4M.

Outlook and guidance

• 2025 revenue guidance is $350M–$385M (11–22% growth); premium guidance is $4.38B–$4.65B (15–22% growth), revised for near-term moderation.

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

• Client retention is steady at 84%, with improvement expected in the second half of the year.

• New partnerships and direct-to-consumer initiatives are not yet included in current year guidance.