Goosehead Insurance (GSHD) Q1 2025 earnings summary

Executive summary

• Total revenue grew 17% year-over-year to $75.6 million in Q1 2025, with adjusted EBITDA up 32% to $15.5 million (21% margin), and net income rising to $2.6 million (4% margin).

• Written premiums increased 22% to $1.0 billion, with policies in force up 13% to 1,729,000.

• Franchise network expanded with 36 new launches across 16 states, franchise producers up 7% to 2,097, and corporate agent headcount up 46% to 426.

• Strategic focus on quality franchisees, geographic dispersion, and leveraging technology and AI for operational efficiency, including new mobile app rollout.

• Client retention steady at 84%, with improvements expected as pricing stabilizes.

Financial highlights

• Core revenue up 17% to $69.1 million; renewal revenue up 20% to $54.2 million; new business revenue up 8% to $14.9 million.

• Franchise premiums grew 27% to $824 million; corporate premiums increased 5% to $177 million.

• Adjusted EBITDA margin expanded to 21% from 18% year-over-year; adjusted EPS was $0.26.

• Cash flow from operations was $15.5 million, a 28% increase year-over-year; cash and equivalents at $70.2 million.

• Interest expense increased to $5.8 million due to higher borrowings.

Outlook and guidance

• Full-year 2025 revenue guidance reiterated at $350–$385 million, representing 11–22% growth.

• Written premiums expected between $4.65–$4.88 billion, up 22–28%.

• Management expects continued improvement in client retention and policies in force growth, but notes carrier capacity constraints and premium rate increases could impact new and renewal business.

• Liquidity remains strong, supported by cash, operations, and a $75 million undrawn credit facility.