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Goosehead Insurance, Inc. Announces Fourth Quarter and Full Year 2024 Results

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Goosehead Insurance (NASDAQ: GSHD) reported strong financial results for Q4 and full year 2024. Total revenue increased 20% to $314.5 million for the year, while core revenue grew 17% to $273.7 million. The company's total written premium saw a significant increase of 29% to $3.8 billion in 2024.

Fourth quarter performance was particularly strong, with total revenues growing 49% to $93.9 million and net income reaching $23.8 million, up from $5.4 million in the prior year. EPS increased 300% to $0.60 per share, while adjusted EPS grew 182% to $0.79. The company maintained a healthy client retention rate of 84% and grew its policies in force by 13% to approximately 1,674,000.

Looking ahead to 2025, Goosehead expects total written premiums between $4.65 billion and $4.88 billion, representing 22-28% organic growth, and total revenues between $350 million and $385 million, indicating 11-22% organic growth.

Goosehead Insurance (NASDAQ: GSHD) ha riportato risultati finanziari solidi per il quarto trimestre e l'intero anno 2024. Il fatturato totale è aumentato del 20% a 314,5 milioni di dollari per l'anno, mentre il fatturato principale è cresciuto del 17% a 273,7 milioni di dollari. Il premio totale scritto dalla compagnia ha visto un significativo aumento del 29% a 3,8 miliardi di dollari nel 2024.

Le performance del quarto trimestre sono state particolarmente forti, con entrate totali in crescita del 49% a 93,9 milioni di dollari e un reddito netto che ha raggiunto i 23,8 milioni di dollari, in aumento rispetto ai 5,4 milioni dell'anno precedente. L'EPS è aumentato del 300% a 0,60 dollari per azione, mentre l'EPS rettificato è cresciuto del 182% a 0,79 dollari. L'azienda ha mantenuto un tasso di retention dei clienti sano dell'84% e ha aumentato le sue polizze attive del 13% a circa 1.674.000.

Guardando avanti al 2025, Goosehead prevede premi totali scritti tra 4,65 miliardi e 4,88 miliardi di dollari, rappresentando una crescita organica del 22-28%, e ricavi totali tra 350 milioni e 385 milioni di dollari, indicando una crescita organica dell'11-22%.

Goosehead Insurance (NASDAQ: GSHD) reportó resultados financieros sólidos para el cuarto trimestre y el año completo 2024. Los ingresos totales aumentaron un 20% a 314,5 millones de dólares para el año, mientras que los ingresos principales crecieron un 17% a 273,7 millones de dólares. El total de primas escritas de la compañía vio un aumento significativo del 29% a 3,8 mil millones de dólares en 2024.

El desempeño del cuarto trimestre fue particularmente fuerte, con ingresos totales creciendo un 49% a 93,9 millones de dólares y un ingreso neto alcanzando los 23,8 millones de dólares, en comparación con los 5,4 millones del año anterior. El EPS aumentó un 300% a 0,60 dólares por acción, mientras que el EPS ajustado creció un 182% a 0,79 dólares. La compañía mantuvo una tasa saludable de retención de clientes del 84% y aumentó sus pólizas activas en un 13% a aproximadamente 1.674.000.

Mirando hacia 2025, Goosehead espera que las primas totales escritas estén entre 4,65 mil millones y 4,88 mil millones de dólares, representando un crecimiento orgánico del 22-28%, y los ingresos totales entre 350 millones y 385 millones de dólares, indicando un crecimiento orgánico del 11-22%.

구스헤드 보험 (NASDAQ: GSHD)는 2024년 4분기 및 전체 연도에 대한 강력한 재무 결과를 보고했습니다. 총 수익은 20% 증가하여 3억 1,450만 달러에 달했습니다. 연간 기준으로 핵심 수익은 17% 증가하여 2억 7,370만 달러에 달했습니다. 회사의 총 보험료는 2024년에 29% 증가하여 38억 달러에 도달했습니다.

4분기 실적은 특히 강력하여, 총 수익이 49% 증가하여 9,390만 달러에 달했습니다. 순이익은 2380만 달러에 도달했으며, 이는 전년도 540만 달러에서 증가한 수치입니다. 주당순이익(EPS)은 300% 증가하여 주당 0.60달러에 도달했으며, 조정 주당순이익(EPS)은 182% 증가하여 0.79달러에 달했습니다. 회사는 84%의 건강한 고객 유지율을 유지했으며, 활성 정책 수는 13% 증가하여 약 1,674,000건에 달했습니다.

2025년을 바라보며, 구스헤드는 총 보험료가 46억 5천만 달러에서 48억 8천만 달러 사이에 이를 것으로 예상하며, 이는 22-28%의 유기적 성장을 나타내고, 총 수익은 3억 5천만 달러에서 3억 8천 5백만 달러 사이로 예상되며, 이는 11-22%의 유기적 성장을 나타냅니다.

Goosehead Insurance (NASDAQ: GSHD) a annoncé de solides résultats financiers pour le quatrième trimestre et l'année complète 2024. Le chiffre d'affaires total a augmenté de 20% pour atteindre 314,5 millions de dollars pour l'année, tandis que le chiffre d'affaires principal a crû de 17% pour atteindre 273,7 millions de dollars. Le total des primes souscrites de la société a connu une augmentation significative de 29% pour atteindre 3,8 milliards de dollars en 2024.

Les performances du quatrième trimestre ont été particulièrement solides, avec des revenus totaux en hausse de 49% à 93,9 millions de dollars et un revenu net atteignant 23,8 millions de dollars, contre 5,4 millions de dollars l'année précédente. Le BPA a augmenté de 300% pour atteindre 0,60 dollar par action, tandis que le BPA ajusté a crû de 182% pour atteindre 0,79 dollar. L'entreprise a maintenu un taux de fidélisation des clients sain de 84% et a augmenté ses polices en vigueur de 13% pour atteindre environ 1 674 000.

En regardant vers 2025, Goosehead s'attend à ce que les primes souscrites totales se situent entre 4,65 milliards et 4,88 milliards de dollars, représentant une croissance organique de 22 à 28%, et des revenus totaux entre 350 millions et 385 millions de dollars, indiquant une croissance organique de 11 à 22%.

Goosehead Insurance (NASDAQ: GSHD) hat starke finanzielle Ergebnisse für das 4. Quartal und das gesamte Jahr 2024 gemeldet. Der Gesamtumsatz stieg um 20% auf 314,5 Millionen Dollar für das Jahr, während der Kernumsatz um 17% auf 273,7 Millionen Dollar wuchs. Die gesamt geschriebene Prämie des Unternehmens verzeichnete einen signifikanten Anstieg von 29% auf 3,8 Milliarden Dollar im Jahr 2024.

Die Leistung im vierten Quartal war besonders stark, mit Gesamtumsätzen, die um 49% auf 93,9 Millionen Dollar wuchsen und einem Nettogewinn von 23,8 Millionen Dollar, ein Anstieg von 5,4 Millionen Dollar im Vorjahr. Der EPS stieg um 300% auf 0,60 Dollar pro Aktie, während der bereinigte EPS um 182% auf 0,79 Dollar wuchs. Das Unternehmen hielt eine gesunde Kundenbindungsrate von 84% und erhöhte seine aktiven Policen um 13% auf etwa 1.674.000.

Für 2025 erwartet Goosehead geschriebene Prämien zwischen 4,65 Milliarden und 4,88 Milliarden Dollar, was ein organisches Wachstum von 22-28% darstellt, und Gesamtumsätze zwischen 350 Millionen und 385 Millionen Dollar, was ein organisches Wachstum von 11-22% anzeigt.

Positive
  • Total revenue increased 20% YoY to $314.5 million
  • Net income grew 107% to $49.1 million in 2024
  • Total written premiums increased 29% to $3.8 billion
  • Q4 net income margin improved to 25%
  • Client retention rate maintained at 84%
  • Franchise productivity up 49%
  • Adjusted EBITDA grew 43% to $99.9 million
Negative
  • Policies in force growth slowed to 13% YoY
  • Lower end of 2025 revenue guidance suggests potential growth deceleration to 11%

Insights

Goosehead Insurance's 2024 performance reveals a company executing effectively on multiple fronts. The 700 basis point improvement in net income margin to 16% and 500 basis point expansion in Adjusted EBITDA margin to 32% demonstrate significant operational leverage, particularly impressive given the challenging insurance market conditions.

The 49% increase in franchise productivity, coupled with 7% franchise producer growth, indicates successful scaling of the business model. This efficiency improvement is important as it suggests better unit economics and validates the company's investment in technology and training. The retention rate of 84% reflects strong client satisfaction and provides a stable revenue base.

The company's financial restructuring through the new $375 million credit facility ($300 million term loan plus $75 million revolving credit) extends debt maturities to 2030-2032, providing enhanced operational flexibility. The special distribution of $175 million and dividend of $146 million demonstrate strong cash generation capabilities while maintaining a healthy balance sheet with $58 million in cash.

The 2025 guidance of $4.65-4.88 billion in written premiums suggests management's confidence in maintaining growth momentum despite market headwinds. The projected revenue growth of 11-22% indicates potential margin expansion as the company leverages its technological investments and improved producer productivity.

– Total Revenue Increased 20% for the year to $314.5 million –
– Core Revenue Grew 17% for the year to $273.7 million –
– Total Written Premium in 2024 Increased 29% to $3.8 billion –
– 2024 Net Income of $49.1 million versus $23.7 million in 2023 –
– Adjusted EBITDA in 2024 up 43% to $99.9 million –

WESTLAKE, Texas, Feb. 24, 2025 (GLOBE NEWSWIRE) -- Goosehead Insurance, Inc. (“Goosehead” or the “Company”) (NASDAQ: GSHD), a rapidly growing independent personal lines insurance agency, today announced results for the fourth quarter and year ended December 31, 2024.

Fourth Quarter 2024 Highlights

  • Total Revenues grew 49% over the prior-year period to $93.9 million in the fourth quarter of 2024
  • Fourth quarter Core Revenues* of $68.0 million increased 19% over the prior-year period
  • Fourth quarter net income of $23.8 million improved from net income of $5.4 million a year ago. EPS of $0.60 per share increased 300% and adjusted EPS* of $0.79 per share increased 182%, over the prior-year period
  • Net income margin for the fourth quarter was 25%
  • Adjusted EBITDA* of $37.4 million increased 164% from $14.1 million in the prior-year period
  • Adjusted EBITDA Margin* increased 17 percentage points over the prior-year period to 40%
  • Total written premiums placed for the fourth quarter increased 28% over the prior-year period to $965.6 million
  • Policies in force grew 13% from the prior-year period to approximately 1,674,000

*Core Revenue, Adjusted EPS, Adjusted EBITDA, and Adjusted EBITDA Margin are non-GAAP measures. Reconciliations of Core Revenue to total revenues, Adjusted EPS to basic earnings per share and Adjusted EBITDA to net income, the most directly comparable financial measures presented in accordance with GAAP, are set forth in the reconciliation table accompanying this release.

“We had an outstanding 2024 in the face of significant macro headwinds. For the full year premium growth was 29%, total revenue increased 20%, core revenue was up 17%, net income grew 107% to $49.1 million and Adjusted EBITDA grew 43% to $99.9 million, with net income margin of 16% up 700 basis points and Adjusted EBITDA Margin of 32% up 500 basis points,” stated Mark K Miller, President and CEO. “I am pleased we began to demonstrate growth re-acceleration in a number of key performance indicators including policies in force were up 13%. Our producer base is healthier than ever as franchise productivity was up 49%, coupled with franchise producer growth of 7%. Loss activity and insurance market challenges in 2024 and the start of 2025 have further highlighted the importance of appropriate personal lines coverage, as well as the value we bring to clients, agents and carriers. We are encouraged to be seeing signs of gradual improvement in the product market. I couldn’t be more excited for what lies ahead as we continue to invest in people and technology. This further expands our competitive moat as we progress on our journey to becoming the largest distributor of personal lines in the US.” 

Fourth Quarter 2024 Results
For the fourth quarter of 2024, revenues were $93.9 million, an increase of 49% compared to the corresponding period in 2023. Core Revenues, a non-GAAP measure which excludes contingent commissions, initial franchise fees, interest income, and other income, were $68.0 million, a 19% increase from $56.9 million in the prior-year period. Core Revenues are the most reliable revenue stream for the Company, consisting of New Business Commissions, Agency Fees, New Business Royalty Fees, Renewal Commissions, and Renewal Royalty Fees. Core Revenue growth was primarily driven by strong client retention of 84% and rising premium rates as well as increases in both the number of corporate agents and productivity per agency. The Company grew total written premiums, which we consider to be the leading indicator of future revenue growth, by 28% in the fourth quarter compared to the corresponding period in prior year.

Total operating expenses, excluding equity-based compensation, depreciation and amortization and impairment expenses, for the fourth quarter of 2024 were $56.5 million, up 16% from $48.9 million in the prior-year period. The increase from the prior period was primarily due to increased employee compensation and benefits expenses related to investments in corporate producers, technology, and service functions. General and administrative expenses, excluding impairment, increased to $17.8 million from $14.1 million primarily due to investments in technology and systems to drive growth and continue to improve the client experience. Equity-based compensation increased to $6.9 million for the period, compared to $5.0 million a year ago. Bad debt expense of $0.6 million decreased from $1.0 million a year ago.

Net income in the fourth quarter of 2024 was $23.8 million versus net income of $5.4 million a year ago, with the improvement primarily due to strong revenue growth and expense discipline. Earnings per share and Net Income Margin for the fourth quarter of 2024 were $0.60 and 25%, respectively. Adjusted EPS for the fourth quarter of 2024, which excludes equity-based compensation and impairment expense, was $0.79 per share. Total Adjusted EBITDA was $37.4 million for the fourth quarter of 2024 compared to $14.1 million in the prior-year period. Adjusted EBITDA Margin of 40% was up 17 percentage points in the quarter.

Liquidity and Capital Resources
As of December 31, 2024, the Company had cash and cash equivalents of $58.0 million. We had an unused line of credit of $74.8 million as of December 31, 2024. Total outstanding term note payable balance was $93.1 million as of December 31, 2024.

On January 8, 2025, the Company entered into a credit agreement (the "2025 Credit Agreement") providing for an aggregate $300 million term notes payable (the "2025 Initial Term Loan") and $75 million revolving credit facility (the "2025 Revolving Credit Facility"). The 2025 Initial Term Loan matures on January 8, 2032 and the 2025 Revolving Credit Facility matures on January 8, 2030. This credit agreement replaces the existing Second Amended and Restated Credit Agreement, dated July 21, 2021, which was repaid with the proceeds of the 2025 Initial Term Loan and terminated.

On January 9, 2025, Goosehead Financial, LLC (“GF”) declared a special distribution of $175 million, which was paid in cash on January 31, 2025 to holders of record of LLC Units, including to GSHD, as of the close of business on January 21, 2025. The special distribution resulted in a payment of $59 million to our non-controlling interest holders. On January 9, 2025, the board of directors of the Company declared a one-time special cash dividend of $5.91 to all holders of Class A common stock of GSHD as of the close of business on January 21, 2025, which was paid in cash on January 31, 2025 for a total of $146 million. $1.22 of the special cash dividend was funded by cash received by GSHD from prior tax distributions from GF that are in excess of the corporate income taxes payable by GSHD. The remaining $4.69 of the special dividend was funded by the cash received by the Company from the special distribution by GF.

2025 Outlook
Our guidance for the full year 2025 is as follows:

  • Total written premiums placed are expected to be between $4.65 billion and $4.88 billion representing 22% organic growth on the low end of the range, and 28% organic growth on the high end of the range.
  • Total revenues are expected to be between $350 million and $385 million representing 11% organic growth on the low end of the range and 22% organic growth on the high end of the range.

Conference Call Information
Goosehead will host a conference call and webcast today at 4:30 PM ET to discuss these results.

To access the call by phone, participants should go to this link (registration link), and you will be provided with the dial in details.

In addition, a live webcast of the conference call will also be available on Goosehead’s investor relations website at http://ir.goosehead.com.

A webcast replay of the call will be available at http://ir.goosehead.com for one year following the call.

About Goosehead

Goosehead (NASDAQ: GSHD) is a rapidly growing and innovative independent personal lines insurance agency that distributes its products and services through corporate and franchise locations throughout the United States. Goosehead was founded on the premise that the consumer should be at the center of our universe and that everything we do should be directed at providing extraordinary value by offering broad product choice and a world-class service experience. Goosehead represents over 200 insurance companies that underwrite personal and commercial lines. For more information, please visit goosehead.com or goosehead.com/become-a-franchisee.

Forward-Looking Statements

This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which represent Goosehead’s expectations or beliefs concerning future events. Forward-looking statements are statements other than historical facts and may include statements that address future operating, financial or business performance or Goosehead’s strategies or expectations. In some cases, you can identify these statements by forward-looking words such as “may”, “might”, “will”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, “outlook” or “continue”, or the negative of these terms or other comparable terminology. Forward-looking statements are based on management’s current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements.

Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, conditions impacting insurance carriers or other parties with which Goosehead does business, the loss of one or more key executives or an inability to attract and retain qualified personnel and the failure to attract and retain highly qualified franchisees. These risks and uncertainties also include, but are not limited to, those described under the captions “1A. Risk Factors” in Goosehead’s Annual Report on Form 10-K for the year ended December 31, 2024 and in Goosehead’s other filings with the SEC, which are available free of charge on the Securities Exchange Commission's website at: www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All forward-looking statements and all subsequent written and oral forward-looking statements attributable to Goosehead or to persons acting on behalf of Goosehead are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and Goosehead does not undertake any obligation to update them in light of new information, future developments or otherwise, except as may be required under applicable law.

Contacts
Investor Contact:
Dan Farrell
Goosehead Insurance - VP Capital Markets
Phone: (214) 838-5290
Email: dan.farrell@goosehead.com; IR@goosehead.com 

PR Contact:
Mission North for Goosehead Insurance
Email: goosehead@missionnorth.com; PR@goosehead.com

Goosehead Insurance, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)

  Three Months
Ended December 31,		 Twelve Months
Ended December 31,
   2024   2023   2024   2023 
Revenues:        
Commissions and agency fees $50,277  $27,424  $139,059  $116,061 
Franchise revenues  43,438   35,282   174,514   143,772 
Interest income  207   308   932   1,443 
Total revenues  93,922   63,014   314,505   261,276 
Operating Expenses:        
Employee compensation and benefits  45,044   38,803   172,942   152,604 
General and administrative expenses  17,833   14,092   67,069   62,111 
Bad debts  556   1,009   2,901   4,361 
Depreciation and amortization  2,639   2,427   10,453   9,244 
Total operating expenses  66,072   56,331   253,365   228,320 
Income from operations  27,850   6,683   61,140   32,956 
Other Income:        
Interest expense  (1,810)  (1,511)  (7,339)  (6,568)
Other income (expense)  (1,359)  —   (7,101)  — 
Income before taxes  24,681   5,172   46,700   26,388 
Tax expense (benefit)  859   (252)  (2,413)  2,692 
Net Income  23,822   5,423   49,113   23,696 
Less: net income attributable to non-controlling interests  8,968   1,803   18,688   9,556 
Net Income attributable to Goosehead Insurance, Inc. $14,855  $3,620  $30,425  $14,140 
Earnings per share:        
Basic $0.60  $0.15  $1.23  $0.59 
Diluted $0.57  $0.14  $1.15  $0.55 
Weighted average shares of Class A common stock outstanding:        
Basic  24,562   24,688   24,657   23,929 
Diluted  38,399   25,516   38,301   38,356 
                 


Goosehead Insurance, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)

  Three Months
Ended December 31,		 Twelve Months
Ended December 31,
   2024   2023   2024   2023 
Revenues:        
Core Revenue:        
Renewal Commissions(1) $18,171  $17,335  $74,938  $70,730 
Renewal Royalty Fees(2)  34,990   27,180   138,942   107,524 
New Business Commissions(1)  5,997   5,512   24,608   23,411 
New Business Royalty Fees(2)  6,725   5,349   27,122   23,168 
Agency Fees(1)  2,091   1,532   8,127   8,174 
Total Core Revenue  67,974   56,908   273,737   233,007 
Cost Recovery Revenue:        
Initial Franchise Fees(2)  1,332   2,458   6,620   11,238 
Interest Income  207   308   932   1,443 
Total Cost Recovery Revenue  1,539   2,766   7,552   12,681 
Ancillary Revenue:        
Contingent Commissions(1)  24,018   3,045   31,385   13,746 
Other Franchise Revenues(2)  391   296   1,831   1,843 
Total Ancillary Revenue  24,409   3,340   33,216   15,588 
Total Revenues  93,922   63,014   314,505   261,276 
Operating Expenses:        
Employee compensation and benefits, excluding equity-based compensation  38,155   33,765   144,971   128,615 
General and administrative expenses, excluding impairment  17,833   14,092   66,723   58,483 
Bad debts  556   1,009   2,901   4,361 
Total  56,544   48,866   214,594   191,459 
Adjusted EBITDA  37,378   14,148   99,911   69,817 
Adjusted EBITDA Margin  40%  22%  32%  27%
         
Interest expense  (1,810)  (1,511)  (7,339)  (6,568)
Depreciation and amortization  (2,639)  (2,427)  (10,453)  (9,244)
Tax (expense) benefit  (859)  252   2,413   (2,692)
Equity-based compensation  (6,889)  (5,038)  (27,971)  (23,989)
Impairment expense  —   —   (347)  (3,628)
Other Income (expense)  (1,359)  —   (7,101)  — 
Net Income $23,822  $5,423  $49,113  $23,696 
Net Income Margin  25%  9%  16%  9%

(1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in "Commissions and agency fees" as shown on the Consolidated Statements of Operations within Goosehead’s Form 10-K for the twelve months ended December 31, 2024 and 2023.
(2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, and Other Franchise Revenues are included in "Franchise revenues" as shown on the Consolidated Statements of Operations within Goosehead’s Form 10-K for the twelve months ended December 31, 2024 and 2023.


Goosehead Insurance, Inc.
Consolidated Balance Sheets
(Unaudited) 
(In thousands, except par value amounts)

  December 31,
   2024  2023
Assets    
Current Assets:    
Cash and cash equivalents $54,280 $41,956
Restricted cash  3,693  2,091
Commissions and agency fees receivable, net  31,375  12,903
Receivable from franchisees, net  11,077  9,720
Prepaid expenses  8,139  7,889
Total current assets  108,564  74,559
Receivable from franchisees, net of current portion  3,469  9,269
Property and equipment, net of accumulated depreciation  24,101  30,316
Right-of-use asset  37,420  38,406
Intangible assets, net of accumulated amortization  25,075  17,266
Deferred income taxes, net  193,478  181,209
Other assets  5,546  3,867
Total assets $397,653 $354,892
Liabilities and Stockholders’ Equity    
Current Liabilities:    
Accounts payable and accrued expenses $22,894 $16,398
Premiums payable  3,693  2,091
Lease liability  6,535  8,897
Contract liabilities  3,275  4,129
Note payable  10,063  9,375
Total current liabilities  46,460  40,890
Lease liability, net of current portion  54,536  57,382
Note payable, net of current portion  82,251  67,562
Contract liabilities, net of current portion  15,191  22,970
Liabilities under tax receivable agreement  160,142  149,302
Total liabilities  358,580  338,106
Total equity  39,073  16,786
Total liabilities and equity $397,653 $354,892


Goosehead Insurance, Inc.
Reconciliation Non-GAAP Measures to GAAP

This release includes Core Revenue, Cost Recovery Revenue, Ancillary Revenue, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EPS that are not required by, nor presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). The Company refers to these measures as “non-GAAP financial measures.” The Company uses these non-GAAP financial measures when planning, monitoring and evaluating its performance and considers these non-GAAP financial measures to be useful metrics for management and investors to facilitate operating performance comparisons from period to period by excluding potential differences caused by variations in capital structures, tax position, depreciation, amortization and certain other items that the Company believes are not representative of its core business. The Company uses Core Revenue, Cost Recovery Revenue, Ancillary Revenue, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted EPS for business planning purposes and in measuring its performance relative to that of its competitors.

These non-GAAP financial measures are defined by the Company as follows:

  • "Core Revenue" is a supplemental measure of our performance and includes Renewal Commissions, Renewal Royalty Fees, New Business Commissions, New Business Royalty Fees, and Agency Fees. We believe that Core Revenue is an appropriate measure of operating performance because it summarizes all of our revenues from sales of individual insurance policies.
  • "Cost Recovery Revenue" is a supplemental measure of our performance and includes Initial Franchise Fees and Interest Income. We believe that Cost Recovery Revenue is an appropriate measure of operating performance because it summarizes revenues that are viewed by management as cost recovery mechanisms.
  • "Ancillary Revenue" is a supplemental measure of our performance and includes Contingent Commissions and Other Income. We believe that Ancillary Revenue is an appropriate measure of operating performance because it summarizes revenues that are ancillary to our core business.
  • "Adjusted EBITDA" is a supplemental measure of the Company's performance. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of items that do not relate to business performance. Adjusted EBITDA is defined as net income (the most directly comparable GAAP measure) before interest, income taxes, depreciation and amortization, adjusted to exclude equity-based compensation, impairment expense, and other non-operating items, including, among other things, certain non-cash charges and certain non-recurring or non-operating gains or losses.
  • "Adjusted EBITDA Margin" is Adjusted EBITDA as defined above, divided by total revenue. Adjusted EBITDA Margin is helpful in measuring profitability of operations on a consolidated level.
  • "Adjusted EPS" is a supplemental measure of our performance, defined as earnings per share (the most directly comparable GAAP measure) before non-recurring or non-operating income and expenses. Adjusted EPS is a useful measure to management because it eliminates the impact of items that do not relate to business performance and helps measure our profitability on a consolidated level.

While the Company believes that these non-GAAP financial measures are useful in evaluating its business, this information should be considered as supplemental in nature and is not meant as a substitute for revenues, net income, or earnings per share, in each case as recognized in accordance with GAAP. In addition, other companies, including companies in the Company’s industry, may calculate such measures differently, which reduces their usefulness as comparative measures.

The following tables show a reconciliation from total revenues to Core Revenue, Cost Recovery Revenue, and Ancillary Revenue (non-GAAP basis) for the three and twelve months ended December 31, 2024 and 2023 (in thousands):

 Three Months
Ended December 31,		 Twelve Months
Ended December 31,
  2024  2023  2024  2023
Total Revenues$93,922 $63,014 $314,505 $261,276
        
Core Revenue:       
Renewal Commissions(1)$18,171 $17,335 $74,938 $70,730
Renewal Royalty Fees(2) 34,990  27,180  138,942  107,524
New Business Commissions(1) 5,997  5,512  24,608  23,411
New Business Royalty Fees(2) 6,725  5,349  27,122  23,168
Agency Fees(1) 2,091  1,532  8,127  8,174
Total Core Revenue 67,974  56,908  273,737  233,007
Cost Recovery Revenue:       
Initial Franchise Fees(2) 1,332  2,458  6,620  11,238
Interest Income 207  308  932  1,443
Total Cost Recovery Revenue 1,539  2,766  7,552  12,681
Ancillary Revenue:       
Contingent Commissions(1) 24,018  3,045  31,385  13,746
Other Franchise Revenues(2) 391  296  1,831  1,843
Total Ancillary Revenue 24,409  3,340  33,216  15,588
Total Revenues$93,922 $63,014 $314,505 $261,276

(1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in "Commissions and agency fees" as shown on the Consolidated Statements of Operations.
(2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, and Other Franchise Revenues are included in "Franchise revenues" as shown on the Consolidated Statements of Operations.


The following tables show a reconciliation from net income to Adjusted EBITDA and Adjusted EBITDA Margin (non-GAAP basis) for the three and twelve months ended December 31, 2024 and 2023 (in thousands):

  Three Months
Ended December 31,		 Twelve Months
Ended December 31,
   2024   2023   2024   2023 
Net Income $23,822  $5,423  $49,113  $23,696 
Interest expense  1,810   1,511   7,339   6,568 
Depreciation and amortization  2,639   2,427   10,453   9,244 
Tax expense (benefit)  859   (252)  (2,413)  2,692 
Equity-based compensation  6,889   5,038   27,971   23,989 
Impairment expense  —   —   347   3,628 
Other (income) expense  1,359   —   7,101   — 
Adjusted EBITDA $37,378  $14,148  $99,911  $69,817 
Net Income Margin(1)  25%  9%  16%  9%
Adjusted EBITDA Margin(2)  40%  22%  32%  27%

(1) Net Income Margin is calculated as Net Income divided by Total Revenue ($23,822/$93,922) and ($5,423/$63,014) for the three months ended December 31, 2024 and 2023. Net Income Margin is calculated as Net Income divided by Total Revenue ($49,113/$314,505) and ($23,696/$261,276) for the twelve months ended December 31, 2024 and 2023
(2) Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue ($37,378/$93,922), and ($14,148/$63,014) for the three months ended December 31, 2024 and 2023, respectively. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue ($99,911/$314,505), and ($69,817/$261,276) for the twelve months ended December 31, 2024 and 2023.


The following tables show a reconciliation from basic earnings per share to Adjusted EPS (non-GAAP basis) for the three and twelve months ended December 31, 2024 and 2023. Note that totals may not sum due to rounding:

  Three Months
Ended December 31,		 Twelve Months
Ended December 31,
   2024  2023  2024  2023
Earnings per share - basic (GAAP) $0.60 $0.15 $1.23 $0.59
Add: equity-based compensation(1)  0.19  0.13  0.75  0.64
Add: impairment expense(2)  —  —  0.01  0.10
Adjusted EPS (non-GAAP) $0.79 $0.28 $1.99 $1.33

(1) Calculated as equity-based compensation divided by sum of weighted average Class A and Class B shares [$6.9 million/(24.6 million + 12.7 million)] for the three months ended December 31, 2024 and [$5.0 million/ (24.7 million + 13.2 million)] for the three months ended December 31, 2023. Calculated as equity-based compensation divided by sum of weighted average Class A and Class B shares [$28.0 million/(24.7 million + 12.7 million)] for the twelve months ended December 31, 2024 and [$24.0 million/ (23.9 million + 13.8 million)] for the twelve months ended December 31, 2023.
(2) Calculated as impairment expense divided by sum of weighted average Class A and Class B shares [$0.3 million/(24.7 million + 12.7 million)] for the twelve months ended December 31, 2024 and [$3.6 million/ (23.9 million + 13.8 million)] for the twelve months ended December 31, 2023. No impairment was recorded for the three months ended December 31, 2024 nor the three months ended December 31, 2023.


Goosehead Insurance, Inc.
Key Performance Indicators

  December 31, 2024 December 31, 2023
Corporate sales agents < 1 year tenured  253   135 
Corporate sales agents > 1 year tenured  164   165 
Operating franchises < 1 year tenured  90   183 
Operating franchises > 1 year tenured  1,013   1,043 
Total Franchise Producers  2,092   1,957 
QTD Corporate Agent Productivity < 1 Year (1) $12,787  $13,789 
QTD Corporate Agent Productivity > 1 Year (1) $26,788  $25,738 
QTD Franchise Productivity < 1 Year (2) $17,861  $10,975 
QTD Franchise Productivity > 1 Year (2) $29,089  $21,103 
Policies in Force  1,674,000   1,486,000 
Client Retention  84%  86%
Premium Retention  98%  101%
QTD Written Premium (in thousands) $965,596  $756,082 
Net Promoter Score ("NPS")  89   92 

(1) - Corporate Productivity is New Business Production per Agent (Corporate): The New Business Revenue collected related to corporate sales, divided by the average number of full-time corporate sales agents for the same period. This calculation excludes interns, part-time sales agents and partial full-time equivalent sales managers.
(2) - Franchise Productivity is New Business Production per Agency: The gross commissions paid by Carriers and Agency Fees received related to policies in their first term sold by franchise sales agents, divided by the average number of franchises for the same period, prior to paying Royalty Fees to the Company.


FAQ

What was Goosehead Insurance's (GSHD) revenue growth in 2024?

Goosehead Insurance's total revenue grew 20% to $314.5 million in 2024, with core revenue increasing 17% to $273.7 million.

How much did GSHD's written premiums increase in 2024?

GSHD's total written premiums increased 29% to $3.8 billion in 2024.

What is GSHD's revenue guidance for 2025?

GSHD expects total revenues between $350 million and $385 million in 2025, representing 11-22% organic growth.

How did GSHD's Q4 2024 earnings compare to Q4 2023?

GSHD's Q4 2024 net income improved to $23.8 million from $5.4 million in Q4 2023, with EPS increasing 300% to $0.60 per share.

What was GSHD's client retention rate in 2024?

GSHD maintained a client retention rate of 84% in 2024.

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Goosehead Insura

NASDAQ:GSHD

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Insurance - Diversified
Insurance Agents, Brokers & Service
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