# Goosehead Insurance, Inc. (GSHD)

Informational only - not investment advice.

CIK: 0001726978
SIC: 6411 Insurance Agents, Brokers & Service
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [SIC Major Group 64](/major-group/64/) > [SIC 6411 Insurance Agents, Brokers & Service](/industry/6411/)
Latest 10-K filed: 2026-02-19
SEC page: https://www.sec.gov/edgar/browse/?CIK=1726978
Filing source: https://www.sec.gov/Archives/edgar/data/1726978/000172697826000010/gshd-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-19 · accession 0001726978-26-000010 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001726978.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 365,304,000 USD | 2025 | verified |
| Net income | 27,831,000 USD | 2025 | verified |
| Assets | 414,864,000 USD | 2025 | verified |
| Free cash flow | 86,086,000 USD | 2025 | computed |
| Net margin | 7.62% | 2025 | computed |
| Operating margin | 20.38% | 2025 | computed |
| Revenue YoY | +16.15% | 2025 | computed |

Stockholders' equity was not positive at FY2025 year-end (-95,504,000 USD, as filed); ROE and liabilities / equity are omitted rather than computed.

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only).

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | GSHD | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 7.6% | 10.7% | 43 | 15 |
| Operating margin | 20.4% | 17.6% | 62 | 9 |
| Revenue growth | 16.2% | 8.3% | 79 | 15 |
| FCF margin | 23.6% | 14.0% | 100 | 13 |
| ROE | 69.3% | 13.5% | 93 | 15 |
| ROA | 6.7% | 3.8% | 64 | 15 |
| Liabilities / equity | 8.17 | 2.36 | 92 | 14 |
| Current ratio | 1.60 | 1.16 | 75 | 13 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6411 Insurance Agents, Brokers & Service, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 365304000 | USD | 2025 | 2026-02-19 |
| Net income | 27831000 | USD | 2025 | 2026-02-19 |
| Assets | 414864000 | USD | 2025 | 2026-02-19 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-19. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001726978.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 42,711,000 | 60,148,000 | 77,486,000 | 117,014,000 | 151,312,000 | 209,390,000 | 261,276,000 | 314,505,000 | 365,304,000 |
| Net income |  | 0.00 | -8,903,000 | 3,567,000 | 9,287,000 | 5,403,000 | 565,000 | 14,140,000 | 30,426,000 | 27,831,000 |
| Operating income |  | 7,611,000 | -13,930,000 | 14,073,000 | 19,940,000 | 8,673,000 | 10,128,000 | 32,956,000 | 61,140,000 | 74,449,000 |
| Diluted EPS |  |  | -0.66 | 0.22 | 0.51 | 0.26 | 0.03 | 0.55 | 1.16 | 1.04 |
| Operating cash flow |  | 13,542,000 | 10,275,000 | 21,241,000 | 24,643,000 | 35,444,000 | 36,033,000 | 50,833,000 | 71,544,000 | 91,757,000 |
| Capital expenditures |  | 6,216,000 | 2,096,000 | 3,694,000 | 9,975,000 | 12,738,000 | 10,130,000 | 4,452,000 | 979,000 | 5,671,000 |
| Dividends paid |  | 25,520,000 | 80,059,000 | 18,739,000 | 44,697,000 | 60,000,000 | 0.00 | 0.00 | 0.00 | 145,786,000 |
| Share buybacks |  |  |  |  |  |  | 0.00 | 0.00 | 63,184,000 | 81,720,000 |
| Assets |  | 16,706,000 | 34,798,000 | 64,628,000 | 185,837,000 | 270,291,000 | 321,353,000 | 354,892,000 | 397,653,000 | 414,864,000 |
| Liabilities |  | 57,839,000 | 60,001,000 | 95,635,000 | 224,241,000 | 339,479,000 | 354,977,000 | 338,106,000 | 358,577,000 | 577,652,000 |
| Stockholders' equity |  | -41,133,000 | -8,500,000 | -9,007,000 | -4,876,000 | -14,020,000 | 10,670,000 | 27,966,000 | 43,889,000 | -95,504,000 |
| Cash and cash equivalents | 3,778,000 | 4,948,000 | 18,635,000 | 14,337,000 | 24,913,000 | 28,526,000 | 28,743,000 | 41,956,000 | 54,280,000 | 34,390,000 |
| Free cash flow |  | 7,326,000 | 8,179,000 | 17,547,000 | 14,668,000 | 22,706,000 | 25,903,000 | 46,381,000 | 70,565,000 | 86,086,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | 0.00% | -14.80% | 4.60% | 7.94% | 3.57% | 0.27% | 5.41% | 9.67% | 7.62% |
| Operating margin |  | 17.82% | -23.16% | 18.16% | 17.04% | 5.73% | 4.84% | 12.61% | 19.44% | 20.38% |
| Return on equity |  |  |  |  |  |  | 5.30% | 50.56% | 69.32% |  |
| Return on assets |  | 0.00% | -25.58% | 5.52% | 5.00% | 2.00% | 0.18% | 3.98% | 7.65% | 6.71% |
| Liabilities / equity |  |  |  |  |  |  | 33.27 | 12.09 | 8.17 |  |
| Current ratio |  | 1.34 | 2.92 | 1.99 | 2.49 | 1.66 | 1.46 | 1.82 | 2.34 | 1.60 |

## As-reported value updates

2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/GSHD/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-23. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001726978.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q1 | 2022-03-31 |  |  | -0.11 | reported discrete quarter |
| 2022-Q2 | 2022-06-30 |  |  | 0.02 | reported discrete quarter |
| 2022-Q3 | 2022-09-30 |  |  | 0.09 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.00 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.15 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 71,030,000 | 6,934,000 | 0.28 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 63,014,000 | 3,621,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 64,460,000 | 1,814,000 | 0.05 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 78,088,000 | 6,198,000 | 0.24 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 78,035,000 | 7,559,000 | 0.29 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 93,922,000 | 14,855,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 75,583,000 | 2,342,000 | 0.09 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 94,027,000 | 5,150,000 | 0.18 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 90,435,000 | 7,908,000 | 0.29 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 105,258,000 | 12,431,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 93,076,000 | 4,889,000 |  | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 113,389,000 | 10,065,000 |  | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from GSHD's latest 10-K: [/company/GSHD/business/](/company/GSHD/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from GSHD's latest 10-K: [/company/GSHD/risk-factors/](/company/GSHD/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1726978/000172697826000060/gshd-20260630.htm

Extracted from a substantive MD&A body after the formal Item 2 span was a TOC or reference stub.
Confidence: high
Filing date: 2026-07-23
Report date: 2026-06-30

OVERVIEW

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and the related notes and other financial information included elsewhere in this Form 10-Q. In addition to historical financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties, and assumptions. Our actual results and timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those discussed under “Risk factors” and elsewhere in this report and in the Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

We are a rapidly growing personal lines independent insurance agency, reinventing the traditional approach to distributing personal lines products and services throughout the United States. We were founded with one vision in mind: to provide clients with superior insurance coverage at the best available price and in a timely manner. By leveraging our differentiated business model and innovative technology platform, we are able to deliver a superior insurance experience to our clients.

Financial Highlights for the Second Quarter of 2026:

•Total revenue increased 21% from the second quarter of 2025 to $113.4 million

•Core Revenue* increased by 10% from the second quarter of 2025 to $95.6 million

•Total Written Premiums placed increased 14% from the prior-year period to $1.34 billion

•Net income increased by $8.7 million from the second quarter of 2025 to $17.0 million, or 15% of total revenues

•Adjusted EBITDA* increased 30% from the second quarter of 2025 to $37.9 million, or 33% of total revenues

•Basic and diluted earnings per share were $0.42 and $0.41, respectively, and Adjusted EPS* was $0.64 per share for the three months ended June 30, 2026

•Policies in Force increased 15% from June 30, 2025 to approximately 2.1 million at June 30, 2026

•Corporate sales headcount increased 22% from June 30, 2025 to 583 at June 30, 2026

◦As of June 30, 2026, 323 of these Corporate sales agents had less than one year of tenure and 260 had greater than one year of tenure

•Total operating franchises decreased 16% from June 30, 2025 to 898 at June 30, 2026

◦As of June 30, 2026, 69 operating Franchisees had less than one year of tenure and 829 operating Franchisees had greater than one year of tenure

•Total Franchise agents increased 5% from June 30, 2025 to 2,190 at June 30, 2026

*Core Revenue, Adjusted EBITDA and Adjusted EPS are non-GAAP measures. Reconciliation of Core Revenue to total revenue, Adjusted EBITDA to net income and Adjusted EPS to EPS, the most directly comparable financial measures presented in accordance with GAAP, are set forth under "Key performance indicators".

27

Certain income statement line items

Revenues

During the three months ended June 30, 2026, total revenue increased by 21% to $113.4 million from $94.0 million for the three months ended June 30, 2025. For the six months ended June 30, 2026, total revenue increased by 22% to $206.5 million from $169.6 million for the six months ended June 30, 2025. Total Written Premium, which we believe is the best leading indicator of future revenue, increased 14% to $1.34 billion for the three months ended June 30, 2026 from $1.18 billion for the three months ended June 30, 2025. Total Written Premium increased 13% for the six months ended June 30, 2026 to $2.47 billion from $2.18 billion for the six months ended June 30, 2025. Total Written Premiums drive our current and future Core Revenue and give us potential opportunities to earn Ancillary Revenue in the form of Contingent Commissions.

Our various revenue streams do not equally contribute to the long-term value of Goosehead. For instance, Renewal Revenue and Renewal Royalty Fees are more predictable and have higher margin profiles, thus are higher quality revenue streams for the Company. Alternatively, Contingent Commissions, while high margin, are unpredictable and dependent on insurance company underwriting and forces of nature and thus are lower quality revenue for the Company. Our revenue streams can be viewed in three distinct categories: Core Revenue, Cost Recovery Revenue, and Ancillary Revenue, which are non-GAAP measures. A reconciliation of Core Revenue, Cost Recovery Revenue, and Ancillary Revenue to total revenue, the most directly comparable financial measure presented in accordance with GAAP, are set forth under "Key performance indicators".

Core Revenue:

•Renewal Commissions - highly predictable, higher-margin revenue stream, which is managed by our service team.

•Renewal Royalty Fees - highly predictable, higher-margin revenue stream, which is managed by our service team. For policies in their first renewal term, we see an increase in our share of royalties from 20% to 50% of the commission paid by the Carriers.

•New Business Commissions - predictable based on agent headcount and consistent ramp-up of agents, but lower margin than Renewal Commissions because of higher commissions paid to agents and higher back-office costs associated with policies in their first term. This revenue stream has predictably converted into higher-margin Renewal Commissions historically, and we expect this to continue moving forward.

•New Business Royalty Fees - predictable based on franchise count and consistent ramp-up of franchises, but lower margin than Renewal Royalty Fees because the Company only receives a royalty fee of 20% on the commissions paid by the Carrier in the first term of every policy and incurs higher back-office costs associated with policies in their first term. This revenue stream has predictably converted into higher-margin Renewal Royalty Fees historically, and we expect this to continue moving forward.

•Agency Fees - although predictable based on agent count, Agency Fees do not renew like New Business Commissions and Renewal Commissions.

Cost Recovery Revenue:

•Initial Franchise Fees - one-time Cost Recovery Revenue stream per franchise unit that covers the Company's costs to recruit, train, onboard, and support the franchise for the first year. These fees are fully earned and non-refundable when a franchise attends our initial training.

•Interest Income - like Initial Franchise Fees, interest income is a Cost Recovery Revenue stream that reimburses the Company for those franchises on a payment plan.

Ancillary Revenue:

•Contingent Commissions - although high margin, Contingent Commissions are unpredictable and susceptible to weather events and Carrier underwriting results.

•Other Franchise Revenues - book transfer fees, marketing investments from Carriers and other items that are unpredictable and supplemental to other revenue streams.

28

We discuss below the breakdown of our revenue by stream:

[[GREPCENT_TABLE]]
[["","","Three Months Ended June 30,","","Six Months Ended June 30,"],["(in thousands)","","2026","","2025","","2026","","2025"],["Core Revenue:"],["Renewal Commissions(1)","","$21,034","","19","%","","$23,119","","25","%","","$39,196","","19","%","","$40,071","","24","%"],["Renewal Royalty Fees(2)","","52,507","","46","%","","45,381","","48","%","","96,101","","47","%","","82,625","","49","%"],["New Business Commissions(1)","","9,613","","8","%","","7,559","","8","%","","17,065","","8","%","","13,314","","8","%"],["New Business Royalty Fees(2)","","9,396","","8","%","","7,820","","8","%","","17,282","","8","%","","14,749","","9","%"],["Agency Fees(1)","","3,083","","3","%","","2,906","","3","%","","5,468","","3","%","","5,146","","3","%"],["Total Core Revenue","","95,633","","84","%","","86,785","","92","%","","175,112","","85","%","","155,905","","92","%"],["Cost Recovery Revenue:"],["Initial Franchise Fees(2)","","1,360","","2","%","","1,247","","1","%","","2,969","","1","%","","2,589","","2","%"],["Interest Income","","95","","\u2014","%","","179","","\u2014","%","","212","","\u2014","%","","368","","\u2014","%"],["Total Cost Recovery Revenue","","1,455","","2","%","","1,426","","2","%","","3,181","","1","%","","2,957","","2","%"],["Ancillary Revenue:"],["Contingent Commissions(1)","","15,725","","13","%","","4,492","","5","%","","26,411","","13","%","","8,968","","5","%"],["Other Franchise Revenues(2)","","576","","1","%","","1,324","","1","%","","1,761","","1","%","","1,781","","1","%"],["Total Ancillary Revenue","","16,301","","14","%","","5,816","","6","%","","28,172","","14","%","","10,749","","6","%"],["Total Revenues","","$113,389","","100","%","","$94,027","","100","%","","$206,465","","100","%","","$169,611","","100","%"]]
[[/GREPCENT_TABLE]]

(1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in "Commissions and agency fees" as shown on the condensed 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 condensed consolidated statements of operations.

29

Consolidated results of operations

The following is a discussion of our consolidated results of operations for each of the three and six months ended June 30, 2026 and 2025. This information is derived from our accompanying condensed consolidated financial statements prepared in accordance with GAAP.

The following table summarizes our results of operations (in thousands):

[[GREPCENT_TABLE]]
[["","","Three Months Ended June 30,","","Six Months Ended June 30,"],["","","2026","","2025","","2026","","2025"],["Revenues:"],["Commissions and agency fees","","$","49,455","","44","%","","$","38,076","","40","%","","$","88,140","","43","%","","$","67,499","","40","%"],["Franchise revenues","","63,839","","56","%","","55,772","","59","%","","118,113","","57","%","","101,744","","60","%"],["Interest income","","95","","\u2014","%","","179","","\u2014","%","","212","","\u2014","%","","368","","\u2014","%"],["Total revenues","","113,389","","100","%","","94,027","","100","%","","206,465","","100","%","","169,611","","100","%"],["Operating Expenses:"],["Employee compensation and benefits","","54,328","","62","%","","50,388","","64","%","","104,855","","63","%","","98,722","","67","%"],["General and administrative expenses","","28,420","","33","%","","24,647","","31","%","","52,389","","32","%","","42,206","","29","%"],["Bad debts","","504","","1","%","","550","","1","%","","877","","1","%","","957","","1","%"],["Depreciation and amortization","","3,545","","4","%","","2,782","","4","%","","6,757","","4","%","","5,452","","4","%"],["Total operating expenses","","86,797","","100","%","","78,367","","100","%","","164,878","","100","%","","147,337","","100","%"],["Income from operations","","26,592","","","","15,660","","","","41,587","","","","22,274"],["Other Income:"],["Interest expense","","(5,714)","","","","(6,303)","","","","(11,186)","","","","(12,126)"],["Other income","","260","","","","815","","","","527","","","","983"],["Income before taxes","","21,138","","","","10,172","","","","30,928","","","","11,131"],["Tax expense","","4,124","","","","1,889","","","","5,869","","","","202"],["Net income","","17,014","","","","8,283","","","","25,059","","","","10,929"],["Less: net income attributable to noncontrolling interests","","6,949","","","","3,133","","","","10,105","","","","3,437"],["Net income attributable to Goosehead Insurance, Inc.","","$","10,065","","","","$","5,150","","","","$","14,954","","","","$","7,492"]]
[[/GREPCENT_TABLE]]

Revenues

For the three months ended June 30, 2026 total revenues increased 21% to $113.4 million from $94.0 million for the three months ended June 30, 2025. For the six months ended June 30, 2026, total revenues increased 22% to $206.5 million from $169.6 million for the six months ended June 30, 2025.

Commissions and agency fees

Commissions and agency fe

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1726978/000172697826000010/gshd-20251231.htm
Complete FY 2025 MD&A: /company/GSHD/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-19
Report date: 2025-12-31

Item 7. Management’s discussion and analysis of financial condition and results of operations

Overview

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the related notes and other financial information included elsewhere in this Annual Report. In addition to historical financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties, and assumptions. Our actual results and timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those discussed under “Risk factors” and elsewhere in this Annual Report.

This discussion includes references to non-GAAP financial measures as defined in the rules of the Securities and Exchange Commission ("the SEC"). We present such non-GAAP financial measures, specifically, Core Revenue, Adjusted EBITDA and Adjusted EPS non-GAAP financial measures, as we believe such information is of interest to the investment community because it provides additional meaningful methods of evaluating certain aspects of the Company’s operating performance from period to period on a basis that may not be otherwise apparent under U.S. GAAP, and these provide a measure against which our businesses may be assessed in the future.

Our methods of calculating these measures may differ from those used by other companies and therefore comparability may be limited. These financial measures should be viewed in addition to, not in lieu of, the consolidated financial statements for the year ended December 31, 2025. See "Non-GAAP Financial Measures" below for further discussion of our Core Revenue, Adjusted EBITDA and Adjusted EPS non-GAAP financial measures

We are a rapidly growing personal lines independent insurance agency, reinventing the traditional approach to distributing personal lines products and services throughout the United States. We were founded with one vision in mind—to provide clients with superior insurance coverage at the best available price and in a timely manner. By leveraging our differentiated business model and innovative technology platform, we are able to deliver a superior insurance experience to our clients.

The following discussion contains references to the years ended December 31, 2025, December 31, 2024, and December 31, 2023. See Goosehead’s Annual Report on Form 10-K for the year ended December 31, 2024 for a discussion of the changes from year ended December 31, 2023 to the year ended December 31, 2024.

Financial Highlights for 2025:

•Total revenue increased 16% from 2024 to $365.3 million; Core Revenues*, a non-GAAP measure, of $317.9 million increased 16% over 2024

•Total Written Premiums Placed increased 17% from 2024 to $4.4 billion

•Net income decreased by $4.7 million from 2024 to $44.5 million, or 12% of total revenues

•Adjusted EBITDA*, a non-GAAP measure, increased by 14% from 2024 to $113.6 million, or 31% of total revenues

•Basic earnings per share was $1.11 and Adjusted EPS*, a non-GAAP measure, was $1.86 for the year ended December 31, 2025.

•Policies in Force increased 14% from December 31, 2024 to 1.9 million at December 31, 2025.

•Corporate sales headcount increased 17% from December 31, 2024 to 489 at December 31, 2025.

◦As of December 31, 2025, 261 of these corporate sales agents had less than one year of tenure and 228 had greater than one year of tenure.

•Operating franchises decreased 9% from December 31, 2024 to 1,009 at December 31, 2025.

◦As of December 31, 2025, 87 operating franchises had less than one year of tenure and 922 operating franchisees had greater than one year of tenure.

◦Total franchise agents increased 1% from December 31, 2024 to 2,113 at December 31, 2025.

53

*Core Revenue, Adjusted EBITDA and Adjusted EPS are non-GAAP measures. Reconciliation of Total Core Revenue to Total Revenue, Adjusted EBITDA to net income and Adjusted EPS to EPS, the most directly comparable financial measures presented in accordance with GAAP, are set forth in "Key performance indicators" below.

Factors affecting our results of operations

We believe that the most significant factors affecting our results of operations include:

•Investment in growth. We continue to invest in expanding our national footprint, increasing our revenue-producing headcount, and increasing the level of support provided to our salespeople. Our ability to attract and retain top corporate sales agents and franchise owners, ramp up new agent productivity, and retain existing and future Policies in Force are key to continued profitable growth.

•Investment in technology. We continue to develop and invest in our technology platform to drive scalability, adaptability, and efficiency. We believe our significant investment in proprietary technology is a key competitive advantage that supports, and will continue to support, our growth and operating margins.

•Continued penetration of Franchisees into existing markets. We will continue to market actively for new franchises in our established markets, which represent over 97% of the U.S. population. We are licensed with the necessary state departments of commerce and insurance and registered as a franchisor in all 50 states in the U.S.

•Continued retention of existing Book of Business. We have navigated macroeconomic challenges to maintain high levels of Client Retention. Client Retention is key to future profitability.

•Increase in margins as business shifts from new to renewal. Because we are entitled to a higher percentage of Royalty Fees after the first term of a policy and the higher level of back-office support needed during the first term of an insurance policy, the Company begins to see higher levels of profitability on Renewal Revenue. We will focus simultaneously on converting New Business Revenue to Renewal Revenue through our retention efforts, and on continuing to grow New Business Revenue that will convert and allow us to expand our margins in future periods.

•Strength of the insurance market or particular lines of business. We generate the majority of our revenues through commissions, which are calculated as a percentage of the total insurance policy premium. A softening of the insurance market or the particular lines of business that are our focus, characterized by a period of declining premium rates, could negatively impact our profitability.

•Seasonality and cyclicality of housing market conditions. The majority of our new accounts are sourced by referral sources tied to home closing transactions. Major slowdowns in the various housing markets Goosehead serves, including as a result of changes in prevailing interest rates or U.S. monetary policies that affect interest rates, could impact our ability to generate new business. We experience seasonality and revenue related to the sale of insurance policies throughout the course of a calendar year that is tied to the seasonality of new home sales. Revenue from home insurance leads is higher from April to August and lower from October through January. While this can impact month-to-month or quarter-to-quarter results, we expect productivity to normalize year-over-year.

•Increases in interest rates. Our variable rate debt, including our Credit Agreement, exposes us to interest rate risk. If interest rates were to increase, our debt service obligations on our variable rate indebtedness would increase even if the amount borrowed remained the same. To the extent that interest rate risk materializes and is not fully mitigated, the resulting increase in interest expense could have a material adverse effect on our results of operations.

•Effect of natural or man-made disasters. Any increases in loss ratios due to natural or man-made disasters could impact our Contingent Commissions, which are primarily driven by both growth and loss ratio metrics.

•Cost of being a public company. To operate as a public company, we are required to continue to implement changes in certain aspects of our business and develop, manage, and train management-level and other employees to comply with on-going public company requirements. We also incur expenses as a public company, including public reporting obligations, proxy statements, stockholder meetings, stock exchange fees and transfer agent fees.

54

Effects of the reorganization on our corporate structure

Goosehead Insurance, Inc. was formed for the purpose of the Offering and to date has only engaged in activities related to Goosehead Financial, LLC. Goosehead Insurance, Inc. is a holding company and its sole material asset is a controlling ownership and profits interest in Goosehead Financial, LLC. All of our business is conducted through Goosehead Financial, LLC and its consolidated subsidiaries, and the financial results of Goosehead Financial, LLC and its consolidated subsidiaries are included in the consolidated financial statements of Goosehead Insurance, Inc. Goosehead Financial, LLC is currently taxed as a partnership for federal income tax purposes and, as a result, its members, including Goosehead Insurance, Inc., pay taxes with respect to their allocable shares of its net taxable income.

Prior redemptions and exchanges of LLC Units have resulted, and we expect future redemptions and exchanges will result in increases in the tax basis in our share of the tangible and intangible assets of Goosehead Financial, LLC that otherwise would not have been available. These increases in tax basis have reduced the amount of tax we are required to pay, and may reduce the amount of tax that we would otherwise be required to pay in the future. The tax receivable agreement requires Goosehead Insurance, Inc. to pay 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax or franchise tax that we actually realize to the Pre-IPO LLC Members. Furthermore, payments under the tax receivable agreement give rise to additional tax benefits and therefore additional payments under the tax receivable agreement itself. See "Item 13. Certain relationships and related transactions, and director independence".

Certain income statement line items

Revenues

In 2025, revenue increased by 16% to $365.3 million from $314.5 million in 2024. Total Written Premium growth, which is the best indicator of future revenue growth, increased 17% to $4.4 billion in 2025 from $3.8 billion in 2024. Total Written Premiums Placed drive our current and future Core Revenue and give us potential opportunities to earn Ancillary Revenue in the form of Contingent Commissions. Our various revenue streams do not equally contribute to the long-term value of Goosehead. For instance, Renewal Revenue and Renewal Royalty Fees are more predictable and have higher margin profiles, thus are higher quality revenue streams for the Company. Alternatively, Contingent Commissions, while high margin, are unpredictable and dependent on insurance company underwriting and forces of nature and thus are lower quality revenue for the Company. Our revenue streams can be viewed in three distinct categories: Core Revenue, Cost Recovery Revenue, and Ancillary Revenue, which are non-GAAP measures. A reconciliation of Core Revenue, Cost Recovery Revenue, and Ancillary Revenue to total revenue, the most directly comparable financial measures presented in accordance with GAAP, are set forth in the "Key performance indicators" section of Management’s discussion and analysis of financial condition and results of operations of this Form 10-K.

Core Revenue:

•Renewal Commissions - highly predictable, higher-margin revenue stream, which is managed by our service team.

•Renewal Royalty Fees - highly predictable, higher-margin revenue stream, which is managed by our service team. For policies in their first renewal term, we see an increase in our share of royalties fr

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/GSHD/mda/fy2025/
All MD&A years: /company/GSHD/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/GSHD/mda/fy2024/): filed 2025-03-03; accession 0001726978-25-000016 (https://www.sec.gov/Archives/edgar/data/1726978/000172697825000016/gshd-20241231.htm)
- [FY 2023 MD&A](/company/GSHD/mda/fy2023/): filed 2024-02-22; accession 0001726978-24-000018 (https://www.sec.gov/Archives/edgar/data/1726978/000172697824000018/gshd-20231231.htm)
- [FY 2022 MD&A](/company/GSHD/mda/fy2022/): filed 2023-02-27; accession 0001726978-23-000020 (https://www.sec.gov/Archives/edgar/data/1726978/000172697823000020/gshd-20221231.htm)
- [FY 2021 MD&A](/company/GSHD/mda/fy2021/): filed 2022-02-28; accession 0001726978-22-000029 (https://www.sec.gov/Archives/edgar/data/1726978/000172697822000029/gshd-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6411 Insurance Agents, Brokers & Service) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [M2SL](/indicator/M2SL/): M2
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units
- [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units

Macro-to-micro threads including this sector: [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/GSHD.md · JSON record: /company/GSHD.json · verified financials: /company/GSHD/financials.json / /company/GSHD/financials.csv · machine TOC for the whole site: /llms.txt