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1. Company Snapshot

1.a. Company Description

Goosehead Insurance, Inc.operates as a holding company for Goosehead Financial, LLC that provides personal lines insurance agency services in the United States.The company operates in two segments, Corporate Channel and Franchise Channel.


It offers homeowner's, insurance, automotive, dwelling property insurance, flood, wind, earthquake, excess liability or umbrella, motorcycle, recreational vehicle, general liability, property, and life insurance products and services.As of December 31, 2021, the company had 2,151 total franchises.Goosehead Insurance, Inc.


was founded in 2003 and is headquartered in Westlake, Texas.

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1.b. Last Insights on GSHD

Goosehead Insurance's recent performance was negatively impacted by its Q2 earnings miss, with quarterly earnings of $0.49 per share, falling short of the Zacks Consensus Estimate of $0.53 per share. This led analysts to slash their forecasts, and the company was added to the Zacks Rank #5 (Strong Sell) List. Despite expansion efforts, including the addition of Mark Jones, Jr. as Chief Financial Officer and Chief Operating Officer, and a strategic franchise arrangement with Nan & Company Properties, the company's short-term prospects appear challenging.

1.c. Company Highlights

2. Goosehead Insurance's Q3 2025 Earnings: A Strong Performance

Goosehead Insurance reported a robust Q3 2025 performance, with total revenue growing 16% year-over-year to $90.4 million, core revenue increasing 14% to $83.9 million, and adjusted EBITDA rising 14% to $29.7 million. Earnings per share (EPS) came in at $0.46, slightly below estimates of $0.47. The company's financial performance was driven by a strong showing from its franchise producers, with producers per franchise growing 6% and new business commissions growth of 20% year-over-year.

Publication Date: Oct -28

📋 Highlights
  • Total Written Premium Growth: Rose from $2B in 2022 to $4B in 2025, with 2025 guidance of $4.38B–$4.65B (15–22% organic growth).
  • Digital Agent Investment: $10.9M spent in 2025, with $25M–$35M planned for 2026–2027, targeting 40%+ total written premium growth over five years.
  • Q3 Financial Performance: Total revenue of $90.4M (+16% YoY), core revenue of $83.9M (+14%), and adjusted EBITDA of $29.7M (+14%).
  • Client Retention & Policies: Client retention improved to 85%, and policies in force reached 1.9M (+13% YoY).
  • Share Repurchase Activity: Retired 685K shares for $58.7M, leaving $36M remaining under the authorization.

Revenue Growth Drivers

The company's revenue growth was driven by a combination of factors, including a 13% increase in policies in force to $1.9 million and a 15% rise in total written premiums to $1.2 billion. Franchise premiums increased 18% to $976 million, while corporate premiums rose 1% to $206 million. Contingent commissions also saw a significant increase, rising 82% to $4.5 million.

Digital Agent Platform Investment

Goosehead Insurance is investing heavily in its digital agent platform, with $10.9 million invested in 2025 and expected investments of $25 million to $35 million in 2026 and 2027. The company expects the digital agent to drive significant growth, with the potential to increase total written premiums by 40% over the next 5 years. As Mark Jones Jr. noted, "We're building the future of personal lines distribution in real-time."

Valuation and Outlook

With a P/E Ratio of 60.68 and a P/S Ratio of 12.2, the market appears to be pricing in significant growth expectations for Goosehead Insurance. The company's ROE is negative, at -53.03%, but its ROIC is a healthy 18.38%. Analysts estimate revenue growth of 20.2% for next year, driven by the company's continued investment in its digital agent platform and its strong franchise business. As the company continues to execute on its growth strategy, investors will be watching to see if it can deliver on its ambitious targets.

Balance Sheet and Cash Flow

Goosehead Insurance ended the quarter with $51.6 million in cash and cash equivalents and $299 million in total debt, resulting in a Net Debt / EBITDA ratio of 0.07. The company generated significant cash flow and has been conservative with its balance sheet, allowing for optionality. The company repurchased and retired 685,000 outstanding Class A shares during the quarter, utilizing $58.7 million of its share repurchase authorization.

3. NewsRoom

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CNO Financial Group (NYSE:CNO) and Goosehead Insurance (NASDAQ:GSHD) Head-To-Head Survey

Nov -15

Source: defenseworld.net

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Teacher Retirement System of Texas Buys 6,813 Shares of Goosehead Insurance $GSHD

Nov -06

Source: defenseworld.net

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State of New Jersey Common Pension Fund D Sells 748 Shares of Goosehead Insurance $GSHD

Nov -02

Source: defenseworld.net

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Goosehead Insurance, Inc (GSHD) Q3 2025 Earnings Call Transcript

Oct -23

Source: seekingalpha.com

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Goosehead (GSHD) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Oct -22

Source: zacks.com

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Goosehead Insurance (GSHD) Q3 Earnings and Revenues Lag Estimates

Oct -22

Source: zacks.com

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Goosehead Insurance Data Breach Exposes Personal Information: Murphy Law Firm Investigates Legal Claims

Oct -17

Source: globenewswire.com

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Goosehead Insurance, Inc. to Report Third Quarter 2025 Results

Oct -15

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.23%)

6. Segments

Insurance and Related Activities

Expected Growth: 8.23%

Goosehead Insurance's 8.23% growth in Insurance and Related Activities is driven by increasing demand for personalized insurance services, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation, improved customer experience, and a strong agent network have contributed to its growth.

7. Detailed Products

Personal Lines Insurance

Provides coverage for individuals and families, including auto, home, umbrella, and other personal insurance products.

Commercial Lines Insurance

Offers coverage for businesses, including liability, property, workers' compensation, and other commercial insurance products.

Life Insurance

Provides financial protection for loved ones in the event of death, including term life, whole life, and universal life insurance.

Health Insurance

Offers medical, dental, and vision insurance plans for individuals, families, and groups.

Cyber Insurance

Provides coverage for businesses and individuals against cyber-attacks, data breaches, and other cyber-related risks.

Umbrella Insurance

Offers additional liability coverage beyond standard insurance policies, providing extra protection for assets and financial well-being.

8. Goosehead Insurance, Inc's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Goosehead Insurance, Inc. is low due to the company's strong brand recognition and customer loyalty.

Bargaining Power Of Customers

The bargaining power of customers for Goosehead Insurance, Inc. is medium due to the availability of alternative insurance providers and the ability of customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Goosehead Insurance, Inc. is low due to the company's strong relationships with its suppliers and the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants for Goosehead Insurance, Inc. is high due to the low barriers to entry in the insurance industry and the potential for new companies to disrupt the market.

Intensity Of Rivalry

The intensity of rivalry for Goosehead Insurance, Inc. is high due to the competitive nature of the insurance industry and the presence of established competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 60.28%
Debt Cost 5.11%
Equity Weight 39.72%
Equity Cost 10.46%
WACC 7.23%
Leverage 151.78%

11. Quality Control: Goosehead Insurance, Inc passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

76.0$

Current Price

76$

Potential

-0.00%

Expected Cash-Flows