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 and a 21% margin.

• Net income increased to $2.6 million, representing 4% of total revenues; adjusted EPS was $0.26 per share.

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

• Franchise network expanded with 36 new launches, but operating franchises declined 5% to 1,098; corporate sales headcount up 46% to 426.

• Board approved a $100 million share repurchase authorization through May 2026.

Financial highlights

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

• Adjusted EBITDA margin improved to 21% from 18% year-over-year.

• Employee compensation and benefits rose 15% to $48.3 million; operating expenses up 9% to $69.0 million.

• Cash and equivalents at quarter-end were $70.2 million; total debt at $300 million.

• Cash flow from operations was $15.5 million, up 28% year-over-year.

Outlook and guidance

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

• Full-year written premiums expected between $4.65–$4.88 billion, 22–28% organic growth.

• Management expects continued growth in core revenue and policies in force, but notes carrier capacity constraints and premium rate increases could impact growth.

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

• Optimism for continued improvement in product availability, price stability, and client retention over the next 6–24 months.