Goosehead Insurance (GSHD) Q2 2024 earnings summary

Executive summary

• Total revenue for Q2 2024 increased 13% year-over-year to $78.1 million, with core revenue up 20% to $73.4 million.

• Net income rose to $10.9 million, representing 14% of total revenues, and EPS increased to $0.25.

• Adjusted EBITDA grew to $24.7 million, or 32% of total revenues; Adjusted EPS was $0.43.

• Total written premiums surged 30% to $999 million, and policies in force rose 11% to 1.59 million.

• Leadership transition completed smoothly, with new CEO emphasizing growth, technology investments, and a goal to become the largest personal lines insurance distributor in the U.S.

Financial highlights

• Q2 2024 revenue: $78.1M (+13% YoY); core revenue up 20% to $73.4M.

• Adjusted EBITDA for Q2: $24.7M (32% margin), up from $23.1M a year ago.

• Net income for Q2: $10.9M (vs. $7.2M prior year); Adjusted EPS: $0.43.

• Cash and cash equivalents at June 30, 2024: $23.6M; unused credit line of $74.8M.

• Outstanding term note payable: $98.1M as of June 30, 2024.

Outlook and guidance

• 2024 total written premiums expected between $3.62B and $3.82B, representing 22–29% growth.

• Total revenues projected at $290M–$310M (11–19% growth); adjusted EBITDA margin expected to expand for the full year.

• Margin expansion anticipated mainly in Q4 due to timing of contingencies and agent ramp-up.

• Management expects current liquidity sources to be sufficient for foreseeable working capital and commitments.

• Focus remains on organic growth, operating expense management, and capital allocation for share repurchases and debt service.