Goosehead Insurance, Inc. Releases Preliminary Third Quarter 2026 Results
“We delivered strong third quarter results, with total revenue up approximately 17%, and core revenue1 up 13%,” said
Preliminary Third Quarter 2026 Results*
- Total Revenues grew approximately 17% in the third quarter of 2026 over the prior year period, at the mid-point of the range, based on preliminary estimates of the impact of the restatement*
- Third quarter Core Revenue1 of
$94.7 million increased 13% over the prior-year period - Total written premiums placed for the third quarter increased 11% over the prior-year period to
$1.31 billion - Policies in force grew 14% from the prior-year period to approximately 2.1 million
- Corporate agent headcount of 568 increased 9% compared to the prior-year period
- Total franchise producers of 2,272 increased 7% from the prior-year period
For the third quarter of 2026, total revenues are estimated to be between
*See “Preliminary Nature of Results”
1Core Revenue is a non-GAAP measure. Reconciliation of Core Revenue to total revenues, the most directly comparable financial measure presented in accordance with GAAP, is set forth in the reconciliation table accompanying this release.
Preliminary revenue for the three and nine months ended
| Three Months Ended |
Nine Months Ended |
||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||
| Revenues: | |||||||||||||
| Core Revenue: | |||||||||||||
| Renewal Commissions(1) | $ | 19,887 | $ | 19,671 | $ | 59,083 | $ | 59,742 | |||||
| Renewal Royalty Fees(2) | 53,420 | 45,687 | 149,522 | 128,312 | |||||||||
| New Business Commissions(1) | 9,127 | 7,526 | 26,192 | 20,840 | |||||||||
| New Business Royalty Fees(2) | 9,371 | 8,275 | 26,653 | 23,024 | |||||||||
| Agency Fees(1) | 2,864 | 2,715 | 8,332 | 7,861 | |||||||||
| Total Core Revenue | 94,669 | 83,874 | 269,782 | 239,779 | |||||||||
| Cost Recovery Revenue: | |||||||||||||
| Initial Franchise Fees(2) | 1,220 | 1,380 | 4,189 | 3,969 | |||||||||
| Franchise Operating Fees(2)(3) | 2,500-4,500 | 2,500-4,500 | 8,000-13,000 | 8,000-13,000 | |||||||||
| Interest Income | 80 | 162 | 292 | 530 | |||||||||
| Total Cost Recovery Revenue | 3,800-5,800 | 4,042-6,042 | 12,481-17,481 | 12,499-17,499 | |||||||||
| Ancillary Revenue: | |||||||||||||
| Contingent Commissions(1) | 9,993 | 4,542 | 36,404 | 13,510 | |||||||||
| Other Franchise Revenues(2) | 356 | 477 | 2,117 | 2,258 | |||||||||
| Total Ancillary Revenue | 10,349 | 5,019 | 38,521 | 15,768 | |||||||||
| Total Revenues | 108,818 - 110,818 |
92,935 - 94,935 |
320,784 - 325,784 |
268,046 - 273,046 |
|||||||||
(1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in "Commissions and agency fees"
(2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, Franchise Operating Fees, and Other Franchise Revenues are included in "Franchise revenues"
(3) Franchise Operating Fees includes ongoing technology-related fees and E&O insurance program fees paid by franchisees
Full Year 2026 Outlook
We are reaffirming guidance for the full year 2026 as follows:
- Total revenues are expected to grow organically between 12% and 19% considering the expected range of impact of the restatement as noted below
- Total written premiums are expected to grow between 12% and 20%.
Restatement of Financial Results
In response to a comment letter received from the
During the Non-Reliance Periods, certain qualifying commissions paid to obtain customer contracts were expensed within employee compensation and benefits rather than capitalized and amortized over the period of expected benefit. While our historical accounting reflects the underlying economic realities of the business by expensing these costs as incurred, we have determined it does not conform to the FASB’s standards and must be restated. The Company preliminarily expects employee compensation and benefits to decrease and income from operations to increase by approximately 0.5% to 5.5% of employee compensation and benefits for each of the full year ended
During the Non-Reliance Periods, certain fees charged to franchisees, consisting of technology-related fees and fees for participation in the Company's E&O insurance program, were recorded as a reduction of general and administrative expenses rather than recognized as franchise revenues in accordance with Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“ASC 606”). Correcting this departure from GAAP results in a reclassification that increases both franchise revenues and general and administrative expenses by equal amounts in the same periods. This correction affects only the presentation of these amounts, not the timing of their recognition, and had no effect on operating income, net income or cash flows for the Non-Reliance Periods. We preliminarily expect both total revenue and general and administrative expenses to increase by equivalent amounts in the ranges of approximately
The Company intends to file an amendment to its Annual Report on Form 10-K for the fiscal year ended
Conference Call Information
Goosehead will host a conference call and webcast today at
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.
Preliminary Nature of Results
The financial results for the three and nine months ended September 30, 2026 and 2025 included in this release are preliminary, have not been reviewed or audited by the Company’s independent registered public accounting firm, are based on the Company’s estimates, and were prepared prior to the completion of the Company’s financial statement close process or the Restatement. Accordingly, our actual results and the impact of the Restatement may differ from the preliminary financial information presented herein, and any such differences could be material. The preliminary financial information is subject to, among other things, the completion of the Restatement and the Company’s financial statement close and review procedures for the three and nine months ended September 30, 2026 and 2025, and should not be viewed as a substitute for full interim financial statements prepared in accordance with GAAP.
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, including the scope, timing and expected impact of the Restatement on historical results or on our outlook, the filings of any periodic reports or amendments thereto, Goosehead’s strategies or expectations, future earnings reports or updates, and the timing of any of the foregoing. 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, uncertainties, and other important factors 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, the completion of the Company’s financial statement close process and the review of its results; the discovery of additional information relevant to the Restatement; the time required to complete the Restatement and related filings; the Company’s expectations regarding materiality or significance and the Restatement’s quantitative effects; any delay in the filing of required periodic reports and the consequences thereof; potential litigation, regulatory inquiries or proceedings; 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 “Item 1A. Risk Factors” in Goosehead’s Annual Report on Form 10-K for the year ended December 31, 2025 and in Goosehead’s other filings with the SEC, which are available free of charge on the SEC'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
Maddie Middleton
Goosehead Insurance - Senior Director of Investor Relations
Email: madeline.middleton@goosehead.com; IR@goosehead.com
Goosehead Insurance, Inc.
Reconciliation of Non-GAAP Measures to GAAP
This release includes certain financial performance measures 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 these non-GAAP financial measures 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, Franchise Operating 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 Franchise Revenues. We believe that Ancillary Revenue is an appropriate measure of operating performance because it summarizes revenues that are ancillary to our core business.
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 nine months ended September 30, 2026 and 2025 (in thousands), based on preliminary estimates of the impact of the restatement*:
| Three Months Ended |
Nine Months Ended |
||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||
| Total Revenues | 108,818 - 110,818 | 92,935 - 94,935 | 320,784 - 325,784 | 268,046 - 273,046 | |||||||||
| Core Revenue: | |||||||||||||
| Renewal Commissions(1) | $ | 19,887 | $ | 19,671 | $ | 59,083 | $ | 59,742 | |||||
| Renewal Royalty Fees(2) | 53,420 | 45,687 | 149,522 | 128,312 | |||||||||
| New Business Commissions(1) | 9,127 | 7,526 | 26,192 | 20,840 | |||||||||
| New Business Royalty Fees(2) | 9,371 | 8,275 | 26,653 | 23,024 | |||||||||
| Agency Fees(1) | 2,864 | 2,715 | 8,332 | 7,861 | |||||||||
| Total Core Revenue | 94,669 | 83,874 | 269,782 | 239,779 | |||||||||
| Cost Recovery Revenue: | |||||||||||||
| Initial Franchise Fees(2) | 1,220 | 1,380 | 4,189 | 3,969 | |||||||||
| Franchise Operating Fees(2)(3) | 2,500-4,500 | 2,500-4,500 | 8,000-13,000 | 8,000-13,000 | |||||||||
| Interest Income | 80 | 162 | 292 | 530 | |||||||||
| Total Cost Recovery Revenue | 3,800-5,800 | 4,042-6,042 | 12,481-17,481 | 12,499-17,499 | |||||||||
| Ancillary Revenue: | |||||||||||||
| Contingent Commissions(1) | 9,993 | 4,542 | 36,404 | 13,510 | |||||||||
| Other Franchise Revenues(2) | 356 | 477 | 2,117 | 2,258 | |||||||||
| Total Ancillary Revenue | 10,349 | 5,019 | 38,521 | 15,768 | |||||||||
| Total Revenues | 108,818 - 110,818 | 92,935 - 94,935 | 320,784 - 325,784 | 268,046 - 273,046 | |||||||||
(1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in "Commissions and agency fees"
(2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, Franchise Operating Fees and Other Franchise Revenues are included in "Franchise revenues"
(3) Franchise Operating Fees includes ongoing technology-related fees and E&O insurance program fees paid by franchisees
*See “Preliminary Nature of Results”
Key Performance Indicators
| Corporate sales agents < 1 year tenured | 320 | 261 | 286 | |||||||||
| Corporate sales agents > 1 year tenured | 248 | 228 | 237 | |||||||||
| Operating franchises < 1 year tenured | 60 | 87 | 101 | |||||||||
| Operating franchises > 1 year tenured | 810 | 922 | 967 | |||||||||
| Franchise Producers < 1 Year | 740 | 545 | 574 | |||||||||
| Franchise Producers > 1 Year | 1,532 | 1,568 | 1,550 | |||||||||
| Total Franchise Producers | 2,272 | 2,113 | 2,124 | |||||||||
| QTD Corporate Agent Productivity < 1 Year(1) | $ | 12,686 | $ | 13,728 | $ | 13,565 | ||||||
| QTD Corporate Agent Productivity > 1 Year(1) | $ | 27,116 | $ | 22,735 | $ | 26,201 | ||||||
| QTD Franchise Productivity < 1 Year(2) | $ | 29,874 | $ | 16,101 | $ | 18,312 | ||||||
| QTD Franchise Productivity > 1 Year(2) | $ | 48,942 | $ | 34,413 | $ | 36,755 | ||||||
| Policies in Force (in thousands) | 2,122 | 1,900 | 1,853 | |||||||||
| Client Retention | 86 | % | 85 | % | 85 | % | ||||||
| Premium Retention | 87 | % | 90 | % | 93 | % | ||||||
| QTD Corporate Written Premium (in thousands) | $ | 212,534 | $ | 193,848 | $ | 206,135 | ||||||
| QTD Franchise Written Premium (in thousands) | $ | 1,094,774 | $ | 896,282 | $ | 975,690 | ||||||
| QTD Total Written Premium (in thousands) | $ | 1,307,308 | $ | 1,090,130 | $ | 1,181,825 | ||||||
| Customer Satisfaction Score (CSAT)(3) | 4.1 | — | — | |||||||||
(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, prior to paying Royalty Fees to the Company, divided by the average number of franchises for the same period.
(3) CSAT: Customer Satisfaction Score; the average of all client responses to a single survey question asking clients to rate their most recent interaction with us on a scale of 1 to 5, where 5 is most satisfied and 1 is least satisfied. The current period reflects all responses from
Source: Goosehead Insurance, Inc.