0001726978-21-000187 | 10-Q | XBRL Viewer

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Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2021	Oct. 27, 2021
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-38466
Entity Registrant Name	GOOSEHEAD INSURANCE, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-3886022
Entity Address, Address Line One	1500 Solana Blvd, Building 4, Suite 4500
Entity Address, City or Town	Westlake
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	76262
City Area Code	469
Local Phone Number	480-3669
Title of 12(b) Security	Class A Common Stock, par value $.01 per share
Trading Symbol	GSHD
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001726978
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Class A Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		19,798,351
Class B Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		17,226,519

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues:
Revenues	$ 41,681	$ 32,015	$ 111,082	$ 82,364
Operating Expenses:
Employee compensation and benefits	26,078	17,901	69,862	47,308
General and administrative expenses	10,141	5,872	29,549	17,108
Bad debts	732	376	1,825	1,004
Depreciation and amortization	1,188	900	3,320	2,152
Total operating expenses	38,139	25,049	104,556	67,572
Income from operations	3,542	6,966	6,526	14,792
Other Income (Expense):
Other income	7	10	146	76
Interest expense	(756)	(582)	(1,903)	(1,665)
Income before taxes	2,793	6,394	4,769	13,203
Tax expense (benefit)	(2,575)	(331)	(2,646)	(612)
Net Income	5,368	6,725	7,415	13,815
Less: net income attributable to non-controlling interests	1,332	3,458	2,288	7,325
Net Income attributable to Goosehead Insurance, Inc.	$ 4,036	$ 3,267	$ 5,127	$ 6,490
Earnings per share:
Basic (in dollars per share)	$ 0.21	$ 0.19	$ 0.27	$ 0.39
Diluted (in dollars per share)	$ 0.19	$ 0.17	$ 0.25	$ 0.36
Weighted average shares of Class A common stock outstanding
Basic (in shares)	19,559	17,376	18,903	16,466
Diluted (in shares)	21,206	18,915	20,570	17,926
Dividends declared per share (in dollars per share)			$ 1.63	$ 1.15
Total stockholders' equity
Other Income (Expense):
Net Income	$ 4,036	$ 3,267
Net Income attributable to Goosehead Insurance, Inc.	4,036	3,267	$ 5,127	$ 6,490
Commissions and agency fees
Revenues:
Revenues	22,420	19,385	61,007	49,444
Franchise revenues
Revenues:
Revenues	18,960	12,418	49,234	32,347
Interest income
Revenues:
Revenues	$ 301	$ 212	$ 841	$ 573

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current Assets:
Cash and cash equivalents	$ 25,512	$ 24,913
Restricted cash	1,179	1,323
Commissions and agency fees receivable, net	8,349	18,604
Receivable from franchisees, net	866	2,100
Prepaid expenses	6,487	3,705
Total current assets	42,393	50,645
Receivable from franchisees, net of current portion	25,734	18,179
Property and equipment, net of accumulated depreciation	21,794	16,650
Right-of-use asset	35,384	22,513
Intangible assets, net of accumulated amortization	2,256	549
Deferred income taxes, net	114,376	73,363
Other assets	5,203	3,938
Total assets	247,140	185,837
Current Liabilities:
Accounts payable and accrued expenses	10,643	8,101
Premiums payable	1,179	1,323
Lease liability	4,400	3,203
Contract liabilities	5,646	4,233
Note payable	3,750	3,500
Total current liabilities	25,618	20,360
Lease liability, net of current portion	47,200	32,933
Note payable, net of current portion	119,555	79,408
Contract liabilities, net of current portion	38,963	29,968
Liabilities under tax receivable agreement, net of current portion	91,488	61,572
Total liabilities	322,824	224,241
Additional paid in capital	41,820	29,371
Accumulated deficit	(61,049)	(34,614)
Total stockholders' equity	(18,860)	(4,876)
Non-controlling interests	(56,824)	(33,528)
Total equity	(75,684)	(38,404)
Total liabilities and equity	247,140	185,837
Class A Common Stock
Current Liabilities:
Common stock	196	183
Class B Common Stock
Current Liabilities:
Common stock	$ 173	$ 184

Condensed Consolidated Balance Sheets (Unaudited) - Parenthetical - $ / shares shares in Thousands	Sep. 30, 2021	Dec. 31, 2020
Class A Common Stock
Common stock par value (in dollars per share)	$ 0.01	$ 0.01
Common stock shares authorized (in shares)	300,000	300,000
Common stock shares issued (in shares)	19,786	18,304
Common stock shares outstanding (in shares)	19,786	18,304
Class B Common Stock
Common stock par value (in dollars per share)	$ 0.01	$ 0.01
Common stock shares authorized (in shares)	50,000	50,000
Common stock shares issued (in shares)	17,239	18,447
Common stock shares outstanding (in shares)	17,239	18,447

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Class A Common Stock	Class B Common Stock	Total stockholders' equity	Common stock Class A Common Stock	Common stock Class B Common Stock	Additional paid in capital	Accumulated deficit	Non-controlling interest
Beginning balance (in shares) at Dec. 31, 2019					15,238	21,055
Beginning balance at Dec. 31, 2019	$ (31,007)			$ (9,007)	$ 152	$ 210	$ 14,442	$ (23,811)	$ (22,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	(296)			(156)				(156)	(140)
Distributions	(1,003)								(1,003)
Equity-based compensation	498			498			498
Activity under employee stock purchase plan (in shares)					3
Activity under employee stock purchase plan	116			116			116
Redemption of LLC Units (in shares)					(791)	(791)
Redemption of LLC Units	0			(869)	$ 8	$ (8)	(869)		869
Deferred tax adjustments related to Tax Receivable Agreement	1,704			1,704			1,704
Ending balance (in shares) at Mar. 31, 2020					16,032	20,264
Ending balance at Mar. 31, 2020	(29,988)			(7,714)	$ 160	$ 202	15,891	(23,967)	(22,274)
Beginning balance (in shares) at Dec. 31, 2019					15,238	21,055
Beginning balance at Dec. 31, 2019	(31,007)			(9,007)	$ 152	$ 210	14,442	(23,811)	(22,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	13,815
Activity under employee stock purchase plan				396
Redemption of LLC Units				(2,208)
Ending balance (in shares) at Sep. 30, 2020					17,499	19,158
Ending balance at Sep. 30, 2020	(49,432)			(12,135)	$ 175	$ 191	24,601	(37,102)	(37,297)
Beginning balance (in shares) at Mar. 31, 2020					16,032	20,264
Beginning balance at Mar. 31, 2020	(29,988)			(7,714)	$ 160	$ 202	15,891	(23,967)	(22,274)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	7,386			3,379				3,379	4,007
Distributions	(859)								(859)
Exercise of stock options (in shares)					241
Exercise of stock options	2,407			2,407	$ 3		2,404
Equity-based compensation	1,416			1,416			1,416
Activity under employee stock purchase plan (in shares)					2
Activity under employee stock purchase plan	138			138			138
Redemption of LLC Units (in shares)					(809)	(809)
Redemption of LLC Units	0			(762)	$ 8	$ (8)	(762)		762
Deferred tax adjustments related to Tax Receivable Agreement	2,314			2,261			2,261		53
Reallocation of Non-controlling interest	0			63				63	(63)
Ending balance (in shares) at Jun. 30, 2020					17,084	19,455
Ending balance at Jun. 30, 2020	(17,186)			1,188	$ 171	$ 194	21,348	(20,525)	(18,374)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	6,725			3,267				3,267	3,458
Distributions	(835)								(835)
Dividends declared	(42,000)			(19,895)				(19,895)	(22,105)
Exercise of stock options (in shares)					116
Exercise of stock options	1,161			1,161	$ 1		1,160
Equity-based compensation	1,416			1,416			1,416
Activity under employee stock purchase plan (in shares)					2
Activity under employee stock purchase plan	142			142			142
Redemption of LLC Units (in shares)					(297)	(297)
Redemption of LLC Units	0			(577)	$ 3	$ (3)	(577)		577
Deferred tax adjustments related to Tax Receivable Agreement	1,145			1,112			1,112		33
Reallocation of Non-controlling interest	0			51				51	(51)
Ending balance (in shares) at Sep. 30, 2020					17,499	19,158
Ending balance at Sep. 30, 2020	(49,432)			(12,135)	$ 175	$ 191	24,601	(37,102)	(37,297)
Beginning balance (in shares) at Dec. 31, 2020					18,304	18,447
Beginning balance at Dec. 31, 2020	(38,404)			(4,876)	$ 183	$ 184	29,371	(34,614)	(33,528)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	(1,089)			(396)				(396)	(693)
Exercise of stock options (in shares)					9
Exercise of stock options	226			226			226
Equity-based compensation	1,941			1,941			1,941
Activity under employee stock purchase plan (in shares)					2
Activity under employee stock purchase plan	205			205			205
Redemption of LLC Units (in shares)					(133)	(133)
Redemption of LLC Units	0			(249)	$ 1	$ (1)	(249)		249
Deferred tax adjustments related to Tax Receivable Agreement	816			798			798		18
Reallocation of Non-controlling interest	0			2				2	(2)
Ending balance (in shares) at Mar. 31, 2021					18,448	18,314
Ending balance at Mar. 31, 2021	(36,305)			(2,349)	$ 184	$ 183	32,292	(35,008)	(33,956)
Beginning balance (in shares) at Dec. 31, 2020					18,304	18,447
Beginning balance at Dec. 31, 2020	(38,404)			(4,876)	$ 183	$ 184	29,371	(34,614)	(33,528)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	7,415
Activity under employee stock purchase plan				613
Redemption of LLC Units (in shares)		(1,209)	(1,209)
Redemption of LLC Units				(2,673)
Ending balance (in shares) at Sep. 30, 2021					19,786	17,239
Ending balance at Sep. 30, 2021	(75,684)			(18,860)	$ 196	$ 173	41,820	(61,049)	(56,824)
Beginning balance (in shares) at Mar. 31, 2021					18,448	18,314
Beginning balance at Mar. 31, 2021	(36,305)			(2,349)	$ 184	$ 183	32,292	(35,008)	(33,956)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	3,136			1,487				1,487	1,649
Exercise of stock options (in shares)					31
Exercise of stock options	439			439			439
Equity-based compensation	1,851			1,851			1,851
Activity under employee stock purchase plan (in shares)					2
Activity under employee stock purchase plan	214			214			214
Redemption of LLC Units (in shares)					(728)	(728)
Redemption of LLC Units	0			(1,280)	$ 7	$ (7)	(1,280)		1,280
Deferred tax adjustments related to Tax Receivable Agreement	3,164			3,063			3,063		101
Reallocation of Non-controlling interest	0			(6)				(6)	6
Ending balance (in shares) at Jun. 30, 2021					19,209	17,586
Ending balance at Jun. 30, 2021	(27,501)			3,419	$ 191	$ 176	36,579	(33,527)	(30,920)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	5,368			4,036				4,036	1,332
Dividends declared	(60,000)			(31,657)				(31,657)	(28,343)
Exercise of stock options (in shares)					229
Exercise of stock options	2,311			2,311	$ 2		2,309
Equity-based compensation	1,851			1,851			1,851
Activity under employee stock purchase plan (in shares)					1
Activity under employee stock purchase plan	194			194			194
Redemption of LLC Units (in shares)		(348)	(348)		(347)	(347)
Redemption of LLC Units	0			(1,144)	$ 3	$ (3)	(1,144)		1,144
Deferred tax adjustments related to Tax Receivable Agreement	2,093			2,031			2,031		62
Reallocation of Non-controlling interest	0			99				99	(99)
Ending balance (in shares) at Sep. 30, 2021					19,786	17,239
Ending balance at Sep. 30, 2021	$ (75,684)			$ (18,860)	$ 196	$ 173	$ 41,820	$ (61,049)	$ (56,824)

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net income	$ 7,415	$ 13,815
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,508	2,499
Bad debt expense	1,825	1,004
Equity-based compensation	5,644	3,330
Impacts of Tax Receivable Agreement	31,884	28,815
Deferred income taxes	(34,942)	(28,077)
Noncash lease activity	2,594	0
Changes in operating assets and liabilities:
Receivable from franchisees	(6,861)	(4,029)
Commissions and agency fees receivable	8,947	(5,731)
Prepaid expenses	(2,782)	(1,916)
Other assets	(1,257)	(2,432)
Accounts payable and accrued expenses	1,113	(495)
Deferred rent	0	1,023
Contract liabilities	10,408	6,789
Premiums payable	(144)	455
Payments pursuant to the tax receivable agreement	(549)	(9)
Net cash provided by operating activities	26,803	15,041
Cash flows from investing activities:
Proceeds from notes receivable	24	26
Purchase of software	(1,989)	(318)
Purchase of property and equipment	(8,181)	(4,765)
Net cash used for investing activities	(10,146)	(5,057)
Cash flows from financing activities:
Debt issuance costs	(666)	(677)
Repayment of note payable	(3,744)	(27,321)
Proceeds from notes payable	44,619	64,821
Proceeds from the issuance of Class A common stock	3,589	3,965
Member distributions and dividends	(60,000)	(44,697)
Net cash provided by (used for) financing activities	(16,202)	(3,909)
Net increase in cash and restricted cash	455	6,075
Cash and cash equivalents, and restricted cash, beginning of period	26,236	15,260
Cash and cash equivalents, and restricted cash, end of period	26,691	21,335
Supplemental disclosures of cash flow data:
Cash paid during the year for interest	1,715	1,318
Cash paid for income taxes	$ 272	$ 270

Organization	9 Months Ended
Organization	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Goosehead Insurance, Inc. (“GSHD”) is the sole managing member of Goosehead Financial, LLC (“GF”) and has the sole voting power and control of management of GF. Accordingly, GSHD consolidates the financial results of GF and reports non-controlling interest in GSHD’s condensed consolidated financial statements. GF was organized on January 1, 2016 as a Delaware Limited Liability Company and is headquartered in Westlake, TX. GSHD (collectively with its consolidated subsidiaries, the “Company”) provides personal and commercial property and casualty insurance brokerage services for its clients through a network of corporate-owned agencies and franchise units across the nation. The Company had 12 and 9 corporate-owned locations in operation at September 30, 2021 and 2020, respectively. Franchisees are provided access to insurance Carrier Appointments, product training, technology infrastructure, client service centers and back office services. During the three months ended September 30, 2021 and 2020, the Company onboarded 92 and 110 franchise locations, respectively, and had 1,139 and 823 operating franchise locations as of September 30, 2021 and 2020, respectively. No franchises were purchased by the Company during the three and nine months ended September 30, 2021 or 2020. All intercompany accounts and transactions have been eliminated in consolidation.

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the annual disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated financial positions at September 30, 2021, the condensed consolidated results of operations, stockholders' equity and statements of cash flows for the three and nine months ended September 30, 2021 and 2020. The interim period condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements that are included in the Annual Report on Form 10-K.

The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that can be expected for the entire year. The Company experiences seasonal fluctuations of its revenue due to the timing of contingent commission revenue recognition and trends in housing market activity.

Impact of the Coronavirus (“COVID-19”) Pandemic

The extent to which the COVID-19 pandemic and the related economic impact may affect our financial condition or results of operations is uncertain. The extent of the impact on our operational and financial performance will depend on various factors, including the availability, effectiveness and utilization of vaccines for COVID-19 and its variant strains, the duration, severity and spread of the outbreak, including as a result of new variants,and its impact on home sales and consumer spending. To date, the pandemic has not increased our costs of or access to capital under our term note and revolving credit facility, and we do not believe it is reasonably likely to do so in the future. In addition, we do not believe that the pandemic will affect our ongoing ability to meet the covenants in our debt instruments, including under our term note and revolving credit facility. To date, the pandemic has not impacted the collectability of receivables or adversely affected our ability to generate new business, add new franchises, or retain existing franchises or policies. Due to the nature of our business, the effect of the COVID-19 pandemic may not be fully reflected in our results of operations until future periods.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date

of the financial statements, and the reported amounts of revenues and expenses during the reported period. Accordingly, actual results could differ from those estimates as more information becomes known.

Income Taxes

The Company accounts for income taxes pursuant to the asset and liability method which requires the recognition of deferred income tax assets and liabilities related to the expected future tax consequences arising from temporary differences between the carrying amounts and tax bases of assets and liabilities based on enacted statutory tax rates applicable to the periods in which the temporary differences are expected to reverse. Any effects of changes in income tax rates or laws are included in income tax expense in the period of enactment.

Restricted Cash

The Company holds premiums received from the insured, but not yet remitted to the insurance Carrier in a fiduciary capacity. Premiums received but not yet remitted included in restricted cash were $1.2 million and $1.4 million as of September 30, 2021 and 2020, respectively.

The following is a reconciliation of our cash and restricted cash balances as presented in the condensed consolidated statements of cash flows for the nine months ended September 30, 2021 and 2020 (in thousands):


	September 30,
	2021		2020
Cash and cash equivalents	$	25,512	$	19,957
Restricted cash	1,179		1,378
Cash and cash equivalents, and restricted cash	$	26,691	$	21,335

Recently Issued Accounting Pronouncements

Reference Rate Reform (ASU 2020-04): In March 2020, the Financial Accounting Standards Board issued ASU 2020-04. Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying U.S. GAAP if certain criteria are met to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued. ASU 2020-04 became effective on March 12, 2020 and may be applied prospectively through December 31, 2022. A substantial portion of our indebtedness bears interest at variable interest rates, primarily based on USD-LIBOR. The adoption of ASU 2020-04 did not have a material impact on our condensed consolidated financial statements. The standard will ease, if warranted, the administrative requirements for accounting for the future effects of the rate reform. Our debt agreement contains a provision to move to the Secured Overnight Financing Rate ("SOFR") if or when LIBOR is phased out.

Recently adopted accounting pronouncements

Simplifying the Accounting for Income Taxes (ASU 2019-12): In 2019, the Financial Accounting Standards Board issued ASU 2019-12 to simplify the accounting for income taxes. The guidance primarily addresses how to (1) recognize a deferred tax liability after we transition to or from the equity method of accounting, (2) evaluate if a step-up in the tax basis of goodwill is related to a business combination or is a separate transaction, (3) recognize all of the effects of a change in tax law in the period of enactment, including adjusting the estimated annual tax rate, and (4) include the amount of tax based on income in the income tax provision and any incremental amount as a tax not based on income for hybrid tax regimes. We adopted the guidance in the first quarter of 2021. The adoption did not have a material impact on our condensed consolidated financial statements or related disclosures.

Revenue

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue

Commissions and fees

The Company earns new and renewal commissions paid by insurance Carriers and fees paid by its clients for the binding of insurance coverage. The transactions price is set as the estimated commissions to be received over the term of the policy based on an estimate of premiums placed, policy changes and cancellations, net of a constraint.

These commissions and fees are earned at a point in time upon the effective date of bound insurance coverage, as no performance obligation exists after coverage is bound.

For Agency Fees, the Company enters into a contract with the insured, in which the Company's performance obligation is to place an insurance policy. The transaction price of the agency fee is set at the time the sale is agreed upon, and is included in the contract. Agency Fee revenue is recognized at a point in time, which is the effective date of the policy.

Contingent commission revenue is generated from contracts between the Company and insurance carriers, for which the Company is compensated for certain growth, profitability, or other performance-based metrics. The performance obligations for contingent commissions will vary by contract, but generally include the Company increasing profitable written premium with the insurance carrier. The transaction price for Contingent Commissions is estimated based on all available information and is recognized over time as the Company completes its performance obligations, as the underlying policies are placed, net of a constraint.

Franchise revenues

Franchise revenues include initial franchise fees and ongoing new and renewal royalty fees from franchisees.

Revenue from Initial Franchise Fees is generated from a contract between the Company and a franchisee. The Company's performance obligation is to provide initial training, onboarding, ongoing support and use of the Company's business operations over the period of the franchise agreement. The transaction price is set by the franchise agreement and revenue is recognized over time as the Company completes its performance obligations.

Revenue from New and Renewal Royalty Fees is recorded by applying the sales- and usage-based royalties exception. Under the sales- and usage-based exception, the Company estimates the anticipated amount of the royalties to be received over the term of the policy based on an estimate of premiums placed by the franchisee, policy changes, and cancellations, net of a constraint. Revenue from Royalty Fees is recognized over time as the placement of the underlying policies occur.

Contract costs

Additionally, the Company has evaluated ASC Topic 340 - Other Assets and Deferred Cost (“ASC 340”) which requires companies to defer certain incremental cost to obtain customer contracts, and certain costs to fulfill customer contracts.

Incremental cost to obtain - The adoption of ASC 340 resulted in the Company deferring certain costs to obtain customer contracts primarily as they relate to commission-based compensation plans in the Franchise Channel, in which the Company pays an incremental amount of compensation on new Franchise Agreements. These incremental costs are deferred and amortized over a 10-year period, which is consistent with the term of the contract.

Costs to fulfill - The Company has evaluated the need to capitalize costs to fulfill customer contracts and has determined that there are no costs that meet the definition for capitalization under ASC 340.

Disaggregation of Revenue

The following table disaggregates revenue by Segment and source (in thousands):


Three Months Ended September 30, 2021:	Franchise Channel		Corporate Channel		Total
Type of revenue stream:
Commissions and agency fees
Renewal Commissions	$	—	$	10,969	$	10,969
New Business Commissions	—		6,013		6,013
Agency Fees	—		3,050		3,050
Contingent Commissions	1,734		654		2,388
Franchise revenues
Renewal Royalty Fees	13,206		—		13,206
New Business Royalty Fees	4,003		—		4,003
Initial Franchise Fees	1,680		—		1,680
Other Franchise Revenues	71		—		71
Interest Income	301		—		301
Total Revenues	$	20,995	$	20,686	$	41,681

Timing of revenue recognition:
Transferred at a point in time	$	—	$	20,032	$	20,032
Transferred over time	20,995		654		21,649
Total Revenues	$	20,995	$	20,686	$	41,681


Three Months Ended September 30, 2020:	Franchise Channel		Corporate Channel		Total
Type of revenue stream:
Commissions and agency fees
Renewal Commissions	$	—	$	7,931	$	7,931
New Business Commissions	—		4,790		4,790
Agency Fees	—		2,491		2,491
Contingent Commissions	2,662		1,511		4,173
Franchise revenues
Renewal Royalty Fees	8,117		—		8,117
New Business Royalty Fees	3,090		—		3,090
Initial Franchise Fees	1,152		—		1,152
Other Franchise Revenues	59		—		59
Interest Income	212		—		212
Total Revenues	$	15,292	$	16,723	$	32,015

Timing of revenue recognition:
Transferred at a point in time	$	—	$	15,212	$	15,212
Transferred over time	15,292		1,511		16,803
Total Revenues	$	15,292	$	16,723	$	32,015


Nine Months Ended September 30, 2021:	Franchise Channel		Corporate Channel		Total
Type of revenue stream:
Commissions and agency fees
Renewal Commissions	$	—	$	29,036	$	29,036
New Business Commissions	—		16,573		16,573
Agency Fees	—		8,579		8,579
Contingent Commissions	4,986		1,833		6,819
Franchise revenues					—
Renewal Royalty Fees	33,622		—		33,622
New Business Royalty Fees	10,840		—		10,840
Initial Franchise Fees	4,570		—		4,570
Other Franchise Revenues	202		—		202
Interest Income	841		—		841
Total Revenues	$	55,061	$	56,021	$	111,082

Timing of revenue recognition:
Transferred at a point in time	$	—	$	54,188	$	54,188
Transferred over time	55,061		1,833		56,894
Total Revenues	$	55,061	$	56,021	$	111,082


Nine Months Ended September 30, 2020:	Franchise Channel		Corporate Channel		Total
Type of revenue stream:
Commissions and agency fees
Renewal Commissions	$	—	$	21,382	$	21,382
New Business Commissions	—		12,452		12,452
Agency Fees	—		6,362		6,362
Contingent Commissions	6,130		3,118		9,248
Franchise revenues
Renewal Royalty Fees	21,406		—		21,406
New Business Royalty Fees	7,737		—		7,737
Initial Franchise Fees	3,031		—		3,031
Other Franchise Revenues	173		—		173
Interest Income	573		—		573
Total Revenues	$	39,050	$	43,314	$	82,364

Timing of revenue recognition:
Transferred at a point in time	$	—	$	40,196	$	40,196
Transferred over time	39,050		3,118		42,168
Total Revenues	$	39,050	$	43,314	$	82,364

Contract Balances

The following table provides information about receivables, cost to obtain, and contract liabilities from contracts with customers (in thousands):


	September 30, 2021	December 31, 2020		Increase/(decrease)
Cost to obtain franchise contracts(1)	1,871	$	1,412	$	459
Commissions and agency fees receivable, net(2)	8,349	18,604		(10,255)
Receivable from franchisees(2)	26,600	20,279		6,321
Contract liability(2)(3)	44,609	34,201		10,408

(1) Cost to obtain franchise contracts is included in Other assets on the condensed consolidated balance sheets.

(2) Includes both the current and long term portion of this balance.

(3) Initial Franchise Fees to be recognized over the life of the contract.

The Company records Franchise Fees as contract liabilities on the Condensed Consolidated Balance Sheets when the agreement is executed. Contract liabilities are reduced as fees are recognized in revenue over the expected life of the franchise license. As the term of the franchise license is typically ten years, substantially all of the franchise fee revenue recognized in the period ended September 30, 2021 was included in the contract liabilities balance as of December 31, 2020.

The weighted average remaining amortization period for contract liabilities related to open franchises is 8.4 years.

Significant changes in contract liabilities are as follows (in thousands):



Contract liability at December 31, 2020	$	34,201
Revenue recognized during the period	(4,570)
New deferrals(1)	14,978
Contract liability at September 30, 2021	44,609

(1) Initial Franchise Fees where the consideration is received from the customer for services which are to be transferred to the Franchisee over the expected life of the Franchise Agreement

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

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-Name Accounting Standards Codification
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+ Details

Franchise Fees Receivable

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Franchise Fees Receivable

The balance of Franchise fees receivable included in Receivable from franchisees consisted of the following (in thousands):


	September 30, 2021		December 31, 2020
Franchise fees receivable(1)	$	35,555	$	25,757
Less: Unamortized discount(1)	(8,569)		(6,553)
Less: Allowance for uncollectible franchise fees(1)	(181)		(149)
Net franchise fees receivable(1)	$	26,805	$	19,055

(1) Includes both the current and long term portion of this balance

Activity in the allowance for uncollectible franchise fees was as follows (in thousands):


Balance at December 31, 2020	$	149
Charges to bad debts	516
Write offs	(484)
Balance at September 30, 2021	$	181

Balance at December 31, 2019	$	52
Charges to bad debts	182
Write offs	(127)
Balance at September 30, 2020	$	107

Allowance for Uncollectible Agency Fees

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Allowance for Uncollectible Agency Fees

Allowance for Uncollectible Agency FeesActivity in the allowance for uncollectible Agency Fees was as follows (in thousands):


Balance at December 31, 2020	$	468
Charges to bad debts	1,309
Write offs	(1,270)
Balance at September 30, 2021	$	507

Balance at December 31, 2019	$	178
Charges to bad debts	822
Write offs	(541)
Balance at September 30, 2020	$	459

Property and equipment

9 Months Ended

Sep. 30, 2021

Property, Plant and Equipment [Abstract]

Property and equipment

Property and equipmentProperty and equipment consisted of the following (in thousands):


	September 30, 2021		December 31, 2020
Furniture & fixtures	$	6,307	$	4,404
Computer equipment	3,173		2,453
Network equipment	514		352
Phone system	937		937
Leasehold improvements	21,760		16,534
Total	32,691		24,680
Less accumulated depreciation	(10,897)		(8,030)
Property and equipment, net	$	21,794	$	16,650

Debt

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Debt

On July 21, 2021, the Company refinanced its $25.0 million revolving credit facility and $80.0 million term note payable to a $50.0 million revolving credit facility and $100.0 million term note payable to finance general corporate purposes and the special dividend. The Company also has the right, subject to approval by the administrative agent and each issuing bank, to increase the commitments under the credit facilities by an additional $50.0 million.

The $50.0 million revolving credit facility accrues interest on amounts drawn at an initial interest rate of LIBOR plus 2.50%, then at an interest rate determined by the Company's leverage ratio for the preceding period. At September

30, 2021 the Company was accruing interest at LIBOR plus 250 basis points. At September 30, 2021, the Company had $25.0 million drawn against the revolving credit facility and had a letter of credit of $0.2 million applied against the maximum borrowing availability, payable on July 21, 2026. Thus, amounts available to draw totaled $24.8 million. The revolving credit facility is collateralized by substantially all the Company’s assets, which includes rights to future commissions.

The term note is payable in quarterly installments of $0.6 million the first twelve months, $1.3 million the next twelve months, $1.9 million the next twelve months, and $2.5 million the last twenty-four months, with a balloon payment on July 21, 2026. The note is collateralized by substantially all of the Company’s assets, which includes rights to future commissions. Interest is calculated initially at LIBOR plus 2.50%, then at an interest rate based on the Company's leverage ratio for the preceding period. At September 30, 2021 the Company was accruing interest at LIBOR plus 250 basis points.

The interest rate for each leverage ratio tier is as follows:


Leverage Ratio			Interest Rate
< 1.50x			LIBOR + 175 bps
> 1.50x			LIBOR + 200 bps
> 2.50x			LIBOR + 225 bps
> 3.50x			LIBOR + 250 bps

Maturities of the term note payable for the next five years are as follows (in thousands):


	Amount
2021	$	625
2022	4,375
2023	6,875
2024	9,375
2025	10,000
2026	68,125
Total	$	99,375

The Company’s note payable agreement contains certain restrictions and covenants. Under these restrictions, the Company is limited in the amount of debt incurred and distributions payable. As of September 30, 2021, the Company's maximum allowable trailing twelve months debt-to-EBITDA ratio, as defined by the credit agreement, was 4.5x. In addition, the credit agreement contains certain change of control provisions that, if broken, would trigger a default. Finally, the Company must maintain certain financial ratios. As of September 30, 2021, the Company was in compliance with these covenants.

Because of both instruments’ variable interest rate, the note payable balance at September 30, 2021 and December 31, 2020, approximates fair value using Level 2 inputs, described below.

The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described as follows:

•Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets.

•Level 2—Significant other observable inputs other than Level 1 prices such as quoted prices in markets that are not active, quoted prices for similar assets or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset.

•Level 3—Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes As a result of the Reorganization Transactions and the Offering, GSHD became the sole managing member of GF, which is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, GF is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by GF is passed through to and included in the taxable income or loss of its members, including GSHD, on a pro rata basis. GSHD is subject to U.S. federal income taxes, in addition to state and local income taxes, with respect to GSHD's allocable share of income of GF. Income tax expense (benefit) Provision for/(benefit from) income taxes for the three and nine months ended September 30, 2021 was $(2,575) thousand and $(2,646) thousand compared to $(331) thousand and $(612) thousand for the three and nine months ended September 30, 2020. The effective tax rate was (92)% and (55)% for the three and nine months ended September 30, 2021 and (5)% and (5)% for the three and nine months ended September 30, 2020. The decrease in the effective tax rate for the three and nine months ended September 30, 2021 compared to the three and nine months ended September 30, 2020 was primarily due to a increase in exercises of employee stock options, resulting in excess tax-deductible expenses. Deferred taxes Deferred tax assets at September 30, 2021 were $114.4 million compared to $73.4 million at December 31, 2020. The primary contributing factor to the increase in deferred tax assets is additional redemptions of LLC Units of GF for shares of Class A common stock of GSHD during the nine months ended September 30, 2021. Tax Receivable Agreement GF intends to make an election under Section 754 of the Internal Revenue Code of 1986, as amended, and the regulations thereunder (the “Code”) effective for each taxable year in which a redemption or exchange of LLC Units and corresponding Class B common stock for shares of Class A common stock occurs. Future taxable redemptions or exchanges are expected to result in tax basis adjustments to the assets of GF that will be allocated to the Company and thus produce favorable tax attributes. These tax attributes would not be available to GSHD in the absence of those transactions. The anticipated tax basis adjustments are expected to reduce the amount of tax that GSHD would otherwise be required to pay in the future. GSHD entered into a tax receivable agreement with the Pre-IPO LLC Members on May 1, 2018 that provides for the payment by GSHD to the Pre-IPO LLC Members of 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax or franchise tax that GSHD actually realizes as a result of (i) any increase in tax basis in GSHD's assets and (ii) tax benefits related to imputed interest deemed arising as a result of payments made under the tax receivable agreement. During the three and nine months ended September 30, 2021, an aggregate of 348,120 and 1,209,420 LLC Units, respectively, were redeemed by the Pre-IPO LLC Members for newly issued shares of Class A common stock. In connection with these redemptions, GSHD received 348,120 and 1,209,420 LLC Units, which resulted in an increase in the tax basis of its investment in GF subject to the provisions of the tax receivable agreement. The Company recognized a liability for the TRA Payments due to the Pre-IPO LLC Members, representing 85% of the aggregate tax benefits the Company expects to realize from the tax basis increases related to the redemptions of LLC Units, after concluding it was probable that such TRA Payments would be paid based on its estimates of future taxable income. As of September 30, 2021, the total amount of TRA Payments due to the Pre-IPO LLC Members under the tax receivable agreement was $93.5 million, of which $2.0 million was current and included in Accounts payables and accrued expenses on the Consolidated Balance Sheet. Future exchanges of LLC Units for Class A common stock will result in additional TRA payments. Uncertain tax positions GSHD has determined there are no material uncertain tax positions as of September 30, 2021.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Stockholders' Equity

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Stockholders' Equity

Class A Common Stock

GSHD has a total of 19,786 thousand shares of its Class A common stock outstanding at September 30, 2021. Each share of Class A common stock holds economic rights and entitles its holder to one vote per share on all matters submitted to a vote of the stockholders of GSHD.

Class B Common Stock

GSHD has a total of 17,239 thousand shares of its Class B common stock outstanding at September 30, 2021. Each share of Class B common stock has no economic rights but entitles its holder to one vote per share on all matters submitted to a vote of the stockholders of GSHD.

Holders of Class A common stock and Class B common stock vote together as a single class on all matters presented to GSHD's shareholders for their vote or approval, except as otherwise required by applicable law, by agreement, or by GSHD's certificate of incorporation.

Earnings Per Share

The following table sets forth the calculation of basic earnings per share ("EPS") based on net income attributable to GSHD for the three and nine months ended September 30, 2021 and 2020, divided by the basic weighted average number of Class A common stock as of September 30, 2021 and September 30, 2020 (in thousands, except per share amounts). Diluted earnings per share of Class A common stock is computed by dividing net income attributable to GSHD by the weighted average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities (in thousands, except per share amounts). The Company has not included the effects of conversion of Class B shares to Class A shares in the diluted EPS calculation using the "if-converted" method, because doing so has no impact on diluted EPS.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Numerator:
Income before taxes	$	2,793	$	6,394	$	4,769	$	13,203
Less: income before taxes attributable to non-controlling interests	1,332		3,458		2,288		7,325
Income before taxes attributable to GSHD	1,461		2,936		2,481		5,878
Less: income tax expense (benefit) attributable to GSHD	(2,575)		(331)		(2,646)		(612)
Net income attributable to GSHD	$	4,036	$	3,267	$	5,127	$	6,490
Denominator:
Weighted average shares of Class A common stock outstanding - basic	19,559		17,376		18,903		16,466
Effect of dilutive securities:
Stock options(1)	1,647		1,539		1,667		1,460
Weighted average shares of Class A common stock outstanding - diluted	21,206		18,915		20,570		17,926

Earnings per share of Class A common stock - basic	$	0.21	$	0.19	$	0.27	$	0.39
Earnings per share of Class A common stock - diluted	$	0.19	$	0.17	$	0.25	$	0.36

(1) 41 thousand and 66 thousand stock options were excluded from the computation of diluted earnings per share of Class A common stock for the three and nine months ended September 30, 2021, respectively, because the effect would have been anti-dilutive.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
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+ Details

Non-controlling interest

9 Months Ended

Sep. 30, 2021

Noncontrolling Interest [Abstract]

Non-controlling interest

Following the Offering, GSHD became the sole managing member of GF and, as a result, it consolidates the financial results of GF. GSHD reports a non-controlling interest representing the economic interest in GF held by the other members of GF.

On a quarterly basis, GF makes distributions to the LLC Unit holders on a pro rata basis to facilitate the LLC Unit holder's quarterly tax payments. For the three and nine months ended September 30, 2021, GF made no distributions to LLC Unit holders. For the three and nine months ended September 30, 2020, GF made distributions of $1.6 million and $4.8 million, of which $0.8 million and $2.7 million were made to Pre-IPO LLC Members. The remaining $0.7 million and $2.2 million were made to GSHD and were eliminated in consolidation.

Under the amended and restated Goosehead Financial, LLC Agreement, the Pre-IPO LLC Members have the right, from and after the completion of the Offering (subject to the terms of the amended and restated Goosehead Financial, LLC Agreement), to require GSHD to redeem all or a portion of their LLC Units for, at GSHD's election, newly-issued shares of Class A common stock on a one-for-one basis or a cash payment equal to the volume weighted average market price of one share of GSHD's Class A common stock for each LLC Unit redeemed (subject to customary adjustments, including for stock splits, stock dividends and reclassifications) in accordance with the terms of the amended and restated Goosehead Financial, LLC Agreement. Additionally, in the event of a redemption request by a Pre-IPO LLC Member, GSHD may, at its option, effect a direct exchange of cash or Class A common stock for LLC Units in lieu of such a redemption. Shares of Class B common stock will be cancelled on a one-for-one basis if GSHD, at the election of a Pre-IPO LLC Member, redeems or exchanges LLC Units of such Pre-IPO LLC Member pursuant to the terms of the amended and restated Goosehead Financial, LLC Agreement. Except for transfers to GSHD pursuant to the amended and restated Goosehead Financial, LLC Agreement or to certain permitted transferees, the Pre-IPO LLC Members are not permitted to sell, transfer or otherwise dispose of any LLC Units or shares of Class B common stock.

During the three and nine months ended September 30, 2021, an aggregate of 348 thousand and 1,209 thousand LLC Units were redeemed by the non-controlling interest holders. Pursuant to the GF LLC Agreement, GSHD issued 348 thousand and 1,209 thousand shares of Class A common stock in connection with these redemptions and received 348 thousand and 1,209 thousand LLC Interests, increasing GSHD's ownership interest in GF. Simultaneously, and in connection with these redemptions, 348 thousand and 1,209 thousand shares of Class B common stock were surrendered and cancelled.

The following table summarizes the ownership interest in GF as of September 30, 2021 (in thousands):


	September 30, 2021
	LLC Units	Ownership %
Number of LLC Units held by GSHD	19,786	53.4%
Number of LLC Units held by non-controlling interest holders	17,239	46.6%
Number of LLC Units outstanding	37,025	100.0%

The weighted average ownership percentages for the applicable reporting periods are used to attribute net income to GSHD and the non-controlling interest holders. The non-controlling interest holders' weighted average ownership percentage for the three and nine months ended September 30, 2021 was 47.0% and 48.6%, respectively.

The following table summarizes the effects of changes in ownership in GF on the equity of GSHD for the three and nine months ended September 30, 2021 and 2020 as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net income attributable to Goosehead Insurance Inc.	$	4,036	$	3,267	$	5,127	$	6,490
Transfers (to) from non-controlling interests:
Decrease in additional paid-in capital as a result of the redemption of LLC interests	(1,144)		(577)		(2,673)		(2,208)
Increase in additional paid-in capital as a result of activity under employee stock purchase plan	194		142		613		396
Total effect of changes in ownership interest on equity attributable to Goosehead Insurance Inc.	$	3,086	$	2,832	$	3,067	$	4,678

Equity-Based Compensation

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Equity-Based Compensation

Stock option expense was $1.9 million and $5.6 million for the three and nine months ended September 30, 2021. Stock option expense was $1.4 million and $3.3 million for the three and nine months ended September 30, 2020.

On January 4, 2021, the Company granted an additional 153,500 stock options to its Board of Directors and Managing Directors at an exercise price equal to $131.87 per share. The weighted average grant date fair value of $47.43 per option was determined using the Black-Scholes valuation model using the following weighted average assumptions:


Expected volatility	45	%
Expected dividend yield	—	%
Expected term (in years)	4.25
Risk-free interest rate	0.29	%

Dividends

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Dividends

On July 28, 2021, GF approved an extraordinary dividend in the aggregate amount of $60.0 million payable to holders of LLC Units, including GSHD. The board of directors of the Company subsequently declared an extraordinary dividend of $1.63 (rounded) to all holders of Class A common stock of GSHD with a record date of August 9, 2021, which was paid on August 23, 2021. A summary of the total amounts declared and paid by GF is as follows (in thousands):


	LLC Units held as of August 9, 2021	Dividend paid
Class A common stockholders	19,429	$	31,657
Class B common stockholders via LLC Units held	17,401	28,343
Total	36,830	60,000

Any future extraordinary dividends will be declared at the sole discretion of the Company as GF's managing member with respect to GF and the Company's board of directors with respect to the Company. In determining whether a future extraordinary dividend will be declared by the Company, the board of directors may, at its sole discretion, consider the following: the Company's financial condition and operating results, the Company's available cash and current and anticipated cash needs, the Company's capital requirements, any contractual, legal, tax and regulatory restrictions, general economic and business conditions, and such other factors or conditions as the board of directors deems relevant.

Segment Information

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment Information

Segment InformationThe Company has two reportable Segments: Corporate Channel and Franchise Channel. The Corporate Channel consists of company-owned and financed operations with employees who are hired, trained, and managed by Goosehead. The Franchise Channel network consists of Franchisee operations that are owned and managed by individual business owners. These business owners have a contractual relationship with Goosehead to use the Company's processes, systems, and back-office support team to sell insurance and manage their business. In exchange, Goosehead is entitled to an Initial Franchise Fee and ongoing royalty fees. Allocations of contingent commissions and certain operating expenses are based on reasonable assumptions and estimates primarily using revenue, headcount and other information. The Company’s chief operating decision maker uses net income before interest, income taxes, depreciation and amortization, adjusted to exclude equity-based compensation and other non-operating items, including, among other things, certain non-cash charges and certain non-recurring or non-operating gains or losses (“Adjusted EBITDA”) as a performance measure to manage resources and make decisions about the business. Summarized financial information concerning the Company’s reportable Segments is shown in the following tables (in thousands). There are no intersegment sales, only interest income and interest expense related to an intersegment line of credit, all of which eliminate in consolidation. The “Other” column includes any income and expenses not allocated to reportable Segments and corporate-related items, including equity-based compensation, certain legal expenses and interest related to the note payable.


	Franchise Channel		Corporate Channel		Other		Total
Three months ended September 30, 2021
Revenues:
Commissions and agency fees
Renewal Commissions	$	—	$	10,969	$	—	$	10,969
Agency Fees	—		3,050		—		3,050
New Business Commissions	—		6,013		—		6,013
Contingent Commissions	1,734		654		—		2,388
Total Commissions and Agency Fees	1,734		20,686		—		22,420
Franchise revenue
Renewal Royalty Fees	13,206		—		—		13,206
New Business Royalty Fees	4,003		—		—		4,003
Initial Franchise Fees	1,680		—		—		1,680
Other Income	71		—		—		71
Total Franchise Revenues	18,960		—		—		18,960
Interest income
Interest Income	301		—		—		301
Total Interest Income	301		—		—		301
Total Revenues	20,995		20,686		—		41,681
Operating expenses:
Employee compensation and benefits, excluding equity based compensation	9,051		15,176		—		24,227
General and administrative expenses	3,908		5,035		1,198		10,141
Bad debts	220		512		—		732
Total Operating Expenses	13,179		20,723		1,198		35,100
Adjusted EBITDA	7,816		(37)		(1,198)		6,581
Other income (expense)	7		—		—		7
Equity based compensation	—		—		(1,851)		(1,851)
Interest expense	—		—		(756)		(756)
Depreciation and amortization	(759)		(429)		—		(1,188)
Taxes	—		—		2,575		2,575
Net income (loss)	$	7,064	$	(466)	$	(1,230)	$	5,368
September 30, 2021
Total Assets	$	45,700	$	43,257	$	158,183	$	247,140


	Franchise Channel		Corporate Channel		Other		Total
Three months ended September 30, 2020
Revenues:
Commissions and agency fees
Renewal Commissions	$	—	$	7,931	$	—	$	7,931
Agency Fees	—		2,491		—		2,491
New Business Commissions	—		4,790		—		4,790
Contingent Commissions	2,662		1,511		—		4,173
Total Commissions and Agency Fees	2,662		16,723		—		19,385
Franchise revenue
Renewal Royalty Fees	8,117		—		—		8,117
New Business Royalty Fees	3,090		—		—		3,090
Initial Franchise Fees	1,152		—		—		1,152
Other Income	59		—		—		59
Total Franchise Revenues	12,418		—		—		12,418
Interest income
Interest Income	212		—		—		212
Total Interest Income	212		—		—		212
Total Revenues	15,292		16,723		—		32,015
Operating expenses:
Employee compensation and benefits, excluding equity based compensation	6,552		9,933		—		16,485
General and administrative expenses	2,329		2,781		762		5,872
Bad debts	45		331		—		376
Total Operating Expenses	8,926		13,045		762		22,733
Adjusted EBITDA	6,366		3,678		(762)		9,282
Other income (expense)	10		—		—		10
Equity based compensation	—		—		(1,416)		(1,416)
Interest expense	—		—		(582)		(582)
Depreciation and amortization	(473)		(427)		—		(900)
Taxes	—		—		331		331
Net income (loss)	$	5,903	$	3,251	$	(2,429)	$	6,725
September 30, 2020
Total Assets	$	40,578	$	24,977	$	54,399	$	119,954


	Franchise Channel		Corporate Channel		Other		Total
Nine months ended September 30, 2021
Revenues:
Commissions and agency fees
Renewal Commissions	$	—	$	29,036	$	—	$	29,036
Agency Fees	—		8,579		—		8,579
New Business Commissions	—		16,573		—		16,573
Contingent Commissions	4,986		1,833		—		6,819
Total Commissions and Agency Fees	4,986		56,021		—		61,007
Franchise revenue
Renewal Royalty Fees	33,622		—		—		33,622
New Business Royalty Fees	10,840		—		—		10,840
Initial Franchise Fees	4,570		—		—		4,570
Other Income	202		—		—		202
Total Franchise Revenue	49,234		—		—		49,234
Interest income
Interest Income	841		—		—		841
Total Interest Income	841		—		—		841
Total	55,061		56,021		—		111,082
Operating expenses:
Employee compensation and benefits, excluding equity-based compensation	24,640		39,578		—		64,218
General and administrative expenses	13,048		13,943		2,558		29,549
Bad debts	516		1,309		—		1,825
Total	38,204		54,830		2,558		95,592
Adjusted EBITDA	16,857		1,191		(2,558)		15,490
Other income (expense)	38		108		—		146
Equity based compensation	—		—		(5,644)		(5,644)
Interest expense	—		—		(1,903)		(1,903)
Depreciation and amortization	(2,134)		(1,186)		—		(3,320)
Taxes	—		—		2,646		2,646
Net income (loss)	$	14,761	$	113	$	(7,459)	$	7,415
At September 30, 2021:
Total Assets	$	45,700	$	43,257	$	158,183	$	247,140


	Franchise Channel		Corporate Channel		Other		Total
Nine months ended September 30, 2020
Revenues:
Commissions and agency fees
Renewal Commissions	$	—	$	21,382	$	—	$	21,382
Agency Fees	—		6,362		—		6,362
New Business Commissions	—		12,452		—		12,452
Contingent Commissions	6,130		3,118		—		9,248
Total Commissions and Agency Fees	6,130		43,314		—		49,444
Franchise revenue
Renewal Royalty Fees	21,406		—		—		21,406
New Business Royalty Fees	7,737		—		—		7,737
Initial Franchise Fees	3,031		—		—		3,031
Other Income	173		—		—		173
Total Franchise Revenues	32,347		—		—		32,347
Interest income
Interest Income	573		—		—		573
Total Interest Income	573		—		—		573
Total Revenues	39,050		43,314		—		82,364
Operating expenses:
Employee compensation and benefits, excluding equity based compensation	18,413		25,565		—		43,978
General and administrative expenses	6,488		8,111		2,509		17,108
Bad debts	182		822		—		1,004
Total Operating Expenses	25,083		34,498		2,509		62,090
Adjusted EBITDA	13,967		8,816		(2,509)		20,274
Other income (expense)	76		—		—		76
Equity based compensation	—		—		(3,330)		(3,330)
Interest expense	—		—		(1,665)		(1,665)
Depreciation and amortization	(1,182)		(970)		—		(2,152)
Taxes	—		—		612		612
Net income (loss)	$	12,861	$	7,846	$	(6,892)	$	13,815
At September 30, 2020:
Total Assets	$	40,578	$	24,977	$	54,399	$	119,954

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Litigation	9 Months Ended
Litigation	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Litigation	LitigationFrom time to time, GSHD may be involved in various legal proceedings, lawsuits and claims incidental to the conduct of the Company's business. The amount of any loss from the ultimate outcomes is not probable or reasonably estimable. It is the opinion of management that the resolution of outstanding claims will not have a material adverse effect on the financial position or results of operations of the Company.

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2021
Accounting Policies [Abstract]
Basis of Combination	All intercompany accounts and transactions have been eliminated in consolidation.
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the annual disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated financial positions at September 30, 2021, the condensed consolidated results of operations, stockholders' equity and statements of cash flows for the three and nine months ended September 30, 2021 and 2020. The interim period condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements that are included in the Annual Report on Form 10-K. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that can be expected for the entire year. The Company experiences seasonal fluctuations of its revenue due to the timing of contingent commission revenue recognition and trends in housing market activity.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported period. Accordingly, actual results could differ from those estimates as more information becomes known.
Income Taxes	Income Taxes The Company accounts for income taxes pursuant to the asset and liability method which requires the recognition of deferred income tax assets and liabilities related to the expected future tax consequences arising from temporary differences between the carrying amounts and tax bases of assets and liabilities based on enacted statutory tax rates applicable to the periods in which the temporary differences are expected to reverse. Any effects of changes in income tax rates or laws are included in income tax expense in the period of enactment.
Restricted Cash	Restricted CashThe Company holds premiums received from the insured, but not yet remitted to the insurance Carrier in a fiduciary capacity.
Recently Issued and Adopted Accounting Pronouncements	Recently Issued Accounting Pronouncements Reference Rate Reform (ASU 2020-04): In March 2020, the Financial Accounting Standards Board issued ASU 2020-04. Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying U.S. GAAP if certain criteria are met to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued. ASU 2020-04 became effective on March 12, 2020 and may be applied prospectively through December 31, 2022. A substantial portion of our indebtedness bears interest at variable interest rates, primarily based on USD-LIBOR. The adoption of ASU 2020-04 did not have a material impact on our condensed consolidated financial statements. The standard will ease, if warranted, the administrative requirements for accounting for the future effects of the rate reform. Our debt agreement contains a provision to move to the Secured Overnight Financing Rate ("SOFR") if or when LIBOR is phased out. Recently adopted accounting pronouncements Simplifying the Accounting for Income Taxes (ASU 2019-12): In 2019, the Financial Accounting Standards Board issued ASU 2019-12 to simplify the accounting for income taxes. The guidance primarily addresses how to (1) recognize a deferred tax liability after we transition to or from the equity method of accounting, (2) evaluate if a step-up in the tax basis of goodwill is related to a business combination or is a separate transaction, (3) recognize all of the effects of a change in tax law in the period of enactment, including adjusting the estimated annual tax rate, and (4) include the amount of tax based on income in the income tax provision and any incremental amount as a tax not based on income for hybrid tax regimes. We adopted the guidance in the first quarter of 2021. The adoption did not have a material impact on our condensed consolidated financial statements or related disclosures.
Framework for Measuring Fair Value	The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described as follows: •Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets. •Level 2—Significant other observable inputs other than Level 1 prices such as quoted prices in markets that are not active, quoted prices for similar assets or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset. •Level 3—Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

- Definition

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

+ References + Details

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Schedule of Restrictions on Cash and Cash Equivalents


	September 30,
	2021		2020
Cash and cash equivalents	$	25,512	$	19,957
Restricted cash	1,179		1,378
Cash and cash equivalents, and restricted cash	$	26,691	$	21,335

Schedule of Reconciliation of Cash and Restricted Cash


	September 30,
	2021		2020
Cash and cash equivalents	$	25,512	$	19,957
Restricted cash	1,179		1,378
Cash and cash equivalents, and restricted cash	$	26,691	$	21,335

Revenue (Tables)

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

The following table disaggregates revenue by Segment and source (in thousands):


Three Months Ended September 30, 2021:	Franchise Channel		Corporate Channel		Total
Type of revenue stream:
Commissions and agency fees
Renewal Commissions	$	—	$	10,969	$	10,969
New Business Commissions	—		6,013		6,013
Agency Fees	—		3,050		3,050
Contingent Commissions	1,734		654		2,388
Franchise revenues
Renewal Royalty Fees	13,206		—		13,206
New Business Royalty Fees	4,003		—		4,003
Initial Franchise Fees	1,680		—		1,680
Other Franchise Revenues	71		—		71
Interest Income	301		—		301
Total Revenues	$	20,995	$	20,686	$	41,681

Timing of revenue recognition:
Transferred at a point in time	$	—	$	20,032	$	20,032
Transferred over time	20,995		654		21,649
Total Revenues	$	20,995	$	20,686	$	41,681


Three Months Ended September 30, 2020:	Franchise Channel		Corporate Channel		Total
Type of revenue stream:
Commissions and agency fees
Renewal Commissions	$	—	$	7,931	$	7,931
New Business Commissions	—		4,790		4,790
Agency Fees	—		2,491		2,491
Contingent Commissions	2,662		1,511		4,173
Franchise revenues
Renewal Royalty Fees	8,117		—		8,117
New Business Royalty Fees	3,090		—		3,090
Initial Franchise Fees	1,152		—		1,152
Other Franchise Revenues	59		—		59
Interest Income	212		—		212
Total Revenues	$	15,292	$	16,723	$	32,015

Timing of revenue recognition:
Transferred at a point in time	$	—	$	15,212	$	15,212
Transferred over time	15,292		1,511		16,803
Total Revenues	$	15,292	$	16,723	$	32,015


Nine Months Ended September 30, 2021:	Franchise Channel		Corporate Channel		Total
Type of revenue stream:
Commissions and agency fees
Renewal Commissions	$	—	$	29,036	$	29,036
New Business Commissions	—		16,573		16,573
Agency Fees	—		8,579		8,579
Contingent Commissions	4,986		1,833		6,819
Franchise revenues					—
Renewal Royalty Fees	33,622		—		33,622
New Business Royalty Fees	10,840		—		10,840
Initial Franchise Fees	4,570		—		4,570
Other Franchise Revenues	202		—		202
Interest Income	841		—		841
Total Revenues	$	55,061	$	56,021	$	111,082

Timing of revenue recognition:
Transferred at a point in time	$	—	$	54,188	$	54,188
Transferred over time	55,061		1,833		56,894
Total Revenues	$	55,061	$	56,021	$	111,082


Nine Months Ended September 30, 2020:	Franchise Channel		Corporate Channel		Total
Type of revenue stream:
Commissions and agency fees
Renewal Commissions	$	—	$	21,382	$	21,382
New Business Commissions	—		12,452		12,452
Agency Fees	—		6,362		6,362
Contingent Commissions	6,130		3,118		9,248
Franchise revenues
Renewal Royalty Fees	21,406		—		21,406
New Business Royalty Fees	7,737		—		7,737
Initial Franchise Fees	3,031		—		3,031
Other Franchise Revenues	173		—		173
Interest Income	573		—		573
Total Revenues	$	39,050	$	43,314	$	82,364

Timing of revenue recognition:
Transferred at a point in time	$	—	$	40,196	$	40,196
Transferred over time	39,050		3,118		42,168
Total Revenues	$	39,050	$	43,314	$	82,364

Schedule of Contract Balances

The following table provides information about receivables, cost to obtain, and contract liabilities from contracts with customers (in thousands):


	September 30, 2021	December 31, 2020		Increase/(decrease)
Cost to obtain franchise contracts(1)	1,871	$	1,412	$	459
Commissions and agency fees receivable, net(2)	8,349	18,604		(10,255)
Receivable from franchisees(2)	26,600	20,279		6,321
Contract liability(2)(3)	44,609	34,201		10,408

(1) Cost to obtain franchise contracts is included in Other assets on the condensed consolidated balance sheets.

(2) Includes both the current and long term portion of this balance.

(3) Initial Franchise Fees to be recognized over the life of the contract.

Significant changes in contract liabilities are as follows (in thousands):



Contract liability at December 31, 2020	$	34,201
Revenue recognized during the period	(4,570)
New deferrals(1)	14,978
Contract liability at September 30, 2021	44,609

(1) Initial Franchise Fees where the consideration is received from the customer for services which are to be transferred to the Franchisee over the expected life of the Franchise Agreement

Franchise Fees Receivable (Tables)

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Schedule of Franchise Fees Receivable

The balance of Franchise fees receivable included in Receivable from franchisees consisted of the following (in thousands):


	September 30, 2021		December 31, 2020
Franchise fees receivable(1)	$	35,555	$	25,757
Less: Unamortized discount(1)	(8,569)		(6,553)
Less: Allowance for uncollectible franchise fees(1)	(181)		(149)
Net franchise fees receivable(1)	$	26,805	$	19,055

(1) Includes both the current and long term portion of this balance

Activity in the allowance for uncollectible Agency Fees was as follows (in thousands):


Balance at December 31, 2020	$	468
Charges to bad debts	1,309
Write offs	(1,270)
Balance at September 30, 2021	$	507

Balance at December 31, 2019	$	178
Charges to bad debts	822
Write offs	(541)
Balance at September 30, 2020	$	459

Schedule of Allowance for Uncollectible Franchise Fees

Activity in the allowance for uncollectible franchise fees was as follows (in thousands):


Balance at December 31, 2020	$	149
Charges to bad debts	516
Write offs	(484)
Balance at September 30, 2021	$	181

Balance at December 31, 2019	$	52
Charges to bad debts	182
Write offs	(127)
Balance at September 30, 2020	$	107

Allowance for Uncollectible Agency Fees (Tables)

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Schedule of Allowance for Uncollectible Agency Fees

The balance of Franchise fees receivable included in Receivable from franchisees consisted of the following (in thousands):


	September 30, 2021		December 31, 2020
Franchise fees receivable(1)	$	35,555	$	25,757
Less: Unamortized discount(1)	(8,569)		(6,553)
Less: Allowance for uncollectible franchise fees(1)	(181)		(149)
Net franchise fees receivable(1)	$	26,805	$	19,055

(1) Includes both the current and long term portion of this balance

Activity in the allowance for uncollectible Agency Fees was as follows (in thousands):


Balance at December 31, 2020	$	468
Charges to bad debts	1,309
Write offs	(1,270)
Balance at September 30, 2021	$	507

Balance at December 31, 2019	$	178
Charges to bad debts	822
Write offs	(541)
Balance at September 30, 2020	$	459

Property and equipment (Tables)

9 Months Ended

Sep. 30, 2021

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment consisted of the following (in thousands):


	September 30, 2021		December 31, 2020
Furniture & fixtures	$	6,307	$	4,404
Computer equipment	3,173		2,453
Network equipment	514		352
Phone system	937		937
Leasehold improvements	21,760		16,534
Total	32,691		24,680
Less accumulated depreciation	(10,897)		(8,030)
Property and equipment, net	$	21,794	$	16,650

Debt (Tables)

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Schedule of Interest Rate Dependent of Leverage Ratio

The interest rate for each leverage ratio tier is as follows:


Leverage Ratio			Interest Rate
< 1.50x			LIBOR + 175 bps
> 1.50x			LIBOR + 200 bps
> 2.50x			LIBOR + 225 bps
> 3.50x			LIBOR + 250 bps

Schedule of Maturities of Note Payable

Maturities of the term note payable for the next five years are as follows (in thousands):


	Amount
2021	$	625
2022	4,375
2023	6,875
2024	9,375
2025	10,000
2026	68,125
Total	$	99,375

Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Schedule of Earnings Per Share, Basic and Diluted


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Numerator:
Income before taxes	$	2,793	$	6,394	$	4,769	$	13,203
Less: income before taxes attributable to non-controlling interests	1,332		3,458		2,288		7,325
Income before taxes attributable to GSHD	1,461		2,936		2,481		5,878
Less: income tax expense (benefit) attributable to GSHD	(2,575)		(331)		(2,646)		(612)
Net income attributable to GSHD	$	4,036	$	3,267	$	5,127	$	6,490
Denominator:
Weighted average shares of Class A common stock outstanding - basic	19,559		17,376		18,903		16,466
Effect of dilutive securities:
Stock options(1)	1,647		1,539		1,667		1,460
Weighted average shares of Class A common stock outstanding - diluted	21,206		18,915		20,570		17,926

Earnings per share of Class A common stock - basic	$	0.21	$	0.19	$	0.27	$	0.39
Earnings per share of Class A common stock - diluted	$	0.19	$	0.17	$	0.25	$	0.36

Non-controlling interest (Tables)

9 Months Ended

Sep. 30, 2021

Noncontrolling Interest [Abstract]

Schedule of Ownership Interests

The following table summarizes the ownership interest in GF as of September 30, 2021 (in thousands):


	September 30, 2021
	LLC Units	Ownership %
Number of LLC Units held by GSHD	19,786	53.4%
Number of LLC Units held by non-controlling interest holders	17,239	46.6%
Number of LLC Units outstanding	37,025	100.0%

Effects of Changes in Ownership Interests on Equity

The following table summarizes the effects of changes in ownership in GF on the equity of GSHD for the three and nine months ended September 30, 2021 and 2020 as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net income attributable to Goosehead Insurance Inc.	$	4,036	$	3,267	$	5,127	$	6,490
Transfers (to) from non-controlling interests:
Decrease in additional paid-in capital as a result of the redemption of LLC interests	(1,144)		(577)		(2,673)		(2,208)
Increase in additional paid-in capital as a result of activity under employee stock purchase plan	194		142		613		396
Total effect of changes in ownership interest on equity attributable to Goosehead Insurance Inc.	$	3,086	$	2,832	$	3,067	$	4,678

Equity-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Stock Option Valuation Assumptions

The weighted average grant date fair value of $47.43 per option was determined using the Black-Scholes valuation model using the following weighted average assumptions:


Expected volatility	45	%
Expected dividend yield	—	%
Expected term (in years)	4.25
Risk-free interest rate	0.29	%

Dividends (Tables)

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Summary of Total Estimated Dividends to be Paid

A summary of the total amounts declared and paid by GF is as follows (in thousands):


	LLC Units held as of August 9, 2021	Dividend paid
Class A common stockholders	19,429	$	31,657
Class B common stockholders via LLC Units held	17,401	28,343
Total	36,830	60,000

Segment Information (Tables)

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Schedule of Segment Information


	Franchise Channel		Corporate Channel		Other		Total
Three months ended September 30, 2021
Revenues:
Commissions and agency fees
Renewal Commissions	$	—	$	10,969	$	—	$	10,969
Agency Fees	—		3,050		—		3,050
New Business Commissions	—		6,013		—		6,013
Contingent Commissions	1,734		654		—		2,388
Total Commissions and Agency Fees	1,734		20,686		—		22,420
Franchise revenue
Renewal Royalty Fees	13,206		—		—		13,206
New Business Royalty Fees	4,003		—		—		4,003
Initial Franchise Fees	1,680		—		—		1,680
Other Income	71		—		—		71
Total Franchise Revenues	18,960		—		—		18,960
Interest income
Interest Income	301		—		—		301
Total Interest Income	301		—		—		301
Total Revenues	20,995		20,686		—		41,681
Operating expenses:
Employee compensation and benefits, excluding equity based compensation	9,051		15,176		—		24,227
General and administrative expenses	3,908		5,035		1,198		10,141
Bad debts	220		512		—		732
Total Operating Expenses	13,179		20,723		1,198		35,100
Adjusted EBITDA	7,816		(37)		(1,198)		6,581
Other income (expense)	7		—		—		7
Equity based compensation	—		—		(1,851)		(1,851)
Interest expense	—		—		(756)		(756)
Depreciation and amortization	(759)		(429)		—		(1,188)
Taxes	—		—		2,575		2,575
Net income (loss)	$	7,064	$	(466)	$	(1,230)	$	5,368
September 30, 2021
Total Assets	$	45,700	$	43,257	$	158,183	$	247,140


	Franchise Channel		Corporate Channel		Other		Total
Three months ended September 30, 2020
Revenues:
Commissions and agency fees
Renewal Commissions	$	—	$	7,931	$	—	$	7,931
Agency Fees	—		2,491		—		2,491
New Business Commissions	—		4,790		—		4,790
Contingent Commissions	2,662		1,511		—		4,173
Total Commissions and Agency Fees	2,662		16,723		—		19,385
Franchise revenue
Renewal Royalty Fees	8,117		—		—		8,117
New Business Royalty Fees	3,090		—		—		3,090
Initial Franchise Fees	1,152		—		—		1,152
Other Income	59		—		—		59
Total Franchise Revenues	12,418		—		—		12,418
Interest income
Interest Income	212		—		—		212
Total Interest Income	212		—		—		212
Total Revenues	15,292		16,723		—		32,015
Operating expenses:
Employee compensation and benefits, excluding equity based compensation	6,552		9,933		—		16,485
General and administrative expenses	2,329		2,781		762		5,872
Bad debts	45		331		—		376
Total Operating Expenses	8,926		13,045		762		22,733
Adjusted EBITDA	6,366		3,678		(762)		9,282
Other income (expense)	10		—		—		10
Equity based compensation	—		—		(1,416)		(1,416)
Interest expense	—		—		(582)		(582)
Depreciation and amortization	(473)		(427)		—		(900)
Taxes	—		—		331		331
Net income (loss)	$	5,903	$	3,251	$	(2,429)	$	6,725
September 30, 2020
Total Assets	$	40,578	$	24,977	$	54,399	$	119,954


	Franchise Channel		Corporate Channel		Other		Total
Nine months ended September 30, 2021
Revenues:
Commissions and agency fees
Renewal Commissions	$	—	$	29,036	$	—	$	29,036
Agency Fees	—		8,579		—		8,579
New Business Commissions	—		16,573		—		16,573
Contingent Commissions	4,986		1,833		—		6,819
Total Commissions and Agency Fees	4,986		56,021		—		61,007
Franchise revenue
Renewal Royalty Fees	33,622		—		—		33,622
New Business Royalty Fees	10,840		—		—		10,840
Initial Franchise Fees	4,570		—		—		4,570
Other Income	202		—		—		202
Total Franchise Revenue	49,234		—		—		49,234
Interest income
Interest Income	841		—		—		841
Total Interest Income	841		—		—		841
Total	55,061		56,021		—		111,082
Operating expenses:
Employee compensation and benefits, excluding equity-based compensation	24,640		39,578		—		64,218
General and administrative expenses	13,048		13,943		2,558		29,549
Bad debts	516		1,309		—		1,825
Total	38,204		54,830		2,558		95,592
Adjusted EBITDA	16,857		1,191		(2,558)		15,490
Other income (expense)	38		108		—		146
Equity based compensation	—		—		(5,644)		(5,644)
Interest expense	—		—		(1,903)		(1,903)
Depreciation and amortization	(2,134)		(1,186)		—		(3,320)
Taxes	—		—		2,646		2,646
Net income (loss)	$	14,761	$	113	$	(7,459)	$	7,415
At September 30, 2021:
Total Assets	$	45,700	$	43,257	$	158,183	$	247,140


	Franchise Channel		Corporate Channel		Other		Total
Nine months ended September 30, 2020
Revenues:
Commissions and agency fees
Renewal Commissions	$	—	$	21,382	$	—	$	21,382
Agency Fees	—		6,362		—		6,362
New Business Commissions	—		12,452		—		12,452
Contingent Commissions	6,130		3,118		—		9,248
Total Commissions and Agency Fees	6,130		43,314		—		49,444
Franchise revenue
Renewal Royalty Fees	21,406		—		—		21,406
New Business Royalty Fees	7,737		—		—		7,737
Initial Franchise Fees	3,031		—		—		3,031
Other Income	173		—		—		173
Total Franchise Revenues	32,347		—		—		32,347
Interest income
Interest Income	573		—		—		573
Total Interest Income	573		—		—		573
Total Revenues	39,050		43,314		—		82,364
Operating expenses:
Employee compensation and benefits, excluding equity based compensation	18,413		25,565		—		43,978
General and administrative expenses	6,488		8,111		2,509		17,108
Bad debts	182		822		—		1,004
Total Operating Expenses	25,083		34,498		2,509		62,090
Adjusted EBITDA	13,967		8,816		(2,509)		20,274
Other income (expense)	76		—		—		76
Equity based compensation	—		—		(3,330)		(3,330)
Interest expense	—		—		(1,665)		(1,665)
Depreciation and amortization	(1,182)		(970)		—		(2,152)
Taxes	—		—		612		612
Net income (loss)	$	12,861	$	7,846	$	(6,892)	$	13,815
At September 30, 2020:
Total Assets	$	40,578	$	24,977	$	54,399	$	119,954

Organization - Narrative (Details)	3 Months Ended		9 Months Ended
Organization - Narrative (Details)	Sep. 30, 2021 location franchise	Sep. 30, 2020 location franchise	Sep. 30, 2021 location franchise	Sep. 30, 2020 location franchise
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Corporate-owned locations (in locations) \| location	12	9	12	9
Franchise locations sold (in franchises)	92	110
Operating franchise locations (in franchises)	1,139	823	1,139	823
Franchises purchased (in franchises)	0	0	0	0

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Accounting Policies [Abstract]
Restricted cash	$ 1,179	$ 1,378

Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Cash and cash equivalents	$ 25,512	$ 24,913	$ 19,957
Restricted cash	1,179		1,378
Cash and cash equivalents, and restricted cash	$ 26,691	$ 26,236	$ 21,335	$ 15,260

Revenue - Narrative (Details)	9 Months Ended
Revenue - Narrative (Details)	Sep. 30, 2021
Revenue from Contract with Customer [Abstract]
Amortization period	10 years
Franchise license revenue	10 years
Weighted average remaining amortization period for contract liabilities	8 years 4 months 24 days

Revenue - Disaggregation of Revenue (Details) - USD ($)	3 Months Ended		9 Months Ended
Revenue - Disaggregation of Revenue (Details) - USD ($)	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Revenues	$ 41,681,000	$ 32,015,000	$ 111,082,000	$ 82,364,000
Renewal Commissions
Disaggregation of Revenue [Line Items]
Revenues	10,969,000	7,931,000	29,036,000	21,382,000
New Business Commissions
Disaggregation of Revenue [Line Items]
Revenues	6,013,000	4,790,000	16,573,000	12,452,000
Agency Fees
Disaggregation of Revenue [Line Items]
Revenues	3,050,000	2,491,000	8,579,000	6,362,000
Contingent Commissions
Disaggregation of Revenue [Line Items]
Revenues	2,388,000	4,173,000	6,819,000	9,248,000
Renewal Royalty Fees
Disaggregation of Revenue [Line Items]
Revenues	13,206,000	8,117,000	33,622,000	21,406,000
New Business Royalty Fees
Disaggregation of Revenue [Line Items]
Revenues	4,003,000	3,090,000	10,840,000	7,737,000
Initial Franchise Fees
Disaggregation of Revenue [Line Items]
Revenues	1,680,000	1,152,000	4,570,000	3,031,000
Other Franchise Revenues
Disaggregation of Revenue [Line Items]
Revenues	71,000	59,000	202,000	173,000
Interest income
Disaggregation of Revenue [Line Items]
Revenues	301,000	212,000	841,000	573,000
Transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenues	20,032,000	15,212,000	54,188,000	40,196,000
Transferred over time
Disaggregation of Revenue [Line Items]
Revenues	21,649,000	16,803,000	56,894,000	42,168,000
Franchise Channel
Disaggregation of Revenue [Line Items]
Revenues	20,995,000	15,292,000	55,061,000	39,050,000
Franchise Channel \| Renewal Commissions
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Franchise Channel \| New Business Commissions
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Franchise Channel \| Agency Fees
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Franchise Channel \| Contingent Commissions
Disaggregation of Revenue [Line Items]
Revenues	1,734,000	2,662,000	4,986,000	6,130,000
Franchise Channel \| Renewal Royalty Fees
Disaggregation of Revenue [Line Items]
Revenues	13,206,000	8,117,000	33,622,000	21,406,000
Franchise Channel \| New Business Royalty Fees
Disaggregation of Revenue [Line Items]
Revenues	4,003,000	3,090,000	10,840,000	7,737,000
Franchise Channel \| Initial Franchise Fees
Disaggregation of Revenue [Line Items]
Revenues	1,680,000	1,152,000	4,570,000	3,031,000
Franchise Channel \| Other Franchise Revenues
Disaggregation of Revenue [Line Items]
Revenues	71,000	59,000	202,000	173,000
Franchise Channel \| Interest income
Disaggregation of Revenue [Line Items]
Revenues	301,000	212,000	841,000	573,000
Franchise Channel \| Transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Franchise Channel \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenues	20,995,000	15,292,000	55,061,000	39,050,000
Corporate Channel
Disaggregation of Revenue [Line Items]
Revenues	20,686,000	16,723,000	56,021,000	43,314,000
Corporate Channel \| Renewal Commissions
Disaggregation of Revenue [Line Items]
Revenues	10,969,000	7,931,000	29,036,000	21,382,000
Corporate Channel \| New Business Commissions
Disaggregation of Revenue [Line Items]
Revenues	6,013,000	4,790,000	16,573,000	12,452,000
Corporate Channel \| Agency Fees
Disaggregation of Revenue [Line Items]
Revenues	3,050,000	2,491,000	8,579,000	6,362,000
Corporate Channel \| Contingent Commissions
Disaggregation of Revenue [Line Items]
Revenues	654,000	1,511,000	1,833,000	3,118,000
Corporate Channel \| Renewal Royalty Fees
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Corporate Channel \| New Business Royalty Fees
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Corporate Channel \| Initial Franchise Fees
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Corporate Channel \| Other Franchise Revenues
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Corporate Channel \| Interest income
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Corporate Channel \| Transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenues	20,032,000	15,212,000	54,188,000	40,196,000
Corporate Channel \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenues	$ 654,000	$ 1,511,000	$ 1,833,000	$ 3,118,000

Revenue - Contract Balances (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Cost to obtain franchise contracts	$ 1,871		$ 1,412
Increase (decrease) in contract with customer, asset	459
Commissions and agency fees receivable, net	8,349		18,604
Increase (decrease) in commissions and agency fees receivable, net	(10,255)
Receivables from franchisees	26,600		20,279
Increase (decrease) in receivables from franchisees	6,321
Contract liability	44,609		$ 34,201
Increase (decrease) in contract liability	10,408	$ 6,789
Contract Liability [Roll Forward]
Contract liability at December 31, 2020	34,201
Revenue recognized during the period	(4,570)
New deferrals	14,978
Contract liability at September 30, 2021	$ 44,609

Franchise Fees Receivable - Balance of Franchise Fees Receivable (Details) - Franchise Fees Receivable - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Franchise fees receivable	$ 35,555	$ 25,757
Less: Unamortized discount	(8,569)	(6,553)
Less: Allowance for uncollectible franchise fees	(181)	(149)	$ (107)	$ (52)
Net franchise fees receivable	$ 26,805	$ 19,055

- Definition

Amount of allowance for credit loss on financing receivable. Excludes allowance for financing receivable covered under loss sharing agreement.

+ References + Details

- Definition

Amount, before allowance for credit loss, of financing receivable.

+ References + Details

Franchise Fees Receivable - Roll-Forward of Allowance (Details) - Franchise Fees Receivable - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 149	$ 52
Charges to bad debts	516	182
Write offs	(484)	(127)
Ending balance	$ 181	$ 107

- Definition

Amount of allowance for credit loss on financing receivable. Excludes allowance for financing receivable covered under loss sharing agreement.

+ References + Details

Allowance for Uncollectible Agency Fees - Roll-Forward of Allowance (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Charges to bad debts	$ 732	$ 376	$ 1,825	$ 1,004
Agency Fees
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance			468	178
Charges to bad debts			1,309	822
Write offs			(1,270)	(541)
Ending balance	$ 507	$ 459	$ 507	$ 459

Property and equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 32,691	$ 24,680
Less accumulated depreciation	(10,897)	(8,030)
Property and equipment, net	21,794	16,650
Furniture & fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	6,307	4,404
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,173	2,453
Network equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	514	352
Phone system
Property, Plant and Equipment [Line Items]
Property and equipment, gross	937	937
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 21,760	$ 16,534

Debt - Narrative (Details)	9 Months Ended
Debt - Narrative (Details)	Sep. 30, 2021 USD ($)	Jul. 21, 2021 USD ($)	Jul. 20, 2021 USD ($)
Line of Credit
Debt Instrument [Line Items]
Additional commitments		$ 50,000,000
Letter of credit	$ 200,000
Remaining borrowing availability	24,800,000
Line of Credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing availability		50,000,000	$ 25,000,000
Revolver balance	$ 25,000,000
Secured Debt
Debt Instrument [Line Items]
Principal amount of debt		$ 100,000,000
EBITDA ratio	4.5
Notes Payable to Bank
Debt Instrument [Line Items]
Principal amount of debt			$ 80,000,000
Debt Repayment, First Twelve Months \| Secured Debt
Debt Instrument [Line Items]
Periodic payment	$ 600,000
Debt Repayment, Next 12 Months \| Secured Debt
Debt Instrument [Line Items]
Periodic payment	1,300,000
Debt Repayment, Following 12 Months \| Secured Debt
Debt Instrument [Line Items]
Periodic payment	1,900,000
Debt Repayment, Last 24 Months \| Secured Debt
Debt Instrument [Line Items]
Periodic payment	$ 2,500,000
LIBOR \| Greater than 1.50
Debt Instrument [Line Items]
Interest Rate	2.00%
LIBOR \| Secured Debt
Debt Instrument [Line Items]
Interest Rate	2.50%

Debt - Leverage (Details)	9 Months Ended
Debt - Leverage (Details)	Sep. 30, 2021
Less than 1.50
Debt Instrument [Line Items]
Leverage Ratio	1.50
Less than 1.50 \| LIBOR
Debt Instrument [Line Items]
Interest Rate	1.75%
Greater than 1.50
Debt Instrument [Line Items]
Leverage Ratio	1.50
Greater than 1.50 \| LIBOR
Debt Instrument [Line Items]
Interest Rate	2.00%
Greater than 2.50
Debt Instrument [Line Items]
Leverage Ratio	2.50
Greater than 2.50 \| LIBOR
Debt Instrument [Line Items]
Interest Rate	2.25%
Greater than 3.50
Debt Instrument [Line Items]
Leverage Ratio	3.50
Greater than 3.50 \| LIBOR
Debt Instrument [Line Items]
Interest Rate	2.50%

Debt - Schedule of Maturities of Note Payable (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Debt Disclosure [Abstract]
2021	$ 625
2022	4,375
2023	6,875
2024	9,375
2025	10,000
2026	68,125
Total	$ 99,375

Income Taxes - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
Income Taxes - Narrative (Details) - USD ($)	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Income Tax Contingency [Line Items]
Taxes	$ (2,575,000)	$ (331,000)	$ (2,646,000)	$ (612,000)
Effective income tax rate	(92.00%)	(5.00%)	(55.00%)	(5.00%)
Deferred income taxes, net	$ 114,376,000		$ 114,376,000		$ 73,363,000
Uncertain tax positions	0		$ 0
Tax Receivable Agreement
Income Tax Contingency [Line Items]
Percentage due to related parties			85.00%
Tax Receivable Agreement \| Pre-IPO LLC
Income Tax Contingency [Line Items]
Percentage due to related parties			85.00%
Due to related parties	93,500,000		$ 93,500,000
Due to related parties, current	$ 2,000,000		$ 2,000,000
LLC Units
Income Tax Contingency [Line Items]
Redemption of LLC Units (in shares)	348,000		1,209,000
LLC Units \| Noncontrolling interest holders
Income Tax Contingency [Line Items]
Redemption of LLC Units (in shares)	348,120		1,209,420

Stockholders' Equity - Narrative (Details) shares in Thousands	Sep. 30, 2021 vote shares	Dec. 31, 2020 shares
Class A Common Stock
Class of Stock [Line Items]
Common stock shares outstanding (in shares) \| shares	19,786	18,304
Vote per share (in votes) \| vote	1
Class B Common Stock
Class of Stock [Line Items]
Common stock shares outstanding (in shares) \| shares	17,239	18,447
Vote per share (in votes) \| vote	1

Stockholders' Equity - Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Pro forma earnings per share:
Income before taxes	$ 2,793	$ 6,394	$ 4,769	$ 13,203
Less: income before taxes attributable to non-controlling interests	1,332	3,458	2,288	7,325
Income before taxes attributable to GSHD	1,461	2,936	2,481	5,878
Less: income tax expense (benefit) attributable to GSHD	(2,575)	(331)	(2,646)	(612)
Net income attributable to GSHD	$ 4,036	$ 3,267	$ 5,127	$ 6,490
Weighted average shares of Class A common stock outstanding - basic (in shares)	19,559	17,376	18,903	16,466
Effect of dilutive securities, stock options (in shares)	1,647	1,539	1,667	1,460
Weighted average shares of Class A common stock outstanding - diluted (in shares)	21,206	18,915	20,570	17,926
Earnings per share of Class A common stock - basic (in dollars per share)	$ 0.21	$ 0.19	$ 0.27	$ 0.39
Earnings per share of Class A common stock - diluted (in dollars per share)	$ 0.19	0.17	$ 0.25	0.36
Antidilutive securities excluded from computation of earnings per share (in shares)	41		66
Class A Common Stock
Pro forma earnings per share:
Earnings per share of Class A common stock - basic (in dollars per share)	$ 0.21	0.19	$ 0.27	0.39
Earnings per share of Class A common stock - diluted (in dollars per share)	$ 0.19	$ 0.17	$ 0.25	$ 0.36

Non-controlling interest - Narrative (Details)		3 Months Ended		9 Months Ended
Non-controlling interest - Narrative (Details)	May 01, 2018	Sep. 30, 2021 USD ($) shares	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) shares	Sep. 30, 2020 USD ($)
Noncontrolling Interest [Line Items]
Distributions \| $		$ 0	$ 1,600,000	$ 0	$ 4,800,000
Noncontrolling interest holders
Noncontrolling Interest [Line Items]
Ownership interest held by non-controlling interest holders		0.470		0.486
LLC Units
Noncontrolling Interest [Line Items]
Conversion ratio	1
Redemption of LLC Units (in shares)		348,000		1,209,000
LLC Units \| Noncontrolling interest holders
Noncontrolling Interest [Line Items]
Redemption of LLC Units (in shares)		348,120		1,209,420
Class A Common Stock
Noncontrolling Interest [Line Items]
Redemption of LLC Units (in shares)		348,000		1,209,000
Class B Common Stock
Noncontrolling Interest [Line Items]
Redemption of LLC Units (in shares)		348,000		1,209,000
Pre-IPO LLC
Noncontrolling Interest [Line Items]
Distributions \| $			800,000		2,700,000
Goosehead Insurance, Inc. \| LLC Units
Noncontrolling Interest [Line Items]
Distributions \| $			$ 700,000		$ 2,200,000

Non-controlling interest - Ownership interests (Details) - shares		9 Months Ended
	Aug. 09, 2021	Sep. 30, 2021
Noncontrolling Interest [Line Items]
Number of LLC units outstanding (in shares)	36,830,000	37,025,000
Noncontrolling interest, ownership percentage		100.00%
Goosehead Financial, LLC
Noncontrolling Interest [Line Items]
Ownership interest held by Goosehead Insurance, Inc.		53.40%
Noncontrolling interest holders
Noncontrolling Interest [Line Items]
Ownership interest held by non-controlling interest holders		46.60%
Parent
Noncontrolling Interest [Line Items]
Number of LLC units outstanding (in shares)		19,786,000
Non-controlling interest
Noncontrolling Interest [Line Items]
Number of LLC units outstanding (in shares)		17,239,000

Non-controlling interest - Effect of changes in ownership interests on equity (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Noncontrolling Interest [Line Items]
Net income attributable to Goosehead Insurance Inc.	$ 4,036			$ 3,267			$ 5,127	$ 6,490
Decrease in additional paid-in capital as a result of the redemption of LLC interests	0	$ 0	$ 0	0	$ 0	$ 0
Increase in additional paid-in capital as a result of activity under employee stock purchase plan	194	214	205	142	138	116
Parent
Noncontrolling Interest [Line Items]
Net income attributable to Goosehead Insurance Inc.	4,036			3,267			5,127	6,490
Decrease in additional paid-in capital as a result of the redemption of LLC interests	(1,144)	(1,280)	(249)	(577)	(762)	(869)	(2,673)	(2,208)
Increase in additional paid-in capital as a result of activity under employee stock purchase plan	194	$ 214	$ 205	142	$ 138	$ 116	613	396
Total effect of changes in ownership interest on equity attributable to Goosehead Insurance Inc.	$ 3,086			$ 2,832			$ 3,067	$ 4,678

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

Equity-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
	Jan. 04, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense		$ 1,851	$ 1,416	$ 5,644	$ 3,330
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense		$ 1,900	$ 1,400	$ 5,600	$ 3,300
Stock Option \| Board of Directors and Managing Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)	153,500
Exercise price (in dollars per share)	$ 131.87
Grant date fair value (in dollars per share)	$ 47.43

Equity-Based Compensation - Stock Option Valuation Assumptions (Details) - Stock Option	Jan. 04, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	45.00%
Expected dividend yield	0.00%
Expected term (in years)	4 years 3 months
Risk-free interest rate	0.29%

Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands			9 Months Ended
	Aug. 09, 2021	Jul. 28, 2021	Sep. 30, 2021	Sep. 30, 2020
Dividends Payable [Line Items]
Dividends declared per share (in dollars per share)			$ 1.63	$ 1.15
LLC Units held (in shares)	36,830,000		37,025,000
Dividend paid	$ 60,000	$ 60,000
Class A Common Stock
Dividends Payable [Line Items]
Dividends declared per share (in dollars per share)		$ 1.63
LLC Units held (in shares)	19,429,000
Dividend paid	$ 31,657
Class B Common Stock
Dividends Payable [Line Items]
LLC Units held (in shares)	17,401,000
Dividend paid	$ 28,343

Segment Information - Schedule of Segment Information (Details)	3 Months Ended						9 Months Ended
	Sep. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Sep. 30, 2021 USD ($) segment	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)
Segment Reporting [Abstract]
Number of reportable segments \| segment							2
Revenues:
Revenues	$ 41,681,000			$ 32,015,000			$ 111,082,000	$ 82,364,000
Other Income	71,000			59,000			202,000	173,000
Interest Income	301,000			212,000			841,000	573,000
Operating Expenses:
Employee compensation and benefits, excluding equity based compensation	24,227,000			16,485,000			64,218,000	43,978,000
General and administrative expenses	10,141,000			5,872,000			29,549,000	17,108,000
Bad debts	732,000			376,000			1,825,000	1,004,000
Total Operating Expenses	35,100,000			22,733,000			95,592,000	62,090,000
Adjusted EBITDA	6,581,000			9,282,000			15,490,000	20,274,000
Other income (expense)	7,000			10,000			146,000	76,000
Equity based compensation	(1,851,000)			(1,416,000)			(5,644,000)	(3,330,000)
Interest expense	(756,000)			(582,000)			(1,903,000)	(1,665,000)
Depreciation and amortization	(1,188,000)			(900,000)			(3,320,000)	(2,152,000)
Tax expense (benefit)	2,575,000			331,000			2,646,000	612,000
Net Income	5,368,000	$ 3,136,000	$ (1,089,000)	6,725,000	$ 7,386,000	$ (296,000)	7,415,000	13,815,000
Total Assets	247,140,000			119,954,000			247,140,000	119,954,000	$ 185,837,000
Franchise Channel
Revenues:
Revenues	20,995,000			15,292,000			55,061,000	39,050,000
Corporate Channel
Revenues:
Revenues	20,686,000			16,723,000			56,021,000	43,314,000
Operating Segments \| Franchise Channel
Revenues:
Revenues	20,995,000			15,292,000			55,061,000	39,050,000
Other Income	71,000			59,000			202,000	173,000
Interest Income	301,000			212,000			841,000	573,000
Operating Expenses:
Employee compensation and benefits, excluding equity based compensation	9,051,000			6,552,000			24,640,000	18,413,000
General and administrative expenses	3,908,000			2,329,000			13,048,000	6,488,000
Bad debts	220,000			45,000			516,000	182,000
Total Operating Expenses	13,179,000			8,926,000			38,204,000	25,083,000
Adjusted EBITDA	7,816,000			6,366,000			16,857,000	13,967,000
Other income (expense)	7,000			10,000			38,000	76,000
Equity based compensation	0			0			0	0
Interest expense	0			0			0	0
Depreciation and amortization	(759,000)			(473,000)			(2,134,000)	(1,182,000)
Tax expense (benefit)	0			0			0	0
Net Income	7,064,000			5,903,000			14,761,000	12,861,000
Total Assets	45,700,000			40,578,000			45,700,000	40,578,000
Operating Segments \| Corporate Channel
Revenues:
Revenues	20,686,000			16,723,000			56,021,000	43,314,000
Other Income	0			0			0	0
Interest Income	0			0			0	0
Operating Expenses:
Employee compensation and benefits, excluding equity based compensation	15,176,000			9,933,000			39,578,000	25,565,000
General and administrative expenses	5,035,000			2,781,000			13,943,000	8,111,000
Bad debts	512,000			331,000			1,309,000	822,000
Total Operating Expenses	20,723,000			13,045,000			54,830,000	34,498,000
Adjusted EBITDA	(37,000)			3,678,000			1,191,000	8,816,000
Other income (expense)	0			0			108,000	0
Equity based compensation	0			0			0	0
Interest expense	0			0			0	0
Depreciation and amortization	(429,000)			(427,000)			(1,186,000)	(970,000)
Tax expense (benefit)	0			0			0	0
Net Income	(466,000)			3,251,000			113,000	7,846,000
Total Assets	43,257,000			24,977,000			43,257,000	24,977,000
Other
Revenues:
Revenues	0			0			0	0
Other Income	0			0			0	0
Interest Income	0			0			0	0
Operating Expenses:
Employee compensation and benefits, excluding equity based compensation	0			0			0	0
General and administrative expenses	1,198,000			762,000			2,558,000	2,509,000
Bad debts	0			0			0	0
Total Operating Expenses	1,198,000			762,000			2,558,000	2,509,000
Adjusted EBITDA	(1,198,000)			(762,000)			(2,558,000)	(2,509,000)
Other income (expense)	0			0			0	0
Equity based compensation	(1,851,000)			(1,416,000)			(5,644,000)	(3,330,000)
Interest expense	(756,000)			(582,000)			(1,903,000)	(1,665,000)
Depreciation and amortization	0			0			0	0
Tax expense (benefit)	2,575,000			331,000			2,646,000	612,000
Net Income	(1,230,000)			(2,429,000)			(7,459,000)	(6,892,000)
Total Assets	158,183,000			54,399,000			158,183,000	54,399,000
Renewal Commissions
Revenues:
Revenues	10,969,000			7,931,000			29,036,000	21,382,000
Renewal Commissions \| Franchise Channel
Revenues:
Revenues	0			0			0	0
Renewal Commissions \| Corporate Channel
Revenues:
Revenues	10,969,000			7,931,000			29,036,000	21,382,000
Renewal Commissions \| Operating Segments \| Franchise Channel
Revenues:
Revenues	0			0			0	0
Renewal Commissions \| Operating Segments \| Corporate Channel
Revenues:
Revenues	10,969,000			7,931,000			29,036,000	21,382,000
Renewal Commissions \| Other
Revenues:
Revenues	0			0			0	0
Agency Fees
Revenues:
Revenues	3,050,000			2,491,000			8,579,000	6,362,000
Agency Fees \| Franchise Channel
Revenues:
Revenues	0			0			0	0
Agency Fees \| Corporate Channel
Revenues:
Revenues	3,050,000			2,491,000			8,579,000	6,362,000
Agency Fees \| Operating Segments \| Franchise Channel
Revenues:
Revenues	0			0			0	0
Agency Fees \| Operating Segments \| Corporate Channel
Revenues:
Revenues	3,050,000			2,491,000			8,579,000	6,362,000
Agency Fees \| Other
Revenues:
Revenues	0			0			0	0
New Business Commissions
Revenues:
Revenues	6,013,000			4,790,000			16,573,000	12,452,000
New Business Commissions \| Franchise Channel
Revenues:
Revenues	0			0			0	0
New Business Commissions \| Corporate Channel
Revenues:
Revenues	6,013,000			4,790,000			16,573,000	12,452,000
New Business Commissions \| Operating Segments \| Franchise Channel
Revenues:
Revenues	0			0			0	0
New Business Commissions \| Operating Segments \| Corporate Channel
Revenues:
Revenues	6,013,000			4,790,000			16,573,000	12,452,000
New Business Commissions \| Other
Revenues:
Revenues	0			0			0	0
Contingent Commissions
Revenues:
Revenues	2,388,000			4,173,000			6,819,000	9,248,000
Contingent Commissions \| Franchise Channel
Revenues:
Revenues	1,734,000			2,662,000			4,986,000	6,130,000
Contingent Commissions \| Corporate Channel
Revenues:
Revenues	654,000			1,511,000			1,833,000	3,118,000
Contingent Commissions \| Operating Segments \| Franchise Channel
Revenues:
Revenues	1,734,000			2,662,000			4,986,000	6,130,000
Contingent Commissions \| Operating Segments \| Corporate Channel
Revenues:
Revenues	654,000			1,511,000			1,833,000	3,118,000
Contingent Commissions \| Other
Revenues:
Revenues	0			0			0	0
Commissions and agency fees
Revenues:
Revenues	22,420,000			19,385,000			61,007,000	49,444,000
Commissions and agency fees \| Operating Segments \| Franchise Channel
Revenues:
Revenues	1,734,000			2,662,000			4,986,000	6,130,000
Commissions and agency fees \| Operating Segments \| Corporate Channel
Revenues:
Revenues	20,686,000			16,723,000			56,021,000	43,314,000
Commissions and agency fees \| Other
Revenues:
Revenues	0			0			0	0
Renewal Royalty Fees
Revenues:
Revenues	13,206,000			8,117,000			33,622,000	21,406,000
Renewal Royalty Fees \| Franchise Channel
Revenues:
Revenues	13,206,000			8,117,000			33,622,000	21,406,000
Renewal Royalty Fees \| Corporate Channel
Revenues:
Revenues	0			0			0	0
Renewal Royalty Fees \| Operating Segments \| Franchise Channel
Revenues:
Revenues	13,206,000			8,117,000			33,622,000	21,406,000
Renewal Royalty Fees \| Operating Segments \| Corporate Channel
Revenues:
Revenues	0			0			0	0
Renewal Royalty Fees \| Other
Revenues:
Revenues	0			0			0	0
New Business Royalty Fees
Revenues:
Revenues	4,003,000			3,090,000			10,840,000	7,737,000
New Business Royalty Fees \| Franchise Channel
Revenues:
Revenues	4,003,000			3,090,000			10,840,000	7,737,000
New Business Royalty Fees \| Corporate Channel
Revenues:
Revenues	0			0			0	0
New Business Royalty Fees \| Operating Segments \| Franchise Channel
Revenues:
Revenues	4,003,000			3,090,000			10,840,000	7,737,000
New Business Royalty Fees \| Operating Segments \| Corporate Channel
Revenues:
Revenues	0			0			0	0
New Business Royalty Fees \| Other
Revenues:
Revenues	0			0			0	0
Initial Franchise Fees
Revenues:
Revenues	1,680,000			1,152,000			4,570,000	3,031,000
Initial Franchise Fees \| Franchise Channel
Revenues:
Revenues	1,680,000			1,152,000			4,570,000	3,031,000
Initial Franchise Fees \| Corporate Channel
Revenues:
Revenues	0			0			0	0
Initial Franchise Fees \| Operating Segments \| Franchise Channel
Revenues:
Revenues	1,680,000			1,152,000			4,570,000	3,031,000
Initial Franchise Fees \| Operating Segments \| Corporate Channel
Revenues:
Revenues	0			0			0	0
Initial Franchise Fees \| Other
Revenues:
Revenues	0			0			0	0
Franchise Revenues
Revenues:
Revenues	18,960,000			12,418,000			49,234,000	32,347,000
Franchise Revenues \| Operating Segments \| Franchise Channel
Revenues:
Revenues	18,960,000			12,418,000			49,234,000	32,347,000
Franchise Revenues \| Operating Segments \| Corporate Channel
Revenues:
Revenues	0			0			0	0
Franchise Revenues \| Other
Revenues:
Revenues	0			0			0	0
Interest income
Revenues:
Revenues	301,000			212,000			841,000	573,000
Interest Income	301,000			212,000			841,000	573,000
Interest income \| Franchise Channel
Revenues:
Revenues	301,000			212,000			841,000	573,000
Interest income \| Corporate Channel
Revenues:
Revenues	0			0			0	0
Interest income \| Operating Segments \| Franchise Channel
Revenues:
Interest Income	301,000			212,000			841,000	573,000
Interest income \| Operating Segments \| Corporate Channel
Revenues:
Interest Income	0			0			0	0
Interest income \| Other
Revenues:
Interest Income	$ 0			$ 0			$ 0	$ 0