0001726978-22-000121 | 10-Q | XBRL Viewer

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Segment Information	9 Months Ended
Segment Information	Sep. 30, 2022
Segment Reporting [Abstract]
Segment Information	Segment InformationThe Company’s Chief Operating Decision Maker, its Chief Executive Officer (“CEO”), reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Management views the Company’s operations and manages its business as one operating segment. Accordingly, the Company determined that it operates in a single reportable segment. All of the Company’s long-lived assets are located in the United States. As a result, beginning with the first quarter of 2022, GSHD has modified the presentation of its segment financial information with retrospective application to all prior periods presented. Since the Company operates in one operating segment, all required financial segment information can be found in the condensed consolidated financial statements.

- 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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 21
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 32
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 32
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 21
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/topic&trid=2134510

+ Details

Franchise Fees Receivable

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

Franchise Fees Receivable

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


	September 30, 2022		December 31, 2021
Franchise fees receivable(1)	$	41,161	$	40,171
Less: Unamortized discount(1)	(11,041)		(9,518)
Less: Allowance for uncollectible franchise fees(1)	(562)		(303)
Net franchise fees receivable(1)	$	29,558	$	30,350

(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, 2021	$	303
Charges to bad debts	3,099
Write offs	(2,840)
Balance at September 30, 2022	$	562

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

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsOn October 11, 2022, the Company paid down the $25.0 million drawn on the revolving credit facility.

Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

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, 2022 and 2021, divided by the basic weighted average number of Class A common stock as of September 30, 2022 and 2021 (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. 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,
	2022		2021		2022		2021
Numerator:
Income (loss) before taxes	$	2,374	$	2,793	$	(58)	$	4,769
Less: income (loss) before taxes attributable to non-controlling interests	1,061		1,332		(18)		2,288
Income (loss) before taxes attributable to GSHD	1,313		1,461		(40)		2,481
Less: income tax expense (benefit) attributable to GSHD	(666)		(2,575)		(104)		(2,646)
Net income attributable to GSHD	$	1,979	$	4,036	$	64	$	5,127
Denominator:
Weighted average shares of Class A common stock outstanding - basic	20,892		19,559		20,531		18,903
Effect of dilutive securities:
Stock options(1)	677		1,647		899		1,667
Weighted average shares of Class A common stock outstanding - diluted	21,569		21,206		21,430		20,570

Earnings per share of Class A common stock - basic	$	0.09	$	0.21	$	—	$	0.27
Earnings per share of Class A common stock - diluted	$	0.09	$	0.19	$	—	$	0.25

(1) 2,388 and 1,947 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, 2022, respectively, because the effect would have been anti-dilutive. 41 and 66 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.

Revenue - Narrative (Details)	9 Months Ended
Revenue - Narrative (Details)	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Amortization period	10 years
Franchise license revenue period	10 years
Weighted average remaining amortization period for contract liabilities	7 years 10 months 24 days

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2022	Oct. 26, 2022
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
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	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Class A Common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		21,147,289
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		16,201,948

Revenue - Contract Balances (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Cost to obtain franchise contracts	$ 3,007		$ 1,973
Increase (decrease) in cost to obtain franchise contracts	1,034
Commissions and agency fees receivable, net	11,271		12,056
Increase (decrease) in commissions and agency fees receivable, net	(785)
Receivables from franchisees	31,055		29,673
Increase (decrease) in receivables from franchisees	1,382
Contract liabilities	50,759		$ 48,608
Increase (decrease) in contract liability	2,151	$ 10,408
Contract Liability [Roll Forward]
Contract liabilities at December 31, 2021	48,608
Revenue recognized during the period	(7,943)
New deferrals	10,094
Contract liabilities at September 30, 2022	$ 50,759

Organization	9 Months Ended
Organization	Sep. 30, 2022
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 corporate-owned locations in operation at September 30, 2022 and 2021. 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, 2022 and 2021, the Company onboarded 144 and 92 franchise locations, respectively, and had 1,403 and 1,139 operating franchise locations as of September 30, 2022 and 2021, respectively. No franchises were purchased by the Company during the three and nine months ended September 30, 2022 or 2021. All intercompany accounts and transactions have been eliminated in consolidation.

Equity-Based Compensation	9 Months Ended
Equity-Based Compensation	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Equity-Based Compensation	Equity-Based CompensationStock option expense was $5.4 million and $16.4 million for the three and nine months ended September 30, 2022. Stock option expense was $1.9 million and $5.6 million for the three and nine months ended September 30, 2021.

Subsequent Events - Additional Information (Details) $ in Millions	Oct. 11, 2022 USD ($)
Subsequent Event \| Revolving Credit Facility
Subsequent Event [Line Items]
Repayments of long-term lines of credit	$ 25.0

Debt (Tables)

9 Months Ended

Sep. 30, 2022

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
2022	1,250
2023	6,875
2024	9,375
2025	10,000
2026	68,125
Total	$	95,625

Allowance for Uncollectible Agency Fees

9 Months Ended

Sep. 30, 2022

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, 2021	$	489
Charges to bad debts	1,663
Write offs	(1,658)
Balance at September 30, 2022	$	494

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

Debt - Leverage (Details)	9 Months Ended
Debt - Leverage (Details)	Sep. 30, 2022
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%

Property and equipment (Details) - USD ($) $ in Thousands	9 Months Ended
Property and equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total	$ 48,907		$ 37,218
Less accumulated depreciation	(13,688)		(12,285)
Property and equipment, net	35,219		24,933
Depreciation	4,500	$ 3,000
Furniture & fixtures
Property, Plant and Equipment [Line Items]
Total	7,784		7,283
Computer equipment
Property, Plant and Equipment [Line Items]
Total	4,033		3,369
Network equipment
Property, Plant and Equipment [Line Items]
Total	371		514
Phone system
Property, Plant and Equipment [Line Items]
Total	326		937
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total	$ 36,393		$ 25,115

Segment Information - Narrative (Details) - segment	3 Months Ended	9 Months Ended
Segment Information - Narrative (Details) - segment	Mar. 31, 2022	Sep. 30, 2022
Segment Reporting [Abstract]
Number of operating segments	1	1

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2022

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, 2022 and December 31, 2021, the condensed consolidated results of operations, stockholders' equity and statements of cash flows for the three and nine months ended September 30, 2022 and 2021. 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.

In accordance with Accounting Standards Codification 280 "Segment Reporting", and in the first quarter of 2022, the Company began reporting one operating segment due to changes in how the Company's chief operating decision maker assesses the Company's performance and allocates resources. See Note 12 "Segment Reporting".

The results of operations for the three and nine months ended September 30, 2022 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

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. While contingent commissions initially benefited from lower loss ratios in the early part of the pandemic, we now anticipate lower contingent commissions as customers return to pre-pandemic driving patterns and loss ratios increase. 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.

Reclassification

Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements.

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 $2.3 million and $1.2 million as of September 30, 2022 and 2021, 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, 2022 and 2021 (in thousands):


	September 30,
	2022		2021
Cash and cash equivalents	$	46,107	$	25,512
Restricted cash	2,263		1,179
Cash and cash equivalents, and restricted cash	$	48,370	$	26,691

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.

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 is effective from March 12, 2020 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.

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ 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, 2020					18,304,000	18,447,000
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]
Distributions	0
Net (loss) income	(1,089)			(396)				(396)	(693)
Exercise of stock options (in shares)					9,000
Exercise of stock options	226			226			226
Equity-based compensation	1,941			1,941			1,941
Activity under employee stock purchase plan (in shares)					2,000
Activity under employee stock purchase plan	205			205			205
Redemption of LLC Units (in shares)					133,000	133,000
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					18,448,000	18,314,000
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					18,304,000	18,447,000
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 (loss) income	7,415
Activity under employee stock purchase plan				613
Redemption of LLC Units				(2,673)
Ending balance (in shares) at Sep. 30, 2021					19,786,000	17,239,000
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					18,448,000	18,314,000
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 (loss) income	3,136			1,487				1,487	1,649
Exercise of stock options (in shares)					31,000
Exercise of stock options	439			439			439
Equity-based compensation	1,851			1,851			1,851
Activity under employee stock purchase plan (in shares)					2,000
Activity under employee stock purchase plan	214			214			214
Redemption of LLC Units (in shares)					728,000	728,000
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					19,209,000	17,586,000
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]
Dividends declared	(60,000)			(31,657)				(31,657)	(28,343)
Net (loss) income	5,368			4,036				4,036	1,332
Exercise of stock options (in shares)					229,000
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)					1,000
Activity under employee stock purchase plan	194			194			194
Redemption of LLC Units (in shares)					347,000	347,000
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					19,786,000	17,239,000
Ending balance at Sep. 30, 2021	(75,684)			(18,860)	$ 196	$ 173	41,820	(61,049)	(56,824)
Beginning balance (in shares) at Dec. 31, 2021		20,198,000	16,909,000		20,198,000	16,909,000
Beginning balance at Dec. 31, 2021	(69,188)			(14,020)	$ 200	$ 170	46,281	(60,671)	(55,168)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(5,383)			(2,257)				(2,257)	(3,126)
Exercise of stock options (in shares)					19,000
Exercise of stock options	256			256			256
Equity-based compensation	5,788			5,788			5,788
Activity under employee stock purchase plan (in shares)					3,000
Activity under employee stock purchase plan	214			214			214
Redemption of LLC Units (in shares)					101,000	101,000
Redemption of LLC Units	0			(344)	$ 1	$ (1)	(344)		344
Deferred tax adjustments related to Tax Receivable Agreement	416			394			394		22
Reallocation of Non-controlling interest	0			(478)				(478)	478
Ending balance (in shares) at Mar. 31, 2022					20,321,000	16,808,000
Ending balance at Mar. 31, 2022	(67,897)			(10,447)	$ 201	$ 169	52,589	(63,406)	(57,450)
Beginning balance (in shares) at Dec. 31, 2021		20,198,000	16,909,000		20,198,000	16,909,000
Beginning balance at Dec. 31, 2021	(69,188)			(14,020)	$ 200	$ 170	46,281	(60,671)	(55,168)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	46
Activity under employee stock purchase plan				556
Redemption of LLC Units (in shares)		707,000	707,000
Redemption of LLC Units				(2,300)
Ending balance (in shares) at Sep. 30, 2022		21,202,000	16,201,000		21,202,000	16,201,000
Ending balance at Sep. 30, 2022	(45,665)			6,329	$ 210	$ 163	67,238	(61,282)	(51,994)
Beginning balance (in shares) at Mar. 31, 2022					20,321,000	16,808,000
Beginning balance at Mar. 31, 2022	(67,897)			(10,447)	$ 201	$ 169	52,589	(63,406)	(57,450)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	2,389			342				342	2,047
Exercise of stock options (in shares)					94,000
Exercise of stock options	1,008			1,008	$ 1		1,007
Equity-based compensation	5,173			5,173			5,173
Activity under employee stock purchase plan (in shares)					4,000
Activity under employee stock purchase plan	177			177			177
Redemption of LLC Units (in shares)					115,000	115,000
Redemption of LLC Units	0			(377)	$ 1	$ (1)	(377)		377
Deferred tax adjustments related to Tax Receivable Agreement	403			373			373		30
Reallocation of Non-controlling interest	0			(226)				(226)	226
Ending balance (in shares) at Jun. 30, 2022					20,534,000	16,693,000
Ending balance at Jun. 30, 2022	(58,747)			(3,977)	$ 203	$ 168	58,942	(63,290)	(54,770)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	3,040			1,979				1,979	1,061
Exercise of stock options (in shares)					171,000
Exercise of stock options	3,006			3,006	$ 2		3,004
Equity-based compensation	5,395			5,395			5,395
Activity under employee stock purchase plan (in shares)					5,000
Activity under employee stock purchase plan	165			165			165
Redemption of LLC Units (in shares)		492,000	492,000		492,000	492,000
Redemption of LLC Units	0			(1,579)	$ 5	$ (5)	(1,579)		1,579
Deferred tax adjustments related to Tax Receivable Agreement	1,476			1,311			1,311		165
Reallocation of Non-controlling interest	0			29				29	(29)
Ending balance (in shares) at Sep. 30, 2022		21,202,000	16,201,000		21,202,000	16,201,000
Ending balance at Sep. 30, 2022	$ (45,665)			$ 6,329	$ 210	$ 163	$ 67,238	$ (61,282)	$ (51,994)

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Revenues	$ 57,687	$ 41,681	$ 151,987	$ 111,082
Renewal Commissions
Disaggregation of Revenue [Line Items]
Revenues	16,485	10,969	41,233	29,036
New Business Commissions
Disaggregation of Revenue [Line Items]
Revenues	6,215	6,013	18,312	16,573
Agency Fees
Disaggregation of Revenue [Line Items]
Revenues	2,740	3,050	8,491	8,579
Contingent Commissions
Disaggregation of Revenue [Line Items]
Revenues	1,962	2,388	5,640	6,819
Renewal Royalty Fees
Disaggregation of Revenue [Line Items]
Revenues	21,574	13,206	54,446	33,622
New Business Royalty Fees
Disaggregation of Revenue [Line Items]
Revenues	4,866	4,003	13,979	10,840
Initial Franchise Fees
Disaggregation of Revenue [Line Items]
Revenues	3,056	1,680	7,943	4,570
Other Franchise Revenues
Disaggregation of Revenue [Line Items]
Revenues	426	71	931	202
Interest income
Disaggregation of Revenue [Line Items]
Revenues	363	301	1,012	841
Transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenues	25,440	20,032	68,036	54,188
Transferred over time
Disaggregation of Revenue [Line Items]
Revenues	$ 32,247	$ 21,649	$ 83,951	$ 56,894

Allowance for Uncollectible Agency Fees (Tables)

9 Months Ended

Sep. 30, 2022

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, 2022		December 31, 2021
Franchise fees receivable(1)	$	41,161	$	40,171
Less: Unamortized discount(1)	(11,041)		(9,518)
Less: Allowance for uncollectible franchise fees(1)	(562)		(303)
Net franchise fees receivable(1)	$	29,558	$	30,350

(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, 2021	$	489
Charges to bad debts	1,663
Write offs	(1,658)
Balance at September 30, 2022	$	494

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

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net income	$ 46	$ 7,415
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,212	3,508
Bad debt expense	4,762	1,825
Equity-based compensation	16,356	5,644
Impacts of Tax Receivable Agreement	11,794	31,884
Deferred income taxes	(12,274)	(34,942)
Noncash lease activity	8,857	2,594
Changes in operating assets and liabilities:
Receivable from franchisees	(2,021)	(7,840)
Commissions and agency fees receivable	(878)	8,947
Prepaid expenses	(788)	(2,782)
Other assets	(646)	(1,257)
Accounts payable and accrued expenses	136	2,092
Contract liabilities	2,151	10,408
Premiums payable	310	(144)
Payments pursuant to the tax receivable agreement	0	(549)
Net cash provided by operating activities	33,017	26,803
Cash flows from investing activities:
Proceeds from notes receivable	32	24
Purchase of software	(2,094)	(1,989)
Purchase of property and equipment	(14,771)	(8,181)
Net cash used for investing activities	(16,833)	(10,146)
Cash flows from financing activities:
Debt issuance costs	0	(666)
Repayment of note payable	(3,125)	(3,744)
Proceeds from notes payable	0	44,619
Proceeds from the issuance of Class A common stock	4,832	3,589
Member distributions and dividends	0	(60,000)
Net cash provided by (used for) financing activities	1,707	(16,202)
Net increase in cash and restricted cash	17,891	455
Cash and cash equivalents, and restricted cash, beginning of period	30,479	26,236
Cash and cash equivalents, and restricted cash, end of period	48,370	26,691
Supplemental disclosures of cash flow data:
Cash paid during the period for interest	3,242	1,715
Cash paid for income taxes	$ 444	$ 272

Debt - Narrative (Details) $ in Millions	9 Months Ended
Debt - Narrative (Details) $ in Millions	Sep. 30, 2022 USD ($)	Jul. 21, 2021 USD ($)	Jul. 20, 2021 USD ($)
Line of Credit
Debt Instrument [Line Items]
Additional commitments		$ 25.0
Letter of credit	$ 0.2
Remaining borrowing availability	$ 24.8
Line of Credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing availability		50.0	$ 25.0
Interest Rate	2.50%
Revolver balance	$ 25.0
Notes Payable to Bank
Debt Instrument [Line Items]
Principal amount of debt			$ 80.0
Secured Debt
Debt Instrument [Line Items]
Principal amount of debt		$ 100.0
EBITDA ratio	4
Secured Debt \| Debt Repayment, First Twelve Months
Debt Instrument [Line Items]
Periodic payment	$ 0.6
Secured Debt \| Debt Repayment, Next 12 Months
Debt Instrument [Line Items]
Periodic payment	1.3
Secured Debt \| Debt Repayment, Following 12 Months
Debt Instrument [Line Items]
Periodic payment	1.9
Secured Debt \| Debt Repayment, Last 24 Months
Debt Instrument [Line Items]
Periodic payment	$ 2.5
Secured Debt \| LIBOR
Debt Instrument [Line Items]
Interest Rate	2.25%

Income Taxes - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
Income Taxes - Narrative (Details) - USD ($)	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Income Tax Contingency [Line Items]
Taxes	$ (666,000)	$ (2,575,000)	$ (104,000)	$ (2,646,000)
Effective income tax rate	(28.00%)	(92.00%)	179.00%	(55.00%)
Deferred income taxes, net	$ 140,244,000		$ 140,244,000		$ 125,676,000
Uncertain tax positions	$ 0		$ 0
LLC Units
Income Tax Contingency [Line Items]
Redemption of LLC Units (in shares)	492,000		707,000
Pre-IPO LLC \| LLC Units
Income Tax Contingency [Line Items]
Redemption of LLC Units (in shares)	491,938		707,395
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	$ 112,800,000		$ 112,800,000
Due to related parties, current	$ 400,000		$ 400,000

Non-controlling interest - Ownership interests (Details) shares in Thousands	9 Months Ended
	Sep. 30, 2022 shares
Noncontrolling Interest [Line Items]
Number of LLC units outstanding (in shares)	37,403
Noncontrolling interest, ownership percentage	100.00%
Goosehead Financial, LLC
Noncontrolling Interest [Line Items]
Ownership interest held by Goosehead Insurance, Inc.	56.70%
Noncontrolling interest holders
Noncontrolling Interest [Line Items]
Ownership interest held by non-controlling interest holders	43.30%
Parent
Noncontrolling Interest [Line Items]
Number of LLC units outstanding (in shares)	21,202
Non-controlling interest
Noncontrolling Interest [Line Items]
Number of LLC units outstanding (in shares)	16,201

Franchise Fees Receivable (Tables)

9 Months Ended

Sep. 30, 2022

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, 2022		December 31, 2021
Franchise fees receivable(1)	$	41,161	$	40,171
Less: Unamortized discount(1)	(11,041)		(9,518)
Less: Allowance for uncollectible franchise fees(1)	(562)		(303)
Net franchise fees receivable(1)	$	29,558	$	30,350

(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, 2021	$	489
Charges to bad debts	1,663
Write offs	(1,658)
Balance at September 30, 2022	$	494

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

Schedule of Allowance for Uncollectible Franchise Fees

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


Balance at December 31, 2021	$	303
Charges to bad debts	3,099
Write offs	(2,840)
Balance at September 30, 2022	$	562

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

Franchise Fees Receivable - Balance of Franchise Fees Receivable (Details) - Franchise Fees Receivable - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Franchise fees receivable	$ 41,161	$ 40,171
Less: Unamortized discount	(11,041)	(9,518)
Less: Allowance for uncollectible franchise fees	(562)	(303)	$ (181)	$ (149)
Net franchise fees receivable	$ 29,558	$ 30,350

- Definition

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

+ References + Details

- Definition

Amortized cost, before allowance for credit loss, of financing receivable. Excludes financing receivable covered under loss sharing agreement and net investment in lease.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1405
-Paragraph (a)
-Subparagraph (1)

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph (a)
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Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1404
-Paragraph (a)

+ Details

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes GSHD is 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) In accordance with ASC 740, Income Taxes, each interim period is considered integral to the annual period, and tax expense is measured using an estimated annual effective tax rate. An entity is required to record income tax expense each quarter based on its best estimate of the annual effective tax rate for the full fiscal year and use that rate to provide for income taxes on a current year-to-date basis, as adjusted for discrete taxable events that occur during the interim periods. If, however, the entity is unable to reliably estimate its annual effective tax rate, then the actual effective tax rate for the year-to-date may be the best estimate of the entity’s annual effective tax rate. For the nine months ended September 30, 2022, the Company determined that it was unable to make a reliable estimate of its annual effective tax rate due to the sensitivity of the rate as it relates to its forecasted full year 2022 results. Therefore, the Company recorded a tax expense for the nine months ended September 30, 2022 based on its actual effective tax rate for the nine months ended September 30, 2022. Provision for/(benefit from) income taxes for the three and nine months ended September 30, 2022 was $(0.7) million and $(0.1) million compared to $(2.6) million and $(2.6) million for the three and nine months ended September 30, 2021, respectively. The effective tax rate was (28)% and 179% for the three and nine months ended September 30, 2022 and (92)% and (55)% for the three and nine months ended September 30, 2021. The increase in the effective tax rate for the three and nine months ended September 30, 2022 compared to the three and nine months ended September 30, 2021 was primarily due to a increase in exercises of employee stock options. Deferred taxes Deferred tax assets at September 30, 2022 were $140.2 million compared to $125.7 million at December 31, 2021. 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, 2022. 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, 2022, an aggregate of 491,938 and 707,395 LLC Units were redeemed by the Pre-IPO LLC Members for newly issued shares of Class A common stock. In connection with these redemptions, GSHD received 491,938 and 707,395 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, 2022, the total amount of TRA Payments due to the Pre-IPO LLC Members under the tax receivable agreement was $112.8 million, of which $0.4 million was current and included in Accounts payables and accrued expenses on the Condensed 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, 2022.

- 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
-Publisher FASB
-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

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-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Debt

9 Months Ended

Sep. 30, 2022

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 $25.0 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, 2022 the Company was accruing interest at LIBOR plus 225 basis points. At September 30, 2022, 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 and royalties.

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 and royalties. Interest is calculated initially at LIBOR plus 2.25%, then at an interest rate based on the Company's leverage ratio for the preceding period. At September 30, 2022 the Company was accruing interest at LIBOR plus 225 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
2022	1,250
2023	6,875
2024	9,375
2025	10,000
2026	68,125
Total	$	95,625

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, 2022, the Company's maximum allowable trailing twelve months debt-to-EBITDA ratio, as defined by the credit agreement, was 4x. 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, 2022, the Company was in compliance with these covenants.

Because of both instruments’ variable interest rate, the note payable balance at September 30, 2022 and December 31, 2021, 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1I
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Paragraph 1B
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Stockholders' Equity - Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Pro forma earnings per share:
Income (loss) before taxes	$ 2,374	$ 2,793	$ (58)	$ 4,769
Less: income (loss) before taxes attributable to non-controlling interests	1,061	1,332	(18)	2,288
Income (loss) before taxes attributable to GSHD	1,313	1,461	(40)	2,481
Less: income tax expense (benefit) attributable to GSHD	(666)	(2,575)	(104)	(2,646)
Net income attributable to GSHD	$ 1,979	$ 4,036	$ 64	$ 5,127
Weighted average shares of Class A common stock outstanding - basic (in shares)	20,892	19,559	20,531	18,903
Effect of dilutive securities, stock options (in shares)	677	1,647	899	1,667
Weighted average shares of Class A common stock outstanding - diluted (in shares)	21,569	21,206	21,430	20,570
Earnings per share of Class A common stock - basic (in dollars per share)	$ 0.09	$ 0.21	$ 0	$ 0.27
Earnings per share of Class A common stock - diluted (in dollars per share)	$ 0.09	$ 0.19	$ 0	$ 0.25
Antidilutive securities excluded from computation of earnings per share (in shares)	2,388	41	1,947	66
Class A Common stock
Pro forma earnings per share:
Earnings per share of Class A common stock - basic (in dollars per share)	$ 0.09	$ 0.21	$ 0	$ 0.27
Earnings per share of Class A common stock - diluted (in dollars per share)	$ 0.09	$ 0.19	$ 0	$ 0.25

Equity-Based Compensation - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 5.4	$ 1.9	$ 16.4	$ 5.6

Franchise Fees Receivable - Roll-Forward of Allowance (Details) - Franchise Fees Receivable - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 303	$ 149
Charges to bad debts	3,099	516
Write offs	(2,840)	(484)
Ending balance	$ 562	$ 181

- Definition

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

+ References + Details

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current Assets:
Cash and cash equivalents	$ 46,107	$ 28,526
Restricted cash	2,263	1,953
Commissions and agency fees receivable, net	11,271	12,056
Receivable from franchisees, net	2,929	2,986
Prepaid expenses	5,573	4,785
Total current assets	68,143	50,306
Receivable from franchisees, net of current portion	28,126	29,180
Property and equipment, net of accumulated depreciation	35,219	24,933
Right-of-use asset	42,528	32,656
Intangible assets, net of accumulated amortization	4,334	2,798
Deferred income taxes, net	140,244	125,676
Other assets	5,394	4,742
Total assets	323,988	270,291
Current Liabilities:
Accounts payable and accrued expenses	13,500	12,995
Premiums payable	2,263	1,953
Lease liability	6,776	4,893
Contract liabilities	6,224	6,054
Note payable	6,250	4,375
Total current liabilities	35,013	30,270
Lease liability, net of current portion	64,181	47,335
Note payable, net of current portion	113,530	118,361
Contract liabilities, net of current portion	44,535	42,554
Liabilities under tax receivable agreement	112,394	100,959
Total liabilities	369,653	339,479
Additional paid in capital	67,238	46,281
Accumulated deficit	(61,282)	(60,671)
Total stockholders' equity (deficit)	6,329	(14,020)
Non-controlling interests	(51,994)	(55,168)
Total equity	(45,665)	(69,188)
Total liabilities and equity	323,988	270,291
Class A Common stock
Current Liabilities:
Common stock	210	200
Class B Common Stock
Current Liabilities:
Common stock	$ 163	$ 170

Revenue (Tables)

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Type of revenue stream:
Commissions and agency fees
Renewal Commissions	$	16,485	$	10,969	$	41,233	$	29,036
New Business Commissions	6,215		6,013		18,312		16,573
Agency Fees	2,740		3,050		8,491		8,579
Contingent Commissions	1,962		2,388		5,640		6,819
Franchise revenues
Renewal Royalty Fees	21,574		13,206		54,446		33,622
New Business Royalty Fees	4,866		4,003		13,979		10,840
Initial Franchise Fees	3,056		1,680		7,943		4,570
Other Franchise Revenues	426		71		931		202
Interest Income	363		301		1,012		841
Total Revenues	$	57,687	$	41,681	$	151,987	$	111,082

Timing of revenue recognition:
Transferred at a point in time	$	25,440	$	20,032	$	68,036	$	54,188
Transferred over time	32,247		21,649		83,951		56,894
Total Revenues	$	57,687	$	41,681	$	151,987	$	111,082

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, 2022		December 31, 2021		Increase/(decrease)
Cost to obtain franchise contracts(1)	$	3,007	$	1,973	$	1,034
Commissions and agency fees receivable, net(2)	11,271		12,056		(785)
Receivable from franchisees(2)	31,055		29,673		1,382
Contract liabilities(2)(3)	50,759		48,608		2,151

(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 liabilities at December 31, 2021	$	48,608
Revenue recognized during the period	(7,943)
New deferrals(1)	10,094
Contract liabilities at September 30, 2022	$	50,759

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

Non-controlling interest - Narrative (Details) shares in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022 shares	Sep. 30, 2022 shares
Noncontrolling interest holders
Noncontrolling Interest [Line Items]
Ownership interest held by non-controlling interest holders	0.448	0.448
LLC Units
Noncontrolling Interest [Line Items]
Conversion ratio		1
Redemption of LLC Units (in shares)	492	707
LLC Units \| Noncontrolling interest holders
Noncontrolling Interest [Line Items]
Redemption of LLC Units (in shares)	492	707
Class A Common stock
Noncontrolling Interest [Line Items]
Redemption of LLC Units (in shares)	492	707
Class B Common Stock
Noncontrolling Interest [Line Items]
Redemption of LLC Units (in shares)	492	707

Revenue

9 Months Ended

Sep. 30, 2022

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

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 for the franchise sales team, 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 source (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Type of revenue stream:
Commissions and agency fees
Renewal Commissions	$	16,485	$	10,969	$	41,233	$	29,036
New Business Commissions	6,215		6,013		18,312		16,573
Agency Fees	2,740		3,050		8,491		8,579
Contingent Commissions	1,962		2,388		5,640		6,819
Franchise revenues
Renewal Royalty Fees	21,574		13,206		54,446		33,622
New Business Royalty Fees	4,866		4,003		13,979		10,840
Initial Franchise Fees	3,056		1,680		7,943		4,570
Other Franchise Revenues	426		71		931		202
Interest Income	363		301		1,012		841
Total Revenues	$	57,687	$	41,681	$	151,987	$	111,082

Timing of revenue recognition:
Transferred at a point in time	$	25,440	$	20,032	$	68,036	$	54,188
Transferred over time	32,247		21,649		83,951		56,894
Total Revenues	$	57,687	$	41,681	$	151,987	$	111,082

Contract Balances

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


	September 30, 2022		December 31, 2021		Increase/(decrease)
Cost to obtain franchise contracts(1)	$	3,007	$	1,973	$	1,034
Commissions and agency fees receivable, net(2)	11,271		12,056		(785)
Receivable from franchisees(2)	31,055		29,673		1,382
Contract liabilities(2)(3)	50,759		48,608		2,151

(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, 2022 was included in the contract liabilities balance as of December 31, 2021.

The weighted average remaining amortization period for contract liabilities related to open franchises is 7.9 years.

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



Contract liabilities at December 31, 2021	$	48,608
Revenue recognized during the period	(7,943)
New deferrals(1)	10,094
Contract liabilities at September 30, 2022	$	50,759

(1) Initial Franchise Fees where the consideration is received from the franchisee 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 https://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Paragraph 12
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 606
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-Section 50
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

+ Details

Debt - Schedule of Maturities of Note Payable (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Debt Disclosure [Abstract]
2022	$ 1,250
2023	6,875
2024	9,375
2025	10,000
2026	68,125
Total	$ 95,625

Property and equipment (Tables)

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

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


	September 30, 2022		December 31, 2021
Furniture & fixtures	$	7,784	$	7,283
Computer equipment	4,033		3,369
Network equipment	371		514
Phone system	326		937
Leasehold improvements	36,393		25,115
Total	48,907		37,218
Less accumulated depreciation	(13,688)		(12,285)
Property and equipment, net	$	35,219	$	24,933

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2022
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, 2022 and December 31, 2021, the condensed consolidated results of operations, stockholders' equity and statements of cash flows for the three and nine months ended September 30, 2022 and 2021. 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. In accordance with Accounting Standards Codification 280 "Segment Reporting", and in the first quarter of 2022, the Company began reporting one operating segment due to changes in how the Company's chief operating decision maker assesses the Company's performance and allocates resources. See Note 12 "Segment Reporting". The results of operations for the three and nine months ended September 30, 2022 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.
Reclassification	Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements.
Restricted Cash	Restricted CashThe Company holds premiums received from the insured, but not yet remitted to the insurance Carrier in a fiduciary capacity.
Recently Adopted Accounting Pronouncements	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. 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 is effective from March 12, 2020 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.
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

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues:
Revenues	$ 57,687	$ 41,681	$ 151,987	$ 111,082
Operating Expenses:
Employee compensation and benefits	36,328	26,078	99,471	69,862
General and administrative expenses	13,456	10,141	39,358	29,549
Bad debts	2,306	732	4,762	1,825
Depreciation and amortization	1,809	1,188	5,043	3,320
Total operating expenses	53,899	38,139	148,634	104,556
Income from operations	3,788	3,542	3,353	6,526
Other Income (Expense):
Other income	0	7	0	146
Interest expense	(1,414)	(756)	(3,411)	(1,903)
Income (loss) before taxes	2,374	2,793	(58)	4,769
Tax expense (benefit)	(666)	(2,575)	(104)	(2,646)
Net income	3,040	5,368	46	7,415
Less: net income (loss) attributable to non-controlling interests	1,061	1,332	(18)	2,288
Net income attributable to Goosehead Insurance, Inc.	$ 1,979	$ 4,036	$ 64	$ 5,127
Earnings per share:
Basic (in dollars per share)	$ 0.09	$ 0.21	$ 0	$ 0.27
Diluted (in dollars per share)	$ 0.09	$ 0.19	$ 0	$ 0.25
Weighted average shares of Class A common stock outstanding
Basic (in shares)	20,892	19,559	20,531	18,903
Diluted (in shares)	21,569	21,206	21,430	20,570
Commissions and agency fees
Revenues:
Revenues	$ 27,402	$ 22,420	$ 73,676	$ 61,007
Franchise revenues
Revenues:
Revenues	29,922	18,960	77,299	49,234
Interest income
Revenues:
Revenues	$ 363	$ 301	$ 1,012	$ 841

Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Cash and cash equivalents	$ 46,107	$ 28,526	$ 25,512
Restricted cash	2,263		1,179
Cash and cash equivalents, and restricted cash	$ 48,370	$ 30,479	$ 26,691	$ 26,236

Stockholders' Equity

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Stockholders' Equity

Class A Common Stock

GSHD has a total of 21,202 shares of its Class A common stock outstanding at September 30, 2022. 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 16,201 shares of its Class B common stock outstanding at September 30, 2022. 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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Numerator:
Income (loss) before taxes	$	2,374	$	2,793	$	(58)	$	4,769
Less: income (loss) before taxes attributable to non-controlling interests	1,061		1,332		(18)		2,288
Income (loss) before taxes attributable to GSHD	1,313		1,461		(40)		2,481
Less: income tax expense (benefit) attributable to GSHD	(666)		(2,575)		(104)		(2,646)
Net income attributable to GSHD	$	1,979	$	4,036	$	64	$	5,127
Denominator:
Weighted average shares of Class A common stock outstanding - basic	20,892		19,559		20,531		18,903
Effect of dilutive securities:
Stock options(1)	677		1,647		899		1,667
Weighted average shares of Class A common stock outstanding - diluted	21,569		21,206		21,430		20,570

Earnings per share of Class A common stock - basic	$	0.09	$	0.21	$	—	$	0.27
Earnings per share of Class A common stock - diluted	$	0.09	$	0.19	$	—	$	0.25

- 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.

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+ Details

Organization - Narrative (Details)	3 Months Ended		9 Months Ended
Organization - Narrative (Details)	Sep. 30, 2022 location franchise	Sep. 30, 2021 location franchise	Sep. 30, 2022 location franchise	Sep. 30, 2021 location franchise
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Corporate-owned locations (in locations) \| location	12	12	12	12
Franchise locations sold (in franchises)	144	92
Operating franchise locations (in franchises)	1,403	1,139	1,403	1,139
Franchises purchased (in franchises)	0	0	0	0

Non-controlling interest

9 Months Ended

Sep. 30, 2022

Noncontrolling Interest [Abstract]

Non-controlling interest

GSHD is 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.

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, 2022, an aggregate of 492 thousand and 707 thousand LLC Units were redeemed by the non-controlling interest holders. Pursuant to the GF LLC Agreement, GSHD issued 492 thousand and 707 thousand shares of Class A common stock in connection with these redemptions and received 492 thousand and 707 thousand LLC Interests, increasing GSHD's ownership interest in GF. Simultaneously, and in connection with these redemptions, and 492 thousand and 707 thousand shares of Class B common stock were surrendered and cancelled.

The following table summarizes the ownership interest in GF as of September 30, 2022 (in thousands):


	September 30, 2022
	LLC Units	Ownership %
Number of LLC Units held by GSHD	21,202	56.7%
Number of LLC Units held by non-controlling interest holders	16,201	43.3%
Number of LLC Units outstanding	37,403	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, 2022 was 44.8%.

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, 2022 and 2021 as follows (in thousands):


	Three months ended September 30,			Nine Months Ended September 30,
		2022		2021		2022		2021
Net income attributable to Goosehead Insurance Inc.		$	1,979	$	4,036	$	64	$	5,127
Transfers (to) from non-controlling interests:
Decrease in additional paid-in capital as a result of the redemption of LLC interests		(1,579)		(1,144)		(2,300)		(2,673)
Increase in additional paid-in capital as a result of activity under employee stock purchase plan		165		194		556		613
Total effect of changes in ownership interest on equity attributable to Goosehead Insurance Inc.		$	565	$	3,086	$	(1,680)	$	3,067

Litigation	9 Months Ended
Litigation	Sep. 30, 2022
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.

Stockholders' Equity - Narrative (Details)	Sep. 30, 2022 vote shares	Dec. 31, 2021 shares
Class A Common Stock
Class of Stock [Line Items]
Common stock shares outstanding (in shares) \| shares	21,202,000	20,198,000
Vote per share (in votes) \| vote	1
Class B Common Stock
Class of Stock [Line Items]
Common stock shares outstanding (in shares) \| shares	16,201,000	16,909,000
Vote per share (in votes) \| vote	1

Condensed Consolidated Balance Sheets (Unaudited) - Parenthetical - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Class A Common stock
Common stock par value (in dollars per share)	$ 0.01	$ 0.01
Common stock shares authorized (in shares)	300,000,000	300,000,000
Common stock shares issued (in shares)	21,202,000	20,198,000
Common stock shares outstanding (in shares)	21,202,000	20,198,000
Class B Common Stock
Common stock par value (in dollars per share)	$ 0.01	$ 0.01
Common stock shares authorized (in shares)	50,000,000	50,000,000
Common stock shares issued (in shares)	16,201,000	16,909,000
Common stock shares outstanding (in shares)	16,201,000	16,909,000

Non-controlling interest - Effect of changes in ownership interests on equity (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Noncontrolling Interest [Line Items]
Net income attributable to Goosehead Insurance Inc.	$ 1,979			$ 4,036			$ 64	$ 5,127
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	165	177	214	194	214	205
Parent
Noncontrolling Interest [Line Items]
Net income attributable to Goosehead Insurance Inc.	1,979			4,036			64	5,127
Decrease in additional paid-in capital as a result of the redemption of LLC interests	(1,579)	(377)	(344)	(1,144)	(1,280)	(249)	(2,300)	(2,673)
Increase in additional paid-in capital as a result of activity under employee stock purchase plan	165	$ 177	$ 214	194	$ 214	$ 205	556	613
Total effect of changes in ownership interest on equity attributable to Goosehead Insurance Inc.	$ 565			$ 3,086			$ (1,680)	$ 3,067

- Definition

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

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Reference 30: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Allowance for Uncollectible Agency Fees - Roll-Forward of Allowance (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Charges to bad debts	$ 2,306	$ 732	$ 4,762	$ 1,825
Agency Fees
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance			489	468
Charges to bad debts			1,663	1,309
Write offs			(1,658)	(1,270)
Ending balance	$ 494	$ 507	$ 494	$ 507

Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2022 segment	Sep. 30, 2022 USD ($) segment	Sep. 30, 2021 USD ($)
Accounting Policies [Abstract]
Number of operating segments \| segment	1	1
Restricted cash \| $		$ 2,263	$ 1,179

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Schedule of Restrictions on Cash and Cash Equivalents


	September 30,
	2022		2021
Cash and cash equivalents	$	46,107	$	25,512
Restricted cash	2,263		1,179
Cash and cash equivalents, and restricted cash	$	48,370	$	26,691

Schedule of Reconciliation of Cash and Restricted Cash


	September 30,
	2022		2021
Cash and cash equivalents	$	46,107	$	25,512
Restricted cash	2,263		1,179
Cash and cash equivalents, and restricted cash	$	48,370	$	26,691

Property and equipment

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

Property and equipment

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


	September 30, 2022		December 31, 2021
Furniture & fixtures	$	7,784	$	7,283
Computer equipment	4,033		3,369
Network equipment	371		514
Phone system	326		937
Leasehold improvements	36,393		25,115
Total	48,907		37,218
Less accumulated depreciation	(13,688)		(12,285)
Property and equipment, net	$	35,219	$	24,933

Depreciation expense was $4.5 million and $3.0 million for nine months ended September 30, 2022 and 2021, respectively.

Non-controlling interest (Tables)

9 Months Ended

Sep. 30, 2022

Noncontrolling Interest [Abstract]

Schedule of Ownership Interests

The following table summarizes the ownership interest in GF as of September 30, 2022 (in thousands):


	September 30, 2022
	LLC Units	Ownership %
Number of LLC Units held by GSHD	21,202	56.7%
Number of LLC Units held by non-controlling interest holders	16,201	43.3%
Number of LLC Units outstanding	37,403	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, 2022 and 2021 as follows (in thousands):


	Three months ended September 30,			Nine Months Ended September 30,
		2022		2021		2022		2021
Net income attributable to Goosehead Insurance Inc.		$	1,979	$	4,036	$	64	$	5,127
Transfers (to) from non-controlling interests:
Decrease in additional paid-in capital as a result of the redemption of LLC interests		(1,579)		(1,144)		(2,300)		(2,673)
Increase in additional paid-in capital as a result of activity under employee stock purchase plan		165		194		556		613
Total effect of changes in ownership interest on equity attributable to Goosehead Insurance Inc.		$	565	$	3,086	$	(1,680)	$	3,067