0001726978-23-000020 | 10-K | XBRL Viewer

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Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Dec. 31, 2022	Feb. 24, 2023	Jun. 30, 2022
Entity Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
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	214
Local Phone Number	838-5500
Title of 12(b) Security	Class A Common Stock, par value $.01 per share
Trading Symbol	GSHD
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
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
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 909,779,830
Documents Incorporated by Reference	Portions of the registrant's definitive Proxy Statement for its 2023 Annual Meeting of Shareholders, which will be filed with the Securities and Exchange Commission within 120 days of December 31, 2022, are incorporated by reference into Part III, Items 10-14 of this Annual Report on Form 10-K.
Entity Central Index Key	0001726978
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false
Class A Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		23,239,156
Class B Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		14,270,623

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2022
Audit Information [Abstract]
Auditor Name	Deloitte & Touche LLP
Auditor Location	Dallas, Texas
Auditor Firm ID	34

Consolidated statements of operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenues:
Revenues	$ 209,390	$ 151,312	$ 117,014
Operating Expenses:
Employee compensation and benefits	133,293	94,978	67,366
General and administrative expenses	52,887	39,789	24,985
Bad debts	6,198	2,999	1,576
Depreciation and amortization	6,884	4,873	3,147
Total operating expenses	199,262	142,639	97,074
Income from operations	10,128	8,673	19,940
Other Income:
Other income	0	185	90
Interest expense	(4,999)	(2,854)	(2,310)
Income before taxes	5,129	6,004	17,720
Tax expense (benefit)	2,499	(2,292)	(1,035)
Net Income	2,630	8,296	18,755
Less: net income attributable to non-controlling interests	2,065	2,893	9,468
Net Income attributable to Goosehead Insurance Inc.	$ 565	$ 5,403	$ 9,287
Earnings per share:
Basic (in dollars per share)		$ 0.28	$ 0.55
Diluted (in dollars per share)		$ 0.26	$ 0.51
Weighted average shares of Class A common stock outstanding:
Basic (in shares)	20,995	19,181	16,785
Diluted (in shares)	21,773	20,813	18,383
Commissions and agency fees
Revenues:
Revenues	$ 100,265	$ 82,651	$ 71,811
Franchise revenues
Revenues:
Revenues	107,722	67,508	44,390
Interest income
Revenues:
Revenues	$ 1,403	$ 1,153	$ 813

Consolidated balance sheets - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current Assets:
Cash and cash equivalents	$ 28,743	$ 28,526
Restricted cash	1,644	1,953
Commissions and agency fees receivable, net	14,440	12,056
Receivable from franchisees, net	4,932	2,986
Prepaid expenses	4,334	4,785
Total current assets	54,093	50,306
Receivable from franchisees, net of current portion	23,835	29,180
Property and equipment, net of accumulated depreciation	35,347	24,933
Right-of use asset	44,080	32,656
Intangible assets, net of accumulated amortization	4,487	2,798
Deferred income taxes, net	155,318	125,676
Other assets	4,193	4,742
Total assets	321,353	270,291
Current Liabilities:
Accounts payable and accrued expenses	15,958	12,995
Premiums payable	1,644	1,953
Lease liability	6,627	4,893
Contract liabilities	6,031	6,054
Note payable	6,875	4,375
Total current liabilities	37,135	30,270
Lease liability, net of current portion	64,947	47,335
Note payable, net of current portion	86,711	118,361
Contract liabilities, net of current portion	40,522	42,554
Liabilities under tax receivable agreement, net of current portion	125,662	100,959
Total liabilities	354,977	339,479
Commitments and contingencies (see notes 9, 15, and 17)
Additional paid in capital	70,866	46,281
Accumulated deficit	(60,570)	(60,671)
Total stockholders' equity and members' deficit	10,670	(14,020)
Non-controlling interests	(44,294)	(55,168)
Total equity	(33,624)	(69,188)
Total liabilities and equity	321,353	270,291
Class A Common Stock
Current Liabilities:
Common stock	228	200
Class B Common Stock
Current Liabilities:
Common stock	$ 146	$ 170

Consolidated balance sheets (Parenthetical) - $ / shares	Dec. 31, 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)	23,034,287	20,198,005
Common stock shares outstanding (in shares)	23,034,287	20,198,005
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)	14,470,623	16,909,343
Common stock shares outstanding (in shares)	14,470,623	16,909,343

Consolidated statement of stockholders' equity - 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, 2019					15,238,000	21,055,000
Beginning balance at Dec. 31, 2019	$ (31,007)			$ (9,007)	$ 152	$ 210	$ 14,442	$ (23,811)	$ (22,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Distributions	(2,697)								(2,697)
Dividends declared	(42,000)			(19,895)				(19,895)	(22,105)
Net income	$ 18,755			9,287				9,287	9,468
Exercise of stock options (in shares)	450,000				450,000
Exercise of stock options	$ 4,498			4,498	$ 5		4,493
Equity-based compensation	4,745			4,745			4,745
Activity under employee stock purchase plan (in shares)					8,000
Activity under employee stock purchase plan	542			542			542
Redemption of LLC Units (in shares)					(2,608,000)	(2,608,000)
Redemption of LLC Units	0			(3,525)	$ 26	$ (26)	(3,525)		3,525
Deferred tax adjustments related to Tax Receivable Agreement	8,760			8,674			8,674		86
Reallocation of Non-controlling interest	0			(195)				(195)	195
Ending balance (in shares) at Dec. 31, 2020					18,304,000	18,447,000
Ending balance at Dec. 31, 2020	(38,404)			(4,876)	$ 183	$ 184	29,371	(34,614)	(33,528)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared	(60,000)			(31,657)				(31,657)	(28,343)
Net income	$ 8,296			5,403				5,403	2,893
Exercise of stock options (in shares)	351,000				349,000
Exercise of stock options	$ 3,795			3,795	$ 3		3,792
Equity-based compensation	7,292			7,292			7,292
Activity under employee stock purchase plan (in shares)					7,000
Activity under employee stock purchase plan	796			796			796
Redemption of LLC Units (in shares)		(1,500,000)	(1,500,000)		(1,538,000)	(1,538,000)
Redemption of LLC Units	0			(3,728)	$ 14	$ (14)	(3,728)		3,728
Deferred tax adjustments related to Tax Receivable Agreement	9,037			8,758			8,758		279
Reallocation of Non-controlling interest	0			197				197	(197)
Ending balance (in shares) at Dec. 31, 2021		20,198,005	16,909,343		20,198,000	16,909,000
Ending 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 income	$ 2,630			565				565	2,065
Exercise of stock options (in shares)	381,000				381,000
Exercise of stock options	$ 5,431			5,431	$ 4		5,427
Equity-based compensation	19,642			19,642			19,642
Activity under employee stock purchase plan (in shares)					16,000
Activity under employee stock purchase plan	699			699			699
Redemption of LLC Units (in shares)		(2,400,000)	(2,400,000)		(2,439,000)	(2,439,000)
Redemption of LLC Units	0			(7,598)	$ 24	$ (24)	(7,598)		7,598
Deferred tax adjustments related to Tax Receivable Agreement	7,162			6,415			6,415		747
Reallocation of Non-controlling interest	0			(464)				(464)	464
Ending balance (in shares) at Dec. 31, 2022		23,034,287	14,470,623		23,034,000	14,470,000
Ending balance at Dec. 31, 2022	$ (33,624)			$ 10,670	$ 228	$ 146	$ 70,866	$ (60,570)	$ (44,294)

Consolidated statements of cash flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income	$ 2,630	$ 8,296	$ 18,755
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	7,109	5,117	3,570
Bad debt expense	6,198	2,999	1,576
Equity based compensation	19,642	7,292	4,745
Impact of tax receivable agreement	24,703	40,759	48,760
Deferred income taxes	(22,478)	(43,277)	(49,066)
Noncash lease expense	1,998	5,949	13,623
Changes in operating assets and liabilities:
Receivable from franchisees	(722)	(11,647)	(7,085)
Commissions and agency fees receivable	(4,504)	4,722	(12,909)
Prepaid expenses	451	(1,080)	(1,718)
Other assets	548	(805)	(2,581)
Accounts payable and accrued expenses	2,513	4,004	2,541
Deferred rent	0	0	(7,365)
Contract liabilities	(2,055)	14,407	11,406
Premiums payable	(309)	629	400
Payments pursuant to the tax receivable agreement	0	(1,921)	(9)
Net cash provided by operating activities	35,724	35,444	24,643
Cash flows from investing activities:
Proceeds from notes receivable	43	32	35
Purchase of software	(2,484)	(2,669)	(393)
Purchase of property and equipment	(10,130)	(12,738)	(9,975)
Net cash used for investing activities	(12,571)	(15,375)	(10,333)
Cash flows from financing activities:
Debt issuance cost	0	(666)	(677)
Repayment of revolving credit facility	(50,000)	0	0
Repayment of term note payable	(4,375)	(4,369)	(27,821)
Proceeds from revolving credit facility	25,000	20,000	5,000
Proceeds from term note payable	0	24,619	59,821
Proceeds from the issuance of Class A common stock	6,130	4,590	5,040
Member distributions and dividends to stockholders	0	(60,000)	(44,697)
Net cash used for financing activities	(23,245)	(15,826)	(3,334)
Net increase (decrease) in cash and cash equivalents, and restricted cash	(92)	4,243	10,976
Cash and cash equivalents, and restricted cash, beginning of period	30,479	26,236	15,260
Cash and cash equivalents, and restricted cash, end of period	30,387	30,479	26,236
Supplemental disclosure of cash flow data:
Cash paid during the year for interest	4,774	2,351	1,887
Cash paid for income taxes	$ 484	$ 272	$ 270

Organization	12 Months Ended
Organization	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization On May 1, 2018 Goosehead Insurance, Inc. ("GSHD") completed the Offering of 9,810 thousand shares of Class A common stock at a price of $10.00 per share, which included 1,280 thousand shares issued pursuant to the underwriter's over-allotment option. GSHD became the sole managing member of Goosehead Financial, LLC (“GF”). GF was organized on January 1, 2016 as a Delaware Limited Liability Company and is headquartered in Westlake, TX. The operations of GF represent the predecessor to GSHD prior to the Offering, and the consolidated entities of GF are described in more detail below. Information for any periods prior to May 1, 2018 relates to GF and its subsidiaries and affiliates. 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 operations of the corporate-owned units are recorded in Texas Wasatch Insurance Services, L.P. (“TWIS”)—a Texas limited partnership headquartered in Westlake, TX and operating since 2003. TWIS is a wholly owned subsidiary of GF. The Company had 12 corporate-owned locations in operation at December 31, 2022, 15 at December 31, 2021, and 9 at December 31, 2020. The operations of the franchise units are recorded in Goosehead Insurance Agency, LLC (“GIA”)—a Delaware limited liability company headquartered in Westlake, TX and operating since 2011. GIA is 100% owned by Goosehead Insurance Holdings ("GIH"), which is 100% owned by GF. Franchisees are provided access to insurance Carrier Appointments, product training, technology infrastructure, client service centers and back office services. During years ended December 31, 2022, 2021, and 2020, the Company onboarded 496, 405, and 337 franchise locations, respectively and had 1,413, 1,198, and 891 operating franchise locations as of December 31, 2022, 2021 and 2020 respectively. No franchises were purchased by the Company during the years ended December 31, 2022, 2021, and 2020. In connection with the Offering, both Goosehead Management, LLC (“GM”) and Texas Wasatch Insurance Holdings Group LLC (“TWIHG”) became wholly owned indirect subsidiaries of GF. Both GM and TWIHG are non-operating holding companies created to receive management fees from the operating entities TWIS and GIA. Reorganization Transactions In connection with the Offering, the Company completed the following transactions (the "Reorganization Transactions"): •The GF limited liability company agreement was amended to, among other things, i) appoint GSHD as the sole managing member of GF and ii) modify the capital structure of GF by reclassifying the interests previously held by Pre-IPO LLC Members into a single new class of non-voting LLC Units. •GSHD was authorized to issue two classes of common stock. 9,810 thousand shares of Class A common stock were issued pursuant to the Offering, including the underwriters' over-allotment option. 22,747 thousand shares of Class B common stock were issued to the Pre-IPO LLC Members in an amount equal to the number of LLC Units held by each such Pre-IPO LLC Member in exchange for certain management rights of GF. Each share of Class A common stock and Class B common stock entitles its holder to one vote per share on all matters submitted to a vote of GSHD's stockholders. Each share of Class B common stock can be exchanged for one share of Class A common stock or, at GSHD's discretion, a cash payment equal to the volume weighted average market price of one share of Class A common stock, thus canceling the share of Class B common stock on a one-for-one basis. •The Goosehead Management Holders and Texas Wasatch Holders indirectly transferred their ownership interests in GM and TWIHG, respectively, to GSHD in exchange for the Goosehead Management Note and Texas Wasatch Note. The aggregate principal amount of the Goosehead Management Note and the Texas Wasatch Note was approximately $114 million. Because the net proceeds from the Offering were insufficient to repay the aggregate principal amount of the notes, 3,724 thousand shares of Class A common stock were issued to the Goosehead Management Holders and the Texas Wasatch Holders for the difference. GSHD contributed direct and indirect ownership interests in each of TWIHG and GM to GF. Following completion of the Reorganization Transactions and the Offering, GSHD owned 37.3% of GF and the Pre-IPO LLC Members owned the remaining 62.7%. GSHD is the sole managing member of GF and, although GSHD holds a minority economic interest in GF, GSHD 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 consolidated financial statements.

Basis of presentation and significant accounting policies

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Basis of presentation and significant accounting policies

Basis of Presentation

The accompanying audited consolidated financial statements of GSHD and our subsidiaries are presented in accordance with the rules and regulations of the SEC for annual reports on Form 10-K and are prepared in accordance with U.S. GAAP. All intercompany accounts and transactions have been eliminated in consolidation.

Reclassification

Certain amounts previously reported in the 2021 financial statements have been reclassified for comparative purposes to conform to the current period's presentation. We reclassified amounts between "Employee compensation and benefits" and "General and administrative expenses" in the Consolidated Statement of Operations. We reclassified amounts between "Receivables from franchisees, net" and "Accounts payable and accrued expenses" in the Consolidated Balance Sheet that also impacted balances in the Consolidated Statement of Cash Flows. We disaggregated the proceeds and payments of the term notes payable and revolving credit facility on the Consolidated Statements of Cash Flows.

Significant accounting policies

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.

Cash and cash equivalents

The Company maintains its cash in bank deposit accounts that, at times, may exceed federally insured limits; however, the Company has not historically experienced any losses in these accounts. The Company believes it is not exposed to any significant credit risk. The Company currently holds no financial instruments that would be considered cash equivalents.

Restricted cash

The Company holds premiums received from the insured, but not yet remitted to the insurance carrier in a fiduciary capacity. Premiums received but not yet remitted included in restricted cash were $1.6 million and $2.0 million as of December 31, 2022 and 2021, respectively.

The following is a reconciliation of our cash and restricted cash balances as presented in the consolidated statement of cash flows for the years ended December 31, 2022, 2021, and 2020 (in thousands):


	December 31,
	2022		2021		2020
Cash and cash equivalents	$	28,743	$	28,526	$	24,913
Restricted cash	1,644		1,953		1,323
Cash and cash equivalents, and restricted cash	$	30,387	$	30,479	$	26,236

Commissions and agency fees receivable

Upon issuance of a new policy, the Company typically collects the first premium payment from the insured, and then will remit the full premium amount to the insurance carriers. The insurance carriers collect the remaining premiums directly from the insureds and remit the applicable commissions to the Company. Accordingly, as reported in the accompanying consolidated balance sheets, commissions are receivables from the insurance carriers. These direct-bill arrangements consist of a high volume of transactions with small premium amounts, with the billing controlled by the insurance carriers. The income statement and balance sheet effects of the commissions are recorded at the

contract effective date and generally are based on a percentage of premiums for insurance coverage. During 2022, the Company wrote with approximately 150 insurance carriers, of which 58 provided national coverage. In 2022, two carriers represented more than 10% of total revenue at 14% and 12%. In 2021, two carriers represented more than 10% of total revenue at 17% and 11%. In 2020, three carriers represented more than 10% of total revenue at 20%, 13%, and 12%.

In select states, agents have the option to charge an agency fee for the placement of the insurance policy. These non-refundable fees are recorded as receivable on the date the policy is effective with the insurance carrier.

Allowance for uncollectible agency fees

The Company records agency fees receivable net of an allowance for estimated uncollectible accounts to reflect any loss anticipated for the related agency fees receivable balances and charge to bad debts. The agency fees receivable balance consists of numerous small-balance, homogeneous accounts. The Company calculates the allowance based on collection history and writes off all uncollected agency fee balances outstanding over ninety days.

Receivable from franchisees

Receivable from franchisees consists of franchise fees receivable, net of allowance for uncollectible franchise fees and unamortized discount on franchise fees, royalty fees receivable, and notes receivable from franchisees.

Franchise fees receivable

At the start date of the franchise agreement, an entry to franchise fees receivable is recorded along with an entry for a contract liability, to be amortized to franchise fees within Franchise revenues over the 10-year life of the franchise contract. Franchisees have the option to pay the full amount of franchise fees up front or to pay a deposit up front and the remaining balance by payment plan over time. The franchisees that elect to pay the initial franchise fee over a term extending greater than one year pay in total an amount that exceeds the amount due had they paid the full amount up front. As such, the payment plan option is treated as a zero-interest rate note, which creates an imputation of interest. The imputed interest is recorded as a discount on the franchise fee receivable and amortized using the effective interest rate method over the life of the payment plan. The amount of interest recorded in 2022, 2021, and 2020 related to franchise fees on a payment plan was $1.4 million, $1.1 million, and $0.8 million, respectively, and is included in Interest income.

Allowance for uncollectible franchise fees receivable

The Company records franchise fees receivable net of an allowance for estimated uncollectible accounts to reflect any loss anticipated related to the franchise fees receivable balances and charged to bad debts. The franchise fees receivable balance consists of numerous small-balance, homogeneous accounts. The Company calculates the allowance based on our history of write offs for all franchise accounts. Franchise fees receivable and the related allowance is charged off to bad debts if the franchisee owing the balance terminates.

Royalty fees receivable

Royalty fees are recorded at the point in time when the policy becomes effective with the insurance carrier. The royalty fees are secured by the commissions of the franchisee with no historical losses incurred for uncollectible royalty fees. As such, there is no allowance for doubtful accounts relating to royalty fees.

Revenue recognition

Goosehead provides personal and commercial property and casualty insurance brokerage services for its clients through a network of corporate-owned and franchise units. Goosehead is compensated for the insurance brokerage services that it provides for clients in the form of commission revenue, royalty fees, and contingent commissions. The Company adjusts its estimates of revenue recognized for commissions and royalty fees based on cash collections during the terms of the policies.

Certain costs to obtain or fulfill a contract are capitalized. The Company capitalizes the incremental costs to obtain contracts primarily related to commission payments. These deferred costs are amortized over the expected life of the underlying franchise fee, and are included in Other assets in the Company's consolidated balance sheet as of December 31, 2022.

Property & equipment

The Company carries fixed assets at cost, less accumulated depreciation, as stated in the accompanying consolidated balance sheets. Depreciation of property and equipment is calculated using the straight-line method over the estimated useful life of five years for furniture, fixtures and equipment and three years for computer

equipment. Leasehold improvements are also amortized using the straight-line method and are amortized over the shorter of the remaining term of the lease or the useful life of the improvement. Expenditures for improvements are capitalized, and expenditures for maintenance and repairs are expensed as incurred. Upon sale or retirement, the cost and related accumulated depreciation and amortization is removed from the related accounts, and the resulting gain or loss, if any, is reflected in income.

Intangible assets

Intangible assets are stated at cost less accumulated amortization and reflect amounts paid for the Company’s web domain and computer software costs. The web domain is amortized over a useful life of fifteen years and software costs are amortized over a useful life of three years.

Premiums payable

Premiums payable represent premium payments that have been received from insureds, but not yet remitted to the insurance carriers.

Deferred financing costs

Deferred financing costs incurred in connection with the issuance of debt are capitalized and amortized to interest expense in accordance with the related debt agreements. Deferred financing costs are included as a reduction in notes payable on the accompanying consolidated balance sheets.

Lease Accounting

The primary leased asset class of the Company is real estate. For leases with an original term longer than one year, lease liabilities are initially recognized on the lease commencement date based on the present value of the future minimum lease payments over the lease term, including non-lease components such as fixed common area maintenance costs and other fixed costs for generally all leases. A corresponding right of use ("ROU") asset is initially recognized equal to the lease liability adjusted for any lease prepayments, initial direct costs and lease incentives and amortized into rent expense, which is mapped to general and administrative expenses in the consolidated statements of operations.

The discount rates used in determining the present value of leases represent our collateralized borrowing rate considering each lease's term. The lease term includes options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Certain leases have renewal options that can be exercised at the discretion of the Company. Rent expense is generally recognized on a straight-line basis over the lease term and included in General and administrative expenses in the Consolidated Statement of Operations. See Note 15 for further information.

Income Taxes

Prior to the Offering, GF was treated as a partnership for U.S. federal and applicable state and local income tax purposes. As a partnership, GF's taxable income or loss was included in the taxable income of its members. Accordingly, no income tax expense was recorded for federal and state and local jurisdictions for periods prior to the Offering.

In connection with the Offering completed on May 1, 2018, the Company became a taxable entity.

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.

Advertising

The Company expenses advertising costs as they are incurred. Advertising expense for the years ended December 31, 2022, 2021, and 2020 was $1.0 million, $1.3 million, and $0.9 million.

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 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 was initially effective as of March 12, 2020 through December 31, 2022. In December 2022, ASU 2022-06 extended the effective period through December 31, 2024. 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 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.

Revenues

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenues

Commissions and agency 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 transaction 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.

Commissions from insurance carriers, net of estimated policy changes and cancellations, are recognized as revenue at the effective date of the policy. Significant factors in determining our estimates of policy changes and cancellations include forecasted commissions revenue, which is estimated based on historical experience and assumptions concerning future customer behavior and market conditions. Subsequent adjustments to estimated policy changes and cancellations are possible as facts and circumstances change over time.

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.

The Company must estimate the amount of consideration that will be received such that a significant reversal of revenue is not probable. Contingent commissions represent a form of variable consideration associated with the placement and profitability of coverage, for which we earn commissions. In connection with Topic 606, contingent commissions are estimated with a constraint applied and accrued relative to the recognition of the corresponding core commissions for the period over which the contract applies. The resulting effect on the timing of recognizing contingent commissions closely follows a similar pattern as our commissions and fees with any adjustments recognized when payments are received or as additional information that affects the estimate becomes available.

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.

Initial franchise fees are recognized as revenue over the 10-year life of the franchise contract, beginning on the start date of the contract.

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 underlying policies are placed, which is on the effective date of the policies. Recognition of royalty fees generally takes place earlier under Topic 606.

Contract Costs

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

Incremental cost to obtain - The Company defers certain costs to obtain customer contracts primarily as they relate to commission-based compensation plans for Franchisees, 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. The balance of cost to obtain is included with Other assets on the Consolidated balance sheets.

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 tables disaggregates revenue by source (in thousands):


	Year Ended December 31,
	2022		2021		2020
Type of revenue stream:
Commissions and agency fees
Renewal commissions	$	57,543	$	39,111	$	28,891
New business commissions	24,126		22,108		17,324
Agency fees	10,912		11,506		8,921
Contingent commissions	7,684		9,926		16,675
Franchise revenues
Renewal royalty fees	77,346		46,079		29,309
New business royalty fees	18,244		14,616		10,623
Initial franchise fees	10,853		6,516		4,236
Other franchise revenues	1,279		297		222
Interest income	1,403		1,153		813
Total revenues	$	209,390	$	151,312	$	117,014

Timing of revenue recognition:
Transferred at a point in time	$	92,581	$	72,725	$	55,136
Transferred over time	116,809		78,587		61,878
Total revenues	$	209,390	$	151,312	$	117,014

Contract Balances

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


	December 31, 2022		December 31, 2021		Increase/(decrease)
Cost to obtain franchise contracts(1)	$	3,255	$	1,973	$	1,282
Commissions and agency fees receivable, net(2)	14,440		12,056		2,384
Receivable from franchisees, net(2)	28,767		29,673		(906)
Contract liabilities(2)(3)	46,553		48,608		(2,055)

(1) Cost to obtain franchise contracts is included in Other assets on the 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):


	December 31, 2022		December 31, 2021
Contract liability at beginning of period	$	48,608	$	34,201
Revenue recognized during the period	(10,853)		(6,516)
New deferrals(1)	8,798		20,923
Contract liability at end of period	$	46,553	$	48,608

(1) Initial franchise fees where the consideration is received from the customer for services which are to be transferred to the franchisee over the term of the franchise agreement

Anticipated Future Recognition of Deferred Initial Franchise Fees

The following table reflects the estimated initial franchise fees (contract liability) to be recognized in the future related to performance obligations that are unsatisfied at the end of the period (in thousands):


Estimate for the year ended December 31:
2023	$	6,031
2024	5,885
2025	5,755
2026	5,628
2027	5,434
Thereafter	17,820
	$	46,553

- 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
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-Name Accounting Standards Codification
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+ Details

Franchise fees receivable

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

Franchise fees receivable

Franchise fees receivableThe balance of Franchise fees receivable included in receivable from franchisees in the consolidated balance sheets consisted of the following (in thousands):


	December 31,
	2022		2021
Franchise fees receivable	$	35,606	$	40,171
Less: Unamortized discount	(9,896)		(9,518)
Less: Allowance for uncollectible franchise fees	(487)		(303)
Total franchise fees receivable	$	25,223	$	30,350

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



Balance at December 31, 2020	$	149
Charges to bad debts	1,173
Write offs	(1,019)
Balance at December 31, 2021	303
Charges to bad debts	4,078
Write offs	(3,894)
Balance at December 31, 2022	$	487

Allowance for uncollectible agency fees

12 Months Ended

Dec. 31, 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, 2020	$	468
Charges to bad debts	1,826
Write offs	(1,805)
Balance at December 31, 2021	$	489
Charges to bad debts	2,120
Write offs	(2,159)
Balance at December 31, 2022	$	450

Property and equipment

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Property and equipment

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


	December 31,
	2022		2021
Furniture & fixtures	$	9,772	$	7,283
Computer equipment	4,041		3,369
Network equipment	423		514
Phone system	326		937
Leasehold improvements	36,009		25,115
Total	50,571		37,218
Less accumulated depreciation	(15,224)		(12,285)
Property and equipment, net	$	35,347	$	24,933

Depreciation expense was $6.1 million, $4.5 million, and $2.9 million for the years ended December 31, 2022, 2021, and 2020, respectively.

Intangible assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets

Intangible assets consisted of the following (in thousands):


	December 31,				Weighted average amortization period (years)
	2022		2021
Computer software & web domain	$	5,970	$	4,168	2.74
Less accumulated amortization	(1,483)		(1,370)
Intangible assets, net	$	4,487	$	2,798

Amortization expense was $0.8 million, $0.4 million, and $0.3 million for the years ended December 31, 2022, 2021, and 2020, respectively.

Expected amortization for the next five calendar years as of December 31, 2022 are as follows (in thousands):




2023	$	1,685
2024	1,562
2025	1,133
2026	107
2027 and thereafter	—
Total	$	4,487

Employee benefit obligation	12 Months Ended
Employee benefit obligation	Dec. 31, 2022
Retirement Benefits [Abstract]
Employee benefit obligation	Employee benefit obligation The Company has adopted a qualified deferred compensation plan under section 401(k) of the Internal Revenue Code. Full-time employees over the age of 21 with six months of service are eligible to participate. Under the plan, the Company’s contribution is based on a discretionary matching of 100% of salary deferral elected by each eligible employee up to a maximum of 3% of compensation. The Company’s matching portion vests over a four-year period, after which time the employee becomes fully vested and all future contributions will vest immediately. Matching contributions may be changed at the discretion of the Company. Company contributions totaled $1.0 million, $1.0 million, and $0.8 million for the years ended December 31, 2022, 2021, and 2020.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
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+ Details

Debt

12 Months Ended

Dec. 31, 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 in order to obtain a more favorable interest rate on the outstanding debt. The Company has the right, subject to approval by the administrative agent and each issuing bank, to increase the commitments under the credit facilities 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 December 31, 2022, the Company had not drawn against the revolver. At December 31, 2022, the Company had a letter of credit of $0.2 million applied against the maximum borrowing availability, thus amounts available to draw totaled $49.8 million. The revolving credit facility is collateralized by substantially all the Company’s assets, which includes rights to future commissions. Interest payments on the revolving credit facility totaled $0.7 million, $0.4 million, and $0.1 million for the years ended December 31, 2022, 2021, and 2020, respectively.

The $100.0 million term note accrues interest at an initial interest rate of LIBOR plus 2.25%, then at an interest rate determined by the Company's leverage ratio for the preceding period. As of December 31, 2022, the Company was in the greater than 2.50x leverage ratio tranche, accruing interest of LIBOR plus 2.25%. The aggregate principal amount of the term note as of December 31, 2022 is $94.4 million, payable in quarterly installments of $0.6 million for the first twelve months, $1.3 million for the next twelve months, $1.9 million for the next twelve months, and $2.5 million for the last twelve months, with a balloon payment on June 21, 2026.The term note is collateralized by substantially all the Company’s assets, which includes rights to future commissions.

The interest rate for each leverage ratio tier are 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 calendar years as of December 31, 2022 are as follows (in thousands):


	Amount
2023	$	6,875
2024	9,375
2025	10,000
2026	68,125
2027	—
Total	$	94,375

There is nothing drawn against the revolver which is coterminous with the term loan and is due in full on June 21, 2026.

Loan origination fees of $0.8 million at December 31, 2022 are reflected as a reduction to the note balance and are amortized through interest expense.

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. 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 December 31, 2022, the Company was in compliance with these covenants.

Because of both instruments’ origination date and variable interest rate, the note payable balance at December 31, 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
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+ Details

Income taxes

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income taxes

Income taxesAs a result of the Reorganization Transactions and the Offering, GSHD became the sole managing member of GF, which is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, GF is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by GF is passed through to and included in the taxable income or loss of its members, including GSHD, on a pro rata basis. GSHD is subject to U.S. federal income taxes, in addition to state and local income taxes, with respect to GSHD's allocable share of income of GF.

Income tax expense

The components of income tax expense are as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
Current income taxes
Federal	$	—	$	—	$	(1,719)
State and local	271		226		373
Total current income taxes	271		226		(1,346)
Deferred income taxes
Federal	(340)		(4,316)		217
State and local	2,568		1,798		94
Total deferred income taxes	2,228		(2,518)		311
Income tax expense (benefit)	$	2,499	$	(2,292)	$	(1,035)

A reconciliation of income tax expense computed at the U.S. federal statutory income tax rate to the income tax expense recognized is as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
Income before taxes	$	5,129	$	6,004	$	17,720

Income taxes at U.S. federal statutory rate	1,076		1,261		3,720
Tax on income not subject to entity level federal income tax	(483)		(617)		(2,264)
Permanent Differences:

Non-deductible stock compensation costs	(1,478)		(4,530)		(3,004)
Non-deductible excess compensation	15		—		—
Non-deductible employee moving expenses	—		6		1
Meals & entertainment	101		25		47
Permanent Provision to Return	43		—		—
State income tax, net of federal benefit	2,268		1,553		524
Other reconciling items:
Section 162(m) DTA Write-off	935		—		—
Other	22		10		(59)
Income tax expense (benefit)	$	2,499	$	(2,292)	$	(1,035)

Deferred tax assets and liabilities

The components of deferred tax assets are as follows (in thousands):


	December 31, 2022		December 31, 2021
Net operating loss carryforwards	$	13,172	$	8,929
Investment in flow-through entity	142,146		116,747
Net deferred tax asset	$	155,318	$	125,676

GSHD has income tax net operating loss carryforwards for federal and state purposes of $60.5 million and $0.6 million (post apportionment pre-tax), respectively. The federal net operating loss carryforwards are carried forward indefinitely and the state net operating loss carryforwards begin to expire in 2040.

Uncertain tax positions

GSHD has determined there are no material uncertain tax positions as of December 31, 2022.

Tax Receivable Agreement

GF has made 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. Prior redemptions and exchanges have resulted, and future 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 us in the absence of those transactions. These tax basis adjustments have reduced the amount of tax we are required to pay, and 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 ("TRA") 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 TRA.

During the years ended December 31, 2022, 2021 and 2020, an aggregate of 2.4 million, 1.5 million and 2.6 million LLC Units, respectively, were redeemed by the Pre-IPO LLC Members for newly-issued shares of Class A common stock. In connection with these redemptions, we received 2.4 million, 1.5 million and 2.6 million LLC Units, which resulted in an increase in the tax basis of our investment in GF subject to the provisions of the TRA. We recognized a liability for the TRA Payments due to the Pre-IPO LLC Members, representing 85% of the aggregate tax benefits we expect 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 our estimates of future taxable income. As of December 31, 2022 and 2021, the total amount of TRA Payments due to the Pre-IPO LLC Members under the TRA was $125.7 million and $101.0 million, respectively, of which $0.0 million and $0.0 million, respectively, was current and included in Accounts payables and accrued expenses on the Consolidated balance sheets.

- Definition

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

+ References

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

Stockholders' equity

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

Stockholders' equity

Stockholder's equity

Class A Common Stock

GSHD has a total of 23,034 thousand and 20,198 thousand shares of its Class A common stock outstanding at December 31, 2022 and 2021, respectively. 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 14,471 thousand and 16,909 thousand shares of its Class B common stock outstanding at December 31, 2022 and 2021, respectively. 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 stockholders for their vote or approval, except as otherwise required by applicable law, by agreement, or by GSHD's certificate of incorporation.

Earnings Per Share

The following table sets forth the calculation of basic earnings per share ("EPS") based on net income attributable to GSHD for the year ended December 31, 2022, 2021, and 2020, divided by the basic weighted average number of Class A common stock as of December 31, 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 (in thousands):


	Year Ended December 31,
	2022		2021		2020
Numerator:
Income before taxes	$	5,129	$	6,004	$	17,720
Less: income before taxes attributable to non-controlling interests	2,065		2,893		9,468
Income before taxes attributable to GSHD	3,064		3,111		8,252
Less: income tax expense (benefit) attributable to GSHD	2,499		(2,292)		(1,035)
Net income attributable to GSHD	$	565	$	5,403	$	9,287
Denominator:
Weighted average shares of Class A common stock outstanding - basic	20,995		19,181		16,785
Effect of dilutive securities:
Stock options	778		1,632		1,598
Weighted average shares of Class A common stock outstanding - diluted	21,773		20,813		18,383

Earnings per share of Class A common stock - basic	$	0.03	$	0.28	$	0.55
Earnings per share of Class A common stock - diluted	$	0.03	$	0.26	$	0.51

- Definition

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

+ References

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+ Details

Non-controlling interest

12 Months Ended

Dec. 31, 2022

Noncontrolling Interest [Abstract]

Non-controlling interest

Non-Controlling Interests

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

GF makes distributions to the LLC Unit holders on a pro rata basis. For the years ended December 31, 2022 and 2021, GF made no distributions.

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 canceled 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 2022 and 2021, an aggregate of 2.4 million and 1.5 million LLC Units, respectively, were redeemed by the non-controlling interest holders. Pursuant to the GF LLC Agreement, we issued 2.4 million and 1.5 million shares of Class A common stock in connection with these redemptions and received 2.4 million and 1.5 million LLC Interests, increasing our ownership interest in GF LLC. Simultaneously, and in connection with these redemptions, 2.4 million and 1.5 million shares of Class B common stock were surrendered and canceled.

The following table summarizes the ownership interest in GF as of December 31, 2022 and 2021 (in thousands):


	December 31, 2022		December 31, 2021
	LLC Units	Ownership %	LLC Units	Ownership %
Number of LLC Units held by GSHD	23,034	61.4%	20,198	54.4%
Number of LLC Units held by non-controlling interest holders	14,471	38.6%	16,909	45.6%
Number of LLC Units outstanding	37,505	100.0%	37,107	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 years ended December 31, 2022 and 2021 was 43.6% and 48.0%, respectively. All net income prior to the Offering is attributed to non-controlling interest holders.

The following table summarizes the effects of changes in ownership in GF on the equity of GSHD for the years ended December 31, 2022, 2021, and 2020 is as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
Net Income attributable to Goosehead Insurance Inc.	$	565	$	5,403	$	9,287
Transfers (to) from non-controlling interests:
Decrease in additional paid-in capital as a result of the redemption of LLC interests	(7,598)		(3,728)		(3,525)
Increase in additional paid-in capital as a result of activity under employee stock purchase plan	699		796		542
Total effect of changes in ownership interest on equity attributable to Goosehead Insurance Inc.	$	(6,334)	$	2,471	$	6,304

Equity-based compensation

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Equity-based compensation

A summary of equity-based compensation expense during the years ended December 31, 2022, 2021, and 2020 is as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
Stock options	$	19,642	$	7,292	$	4,745
Equity-based compensation expense	$	19,642	$	7,292	$	4,745

Stock options:

The Company granted additional stock options of 1,482,000, 153,500, and 900,000 to its Board of Directors and Managing Directors in 2022, 2021, and 2020, respectively. The weighted average grant date fair value was determined using the Black-Scholes valuation model using the following weighted average assumptions:


	December 31
	2022		2021		2020
Expected volatility	55% - 65%		45	%	40	%
Expected dividend yield	—	%	—	%	—	%
Expected term (in years)	3.25 - 4		4.25		6.5
Risk-free interest rate	1.19%- 4.26%		0.29	%	0.47	%

A summary of stock option activity for the years ended December 31, 2022, 2021 and 2020 is as follows (in thousands except per share amounts):


	Stock Options	Weighted Average Exercise Price		Aggregate Intrinsic Value		Weighted Average Remaining Contractual Life (Years)
Outstanding as January 1, 2020	1,730	$	11.13	$	5,969
Granted	1,010	41.24		16,322
Exercised	(450)	10.00		1,390
Forfeited	—	—		—
Expired	—	—		—
Outstanding as of December 31, 2020	2,290	$	24.63	$	20,901
Granted	154	131.87		7,280
Exercised	(351)	10.83		1,186
Forfeited	(24)	45.45		370
Expired	—	—		—
Outstanding as of December 31, 2021	2,069	$	34.68	$	26,625
Granted	1,482	97.49		61,808
Exercised	(381)	14.25		1,886
Forfeited	(468)	82.82		15,584
Expired	(13)	40.88		219
Outstanding as of December 31, 2022	2,689	$	63.84	$	70,744	7.63
Options vested and exercisable as of December 31, 2022	906	$	27.36	$	8,815	5.62
Options expected to vest as of December 31, 2022	1,783	$	81.94	$	61,929	8.63

As of December 31, 2022, total unrecognized compensation expense related to unvested stock options was $41.5 million, which is expected to be recognized over a weighted average period of 2.02 years. Cash received from stock option exercises during the year ended December 31, 2022 was $6.1 million.

A summary of unvested stock option activity for the years ended December 31, 2022, 2021 and 2020 is as follows (in thousands except per share amounts):


	Stock Options	Weighted Average Grant Date Fair Value
Unvested as January 1, 2020	1,517	$	3.15
Vested	(550)	3.12
Granted	1,010	16.16
Forfeited	—	—
Unvested as of December 31, 2020	1,977	$	10.09
Vested	(504)	5.09
Granted	154	47.43
Forfeited	(24)	15.44
Unvested as of December 31, 2021	1,603	$	15.20
Vested	(834)	10.64
Granted	1,482	41.71
Forfeited	(468)	33.33
Unvested as of December 31, 2022	1,783	$	34.73

The total fair value of stock options vested during the years ended December 31, 2022, 2021 and 2020 was $8.9 million, $2.6 million and $1.7 million, respectively.

Dividends

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Dividends

On July 30, 2020, GF approved an extraordinary dividend in the aggregate amount of $42 million payable to holders of LLC Units, including GSHD. The board of directors of the Company subsequently declared an extraordinary dividend of $1.15 (rounded) to all holders of Class A common stock of GSHD with a record date of August 10, 2020, which was paid on August 24, 2020. A summary of the total amounts declared by GF is as follows (in thousands):


	LLC Units held as of August 10, 2020	Dividends Declared
Class A common stockholders	17,263	$	19,843
Class B common stockholders via LLC Units held	19,276	22,157
Total	36,539	$	42,000

On July 28, 2021 GF approved an extraordinary dividend in the aggregate amount of $60 million payable to holders of LLC Units, including GSHD. The board of directors of the Company subsequently declared an extraordinary dividend of $1.63 (rounded) to all holders of Class A common stock of GSHD with a record date of August 9, 2021, which was paid on August 23, 2021. A summary of the total amounts declared and paid by GF is as follows (in thousands):


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

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

The Company did not approve or pay any dividends during the year ended December 31, 2022.

Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

At December 31, 2022, Goosehead was obligated under a number of operating leases, exclusively leases for premises and equipment used for business purposes. These leases generally have terms of 8 years or less, determined based on the contractual maturity of the lease, and include periods covered by options to extend or terminate the lease when the Company is reasonably certain that it will exercise those options. None of these lease agreements impose restrictions on the Company’s ability to pay dividends, engage in debt or equity financing transactions or enter into further lease agreements. Certain of these leases contain escalation clauses that will increase rent payments based on maintenance, utility and tax increases, which are non-lease components and variable in nature. The Company elected not to separate lease and non-lease components of a contract for its real estate and equipment leases. As such, real estate lease payments represent payments on both lease and non-lease components.

Operating lease liabilities and ROU assets are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term. The future lease payments are discounted at a rate that represents the Company’s collateralized borrowing rate for financing instruments of a similar term. We estimate this for our portfolio of leases using information obtained from our bankers. The ROU asset also includes any lease prepayments made, plus initial direct costs incurred, less any lease incentives received. Rent expense associated with operating leases is recognized on a straight-line basis over the lease term, and generally included in occupancy expense within General and administrative expenses in the Consolidated statements of operations.

The following table provides information related to the Company’s leases as of December 31, 2022 and 2021 (in thousands):


	December 31, 2022			December 31, 2021
Right-of-use assets	$	44,080		$	32,656

Short term lease liabilities	6,627			4,893
Long term lease liabilities	64,947			47,335
Total lease liabilities	71,574			52,228

Weighted average remaining lease term (in years)	7.45			8.10
Weighted average incremental borrowing rate	3.9		%	3.1		%

The following is a schedule showing the components of lease cost for the year ended December 31, 2022 and 2021 (in thousands):


	December 31, 2022		December 31, 2021
Gross operating lease cost	$	7,034	$	4,798
Sublease income	(27)		(7)
Net lease cost	$	7,007	$	4,791

The following is a schedule of supplemental cash flow information related to leases for the year ended December 31, 2022 and 2021 (in thousands):


	December 31, 2022		December 31, 2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	(5,615)	$	(16,092)

Right of use assets obtained in exchange for lease obligation
Operating leases	$	15,907	$	10,143

The following is a schedule of future maturity of lease liability as of December 31, 2022 (in thousands):



2023	$	8,816
2024	11,130
2025	11,316
2026	11,532
2027	11,222
Thereafter	29,060
Total lease payments	83,076
Less: imputed interest	(11,502)
Future maturity of lease liability	$	71,574

As of December 31, 2022, the Company did not have any additional future operating lease commitments that were signed but had not yet commenced.

Segment information	12 Months Ended
Segment information	Dec. 31, 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 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
-SubTopic 10
-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
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-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
-Topic 280
-SubTopic 10
-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
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-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
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-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
-Topic 280
-SubTopic 10
-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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI https://asc.fasb.org/topic&trid=2134510

+ Details

Litigation	12 Months Ended
Litigation	Dec. 31, 2022
Loss Contingency, Information about Litigation Matters [Abstract]
Litigation	LitigationFrom time to time, the Company may be involved in various legal proceedings, lawsuits and claims incidental to the conduct of our 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.

Basis of presentation and significant accounting policies (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Consolidation	In connection with the Offering, both Goosehead Management, LLC (“GM”) and Texas Wasatch Insurance Holdings Group LLC (“TWIHG”) became wholly owned indirect subsidiaries of GF. Both GM and TWIHG are non-operating holding companies created to receive management fees from the operating entities TWIS and GIA.
Basis of Presentation	Basis of Presentation The accompanying audited consolidated financial statements of GSHD and our subsidiaries are presented in accordance with the rules and regulations of the SEC for annual reports on Form 10-K and are prepared in accordance with U.S. GAAP. All intercompany accounts and transactions have been eliminated in consolidation.
Reclassification	Reclassification Certain amounts previously reported in the 2021 financial statements have been reclassified for comparative purposes to conform to the current period's presentation. We reclassified amounts between "Employee compensation and benefits" and "General and administrative expenses" in the Consolidated Statement of Operations. We reclassified amounts between "Receivables from franchisees, net" and "Accounts payable and accrued expenses" in the Consolidated Balance Sheet that also impacted balances in the Consolidated Statement of Cash Flows. We disaggregated the proceeds and payments of the term notes payable and revolving credit facility on the Consolidated Statements of Cash Flows.
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.
Cash and cash equivalents and restricted cash	Cash and cash equivalents The Company maintains its cash in bank deposit accounts that, at times, may exceed federally insured limits; however, the Company has not historically experienced any losses in these accounts. The Company believes it is not exposed to any significant credit risk. The Company currently holds no financial instruments that would be considered cash equivalents. Restricted cash The Company holds premiums received from the insured, but not yet remitted to the insurance carrier in a fiduciary capacity.
Commissions and agency fees receivable and receivable from franchisees	Commissions and agency fees receivable Upon issuance of a new policy, the Company typically collects the first premium payment from the insured, and then will remit the full premium amount to the insurance carriers. The insurance carriers collect the remaining premiums directly from the insureds and remit the applicable commissions to the Company. Accordingly, as reported in the accompanying consolidated balance sheets, commissions are receivables from the insurance carriers. These direct-bill arrangements consist of a high volume of transactions with small premium amounts, with the billing controlled by the insurance carriers. The income statement and balance sheet effects of the commissions are recorded at the contract effective date and generally are based on a percentage of premiums for insurance coverage. During 2022, the Company wrote with approximately 150 insurance carriers, of which 58 provided national coverage. In 2022, two carriers represented more than 10% of total revenue at 14% and 12%. In 2021, two carriers represented more than 10% of total revenue at 17% and 11%. In 2020, three carriers represented more than 10% of total revenue at 20%, 13%, and 12%. In select states, agents have the option to charge an agency fee for the placement of the insurance policy. These non-refundable fees are recorded as receivable on the date the policy is effective with the insurance carrier. Allowance for uncollectible agency fees The Company records agency fees receivable net of an allowance for estimated uncollectible accounts to reflect any loss anticipated for the related agency fees receivable balances and charge to bad debts. The agency fees receivable balance consists of numerous small-balance, homogeneous accounts. The Company calculates the allowance based on collection history and writes off all uncollected agency fee balances outstanding over ninety days. Receivable from franchisees Receivable from franchisees consists of franchise fees receivable, net of allowance for uncollectible franchise fees and unamortized discount on franchise fees, royalty fees receivable, and notes receivable from franchisees. Franchise fees receivable At the start date of the franchise agreement, an entry to franchise fees receivable is recorded along with an entry for a contract liability, to be amortized to franchise fees within Franchise revenues over the 10-year life of the franchise contract. Franchisees have the option to pay the full amount of franchise fees up front or to pay a deposit up front and the remaining balance by payment plan over time. The franchisees that elect to pay the initial franchise fee over a term extending greater than one year pay in total an amount that exceeds the amount due had they paid the full amount up front. As such, the payment plan option is treated as a zero-interest rate note, which creates an imputation of interest. The imputed interest is recorded as a discount on the franchise fee receivable and amortized using the effective interest rate method over the life of the payment plan. The amount of interest recorded in 2022, 2021, and 2020 related to franchise fees on a payment plan was $1.4 million, $1.1 million, and $0.8 million, respectively, and is included in Interest income. Allowance for uncollectible franchise fees receivable The Company records franchise fees receivable net of an allowance for estimated uncollectible accounts to reflect any loss anticipated related to the franchise fees receivable balances and charged to bad debts. The franchise fees receivable balance consists of numerous small-balance, homogeneous accounts. The Company calculates the allowance based on our history of write offs for all franchise accounts. Franchise fees receivable and the related allowance is charged off to bad debts if the franchisee owing the balance terminates. Royalty fees receivable Royalty fees are recorded at the point in time when the policy becomes effective with the insurance carrier. The royalty fees are secured by the commissions of the franchisee with no historical losses incurred for uncollectible royalty fees. As such, there is no allowance for doubtful accounts relating to royalty fees.
Revenue recognition	Revenue recognition Goosehead provides personal and commercial property and casualty insurance brokerage services for its clients through a network of corporate-owned and franchise units. Goosehead is compensated for the insurance brokerage services that it provides for clients in the form of commission revenue, royalty fees, and contingent commissions. The Company adjusts its estimates of revenue recognized for commissions and royalty fees based on cash collections during the terms of the policies. Certain costs to obtain or fulfill a contract are capitalized. The Company capitalizes the incremental costs to obtain contracts primarily related to commission payments. These deferred costs are amortized over the expected life of the underlying franchise fee, and are included in Other assets in the Company's consolidated balance sheet as of December 31, 2022.
Property & equipment	Property & equipment The Company carries fixed assets at cost, less accumulated depreciation, as stated in the accompanying consolidated balance sheets. Depreciation of property and equipment is calculated using the straight-line method over the estimated useful life of five years for furniture, fixtures and equipment and three years for computer equipment. Leasehold improvements are also amortized using the straight-line method and are amortized over the shorter of the remaining term of the lease or the useful life of the improvement. Expenditures for improvements are capitalized, and expenditures for maintenance and repairs are expensed as incurred. Upon sale or retirement, the cost and related accumulated depreciation and amortization is removed from the related accounts, and the resulting gain or loss, if any, is reflected in income.
Intangible assets	Intangible assets Intangible assets are stated at cost less accumulated amortization and reflect amounts paid for the Company’s web domain and computer software costs. The web domain is amortized over a useful life of fifteen years and software costs are amortized over a useful life of three years.
Premiums payable	Premiums payable Premiums payable represent premium payments that have been received from insureds, but not yet remitted to the insurance carriers.
Deferred financing costs	Deferred financing costs Deferred financing costs incurred in connection with the issuance of debt are capitalized and amortized to interest expense in accordance with the related debt agreements. Deferred financing costs are included as a reduction in notes payable on the accompanying consolidated balance sheets.
Lease accounting	Lease Accounting The primary leased asset class of the Company is real estate. For leases with an original term longer than one year, lease liabilities are initially recognized on the lease commencement date based on the present value of the future minimum lease payments over the lease term, including non-lease components such as fixed common area maintenance costs and other fixed costs for generally all leases. A corresponding right of use ("ROU") asset is initially recognized equal to the lease liability adjusted for any lease prepayments, initial direct costs and lease incentives and amortized into rent expense, which is mapped to general and administrative expenses in the consolidated statements of operations. The discount rates used in determining the present value of leases represent our collateralized borrowing rate considering each lease's term. The lease term includes options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Certain leases have renewal options that can be exercised at the discretion of the Company. Rent expense is generally recognized on a straight-line basis over the lease term and included in General and administrative expenses in the Consolidated Statement of Operations.
Income Taxes	Income Taxes Prior to the Offering, GF was treated as a partnership for U.S. federal and applicable state and local income tax purposes. As a partnership, GF's taxable income or loss was included in the taxable income of its members. Accordingly, no income tax expense was recorded for federal and state and local jurisdictions for periods prior to the Offering. In connection with the Offering completed on May 1, 2018, the Company became a taxable entity. 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.
Advertising	AdvertisingThe Company expenses advertising costs as they are incurred.
Recently issued and 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 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 was initially effective as of March 12, 2020 through December 31, 2022. In December 2022, ASU 2022-06 extended the effective period through December 31, 2024. 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 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.

Basis of presentation and significant accounting policies (Tables)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Schedule of Restrictions on Cash and Cash Equivalents


	December 31,
	2022		2021		2020
Cash and cash equivalents	$	28,743	$	28,526	$	24,913
Restricted cash	1,644		1,953		1,323
Cash and cash equivalents, and restricted cash	$	30,387	$	30,479	$	26,236

Schedule of Reconciliation of Cash and Restricted Cash


	December 31,
	2022		2021		2020
Cash and cash equivalents	$	28,743	$	28,526	$	24,913
Restricted cash	1,644		1,953		1,323
Cash and cash equivalents, and restricted cash	$	30,387	$	30,479	$	26,236

Revenues (Tables)

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

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


	Year Ended December 31,
	2022		2021		2020
Type of revenue stream:
Commissions and agency fees
Renewal commissions	$	57,543	$	39,111	$	28,891
New business commissions	24,126		22,108		17,324
Agency fees	10,912		11,506		8,921
Contingent commissions	7,684		9,926		16,675
Franchise revenues
Renewal royalty fees	77,346		46,079		29,309
New business royalty fees	18,244		14,616		10,623
Initial franchise fees	10,853		6,516		4,236
Other franchise revenues	1,279		297		222
Interest income	1,403		1,153		813
Total revenues	$	209,390	$	151,312	$	117,014

Timing of revenue recognition:
Transferred at a point in time	$	92,581	$	72,725	$	55,136
Transferred over time	116,809		78,587		61,878
Total revenues	$	209,390	$	151,312	$	117,014

Schedule of Contract Balances

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


	December 31, 2022		December 31, 2021		Increase/(decrease)
Cost to obtain franchise contracts(1)	$	3,255	$	1,973	$	1,282
Commissions and agency fees receivable, net(2)	14,440		12,056		2,384
Receivable from franchisees, net(2)	28,767		29,673		(906)
Contract liabilities(2)(3)	46,553		48,608		(2,055)

(1) Cost to obtain franchise contracts is included in Other assets on the 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):


	December 31, 2022		December 31, 2021
Contract liability at beginning of period	$	48,608	$	34,201
Revenue recognized during the period	(10,853)		(6,516)
New deferrals(1)	8,798		20,923
Contract liability at end of period	$	46,553	$	48,608

(1) Initial franchise fees where the consideration is received from the customer for services which are to be transferred to the franchisee over the term of the franchise agreement

Schedule of Contract Liability


Estimate for the year ended December 31:
2023	$	6,031
2024	5,885
2025	5,755
2026	5,628
2027	5,434
Thereafter	17,820
	$	46,553

Franchise fees receivable (Tables)

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

Schedule of Franchise Fees Receivable

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


	December 31,
	2022		2021
Franchise fees receivable	$	35,606	$	40,171
Less: Unamortized discount	(9,896)		(9,518)
Less: Allowance for uncollectible franchise fees	(487)		(303)
Total franchise fees receivable	$	25,223	$	30,350

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



Balance at December 31, 2020	$	468
Charges to bad debts	1,826
Write offs	(1,805)
Balance at December 31, 2021	$	489
Charges to bad debts	2,120
Write offs	(2,159)
Balance at December 31, 2022	$	450

Schedule of Allowance For Uncollectible Franchise Fees

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



Balance at December 31, 2020	$	149
Charges to bad debts	1,173
Write offs	(1,019)
Balance at December 31, 2021	303
Charges to bad debts	4,078
Write offs	(3,894)
Balance at December 31, 2022	$	487

Allowance for uncollectible agency fees (Tables)

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

Schedule of Allowance for Uncollectible Agency Fees

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


	December 31,
	2022		2021
Franchise fees receivable	$	35,606	$	40,171
Less: Unamortized discount	(9,896)		(9,518)
Less: Allowance for uncollectible franchise fees	(487)		(303)
Total franchise fees receivable	$	25,223	$	30,350

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



Balance at December 31, 2020	$	468
Charges to bad debts	1,826
Write offs	(1,805)
Balance at December 31, 2021	$	489
Charges to bad debts	2,120
Write offs	(2,159)
Balance at December 31, 2022	$	450

Property and equipment (Tables)

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

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


	December 31,
	2022		2021
Furniture & fixtures	$	9,772	$	7,283
Computer equipment	4,041		3,369
Network equipment	423		514
Phone system	326		937
Leasehold improvements	36,009		25,115
Total	50,571		37,218
Less accumulated depreciation	(15,224)		(12,285)
Property and equipment, net	$	35,347	$	24,933

Intangible assets (Tables)

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

Intangible assets consisted of the following (in thousands):


	December 31,				Weighted average amortization period (years)
	2022		2021
Computer software & web domain	$	5,970	$	4,168	2.74
Less accumulated amortization	(1,483)		(1,370)
Intangible assets, net	$	4,487	$	2,798

Schedule of Expected Amortization Expense

Expected amortization for the next five calendar years as of December 31, 2022 are as follows (in thousands):




2023	$	1,685
2024	1,562
2025	1,133
2026	107
2027 and thereafter	—
Total	$	4,487

Debt (Tables)

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Schedule of Interest Rate Dependent of Leverage Ratio

The interest rate for each leverage ratio tier are 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 calendar years as of December 31, 2022 are as follows (in thousands):


	Amount
2023	$	6,875
2024	9,375
2025	10,000
2026	68,125
2027	—
Total	$	94,375

Income taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

The components of income tax expense are as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
Current income taxes
Federal	$	—	$	—	$	(1,719)
State and local	271		226		373
Total current income taxes	271		226		(1,346)
Deferred income taxes
Federal	(340)		(4,316)		217
State and local	2,568		1,798		94
Total deferred income taxes	2,228		(2,518)		311
Income tax expense (benefit)	$	2,499	$	(2,292)	$	(1,035)

Schedule of Reconciliation of Income Tax Expense

A reconciliation of income tax expense computed at the U.S. federal statutory income tax rate to the income tax expense recognized is as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
Income before taxes	$	5,129	$	6,004	$	17,720

Income taxes at U.S. federal statutory rate	1,076		1,261		3,720
Tax on income not subject to entity level federal income tax	(483)		(617)		(2,264)
Permanent Differences:

Non-deductible stock compensation costs	(1,478)		(4,530)		(3,004)
Non-deductible excess compensation	15		—		—
Non-deductible employee moving expenses	—		6		1
Meals & entertainment	101		25		47
Permanent Provision to Return	43		—		—
State income tax, net of federal benefit	2,268		1,553		524
Other reconciling items:
Section 162(m) DTA Write-off	935		—		—
Other	22		10		(59)
Income tax expense (benefit)	$	2,499	$	(2,292)	$	(1,035)

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax assets are as follows (in thousands):


	December 31, 2022		December 31, 2021
Net operating loss carryforwards	$	13,172	$	8,929
Investment in flow-through entity	142,146		116,747
Net deferred tax asset	$	155,318	$	125,676

Stockholders' equity (Tables)

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

Schedule of Earnings Per Share, Basic and Diluted


	Year Ended December 31,
	2022		2021		2020
Numerator:
Income before taxes	$	5,129	$	6,004	$	17,720
Less: income before taxes attributable to non-controlling interests	2,065		2,893		9,468
Income before taxes attributable to GSHD	3,064		3,111		8,252
Less: income tax expense (benefit) attributable to GSHD	2,499		(2,292)		(1,035)
Net income attributable to GSHD	$	565	$	5,403	$	9,287
Denominator:
Weighted average shares of Class A common stock outstanding - basic	20,995		19,181		16,785
Effect of dilutive securities:
Stock options	778		1,632		1,598
Weighted average shares of Class A common stock outstanding - diluted	21,773		20,813		18,383

Earnings per share of Class A common stock - basic	$	0.03	$	0.28	$	0.55
Earnings per share of Class A common stock - diluted	$	0.03	$	0.26	$	0.51

Non-controlling interest (Tables)

12 Months Ended

Dec. 31, 2022

Noncontrolling Interest [Abstract]

Schedule of Ownership Interests

The following table summarizes the ownership interest in GF as of December 31, 2022 and 2021 (in thousands):


	December 31, 2022		December 31, 2021
	LLC Units	Ownership %	LLC Units	Ownership %
Number of LLC Units held by GSHD	23,034	61.4%	20,198	54.4%
Number of LLC Units held by non-controlling interest holders	14,471	38.6%	16,909	45.6%
Number of LLC Units outstanding	37,505	100.0%	37,107	100.0%

Schedule of 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 years ended December 31, 2022, 2021, and 2020 is as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
Net Income attributable to Goosehead Insurance Inc.	$	565	$	5,403	$	9,287
Transfers (to) from non-controlling interests:
Decrease in additional paid-in capital as a result of the redemption of LLC interests	(7,598)		(3,728)		(3,525)
Increase in additional paid-in capital as a result of activity under employee stock purchase plan	699		796		542
Total effect of changes in ownership interest on equity attributable to Goosehead Insurance Inc.	$	(6,334)	$	2,471	$	6,304

Equity-based compensation (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of Equity-Based Compensation Expense

A summary of equity-based compensation expense during the years ended December 31, 2022, 2021, and 2020 is as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
Stock options	$	19,642	$	7,292	$	4,745
Equity-based compensation expense	$	19,642	$	7,292	$	4,745

Schedule of Stock Option Valuation Assumptions


	December 31
	2022		2021		2020
Expected volatility	55% - 65%		45	%	40	%
Expected dividend yield	—	%	—	%	—	%
Expected term (in years)	3.25 - 4		4.25		6.5
Risk-free interest rate	1.19%- 4.26%		0.29	%	0.47	%

Schedule of Stock Option Activity

A summary of stock option activity for the years ended December 31, 2022, 2021 and 2020 is as follows (in thousands except per share amounts):


	Stock Options	Weighted Average Exercise Price		Aggregate Intrinsic Value		Weighted Average Remaining Contractual Life (Years)
Outstanding as January 1, 2020	1,730	$	11.13	$	5,969
Granted	1,010	41.24		16,322
Exercised	(450)	10.00		1,390
Forfeited	—	—		—
Expired	—	—		—
Outstanding as of December 31, 2020	2,290	$	24.63	$	20,901
Granted	154	131.87		7,280
Exercised	(351)	10.83		1,186
Forfeited	(24)	45.45		370
Expired	—	—		—
Outstanding as of December 31, 2021	2,069	$	34.68	$	26,625
Granted	1,482	97.49		61,808
Exercised	(381)	14.25		1,886
Forfeited	(468)	82.82		15,584
Expired	(13)	40.88		219
Outstanding as of December 31, 2022	2,689	$	63.84	$	70,744	7.63
Options vested and exercisable as of December 31, 2022	906	$	27.36	$	8,815	5.62
Options expected to vest as of December 31, 2022	1,783	$	81.94	$	61,929	8.63

A summary of unvested stock option activity for the years ended December 31, 2022, 2021 and 2020 is as follows (in thousands except per share amounts):


	Stock Options	Weighted Average Grant Date Fair Value
Unvested as January 1, 2020	1,517	$	3.15
Vested	(550)	3.12
Granted	1,010	16.16
Forfeited	—	—
Unvested as of December 31, 2020	1,977	$	10.09
Vested	(504)	5.09
Granted	154	47.43
Forfeited	(24)	15.44
Unvested as of December 31, 2021	1,603	$	15.20
Vested	(834)	10.64
Granted	1,482	41.71
Forfeited	(468)	33.33
Unvested as of December 31, 2022	1,783	$	34.73

Dividends (Tables)

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Schedule of Total Estimated Dividends to be Paid

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


	LLC Units held as of August 10, 2020	Dividends Declared
Class A common stockholders	17,263	$	19,843
Class B common stockholders via LLC Units held	19,276	22,157
Total	36,539	$	42,000

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


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

Leases (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Schedule of Lease Information, Rent Expense and Supplemental Cash Flow Information

The following table provides information related to the Company’s leases as of December 31, 2022 and 2021 (in thousands):


	December 31, 2022			December 31, 2021
Right-of-use assets	$	44,080		$	32,656

Short term lease liabilities	6,627			4,893
Long term lease liabilities	64,947			47,335
Total lease liabilities	71,574			52,228

Weighted average remaining lease term (in years)	7.45			8.10
Weighted average incremental borrowing rate	3.9		%	3.1		%

The following is a schedule showing the components of lease cost for the year ended December 31, 2022 and 2021 (in thousands):


	December 31, 2022		December 31, 2021
Gross operating lease cost	$	7,034	$	4,798
Sublease income	(27)		(7)
Net lease cost	$	7,007	$	4,791

The following is a schedule of supplemental cash flow information related to leases for the year ended December 31, 2022 and 2021 (in thousands):


	December 31, 2022		December 31, 2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	(5,615)	$	(16,092)

Right of use assets obtained in exchange for lease obligation
Operating leases	$	15,907	$	10,143

Schedule of Future Minimum Lease Payments

The following is a schedule of future maturity of lease liability as of December 31, 2022 (in thousands):



2023	$	8,816
2024	11,130
2025	11,316
2026	11,532
2027	11,222
Thereafter	29,060
Total lease payments	83,076
Less: imputed interest	(11,502)
Future maturity of lease liability	$	71,574

Organization - Narrative (Details) $ / shares in Units, shares in Thousands, $ in Millions			12 Months Ended
	May 02, 2018	May 01, 2018 USD ($) class vote $ / shares shares	Dec. 31, 2022 location franchise vote	Dec. 31, 2021 location franchise	Dec. 31, 2020 location franchise
Subsidiary, Sale of Stock [Line Items]
Corporate-owned locations (in locations) \| location			12	15	9
Franchise locations sold (in franchises) \| franchise			496	405	337
Operating franchise locations (in franchises) \| franchise			1,413	1,198	891
Franchises purchased (in franchises) \| franchise			0	0	0
Number of classes (in classes) \| class		2
Vote per share (in votes) \| vote		1
Conversion ratio		1
Goosehead Management Note and Texas Wasatch Note
Subsidiary, Sale of Stock [Line Items]
Principal amount of debt \| $		$ 114
Goosehead Insurance Agency, LLC \| Goosehead Insurance Holding, LLC
Subsidiary, Sale of Stock [Line Items]
Ownership interest			100.00%
Goosehead Insurance Holding, LLC \| Goosehead Financial, LLC
Subsidiary, Sale of Stock [Line Items]
Ownership interest			100.00%
Goosehead Financial, LLC \| Goosehead Insurance, Inc.
Subsidiary, Sale of Stock [Line Items]
Ownership interest	37.30%
Goosehead Financial, LLC \| Pre-IPO LLC Members
Subsidiary, Sale of Stock [Line Items]
Ownership interest	62.70%
Class A Common Stock
Subsidiary, Sale of Stock [Line Items]
Vote per share (in votes) \| vote			1
Class A Common Stock \| Goosehead Management, LLC And Texas Wasatch Insurance Holdings Group LLC
Subsidiary, Sale of Stock [Line Items]
Shares issued (in shares)		3,724
Class A Common Stock \| Initial Public Offering
Subsidiary, Sale of Stock [Line Items]
Shares issued in transaction (in shares)		9,810
Share price (in dollars per share) \| $ / shares		$ 10.00
Class A Common Stock \| Over-Allotment Option
Subsidiary, Sale of Stock [Line Items]
Shares issued in transaction (in shares)		1,280
Class B Common Stock
Subsidiary, Sale of Stock [Line Items]
Vote per share (in votes) \| vote			1
Class B Common Stock \| Pre-IPO LLC Members
Subsidiary, Sale of Stock [Line Items]
Shares issued (in shares)		22,747

Basis of presentation and significant accounting policies - Narrative (Details)	12 Months Ended
	Dec. 31, 2022 USD ($) carrier	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Concentration Risk [Line Items]
Restricted cash	$ 1,644,000	$ 1,953,000	$ 1,323,000
Carriers company wrote with \| carrier	150
Carriers company wrote with, provide national coverage \| carrier	58
Term of franchise contract	10 years
Interest related to franchise fee	$ 1,400,000	1,100,000	800,000
Weighted average amortization period (years)	2 years 8 months 26 days
Advertising expense	$ 1,000,000	1,300,000	$ 900,000
Right-of use asset	44,080,000	32,656,000
Operating lease liability	$ 71,574,000	$ 52,228,000
Web domain
Concentration Risk [Line Items]
Weighted average amortization period (years)	15 years
Software costs
Concentration Risk [Line Items]
Weighted average amortization period (years)	3 years
Furniture, fixtures, and equipment
Concentration Risk [Line Items]
Property, plant and equipment, useful life	5 years
Computer equipment
Concentration Risk [Line Items]
Property, plant and equipment, useful life	3 years
Royalty fees
Concentration Risk [Line Items]
Allowance for doubtful accounts	$ 0
Carrier One \| Total revenue \| Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk percentage	14.00%	17.00%	20.00%
Carrier Two \| Total revenue \| Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk percentage	12.00%	11.00%	13.00%
Carrier Three \| Total revenue \| Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk percentage			12.00%

Basis of presentation and significant accounting policies - Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Cash and cash equivalents	$ 28,743	$ 28,526	$ 24,913
Restricted cash	1,644	1,953	1,323
Cash and cash equivalents, and restricted cash	$ 30,387	$ 30,479	$ 26,236	$ 15,260

Revenues - Narrative (Details)	12 Months Ended
Revenues - Narrative (Details)	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Term of franchise contract	10 years
Amortization period	10 years

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Revenues	$ 209,390	$ 151,312	$ 117,014
Renewal commissions
Disaggregation of Revenue [Line Items]
Revenues	57,543	39,111	28,891
New business commissions
Disaggregation of Revenue [Line Items]
Revenues	24,126	22,108	17,324
Agency fees
Disaggregation of Revenue [Line Items]
Revenues	10,912	11,506	8,921
Contingent commissions
Disaggregation of Revenue [Line Items]
Revenues	7,684	9,926	16,675
Renewal royalty fees
Disaggregation of Revenue [Line Items]
Revenues	77,346	46,079	29,309
New business royalty fees
Disaggregation of Revenue [Line Items]
Revenues	18,244	14,616	10,623
Initial franchise fees
Disaggregation of Revenue [Line Items]
Revenues	10,853	6,516	4,236
Other franchise revenues
Disaggregation of Revenue [Line Items]
Revenues	1,279	297	222
Interest income
Disaggregation of Revenue [Line Items]
Revenues	1,403	1,153	813
Transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenues	92,581	72,725	55,136
Transferred over time
Disaggregation of Revenue [Line Items]
Revenues	$ 116,809	$ 78,587	$ 61,878

Revenues - Contract Balances (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Cost to obtain franchise contracts	$ 3,255	$ 1,973
Increase (decrease) in cost to obtain franchise contracts	1,282
Commissions and agency fees receivable, net	14,440	12,056
Increase (decrease) in commissions and fees receivable, net	2,384
Receivable from franchisees, net	28,767	29,673
Increase (decrease) in Receivable from franchisees, net	(906)
Contract liabilities	46,553	48,608	$ 34,201
Increase (decrease) in Contract liabilities	(2,055)	14,407	11,406
Contract Liability [Roll Forward]
Contract liability at beginning of period	48,608	34,201
Revenue recognized during the period	(10,853)	(6,516)
New deferrals	8,798	20,923
Contract liability at end of period	$ 46,553	$ 48,608	$ 34,201

Revenues - Contract Liability (Details) - Franchise Channel [Member] $ in Thousands	Dec. 31, 2022 USD ($)
Disaggregation of Revenue [Line Items]
2023	$ 6,031
2024	5,885
2025	5,755
2026	5,628
2027	5,434
Thereafter	17,820
Total	$ 46,553

Franchise fees receivable - Balance of Franchise Fees Receivable (Details) - Franchise fees receivable - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Franchise fees receivable	$ 35,606	$ 40,171
Less: Unamortized discount	(9,896)	(9,518)
Less: Allowance for uncollectible franchise fees	(487)	(303)	$ (149)
Total franchise fees receivable	$ 25,223	$ 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
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 7A
-URI https://asc.fasb.org/extlink&oid=123577603&loc=SL6953401-111524

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 20
-Section 55
-Paragraph 79
-URI https://asc.fasb.org/extlink&oid=124267575&loc=SL82922352-210448

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(3)(b))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 20
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=124255953&loc=SL82919253-210447

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 20
-Section 45
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=124255206&loc=SL82895884-210446

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 20
-Section 50
-Paragraph 5
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=124255953&loc=SL82919230-210447

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 20
-Section 55
-Paragraph 80
-URI https://asc.fasb.org/extlink&oid=124267575&loc=SL82922355-210448

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
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1405
-Paragraph (a)
-Subparagraph (2)

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

+ Details

Franchise fees receivable - Roll-Forward of Allowance (Details) - Franchise fees receivable - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	$ 303	$ 149
Charges to bad debts	4,078	1,173
Write offs	(3,894)	(1,019)
Ending balance	$ 487	$ 303

- Definition

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

+ References + Details

Allowance for uncollectible agency fees - Roll-Forward of Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Allowance for Doubtful Accounts Receivable [Roll Forward]
Charges to bad debts	$ 6,198	$ 2,999	$ 1,576
Agency Fees
Allowance for Doubtful Accounts Receivable [Roll Forward]
Beginning balance	489	468
Charges to bad debts	2,120	1,826
Write offs	(2,159)	(1,805)
Ending balance	$ 450	$ 489	$ 468

Property and equipment (Details) - USD ($) $ in Thousands	12 Months Ended
Property and equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 50,571	$ 37,218
Less accumulated depreciation	(15,224)	(12,285)
Property and equipment, net	35,347	24,933
Depreciation expense	6,100	4,500	$ 2,900
Furniture & fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	9,772	7,283
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	4,041	3,369
Network equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	423	514
Phone system
Property, Plant and Equipment [Line Items]
Property and equipment, gross	326	937
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 36,009	$ 25,115

Intangible assets - Components and Expected Amortization (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets, Net [Abstract]
Computer software & web domain	$ 5,970	$ 4,168
Less accumulated amortization	(1,483)	(1,370)
Intangible assets, net	$ 4,487	2,798
Weighted average amortization period (years)	2 years 8 months 26 days
Amortization expense	$ 800	400	$ 300
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract]
2023	1,685
2024	1,562
2025	1,133
2026	107
2027 and thereafter	0
Intangible assets, net	$ 4,487	$ 2,798

Employee benefit obligation (Details) $ in Millions	12 Months Ended
Employee benefit obligation (Details) $ in Millions	Dec. 31, 2022 USD ($) year	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Retirement Benefits [Abstract]
Minimum age to be eligible \| year	21
Minimum service period to be eligible	6 months
Employer match, percentage of salary deferral	100.00%
Employer match, percentage of compensation	3.00%
Employer match, vesting period	4 years
Matching contributions \| $	$ 1.0	$ 1.0	$ 0.8

Debt - Narrative (Details)		12 Months Ended
Debt - Narrative (Details)	Jul. 21, 2021 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Jul. 20, 2021 USD ($)
Debt Instrument [Line Items]
Leverage Ratio		2.50
Line of Credit
Debt Instrument [Line Items]
Additional commitments	$ 25,000,000
Letter of credit		$ 200,000
Remaining borrowing availability		49,800,000
Line of Credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing availability	50,000,000				$ 25,000,000
Revolver balance		0
Interest expense		700,000	$ 400,000	$ 100,000
Notes Payable to Banks
Debt Instrument [Line Items]
Principal amount of debt					$ 80,000,000
Debt issuance costs		800,000
Secured Debt
Debt Instrument [Line Items]
Principal amount of debt	$ 100,000,000	94,400,000
Secured Debt \| Debt Repayment, First Twelve Months
Debt Instrument [Line Items]
Periodic payment		600,000
Secured Debt \| Debt Repayment, Second 12 Months
Debt Instrument [Line Items]
Periodic payment		1,300,000
Secured Debt \| Debt Repayment, Third Twelve Months
Debt Instrument [Line Items]
Periodic payment		1,900,000
Secured Debt \| Debt Repayment, Last Twelve Months
Debt Instrument [Line Items]
Periodic payment		$ 2,500,000
Secured Debt \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	2.25%	2.50%

Debt - Leverage (Details)	12 Months Ended
Debt - Leverage (Details)	Dec. 31, 2022
Debt Instrument [Line Items]
Leverage Ratio	2.50
Less than 1.50
Debt Instrument [Line Items]
Leverage Ratio	1.50
Less than 1.50 \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%
Greater than 1.50
Debt Instrument [Line Items]
Leverage Ratio	1.50
Greater than 1.50 \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%
Greater than 2.50
Debt Instrument [Line Items]
Leverage Ratio	2.50
Greater than 2.50 \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	2.25%
Greater than 3.50
Debt Instrument [Line Items]
Leverage Ratio	3.50
Greater than 3.50 \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	2.50%

Debt - Schedule of Maturities of Note Payable (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Debt Disclosure [Abstract]
2023	$ 6,875
2024	9,375
2025	10,000
2026	68,125
2027	0
Total	$ 94,375

Income taxes - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Current income taxes
Federal	$ 0	$ 0	$ (1,719)
State and local	271	226	373
Total current income taxes	271	226	(1,346)
Deferred income taxes
Federal	(340)	(4,316)	217
State and local	2,568	1,798	94
Total deferred income taxes	2,228	(2,518)	311
Income tax expense (benefit)	$ 2,499	$ (2,292)	$ (1,035)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income taxes - Schedule of Reconciliation of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Income before taxes	$ 5,129	$ 6,004	$ 17,720
Income taxes at U.S. federal statutory rate	1,076	1,261	3,720
Tax on income not subject to entity level federal income tax	(483)	(617)	(2,264)
Non-deductible stock compensation costs	(1,478)	(4,530)	(3,004)
Non-deductible excess compensation	15	0	0
Non-deductible employee moving expenses	0	6	1
Meals & entertainment	101	25	47
Permanent Provision to Return	43	0	0
State income tax, net of federal benefit	2,268	1,553	524
Section 162(m) DTA Write-off	935	0	0
Other	22	10	(59)
Income tax expense (benefit)	$ 2,499	$ (2,292)	$ (1,035)

Income taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Net operating loss carryforwards	$ 13,172	$ 8,929
Investment in flow-through entity	142,146	116,747
Net deferred tax asset	$ 155,318	$ 125,676

Income taxes - Narrative (Details) - USD ($) shares in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Contingency [Line Items]
Uncertain tax positions	$ 0
Domestic Tax Authority
Income Tax Contingency [Line Items]
Net operating loss carryforwards	60,500,000
State and Local Jurisdiction
Income Tax Contingency [Line Items]
Net operating loss carryforwards	$ 600,000
LLC Units
Income Tax Contingency [Line Items]
Redemption of LLC Units (in shares)	2.4	1.5
LLC Units \| Noncontrolling interest holders
Income Tax Contingency [Line Items]
Redemption of LLC Units (in shares)	2.4	1.5	2.6
Tax Receivable Agreement
Income Tax Contingency [Line Items]
Percentage due to related parties	85.00%
Tax Receivable Agreement \| Pre-IPO LLC Members
Income Tax Contingency [Line Items]
Percentage due to related parties	85.00%
Due to related parties	$ 125,700,000	$ 101,000,000
Due to related parties, current	$ 0	$ 0

Stockholders' equity - Narrative (Details)	Dec. 31, 2022 vote shares	Dec. 31, 2021 shares	May 01, 2018 vote
Class of Stock [Line Items]
Vote per share (in votes)			1
Class A Common Stock
Class of Stock [Line Items]
Common stock shares outstanding (in shares) \| shares	23,034,287	20,198,005
Vote per share (in votes)	1
Class B Common Stock
Class of Stock [Line Items]
Common stock shares outstanding (in shares) \| shares	14,470,623	16,909,343
Vote per share (in votes)	1

Stockholders' equity - Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Pro forma earnings per share:
Income before taxes	$ 5,129	$ 6,004	$ 17,720
Less: income before taxes attributable to non-controlling interests	2,065	2,893	9,468
Income before taxes attributable to GSHD	3,064	3,111	8,252
Less: income tax expense (benefit) attributable to GSHD	2,499	(2,292)	(1,035)
Net income attributable to GSHD	$ 565	$ 5,403	$ 9,287
Weighted average shares of Class A common stock outstanding - basic (in shares)	20,995	19,181	16,785
Effect of dilutive securities, stock options (in shares)	778	1,632	1,598
Weighted average shares of Class A common stock outstanding - diluted (in shares)	21,773	20,813	18,383
Earnings per share of Class A common stock - basic (in dollars per share)		$ 0.28	$ 0.55
Earnings per share of Class A common stock - diluted (in dollars per share)		0.26	0.51
Class A Common Stock
Pro forma earnings per share:
Earnings per share of Class A common stock - basic (in dollars per share)	$ 0.03	0.28	0.55
Earnings per share of Class A common stock - diluted (in dollars per share)	$ 0.03	$ 0.26	$ 0.51

Non-controlling interest - Narrative (Details) shares in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2020 shares
Noncontrolling Interest [Line Items]
Distributions \| $	$ 0	$ 0
Noncontrolling interest holders
Noncontrolling Interest [Line Items]
Ownership interest held by non-controlling interest holders	0.436	0.480
LLC Units
Noncontrolling Interest [Line Items]
Conversion ratio	1
Redemption of LLC Units (in shares)	2.4	1.5
LLC Units \| Noncontrolling interest holders
Noncontrolling Interest [Line Items]
Redemption of LLC Units (in shares)	2.4	1.5	2.6
Class A Common Stock
Noncontrolling Interest [Line Items]
Redemption of LLC Units (in shares)	2.4	1.5
Class B Common Stock
Noncontrolling Interest [Line Items]
Redemption of LLC Units (in shares)	2.4	1.5

Non-controlling interest - Ownership interests (Details) - shares shares in Thousands			12 Months Ended
	Aug. 09, 2021	Aug. 10, 2020	Dec. 31, 2022	Dec. 31, 2021
Noncontrolling Interest [Line Items]
Number of LLC units outstanding (in shares)	36,830	36,539	37,505	37,107
Noncontrolling interest, ownership percentage			100.00%	100.00%
Goosehead Financial, LLC
Noncontrolling Interest [Line Items]
Ownership interest held by Goosehead Insurance, Inc.			61.40%	54.40%
Noncontrolling interest holders
Noncontrolling Interest [Line Items]
Ownership interest held by non-controlling interest holders			38.60%	45.60%
Parent
Noncontrolling Interest [Line Items]
Number of LLC units outstanding (in shares)			23,034	20,198
Non-controlling interest
Noncontrolling Interest [Line Items]
Number of LLC units outstanding (in shares)			14,471	16,909

Non-controlling interest - Effect of changes in ownership interests on equity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Noncontrolling Interest [Line Items]
Net Income attributable to Goosehead Insurance Inc.	$ 565	$ 5,403	$ 9,287
Decrease in additional paid-in capital as a result of the redemption of LLC interests	0	0	0
Increase in additional paid-in capital as a result of activity under employee stock purchase plan	699	796	542
Total effect of changes in ownership interest on equity attributable to Goosehead Insurance Inc.	(6,334)	2,471	6,304
Parent
Noncontrolling Interest [Line Items]
Decrease in additional paid-in capital as a result of the redemption of LLC interests	(7,598)	(3,728)	(3,525)
Increase in additional paid-in capital as a result of activity under employee stock purchase plan	$ 699	$ 796	$ 542

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: 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 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Equity-based compensation - Schedule of Equity-Based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 19,642	$ 7,292	$ 4,745
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 19,642	$ 7,292	$ 4,745

Equity-based compensation - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)	1,482,000	154,000	1,010,000
Equity-based compensation expense	$ 41.5
Proceeds from stock options exercised	6.1
Total fair value of stock options vested	$ 8.9	$ 2.6	$ 1.7
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period for recognition	2 years 7 days
Board of Directors and Managing Directors \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)	1,482,000	153,500
Managing Directors \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)			900,000

Equity-based compensation - Schedule of Stock Options Valuation Assumptions (Details) - Stock Options - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility		45.00%	40.00%
Expected volatility rate, minimum	55.00%
Expected volatility rate, maximum	65.00%
Expected dividend yield	$ 0	$ 0	$ 0
Expected term (in years)		4 years 3 months	6 years 6 months
Risk-free interest rate		0.29%	0.47%
Risk free interest rate, minimum		1.19%
Risk free interest rate, maximum		4.26%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	3 years 3 months
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	4 years

Equity-based compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Stock Options
Beginning balance, outstanding (in shares)	2,069	2,290	1,730
Granted (in shares)	1,482	154	1,010
Exercised (in shares)	(381)	(351)	(450)
Forfeited (in shares)	(468)	(24)	0
Expired (in shares)	(13)	0	0
Ending balance, outstanding, (in shares)	2,689	2,069	2,290
Options vested and exercisable as of December 31, 2022 (in shares)	906
Options expected to vest as of December 31, 2022 (in shares)	1,783
Weighted Average Exercise Price
Beginning balance, outstanding, weighted average exercise price (in dollars per share)	$ 34.68	$ 24.63	$ 11.13
Granted (in dollars per share)	97.49	131.87	41.24
Exercised (in dollars per share)	14.25	10.83	10.00
Forfeited (in dollars per share)	82.82	45.45	0
Expirations (in dollars per share)	40.88	0	0
Ending balance, outstanding, weighted average exercise price (in dollars per share)	63.84	$ 34.68	$ 24.63
Options vested and exercisable as of December 31, 2022 (in dollars per share)	27.36
Options expected to vest as of December 31, 2022 (in dollars per share)	$ 81.94
Aggregate Intrinsic Value
Beginning balance, outstanding aggregate intrinsic value	$ 26,625	$ 20,901	$ 5,969
Granted, aggregate intrinsic value	61,808	7,280	16,322
Exercised, aggregate intrinsic value	1,886	1,186	1,390
Forfeited, aggregate intrinsic value	15,584	370	0
Expired, aggregate intrinsic value	219	0	0
Ending balance, outstanding aggregate intrinsic value	70,744	$ 26,625	$ 20,901
Options vested and exercisable as of December 31, 2022, intrinsic value	8,815
Options expected to vest as of December 31, 2022, intrinsic value	$ 61,929
Outstanding as of December 31, 2022, Weighted Average Remaining Contractual Life (Years)	7 years 7 months 17 days
Options vested and exercisable as of December 31, 2022, Weighted Average Remaining Contractual Life (Years)	5 years 7 months 13 days
Options expected to vest as of December 31, 2022, Weighted Average Remaining Contractual Life (Years)	8 years 7 months 17 days

Equity-based compensation - Summary of Unvested Stock Option Activity (Details) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Stock Options
Unvested at beginning of year (in shares)	1,603	1,977	1,517
Vested (in shares)	(834)	(504)	(550)
Granted (in shares)	1,482	154	1,010
Forfeited (in shares)	(468)	(24)	0
Unvested at end of year (in shares)	1,783	1,603	1,977
Weighted Average Grant Date Fair Value
Unvested at beginning of year (in dollars per share)	$ 15.20	$ 10.09	$ 3.15
Vested (in dollars per share)	10.64	5.09	3.12
Granted (in dollars per share)	41.71	47.43	16.16
Forfeited (in dollars per share)	33.33	15.44	0
Unvested at end of year (in dollars per share)	$ 34.73	$ 15.20	$ 10.09

Dividends - Summary of total estimated dividends to be paid (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands					12 Months Ended
	Aug. 09, 2021	Jul. 28, 2021	Aug. 10, 2020	Jul. 30, 2020	Dec. 31, 2022	Dec. 31, 2021
Dividends Payable [Line Items]
Dividends declared	$ 60,000		$ 42,000
LLC units held (in shares)	36,830		36,539		37,505	37,107
LLC Units
Dividends Payable [Line Items]
Dividends declared		$ 60,000		$ 42,000	$ 0
Class A Common Stock
Dividends Payable [Line Items]
Dividends declared	$ 31,657		$ 19,843
Dividends per share (in dollars per share)	$ 1.63		$ 1.15
LLC units held (in shares)	19,429		17,263
Class B Common Stock
Dividends Payable [Line Items]
Dividends declared	$ 28,343		$ 22,157
LLC units held (in shares)	17,401		19,276

Leases - Narrative (Details)	Dec. 31, 2022
Leases [Abstract]
Operating leases, lease term	8 years

Leases - Lease Information, Rent Expense and Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Lease Information:
Right-of use asset	$ 44,080	$ 32,656
Short term lease liabilities	6,627	4,893
Long term lease liabilities	64,947	47,335
Total lease liabilities	$ 71,574	$ 52,228
Weighted average remaining lease term (in years)	7 years 5 months 12 days	8 years 1 month 6 days
Weighted average incremental borrowing rate	3.90%	3.10%
Rent Expense:
Gross operating lease cost	$ 7,034	$ 4,798
Sublease income	(27)	(7)
Net lease cost	7,007	4,791
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	(5,615)	(16,092)
Right of use assets obtained in exchange for lease obligation
Operating leases	$ 15,907	$ 10,143

Leases - Future Minimum Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
2023	$ 8,816
2024	11,130
2025	11,316
2026	11,532
2027	11,222
Thereafter	29,060
Total lease payments	83,076
Less: imputed interest	(11,502)
Future maturity of lease liability	$ 71,574	$ 52,228

Segment information - Schedule of Segment Information (Details)	12 Months Ended
	Dec. 31, 2022 segment
Segment Reporting [Abstract]
Number of Operating Segments	1