0001726978-24-000046 | 10-Q | XBRL Viewer

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Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Current Assets:
Cash and cash equivalents	$ 51,089,000	$ 41,956,000
Restricted cash	2,028,000	2,091,000
Commissions and agency fees receivable, net	7,487,000	12,903,000
Receivable from franchisees, net	10,034,000	9,720,000
Prepaid expenses	6,296,000	7,889,000
Total current assets	76,934,000	74,559,000
Receivable from franchisees, net of current portion	6,586,000	9,269,000
Property and equipment, net of accumulated depreciation	28,686,000	30,316,000
Right-of-use asset	37,121,000	38,406,000
Intangible assets, net of accumulated amortization	18,783,000	17,266,000
Deferred income taxes, net	193,518,000	181,209,000
Other assets	4,581,000	3,867,000
Total assets	366,209,000	354,892,000
Current Liabilities:
Accounts payable and accrued expenses	14,652,000	16,398,000
Premiums payable	2,028,000	2,091,000
Lease liability	9,194,000	8,897,000
Contract liabilities	3,611,000	4,129,000
Note payable	10,000,000	9,375,000
Liabilities under tax receivable agreement	4,952,000	0
Total current liabilities	44,437,000	40,890,000
Lease liability, net of current portion	55,233,000	57,382,000
Note payable, net of current portion	65,118,000	67,562,000
Contract liabilities, net of current portion	18,121,000	22,970,000
Liabilities under tax receivable agreement	155,060,000	149,302,000
Total liabilities	337,969,000	338,106,000
Additional paid in capital	112,428,000	103,228,000
Accumulated deficit	(45,459,000)	(47,056,000)
Total stockholders' equity	67,349,000	56,552,000
Non-controlling interests	(39,109,000)	(39,766,000)
Total equity	28,240,000	16,786,000
Total liabilities and equity	366,209,000	354,892,000
Class A Common Stock
Current Liabilities:
Common stock	252,000	250,000
Class B Common Stock
Current Liabilities:
Common stock	$ 128,000	$ 130,000

Debt

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Debt

On July 21, 2021, the Company refinanced its $25 million revolving credit facility and $80 million term note payable to a $50 million revolving credit facility and $100 million term note payable in order to obtain a more favorable interest rate on the outstanding debt. The Company also has the right, subject to approval by the administrative agent and each issuing bank, to increase the commitments under the credit facilities by an additional $25 million.

On April 26, 2023, the Company entered into Amendment No.1 of the Second Amended and Restated Credit Agreement, which provided that LIBOR should be replaced with SOFR.

On April 24, 2024, the Company entered into Amendment No. 2 of the Second Amended and Restated Credit Agreement, increasing the term note payable by $25 million and increasing the capacity of the revolving credit facility by $25 million to a total capacity of $75 million.

As of March 31, 2024, the Company had nothing drawn against the revolving credit facility and had a letter of credit of $0.2 million applied against the maximum borrowing availability, payable on July 21, 2026. Thus, amounts available to draw totaled $49.8 million. At March 31, 2024, the Company was accruing interest at SOFR plus 175 basis points. The revolving credit facility is collateralized by substantially all the Company’s assets, which includes rights to future commissions and royalties.

The term note is payable in quarterly installments of $0.6 million the first twelve months, $1.3 million the next twelve months, $1.9 million the next twelve months, and $2.5 million the last twenty-four months, with a balloon payment of $65.6 million on July 21, 2026. On May 31, 2023, the Company paid an additional $10.0 million toward the term note, reducing the final balloon payment to $55.6 million. The note is collateralized by substantially all of the Company’s assets, which includes rights to future commissions and royalties. Interest is calculated initially at LIBOR plus 225 basis points, then at an interest rate based on the Company's leverage ratio for the preceding period. As of March 31, 2024, the Company was accruing interest at SOFR plus 175 basis points.

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


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

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


	Amount
2024	$	7,500
2025	10,000
2026	58,125
2027	—
2028	—
Total	$	75,625

The Company’s note payable agreement contains certain restrictions and covenants. Under these restrictions, the Company is limited in the amount of debt incurred and distributions payable. As of March 31, 2024, the Company's maximum allowable trailing twelve months debt-to-EBITDA ratio, as defined by the credit agreement, was 4x. In addition, the credit agreement contains certain change of control provisions that, if broken, would trigger a default. Finally, the Company must maintain certain financial ratios. As of March 31, 2024, the Company was in compliance with these covenants.

Because of both instruments’ variable interest rate, the note payable balance at March 31, 2024 and December 31, 2023, 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

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+ Details

Litigation	3 Months Ended
Litigation	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Litigation	Litigation From time to time, GSHD may be involved in various legal proceedings, lawsuits and claims incidental to the conduct of the Company's business. The Company records accruals for legal contingencies to the extent that it has concluded that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. When a material loss contingency is reasonably possible but not probable, the Company does not record a liability, but instead discloses the nature and the amount of the claim, and an estimate of the loss or range of loss, if such an estimate can be made. In the opinion of the Company's management, the likely results of any ongoing legal matters are not expected, either individually or in the aggregate, to have a material adverse effect on the Company's financial position, results of operations or cash flows. On November 10, 2022, a verified stockholder class action complaint for declaratory relief, captioned Mickey Dollens v. Goosehead Insurance, Inc., C.A. No. 2022-1018-JTL, was filed in the Court of Chancery of the State of Delaware (the “Dollens Action”), alleging certain corporate governance documents adopted by the Company were invalid under Delaware law. On August 8, 2023, the parties entered into a proposed settlement providing for certain non-monetary benefits to the class (i.e., revisions to the Company's Stockholder Agreement). Additionally, the plaintiffs have petitioned the Court for attorneys’ fees and litigation expenses. While there can be no assurance regarding the ultimate outcome of the petition, the Company believes a potential loss, if any, would not be material.

Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth the calculation of basic earnings per share ("EPS") based on net income attributable to GSHD for the three months ended March 31, 2024 and 2023, divided by the basic weighted average number of Class A common stock as of March 31, 2024 and 2023 (in thousands, except per share amounts).

Diluted EPS 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.

Shares of the Company’s Class B common stock do not share in the earnings or losses attributable to Goosehead Insurance, Inc. and are therefore not participating securities. As such, separate presentation of basic and diluted earnings per share of Class B common stock under the two-class method has not been presented. Shares of the Company’s Class B common stock are, however, considered potentially dilutive shares of Class A common stock because shares of Class B common stock, together with the related LLC Units, are exchangeable into shares of Class A common stock on a one-for-one basis. The Company calculates the effects of the conversion of Class B shares to Class A shares using the "if-converted" method and includes such effects in the calculation of diluted EPS if the effects are dilutive.

The following table summarizes the calculation of EPS for the three months ended March 31, 2024 and 2023 (in thousands):


	Three Months Ended March 31,
	2024		2023
Numerator:
Net income (loss) attributable to GSHD - Basic	$	1,814	$	(81)
Less: net loss attributable to non-controlling interests(1)	(5)		—
Add: income tax effect on income attributable to non-controlling interests assuming conversion of Class B common shares(1)	170		—
Net income (loss) available to GSHD - Diluted	$	1,979	$	(81)

Denominator:
Basic EPS
Weighted average outstanding Class A common shares - Basic	25,087		23,206
Earnings per share of Class A common stock - Basic	$	0.07	$	—

Diluted EPS
Weighted average outstanding Class A common shares - Basic	25,087		23,206
Effect of dilutive securities:
Weighted average outstanding Class B common shares (if-converted)(1)	12,864		—
Stock options(2)	888		—
Weighted average outstanding Class A common shares - Diluted	38,839		23,206

Earnings per share of Class A common stock - Diluted	$	0.05	$	—

(1) For the three months ended March 31, 2024, the impact of the conversion of Class B common shares to Class A common shares calculated under the if-converted method was dilutive, and as such, (a) 12,864 common shares (assuming the conversion of all outstanding class B common stock) were included in the Weighted average outstanding Class A common shares - Diluted and (b) $0.2 million of non-controlling interest net income (after incremental tax effect from assuming conversion of all outstanding class B common stock), was added back to Net income attributable to GSHD - Basic to arrive at Net income available to GSHD - diluted. For the three months ended March 31, 2023, the impact of the conversion of Class B common shares to Class A common shares is excluded from the calculation of Diluted EPS because inclusion of such shares would be anti-dilutive.

(2) Dilutive stock options is computed using the treasury stock method, which are not participating securities. 967 stock options were excluded from the computation of diluted earnings per share of Class A common stock for the three months ended March 31, 2024 because the effect

would have been anti-dilutive. 3,235 stock options were excluded from the computation of diluted earnings per share of Class A common stock for the three months ended March 31, 2023 because the effect would have been anti-dilutive.

Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Revenues	$ 64,460	$ 57,955
Renewal Commissions
Disaggregation of Revenue [Line Items]
Revenues	15,961	15,818
New Business Commissions
Disaggregation of Revenue [Line Items]
Revenues	5,681	5,517
Agency Fees
Disaggregation of Revenue [Line Items]
Revenues	1,911	2,230
Contingent Commissions
Disaggregation of Revenue [Line Items]
Revenues	2,668	1,920
Renewal Royalty Fees
Disaggregation of Revenue [Line Items]
Revenues	29,053	22,752
New Business Royalty Fees
Disaggregation of Revenue [Line Items]
Revenues	6,234	5,671
Initial Franchise Fees
Disaggregation of Revenue [Line Items]
Revenues	2,245	3,063
Other Franchise Revenues
Disaggregation of Revenue [Line Items]
Revenues	458	587
Interest Income
Disaggregation of Revenue [Line Items]
Revenues	250	397
Transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenues	23,552	23,565
Transferred over time
Disaggregation of Revenue [Line Items]
Revenues	$ 40,908	$ 34,390

Summary of Significant Accounting Policies - Schedule of Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Cash and cash equivalents	$ 51,089	$ 41,956	$ 24,588
Restricted cash	2,028		1,590
Cash and cash equivalents, and restricted cash	$ 53,117	$ 44,047	$ 26,178	$ 30,387

Intangible assets - Components and Expected Amortization (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Finite-Lived Intangible Assets, Net [Abstract]
Intangible assets, gross	$ 22,660		$ 20,404
Less: accumulated amortization	(3,877)		(3,138)
Intangible assets, net	18,783		17,266
Amortization expense	700	$ 300
Computer software & web domain
Finite-Lived Intangible Assets, Net [Abstract]
Intangible assets, gross	15,765		13,509
Books of business
Finite-Lived Intangible Assets, Net [Abstract]
Intangible assets, gross	$ 6,895		$ 6,895

Equity-Based Compensation	3 Months Ended
Equity-Based Compensation	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Equity-Based Compensation	Equity-Based CompensationStock option expense was $7.4 million for the three months ended March 31, 2024. Stock option expense was $6.6 million for the three months ended March 31, 2023.

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2024	Dec. 31, 2023
Class A Common Stock
Common stock par value (in dollars per share)	$ 0.01	$ 0.01
Common stock shares authorized (in shares)	300,000	300,000
Common stock shares issued (in shares)	25,230	24,966
Common stock shares outstanding (in shares)	25,230	24,966
Class B Common Stock
Common stock par value (in dollars per share)	$ 0.01	$ 0.01
Common stock shares authorized (in shares)	50,000	50,000
Common stock shares issued (in shares)	12,758	12,954
Common stock shares outstanding (in shares)	12,758	12,954

Debt - Narrative (Details) $ in Millions		3 Months Ended
Debt - Narrative (Details) $ in Millions	May 31, 2023 USD ($)	Mar. 31, 2024 USD ($)	Apr. 24, 2024 USD ($)	Jul. 21, 2021 USD ($)	Jul. 20, 2021 USD ($)
SOFR \| Less than 1.50
Debt Instrument [Line Items]
Interest Rate		1.75%
Revolving Credit Facility
Debt Instrument [Line Items]
Additional commitments				$ 25.0
Line of Credit
Debt Instrument [Line Items]
Letter of credit		$ 0.2
Remaining borrowing availability		49.8
Line of Credit \| Subsequent Event
Debt Instrument [Line Items]
Principal amount of debt			$ 25.0
Line of Credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing availability				50.0	$ 25.0
Revolver balance		$ 0.0
Line of Credit \| Revolving Credit Facility \| Subsequent Event
Debt Instrument [Line Items]
Maximum borrowing availability			25.0
2nd Amendment \| Subsequent Event
Debt Instrument [Line Items]
Additional commitments			$ 75.0
Notes Payable to Bank
Debt Instrument [Line Items]
Principal amount of debt					$ 80.0
Secured Debt
Debt Instrument [Line Items]
Principal amount of debt				$ 100.0
EBITDA ratio		4
Secured Debt \| Debt Repayment, First Twelve Months
Debt Instrument [Line Items]
Periodic payment		$ 0.6
Secured Debt \| Debt Repayment, Next 12 Months
Debt Instrument [Line Items]
Periodic payment		1.3
Secured Debt \| Debt Repayment, Following 12 Months
Debt Instrument [Line Items]
Periodic payment		1.9
Secured Debt \| Debt Repayment, Last 24 Months
Debt Instrument [Line Items]
Periodic payment		2.5
Secured Debt \| Debt Repayment, Balloon Payment
Debt Instrument [Line Items]
Periodic payment	$ 55.6	$ 65.6
Payment made against final balloon payment	$ 10.0
Secured Debt \| LIBOR
Debt Instrument [Line Items]
Interest Rate		2.25%

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes GSHD is the sole managing member of GF, which is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, GF is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by GF is passed through to and included in the taxable income or loss of its members, including GSHD, on a pro rata basis. GSHD is subject to U.S. federal income taxes, in addition to state and local income taxes, with respect to GSHD's allocable share of income of GF. Income tax expense (benefit) Provision benefit from income taxes for the three months ended March 31, 2024 was $1.8 million compared to $0.1 million for the three months ended March 31, 2023. The effective tax rate was 5,753% for the three months ended March 31, 2024 and 31% for the three months ended March 31, 2023. The change in the effective tax rate for the three months ended March 31, 2024, compared to the three months ended March 31, 2023, was primarily due to the deferred tax impact of additional state tax filing requirements identified by the Company. Deferred taxes Deferred tax assets at March 31, 2024 were $193.5 million compared to $181.2 million at December 31, 2023. The primary contributing factors to the increase in deferred tax assets are additional redemptions of LLC Units of GF for shares of Class A common stock of GSHD during the three months ended March 31, 2024 and an increase in the blended state tax rate due to additional state tax filing requirements. Tax Receivable Agreement GF intends to make an election under Section 754 of the Internal Revenue Code of 1986, as amended, and the regulations thereunder (the “Code”) effective for each taxable year in which a redemption or exchange of LLC Units and corresponding Class B common stock for shares of Class A common stock occurs. Future taxable redemptions or exchanges are expected to result in tax basis adjustments to the assets of GF that will be allocated to the Company and thus produce favorable tax attributes. These tax attributes would not be available to GSHD in the absence of those transactions. The anticipated tax basis adjustments are expected to reduce the amount of tax that GSHD would otherwise be required to pay in the future. GSHD entered into a tax receivable agreement with the Pre-IPO LLC Members on May 1, 2018 that provides for the payment by GSHD to the Pre-IPO LLC Members of 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax or franchise tax that GSHD actually realizes as a result of (i) any increase in tax basis in GSHD's assets and (ii) tax benefits related to imputed interest deemed arising as a result of payments made under the tax receivable agreement. During the three months ended March 31, 2024, an aggregate of 196,121 LLC Units were redeemed by the Pre-IPO LLC Members for newly issued shares of Class A common stock. In connection with these redemptions, GSHD received 196,121 LLC Units, which resulted in an increase in the tax basis of its investment in GF subject to the provisions of the tax receivable agreement. The Company recognized a liability for the TRA Payments due to the Pre-IPO LLC Members, representing 85% of the aggregate tax benefits the Company expects to realize from the tax basis increases related to the redemptions of LLC Units, after concluding it was probable that such TRA Payments would be paid based on its estimates of future taxable income. As of March 31, 2024, the total amount of TRA Payments due to the Pre-IPO LLC Members under the tax receivable agreement was $160.0 million, of which $5.0 million was current and included in Liabilities under tax receivable agreement within Current liabilities on the Condensed Consolidated Balance Sheet. Future exchanges of LLC Units for Class A common stock will result in additional TRA payments. Uncertain tax positions GSHD has determined there are no material uncertain tax positions as of March 31, 2024.

- 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

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-Topic 946
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-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Franchise Fees Receivable - Schedule of Allowance for Uncollectible Franchise Fees (Details) - Franchise Fees Receivable - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 223	$ 487
Charges to bad debts	322	762
Write offs	(496)	(902)
Ending balance	$ 49	$ 347

- Definition

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

+ References + Details

Organization	3 Months Ended
Organization	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Goosehead Insurance, Inc. (“GSHD”) is the sole managing member of Goosehead Financial, LLC (“GF”) and has the sole voting power and control of management of GF. Accordingly, GSHD consolidates the financial results of GF and reports non-controlling interest in GSHD’s condensed consolidated financial statements. GF was organized on January 1, 2016 as a Delaware Limited Liability Company and is headquartered in Westlake, TX. GSHD (collectively with its consolidated subsidiaries, the “Company”) provides personal and commercial property and casualty insurance brokerage services for its clients through a network of corporate-owned agencies and franchise units across the nation. The Company had 14 and 12 corporate-owned locations in operation at March 31, 2024 and 2023, respectively. Franchisees are provided access to Carrier Appointments, product training, technology infrastructure, client service centers and back office services. During the three months ended March 31, 2024 and 2023, the Company onboarded 25 and 83 franchise locations, respectively, and had 1,155 and 1,387 operating franchise locations as of March 31, 2024 and 2023, respectively. No franchises were purchased during the three months ended March 31, 2024 and 2023. All intercompany accounts and transactions have been eliminated in consolidation.

Non-controlling interest - Narrative (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2024 shares
Noncontrolling interest holders
Noncontrolling Interest [Line Items]
Ownership interest held by non-controlling interest holders	0.339
LLC Units
Noncontrolling Interest [Line Items]
Conversion ratio	1
Redemption of LLC Units (in shares)	196
LLC Units \| Noncontrolling interest holders
Noncontrolling Interest [Line Items]
Redemption of LLC Units (in shares)	196
Class A Common Stock
Noncontrolling Interest [Line Items]
Redemption of LLC Units (in shares)	196
Class B Common Stock
Noncontrolling Interest [Line Items]
Redemption of LLC Units (in shares)	196

Revenue (Tables)

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

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


	Three Months Ended March 31,
		2024		2023
Type of revenue stream:
Commissions and agency fees
Renewal Commissions		$	15,961	$	15,818
New Business Commissions		5,681		5,517
Agency Fees		1,911		2,230
Contingent Commissions		2,668		1,920
Franchise revenues
Renewal Royalty Fees		29,053		22,752
New Business Royalty Fees		6,234		5,671
Initial Franchise Fees		2,245		3,063
Other Franchise Revenues		458		587
Interest Income		250		397
Total Revenues		$	64,460	$	57,955

Timing of revenue recognition:
Transferred at a point in time		$	23,552	$	23,565
Transferred over time		40,908		34,390
Total Revenues		$	64,460	$	57,955

Schedule of Contract Balances

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


	March 31, 2024		December 31, 2023		Increase/(decrease)
Cost to obtain franchise contracts(1)	$	2,048	$	2,309	$	(261)
Commissions and agency fees receivable, net(2)	7,487		12,903		(5,416)
Receivable from franchisees(2)	16,620		18,989		(2,369)
Contract liabilities(2)(3)	21,732		27,099		(5,367)

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

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

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

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



Contract liabilities at December 31, 2023	$	27,099
Revenue recognized during the period	(2,245)
New deferrals(1)	855
Write offs(2)	(3,977)
Contract liabilities at March 31, 2024	$	21,732

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

(2) Franchise Fees, net of recognized revenue, no longer deferred due to the termination of the Franchise Agreement.

Organization - Narrative (Details)	3 Months Ended
Organization - Narrative (Details)	Mar. 31, 2024 location franchise	Mar. 31, 2023 location franchise
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Corporate-owned locations (in locations) \| location	14	12
Franchise locations sold (in franchises)	25	83
Operating franchise locations (in franchises)	1,155	1,387
Franchises purchased (in franchises)	0	0

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Combination	All intercompany accounts and transactions have been eliminated in consolidation.
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the annual disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated financial positions at March 31, 2024 and December 31, 2023, and the condensed consolidated statements of operations, stockholders' equity and statements of cash flows for the three months ended March 31, 2024 and 2023. The interim period condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements that are included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results that can be expected for the entire year. The Company experiences seasonal fluctuations of its revenue due to the timing of contingent commission revenue recognition and trends in housing market activity.
Reclassification	Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements.
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.
Intangible Assets	Intangible Assets Intangible assets are stated at cost less accumulated amortization and reflect amounts paid for the Company’s web domain, computer software costs, and purchased books of business (customer accounts). The web domain is amortized over a useful life of fifteen years, computer software costs are amortized over a useful life of three to ten years, and books of business (customer accounts) are amortized over a useful life of eight years.
Asset Impairment	Asset Impairment The Company reviews all of its identifiable assets for impairment periodically and whenever events or changes in business circumstances indicate that the carrying value of the assets may not be recoverable. In reviewing identifiable assets, if the undiscounted future cash flows were less than the carrying amount of the respective assets, an indicator of impairment would exist, and further analysis would be required to determine whether or not a loss would need to be charged against current period earnings as a component of general and administrative expenses. Based on a review of tangible assets during the three months ended March 31, 2024, the Company identified one office lease that will be subleased and completed a recoverability assessment for assets at that location. Based on the results of the recoverability assessment, the Company determined that the undiscounted cash flows of the assets were below their carrying values. As a result, the Company compared the fair values of the assets to their carrying values and recorded an impairment expense of $0.1 million of property and equipment and $0.2 million of right-of-use asset for the amount the carrying values exceeded the fair values. The Company determined the fair values by estimating sublease cash flows based on market rates for similar properties and discounted them using the Company's internal borrowing rate.
Income Taxes	Income Taxes The Company accounts for income taxes pursuant to the asset and liability method which requires the recognition of deferred income tax assets and liabilities related to the expected future tax consequences arising from temporary differences between the carrying amounts and tax bases of assets and liabilities based on enacted statutory tax rates applicable to the periods in which the temporary differences are expected to reverse. Any effects of changes in income tax rates or laws are included in income tax expense in the period of enactment.
Restricted Cash	Restricted Cash The Company holds premiums received from the insured, but not yet remitted to the Carrier, in a fiduciary capacity.
Recently adopted and not yet adopted accounting pronouncements	Accounting pronouncements not yet adopted In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740). This standard requires the Company to provide further disaggregated income tax disclosures for specific categories on the effective tax rate reconciliation, as well as additional information about federal, state/local and foreign income taxes. The standard also requires the Company to annually disclose its income taxes paid (net of refunds received), disaggregated by jurisdiction. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The standard is to be applied on a prospective basis, although optional retrospective application is permitted. The Company is currently evaluating the impact this guidance will have on its financial statement disclosures.
Framework for Measuring Fair Value	The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described as follows: •Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets. •Level 2—Significant other observable inputs other than Level 1 prices such as quoted prices in markets that are not active, quoted prices for similar assets or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset. •Level 3—Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

Revenue

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue

Commissions and fees

The Company earns commissions, which are paid as a percentage of the policy premiums placed by the Company, by performing its obligation to identify, place, and make effective insurance coverage on behalf of its customer, the insured. The Company defines the term of the policy as the contractual period the policy provides insurance coverage to the insured, which is typically 1 year or less. Commissions earned for the placement of the initial policy term for a given insurance product are recorded as New Business Commissions. New Business Commissions are earned at a point in time on the effective date of the policy, which is when the customer’s unilateral right to cancel the policy without consideration expires, as the Company has no further performance obligations for the initial term once the policy is placed and made effective.

After the initial policy term for a given insurance product, the Company earns Renewal Commissions by assisting the customer to make effective a renewal policy that satisfies the customer’s current insurance coverage needs. The Company performs this obligation by monitoring the customer’s policy to ensure a renewal is offered by the carrier and that the client promptly pays the premium. Alternatively, based on the needs of the customer, the Company may assist the customer to adjust coverage terms to satisfy its current insurance coverage needs or the Company may assist the customer to re-shop the insurance coverage to identify, place, and make effective a policy that better meets those needs. Renewal Commissions are earned at a point in time upon the effective date of the renewal policy term or upon the effective date of the replacement policy identified, placed, and made effective for the customer, which is when the customer’s unilateral right to non-renew the policy expires, as the Company has no further performance obligations for that renewal policy term.

The transaction price for commissions revenue is set as an estimate of the variable consideration to be received for the current policy term. This estimate includes the fixed consideration due based on the contractual terms of the current policy and adjustments for estimates of modifications of the contractual terms of the current policy and/or termination of the policy before the end of the current term. This variable consideration is constrained to the extent that it is probable there will not be a significant reversal of revenue.

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. Contingent commissions are estimated with a constraint applied and accrued in relation to the satisfaction of the performance obligations 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 recognizes revenue over time as a franchise places and makes effective a policy for an insured. The transaction price for the royalty fee for each policy made effective is set as the contractual royalty rate multiplied by an estimate of the commissions to be received by the franchise for the current term of the policy. This estimate includes the fixed consideration due based on the contractual terms of the current policy and adjustments for estimates of modifications of the contractual terms of the current policy and/or termination of the policy before the end of the current term. This variable consideration is constrained to the extent that it is probable there will not be a significant reversal of revenue.

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 selling 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 Condensed 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 table disaggregates revenue by source (in thousands):


	Three Months Ended March 31,
		2024		2023
Type of revenue stream:
Commissions and agency fees
Renewal Commissions		$	15,961	$	15,818
New Business Commissions		5,681		5,517
Agency Fees		1,911		2,230
Contingent Commissions		2,668		1,920
Franchise revenues
Renewal Royalty Fees		29,053		22,752
New Business Royalty Fees		6,234		5,671
Initial Franchise Fees		2,245		3,063
Other Franchise Revenues		458		587
Interest Income		250		397
Total Revenues		$	64,460	$	57,955

Timing of revenue recognition:
Transferred at a point in time		$	23,552	$	23,565
Transferred over time		40,908		34,390
Total Revenues		$	64,460	$	57,955

Contract Balances

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


	March 31, 2024		December 31, 2023		Increase/(decrease)
Cost to obtain franchise contracts(1)	$	2,048	$	2,309	$	(261)
Commissions and agency fees receivable, net(2)	7,487		12,903		(5,416)
Receivable from franchisees(2)	16,620		18,989		(2,369)
Contract liabilities(2)(3)	21,732		27,099		(5,367)

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

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

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

The Company records Franchise Fees as contract liabilities on the Condensed Consolidated Balance Sheets when the agreement is executed. Contract liabilities are reduced as fees are recognized in revenue over the expected life of the franchise license. As the term of the franchise license is typically ten years, substantially all of the franchise fee revenue recognized in the period ended March 31, 2024 was included in the contract liabilities balance as of December 31, 2023.

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



Contract liabilities at December 31, 2023	$	27,099
Revenue recognized during the period	(2,245)
New deferrals(1)	855
Write offs(2)	(3,977)
Contract liabilities at March 31, 2024	$	21,732

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

(2) Franchise Fees, net of recognized revenue, no longer deferred due to the termination of the Franchise Agreement.

- Definition

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

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+ Details

Stockholders' Equity

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Stockholders' Equity

Class A Common Stock

GSHD has a total of 25,230 thousand shares of its Class A common stock outstanding at March 31, 2024. 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 12,758 thousand shares of its Class B common stock outstanding at March 31, 2024. Each share of Class B common stock has no economic rights but entitles its holder to one vote per share on all matters submitted to a vote of the stockholders of GSHD.

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

Earnings Per Share

The following table summarizes the calculation of EPS for the three months ended March 31, 2024 and 2023 (in thousands):


	Three Months Ended March 31,
	2024		2023
Numerator:
Net income (loss) attributable to GSHD - Basic	$	1,814	$	(81)
Less: net loss attributable to non-controlling interests(1)	(5)		—
Add: income tax effect on income attributable to non-controlling interests assuming conversion of Class B common shares(1)	170		—
Net income (loss) available to GSHD - Diluted	$	1,979	$	(81)

Denominator:
Basic EPS
Weighted average outstanding Class A common shares - Basic	25,087		23,206
Earnings per share of Class A common stock - Basic	$	0.07	$	—

Diluted EPS
Weighted average outstanding Class A common shares - Basic	25,087		23,206
Effect of dilutive securities:
Weighted average outstanding Class B common shares (if-converted)(1)	12,864		—
Stock options(2)	888		—
Weighted average outstanding Class A common shares - Diluted	38,839		23,206

Earnings per share of Class A common stock - Diluted	$	0.05	$	—

Share Repurchase Program

On April 24, 2024, our board of directors approved a share repurchase program with authorization to purchase up to $100 million of our Class A common stock through March 31, 2025. The share repurchase program does not require the Company to acquire any dollar amount or number of shares of common stock and may be modified, suspended, or discontinued at any time. The timing, manner, price and amount of any repurchases will be determined at the discretion of management in accordance with applicable securities laws and other restrictions. Class A common stock acquired under the program will be retired upon repurchase. Additionally, for every repurchased share of Class A common stock, the Company will direct GF to repurchase, at the price paid to repurchase such share, and cancel an LLC unit of GF held by the Company.

- Definition

The entire disclosure for equity.

+ References

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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 16
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-16

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

+ Details

Franchise Fees Receivable (Tables)

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Schedule of Franchise Fees Receivable

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


	March 31, 2024		December 31, 2023
Franchise fees receivable(1)	$	8,622	$	15,096
Less: Unamortized discount(1)	(2,561)		(4,388)
Less: Allowance for uncollectible franchise fees(1)	(49)		(223)
Net franchise fees receivable(1)	$	6,012	$	10,485

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

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


Balance at December 31, 2023	$	508
Charges to bad debts	435
Write offs	(533)
Balance at March 31, 2024	$	410

Balance at December 31, 2022	$	450
Charges to bad debts	318
Write offs	(286)
Balance at March 31, 2023	$	482

Schedule of Allowance for Uncollectible Franchise Fees

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


Balance at December 31, 2023	$	223
Charges to bad debts	322
Write offs	(496)
Balance at March 31, 2024	$	49

Balance at December 31, 2022	$	487
Charges to bad debts	762
Write offs	(902)
Balance at March 31, 2023	$	347

Property and equipment

3 Months Ended

Mar. 31, 2024

Property, Plant and Equipment [Abstract]

Property and equipment

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


	March 31, 2024		December 31, 2023
Furniture & fixtures	$	11,413	$	11,306
Computer equipment	4,499		4,482
Network equipment	478		436
Phone system	326		326
Leasehold improvements	36,318		36,285
Total	53,034		52,834
Less accumulated depreciation	(24,348)		(22,518)
Property and equipment, net	$	28,686	$	30,316

Depreciation expense was $1.8 million and $1.8 million for three months ended March 31, 2024 and 2023, respectively.

Income Taxes - Narrative (Details) - USD ($)	3 Months Ended
Income Taxes - Narrative (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Income Tax Contingency [Line Items]
Tax benefit	$ 1,841,000	$ 81,000
Effective income tax rate	5753.00%	31.00%
Deferred income taxes, net	$ 193,518,000		$ 181,209,000
Uncertain tax positions	$ 0
LLC Units
Income Tax Contingency [Line Items]
Redemption of LLC Units (in shares)	196,000
Pre-IPO LLC
Income Tax Contingency [Line Items]
Liabilities under the tax receivable agreement	$ 160,000,000
Liabilities under the tax receivable agreement, current	$ 5,000,000
Pre-IPO LLC \| LLC Units
Income Tax Contingency [Line Items]
Redemption of LLC Units (in shares)	196,121
Tax Receivable Agreement
Income Tax Contingency [Line Items]
Percentage due to related parties	85.00%
Tax Receivable Agreement \| Pre-IPO LLC
Income Tax Contingency [Line Items]
Percentage due to related parties	85.00%

Allowance for Uncollectible Agency Fees - Schedule of Allowance for Uncollectible Agency Fees (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Charges to bad debts	$ 1,127	$ 1,655
Agency Fees
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	508	450
Charges to bad debts	435	318
Write offs	(533)	(286)
Ending balance	$ 410	$ 482

Stockholders' Equity - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pro forma earnings per share:
Net income (loss) attributable to GSHD - Basic	$ 1,814	$ (81)
Less: net loss attributable to non-controlling interests	(5)	0
Add: income tax effect on income attributable to non-controlling interests assuming conversion of Class B common shares	170	0
Net income (loss) available to GSHD - Diluted	$ 1,979	$ (81)
Weighted average shares of Class A common stock outstanding - basic (in shares)	25,087	23,206
Earnings per share of Class A common stock - basic (in dollars per share)	$ 0.07	$ 0
Weighted average outstanding Class B common shares (if-converted)	12,864	0
Effect of dilutive securities, stock options (in shares)	888	0
Weighted average shares of Class A common stock outstanding - diluted (in shares)	38,839	23,206
Earnings per share of Class A common stock - diluted (in dollars per share)	$ 0.05	$ 0
Noncontrolling interest, net interest income from diluted	$ 200
Class A Common Stock
Pro forma earnings per share:
Earnings per share of Class A common stock - basic (in dollars per share)	$ 0.07	0
Earnings per share of Class A common stock - diluted (in dollars per share)	$ 0.05	$ 0
Antidilutive securities excluded from computation of earnings per share (in shares)	967	3,235

Non-controlling interest (Tables)

3 Months Ended

Mar. 31, 2024

Noncontrolling Interest [Abstract]

Schedule of Ownership Interests

The following table summarizes the ownership interest in GF as of March 31, 2024 (in thousands):


	March 31, 2024
	LLC Units	Ownership %
Number of LLC Units held by GSHD	25,230	66.4%
Number of LLC Units held by non-controlling interest holders	12,758	33.6%
Number of LLC Units outstanding	37,988	100.0%

Allowance for Uncollectible Agency Fees (Tables)

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Schedule of Allowance for Uncollectible Agency Fees

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


	March 31, 2024		December 31, 2023
Franchise fees receivable(1)	$	8,622	$	15,096
Less: Unamortized discount(1)	(2,561)		(4,388)
Less: Allowance for uncollectible franchise fees(1)	(49)		(223)
Net franchise fees receivable(1)	$	6,012	$	10,485

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

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


Balance at December 31, 2023	$	508
Charges to bad debts	435
Write offs	(533)
Balance at March 31, 2024	$	410

Balance at December 31, 2022	$	450
Charges to bad debts	318
Write offs	(286)
Balance at March 31, 2023	$	482

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Schedule of Restrictions on Cash and Cash Equivalents

The following is a reconciliation of our cash and restricted cash balances as presented in the condensed consolidated statements of cash flows for the three months ended March 31, 2024 and 2023 (in thousands):


	March 31,
	2024		2023
Cash and cash equivalents	$	51,089	$	24,588
Restricted cash	2,028		1,590
Cash and cash equivalents, and restricted cash	$	53,117	$	26,178

Schedule of Reconciliation of Cash and Restricted Cash


	March 31,
	2024		2023
Cash and cash equivalents	$	51,089	$	24,588
Restricted cash	2,028		1,590
Cash and cash equivalents, and restricted cash	$	53,117	$	26,178

Intangible assets

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets

Intangible assets consisted of the following (in thousands):


	March 31, 2024		December 31, 2023
Computer software & web domain	$	15,765	$	13,509
Books of business	6,895		6,895
Total	22,660		20,404
Less: accumulated amortization	(3,877)		(3,138)
Intangible assets, net	$	18,783	$	17,266

Amortization expense was $0.7 million and $0.3 million for three months ended March 31, 2024 and 2023, respectively.

Debt - Schedule of Interest Rate Dependent of Leverage Ratio (Details)	3 Months Ended
	Mar. 31, 2024
Less than 1.50
Debt Instrument [Line Items]
Leverage Ratio	1.50
Less than 1.50 \| SOFR
Debt Instrument [Line Items]
Interest Rate	1.75%
Greater than 1.50
Debt Instrument [Line Items]
Leverage Ratio	1.50
Greater than 1.50 \| SOFR
Debt Instrument [Line Items]
Interest Rate	2.00%
Greater than 2.50
Debt Instrument [Line Items]
Leverage Ratio	2.50
Greater than 2.50 \| SOFR
Debt Instrument [Line Items]
Interest Rate	2.25%
Greater than 3.50
Debt Instrument [Line Items]
Leverage Ratio	3.50
Greater than 3.50 \| SOFR
Debt Instrument [Line Items]
Interest Rate	2.50%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482900/835-30-50-1

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(f))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-3

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481568/470-20-55-69B

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
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-Name Accounting Standards Codification
-Section 55
-Paragraph 69C
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481568/470-20-55-69C

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147481568/470-20-55-69E

Reference 8: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
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-Name Accounting Standards Codification
-Section 55
-Paragraph 69F
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481568/470-20-55-69F

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1D
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1D

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1D
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1D

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1D
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1D

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
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-Paragraph 1F
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1F

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1F

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1F

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1F
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1F

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Revenue - Narrative (Details)	3 Months Ended
Revenue - Narrative (Details)	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Franchise fees, term of contract	10 years
Amortization period	10 years
Franchise license revenue period	10 years

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the annual disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated financial positions at March 31, 2024 and December 31, 2023, and the condensed consolidated statements of operations, stockholders' equity and statements of cash flows for the three months ended March 31, 2024 and 2023. The interim period condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements that are included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results that can be expected for the entire year. The Company experiences seasonal fluctuations of its revenue due to the timing of contingent commission revenue recognition and trends in housing market activity.

Reclassification

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

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.

Intangible Assets

Intangible assets are stated at cost less accumulated amortization and reflect amounts paid for the Company’s web domain, computer software costs, and purchased books of business (customer accounts). The web domain is amortized over a useful life of fifteen years, computer software costs are amortized over a useful life of three to ten years, and books of business (customer accounts) are amortized over a useful life of eight years.

Asset Impairment

The Company reviews all of its identifiable assets for impairment periodically and whenever events or changes in business circumstances indicate that the carrying value of the assets may not be recoverable. In reviewing identifiable assets, if the undiscounted future cash flows were less than the carrying amount of the respective assets, an indicator of impairment would exist, and further analysis would be required to determine whether or not a loss would need to be charged against current period earnings as a component of general and administrative expenses.

Based on a review of tangible assets during the three months ended March 31, 2024, the Company identified one office lease that will be subleased and completed a recoverability assessment for assets at that location. Based on the results of the recoverability assessment, the Company determined that the undiscounted cash flows of the assets were below their carrying values. As a result, the Company compared the fair values of the assets to their carrying values and recorded an impairment expense of $0.1 million of property and equipment and $0.2 million of right-of-use asset for the amount the carrying values exceeded the fair values. The Company determined the fair values by estimating sublease cash flows based on market rates for similar properties and discounted them using the Company's internal borrowing rate.

Income Taxes

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

Restricted Cash

The Company holds premiums received from the insured, but not yet remitted to the Carrier, in a fiduciary capacity. Premiums received but not yet remitted included in restricted cash were $2.0 million and $1.6 million as of March 31, 2024 and 2023, respectively.


	March 31,
	2024		2023
Cash and cash equivalents	$	51,089	$	24,588
Restricted cash	2,028		1,590
Cash and cash equivalents, and restricted cash	$	53,117	$	26,178

Accounting pronouncements not yet adopted

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740). This standard requires the Company to provide further disaggregated income tax disclosures for specific categories on the effective tax rate reconciliation, as well as additional information about federal, state/local and foreign income taxes. The standard also requires the Company to annually disclose its income taxes paid (net of refunds received), disaggregated by jurisdiction. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The standard is to be applied on a prospective basis, although optional retrospective application is permitted. The Company is currently evaluating the impact this guidance will have on its financial statement disclosures.

Allowance for Uncollectible Agency Fees

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Allowance for Uncollectible Agency Fees

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


Balance at December 31, 2023	$	508
Charges to bad debts	435
Write offs	(533)
Balance at March 31, 2024	$	410

Balance at December 31, 2022	$	450
Charges to bad debts	318
Write offs	(286)
Balance at March 31, 2023	$	482

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net income (loss)	$ 1,809	$ (181)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	2,632	2,150
Impairment expense	347	0
Bad debt expense	1,127	1,655
Equity-based compensation	7,357	6,620
Impacts of tax receivable agreement	10,711	3,574
Deferred income taxes	(11,987)	(3,322)
Noncash lease activity	(821)	245
Cloud computing arrangement implementation costs	(191)	0
Changes in operating assets and liabilities:
Receivable from franchisees	1,919	1,332
Commissions and agency fees receivable	4,982	6,930
Prepaid expenses	1,593	(8,945)
Other assets	(606)	(424)
Accounts payable and accrued expenses	(1,437)	(3,477)
Contract liabilities	(5,367)	(6,444)
Premiums payable	(207)	(352)
Net cash provided by (used for) operating activities	11,860	(639)
Cash flows from investing activities:
Issuance of notes receivable to franchisees	(100)	0
Proceeds from notes receivable to franchisees	1	8
Capitalized software development costs	(2,560)	(784)
Cash consideration paid for asset acquisitions	0	(161)
Purchase of property and equipment	(222)	(1,756)
Net cash used for investing activities	(2,882)	(2,693)
Cash flows from financing activities:
Repayment of note payable	(1,875)	(1,250)
Proceeds from the issuance of Class A common stock	2,009	373
Member distributions and dividends	(42)	0
Net cash provided by (used for) financing activities	91	(877)
Net increase (decrease) in cash and restricted cash	9,070	(4,209)
Cash and cash equivalents, and restricted cash, beginning of period	44,047	30,387
Cash and cash equivalents, and restricted cash, end of period	53,117	26,178
Supplemental disclosures of cash flow data:
Cash paid during the period for interest	1,425	1,675
Cash paid for income taxes	$ 46	$ 2

Intangible assets (Tables)

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

Intangible assets consisted of the following (in thousands):


	March 31, 2024		December 31, 2023
Computer software & web domain	$	15,765	$	13,509
Books of business	6,895		6,895
Total	22,660		20,404
Less: accumulated amortization	(3,877)		(3,138)
Intangible assets, net	$	18,783	$	17,266

Debt (Tables)

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Schedule of Interest Rate Dependent of Leverage Ratio

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


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

Schedule of Maturities of Note Payable

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


	Amount
2024	$	7,500
2025	10,000
2026	58,125
2027	—
2028	—
Total	$	75,625

Franchise Fees Receivable - Schedule of Franchise Fees Receivable (Details) - Franchise Fees Receivable - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Franchise fees receivable	$ 8,622	$ 15,096
Less: Unamortized discount	(2,561)	(4,388)
Less: Allowance for uncollectible franchise fees	(49)	(223)	$ (347)	$ (487)
Net franchise fees receivable	$ 6,012	$ 10,485

- 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/exampleRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 80
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479294/326-20-55-80

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-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(3)(b))
-Publisher FASB
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-Name Regulation S-K (SK)
-Number 229
-Section 1405
-Paragraph (a)
-Subparagraph (1)
-Publisher SEC

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Name Regulation S-K (SK)
-Number 229
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Topic 326
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-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479319/326-20-50-5

+ Details

Property and equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total	$ 53,034		$ 52,834
Less accumulated depreciation	(24,348)		(22,518)
Property and equipment, net	28,686		30,316
Depreciation	1,800	$ 1,800
Furniture & fixtures
Property, Plant and Equipment [Line Items]
Total	11,413		11,306
Computer equipment
Property, Plant and Equipment [Line Items]
Total	4,499		4,482
Network equipment
Property, Plant and Equipment [Line Items]
Total	478		436
Phone system
Property, Plant and Equipment [Line Items]
Total	326		326
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total	$ 36,318		$ 36,285

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Class A Common Stock	Class B Common Stock	Total stockholders' equity	Common stock Class A Common Stock	Common stock Class B Common Stock	Additional paid in capital	Accumulated deficit	Non-controlling interest
Beginning balance (in shares) at Dec. 31, 2022					23,034	14,471
Beginning balance at Dec. 31, 2022	$ (33,624)			$ 10,670	$ 228	$ 146	$ 70,866	$ (60,570)	$ (44,294)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(181)			(81)				(81)	(100)
Exercise of stock options (in shares)					17
Exercise of stock options	173			173			173
Equity-based compensation	6,620			6,620			6,620
Activity under employee stock purchase plan (in shares)					4
Activity under employee stock purchase plan	201			201			201
Redemption of LLC Units (in shares)					323	323
Redemption of LLC Units	0			(990)	$ 3	$ (3)	(990)		990
Deferred tax adjustments related to Tax Receivable Agreement	828			699			699		129
Reallocation of Non-controlling interest	0			(103)				(103)	103
Ending balance (in shares) at Mar. 31, 2023					23,379	14,147
Ending balance at Mar. 31, 2023	(25,984)			17,189	$ 231	$ 143	77,569	(60,754)	(43,173)
Beginning balance (in shares) at Dec. 31, 2023		24,966	12,954		24,966	12,954
Beginning balance at Dec. 31, 2023	16,786			56,552	$ 250	$ 130	103,228	(47,056)	(39,766)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Distributions	(42)								(42)
Net income (loss)	1,809			1,814				1,814	(5)
Exercise of stock options (in shares)					65
Exercise of stock options	1,863			1,863	$ 1		1,862
Equity-based compensation	7,357			7,357			7,357
Activity under employee stock purchase plan (in shares)					2
Activity under employee stock purchase plan	146			146			146
Redemption of LLC Units (in shares)		196	196		196	196
Redemption of LLC Units	0			(605)	$ 2	$ (2)	(605)		605
Deferred tax adjustments related to Tax Receivable Agreement	322			439			439		(117)
Reallocation of Non-controlling interest	0			(217)				(217)	217
Ending balance (in shares) at Mar. 31, 2024		25,230	12,758		25,230	12,758
Ending balance at Mar. 31, 2024	$ 28,240			$ 67,349	$ 252	$ 128	$ 112,428	$ (45,459)	$ (39,109)

Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) office_lease	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)
Finite-Lived Intangible Assets [Line Items]
Number of office locations \| office_lease	1
Impairment of property and equipment		$ 100
Impairment of right-of-use-asset		$ 200
Restricted cash	$ 2,028		$ 1,590
Web domain
Finite-Lived Intangible Assets [Line Items]
Amortized over useful life	15 years
Computer Software Costs \| Minimum
Finite-Lived Intangible Assets [Line Items]
Amortized over useful life	3 years
Computer Software Costs \| Maximum
Finite-Lived Intangible Assets [Line Items]
Amortized over useful life	10 years
Book of Business
Finite-Lived Intangible Assets [Line Items]
Amortized over useful life	8 years

Non-controlling interest

3 Months Ended

Mar. 31, 2024

Noncontrolling Interest [Abstract]

Non-controlling interest

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

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

During the three months ended March 31, 2024, an aggregate of 196 thousand LLC Units were redeemed by the non-controlling interest holders. Pursuant to the GF LLC Agreement, GSHD issued 196 thousand shares of Class A common stock in connection with these redemptions and received 196 thousand LLC Interests, increasing GSHD's ownership interest in GF. Simultaneously, and in connection with these redemptions, 196 thousand shares of Class B common stock were surrendered and cancelled.

The following table summarizes the ownership interest in GF as of March 31, 2024 (in thousands):


	March 31, 2024
	LLC Units	Ownership %
Number of LLC Units held by GSHD	25,230	66.4%
Number of LLC Units held by non-controlling interest holders	12,758	33.6%
Number of LLC Units outstanding	37,988	100.0%

The weighted average ownership percentages for the applicable reporting periods are used to attribute net income to GSHD and the non-controlling interest holders. The non-controlling interest holders' weighted average ownership percentage for the three months ended March 31, 2024 was 33.9%.

Debt - Schedule of Maturities of Note Payable (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Debt Disclosure [Abstract]
2024	$ 7,500
2025	10,000
2026	58,125
2027	0
2028	0
Total	$ 75,625

Franchise Fees Receivable

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Franchise Fees Receivable

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


	March 31, 2024		December 31, 2023
Franchise fees receivable(1)	$	8,622	$	15,096
Less: Unamortized discount(1)	(2,561)		(4,388)
Less: Allowance for uncollectible franchise fees(1)	(49)		(223)
Net franchise fees receivable(1)	$	6,012	$	10,485

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

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


Balance at December 31, 2023	$	223
Charges to bad debts	322
Write offs	(496)
Balance at March 31, 2024	$	49

Balance at December 31, 2022	$	487
Charges to bad debts	762
Write offs	(902)
Balance at March 31, 2023	$	347

Property and equipment (Tables)

3 Months Ended

Mar. 31, 2024

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

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


	March 31, 2024		December 31, 2023
Furniture & fixtures	$	11,413	$	11,306
Computer equipment	4,499		4,482
Network equipment	478		436
Phone system	326		326
Leasehold improvements	36,318		36,285
Total	53,034		52,834
Less accumulated depreciation	(24,348)		(22,518)
Property and equipment, net	$	28,686	$	30,316

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2024	Apr. 22, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-38466
Entity Registrant Name	GOOSEHEAD INSURANCE, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-3886022
Entity Address, Address Line One	1500 Solana Blvd, Building 4, Suite 4500
Entity Address, City or Town	Westlake
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	76262
City Area Code	469
Local Phone Number	480-3669
Title of 12(b) Security	Class A Common Stock, par value $.01 per share
Trading Symbol	GSHD
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001726978
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		25,238,152
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		12,752,530

Equity-Based Compensation - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 7.4	$ 6.6

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
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+ Details

Non-controlling interest - Schedule of Ownership interests (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2024 shares
Noncontrolling Interest [Line Items]
Number of LLC units outstanding (in shares)	37,988
Noncontrolling interest, ownership percentage	100.00%
Goosehead Financial, LLC
Noncontrolling Interest [Line Items]
Ownership interest held by Goosehead Insurance, Inc.	66.40%
Noncontrolling interest holders
Noncontrolling Interest [Line Items]
Ownership interest held by non-controlling interest holders	33.60%
Parent
Noncontrolling Interest [Line Items]
Number of LLC units outstanding (in shares)	25,230
Non-controlling interest
Noncontrolling Interest [Line Items]
Number of LLC units outstanding (in shares)	12,758

Stockholders' Equity - Narrative (Details) shares in Thousands	Apr. 24, 2024 USD ($)	Mar. 31, 2024 vote shares	Dec. 31, 2023 shares
Class of Stock [Line Items]
Conversion ratio, Class B shares and related units		1
Subsequent Event
Class of Stock [Line Items]
Share repurchase program, authorized amount \| $	$ 100,000,000
Class A Common Stock
Class of Stock [Line Items]
Common stock shares outstanding (in shares) \| shares		25,230	24,966
Vote per share (in votes) \| vote		1
Class B Common Stock
Class of Stock [Line Items]
Common stock shares outstanding (in shares) \| shares		12,758	12,954
Vote per share (in votes) \| vote		1

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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

Revenue - Schedule of Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Cost to obtain franchise contracts	$ 2,048		$ 2,309
Increase (decrease) in cost to obtain franchise contracts	(261)
Commissions and agency fees receivable, net	7,487		12,903
Increase (decrease) in commissions and agency fees receivable, net	(5,416)
Receivables from franchisees	16,620		18,989
Increase (decrease) in receivables from franchisees	(2,369)
Contract liabilities	21,732		$ 27,099
Increase (decrease) in contract liability	(5,367)	$ (6,444)
Contract Liability [Roll Forward]
Contract liabilities at December 31, 2023	27,099
Revenue recognized during the period	(2,245)
New deferrals	855
Write offs	(3,977)
Contract liabilities at March 31, 2024	$ 21,732

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenues:
Revenues	$ 64,460	$ 57,955
Operating Expenses:
Employee compensation and benefits	42,130	36,882
General and administrative expenses	17,180	15,856
Bad debts	1,127	1,655
Depreciation and amortization	2,568	2,093
Total operating expenses	63,005	56,486
Income from operations	1,455	1,469
Other Income (Expense):
Interest expense	(1,487)	(1,731)
Loss before taxes	(32)	(262)
Tax benefit	(1,841)	(81)
Net income (loss)	1,809	(181)
Less: net loss attributable to non-controlling interests	(5)	(100)
Net income (loss) attributable to Goosehead Insurance, Inc.	$ 1,814	$ (81)
Earnings per share:
Basic (in dollars per share)	$ 0.07	$ 0
Diluted (in dollars per share)	$ 0.05	$ 0
Weighted average shares of Class A common stock outstanding
Basic (in shares)	25,087	23,206
Diluted (in shares)	38,839	23,206
Commissions and agency fees
Revenues:
Revenues	$ 26,221	$ 25,484
Franchise revenues
Revenues:
Revenues	37,989	32,074
Interest Income
Revenues:
Revenues	$ 250	$ 397