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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2018	Nov. 06, 2018
Entity Information [Line Items]
Entity Registrant Name	Goosehead Insurance, Inc.
Entity Central Index Key	0001726978
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Class A Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		13,533,267
Class B Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		22,746,667

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current Assets
Cash and cash equivalents	$ 18,067	$ 4,948
Restricted cash	533	418
Commissions and agency fees receivable, net	1,813	1,268
Receivable from franchisees, net	583	564
Prepaid expenses	947	521
Total current assets	21,943	7,719
Receivable from franchisees, net of current portion	1,930	1,361
Property and equipment, net of accumulated depreciation	6,943	6,845
Intangible assets, net of accumulated amortization	253	216
Other assets	130	565
Total assets	31,199	16,706
Current Liabilities:
Accounts payable and accrued expenses	3,015	2,759
Premiums payable	533	418
Unearned revenue	550	1,062
Dividends payable	0	550
Deferred rent	496	478
Note payable	2,250	500
Total current liabilities	6,844	5,767
Deferred income taxes, net	36	0
Deferred rent, net of current portion	4,196	3,916
Note payable, net of current portion	46,644	48,156
Total liabilities	57,720	57,839
Commitments and contingencies (see note 6)
Members’ deficit	0	(41,133)
Additional paid in capital	89,259	0
Accumulated deficit	(6,668)	0
Total stockholders' equity and members' deficit	82,953	(41,133)
Non-controlling interests	(109,474)	0
Total equity	(26,521)	(41,133)
Total liabilities and stockholders' equity	31,199	16,706
Class A Common Stock
Current Liabilities:
Common stock	135	0
Class B Common Stock
Current Liabilities:
Common stock	$ 227	$ 0

Condensed Consolidated Balance Sheets (Unaudited) Parenthetical - $ / shares	Sep. 30, 2018	Dec. 31, 2017
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)	13,533,000	0
Common stock shares outstanding (in shares)	13,533,000	0
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)	22,747,000	0
Common stock shares outstanding (in shares)	22,747,000	0

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues:
Revenues	$ 16,054	$ 10,807	$ 45,431	$ 31,576
Operating Expenses:
Employee compensation and benefits (including Class B unit compensation of $0 and $26,134 for the three and nine months ended September 30, 2018, respectively, and $1,150 and $1,335 for the three and nine months ended September 30, 2017, respectively)	8,956	7,186	49,646	17,629
General and administrative expenses	3,694	2,142	9,093	5,987
Bad debts	399	275	984	850
Depreciation and amortization	352	321	1,039	617
Total operating expenses	13,401	9,924	60,762	25,083
Income (loss) from operations	2,653	883	(15,331)	6,493
Other Income (Expense):
Other income (expense)	(22)	0	(22)	3,541
Interest expense	(1,631)	(674)	(3,598)	(1,734)
Income (loss) before taxes	1,000	209	(18,951)	8,300
Income tax expense	164	0	318	0
Net income (loss)	836	209	(19,269)	8,300
Less: net (loss) income attributable to non-controlling interests	595	209	(10,278)	8,300
Net income (loss) attributable to Goosehead Insurance, Inc.	$ 241	$ 0	$ (8,991)	0
Earnings per share:
Basic (in dollars per share)	$ 0.02	$ (0.66)	$ (0.66)
Diluted (in dollars per share)	$ 0.02		$ (0.66)
Weighted average shares of Class A common stock outstanding
Basic (in shares)	13,533		13,533
Diluted (in shares)	14,614		13,533
Pro forma income before taxes attributable to Goosehead Insurance, Inc.	$ 373		$ (8,705)
Tax expense	(164)	$ 0	(318)	$ 0
Net loss attributable to Goosehead Insurance, Inc.	241		(8,991)
Pro forma earnings per share:
Basic (in dollars per share)		$ 0.00		$ 0.17
Diluted (in dollars per share)		$ 0.00		$ 0.16
Pro forma weighted average shares of Class A common stock outstanding - basic (in shares)		13,533		13,533
Pro forma weighted average shares of Class A common stock outstanding - diluted (in shares)		14,614		14,522
Commissions and agency fees
Revenues:
Revenues	9,760	$ 6,692	28,072	$ 19,908
Franchise revenues
Revenues:
Revenues	6,180	4,048	17,060	11,499
Interest income
Revenues:
Revenues	$ 114	67	$ 299	169
Pro Forma
Other Income (Expense):
Income tax expense		20		774
Weighted average shares of Class A common stock outstanding
Pro forma income before taxes attributable to Goosehead Insurance, Inc.		78		3,096
Tax expense		(20)		(774)
Net loss attributable to Goosehead Insurance, Inc.		$ 58		$ 2,322

Condensed Consolidated Statements of Income (Unaudited) Parenthetical - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Class B Unit Compensation	$ 345	$ 1,150	$ 26,738	$ 1,335
Class B Unit
Class B Unit Compensation	$ 0	$ 1,150	$ 26,134	$ 1,335

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Members' deficit	Common stock Class A Common Stock	Common stock Class B Common Stock	Additional paid in capital	Accumulated deficit	Parent	Noncontrolling Interest
Beginning balance (in shares) at Dec. 31, 2017			0	0
Beginning balance at Dec. 31, 2017	$ (41,133)	$ (41,133)	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	4,389	4,389
Distributions	(1,278)	(1,278)
Ending balance at May. 01, 2018	(38,022)	(38,022)
Beginning balance (in shares) at Dec. 31, 2017			0	0
Beginning balance at Dec. 31, 2017	(41,133)	(41,133)	$ 0	$ 0	0	0	0	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	(8,991)
Ending balance (in shares) at Sep. 30, 2018			13,533	22,747
Ending balance at Sep. 30, 2018	(26,521)	0	$ 135	$ 227	89,259	(6,668)	82,953	(109,474)
Beginning balance at May. 01, 2018	(38,022)	(38,022)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	2,355					711	711	1,644
Distributions	(1,645)							(1,645)
Effects of the Reorganization Transactions (in shares)				22,747
Effects of the Reorganization Transactions	(113,734)	38,022		$ 227	(132,202)	(7,379)	(139,354)	(12,402)
Initial non-controlling interest allocation	0				97,071		97,071	(97,071)
Issuance of Class A common stock sold in initial public offering, net of offering costs (in shares)			13,533
Issuance of Class A common stock sold in initial public offering, net of offering costs	124,010		$ 135		123,875		124,010
Equity-based compensation subsequent to initial public offering	604				604		604
Deferred tax adjustments	(89)				(89)		(89)
Ending balance (in shares) at Sep. 30, 2018			13,533	22,747
Ending balance at Sep. 30, 2018	$ (26,521)	$ 0	$ 135	$ 227	$ 89,259	$ (6,668)	$ 82,953	$ (109,474)

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net (loss) income	$ (19,269)	$ 8,300
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,039	617
Loss on disposal of fixed assets	22	0
Bad debt expense	984	850
Equity-based compensation	26,616	0
Deferred income taxes	(53)	0
Changes in operating assets and liabilities:
Commissions and agency fees receivable	(1,200)	(550)
Receivable from franchisees	(934)	(921)
Prepaid expenses	(426)	(81)
Other assets	435	(250)
Accounts payable and accrued expenses	259	465
Deferred rent	298	3,405
Premiums payable	115	146
Unearned revenue	(512)	95
Net cash provided by operating activities	7,374	12,076
Cash flows from investing activities:
Changes in restricted cash	(115)	(146)
Proceeds from member note receivable	0	120
Proceeds from notes receivable	16	294
Purchase of software	(121)	(170)
Purchase of property and equipment	(1,078)	(5,278)
Net cash used for investing activities	(1,298)	(5,180)
Cash flows from financing activities:
Loan origination fees	364	(89)
Repayment of note payable	(50,125)	(250)
Proceeds from notes payable	50,000	10,000
Proceeds from the issuance of Class A common stock sold in initial public offering, net of underwriting discounts and offering costs	86,773	0
Member distributions	(79,969)	(16,415)
Net cash provided by (used for) financing activities	7,043	(6,754)
Net increase in cash and cash equivalents	13,119	142
Cash, beginning of period	4,948	3,778
Cash, end of period	18,067	3,920
Supplemental disclosures:
Management fee note repayment through issuance of Class A common stock	$ 37,238	$ 0

Organization

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

On May 1, 2018 Goosehead Insurance, Inc. ("GSHD") completed an initial public offering (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 and combined 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 combined and consolidated subsidiaries and affiliates, 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 99.6% owned by Goosehead Insurance Holdings, LLC (“GIH”), a wholly owned subsidiary of GF. The Company had seven and six corporate-owned locations in operation at September 30, 2018 and 2017, respectively.

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 GIH. Franchisees are provided access to insurance Carrier Appointments, product training, technology infrastructure, client service centers and back office services. During the three months ended September 30, 2018 and 2017, the Company sold 52 and 33 franchise locations, respectively and had 424 and 267 operating franchise locations as of September 30, 2018 and 2017, respectively. No franchises were purchased by the Company during the three and nine months ended September 30, 2018 or 2017.

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.

All intercompany accounts and transactions have been eliminated in consolidation of GF.

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

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 position at September 30, 2018, and the condensed consolidated results of operations, and cash flows for the three and nine months ended September 30, 2018 and 2017. The interim period condensed consolidated financial statements should be read in conjunction with the Consolidated and Combined Financial Statements that are included in the Final Prospectus.

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of 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. Capitalized IPO Related Costs In connection with the Offering, the Company incurred costs which were recorded in other assets on the condensed consolidated balance sheet. Upon completion of the Offering, these deferred costs were charged against the proceeds from the Offering with a corresponding reduction to additional paid-in capital. There were $0 and $170 thousand of IPO related costs included in other assets at September 30, 2018 and December 31, 2017, respectively. 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. Recently Issued Accounting Pronouncements Statement of Cash Flows (ASU 2016-18): This standard requires that the Statement of Cash Flows explain the changes during the period of cash and cash equivalents inclusive of amounts categorized as Restricted Cash. As such, upon adoption, the Company’s consolidated statement of cash flows will show the sources and uses of cash that explain the movement in the balance of cash and cash equivalents, inclusive of restricted cash, over the period presented. As an emerging growth company (“EGC”), the standard will become effective for the Company January 1, 2019. The Company does not expect that this standard will have a material impact on the Company's Statement of Cash Flows. Statement of Cash Flows (ASU 2016-15): This standard addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified and applies to all entities, including both business entities and not-for-profit entities that are required to present a statement of cash flows under Topic 230. The standard will become effective for the Company on January 1, 2019. The Company has evaluated the impact of ASU 2016-15 and has determined the impact to be immaterial. The Company does not, at this time, engage in the activities being addressed by the standard. Revenue from Contracts with Customers (ASU 2014-09): This standard supersedes the existing revenue recognition guidance and provides a new framework for recognizing revenue. The core principle of the standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The new standard also requires significantly more comprehensive disclosures than the existing standard. Guidance subsequent to ASU 2014-09 has been issued to clarify various provisions in the standard, including principal versus agent considerations, identifying performance obligations, licensing transactions, as well as various technical corrections and improvements. This standard may be adopted using either a retrospective or modified retrospective method. According to the superseding standard ASU 2015-14 that deferred the effective dates of the preceding, and because the Company is filing as an emerging growth company, the standard will become effective for the Company January 1, 2019, but the Company is not required to present the impacts of the standard until it files its annual report on Form 10-K for the fiscal year ended December 31, 2019. The Company is continuing to evaluate the impact this standard is expected to have on the consolidated financial statements and expects to adopt the modified retrospective method. The primary anticipated impacts of the new standard to the Company's revenues and expenses are as follows: Under the new guidance, the Company expects commission revenues will be recognized at the effective date of the policy, which will accelerate some revenues. Currently, commissions from insurance carriers, net of estimated cancellations, are recognized as revenue when the data necessary to reasonably determine such amounts is made available to the Company. For contingent commissions, the Company anticipates revenues will be estimated and recorded throughout the year as the underlying business is placed with the insurance carriers as opposed to the Company's historical recognition when the Company received cash, the related policy detail, or other carrier specific information from the insurance carrier, typically in the first quarter of the following year. The effect of this change will result in revenue being recognized more evenly throughout the year. Franchise revenues, including franchise fees are also likely to change under the new guidance. Currently, initial franchise fees are recognized as revenue in the month the agency owner or initial agency representative attends training. Under the new guidance, the Company anticipates these revenues will likely be recognized over a longer period of time. The Company also expects to recognize an asset for the costs to obtain and/or fulfill a contract and to amortize on a systematic basis that is consistent with the transfer of the services to which the asset relates. The Company intends to continue to evaluate the impact of ASU 2014-09 and intends to further clarify the expected impact of the adoption of the standard in its annual report on Form 10-K for the fiscal year ended December 31, 2018. Leases (ASU 2016-02): This standard establishes a new lease accounting model, which introduces the recognition of lease assets and liabilities for those leases classified as operating leases under previous GAAP. It should be applied using a modified retrospective approach, with the option to elect various practical expedients. Early adoption is permitted. The standard will become effective for the Company January 1, 2020. The Company is currently evaluating the impact this standard will have on the Company's consolidated financial statements.

Franchise Fees Receivable

9 Months Ended

Sep. 30, 2018

Receivables [Abstract]

Franchise Fees Receivable

The balance of Franchise fees receivable included in Receivable from franchisees consisted of the following at September 30, 2018 and December 31, 2017 (in thousands):



	September 30			December 31
	2018			2017
Franchise fees receivable	$	3,711		$	2,501
Less: Unamortized discount	(1,300		)	(823		)
Less: Allowance for uncollectible franchise fees	(482		)	(336		)
Total franchise fees receivable	$	1,929		$	1,342

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



Balance at December 31, 2016	$	193
Charges to bad debts	382
Write offs	(259		)
Balance at September 30, 2017	$	316

Balance at December 31, 2017	$	336
Charges to bad debts	329
Write offs	(183		)
Balance at September 30, 2018	$	482

Allowance for Uncollectible Agency Fees

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




Balance at December 31, 2016	$	167
Charges to bad debts	468
Write offs	(457		)
Balance at September 30, 2017	$	178

Balance at December 31, 2017	$	183
Charges to bad debts	655
Write offs	(598		)
Balance at September 30, 2018	$	240

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Allowance for Uncollectible Agency Fees

9 Months Ended

Sep. 30, 2018

Receivables [Abstract]

Allowance for Uncollectible Agency Fees

Franchise Fees Receivable

The balance of Franchise fees receivable included in Receivable from franchisees consisted of the following at September 30, 2018 and December 31, 2017 (in thousands):



	September 30			December 31
	2018			2017
Franchise fees receivable	$	3,711		$	2,501
Less: Unamortized discount	(1,300		)	(823		)
Less: Allowance for uncollectible franchise fees	(482		)	(336		)
Total franchise fees receivable	$	1,929		$	1,342

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



Balance at December 31, 2016	$	193
Charges to bad debts	382
Write offs	(259		)
Balance at September 30, 2017	$	316

Balance at December 31, 2017	$	336
Charges to bad debts	329
Write offs	(183		)
Balance at September 30, 2018	$	482

Allowance for Uncollectible Agency Fees

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




Balance at December 31, 2016	$	167
Charges to bad debts	468
Write offs	(457		)
Balance at September 30, 2017	$	178

Balance at December 31, 2017	$	183
Charges to bad debts	655
Write offs	(598		)
Balance at September 30, 2018	$	240

- Definition

+ References + Details

Note Payable

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Note Payable

On August 3, 2018, the Company refinanced its $3.0 million revolving credit facility and $50.0 million term note payable to a $13.0 million revolving credit facility and $40.0 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 $50.0 million.

The $13.0 million revolving credit facility accrues interest on amounts drawn at an initial interest rate of LIBOR plus 2.50%, then at an interest rate determined by the Company's leverage ratio for the preceding period. At September 30, 2018, the Company had $10.0 million drawn against the revolver. At September 30, 2018, the Company had a letter of credit of $500,000 applied against the maximum borrowing availability, thus amounts available to draw totaled $2,500,000. The revolving credit facility is collateralized by substantially all the Company’s assets, which includes rights to future commissions. Interest payment on the revolving credit facility totaled $72 thousand for the three and nine months ended September 30, 2018.

The $40.0 million term note accrues interest at an initial interest rate of LIBOR plus 2.5%, then at an interest rate determined by the Company's leverage ratio for the preceding period. The aggregate principal amount of the term note as of September 30, 2018 is $39.5 million, payable in quarterly installments of (x) $500,000 from the fiscal quarter ending December 31, 2018 through the fiscal quarter ending June 30, 2019, (y) $750,000 from the fiscal quarter ending September 30, 2019 through the fiscal quarter ending June 30, 2020, and (z) $1,250,000 from the fiscal quarter ending September 30, 2020 through the fiscal quarter ending June 30, 2021, with a balloon payment of the entire unpaid principal amount of the term note on August 3, 2021.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 + 175.0 bps
> 1.50x	LIBOR + 200.0 bps
> 2.50x	LIBOR + 225.0 bps
> 3.50x	LIBOR + 250.0 bps

Maturities of the term note payable for the next four calendar years as of September 30, 2018 are as follows (in thousands):



	Amount
2018	$	500
2019	2,500
2020	4,000
2021	32,500
	$	39,500

The $10.0 million drawn against the revolver is coterminous with the term loan and is due in full on August 3, 2021.

Loan origination fees of $606 thousand at September 30, 2018 are reflected as a reduction to the note balance and will be amortized through interest expense over three years (the term of the note payable). As part of the refinancing, $871 thousand of origination fees from previous debt were immediately recognized as 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 September 30, 2018, the Company was in compliance with these covenants.

Because of both instruments’ origination date and variable interest rate, the note payable balance at September 30, 2018 and December 31, 2017, 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.

Commitments and Contingencies

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

The Company leases its facilities under non-cancelable operating leases, expiring in various years through 2029. In addition to monthly lease payments, the lease agreements require the Company to reimburse the lessors for its portion of operating costs each year.

The following is a schedule of future minimum lease payments as of September 30, 2018 (in thousands):



	Amount
2018	$	331
2019	1,888
2020	2,588
2021	2,683
2022	2,551
2023-2029	14,043
	$	24,084

Income Taxes

9 Months Ended

Sep. 30, 2018

Income Tax Disclosure [Abstract]

Income Taxes

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

Income tax expense

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):



	Three months ended						Nine months ended
	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
Income (loss) before taxes	$	1,000		$	209		$	(18,951	)	$	8,300
Less: (income) prior to the Reorganization Transactions	—			(209		)	(4,389		)	(8,300		)
Income (loss) before taxes	$	1,000		$	—		$	(23,340	)	$	—

Income taxes at U.S. federal statutory rate	$	215		$	—		$	(4,902	)	$	—
Tax on income not subject to entity level federal income tax	(147		)	—			(382		)	—
Permanent Differences:
Non-deductible stock compensation costs	—			—			2,038			—
Non-controlling interest	32			—			3,479
Other permanent differences	11			—			25			—
State income tax, net of federal benefit	51			—			58			—
Other Reconciling items:
Other	2			—			2			—
Income tax expense	$	164		$	—		$	318		$	—

Deferred tax assets and liabilities

The components of deferred tax assets and liabilities are as follows:



	September 30, 2018			December 31, 2017
Investment in partnership	(36		)	—
Net deferred tax asset (liability)	$	(36	)	$	—

Uncertain tax positions

GSHD has determined there are no material uncertain tax positions as of September 30, 2018.

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 us in the absence of those transactions. The anticipated tax basis adjustments are expected to reduce the amount of tax that GSHD would otherwise be required to pay in the future.

GSHD entered into a tax receivable agreement with the Pre-IPO LLC Members on May 1, 2018 that provides for the payment by GSHD to the Pre-IPO LLC Members of 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax or franchise tax that GSHD actually realizes as a result of (i) any increase in tax basis in GSHD's assets and (ii) tax benefits related to imputed interest deemed arising as a result of payments made under the tax receivable agreement.

During the three and nine month period ended September 30, 2018, no distributions or redemptions were made that triggered an increase in GSHD's tax basis.

Other income (expense)	9 Months Ended
Other income (expense)	Sep. 30, 2018
Other Income and Expenses [Abstract]
Other income (expense)	Other income (expense) On June 1, 2017, GF executed a buyout agreement with a franchisee per the terms of a franchise agreement executed in 2014. As part of the buyout, the departing franchisee purchased Goosehead’s economic interests in future royalty fees. Goosehead recognized a $3.5 million gain on the transaction in June 2017 which is included in Other income on the consolidated statement of income.

Stockholders' Equity

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Stockholders' Equity

Class A Common Stock

GSHD has a total of 13,533 thousand shares of its Class A common stock outstanding at September 30, 2018. 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 22,747 thousand shares of its Class B common stock outstanding at September 30, 2018. 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.

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.

On a quarterly basis, GF makes distributions to the LLC Unit holders on a pro rata basis. For the three and nine months ended September 30, 2018, GF made distributions of $1.4 million and $3.8 million, respectively, of which $0.9 million and $2.9 million, where made to Pre-IPO LLC Members, respectively. The remaining $0.5 million and $0.9 million, respectively, were made to GSHD and were eliminated in consolidation.

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

The following table summarizes the ownership interest in GF as of September 30, 2018 (in thousands).



	September 30, 2018
	LLC Units	Ownership %
Number of LLC Units held by GSHD	13,533	37.3%
Number of LLC Units held by non-controlling interest holders	22,747	62.7%
Number of LLC Units outstanding	36,280	100.0%

The weighted average ownership percentages for the applicable reporting periods are used to attribute net income to GSHD and the non-controlling interest holders. The non-controlling interest holders' weighted average ownership percentage for the three and nine months ended September 30, 2018 was 62.7%. All net income prior to the Offering is attributed to non-controlling interest holders.

During the quarter, the Company corrected a misclassification of $745 thousand of distributions from accumulated deficit to non-controlling interest to properly reflect the distributions made to Pre-IPO LLC Members during the second quarter of 2018. These amounts were previously shown as a change to accumulated deficit on the Company's quarterly report on Form 10-Q for the period ended June 30, 2018.

Earnings Per Share

The following table sets forth the calculation of basic earnings per share ("EPS") based on net income attributable to GSHD for the three and nine months ended September 30, 2018, divided by the basic weighted average number of Class A common stock as of September 30, 2018 (in thousands, except per share amounts). Diluted earnings per share of Class A common stock is computed by dividing net income attributable to GSHD by the weighted average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities. The Company has not included the effects of conversion of Class B shares to Class A shares in the diluted EPS calculation using the "if-converted" method, because doing so has no impact on diluted EPS.



	Three Months Ended September 30, 2018		Nine Months Ended September 30, 2018
Numerator:
Income (loss) before taxes	$	1,000	$	(18,951	)
Less: income (loss) before taxes attributable to non-controlling interests	627		(10,246		)
Income (loss) before taxes attributable to GSHD	373		(8,705		)
Less: income tax expense attributable to GSHD	132		286
Net income (loss) attributable to GSHD⁽¹⁾	$	241	$	(8,991	)
Denominator:
Weighted average shares of Class A common stock outstanding - basic	13,533		13,533
Effect of dilutive securities:
Stock options⁽²⁾	1,081		—
Weighted average shares of Class A common stock outstanding - diluted	$	14,614	$	13,533

Earnings per share of Class A common stock - basic	$	0.02	$	(0.66	)
Earnings per share of Class A common stock - diluted	$	0.02	$	(0.66	)

(1) Net income attributable to GSHD excludes all net income prior to the Offering.

(2) 1,650 thousand stock options were excluded from the computation of diluted earnings per share of Class A common stock for the nine months ended September 30, 2018 because the effect would have been anti-dilutive, as GSHD recorded a net loss for the period.

The following table sets forth the calculation of pro forma basic EPS based on pro forma net income attributable to GSHD for the three and nine months ended September 30, 2017, divided by the pro forma basic weighted average number of Class A common stock as of September 30, 2017 (in thousands, except per share amounts). Pro forma diluted earnings per share of Class A common stock is computed by dividing pro forma net income attributable to GSHD by the pro forma weighted average number of shares of Class A common stock outstanding adjusted to give effect to pro forma potentially dilutive securities.



	Three Months Ended September 30, 2017		Nine Months Ended September 30, 2017
Numerator:
Net income	$	209	$	8,300
Less: pro forma net income attributable to non-controlling interests	131		5,204
Pro forma income before taxes attributable to GSHD	78		3,096
Less: pro forma income tax expense	20		774
Pro forma net income attributable to GSHD	$	58	$	2,322
Denominator:
Pro forma weighted average shares of Class A common stock outstanding - basic	13,533		13,533
Pro forma effect of dilutive securities:
Pro forma stock options	1,081		989
Pro forma weighted average shares of Class A common stock outstanding - diluted	14,614		14,522

Pro forma earnings per share of Class A common stock - basic	$	—	$	0.17
Pro forma earnings per share of Class A common stock - diluted	$	—	$	0.16

Equity-Based Compensation

9 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Equity-Based Compensation

A summary of equity-based compensation expense during the three and nine months ended September 30, 2018 and September 30, 2017 is as follows (in thousands):



	Three Months Ended September 30				Nine Months Ended September 30
	2018		2017		2018		2017
Class B unit compensation	$	—	$	1,150	$	26,134	$	1,335
Stock options	345		—		604		—
Equity-based compensation expense	$	345	$	1,150	$	26,738	$	1,335

Class B unit compensation:

Prior to the Offering, certain Pre-IPO LLC Members held non-vesting and non-voting Class B units. In accordance with accounting guidance, any dividends paid to Class B unit holders are recognized as compensation expense when declared, as the Class B non-vesting units are considered to be a non-substantive class of equity. Dividends paid to Class B unit holders prior to the Offering, included in employee compensation and benefits, totaled $0 and $122 thousand for the three and nine months ended September 30, 2018, respectively, and $1,150 thousand and $1,335 thousand for the three and nine months ended September 30, 2017, respectively.

In connection with the Reorganization Transactions, immediately prior to the Offering, historical Class B interests in TWIHG and GM vested by converting to the Texas Wasatch Note and Goosehead Management Note, respectively, paid with a combination of proceeds from the Offering and shares of Class A common stock. This conversion changed the nature of the Class B interests from a profit sharing arrangement to a substantive class of equity and were expensed under the guidance of ASC 718. At the Offering price of $10.00 per share, GSHD incurred total compensation expense of $6.2 million in connection with the conversion, recognized in the second quarter of 2018. Class B interests in GF were also deemed vested by converting, along with all pre-offering Class A equity, on a one-to-one basis with the number of LLC units previously owned, to both LLC Units and shares of Class B common stock. This conversion changed the nature of the Class B interests from a profit sharing arrangement to a substantive class of equity and were expensed under the guidance of ASC 718. At the initial public offering price of $10.00 per share, the Company issued a total of 1,978 thousand LLC Units and shares of Class B common stock and incurred total compensation expense of $19.8 million as part of the conversion, recognized in the second quarter of 2018.

Stock options:

In connection with the IPO, GSHD granted 1,650 thousand options to directors and certain employees. The stock options were granted with a strike price of $10.00 per share (the initial public offering price). The 365 thousand director stock options vest quarterly over a three year period, and the 1,285 thousand employee stock options vest annually from 2020 to 2022. The grant date fair value was determined using the Black-Scholes valuation model using the following assumptions:



Expected volatility	25	%
Expected dividend yield	—	%
Expected term (in years)	5.95
Risk-free interest rate	2.59	%

GSHD will recognize the total compensation expense of $5.2 million related to such option grants on a straight-line basis over the requisite service period of the award recipient (three years for directors and four years for certain employees).

In April 2018, GSHD adopted the Omnibus Incentive Plan, which reserved 1,500 thousand shares of Class A Common Stock for delivery to directors, officers, and managing directors in connection with future awards granted under the plan. GSHD also adopted an Employee Stock Purchase Plan, which reserved 20 thousand shares of Class A Common Stock for delivery to employees. There were no shares outstanding on either of these plans at September 30, 2018.

Segment Information

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Segment Information

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



	Corporate Channel			Franchise Channel			Other			Total
Three months ended September 30, 2018:
Revenues:
Commissions and fees	$	9,372		$	388		$	—		$	9,760
Franchise revenues	—			6,180			—			6,180
Interest income	—			114			—			114
Total	9,372			6,682			—			16,054
Operating expenses:
Employee compensation and benefits, excluding equity-based compensation	5,218			3,393			—			8,611
General and administrative expenses	1,938			1,283			473			3,694
Bad debts	232			167			—			399
Total	7,388			4,843			473			12,704
Adjusted EBITDA	1,984			1,839			(473		)	3,350
Other income (expense)	(22		)	—			—			(22		)
Equity-based compensation	—			—			(345		)	(345		)
Interest expense	—			—			(1,631		)	(1,631		)
Depreciation and amortization	(224		)	(128		)	—			(352		)
Taxes	—			—			(164		)	(164		)
Net income (loss)	$	1,738		$	1,711		$	(2,613	)	$	836
At September 30, 2018:
Total Assets	$	14,222		$	9,073		$	7,904		$	31,199



	Corporate Channel			Franchise Channel			Other			Total
Three months ended September 30, 2017:
Revenues:
Commissions and fees	$	6,631		$	61		$	—		$	6,692
Franchise revenues	—			4,048			—			4,048
Interest income	—			67			—			67
Total	6,631			4,176			—			10,807
Operating expenses:
Employee compensation and benefits, excluding equity-based compensation	3,719			2,317			—			6,036
General and administrative expenses	1,305			708			129			2,142
Bad debts	177			98			—			275
Total	5,201			3,123			129			8,453
Adjusted EBITDA	1,430			1,053			(129		)	2,354
Equity-based compensation	—			—			(1,150		)	(1,150		)
Interest expense	—			—			(674		)	(674		)
Depreciation and amortization	(229		)	(92		)	—			(321		)
Net income (loss)	$	1,201		$	961		$	(1,953	)	$	209
At September 30, 2017:
Total Assets	$	7,187		$	4,351		$	2,800		$	14,338



	Corporate Channel			Franchise Channel			Other			Total
Nine months ended September 30, 2018:
Revenues:
Commissions and fees	$	25,753		$	2,319		$	—		$	28,072
Franchise revenues	—			17,060			—			17,060
Interest income	—			299			—			299
Total	25,753			19,678			—			45,431
Operating expenses:
Employee compensation and benefits, excluding equity-based compensation	13,872			9,036			—			22,908
General and administrative expenses	5,265			3,123			705			9,093
Bad debts	655			329			—			984
Total	19,792			12,488			705			32,985
Adjusted EBITDA	5,961			7,190			(705		)	12,446
Other income (expense)	(22		)	—			—			(22		)
Equity-based compensation	—			—			(26,738		)	(26,738		)
Interest expense	—			—			(3,598		)	(3,598		)
Depreciation and amortization	(699		)	(340		)	—			(1,039		)
Taxes	—			—			(318		)	(318		)
Net income (loss)	$	5,240		$	6,850		$	(31,359	)	$	(19,269	)
At September 30, 2018:
Total Assets	$	14,222		$	9,073		$	7,904		$	31,199



	Corporate Channel			Franchise Channel			Other			Total
Nine months ended September 30, 2017:
Revenues:
Commissions and fees	$	18,698		$	1,210		$	—		$	19,908
Franchise revenues	—			11,499			—			11,499
Interest income	—			169			—			169
Total	18,698			12,878			—			31,576
Operating expenses:
Employee compensation and benefits, excluding equity-based compensation	9,836			6,458			—			16,294
General and administrative expenses	3,599			2,234			154			5,987
Bad debts	468			382			—			850
Total	13,903			9,074			154			23,131
Adjusted EBITDA	4,795			3,804			(154		)	8,445
Other income (expense)	—			3,541			—			3,541
Equity-based compensation	—			—			(1,335		)	(1,335		)
Interest expense	—			—			(1,734		)	(1,734		)
Depreciation and amortization	(474		)	(143		)	—			(617		)
Net income (loss)	$	4,321		$	7,202		$	(3,223	)	$	8,300
At September 30, 2017:
Total Assets	$	7,187		$	4,351		$	2,800		$	14,338

Litigation	9 Months Ended
Litigation	Sep. 30, 2018
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 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.

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events The Company has evaluated subsequent events through November 6, 2018, the date financial statements were available for issuance.

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Basis of Combination

All intercompany accounts and transactions have been eliminated in consolidation of GF.

Basis of Presentation

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.

Capitalized IPO Related Costs

In connection with the Offering, the Company incurred costs which were recorded in other assets on the condensed consolidated balance sheet. Upon completion of the Offering, these deferred costs were charged against the proceeds from the Offering with a corresponding reduction to additional paid-in capital.

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.

Recently Issued Accounting Pronouncements

Statement of Cash Flows (ASU 2016-18): This standard requires that the Statement of Cash Flows explain the changes during the period of cash and cash equivalents inclusive of amounts categorized as Restricted Cash. As such, upon adoption, the Company’s consolidated statement of cash flows will show the sources and uses of cash that explain the movement in the balance of cash and cash equivalents, inclusive of restricted cash, over the period presented. As an emerging growth company (“EGC”), the standard will become effective for the Company January 1, 2019. The Company does not expect that this standard will have a material impact on the Company's Statement of Cash Flows.

Statement of Cash Flows (ASU 2016-15): This standard addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified and applies to all entities, including both business entities and not-for-profit entities that are required to present a statement of cash flows under Topic 230. The standard will become effective for the Company on January 1, 2019. The Company has evaluated the impact of ASU 2016-15 and has determined the impact to be immaterial. The Company does not, at this time, engage in the activities being addressed by the standard.

Revenue from Contracts with Customers (ASU 2014-09): This standard supersedes the existing revenue recognition guidance and provides a new framework for recognizing revenue. The core principle of the standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The new standard also requires significantly more comprehensive disclosures than the existing standard. Guidance subsequent to ASU 2014-09 has been issued to clarify various provisions in the standard, including principal versus agent considerations, identifying performance obligations, licensing transactions, as well as various technical corrections and improvements. This standard may be adopted using either a retrospective or modified retrospective method. According to the superseding standard ASU 2015-14 that deferred the effective dates of the preceding, and because the Company is filing as an emerging growth company, the standard will become effective for the Company January 1, 2019, but the Company is not required to present the impacts of the standard until it files its annual report on Form 10-K for the fiscal year ended December 31, 2019. The Company is continuing to evaluate the impact this standard is expected to have on the consolidated financial statements and expects to adopt the modified retrospective method. The primary anticipated impacts of the new standard to the Company's revenues and expenses are as follows:

Under the new guidance, the Company expects commission revenues will be recognized at the effective date of the policy, which will accelerate some revenues. Currently, commissions from insurance carriers, net of estimated cancellations, are recognized as revenue when the data necessary to reasonably determine such amounts is made available to the Company. For contingent commissions, the Company anticipates revenues will be estimated and recorded throughout the year as the underlying business is placed with the insurance carriers as opposed to the Company's historical recognition when the Company received cash, the related policy detail, or other carrier specific information from the insurance carrier, typically in the first quarter of the following year. The effect of this change will result in revenue being recognized more evenly throughout the year.

Franchise revenues, including franchise fees are also likely to change under the new guidance. Currently, initial franchise fees are recognized as revenue in the month the agency owner or initial agency representative attends training. Under the new guidance, the Company anticipates these revenues will likely be recognized over a longer period of time.

The Company also expects to recognize an asset for the costs to obtain and/or fulfill a contract and to amortize on a systematic basis that is consistent with the transfer of the services to which the asset relates.

The Company intends to continue to evaluate the impact of ASU 2014-09 and intends to further clarify the expected impact of the adoption of the standard in its annual report on Form 10-K for the fiscal year ended December 31, 2018.

Leases (ASU 2016-02): This standard establishes a new lease accounting model, which introduces the recognition of lease assets and liabilities for those leases classified as operating leases under previous GAAP. It should be applied using a modified retrospective approach, with the option to elect various practical expedients. Early adoption is permitted. The standard will become effective for the Company January 1, 2020. The Company is currently evaluating the impact this standard will have on the Company's consolidated financial statements.

Framework for Measuring Fair Value


•	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.

- Definition

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

+ References + Details

Franchise Fees Receivable (Tables)

9 Months Ended

Sep. 30, 2018

Receivables [Abstract]

Schedule of Franchise Fees Receivable

The balance of Franchise fees receivable included in Receivable from franchisees consisted of the following at September 30, 2018 and December 31, 2017 (in thousands):



	September 30			December 31
	2018			2017
Franchise fees receivable	$	3,711		$	2,501
Less: Unamortized discount	(1,300		)	(823		)
Less: Allowance for uncollectible franchise fees	(482		)	(336		)
Total franchise fees receivable	$	1,929		$	1,342

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




Balance at December 31, 2016	$	167
Charges to bad debts	468
Write offs	(457		)
Balance at September 30, 2017	$	178

Balance at December 31, 2017	$	183
Charges to bad debts	655
Write offs	(598		)
Balance at September 30, 2018	$	240

Schedule of Allowance For Uncollectible Franchise Fees

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



Balance at December 31, 2016	$	193
Charges to bad debts	382
Write offs	(259		)
Balance at September 30, 2017	$	316

Balance at December 31, 2017	$	336
Charges to bad debts	329
Write offs	(183		)
Balance at September 30, 2018	$	482

Allowance for Uncollectible Agency Fees (Tables)

9 Months Ended

Sep. 30, 2018

Receivables [Abstract]

Schedule of Allowance for Uncollectible Agency Fees

The balance of Franchise fees receivable included in Receivable from franchisees consisted of the following at September 30, 2018 and December 31, 2017 (in thousands):



	September 30			December 31
	2018			2017
Franchise fees receivable	$	3,711		$	2,501
Less: Unamortized discount	(1,300		)	(823		)
Less: Allowance for uncollectible franchise fees	(482		)	(336		)
Total franchise fees receivable	$	1,929		$	1,342

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




Balance at December 31, 2016	$	167
Charges to bad debts	468
Write offs	(457		)
Balance at September 30, 2017	$	178

Balance at December 31, 2017	$	183
Charges to bad debts	655
Write offs	(598		)
Balance at September 30, 2018	$	240

Note Payable (Tables)

9 Months Ended

Sep. 30, 2018

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 + 175.0 bps
> 1.50x	LIBOR + 200.0 bps
> 2.50x	LIBOR + 225.0 bps
> 3.50x	LIBOR + 250.0 bps

Schedule of Maturities of Note Payable

Maturities of the term note payable for the next four calendar years as of September 30, 2018 are as follows (in thousands):



	Amount
2018	$	500
2019	2,500
2020	4,000
2021	32,500
	$	39,500

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Lease Payments

The following is a schedule of future minimum lease payments as of September 30, 2018 (in thousands):



	Amount
2018	$	331
2019	1,888
2020	2,588
2021	2,683
2022	2,551
2023-2029	14,043
	$	24,084

Income Taxes (Tables)

9 Months Ended

Sep. 30, 2018

Income Tax Disclosure [Abstract]

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):



	Three months ended						Nine months ended
	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
Income (loss) before taxes	$	1,000		$	209		$	(18,951	)	$	8,300
Less: (income) prior to the Reorganization Transactions	—			(209		)	(4,389		)	(8,300		)
Income (loss) before taxes	$	1,000		$	—		$	(23,340	)	$	—

Income taxes at U.S. federal statutory rate	$	215		$	—		$	(4,902	)	$	—
Tax on income not subject to entity level federal income tax	(147		)	—			(382		)	—
Permanent Differences:
Non-deductible stock compensation costs	—			—			2,038			—
Non-controlling interest	32			—			3,479
Other permanent differences	11			—			25			—
State income tax, net of federal benefit	51			—			58			—
Other Reconciling items:
Other	2			—			2			—
Income tax expense	$	164		$	—		$	318		$	—

Schedule of Income before Income Taxes

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):



	Three months ended						Nine months ended
	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
Income (loss) before taxes	$	1,000		$	209		$	(18,951	)	$	8,300
Less: (income) prior to the Reorganization Transactions	—			(209		)	(4,389		)	(8,300		)
Income (loss) before taxes	$	1,000		$	—		$	(23,340	)	$	—

Income taxes at U.S. federal statutory rate	$	215		$	—		$	(4,902	)	$	—
Tax on income not subject to entity level federal income tax	(147		)	—			(382		)	—
Permanent Differences:
Non-deductible stock compensation costs	—			—			2,038			—
Non-controlling interest	32			—			3,479
Other permanent differences	11			—			25			—
State income tax, net of federal benefit	51			—			58			—
Other Reconciling items:
Other	2			—			2			—
Income tax expense	$	164		$	—		$	318		$	—

Schedule of Components 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):



	Three months ended						Nine months ended
	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
Income (loss) before taxes	$	1,000		$	209		$	(18,951	)	$	8,300
Less: (income) prior to the Reorganization Transactions	—			(209		)	(4,389		)	(8,300		)
Income (loss) before taxes	$	1,000		$	—		$	(23,340	)	$	—

Income taxes at U.S. federal statutory rate	$	215		$	—		$	(4,902	)	$	—
Tax on income not subject to entity level federal income tax	(147		)	—			(382		)	—
Permanent Differences:
Non-deductible stock compensation costs	—			—			2,038			—
Non-controlling interest	32			—			3,479
Other permanent differences	11			—			25			—
State income tax, net of federal benefit	51			—			58			—
Other Reconciling items:
Other	2			—			2			—
Income tax expense	$	164		$	—		$	318		$	—

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities are as follows:



	September 30, 2018			December 31, 2017
Investment in partnership	(36		)	—
Net deferred tax asset (liability)	$	(36	)	$	—

Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Summary of Pro Forma Ownership Interest

The following table summarizes the ownership interest in GF as of September 30, 2018 (in thousands).



	September 30, 2018
	LLC Units	Ownership %
Number of LLC Units held by GSHD	13,533	37.3%
Number of LLC Units held by non-controlling interest holders	22,747	62.7%
Number of LLC Units outstanding	36,280	100.0%

Schedule of Calculation of EPS and Pro Forma EPS



	Three Months Ended September 30, 2018		Nine Months Ended September 30, 2018
Numerator:
Income (loss) before taxes	$	1,000	$	(18,951	)
Less: income (loss) before taxes attributable to non-controlling interests	627		(10,246		)
Income (loss) before taxes attributable to GSHD	373		(8,705		)
Less: income tax expense attributable to GSHD	132		286
Net income (loss) attributable to GSHD⁽¹⁾	$	241	$	(8,991	)
Denominator:
Weighted average shares of Class A common stock outstanding - basic	13,533		13,533
Effect of dilutive securities:
Stock options⁽²⁾	1,081		—
Weighted average shares of Class A common stock outstanding - diluted	$	14,614	$	13,533

Earnings per share of Class A common stock - basic	$	0.02	$	(0.66	)
Earnings per share of Class A common stock - diluted	$	0.02	$	(0.66	)

(1) Net income attributable to GSHD excludes all net income prior to the Offering.



	Three Months Ended September 30, 2017		Nine Months Ended September 30, 2017
Numerator:
Net income	$	209	$	8,300
Less: pro forma net income attributable to non-controlling interests	131		5,204
Pro forma income before taxes attributable to GSHD	78		3,096
Less: pro forma income tax expense	20		774
Pro forma net income attributable to GSHD	$	58	$	2,322
Denominator:
Pro forma weighted average shares of Class A common stock outstanding - basic	13,533		13,533
Pro forma effect of dilutive securities:
Pro forma stock options	1,081		989
Pro forma weighted average shares of Class A common stock outstanding - diluted	14,614		14,522

Pro forma earnings per share of Class A common stock - basic	$	—	$	0.17
Pro forma earnings per share of Class A common stock - diluted	$	—	$	0.16

Equity-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Equity-Based Compensation Expense

A summary of equity-based compensation expense during the three and nine months ended September 30, 2018 and September 30, 2017 is as follows (in thousands):



	Three Months Ended September 30				Nine Months Ended September 30
	2018		2017		2018		2017
Class B unit compensation	$	—	$	1,150	$	26,134	$	1,335
Stock options	345		—		604		—
Equity-based compensation expense	$	345	$	1,150	$	26,738	$	1,335

Schedule of Stock Options Valuation Assumptions

The grant date fair value was determined using the Black-Scholes valuation model using the following assumptions:



Expected volatility	25	%
Expected dividend yield	—	%
Expected term (in years)	5.95
Risk-free interest rate	2.59	%

Segment Information (Tables)

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Schedule of Segment Information



	Corporate Channel			Franchise Channel			Other			Total
Three months ended September 30, 2018:
Revenues:
Commissions and fees	$	9,372		$	388		$	—		$	9,760
Franchise revenues	—			6,180			—			6,180
Interest income	—			114			—			114
Total	9,372			6,682			—			16,054
Operating expenses:
Employee compensation and benefits, excluding equity-based compensation	5,218			3,393			—			8,611
General and administrative expenses	1,938			1,283			473			3,694
Bad debts	232			167			—			399
Total	7,388			4,843			473			12,704
Adjusted EBITDA	1,984			1,839			(473		)	3,350
Other income (expense)	(22		)	—			—			(22		)
Equity-based compensation	—			—			(345		)	(345		)
Interest expense	—			—			(1,631		)	(1,631		)
Depreciation and amortization	(224		)	(128		)	—			(352		)
Taxes	—			—			(164		)	(164		)
Net income (loss)	$	1,738		$	1,711		$	(2,613	)	$	836
At September 30, 2018:
Total Assets	$	14,222		$	9,073		$	7,904		$	31,199



	Corporate Channel			Franchise Channel			Other			Total
Three months ended September 30, 2017:
Revenues:
Commissions and fees	$	6,631		$	61		$	—		$	6,692
Franchise revenues	—			4,048			—			4,048
Interest income	—			67			—			67
Total	6,631			4,176			—			10,807
Operating expenses:
Employee compensation and benefits, excluding equity-based compensation	3,719			2,317			—			6,036
General and administrative expenses	1,305			708			129			2,142
Bad debts	177			98			—			275
Total	5,201			3,123			129			8,453
Adjusted EBITDA	1,430			1,053			(129		)	2,354
Equity-based compensation	—			—			(1,150		)	(1,150		)
Interest expense	—			—			(674		)	(674		)
Depreciation and amortization	(229		)	(92		)	—			(321		)
Net income (loss)	$	1,201		$	961		$	(1,953	)	$	209
At September 30, 2017:
Total Assets	$	7,187		$	4,351		$	2,800		$	14,338



	Corporate Channel			Franchise Channel			Other			Total
Nine months ended September 30, 2018:
Revenues:
Commissions and fees	$	25,753		$	2,319		$	—		$	28,072
Franchise revenues	—			17,060			—			17,060
Interest income	—			299			—			299
Total	25,753			19,678			—			45,431
Operating expenses:
Employee compensation and benefits, excluding equity-based compensation	13,872			9,036			—			22,908
General and administrative expenses	5,265			3,123			705			9,093
Bad debts	655			329			—			984
Total	19,792			12,488			705			32,985
Adjusted EBITDA	5,961			7,190			(705		)	12,446
Other income (expense)	(22		)	—			—			(22		)
Equity-based compensation	—			—			(26,738		)	(26,738		)
Interest expense	—			—			(3,598		)	(3,598		)
Depreciation and amortization	(699		)	(340		)	—			(1,039		)
Taxes	—			—			(318		)	(318		)
Net income (loss)	$	5,240		$	6,850		$	(31,359	)	$	(19,269	)
At September 30, 2018:
Total Assets	$	14,222		$	9,073		$	7,904		$	31,199



	Corporate Channel			Franchise Channel			Other			Total
Nine months ended September 30, 2017:
Revenues:
Commissions and fees	$	18,698		$	1,210		$	—		$	19,908
Franchise revenues	—			11,499			—			11,499
Interest income	—			169			—			169
Total	18,698			12,878			—			31,576
Operating expenses:
Employee compensation and benefits, excluding equity-based compensation	9,836			6,458			—			16,294
General and administrative expenses	3,599			2,234			154			5,987
Bad debts	468			382			—			850
Total	13,903			9,074			154			23,131
Adjusted EBITDA	4,795			3,804			(154		)	8,445
Other income (expense)	—			3,541			—			3,541
Equity-based compensation	—			—			(1,335		)	(1,335		)
Interest expense	—			—			(1,734		)	(1,734		)
Depreciation and amortization	(474		)	(143		)	—			(617		)
Net income (loss)	$	4,321		$	7,202		$	(3,223	)	$	8,300
At September 30, 2017:
Total Assets	$	7,187		$	4,351		$	2,800		$	14,338

Organization - Narrative (Details) $ / shares in Units, shares in Thousands, $ in Millions			3 Months Ended		9 Months Ended
	May 02, 2018	May 01, 2018 USD ($) vote class $ / shares shares	Sep. 30, 2018 vote location franchise	Sep. 30, 2017 location franchise	Sep. 30, 2018 vote location franchise	Sep. 30, 2017 location franchise
Subsidiary, Sale of Stock [Line Items]
Corporate-owned locations \| location			7	6	7	6
Franchise locations sold \| franchise			52	33
Operating franchise locations \| franchise			424	267	424	267
Franchises purchased \| franchise			0	0	0	0
Number of classes \| class		2
Vote per share \| vote		1
Conversion ratio		1
Class A Common Stock
Subsidiary, Sale of Stock [Line Items]
Vote per share \| vote			1		1
Class B Common Stock
Subsidiary, Sale of Stock [Line Items]
Vote per share \| vote			1		1
Initial Public Offering \| Class A Common Stock
Subsidiary, Sale of Stock [Line Items]
Shares issued (in shares)		9,810
Share price (in dollars per share) \| $ / shares		$ 10
Over-Allotment Option \| Class A Common Stock
Subsidiary, Sale of Stock [Line Items]
Shares issued (in shares)		1,280
Goosehead Insurance Holding, LLC \| Texas Wasatch Insurance Services, L.P.
Subsidiary, Sale of Stock [Line Items]
Ownership interest					99.60%
Goosehead Insurance Holding, LLC \| Goosehead Insurance Agency, LLC
Subsidiary, Sale of Stock [Line Items]
Ownership interest					100.00%
Pre-IPO LLC Members \| Goosehead Financial, LLC
Subsidiary, Sale of Stock [Line Items]
Ownership interest	62.70%
Goosehead Insurance, Inc. \| Goosehead Financial, LLC
Subsidiary, Sale of Stock [Line Items]
Ownership interest	37.30%
Pre-IPO LLC Members \| Class B Common Stock
Subsidiary, Sale of Stock [Line Items]
Shares issued (in shares)		22,747
Goosehead Management, LLC And Texas Wasatch Insurance Holdings Group LLC \| Class A Common Stock
Subsidiary, Sale of Stock [Line Items]
Shares issued (in shares)		3,724
Goosehead Management Note and Texas Wasatch Note
Subsidiary, Sale of Stock [Line Items]
Principal amount of debt \| $		$ 114

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
IPO related costs included in other assets	$ 0	$ 170

Franchise Fees Receivable - Balance of Franchise Fees Receivable (Details) - Franchise Fees Receivable - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Franchise fees receivable	$ 3,711	$ 2,501
Less: Unamortized discount	(1,300)	(823)
Less: Allowance for uncollectible franchise fees	(482)	(336)	$ (316)	$ (193)
Total franchise fees receivable	$ 1,929	$ 1,342

Franchise Fees Receivable - Roll-Forward of Allowance (Details) - Franchise Fees Receivable - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	$ 336	$ 193
Charges to bad debts	329	382
Write offs	(183)	(259)
Ending balance	$ 482	$ 316

Allowance for Uncollectible Agency Fees - Roll-Forward of Allowance (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Allowance for Doubtful Accounts Receivable [Roll Forward]
Bad debt expense	$ 399	$ 275	$ 984	$ 850
Agency Fees
Allowance for Doubtful Accounts Receivable [Roll Forward]
Beginning balance			183	167
Bad debt expense			655	468
Write offs			(598)	(457)
Ending balance	$ 240	$ 178	$ 240	$ 178

Note Payable - Narrative (Details) - USD ($)		3 Months Ended	9 Months Ended
Note Payable - Narrative (Details) - USD ($)	Aug. 03, 2018	Sep. 30, 2018	Sep. 30, 2018	Aug. 02, 2018
Debt Instrument [Line Items]
Aggregate principal amount		$ 39,500,000	$ 39,500,000
Line of Credit
Debt Instrument [Line Items]
Letter of credit		2,500,000	2,500,000
Line of Credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing availability	$ 13,000,000			$ 3,000,000.0
Additional commitments	50,000,000
Revolver balance		10,000,000	10,000,000
Remaining borrowing availability		500,000	500,000
Interest expense		72,000	72,000
Secured Debt
Debt Instrument [Line Items]
Principal amount of debt	40,000,000			$ 50,000,000.0
Debt issuance costs		606,000	$ 606,000
Amortization period			3 years
Aggregate principal amount		39,500,000	$ 39,500,000
Quarterly payments, first twelve months	500,000
Quarterly payments, next twelve months	750,000
Quarterly payments, last twelve months	$ 1,250,000
Write off of loan origination fees		$ 871,000
LIBOR \| Line of Credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate	2.50%
LIBOR \| Secured Debt
Debt Instrument [Line Items]
Basis spread on variable rate	2.50%

Note Payable - Schedule of Maturities of Note Payable (Details) $ in Thousands	Sep. 30, 2018 USD ($)
Debt Disclosure [Abstract]
2018	$ 500
2019	2,500
2020	4,000
2021	32,500
Note payable outstanding	$ 39,500

Note Payable - Leverage (Details)	Aug. 03, 2018
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%

Commitments and Contingencies - Narrative (Details) $ in Thousands	Sep. 30, 2018 USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2018	$ 331
2019	1,888
2020	2,588
2021	2,683
2022	2,551
2023-2029	14,043
Future minimum payments	$ 24,084

Income Taxes (Details)	Sep. 30, 2018 USD ($)
Income Tax Disclosure [Abstract]
Uncertain tax positions	$ 0

Income Taxes Schedule of Reconciliation of Income Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income (loss) before taxes	$ 1,000	$ 209	$ (18,951)	$ 8,300
Less: (income) prior to the Reorganization Transactions	0	(209)	(4,389)	(8,300)
Income (loss) before taxes	1,000	0	(23,340)	0
Income taxes at U.S. federal statutory rate	215	0	(4,902)	0
Tax on income not subject to entity level federal income tax	(147)	0	(382)	0
Non-deductible stock compensation costs	0	0	2,038	0
Non-controlling interest	32	0	3,479
Other permanent differences	11	0	25	0
State income tax, net of federal benefit	51	0	58	0
Other	2	0	2	0
Income tax expense	$ 164	$ 0	$ 318	$ 0

Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Investment in partnership	$ (36)	$ 0
Net deferred tax asset (liability)	$ (36)	$ 0

Other income (expense) - Narrative (Details) $ in Millions	1 Months Ended
Other income (expense) - Narrative (Details) $ in Millions	Jun. 30, 2017 USD ($)
Other Income and Expenses [Abstract]
Gain on transaction	$ 3.5

Stockholders' Equity - Narrative (Details) $ in Thousands		3 Months Ended	4 Months Ended	5 Months Ended	9 Months Ended
Stockholders' Equity - Narrative (Details) $ in Thousands	May 01, 2018 vote	Sep. 30, 2018 USD ($) vote shares	May 01, 2018 USD ($) vote	Sep. 30, 2018 USD ($) vote shares	Sep. 30, 2018 USD ($) vote shares	Dec. 31, 2017 shares
Class of Stock [Line Items]
Vote per share \| vote	1		1
Ownership interest held by non-controlling interest holders		62.70%		62.70%	62.70%
Dividends			$ 1,278	$ 1,645
Class A Common Stock
Class of Stock [Line Items]
Common stock shares outstanding (in shares) \| shares		13,533,000		13,533,000	13,533,000	0
Vote per share \| vote		1		1	1
Class B Common Stock
Class of Stock [Line Items]
Common stock shares outstanding (in shares) \| shares		22,747,000		22,747,000	22,747,000	0
Vote per share \| vote		1		1	1
LLC Units
Class of Stock [Line Items]
Distributions		$ 1,400			$ 3,800
Conversion ratio	1
Noncontrolling Interest
Class of Stock [Line Items]
Dividends				$ 1,645
Noncontrolling Interest \| Restatement Adjustment
Class of Stock [Line Items]
Dividends		745
Accumulated deficit \| Restatement Adjustment
Class of Stock [Line Items]
Dividends		(745)
Pre-IPO LLC Members \| LLC Units
Class of Stock [Line Items]
Distributions		900			2,900
Goosehead Insurance, Inc. \| LLC Units
Class of Stock [Line Items]
Distributions		$ 500			$ 900

Stockholders' Equity - Pro Forma Ownership Interest (Details) shares in Thousands	Sep. 30, 2018 shares
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Pro forma number of LLC Units outstanding (in shares)	36,280
Ownership interest held by non-controlling interest holders	62.70%
Ownership interest	100.00%
Parent
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Pro forma number of LLC Units outstanding (in shares)	13,533
Noncontrolling Interest
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Pro forma number of LLC Units outstanding (in shares)	22,747
Goosehead Financial, LLC
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Ownership interest held by Goosehead Insurance, Inc.	37.30%

Stockholders' Equity - Pro Forma Basic EPS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Pro forma earnings per share:
Income (loss) before taxes	$ 1,000	$ 209	$ (18,951)	$ 8,300
Less: income (loss) before taxes attributable to non-controlling interests	627		(10,246)
Income (loss) before taxes attributable to GSHD	373		(8,705)
Less: pro forma income tax expense	164	$ 0	318	$ 0
Less: income tax expense attributable to GSHD	132		286
Net loss attributable to Goosehead Insurance, Inc.	$ 241		$ (8,991)
Weighted average shares of Class A common stock outstanding - basic (in shares)	13,533,000		13,533,000
Pro forma weighted average shares of Class A common stock outstanding - basic (in shares)		13,533,000		13,533,000
Effect of dilutive securities (in shares)	1,081,000		0
Weighted average shares of Class A common stock outstanding - diluted (in shares)	14,614,000		13,533,000
Pro forma weighted average shares of Class A common stock outstanding - diluted (in shares)		14,614,000		14,522,000
Earnings per share of Class A common stock - basic (in dollars per share)	$ 0.02	$ (0.66)	$ (0.66)
Pro forma earnings per share of Class A common stock - basic (in dollars per share)		0.00		$ 0.17
Earnings per share of Class A common stock - diluted (in dollars per share)	$ 0.02		$ (0.66)
Pro forma earnings per share of Class A common stock - diluted (in dollars per share)		$ 0.00		$ 0.16
Pro Forma
Pro forma earnings per share:
Less: income (loss) before taxes attributable to non-controlling interests		$ 131		$ 5,204
Income (loss) before taxes attributable to GSHD		78		3,096
Less: pro forma income tax expense		20		774
Net loss attributable to Goosehead Insurance, Inc.		$ 58		$ 2,322
Effect of dilutive securities (in shares)		1,081,000		989,000
Employee Stock Option
Pro forma earnings per share:
Antidilutive securities excluded (in shares)	1,649,866		1,650,000

Equity-Based Compensation - Narrative (Details) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended			9 Months Ended
	May 01, 2018 $ / shares shares	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Apr. 30, 2018 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense \| $		$ 345		$ 1,150	$ 26,738	$ 1,335
Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividends \| $		0		1,150	122	1,335
Equity-based compensation expense \| $		0	$ 6,200	1,150	26,134	1,335
LLC Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Conversion ratio	1
LLC Units And Common Class B
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense \| $			$ 19,800
Shares issued (in shares) \| shares	1,978
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense \| $		345		$ 0	604	$ 0
Shares issued (in shares) \| shares	1,650
Grant price (in dollars per share) \| $ / shares	$ 10.00
Compensation cost \| $		$ 5,200			$ 5,200
Employee stock purchase plan \| Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant (in shares) \| shares							20
Omnibus Incentive Plan \| Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant (in shares) \| shares							1,500
Director \| Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares) \| shares	365
Award vesting period	3 years
Period for recognition					3 years
Employee \| Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares) \| shares	1,285
Period for recognition					4 years
Initial Public Offering \| Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share price (in dollars per share) \| $ / shares	$ 10

Equity-Based Compensation - Schedule of Equity-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 345		$ 1,150	$ 26,738	$ 1,335
Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	0	$ 6,200	1,150	26,134	1,335
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 345		$ 0	$ 604	$ 0

Equity-Based Compensation - Schedule of Stock Options Valuation Assumptions (Details) - Employee Stock Option	9 Months Ended
	Sep. 30, 2018 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	25.00%
Expected dividend yield	$ 0
Expected term (in years)	5 years 11 months 12 days
Risk-free interest rate	2.59%

Segment Information - Schedule of Segment Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($) segment	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)
Segment Reporting [Abstract]
Number of reportable segments \| segment			2
Revenues:
Revenues	$ 16,054	$ 10,807	$ 45,431	$ 31,576
Operating Expenses:
Employee compensation and benefits, excluding equity-based compensation	8,611	6,036	22,908	16,294
General and administrative expenses	3,694	2,142	9,093	5,987
Bad debts	399	275	984	850
Total operating expenses	12,704	8,453	32,985	23,131
Adjusted EBITDA	3,350	2,354	12,446	8,445
Other income (expense)	(22)	0	(22)	3,541
Equity-based compensation	(345)	(1,150)	(26,738)	(1,335)
Interest expense	(1,631)	(674)	(3,598)	(1,734)
Depreciation and amortization	(352)	(321)	(1,039)	(617)
Taxes	(164)	0	(318)	0
Net income (loss)	836	209	(19,269)	8,300
Total Assets	31,199	14,338	31,199	14,338	$ 16,706
Operating Segments \| Corporate Channel
Revenues:
Revenues	9,372	6,631	25,753	18,698
Operating Expenses:
Employee compensation and benefits, excluding equity-based compensation	5,218	3,719	13,872	9,836
General and administrative expenses	1,938	1,305	5,265	3,599
Bad debts	232	177	655	468
Total operating expenses	7,388	5,201	19,792	13,903
Adjusted EBITDA	1,984	1,430	5,961	4,795
Other income (expense)	(22)		(22)	0
Equity-based compensation	0	0	0	0
Interest expense	0	0	0	0
Depreciation and amortization	(224)	(229)	(699)	(474)
Taxes	0		0
Net income (loss)	1,738	1,201	5,240	4,321
Total Assets	14,222	7,187	14,222	7,187
Operating Segments \| Franchise Channel
Revenues:
Revenues	6,682	4,176	19,678	12,878
Operating Expenses:
Employee compensation and benefits, excluding equity-based compensation	3,393	2,317	9,036	6,458
General and administrative expenses	1,283	708	3,123	2,234
Bad debts	167	98	329	382
Total operating expenses	4,843	3,123	12,488	9,074
Adjusted EBITDA	1,839	1,053	7,190	3,804
Other income (expense)	0		0	3,541
Equity-based compensation	0	0	0	0
Interest expense	0	0	0	0
Depreciation and amortization	(128)	(92)	(340)	(143)
Taxes	0		0
Net income (loss)	1,711	961	6,850	7,202
Total Assets	9,073	4,351	9,073	4,351
Other
Revenues:
Revenues	0	0	0	0
Operating Expenses:
Employee compensation and benefits, excluding equity-based compensation	0	0	0	0
General and administrative expenses	473	129	705	154
Bad debts	0	0	0	0
Total operating expenses	473	129	705	154
Adjusted EBITDA	(473)	(129)	(705)	(154)
Other income (expense)	0		0	0
Equity-based compensation	(345)	(1,150)	(26,738)	(1,335)
Interest expense	(1,631)	(674)	(3,598)	(1,734)
Depreciation and amortization	0	0	0	0
Taxes	(164)		(318)
Net income (loss)	(2,613)	(1,953)	(31,359)	(3,223)
Total Assets	7,904	2,800	7,904	2,800
Commissions and agency fees
Revenues:
Revenues	9,760	6,692	28,072	19,908
Operating Expenses:
Total Assets		14,338		14,338
Commissions and agency fees \| Operating Segments \| Corporate Channel
Revenues:
Revenues	9,372	6,631	25,753	18,698
Operating Expenses:
Total Assets		7,187		7,187
Commissions and agency fees \| Operating Segments \| Franchise Channel
Revenues:
Revenues	388	61	2,319	1,210
Operating Expenses:
Total Assets		4,351		4,351
Commissions and agency fees \| Other
Revenues:
Revenues	0	0	0	0
Operating Expenses:
Total Assets		2,800		2,800
Franchise revenues
Revenues:
Revenues	6,180	4,048	17,060	11,499
Franchise revenues \| Operating Segments \| Corporate Channel
Revenues:
Revenues	0	0	0	0
Franchise revenues \| Operating Segments \| Franchise Channel
Revenues:
Revenues	6,180	4,048	17,060	11,499
Franchise revenues \| Other
Revenues:
Revenues	0	0	0	0
Interest income
Revenues:
Revenues	114	67	299	169
Interest income \| Operating Segments \| Corporate Channel
Revenues:
Revenues	0	0	0	0
Interest income \| Operating Segments \| Franchise Channel
Revenues:
Revenues	114	67	299	169
Interest income \| Other
Revenues:
Revenues	$ 0	$ 0	$ 0	$ 0