0001726978-19-000258 | 10-Q | XBRL Viewer

June 30, 2019

December 31, 2018

Investment in flow-through entity

Net deferred tax asset (liability)

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Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2019	Aug. 02, 2019
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2019
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, City or Town	Westlake
Entity Address, State or Province	TX
Entity Address, Address Line One	1500 Solana Blvd, Building 4, Suite 4500
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 Ex Transition Period	false
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Shell Company	false
Entity Central Index Key	0001726978
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Class A Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		15,122,323
Class B Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		21,166,168

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current Assets:
Cash and cash equivalents	$ 8,427	$ 18,635
Restricted cash	579	376
Commissions and agency fees receivable, net	2,392	2,016
Receivable from franchisees, net	1,429	703
Prepaid expenses	1,221	1,109
Total current assets	14,048	22,839
Receivable from franchisees, net of current portion	2,517	2,048
Property and equipment, net of accumulated depreciation	8,417	7,575
Intangible assets, net of accumulated amortization	413	248
Deferred income taxes, net	12,498	1,958
Other assets	199	130
Total assets	38,092	34,798
Current Liabilities:
Accounts payable and accrued expenses	3,177	3,978
Premiums payable	579	376
Unearned revenue	495	530
Deferred rent	502	428
Note payable	3,000	2,500
Total current liabilities	7,753	7,812
Deferred rent, net of current portion	5,516	4,548
Note payable, net of current portion	44,554	45,947
Liabilities under tax receivable agreement, net of current portion	10,817	1,694
Total liabilities	68,640	60,001
Commitments and contingencies (see note 7)
Additional paid in capital	85,221	88,811
Accumulated deficit	(9,165)	(6,578)
Total stockholders' equity	76,418	82,595
Non-controlling interests	(106,966)	(107,798)
Total equity	(30,548)	(25,203)
Total liabilities and stockholders' equity	38,092	34,798
Class A Common Stock
Current Liabilities:
Common stock	150	138
Class B Common Stock
Current Liabilities:
Common stock	$ 212	$ 224

Condensed Consolidated Balance Sheets (Unaudited) Parenthetical - $ / shares	Jun. 30, 2019	Dec. 31, 2018
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)	15,013,000	13,800,000
Common stock shares outstanding (in shares)	15,013,000	13,800,000
Class B Common Stock
Common stock par value (in dollars per share)	$ 0.01	$ 0.01
Common stock shares authorized (in shares)	50,000,000	50,000,000
Common stock shares issued (in shares)	21,275,000	22,486,000
Common stock shares outstanding (in shares)	21,275,000	22,486,000

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues:
Revenues	$ 19,386	$ 14,787	$ 42,519	$ 29,377
Operating Expenses:
Employee compensation and benefits (including Class B unit compensation of $0 for the three and six months ended June 30, 2019 and $26,134 for the three and six months ended June 30, 2018)	10,378	33,855	19,569	40,690
General and administrative expenses	4,201	3,025	8,631	5,399
Bad debts	482	306	883	586
Depreciation and amortization	452	350	875	687
Total operating expenses	15,513	37,536	29,958	47,362
Income (loss) from operations	3,873	(22,749)	12,561	(17,985)
Other Income (Expense):
Interest expense	(626)	(972)	(1,252)	(1,968)
Income (loss) before taxes	3,247	(23,721)	11,309	(19,953)
Tax expense	430	154	1,174	154
Net income (loss)	2,817	(23,875)	10,135	(20,107)
Less: net income (loss) attributable to non-controlling interests	1,914	(14,641)	6,760	(10,873)
Net income (loss) attributable to Goosehead Insurance, Inc.	$ 903	$ (9,234)	$ 3,375	$ (9,234)
Earnings (loss) per share:
Basic (in dollars per share)	$ 0.06	$ (0.68)	$ 0.23	$ (0.68)
Diluted (in dollars per share)	$ 0.06	$ (0.68)	$ 0.22	$ (0.68)
Weighted average shares of Class A common stock outstanding
Basic (in shares)	14,876	13,533	14,545	13,533
Diluted (in shares)	16,065	13,533	15,685	13,533
Dividends declared per share (in dollars per share)	$ 0	$ 0	$ 0.41	$ 0
Commissions and agency fees
Revenues:
Revenues	$ 10,763	$ 8,716	$ 26,933	$ 18,312
Franchise revenues
Revenues:
Revenues	8,475	5,969	15,303	10,880
Interest income
Revenues:
Revenues	$ 148	$ 102	$ 283	$ 185

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Class A Common Stock	Class B Common Stock	Members' deficit	Common stock Class A Common Stock	Common stock Class B Common Stock	Additional paid in capital	Accumulated deficit	Total stockholders' equity	Non-controlling interest
Beginning balance at Dec. 31, 2017	$ (41,133)			$ (41,133)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	3,768			3,768
Distributions	0			0
Ending balance at Mar. 31, 2018	(37,365)			(37,365)
Beginning balance at Dec. 31, 2017	(41,133)			(41,133)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	621			621
Distributions	(1,278)			(1,278)
Ending balance at May. 01, 2018	(38,022)			(38,022)
Beginning balance at Dec. 31, 2017	(41,133)			(41,133)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	(20,107)
Ending balance at Jun. 30, 2018	(26,684)			0	$ 135	$ 227	$ 89,034	$ (6,813)	$ 82,583	$ (109,267)
Ending balance (in shares) at Jun. 30, 2018					13,533	22,747
Beginning balance at Mar. 31, 2018	(37,365)			(37,365)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	(23,875)
Ending balance at Jun. 30, 2018	(26,684)			0	$ 135	$ 227	89,034	(6,813)	82,583	(109,267)
Ending balance (in shares) at Jun. 30, 2018					13,533	22,747
Stock Issued During Period, Value, Effects Of The Reorganization Transaction	(113,734)			38,022		$ 227	(132,202)	(7,379)	(139,354)	(12,402)
Noncontrolling Interest, Increase from Subsidiary Equity Issuance	0						97,071		97,071	(97,071)
Stock Issued During Period, Shares, New Issues		13,533
Stock Issued During Period, Value, New Issues	124,129	$ 135					123,994		124,129
Stock Issued During Period, Shares, Effects Of The Reorganization Transaction						22,747
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	(745)
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders \| Misclassification of distributions to non-controlling interest [Member]	(745)
Beginning balance at May. 01, 2018	(38,022)			(38,022)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	1,517							566	566	951
Equity-based compensation	260						260		260
Deferred tax adjustments related to Tax Receivable Agreement	(89)						(89)		(89)
Ending balance at Jun. 30, 2018	(26,684)			$ 0	$ 135	$ 227	89,034	(6,813)	82,583	(109,267)
Ending balance (in shares) at Jun. 30, 2018					13,533	22,747
Beginning balance at Dec. 31, 2018	(25,203)				$ 138	$ 224	88,811	(6,578)	82,595	(107,798)
Beginning balance (in shares) at Dec. 31, 2018					13,799	22,486
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	7,318							2,472	2,472	4,846
Distributions	(245)									(245)
Dividends declared	(15,000)							(5,962)	(5,962)	(9,038)
Equity-based compensation	368						368		368
Redemption of LLC Units (in shares)					723	(723)
Redemption of LLC Units	0				$ 7	$ (7)	(3,607)		(3,607)	3,607
Deferred tax adjustments related to Tax Receivable Agreement	911						911		911
Ending balance at Mar. 31, 2019	(31,851)				$ 145	$ 217	86,483	(10,068)	76,777	(108,628)
Ending balance (in shares) at Mar. 31, 2019					14,522	21,763
Beginning balance at Dec. 31, 2018	(25,203)				$ 138	$ 224	88,811	(6,578)	82,595	(107,798)
Beginning balance (in shares) at Dec. 31, 2018					13,799	22,486
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 10,135
Redemption of LLC Units (in shares)	1,211	1,211	1,211
Ending balance at Jun. 30, 2019	$ (30,548)				$ 150	$ 212	85,221	(9,165)	76,418	(106,966)
Ending balance (in shares) at Jun. 30, 2019					15,013	21,275
Beginning balance at Mar. 31, 2019	(31,851)				$ 145	$ 217	86,483	(10,068)	76,777	(108,628)
Beginning balance (in shares) at Mar. 31, 2019					14,522	21,763
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	2,817							903	903	1,914
Distributions	(2,708)									(2,708)
Equity-based compensation	368						368		368
Activity under employee stock purchase plan (in shares)					3
Stock Issued During Period, Value, Employee Stock Purchase Plan	$ 142						142		142
Redemption of LLC Units (in shares)	488	488	488		488	(488)
Redemption of LLC Units	$ 0				$ 5	$ (5)	(2,456)		(2,456)	2,456
Deferred tax adjustments related to Tax Receivable Agreement	684						684		684
Ending balance at Jun. 30, 2019	$ (30,548)				$ 150	$ 212	$ 85,221	$ (9,165)	$ 76,418	$ (106,966)
Ending balance (in shares) at Jun. 30, 2019					15,013	21,275

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net income (loss)	$ 10,135	$ (20,107)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	982	687
Bad debt expense	883	586
Equity-based compensation	736	26,272
Adjustments to tax receivable agreement liability	9,126	0
Deferred income taxes	(8,945)	2
Changes in operating assets and liabilities:
Commissions and agency fees receivable	(892)	(1,114)
Receivable from franchisees	(1,438)	(487)
Prepaid expenses	(111)	(416)
Other assets	(69)	415
Accounts payable and accrued expenses	(935)	1,546
Deferred rent	1,042	278
Premiums payable	203	198
Unearned revenue	(35)	(552)
Net cash provided by operating activities	10,682	7,308
Cash flows from investing activities:
Proceeds from notes receivable	11	11
Purchase of software	(251)	(79)
Purchase of property and equipment	(1,636)	(724)
Net cash used for investing activities	(1,876)	(792)
Cash flows from financing activities:
Loan origination fees	0	99
Repayment of note payable	(1,000)	(250)
Proceeds from the issuance of Class A common stock	142	86,892
Member distributions and dividends	(17,953)	(79,069)
Net cash provided by (used for) financing activities	(18,811)	7,672
Net increase in cash and restricted cash	(10,005)	14,188
Cash and cash equivalents, and restricted cash, beginning of period	19,011	5,366
Cash and cash equivalents, and restricted cash, end of period	9,006	19,554
Supplemental disclosures of cash flow data:
Cash paid during the year for interest	1,252	1,869
Cash paid for income taxes	875	0
Management fee note repayment through issuance of Class A common stock	$ 0	$ 37,238

Organization	6 Months Ended
Organization	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	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. Following completion of the Offering, GSHD owned 37.3% of Goosehead Financial, LLC (“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. 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. Operations for any periods prior to May 1, 2018 are the condensed, consolidated and combined operations of GF and its subsidiaries and affiliates. GSHD (collectively with its consolidated subsidiaries, the “Company”) provides personal and commercial property and casualty insurance brokerage services for its clients through a network of corporate-owned agencies and franchise units across the nation. The Company had seven corporate-owned locations in operation at June 30, 2019 and 2018. Franchisees are provided access to insurance Carrier Appointments, product training, technology infrastructure, client service centers and back office services. During the three months ended June 30, 2019 and 2018, the Company sold 57 and 55 franchise locations, respectively and had 535 and 385 operating franchise locations as of June 30, 2019 and 2018, respectively. No franchises were purchased by the Company during the three and six months ended June 30, 2019 or 2018. All intercompany accounts and transactions have been eliminated in consolidation.

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2019

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 June 30, 2019, the condensed consolidated results of operations and stockholders' equity for the three and six months ended June 30, 2019 and 2018, and the condensed consolidated statements of cash flows for the six months ended June 30, 2019 and 2018. 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.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported period. Accordingly, actual results could differ from those estimates as more information becomes known.

Income Taxes

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

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

The Company accounts for income taxes pursuant to the asset and liability method which requires the recognition of deferred income tax assets and liabilities related to the expected future tax consequences arising from temporary differences between the carrying amounts and tax bases of assets and liabilities based on enacted statutory tax

rates applicable to the periods in which the temporary differences are expected to reverse. Any effects of changes in income tax rates or laws are included in income tax expense in the period of enactment.

Restricted Cash

The Company holds premiums received from the insured, but not yet remitted to the insurance carrier in a fiduciary capacity. Premiums received but not yet remitted included in restricted cash were $579 thousand and $616 thousand as of June 30, 2019 and 2018, respectively.

The following is a reconciliation of our cash and restricted cash balances as presented in the condensed consolidated statement of cash flows for the six months ended June 30, 2019 and 2018 (in thousands):



	June 30
	2019		2018
Cash and cash equivalents	$	8,427	$	18,938
Restricted cash	579		616
Cash and cash equivalents, and restricted cash	$	9,006	$	19,554

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, the Company’s condensed consolidated statement of cash flows shows 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 became effective for the Company January 1, 2019. As shown in the reconciliation above, restricted cash of $616 thousand, which was previously shown as an investing activity has been reclassified and is now included together with cash and cash equivalents to conform to the current period presentation in the condensed consolidated statement of cash flows for the six months ended June 30, 2018 as a result of the adoption of ASU 2016-18.

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 became 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 EGC, the standard became 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 the contract term, typically 10 years.

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 services to which the asset relates.

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. However, the Company expects the impact of this guidance on its consolidated financial statements could be significant, as its future minimum operating lease commitments totaled $23.3 million as of June 30, 2019.

Franchise Fees Receivable

6 Months Ended

Jun. 30, 2019

Receivables [Abstract]

Franchise Fees Receivable

The balance of Franchise fees receivable included in Receivable from franchisees consisted of the following at June 30, 2019 and December 31, 2018 (in thousands):



	June 30			December 31
	2019			2018
Franchise fees receivable	$	4,595		$	3,906
Less: Unamortized discount	(1,635		)	(1,381		)
Less: Allowance for uncollectible franchise fees	(533		)	(455		)
Total franchise fees receivable	$	2,427		$	2,070

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



Balance at December 31, 2018	$	455
Charges to bad debts	367
Write offs	(289		)
Balance at June 30, 2019	$	533

Balance at December 31, 2017	$	336
Charges to bad debts	163
Write offs	(45		)
Balance at June 30, 2018	$	454

Allowance for Uncollectible Agency Fees

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



Balance at December 31, 2018	$	242
Charges to bad debts	516
Write offs	(472		)
Balance at June 30, 2019	$	286

Balance at December 31, 2017	$	183
Charges to bad debts	423
Write offs	(383		)
Balance at June 30, 2018	$	223

Allowance for Uncollectible Agency Fees

6 Months Ended

Jun. 30, 2019

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 June 30, 2019 and December 31, 2018 (in thousands):



	June 30			December 31
	2019			2018
Franchise fees receivable	$	4,595		$	3,906
Less: Unamortized discount	(1,635		)	(1,381		)
Less: Allowance for uncollectible franchise fees	(533		)	(455		)
Total franchise fees receivable	$	2,427		$	2,070

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



Balance at December 31, 2018	$	455
Charges to bad debts	367
Write offs	(289		)
Balance at June 30, 2019	$	533

Balance at December 31, 2017	$	336
Charges to bad debts	163
Write offs	(45		)
Balance at June 30, 2018	$	454

Allowance for Uncollectible Agency Fees

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



Balance at December 31, 2018	$	242
Charges to bad debts	516
Write offs	(472		)
Balance at June 30, 2019	$	286

Balance at December 31, 2017	$	183
Charges to bad debts	423
Write offs	(383		)
Balance at June 30, 2018	$	223

Property and equipment

6 Months Ended

Jun. 30, 2019

Property, Plant and Equipment [Abstract]

Property and equipment

Property and equipment consisted of the following at:



	June 30,			December 31,
	2019			2018
Furniture & fixtures	$	2,605		$	2,233
Computer equipment	1,209			1,023
Network equipment	252			252
Phone system	857			824
Leasehold improvements	7,735			6,692
Total	12,658			11,024
Less accumulated depreciation	(4,241		)	(3,449		)
Property and equipment, net	$	8,417		$	7,575

Note Payable

6 Months Ended

Jun. 30, 2019

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. As of June 30, 2019, the Company was in the greater than 1.50x leverage ratio tranche, accruing interest of LIBOR plus 2.00%. At June 30, 2019, the Company had $10.0 million drawn against the revolver. At June 30, 2019, the Company had a letter of credit of $417 thousand applied against the maximum borrowing availability, thus amounts available to draw totaled $2.6 million. The revolving credit facility is collateralized by substantially all the Company’s assets, which includes rights to future commissions. Interest paid on the revolving credit facility totaled $117 thousand and $239 thousand for the three and six months ended June 30, 2019.

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. As of June 30, 2019, the Company was in the greater than 1.50x leverage ratio tranche, accruing interest of LIBOR plus 2.00%. The aggregate principal amount of the term note as of June 30, 2019 was $38.0 million, payable in quarterly installments of (x) $750,000 from the fiscal quarter ending September 30, 2019 through the fiscal quarter ending June 30, 2020, and (y) $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 three calendar years as of June 30, 2019 are as follows (in thousands):



	Amount
2019	$	1,500
2020	4,000
2021	32,500
Total	$	38,000

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 $446 thousand at June 30, 2019 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).

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 June 30, 2019, the Company was in compliance with these covenants.

Because of both instruments’ variable interest rate, the note payable balance at June 30, 2019 and December 31, 2018, 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

6 Months Ended

Jun. 30, 2019

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. Rent expense was $447 thousand and $405 thousand for the three months

ended June 30, 2019 and 2018. Rent expense was $893 thousand and $810 thousand for the six months ended June 30, 2019 and 2018.

The following is a schedule of future minimum lease payments as of June 30, 2019 (in thousands):



	Amount
2019	$	917
2020	2,575
2021	2,793
2022	2,762
2023	2,578
2024-2029	11,626
Total	$	23,251

Income Taxes

6 Months Ended

Jun. 30, 2019

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 June 30, 2019			Six Months Ended June 30, 2019
Income before taxes	$	3,247		$	11,309

Income taxes at U.S. federal statutory rate	$	681		$	2,374
Tax on income not subject to entity level federal income tax	(365		)	(1,423		)
Permanent Differences:
Meals & Entertainment	17			25
Non-deductible stock compensation costs	11			11
Non-deductible excess compensation	21			21
State income tax, net of federal benefit	64			167
Other Reconciling items:
Other	1			(1		)
Income tax expense	$	430		$	1,174



	Three Months Ended June 30, 2018			Six Months Ended June 30, 2018
(Loss) Income before taxes	$	(23,721	)	$	(19,953	)
Less: income prior to the Reorganization Transactions	(621		)	(4,389		)
Less: income attributable to non-controlling interests	15,262			15,262
(Loss) Income attributable to Goosehead Insurance, Inc. before taxes	$	(9,080	)	$	(9,080	)

Income taxes at U.S. federal statutory rate	(1,908		)	(1,908		)
State and local income taxes, net of federal benefit	11			11
Permanent differences	2,051			2,051
Income tax expense	$	154		$	154

Deferred tax assets and liabilities

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

Uncertain tax positions

GSHD has determined there are no material uncertain tax positions as of June 30, 2019.

Tax Receivable Agreement

GF intends to make an election under Section 754 of the Internal Revenue Code of 1986, as amended, and the regulations thereunder (the “Code”) effective for each taxable year in which a redemption or exchange of LLC Units and corresponding Class B common stock for shares of Class A common stock occurs. Future taxable redemptions or exchanges are expected to result in tax basis adjustments to the assets of GF that will be allocated to the Company and thus produce favorable tax attributes. These tax attributes would not be available to GSHD in the absence of those transactions. The anticipated tax basis adjustments are expected to reduce the amount of tax that GSHD would otherwise be required to pay in the future.

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

During the three and six months ended June 30, 2019, an aggregate of 488 thousand and 1,211 thousand 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 488 thousand and 1,211 thousand 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 June 30, 2019, the total amount of TRA Payments due to the Pre-IPO LLC Members under the tax receivable agreement was $10.8 million, of which $11 thousand was current and included in Accounts payables and accrued expenses on the Consolidated Balance Sheet.

Stockholders' Equity

6 Months Ended

Jun. 30, 2019

Equity [Abstract]

Stockholders' Equity

Class A Common Stock

GSHD has a total of 15,013 thousand shares of its Class A common stock outstanding at June 30, 2019. 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 21,275 thousand shares of its Class B common stock outstanding at June 30, 2019. 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 to facilitate the LLC Unit holder's quarterly tax payments. For the three and six months ended June 30, 2019, GF made distributions of $4.5 million and $4.9 million, of which $2.7 million and $3.0 million where made to Pre-IPO LLC Members. The remaining $1.8 million and $2.0 million were made to GSHD and were eliminated in consolidation. For the three and six months ended June 30, 2018, GF made distributions of $2.4 million, of which $2.0 million where made to Pre-IPO LLC Members. The remaining $340 thousand were made to GSHD and were eliminated in consolidation.

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

During the three and six months ended June 30, 2019, an aggregate of 488 thousand and 1,211 thousand LLC Units were redeemed by the non-controlling interest holders. Pursuant to the GF LLC Agreement, GSHD issued 488 thousand and 1,211 thousand shares of Class A common stock in connection with these redemptions and received 488 thousand and 1,211 thousand LLC Interests, increasing GSHD's ownership interest in GF. Simultaneously, and in connection with these redemptions, 488 thousand and 1,211 thousand shares of Class B common stock were surrendered and cancelled.

The following table summarizes the ownership interest in GF as of June 30, 2019 (in thousands).



	June 30, 2019
	LLC Units	Ownership %
Number of LLC Units held by GSHD	15,013	41.4%
Number of LLC Units held by non-controlling interest holders	21,275	58.6%
Number of LLC Units outstanding	36,288	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 six months ended June 30, 2019 was 59.0% and 59.9%. All net income prior to the Offering is attributed to non-controlling interest holders.

During the third quarter of 2018, 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 six months ended June 30, 2019, divided by the basic weighted average number of Class A common stock as of June 30, 2019 (in thousands, except per share amounts). Diluted earnings per share of Class A common stock is computed by dividing net income attributable to GSHD by the weighted average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities (in thousands, except per share amounts). The Company has not included the effects of conversion of Class B shares to Class A shares in the diluted EPS calculation using the "if-converted" method, because doing so has no impact on diluted EPS.



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Numerator:
Income before taxes	$	3,247	$	11,309
Less: income before taxes attributable to non-controlling interests	1,952		6,861
Income before taxes attributable to GSHD	1,295		4,448
Less: income tax expense attributable to GSHD	392		1,073
Net income attributable to GSHD	$	903	$	3,375
Denominator:
Weighted average shares of Class A common stock outstanding - basic	14,876		14,545
Effect of dilutive securities:
Stock options	1,189		1,140
Weighted average shares of Class A common stock outstanding - diluted	16,065		15,685

Earnings per share of Class A common stock - basic	$	0.06	$	0.23
Earnings per share of Class A common stock - diluted	$	0.06	$	0.22

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



	Three Months Ended June 30, 2018			Six Months Ended June 30, 2018
Numerator:
Net loss before taxes	$	(23,721	)	$	(19,953	)
Less: net loss attributable to non-controlling interests	(14,641		)	(10,873		)
Loss before taxes attributable to Goosehead Insurance, Inc.	(9,080		)	(9,080		)
Less: income tax expense	154			154
Net loss attributable to Goosehead Insurance, Inc.⁽¹⁾	$	(9,234	)	$	(9,234	)
Denominator:
Weighted average shares of Class A common stock outstanding	13,533			13,533
Effect of dilutive securities:
Stock options⁽²⁾	—			—
Weighted average shares of Class A common stock outstanding - diluted	13,533			13,533

Earnings per share of Class A common stock - basic	$	(0.68	)	$	(0.68	)
Earnings per share of Class A common stock - diluted	$	(0.68	)	$	(0.68	)


(1)	Net income attributable to Goosehead Insurance, Inc. 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 because the effect would have been anti-dilutive, as we recorded a net loss for the three and six months ended June 30, 2018.

Equity-Based Compensation

6 Months Ended

Jun. 30, 2019

Share-based Payment Arrangement [Abstract]

Equity-Based Compensation

A summary of equity-based compensation expense during the three and six months ended June 30, 2019 and June 30, 2018 is as follows (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Class B unit compensation	$	—	$	26,134	$	—	$	26,134
Stock options	368		260		735		260
Equity-based compensation expense	$	368	$	26,394	$	735	$	26,394

Dividends

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Dividends

On March 7, 2019, GF approved a $15.0 million extraordinary dividend to all holders of LLC Units, including GSHD. The board of directors of the Company then declared an extraordinary dividend of $0.41 (rounded) to all holders of Class A common stock of GSHD with a record date of March 18, 2019, paid on or before April 1, 2019. A summary of the total amounts declared by GF is as follows (in thousands):



	LLC Units held as of March 18, 2019	Dividends declared
Class A common stockholders	14,421	$	5,962
Class B common stockholders via LLC Units held	21,864	9,038
Total	36,285	$	15,000

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

Segment Information

6 Months Ended

Jun. 30, 2019

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 June 30, 2019:
Revenues:
Commissions and fees	$	10,672		$	91		$	—		$	10,763
Franchise revenues	—			8,475			—			8,475
Interest income	—			148			—			148
Total	10,672			8,714			—			19,386
Operating expenses:
Employee compensation and benefits, excluding equity-based compensation	5,972			4,038			—			10,010
General and administrative expenses	2,078			1,531			592			4,201
Bad debts	275			207			—			482
Total	8,325			5,776			592			14,693
Adjusted EBITDA	2,347			2,938			(592		)	4,693
Equity-based compensation	—			—			(368		)	(368		)
Interest expense	—			—			(626		)	(626		)
Depreciation and amortization	(234		)	(218		)	—			(452		)
Taxes	—			—			(430		)	(430		)
Net income (loss)	$	2,113		$	2,720		$	(2,016	)	$	2,817
At June 30, 2019:
Total Assets	$	7,018		$	13,165		$	17,909		$	38,092



	Corporate Channel			Franchise Channel			Other			Total
Three months ended June 30, 2018:
Revenues:
Commissions and fees	$	8,525		$	191		$	—		$	8,716
Franchise revenues	—			5,969			—			5,969
Interest income	—			102			—			102
Total	8,525			6,262			—			14,787
Operating expenses:
Employee compensation and benefits, excluding equity-based compensation	4,609			2,852			—			7,461
General and administrative expenses	1,794			1,112			119			3,025
Bad debts	217			89			—			306
Total	6,620			4,053			119			10,792
Adjusted EBITDA	1,905			2,209			(119		)	3,995
Equity-based compensation	—			—			(26,394		)	(26,394		)
Interest expense	—			—			(972		)	(972		)
Depreciation and amortization	(238		)	(112		)	—			(350		)
Taxes	—			—			(154		)	(154		)
Net income (loss)	$	1,667		$	2,097		$	(27,639	)	$	(23,875	)
At June 30, 2018:
Total Assets	$	12,824		$	6,147		$	13,045		$	32,016



	Corporate Channel			Franchise Channel			Other			Total
Six Months Ended June 30, 2019:
Revenues:
Commissions and fees	$	22,627		$	4,306		$	—		$	26,933
Franchise revenues	—			15,303			—			15,303
Interest income	—			283			—			283
Total	22,627			19,892			—			42,519
Operating expenses:
Employee compensation and benefits, excluding equity-based compensation	11,039			7,795			—			18,834
General and administrative expenses	3,980			3,162			1,489			8,631
Bad debts	516			367			—			883
Total	15,535			11,324			1,489			28,348
Adjusted EBITDA	7,092			8,568			(1,489		)	14,171
Equity-based compensation	—			—			(735		)	(735		)
Interest expense	—			—			(1,252		)	(1,252		)
Depreciation and amortization	(473		)	(402		)	—			(875		)
Taxes	—			—			(1,174		)	(1,174		)
Net income (loss)	$	6,619		$	8,166		$	(4,650	)	$	10,135
At June 30, 2019:
Total Assets	$	7,018		$	13,165		$	17,909		$	38,092



	Corporate Channel			Franchise Channel			Other			Total
Six Months Ended June 30, 2018:
Revenues:
Commissions and fees	$	16,381		$	1,931		$	—		$	18,312
Franchise revenues	—			10,880			—			10,880
Interest income	—			185			—			185
Total	16,381			12,996			—			29,377
Operating expenses:
Employee compensation and benefits, excluding equity-based compensation	8,653			5,643			—			14,296
General and administrative expenses	3,422			1,857			120			5,399
Bad debts	423			163			—			586
Total	12,498			7,663			120			20,281
Adjusted EBITDA	3,883			5,333			(120		)	9,096
Equity-based compensation	—			—			(26,394		)	(26,394		)
Interest expense	—			—			(1,968		)	(1,968		)
Depreciation and amortization	(474		)	(213		)	—			(687		)
Taxes	—			—			(154		)	(154		)
Net income (loss)	$	3,409		$	5,120		$	(28,636	)	$	(20,107	)
At June 30, 2018:
Total Assets	$	12,824		$	6,147		$	13,045		$	32,016

Litigation	6 Months Ended
Litigation	Jun. 30, 2019
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.

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Basis of Combination

All intercompany accounts and transactions have been eliminated in consolidation.

Basis of Presentation

Use of Estimates

Income Taxes

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

Restricted Cash

The Company holds premiums received from the insured, but not yet remitted to the insurance carrier in a fiduciary capacity.

Recently Issued Accounting Pronouncements

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

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+ Details

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Restrictions on Cash and Cash Equivalents



	June 30
	2019		2018
Cash and cash equivalents	$	8,427	$	18,938
Restricted cash	579		616
Cash and cash equivalents, and restricted cash	$	9,006	$	19,554

Schedule of Reconciliation of Cash and Restricted Cash



	June 30
	2019		2018
Cash and cash equivalents	$	8,427	$	18,938
Restricted cash	579		616
Cash and cash equivalents, and restricted cash	$	9,006	$	19,554

Franchise Fees Receivable (Tables)

6 Months Ended

Jun. 30, 2019

Receivables [Abstract]

Schedule of Franchise Fees Receivable

The balance of Franchise fees receivable included in Receivable from franchisees consisted of the following at June 30, 2019 and December 31, 2018 (in thousands):



	June 30			December 31
	2019			2018
Franchise fees receivable	$	4,595		$	3,906
Less: Unamortized discount	(1,635		)	(1,381		)
Less: Allowance for uncollectible franchise fees	(533		)	(455		)
Total franchise fees receivable	$	2,427		$	2,070

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



Balance at December 31, 2018	$	242
Charges to bad debts	516
Write offs	(472		)
Balance at June 30, 2019	$	286

Balance at December 31, 2017	$	183
Charges to bad debts	423
Write offs	(383		)
Balance at June 30, 2018	$	223

Schedule of Allowance For Uncollectible Franchise Fees

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



Balance at December 31, 2018	$	455
Charges to bad debts	367
Write offs	(289		)
Balance at June 30, 2019	$	533

Balance at December 31, 2017	$	336
Charges to bad debts	163
Write offs	(45		)
Balance at June 30, 2018	$	454

Allowance for Uncollectible Agency Fees (Tables)

6 Months Ended

Jun. 30, 2019

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 June 30, 2019 and December 31, 2018 (in thousands):



	June 30			December 31
	2019			2018
Franchise fees receivable	$	4,595		$	3,906
Less: Unamortized discount	(1,635		)	(1,381		)
Less: Allowance for uncollectible franchise fees	(533		)	(455		)
Total franchise fees receivable	$	2,427		$	2,070

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



Balance at December 31, 2018	$	242
Charges to bad debts	516
Write offs	(472		)
Balance at June 30, 2019	$	286

Balance at December 31, 2017	$	183
Charges to bad debts	423
Write offs	(383		)
Balance at June 30, 2018	$	223

Property and equipment (Tables)

6 Months Ended

Jun. 30, 2019

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment consisted of the following at:



	June 30,			December 31,
	2019			2018
Furniture & fixtures	$	2,605		$	2,233
Computer equipment	1,209			1,023
Network equipment	252			252
Phone system	857			824
Leasehold improvements	7,735			6,692
Total	12,658			11,024
Less accumulated depreciation	(4,241		)	(3,449		)
Property and equipment, net	$	8,417		$	7,575

Note Payable (Tables)

6 Months Ended

Jun. 30, 2019

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 three calendar years as of June 30, 2019 are as follows (in thousands):



	Amount
2019	$	1,500
2020	4,000
2021	32,500
Total	$	38,000

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Lease Payments

The following is a schedule of future minimum lease payments as of June 30, 2019 (in thousands):



	Amount
2019	$	917
2020	2,575
2021	2,793
2022	2,762
2023	2,578
2024-2029	11,626
Total	$	23,251

Income Taxes (Tables)

6 Months Ended

Jun. 30, 2019

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 June 30, 2019			Six Months Ended June 30, 2019
Income before taxes	$	3,247		$	11,309

Income taxes at U.S. federal statutory rate	$	681		$	2,374
Tax on income not subject to entity level federal income tax	(365		)	(1,423		)
Permanent Differences:
Meals & Entertainment	17			25
Non-deductible stock compensation costs	11			11
Non-deductible excess compensation	21			21
State income tax, net of federal benefit	64			167
Other Reconciling items:
Other	1			(1		)
Income tax expense	$	430		$	1,174

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 June 30, 2019			Six Months Ended June 30, 2019
Income before taxes	$	3,247		$	11,309

Income taxes at U.S. federal statutory rate	$	681		$	2,374
Tax on income not subject to entity level federal income tax	(365		)	(1,423		)
Permanent Differences:
Meals & Entertainment	17			25
Non-deductible stock compensation costs	11			11
Non-deductible excess compensation	21			21
State income tax, net of federal benefit	64			167
Other Reconciling items:
Other	1			(1		)
Income tax expense	$	430		$	1,174

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 June 30, 2019			Six Months Ended June 30, 2019
Income before taxes	$	3,247		$	11,309

Income taxes at U.S. federal statutory rate	$	681		$	2,374
Tax on income not subject to entity level federal income tax	(365		)	(1,423		)
Permanent Differences:
Meals & Entertainment	17			25
Non-deductible stock compensation costs	11			11
Non-deductible excess compensation	21			21
State income tax, net of federal benefit	64			167
Other Reconciling items:
Other	1			(1		)
Income tax expense	$	430		$	1,174

Schedule of Deferred Tax Assets and Liabilities

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

Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2019

Equity [Abstract]

Summary of Pro Forma Ownership Interest

The following table summarizes the ownership interest in GF as of June 30, 2019 (in thousands).



	June 30, 2019
	LLC Units	Ownership %
Number of LLC Units held by GSHD	15,013	41.4%
Number of LLC Units held by non-controlling interest holders	21,275	58.6%
Number of LLC Units outstanding	36,288	100.0%

Schedule of Calculation of EPS and Pro Forma EPS



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Numerator:
Income before taxes	$	3,247	$	11,309
Less: income before taxes attributable to non-controlling interests	1,952		6,861
Income before taxes attributable to GSHD	1,295		4,448
Less: income tax expense attributable to GSHD	392		1,073
Net income attributable to GSHD	$	903	$	3,375
Denominator:
Weighted average shares of Class A common stock outstanding - basic	14,876		14,545
Effect of dilutive securities:
Stock options	1,189		1,140
Weighted average shares of Class A common stock outstanding - diluted	16,065		15,685

Earnings per share of Class A common stock - basic	$	0.06	$	0.23
Earnings per share of Class A common stock - diluted	$	0.06	$	0.22



	Three Months Ended June 30, 2018			Six Months Ended June 30, 2018
Numerator:
Net loss before taxes	$	(23,721	)	$	(19,953	)
Less: net loss attributable to non-controlling interests	(14,641		)	(10,873		)
Loss before taxes attributable to Goosehead Insurance, Inc.	(9,080		)	(9,080		)
Less: income tax expense	154			154
Net loss attributable to Goosehead Insurance, Inc.⁽¹⁾	$	(9,234	)	$	(9,234	)
Denominator:
Weighted average shares of Class A common stock outstanding	13,533			13,533
Effect of dilutive securities:
Stock options⁽²⁾	—			—
Weighted average shares of Class A common stock outstanding - diluted	13,533			13,533

Earnings per share of Class A common stock - basic	$	(0.68	)	$	(0.68	)
Earnings per share of Class A common stock - diluted	$	(0.68	)	$	(0.68	)


(1)	Net income attributable to Goosehead Insurance, Inc. excludes all net income prior to the Offering.

(2)

Equity-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2019

Share-based Payment Arrangement [Abstract]

Summary of Equity-Based Compensation Expense

A summary of equity-based compensation expense during the three and six months ended June 30, 2019 and June 30, 2018 is as follows (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Class B unit compensation	$	—	$	26,134	$	—	$	26,134
Stock options	368		260		735		260
Equity-based compensation expense	$	368	$	26,394	$	735	$	26,394

Dividends (Tables)

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Summary of total estimated dividends to be paid

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



	LLC Units held as of March 18, 2019	Dividends declared
Class A common stockholders	14,421	$	5,962
Class B common stockholders via LLC Units held	21,864	9,038
Total	36,285	$	15,000

Segment Information (Tables)

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Schedule of Segment Information



	Corporate Channel			Franchise Channel			Other			Total
Three months ended June 30, 2019:
Revenues:
Commissions and fees	$	10,672		$	91		$	—		$	10,763
Franchise revenues	—			8,475			—			8,475
Interest income	—			148			—			148
Total	10,672			8,714			—			19,386
Operating expenses:
Employee compensation and benefits, excluding equity-based compensation	5,972			4,038			—			10,010
General and administrative expenses	2,078			1,531			592			4,201
Bad debts	275			207			—			482
Total	8,325			5,776			592			14,693
Adjusted EBITDA	2,347			2,938			(592		)	4,693
Equity-based compensation	—			—			(368		)	(368		)
Interest expense	—			—			(626		)	(626		)
Depreciation and amortization	(234		)	(218		)	—			(452		)
Taxes	—			—			(430		)	(430		)
Net income (loss)	$	2,113		$	2,720		$	(2,016	)	$	2,817
At June 30, 2019:
Total Assets	$	7,018		$	13,165		$	17,909		$	38,092



	Corporate Channel			Franchise Channel			Other			Total
Three months ended June 30, 2018:
Revenues:
Commissions and fees	$	8,525		$	191		$	—		$	8,716
Franchise revenues	—			5,969			—			5,969
Interest income	—			102			—			102
Total	8,525			6,262			—			14,787
Operating expenses:
Employee compensation and benefits, excluding equity-based compensation	4,609			2,852			—			7,461
General and administrative expenses	1,794			1,112			119			3,025
Bad debts	217			89			—			306
Total	6,620			4,053			119			10,792
Adjusted EBITDA	1,905			2,209			(119		)	3,995
Equity-based compensation	—			—			(26,394		)	(26,394		)
Interest expense	—			—			(972		)	(972		)
Depreciation and amortization	(238		)	(112		)	—			(350		)
Taxes	—			—			(154		)	(154		)
Net income (loss)	$	1,667		$	2,097		$	(27,639	)	$	(23,875	)
At June 30, 2018:
Total Assets	$	12,824		$	6,147		$	13,045		$	32,016



	Corporate Channel			Franchise Channel			Other			Total
Six Months Ended June 30, 2019:
Revenues:
Commissions and fees	$	22,627		$	4,306		$	—		$	26,933
Franchise revenues	—			15,303			—			15,303
Interest income	—			283			—			283
Total	22,627			19,892			—			42,519
Operating expenses:
Employee compensation and benefits, excluding equity-based compensation	11,039			7,795			—			18,834
General and administrative expenses	3,980			3,162			1,489			8,631
Bad debts	516			367			—			883
Total	15,535			11,324			1,489			28,348
Adjusted EBITDA	7,092			8,568			(1,489		)	14,171
Equity-based compensation	—			—			(735		)	(735		)
Interest expense	—			—			(1,252		)	(1,252		)
Depreciation and amortization	(473		)	(402		)	—			(875		)
Taxes	—			—			(1,174		)	(1,174		)
Net income (loss)	$	6,619		$	8,166		$	(4,650	)	$	10,135
At June 30, 2019:
Total Assets	$	7,018		$	13,165		$	17,909		$	38,092



	Corporate Channel			Franchise Channel			Other			Total
Six Months Ended June 30, 2018:
Revenues:
Commissions and fees	$	16,381		$	1,931		$	—		$	18,312
Franchise revenues	—			10,880			—			10,880
Interest income	—			185			—			185
Total	16,381			12,996			—			29,377
Operating expenses:
Employee compensation and benefits, excluding equity-based compensation	8,653			5,643			—			14,296
General and administrative expenses	3,422			1,857			120			5,399
Bad debts	423			163			—			586
Total	12,498			7,663			120			20,281
Adjusted EBITDA	3,883			5,333			(120		)	9,096
Equity-based compensation	—			—			(26,394		)	(26,394		)
Interest expense	—			—			(1,968		)	(1,968		)
Depreciation and amortization	(474		)	(213		)	—			(687		)
Taxes	—			—			(154		)	(154		)
Net income (loss)	$	3,409		$	5,120		$	(28,636	)	$	(20,107	)
At June 30, 2018:
Total Assets	$	12,824		$	6,147		$	13,045		$	32,016

Organization - Narrative (Details) shares in Thousands			3 Months Ended		6 Months Ended
Organization - Narrative (Details) shares in Thousands	May 02, 2018	May 01, 2018 $ / shares shares	Jun. 30, 2019 location franchise	Jun. 30, 2018 location franchise	Jun. 30, 2019 location franchise	Jun. 30, 2018 location franchise
Subsidiary, Sale of Stock [Line Items]
Corporate-owned locations \| location			7	7	7	7
Franchise locations sold			57	55
Operating franchise locations			535	385	535	385
Franchises purchased					0	0
Initial Public Offering \| Class A Common Stock
Subsidiary, Sale of Stock [Line Items]
Shares issued (in shares) \| shares		9,810
Share price (in dollars per share) \| $ / shares		$ 10.00
Over-Allotment Option \| Class A Common Stock
Subsidiary, Sale of Stock [Line Items]
Shares issued (in shares) \| shares		1,280
Goosehead Insurance, Inc. \| Goosehead Financial, LLC
Subsidiary, Sale of Stock [Line Items]
Ownership interest	37.30%
Pre-IPO LLC Members \| Goosehead Financial, LLC
Subsidiary, Sale of Stock [Line Items]
Ownership interest	62.70%

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Accounting Policies [Abstract]
Restricted cash	$ 579	$ 616
Future minimum operating lease commitments	$ 23,251

Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Cash and cash equivalents	$ 8,427	$ 18,635	$ 18,938
Restricted cash	579		616
Cash and cash equivalents, and restricted cash	$ 9,006	$ 19,011	$ 19,554	$ 5,366

Franchise Fees Receivable - Balance of Franchise Fees Receivable (Details) - Franchise Fees Receivable - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Franchise fees receivable	$ 4,595	$ 3,906
Less: Unamortized discount	(1,635)	(1,381)
Less: Allowance for uncollectible franchise fees	(533)	(455)	$ (454)	$ (336)
Total franchise fees receivable	$ 2,427	$ 2,070

Franchise Fees Receivable - Roll-Forward of Allowance (Details) - Franchise Fees Receivable - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 455	$ 336
Charges to bad debts	367	163
Write offs	(289)	(45)
Ending balance	$ 533	$ 454

Allowance for Uncollectible Agency Fees - Roll-Forward of Allowance (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Bad debt expense	$ 482	$ 306	$ 883	$ 586
Agency Fees
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance			242	183
Bad debt expense			516	423
Write offs			(472)	(383)
Ending balance	$ 286	$ 223	$ 286	$ 223

Property and equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 12,658	$ 11,024
Less accumulated depreciation	(4,241)	(3,449)
Property and equipment, net	8,417	7,575
Furniture & fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,605	2,233
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,209	1,023
Network equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	252	252
Phone system
Property, Plant and Equipment [Line Items]
Property and equipment, gross	857	824
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 7,735	$ 6,692

Note Payable - Narrative (Details)		3 Months Ended	6 Months Ended
Note Payable - Narrative (Details)	Aug. 03, 2018 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Aug. 02, 2018 USD ($)
Debt Instrument [Line Items]
Leverage ratio		1.50	1.50
Aggregate principal amount		$ 38,000,000	$ 38,000,000
Line of Credit
Debt Instrument [Line Items]
Letter of credit		2,600,000	2,600,000
Line of Credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing availability	$ 13,000,000.0			$ 3,000,000.0
Additional commitments	50,000,000.0
Revolver balance		10,000,000.0	10,000,000.0
Remaining borrowing availability		417,000	417,000
Interest expense		117,000	239,000
Secured Debt
Debt Instrument [Line Items]
Principal amount of debt	$ 40,000,000.0			$ 50,000,000.0
Aggregate principal amount		38,000,000.0	38,000,000.0
Quarterly payments, next twelve months			750,000
Quarterly payments, last twelve months			1,250,000
Debt issuance costs		$ 446,000	$ 446,000
Amortization period			3 years
LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate			2.00%
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 - Leverage (Details)		6 Months Ended
Note Payable - Leverage (Details)	Aug. 03, 2018	Jun. 30, 2019
Debt Instrument [Line Items]
Leverage ratio		1.50
LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		2.00%
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%

Note Payable - Schedule of Maturities of Note Payable (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Debt Disclosure [Abstract]
2019	$ 1,500
2020	4,000
2021	32,500
Total	$ 38,000

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 447	$ 405	$ 893	$ 810
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2019	917		917
2020	2,575		2,575
2021	2,793		2,793
2022	2,762		2,762
2023	2,578		2,578
2024-2029	11,626		11,626
Total	$ 23,251		$ 23,251

Income Taxes (Details) shares in Thousands	3 Months Ended	6 Months Ended
Income Taxes (Details) shares in Thousands	Jun. 30, 2019 USD ($) shares	Jun. 30, 2019 USD ($) shares
Income Tax Contingency [Line Items]
Uncertain tax positions	$ 0	$ 0
Redemption of LLC Units (in shares) \| shares	488	1,211
Tax Receivable Agreement
Income Tax Contingency [Line Items]
Percentage due to related parties		85.00%
Tax Receivable Agreement \| Pre-IPO LLC Members
Income Tax Contingency [Line Items]
Percentage due to related parties		85.00%
Due to related parties	$ 10,800,000	$ 10,800,000
Due to related parties, current	$ 11,000	$ 11,000
LLC Units
Income Tax Contingency [Line Items]
Redemption of LLC Units (in shares) \| shares	488	1,211

Income Taxes Schedule of Reconciliation of Income Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income before taxes	$ 3,247	$ (23,721)	$ 11,309	$ (19,953)
Income taxes at U.S. federal statutory rate	681	(1,908)	2,374	(1,908)
Tax on income not subject to entity level federal income tax	(365)		(1,423)
Meals & Entertainment	17		25
Non-deductible stock compensation costs	11		11
State income tax, net of federal benefit	64		167
Other	1		(1)
Income Tax Expense	430	154	1,174	154
Less: income prior to the Reorganization Transactions		(621)		(4,389)
Less: income attributable to non-controlling interests		(15,262)		(15,262)
(Loss) Income attributable to Goosehead Insurance, Inc. before taxes		(9,080)		(9,080)
State and local income taxes, net of federal benefit		11		11
Permanent differences		2,051		2,051
Income tax expense	392	$ 154	1,073	$ 154
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Excess Compensation, Amount	$ 21		$ 21

Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Investment in flow-through entity	$ 12,498	$ 1,958
Net deferred tax asset (liability)	$ 12,498	$ 1,958

Stockholders' Equity - Narrative (Details) shares in Thousands, $ in Thousands				2 Months Ended	3 Months Ended		6 Months Ended
	Jun. 30, 2019 vote shares	Mar. 18, 2019 shares	May 01, 2018	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) vote shares	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) vote shares	Jun. 30, 2018 USD ($)	Dec. 31, 2018 shares
Class of Stock [Line Items]
Weighted Average General Partnership Units Outstanding	36,288	36,285
Document Period End Date							Jun. 30, 2019
Redemption of LLC Units (in shares)					488		1,211
Ownership interest held by non-controlling interest holders	58.60%				58.60%		58.60%
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders \| $				$ (745)
Class A Common Stock
Class of Stock [Line Items]
Weighted Average General Partnership Units Outstanding		14,421
Common stock shares outstanding (in shares)	15,013				15,013		15,013		13,800
Vote per share \| vote	1				1		1
Redemption of LLC Units (in shares)					488		1,211
Class B Common Stock
Class of Stock [Line Items]
Weighted Average General Partnership Units Outstanding		21,864
Common stock shares outstanding (in shares)	21,275				21,275		21,275		22,486
Vote per share \| vote	1				1		1
Redemption of LLC Units (in shares)					488		1,211
LLC Units
Class of Stock [Line Items]
Distributions \| $					$ 4,500	$ 2,400	$ 4,900	$ 2,000
Conversion ratio			1
Redemption of LLC Units (in shares)					488		1,211
Pre-IPO LLC Members \| LLC Units
Class of Stock [Line Items]
Distributions \| $					$ 2,700		$ 3,000
Weighted Average
Class of Stock [Line Items]
Ownership interest held by non-controlling interest holders	59.00%			59.90%	59.00%	59.90%	59.00%	59.90%
Parent
Class of Stock [Line Items]
Weighted Average General Partnership Units Outstanding	15,013
Misclassification of distributions to non-controlling interest
Class of Stock [Line Items]
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders \| $				$ (745)
Consolidation, Eliminations \| Goosehead Insurance, Inc. \| LLC Units
Class of Stock [Line Items]
Distributions \| $					$ 1,800		$ 2,000	$ 340

Stockholders' Equity - Pro Forma Ownership Interest (Details) - shares shares in Thousands	Jun. 30, 2019	Mar. 18, 2019
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Pro forma number of LLC Units outstanding (in shares)	36,288	36,285
Ownership interest held by non-controlling interest holders	58.60%
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)	15,013
Non-controlling interest
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Pro forma number of LLC Units outstanding (in shares)	21,275
Goosehead Financial, LLC
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Ownership interest held by Goosehead Insurance, Inc.	41.40%

Stockholders' Equity - Pro Forma Basic EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Pro forma earnings per share:
Income before taxes	$ 3,247	$ (23,721)	$ 11,309	$ (19,953)
Income (Loss) Before Income Taxes, Attributable To Noncontrolling Interest	1,952	(14,641)	6,861	(10,873)
Net Income (Loss) Before Income Taxes, Attributable To Parent	1,295	(9,080)	4,448	(9,080)
Less: income tax expense attributable to GSHD	392	154	1,073	154
Net income (loss) attributable to Goosehead Insurance, Inc.	$ 903	$ (9,234)	$ 3,375	$ (9,234)
Weighted average shares of Class A common stock outstanding - basic (in shares)	14,876	13,533	14,545	13,533
Effect of dilutive securities (in shares)	1,189	0	1,140	0
Weighted average shares of Class A common stock outstanding - diluted (in shares)	16,065	13,533	15,685	13,533
Earnings per share of Class A common stock - basic (in dollars per share)	$ 0.06	$ (0.68)	$ 0.23	$ (0.68)
Earnings per share of Class A common stock - diluted (in dollars per share)	$ 0.06	$ (0.68)	$ 0.22	$ (0.68)
Class A Common Stock
Pro forma earnings per share:
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount				1,650

Equity-Based Compensation - Schedule of Equity-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 368	$ 26,394	$ 735	$ 26,394
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	368	260	735	260
Common Class B
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 0	$ 26,134	$ 0	$ 26,134

Dividends (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands				3 Months Ended		6 Months Ended
	Jun. 30, 2019	Mar. 18, 2019	Mar. 07, 2019	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Dividends Payable [Line Items]
Dividends		$ 15,000
Dividends declared per share (in dollars per share)				$ 0	$ 0	$ 0.41	$ 0
LLC Units held (in shares)	36,288	36,285
LLC Units
Dividends Payable [Line Items]
Dividends			$ 15,000
Class A Common Stock
Dividends Payable [Line Items]
Dividends		$ 5,962
Dividends declared per share (in dollars per share)		$ 0.41
LLC Units held (in shares)		14,421
Class B Common Stock
Dividends Payable [Line Items]
Dividends		$ 9,038
LLC Units held (in shares)		21,864

Segment Information - Schedule of Segment Information (Details) $ in Thousands	2 Months Ended	3 Months Ended				4 Months Ended	6 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	May 01, 2018 USD ($)	Jun. 30, 2019 USD ($) segment	Jun. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)
Segment Reporting [Abstract]
Number of reportable segments \| segment							2
Revenues:
Revenues		$ 19,386		$ 14,787			$ 42,519	$ 29,377
Operating Expenses:
Employee compensation and benefits, excluding equity-based compensation		10,010		7,461			18,834	14,296
General and administrative expenses		4,201		3,025			8,631	5,399
Bad debts		482		306			883	586
Total operating expenses		14,693		10,792			28,348	20,281
Adjusted EBITDA		4,693		3,995			14,171	9,096
Equity-based compensation		(368)		(26,394)			(735)	(26,394)
Interest expense		(626)		(972)			(1,252)	(1,968)
Depreciation and amortization		(452)		(350)			(875)	(687)
Taxes		(430)		(154)			(1,174)	(154)
Net income (loss)	$ 1,517	2,817	$ 7,318	(23,875)	$ 3,768	$ 621	10,135	(20,107)
Total Assets	32,016	38,092		32,016			38,092	32,016	$ 34,798
Operating Segments \| Corporate Channel
Revenues:
Revenues		10,672		8,525			22,627	16,381
Operating Expenses:
Employee compensation and benefits, excluding equity-based compensation		5,972		4,609			11,039	8,653
General and administrative expenses		2,078		1,794			3,980	3,422
Bad debts		275		217			516	423
Total operating expenses		8,325		6,620			15,535	12,498
Adjusted EBITDA		2,347		1,905			7,092	3,883
Equity-based compensation		0		0			0	0
Interest expense		0		0			0	0
Depreciation and amortization		(234)		(238)			(473)	(474)
Taxes		0		0			0	0
Net income (loss)		2,113		1,667			6,619	3,409
Total Assets	12,824	7,018		12,824			7,018	12,824
Operating Segments \| Franchise Channel
Revenues:
Revenues		8,714		6,262			19,892	12,996
Operating Expenses:
Employee compensation and benefits, excluding equity-based compensation		4,038		2,852			7,795	5,643
General and administrative expenses		1,531		1,112			3,162	1,857
Bad debts		207		89			367	163
Total operating expenses		5,776		4,053			11,324	7,663
Adjusted EBITDA		2,938		2,209			8,568	5,333
Equity-based compensation		0		0			0	0
Interest expense		0		0			0	0
Depreciation and amortization		(218)		(112)			(402)	(213)
Taxes		0		0			0	0
Net income (loss)		2,720		2,097			8,166	5,120
Total Assets	6,147	13,165		6,147			13,165	6,147
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		592		119			1,489	120
Bad debts		0		0			0	0
Total operating expenses		592		119			1,489	120
Adjusted EBITDA		(592)		(119)			(1,489)	(120)
Equity-based compensation		(368)		(26,394)			(735)	(26,394)
Interest expense		(626)		(972)			(1,252)	(1,968)
Depreciation and amortization		0		0			0	0
Taxes		(430)		(154)			(1,174)	(154)
Net income (loss)		(2,016)		(27,639)			(4,650)	(28,636)
Total Assets	$ 13,045	17,909		13,045			17,909	13,045
Commissions and agency fees
Revenues:
Revenues		10,763		8,716			26,933	18,312
Commissions and agency fees \| Operating Segments \| Corporate Channel
Revenues:
Revenues		10,672		8,525			22,627	16,381
Commissions and agency fees \| Operating Segments \| Franchise Channel
Revenues:
Revenues		91		191			4,306	1,931
Commissions and agency fees \| Other
Revenues:
Revenues		0		0			0	0
Franchise revenues
Revenues:
Revenues		8,475		5,969			15,303	10,880
Franchise revenues \| Operating Segments \| Corporate Channel
Revenues:
Revenues		0		0			0	0
Franchise revenues \| Operating Segments \| Franchise Channel
Revenues:
Revenues		8,475		5,969			15,303	10,880
Franchise revenues \| Other
Revenues:
Revenues		0		0			0	0
Interest income
Revenues:
Revenues		148		102			283	185
Interest income \| Operating Segments \| Corporate Channel
Revenues:
Revenues		0		0			0	0
Interest income \| Operating Segments \| Franchise Channel
Revenues:
Revenues		148		102			283	185
Interest income \| Other
Revenues:
Revenues		$ 0		$ 0			$ 0	$ 0