Form 8-K - Current report

______________________________________________________________________________________________________

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

_____________________________________________________________________________________________________

FORM 8-K

______________________________________________________________________________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): July 24, 2024

______________________________________________________________________________________________________

Goosehead Insurance, Inc.

(Exact Name of Registrant as Specified in Charter)

______________________________________________________________________________________________________

Delaware

001-38466

82-3886022

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(I.R.S. Employer

Identification No.)

1500 Solana Boulevard, Ste. 4500

Westlake, Texas 76262

(Address of Principal Executive Offices, and Zip Code)

214-838-5500

Registrant’s Telephone Number, Including Area Code

Not applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):


☐			Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, par value $.01 per share	GSHD	NASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On July 24, 2024 Goosehead Insurance, Inc. issued a press release announcing its financial results for the quarter ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits


Exhibit No.						Description

99.1						Press Release issued by Goosehead Insurance, Inc. dated July 24, 2024 (furnished pursuant to Item 2.02)
104						Cover Page Interactive Data File (Formatted as Inline XBRL)

Date: July 24, 2024

EXHIBIT INDEX


No.									Description

99.1									Press Release issued by Goosehead Insurance, Inc. on July 24, 2024

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


						GOOSEHEAD INSURANCE, INC.



			By:			/s/ Mark K. Miller
						Mark K. Miller President and Chief Executive Officer

GOOSEHEAD INSURANCE, INC. ANNOUNCES SECOND QUARTER 2024 RESULTS

– Total Revenue Increased 13% and Core Revenue* Grew 20% over the Prior-Year Period –

– Total Written Premium increased 30% to $999 million over the Prior-Year Period –

–Net Income of $10.9 million versus Net Income of $7.2 million a year ago –

– Adjusted EBITDA* of $24.7 million versus $23.1 million in the Prior-Year Period –

– Repurchased 1.045 million shares at average share price of $60.46 –

WESTLAKE, TEXAS – July 24, 2024 - Goosehead Insurance, Inc. (“Goosehead” or the “Company”) (NASDAQ: GSHD), a rapidly growing independent personal lines insurance agency, today announced results for the second quarter ended June 30, 2024.

Second Quarter 2024 Highlights

•Total Revenues grew 13% over the prior-year period to $78.1 million in the second quarter of 2024

•Second quarter Core Revenues* of $73.4 million increased 20% over the prior-year period

•Second quarter net income of $10.9 million improved from net income of $7.2 million a year ago.

•EPS of $0.25 per share increased from $0.15 in the prior-year period, and Adjusted EPS* of $0.43 per share increased 5% over the prior-year period

•Net Income Margin for the second quarter was 14%

•Adjusted EBITDA* of $24.7 million increased from $23.1 million in the prior-year period

•Adjusted EBITDA Margin* remained flat versus the prior-year period at 32%

•Total Written Premiums placed for the second quarter increased 30% over the prior-year period to $998.9 million

•Policies in Force increased 11% from the prior-year period to approximately 1,588,000

*Core Revenue, Adjusted EPS, Adjusted EBITDA, and Adjusted EBITDA Margin are non-GAAP measures. Reconciliations of Core Revenue to total revenues, Adjusted EPS to basic earnings per share and Adjusted EBITDA to net income, the most directly comparable financial measures presented in accordance with GAAP, are set forth in the reconciliation table accompanying this release.

“Our excellent second quarter 2024 results reinforce our return to an accelerating profitable growth phase as total revenue was up 13%, core revenue grew 20%, premiums increased 30% and a significant number of new high-quality producers were added to both corporate and franchise networks during the quarter”, stated Mark Miller, President and CEO. “We are particularly pleased that new business productivity continues to trend well despite continued headwinds from product availability and housing. New business productivity per franchise increased 54% in the quarter, representing the 6th consecutive quarter of accelerating growth.

Importantly, new business gains in the franchise network today will have more meaningful impact on revenue growth in 2025 as current new business converts to renewal revenue and we retain a larger portion of the economics. We were also very excited to repurchase over $63 million worth of Goosehead Class A shares since last quarter at what we view as highly attractive levels. Our strong balance sheet with conservative leverage, and our growing cash flow generation gives us multiple options to increase shareholder value. We believe our operations have never been stronger, and I am excited for our unmatched runway for substantial future growth in revenue and earnings. I want to thank our employees, franchises, and carrier partners for their tireless efforts that help us achieve these exceptional results.”

Second Quarter 2024 Results

For the second quarter of 2024, revenues were $78.1 million, an increase of 13% compared to the corresponding period in 2023. Core Revenues, a non-GAAP measure which excludes contingent commissions, initial franchise fees, interest income, and other income, were $73.4 million, a 20% increase from $61.0 million in the prior-year period. Core Revenues are the most reliable revenue stream for the Company, consisting of New Business Commissions, Agency Fees, New Business Royalty Fees, Renewal Commissions, and Renewal Royalty Fees. Core Revenue growth was driven by improved productivity, strong client retention of 84%, and rising premium rates. The Company grew total written premiums, which we consider to be the leading indicator of future revenue growth, by 30% in the second quarter.

Total operating expenses, excluding equity-based compensation, depreciation and amortization, and impairment expenses for the second quarter of 2024 were $53.4 million, up 16% from $46.2 million in the prior-year period. The increase from the prior period was due to increased employee compensation and benefits expenses related to investments in corporate producers, partnership, technology, and service functions. Equity-based compensation increased to $6.6 million for the period, compared to $5.9 million a year ago. Bad debt expense of $0.7 million decreased from $0.9 million a year ago. The increase in General and administrative expenses, excluding impairment, is due to investments in technology and systems to drive growth and continue to improve the client experience.

Net income in the second quarter of 2024 was $10.9 million versus net income of $7.2 million a year ago. Earnings per share and Net Income Margin for the second quarter of 2024 were $0.25 and 14%, respectively. Adjusted EPS for the second quarter of 2024, which excludes equity-based compensation and impairment expense, was $0.43 per share. Total Adjusted EBITDA

was $24.7 million for the second quarter of 2024 compared to $23.1 million in the prior-year period. Adjusted EBITDA Margin of 32% remained flat compared to the prior-year period.

Liquidity and Capital Resources

As of June 30, 2024, the Company had cash and cash equivalents of $23.6 million. We had an unused line of credit of $74.8 million as of June 30, 2024. Total outstanding term note payable balance was $98.1 million as of June 30, 2024. During the quarter ended June 30, 2024, the Company repurchased and retired 1.045 million shares at an average share price of $60.46. As of June 30, 2024, $36.8 million remains available under the share repurchase authorization.

2024 Outlook

The Company is reiterating its guidance for full year 2024 as follows:

•Total written premiums placed for 2024 are expected to be between $3.62 billion and $3.82 billion, representing growth of 22% on the low end of the range to 29% on the high end of the range.

•Total revenues for 2024 are expected to be between $290 million and $310 million, representing growth of 11% on the low end of the range to 19% on the high end of the range.

•Adjusted EBITDA Margin is expected to expand for the full year 2024.

Conference Call Information

Goosehead will host a conference call and webcast today at 4:30 PM ET to discuss these results.

To access the call by phone, participants should go to this link (registration link), and you will be provided with the dial in details.

In addition, a live webcast of the conference call will also be available on Goosehead’s investor relations website at http://ir.goosehead.com.

A webcast replay of the call will be available at http://ir.goosehead.com for one year following the call.

About Goosehead

Goosehead (NASDAQ: GSHD) is a rapidly growing and innovative independent personal lines insurance agency that distributes its products and services through corporate and franchise

locations throughout the United States. Goosehead was founded on the premise that the consumer should be at the center of our universe and that everything we do should be directed at providing extraordinary value by offering broad product choice and a world-class service experience. Goosehead represents over 150 insurance companies that underwrite personal and commercial lines. For more information, please visit goosehead.com or goosehead.com/become-a-franchisee.

Forward-Looking Statements

This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which represent Goosehead’s expectations or beliefs concerning future events. Forward-looking statements are statements other than historical facts and may include statements that address future operating, financial or business performance or Goosehead’s strategies or expectations. In some cases, you can identify these statements by forward-looking words such as “may”, “might”, “will”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, “outlook” or “continue”, or the negative of these terms or other comparable terminology. Forward-looking statements are based on management’s current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements.

Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, conditions impacting insurance carriers or other parties with which Goosehead does business, the loss of one or more key executives or an inability to attract and retain qualified personnel and the failure to attract and retain highly qualified franchisees. These risks and uncertainties also include, but are not limited to, those described under the captions “1A. Risk Factors” in Goosehead’s Annual Report on Form 10-K for the year ended December 31, 2023 and in Goosehead’s other filings with the SEC, which are available free of charge on the Securities Exchange Commission's website at: www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All forward-looking statements and all subsequent written and oral forward-looking statements attributable to Goosehead or to persons acting on behalf of Goosehead are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and Goosehead does not undertake any obligation to update them in

light of new information, future developments or otherwise, except as may be required under applicable law.

Contacts

Investor Contact:

Dan Farrell

Goosehead Insurance - VP Capital Markets

Phone: (214) 838-5290

Email: dan.farrell@goosehead.com; IR@goosehead.com;

PR Contact:

Mission North for Goosehead Insurance

Email: goosehead@missionnorth.com; PR@goosehead.com

Goosehead Insurance, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenues:
Commissions and agency fees	$	31,619	$	31,173	$	57,840	$	56,657
Franchise revenues	46,225		37,687		84,214		69,761
Interest income	244		417		494		814
Total revenues	78,088		69,277		142,548		127,232
Operating Expenses:
Employee compensation and benefits	42,551		37,483		84,681		74,365
General and administrative expenses	16,855		17,332		34,035		33,188
Bad debts	653		900		1,780		2,555
Depreciation and amortization	2,632		2,372		5,200		4,465
Total operating expenses	62,691		58,087		125,696		114,573
Income from operations	15,397		11,190		16,852		12,659
Other Income:

Interest expense	(1,982)		(1,709)		(3,469)		(3,440)
Other income (expense)	441		—		(6,286)		—
Income before taxes	13,856		9,481		7,097		9,219
Tax (benefit) expense	2,981		2,301		(5,587)		2,220
Net income	10,875		7,180		12,684		6,999
Less: net income attributable to non-controlling interests	4,677		3,514		4,672		3,414
Net income attributable to Goosehead Insurance, Inc.	$	6,198	$	3,666	$	8,012	$	3,585
Earnings per share:
Basic	$	0.25	$	0.15	$	0.32	$	0.15
Diluted	$	0.24	$	0.15	$	0.29	$	0.15
Weighted average shares of Class A common stock outstanding
Basic	24,693		23,689		24,890		23,448
Diluted	38,031		24,333		38,031		23,981

Goosehead Insurance, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Revenues:
Core Revenue:
Renewal Commissions(1)	$	20,591		$	18,541		$	36,552		$	34,359
Renewal Royalty Fees(2)	36,828			27,552			65,881			50,304
New Business Commissions(1)	6,682			6,257			12,363			11,774
New Business Royalty Fees(2)	7,169			6,267			13,402			11,909
Agency Fees(1)	2,137			2,404			4,048			4,634
Total Core Revenue	73,407			61,021			132,246			112,980
Cost Recovery Revenue:
Initial Franchise Fees(2)	1,631			3,287			3,875			6,350
Interest Income	244			417			494			814
Total Cost Recovery Revenue	1,875			3,704			4,369			7,164
Ancillary Revenue:
Contingent Commissions(1)	2,209			3,971			4,877			5,890
Other Franchise Revenues(2)	598			581			1,055			1,198
Total Ancillary Revenue	2,807			4,552			5,933			7,088
Total Revenues	78,088			69,277			142,548			127,232
Operating Expenses:
Employee compensation and benefits, excluding equity-based compensation	35,919			31,611			70,692			61,873
General and administrative expenses, excluding impairment	16,855			13,704			33,688			29,560
Bad debts	653			900			1,780			2,555
Total	53,427			46,215			106,160			93,988
Adjusted EBITDA	24,662			23,062			36,388			33,244
Adjusted EBITDA Margin	32		%	33		%	26		%	26		%

Interest expense	(1,982)			(1,709)			(3,469)			(3,440)
Depreciation and amortization	(2,632)			(2,372)			(5,200)			(4,465)
Tax benefit (expense)	(2,981)			(2,301)			5,587			(2,220)
Equity-based compensation	(6,632)			(5,872)			(13,989)			(12,492)
Impairment expense	—			(3,628)			(347)			(3,628)

Other income (expense)	441			—			(6,286)			—
Net Income	$	10,875		$	7,180		$	12,684		$	6,999
Net Income Margin	14		%	10		%	9		%	6		%

(1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in "Commissions and agency fees" as shown on the Condensed Consolidated Statements of Operations within Goosehead’s Form 10-Q for the three and six months ended June 30, 2024 and 2023.

(2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, and Other Franchise Revenues are included in "Franchise revenues" as shown on the Condensed Consolidated Statements of Operations within Goosehead’s Form 10-Q for the three and six months ended June 30, 2024 and 2023.

Goosehead Insurance, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except per share amounts)


	June 30,		December 31,
	2024		2023
Assets
Current Assets:
Cash and cash equivalents	$	23,643	$	41,956
Restricted cash	2,642		2,091

Commissions and agency fees receivable, net	8,820		12,903
Receivable from franchisees, net	11,046		9,720
Prepaid expenses	6,546		7,889

Total current assets	52,697		74,559
Receivable from franchisees, net of current portion	5,994		9,269
Property and equipment, net of accumulated depreciation	27,014		30,316
Right-of-use asset	35,475		38,406
Intangible assets, net of accumulated amortization	21,269		17,266
Deferred income taxes, net	191,275		181,209
Other assets	4,483		3,867
Total assets	$	338,207	$	354,892
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable and accrued expenses	$	16,141	$	16,398
Premiums payable	2,642		2,091

Lease liability	9,174		8,897

Contract liabilities	3,456		4,129
Note payable	10,063		9,375
Liabilities under tax receivable agreement	4,952		—
Total current liabilities	46,428		40,890
Lease liability, net of current portion	52,614		57,382

Note payable, net of current portion	87,028		67,562
Contract liabilities, net of current portion	16,663		22,970
Liabilities under tax receivable agreement, net of current portion	155,207		149,302
Total liabilities	357,940		338,106

Class A common stock, $0.01 par value per share - 300,000 shares authorized, 24,205 shares issued and outstanding as of June 30, 2024, 24,966 shares issued and outstanding as of December 31, 2023	242		250
Class B common stock, $0.01 par value per share - 50,000 shares authorized, 12,748 issued and outstanding as of June 30, 2024, 12,954 shares issued and outstanding as of December 31, 2023	127		130
Additional paid in capital	77,748		103,228
Accumulated deficit	(38,349)		(47,056)
Total stockholders' equity	39,768		56,552
Non-controlling interests	(59,501)		(39,766)
Total equity	(19,733)		16,786
Total liabilities and equity	$	338,207	$	354,892

Goosehead Insurance, Inc.

Reconciliation Non-GAAP Measures to GAAP

This release includes Core Revenue, Cost Recovery Revenue, Ancillary Revenue, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EPS that are not required by, nor presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). The Company refers to these measures as “non-GAAP financial measures.” The Company uses these non-GAAP financial measures when planning, monitoring and evaluating its performance and considers these non-GAAP financial measures to be useful metrics for management and investors to facilitate operating performance comparisons from period to period by excluding potential differences caused by variations in capital structures, tax position, depreciation, amortization and certain other items that the Company believes are not representative of its core business. The Company uses Core Revenue, Cost Recovery Revenue, Ancillary Revenue, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EPS for business planning purposes and in measuring its performance relative to that of its competitors.

These non-GAAP financial measures are defined by the Company as follows:

•"Core Revenue" is a supplemental measure of our performance and includes Renewal Commissions, Renewal Royalty Fees, New Business Commissions, New Business Royalty Fees, and Agency Fees. We believe that Core Revenue is an appropriate measure of operating performance because it summarizes all of our revenues from sales of individual insurance policies.

•"Cost Recovery Revenue" is a supplemental measure of our performance and includes Initial Franchise Fees and Interest Income. We believe that Cost Recovery Revenue is an appropriate measure of operating performance because it summarizes revenues that are viewed by management as cost recovery mechanisms.

•"Ancillary Revenue" is a supplemental measure of our performance and includes Contingent Commissions and Other Income. We believe that Ancillary Revenue is an appropriate measure of operating performance because it summarizes revenues that are ancillary to our core business.

•"Adjusted EBITDA" is a supplemental measure of the Company's performance. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of items that do not relate to business performance. Adjusted EBITDA is defined as

net income (the most directly comparable GAAP measure) 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 Margin" is Adjusted EBITDA as defined above, divided by total revenue excluding other non-operating items. Adjusted EBITDA Margin is helpful in measuring profitability of operations on a consolidated level.

•"Adjusted EPS" is a supplemental measure of our performance, defined as earnings per share (the most directly comparable GAAP measure) before non-recurring or non-operating income and expenses. Adjusted EPS is a useful measure to management because it eliminates the impact of items that do not relate to business performance and helps measure our profitability on a consolidated level.

While the Company believes that these non-GAAP financial measures are useful in evaluating its business, this information should be considered as supplemental in nature and is not meant as a substitute for revenues, net income, or earnings per share, in each case as recognized in accordance with GAAP. In addition, other companies, including companies in the Company’s industry, may calculate such measures differently, which reduces their usefulness as comparative measures.

The following tables show a reconciliation from total revenues to Core Revenue, Cost Recovery Revenue, and Ancillary Revenue (non-GAAP basis) for the three and six months ended June 30, 2024 and 2023 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Total Revenues	$	78,088	$	69,277	$	142,548	$	127,232

Core Revenue:
Renewal Commissions(1)	$	20,591	$	18,541	$	36,552	$	34,359
Renewal Royalty Fees(2)	36,828		27,552		65,881		50,304
New Business Commissions(1)	6,682		6,257		12,363		11,774
New Business Royalty Fees(2)	7,169		6,267		13,402		11,909
Agency Fees(1)	2,137		2,404		4,048		4,634
Total Core Revenue	73,407		61,021		132,246		112,980
Cost Recovery Revenue:
Initial Franchise Fees(2)	1,631		3,287		3,875		6,350
Interest Income	244		417		494		814
Total Cost Recovery Revenue	1,875		3,704		4,369		7,164
Ancillary Revenue:
Contingent Commissions(1)	2,209		3,971		4,877		5,890
Other Franchise Revenues(2)	598		581		1,055		1,198
Total Ancillary Revenue	2,807		4,552		5,933		7,088
Total Revenues	$	78,088	$	69,277	$	142,548	$	127,232

The following tables show a reconciliation from net income to Adjusted EBITDA and Adjusted EBITDA Margin (non-GAAP basis) for the three and six months ended June 30, 2024 and 2023 (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Net Income	$	10,875		$	7,180		$	12,684		$	6,999
Interest expense	1,982			1,709			3,469			3,440
Depreciation and amortization	2,632			2,372			5,200			4,465
Tax (benefit) expense	2,981			2,301			(5,587)			2,220
Equity-based compensation	6,632			5,872			13,989			12,492
Impairment expense	—			3,628			347			3,628

Other (income) expense	(441)			—			6,286			—
Adjusted EBITDA	$	24,661		$	23,062		$	36,388		$	33,244
Net Income Margin(1)	14		%	10		%	9		%	6		%
Adjusted EBITDA Margin(2)	32		%	33		%	26		%	26		%

(1) Net Income Margin is calculated as Net Income divided by Total Revenue ($10,875/$78,088) and ($7,180/$69,277) for the three months ended June 30, 2024 and 2023. Net Income Margin is calculated as Net Income divided by Total Revenue ($12,684/$142,548) and ($6,999/$127,232) for the six months ended June 30, 2024 and 2023.

(2) Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue ($24,661/$78,088), and ($23,062/$69,277) for the three months ended June 30, 2024 and 2023, respectively. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue ($36,388/$142,548), and ($33,244/$127,232) for the six months ended June 30, 2024 and 2023.

The following tables show a reconciliation from basic earnings per share to Adjusted EPS (non-GAAP basis) for the three and six months ended June 30, 2024 and 2023. Note that totals may not sum due to rounding:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Earnings per share - basic (GAAP)	$	0.25	$	0.15	$	0.32	$	0.15
Add: equity-based compensation(1)	0.18		0.16		0.37		0.33
Add: impairment expense(2)	—		0.10		0.01		0.10
Adjusted EPS (non-GAAP)	$	0.43	$	0.41	$	0.70	$	0.58

(1) Calculated as equity-based compensation divided by sum of weighted average Class A and Class B shares [$6.6 million/(24.7 million + 12.8 million)] for the three months ended June 30, 2024 and [$5.9 million/ (23.7 million + 13.9 million)] for the three months ended June 30, 2023. Calculated as equity-based compensation divided by sum of weighted average Class A and Class B shares [$14.0 million/(24.9 million + 12.8 million)] for the six months ended June 30, 2024 and [$12.5 million/ (23.4 million + 14.1 million)] for the six months ended June 30, 2023.

(2) Calculated as impairment expense divided by sum of weighted average Class A and Class B shares [$0.3 million/(24.9 million + 12.8 million)] for the six months ended June 30, 2024. Calculated as impairment expense divided by sum of weighted average Class A and Class B shares [$3.6 million/(23.7 million + 13.9 million)] for the three months ended June 30, 2023. Calculated as impairment expense divided by sum of weighted average Class A and Class B shares [$3.6 million/(23.4 million + 14.1 million)] for the six months ended June 30, 2023. No impairment was recorded for the three months ended June 30, 2024.

Goosehead Insurance, Inc.

Key Performance Indicators


	June 30, 2024			December 31, 2023			June 30, 2023
Corporate sales agents < 1 year tenured	157			135			146
Corporate sales agents > 1 year tenured	156			165			134
Operating franchises < 1 year tenured	89			183			348
Operating franchises > 1 year tenured	1,033			1,043			996
Total Franchise Producers	1,995			1,957			2,069
QTD Corporate Agent Productivity < 1 Year (1)	$	21,338		$	13,789		$	23,664
QTD Corporate Agent Productivity > 1 Year (1)	$	32,146		$	25,738		$	33,323
QTD Franchise Productivity < 1 Year (2)	$	23,401		$	10,975		$	9,606
QTD Franchise Productivity > 1 Year (2)	$	30,433		$	21,103		$	23,348
Policies in Force	1,588,000			1,486,000			1,427,000
Client Retention	84		%	86		%	88		%
Premium Retention	99		%	101		%	103		%
QTD Written Premium (in thousands)	$	998,874		$	756,082		$	767,253
Net Promoter Score ("NPS")	91			92			91

(1) - Corporate Productivity is New Business Production per Agent (Corporate): The New Business Revenue collected related to corporate sales, divided by the average number of full-time corporate sales agents for the same period. This calculation excludes interns, part-time sales agents and partial full-time equivalent sales managers.

(2) - Franchise Productivity is New Business Production per Franchise: The gross commissions paid by Carriers and Agency Fees received related to policies in their first term sold by franchise sales agents divided by the average number of franchises for the same period prior to paying Royalty Fees to the Company.

Cover	Jul. 24, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Jul. 24, 2024
Entity Registrant Name	Goosehead Insurance, Inc.
Entity Incorporation, State or Country Code	DE
Entity File Number	001-38466
Entity Tax Identification Number	82-3886022
Entity Address, Address Line One	1500 Solana Boulevard
Entity Address, Address Line Two	Ste. 4500
Entity Address, City or Town	Westlake
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	76262
City Area Code	214
Local Phone Number	838-5500
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Class A Common Stock, par value $.01 per share
Trading Symbol	GSHD
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0001726978