10-K: Goosehead Insurance Reports Strong 2025 Growth, Revenue Up 16%

Goosehead Insurance, Inc. announced a 16% increase in total revenue to $365.3 million and a 17% rise in Total Written Premium to $4.4 billion for the fiscal year ended December 31, 2025, despite a decrease in net income.

Summary

• Total revenue increased 16% to $365.3 million for the year ended December 31, 2025, up from $314.5 million in 2024.
• Core Revenues (non-GAAP) grew 16% to $317.9 million in 2025.
• Total Written Premiums Placed increased 17% to $4.4 billion in 2025, up from $3.8 billion in 2024.
• Net income decreased by $4.7 million from 2024 to $44.5 million in 2025, representing 12% of total revenues.
• Adjusted EBITDA (non-GAAP) increased 14% from 2024 to $113.6 million in 2025, representing 31% of total revenues.
• Basic earnings per share was $1.11 and Adjusted EPS (non-GAAP) was $1.86 for the year ended December 31, 2025.
• Policies in Force increased 14% from December 31, 2024, to 1.9 million at December 31, 2025.
• Corporate sales headcount increased 17% from December 31, 2024, to 489 agents at December 31, 2025.
• Operating franchises decreased 9% from December 31, 2024, to 1,009 locations at December 31, 2025.
• Total franchise agents increased 1% from December 31, 2024, to 2,113 at December 31, 2025.
• The Net Promoter Score (NPS) decreased to 77 as of December 31, 2025, from 89 at December 31, 2024.
• Client Retention increased to 85% at December 31, 2025, compared to 84% at December 31, 2024.
• Premium retention rate was 90% in 2025, a decrease from 98% in 2024.
• Debt servicing costs for 2025 were $124.4 million, including $100.2 million for refinancing activities, $1.5 million of scheduled paydowns, and $22.7 million of interest.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a generally positive report, highlighting strong top-line growth and operational efficiency, though the decline in net income and Adjusted EPS due to increased debt servicing costs and investments warrants careful monitoring.

Positives

• Total revenue increased 16% to $365.3 million, demonstrating strong top-line growth.
• Total Written Premiums Placed grew 17% to $4.4 billion, serving as a strong leading indicator for future revenue.
• Core Revenue, the most predictable revenue stream, increased 16% to $317.9 million.
• Policies in Force expanded by 14% to 1.9 million, indicating a growing client base.
• Client Retention improved to 85%, reflecting effective service and client loyalty.
• Corporate sales headcount increased 17% to 489 agents, supporting future new business generation.
• Corporate sales agents with more than three years of tenure are 2.5x more productive than the industry best practice.
• Franchise sales agents with more than three years of tenure are 2.0x more productive than the industry best practice.
• Service expenses as a percentage of gross commissions were 2.0x lower than the industry best practice in 2025, highlighting operational efficiency.
• Adjusted EBITDA increased 14% to $113.6 million, showing growth in underlying business performance.
• The board of directors extended the share repurchase program, increasing authorization by $180.0 million through May 1, 2027, signaling confidence and commitment to shareholder returns.

Negatives

• Net income decreased by $4.7 million to $44.5 million, a 12% decline from 2024.
• Adjusted EPS decreased by $0.13 to $1.86 for the year ended December 31, 2025.
• The Net Promoter Score (NPS) decreased to 77 in 2025 from 89 in 2024, although it remains above the industry average.
• The premium retention rate decreased to 90% in 2025 from 98% in 2024.
• Operating franchises decreased 9% to 1,009 locations in 2025, indicating some churn in the franchise network.
• Cost Recovery Revenue decreased by 17% to $6.3 million, primarily due to fewer franchises and lower turnover.
• Interest expense increased significantly by $16.5 million (224%) to $23.8 million, driven by an increase in total borrowings outstanding.
• Employee compensation and benefits, excluding equity-based compensation, grew faster than total revenue, contributing to a slight decrease in Adjusted EBITDA Margin from 32% to 31%.

Risks

• An overall decline in economic activity could have a material adverse effect on the financial condition and results of operations.
• Changes in prevailing interest rates or U.S. monetary policies that affect interest rates could adversely affect the ability to generate new business.
• Volatility or declines in premiums or other adverse trends in the insurance industry may seriously undermine profitability.
• Decreases in premiums or commission rates set by Carriers, or actions by Carriers seeking repayment of commissions, could result in revenue decreases or expenses.
• Contingent Commissions are less predictable than standard commissions, and any decrease could adversely affect results of operations.
• Conditions impacting Carriers or other parties with whom the company does business may impact the company.
• Competition in the industry is intense, and inability to compete effectively may lead to client loss and negatively affected financial results.
• Security breaches, cyberattacks, or other similar incidents with respect to information processing systems or facilities may damage reputation and negatively impact client retention and partner relationships.
• Inability to successfully recover from a disaster or other business continuity problem could cause material financial loss, loss of human capital, regulatory actions, reputational harm, or legal liability.
• Failure to effectively apply technology and related tools could adversely affect operating results, client relationships, growth, and compliance programs.
• Damage to reputation could have a material adverse effect on the business.
• Increasing scrutiny and changing expectations from investors, clients, and employees regarding corporate responsibility and stakeholder interest practices may impose additional costs or risks.
• Inability to retain or hire qualified employees, as well as the loss of any executive officers, could negatively impact the ability to retain existing business and generate new business.
• The occurrence of natural or man-made disasters could result in declines in business and increases in claims that could adversely affect financial condition, results of operations, and cash flows.
• Non-compliance with or changes in laws, regulations, or licensing requirements applicable to the company could restrict its ability to conduct business.
• Changes in accounting estimates and assumptions could negatively affect financial position and operating results.
• Deriving a significant portion of commission revenues from a limited number of Carriers, the loss of which would result in additional expense and loss of market share.
• Business may be harmed if relationships with Carriers are lost, good relationships are not maintained, dependence on a limited number of Carriers increases, or new Carrier relationships are not developed.
• The failure by Mark Jones and Robyn Jones to maintain either a minimum voting interest or the ability to elect a majority of the board could trigger a change of control default under the Credit Agreement.
• Additional debt financing may be required in the future, which may not be available or may be available only on unfavorable terms.
• The failure to attract and retain highly qualified Franchisees could compromise the ability to expand the Goosehead network.
• Financial results are affected directly by the operating results of Franchisees and agents, over whom the company does not have direct control.
• Franchisees and agents could take actions that could harm the business.
• Failure to support an expanding franchise system could have a material adverse effect on business, financial condition, or results of operations.
• Franchising activities are subject to a variety of state and federal laws and regulations, and any failure to comply could adversely affect the business.
• The company is subject to certain risks related to litigation filed by or against it, and adverse results may harm business and financial condition.
• Infringement, misappropriation, or other violation of intellectual property and other proprietary rights by third parties could harm the business.
• Failure to obtain, maintain, protect, defend, or enforce intellectual property, or allegations of infringement, could harm reputation, ability to compete, financial condition, and business.
• Improper disclosure of confidential, personal, or proprietary information could result in regulatory scrutiny, legal liability, or reputational harm.
• The company is a holding company and its principal asset is its 67.4% ownership interest in Goosehead Financial, LLC, making it dependent upon distributions from Goosehead Financial, LLC.
• Goosehead Financial, LLC will be required to make distributions that may be substantial.
• Pre-IPO LLC Members own a significant portion of common stock and their interests may be different than other stockholders, and certain statutory provisions are not applicable.
• Future sales, or the possibility of future sales, of a substantial number of Class A common stock could adversely affect the price.
• The company may not be able to successfully maintain effective internal controls over financial reporting.
• Stock price is expected to be volatile, which could cause the value of investment to decline.
• Ability to pay dividends may be limited by holding company structure, contractual restrictions, and regulatory requirements.
• Utilization of artificial intelligence could expose the company to liability or adversely affect its business.
• Changes in tax laws could impact operations and profitability.
• Business is highly concentrated in Texas, California, Florida, and Illinois, making it susceptible to adverse conditions or regulatory changes in these states.
• Results may be adversely affected by changes in the mode of compensation in the insurance industry.

Future Outlook

The company aims to achieve long-term returns for stockholders by establishing itself as the premier national distributor of personal lines insurance products. This goal will be pursued by continuing to expand recruiting in corporate sales, achieving national penetration of Franchisees, developing innovative ways to drive agent productivity, maximizing effectiveness in managing renewal business through service centers, and making continued investments in technology to drive efficiencies and new go-to-market motions, including enterprise sales and partnerships.

Management Comments

• We are a rapidly growing independent insurance agency, reinventing the traditional approach to distributing personal lines policies throughout the United States.
• Our differentiated business model and innovative technology platform have enabled us to deliver insurance customers a superior experience, as evidenced by our 77 Net Promoter Score, which is 3.5x the 2024 Industry Average according to Qualtrics XM Institute.
• Our 13 corporate-owned sales offices and 489 corporate sales agents serve as the blueprint for what is possible in the Goosehead model, and our corporate agents provide critical training and support to help the franchise agents reach their full potential.
• We have proven that this system delivers superior results as demonstrated by agents, who with a few years tenure, are 2.5x more productive than industry best practice according to Reagan Consulting's 2025 Best Practices Study.
• Our goal is to achieve long-term returns for our stockholders by establishing ourselves as the premier national distributor of personal lines insurance products.
• We believe that our agents are already among the most efficient personal lines agents in the industry.
• We've made investments in technology to outrun our competitors, and we will continue to find opportunities to utilize technology to widen the gap between us and any nascent competition.
• Management is responsible for establishing and maintaining adequate internal control over financial reporting and concluded that the Company maintained effective internal control over financial reporting as of December 31, 2025.

Industry Context

StockSavvy.ai notes that Goosehead operates in a highly competitive U.S. personal lines insurance distribution industry, which had a market size of approximately $533 billion in 2024. The industry is characterized by independent agencies (39% market share), captive agencies (35%), and direct distribution (25%). Goosehead's focus on technology and agent productivity, coupled with its independent agency model, positions it to capitalize on the market's preference for agents while addressing the inefficiencies of traditional models. The company's high NPS and client retention rates differentiate it from competitors, especially against the backdrop of an aging industry workforce and increasing digital disruption from Insurtechs. The company's ability to provide profitable growth without complexity to carriers also strengthens its position in a market seeking efficiency.

Comparison to Industry Standards

• Goosehead's 2025 Net Promoter Score (NPS) of 77 is 3.5x the 2024 industry average, according to Qualtrics XM Institute, indicating superior client satisfaction.
• Corporate sales agents with more than three years of tenure averaged 2.5x as much New Business Production per Agent in 2025 as the industry best practice, according to Reagan Consulting's 2025 Best Practices Study.
• Franchise sales agents with more than three years of tenure averaged 2.0x as much New Business Production per Agent (Franchise) in 2025 as the industry best practice, according to Reagan Consulting's 2025 Best Practices Study.
• Service expenses as a percentage of gross commissions were 2.0x lower than the industry best practice in 2025, according to the 2025 Best Practices Study, demonstrating significant operational efficiency.
• The company's 85% Client Retention rate is believed to be among the highest in the industry, surpassing typical retention rates for independent agencies.
• Goosehead's strategy of recruiting younger, tech-adept agents contrasts with the industry trend where 66% of personal lines agents are over 40 years old (Zippia), positioning it to address future workforce challenges.

Management Changes

Corporate Governance

Legal Proceedings

• Mickey Dollens v. Goosehead Insurance, Inc., C.A. No. 2022-1018-JTL: A verified stockholder class action complaint filed on November 10, 2022, alleging certain corporate governance documents were invalid. A proposed settlement was entered on August 8, 2023, providing non-monetary benefits (revisions to the Stockholder Agreement). The matter is currently stayed, and a potential loss, if any, is not expected to be material.

Related Party Transactions

• In the third quarter of 2025, the Company entered into an agreement to reimburse N5B Capital (a family investment office for Mark and Robyn Jones, Co-Founder and Executive Chairman) for expenses associated with Mr. Jones' executive assistant. The estimated annual expense to the Company under this agreement is less than $140 thousand and is not material to its consolidated financial statements.

Stakeholder Impact

• **Shareholders**: Potential for long-term value creation through continued growth and share repurchases, but the decrease in net income and Adjusted EPS in 2025, alongside increased debt servicing costs, may raise short-term concerns. The concentrated voting power of Pre-IPO LLC Members could influence strategic decisions.
• **Employees**: Continued investment in people and technology, competitive compensation, and professional advancement opportunities, including the hiring of a Chief Human Resources Officer to focus on talent development and culture.
• **Customers**: Benefit from a superior insurance experience, evidenced by a high NPS and client retention, a wide choice of over 200 carriers, and proprietary technology for efficient quoting and service.
• **Franchisees**: Gain access to multiple carriers, centralized service, proven sales processes, and an economic interest in their Book of Business. However, a 9% decrease in operating franchises in 2025 suggests ongoing adjustments in the network.
• **Carriers**: Goosehead provides profitable growth and scale distribution without complexity, leading to special product access and higher commissions.
• **Creditors**: The company has increased its debt outstanding and incurred higher interest expense, but remains in compliance with its debt covenants as of December 31, 2025.

Next Steps

• Continue to expand recruiting efforts in corporate sales, both on college campuses and through targeted internet campaigns.
• Continue national penetration of Franchisees, growing market share within existing states and expanding nationally.
• Continue to develop innovative ways to drive agent productivity through intellectual capital and technology deployment.
• Maximize effectiveness in managing renewal business through service centers to maintain high Client Retention and increase higher-margin Renewal Revenue.
• Continue to invest in technology to drive efficiencies across all business areas and widen the competitive gap.
• The board of directors extended the share repurchase program, increasing authorization by $180.0 million and extending it through May 1, 2027.
• File the definitive Proxy Statement for the 2026 Annual Meeting of Shareholders with the SEC within 120 days of December 31, 2025.

Key Dates

Recommendation

While Goosehead demonstrates strong top-line growth in revenue and Total Written Premium, indicating a robust business model and market penetration, the decline in net income and Adjusted EPS, coupled with significantly increased interest expense from refinancing activities, suggests a period of investment and potentially higher leverage. The decrease in operating franchises also warrants attention. The company's competitive advantages in technology and agent productivity are clear, but the short-term financial performance indicates a 'hold' position until the impact of these investments and debt structure on future profitability becomes clearer and more consistent.

Keywords

Insurance Brokerage, Personal Lines Insurance, Franchise Model, SEC Filing, 10-K, Financial Performance, Revenue Growth, Total Written Premium, Client Retention, Net Promoter Score, Corporate Governance, Risk Management, Financial Analysis, GSHD, Goosehead Insurance, Insurance Technology, Insurtech, Commissions, Royalty Fees, Debt, Share Repurchase