Goosehead Insurance continued scaling its operations in Q2 2025 with a 53% year-over-year increase in corporate agent headcount and a 5% rise in franchise producers, contributing to $1.2 billion in written premiums and $94.0 million in total revenue, both up 18% and 20%, respectively.
The company reported net income of $8.3 million for the quarter, compared to $10.9 million in the same period last year. Earnings per share decreased to $0.20 from $0.25. Adjusted earnings per share, excluding equity-based compensation and impairment expense, rose 14% to $0.49.
Net income margin was 9%, while adjusted EBITDA reached $29.2 million, up from $24.7 million. Adjusted EBITDA margin declined to 31%, down one percentage point from the prior year.
Core revenue, excluding contingent commissions, initial franchise fees, interest income, and other franchise revenues, rose 18% to $86.8 million. Total policies in force increased by 13% year over year to approximately 1.79 million, and client retention remained at 84%.
Corporate agent headcount rose to 479, and the total number of franchise producers reached 2,085. New business and renewal commissions, agency fees, and royalty fees all contributed to the growth in core revenue. Goosehead also reported a $4 million recovery in renewal commission and royalty fees from a carrier partner that increased its commission rate on existing business, which is expected to contribute an additional $1.5 million to second-half revenue.
Total operating expenses rose to $78.4 million from $62.7 million in Q2 2024. Excluding equity-based compensation, depreciation, amortization, and impairment, operating expenses were $64.9 million, up from $53.4 million.
Employee compensation and benefits, excluding equity-based compensation, increased to $44.4 million. General and administrative expenses, excluding impairment, totaled $20.0 million. Impairment charges of $4.7 million were recorded due to plans to exit or sublease three office leases.
Goosehead reported $92.4 million in cash and cash equivalents as of June 30, with a $75 million unused line of credit. The outstanding term note payable was $299.3 million. In July, the company repriced its term loan B, reducing the interest rate by 50 basis points to SOFR plus 3%.
Goosehead repurchased 6,000 shares during the quarter at an average price of $94.51. The company reported $99.5 million remaining under its repurchase authorization.
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