Goosehead Insurance, Inc. reported a 16% year-over-year rise in third-quarter revenue to $90.4 million, supported by higher written premiums and steady income, as the company continued to invest in expanding its technology and franchise network.
Total written premiums placed for the quarter reached $1.2 billion, up 15% from the same period last year. Core revenue, which excludes contingent commissions, initial franchise fees, and other nonrecurring items, increased 14% to $83.9 million. The company said the growth was driven by higher producer count, client retention of 85%, and a 13% increase in policies in force to approximately 1.85 million.
Net income for the quarter was $12.7 million, slightly higher than the $12.6 million reported a year earlier. Earnings per share remained flat at $0.31, while adjusted earnings per share decreased 8% to $0.46. Adjusted EBITDA rose to $29.7 million from $26.1 million in the prior-year period, while the adjusted EBITDA margin declined to 33%. Net income margin stood at 14%.
Operating expenses increased to $69.2 million from $61.6 million in the prior-year period. Excluding equity-based compensation, depreciation, amortization, and impairment expenses, total operating expenses were $60.7 million, up 17% from $51.9 million a year earlier. Compensation and benefits totaled $48.7 million, primarily due to investment in corporate producers and technology-related functions. General and administrative expenses were $17.1 million compared to $15.2 million in the same period last year.
President and CEO Mark Miller said the company recorded premium growth of 15%, total revenue growth of 16%, and adjusted EBITDA growth of 14% in the quarter.
“We are excited to share we signed an embedded franchise partnership with a top 20 US mortgage lender and servicer,” Miller said. “Additionally, we were pleased with the opportunity to drive shareholder value through $58.7 million of share repurchase in the quarter at a valuation level we found very compelling given our long term growth trajectory.”
Goosehead ended the quarter with $51.6 million in cash and cash equivalents and an unused credit line of $75 million. Its total term note payable balance stood at $299.3 million. As of Sept. 30, $40.8 million remained available under the company’s repurchase authorization.
For full-year 2025, Goosehead projected total written premiums between $4.38 billion and $4.65 billion and total revenues between $350 million and $385 million.
Earlier in the year, the company completed a $300 million term loan B and a $75 million revolving credit facility, carrying interest at SOFR plus 3.50%. Proceeds were used to retire a $93 million term loan, fund a one-time dividend, and support general corporate purposes. Goosehead also announced a $175 million cash distribution and a $5.91 per share special dividend, payable to shareholders in January 2025.
Do you think Goosehead’s investment and share repurchase strategies will help maintain its growth trajectory? Share your thoughts in the comments.
