Goosehead Insurance (GSHD) Q2 2025 earnings summary

Executive summary

• Total revenue for Q2 2025 increased 20% year-over-year to $94 million, with core revenue up 18% to $86.8 million and adjusted EBITDA up 18% to $29.2 million, reflecting strong organic growth and profitability focus.

• Net income declined 24% year-over-year to $8.3 million, representing 9% of total revenues, while adjusted EPS was $0.49, up 14%.

• Expanded distribution network to over 2,500 licensed agents and 200+ carriers, with strategic initiatives in agency staffing, franchise programs, and new office launches.

• Leveraged AI and technology to optimize client experience, reduce service costs, and develop a direct-to-consumer marketplace.

• Entered new strategic partnerships, including Baird & Warner and Fay Servicing, to accelerate enterprise sales and diversify revenue streams.

Financial highlights

• Q2 2025 revenue: $94 million (+20% YoY); core revenue: $86.8 million (+18% YoY); adjusted EBITDA: $29.2 million (+18% YoY, 31% margin).

• Net income for Q2 2025: $8.3 million (down 24% YoY); net income margin: 9%.

• Total written premiums reached $1.2 billion, up 18% year-over-year; franchise premiums up 21%, corporate premiums up 6%.

• Policies in force grew 13% to 1,793,000.

• Cash and cash equivalents: $92.4 million as of June 30, 2025; net cash from operations for six months: $44.4 million (+$13.5 million YoY).

Outlook and guidance

• 2025 total revenue guidance: $350–$385 million (organic growth of 11–22%); written premium guidance: $4.38–$4.65 billion (15–22% growth).

• Management expects continued growth in core revenue and policies in force, supported by increased corporate sales headcount and franchise productivity.

• Margin expected to compress slightly for the full year due to intentional investments in growth and technology, with improvement anticipated in Q4.

• Liquidity sources (cash, working capital, operations, revolving credit) are expected to be sufficient for foreseeable needs.

• Expect client retention and average commission rates to improve in the second half of 2025 and into 2026.