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    GSHD
    Earnings call· Jun 2026(Q2 FY26)

    Goosehead Insurance, Inc. GSHD

    Jul 22, 2026 Source

    Executive summary

    Goosehead Insurance Q2 FY26 — Strong Growth and Leadership Transition

    Goosehead delivered strong Q2 FY26 results, marked by accelerating premium growth and improved client retention, amidst a leadership transition as Mark Miller retires and Mark Jones, Jr. takes over as CEO. The company continues to invest in technology and agent productivity, leveraging a healthier product market to drive market share gains and long-term profitability.

    Highlights

    5

    • Total written premiums grew 14% year-over-year to $1.36 billion, accelerating from Q1.

    • Policies in force grew 15% year-over-year to 2.1 million, accelerating from Q1.

    • Client retention improved sequentially to 86%, representing its highest level since the hard market began.

    • Adjusted EBITDA grew 30% year-over-year to $37.9 million, representing a 33% margin.

    • New business commissions grew 27% year-over-year to $9.6 million, marking consecutive quarters of over 20% growth.

    Concerns

    2

    • Moderate pricing declines in auto insurance (mid-single digits) and generally flat in home insurance.

    • Comp and G&A expenses expected to grow in the high teens to low 20% for the full year, likely exceeding core revenue growth due to investment cycle.

    Guidance & targets

    4
    CategoryTargetConfidence
    Total revenues organic growth
    12% to 19% year-over-year
    high materiality
    High
    Total written premiums organic growth
    12% to 20% year-over-year
    high materiality
    High
    Comp and G&A growth
    high teens to low 20%
    medium materiality
    Medium
    Contingent commissions as % of total written premium
    70 to 100 basis points
    medium materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Franchise Network
    The franchise network is healthier than ever, with producers at an all-time high and average payments to franchisees increasing significantly, enabling reinvestment and reinforcing growth.
    Producers: 2,190Average producers per franchise: 2.4Average monthly payment to franchise: >$28,000Average monthly payment to franchise growth: >35% YoYFranchises producing over $100k gross new business commissions: 70% more YoY
    		————
    Corporate Offices
    Recent corporate office launches across the country are scaling rapidly, averaging nearly 20 agents each and delivering strong new business production, tapping into previously underserved markets.
    New office launches: 5Average agents per new office: nearly 20
    		————
    Enterprise Sales
    Enterprise Sales is growing at a rapid pace, generating approximately $3 million in new business commissions and agency fees in the quarter, and now represents 21% of total new business commissions and agency fees.
    Contribution to total new business commissions and agency fees: 21%
    		$3 million———

    Operational metrics

    26
    Adjusted EBITDA
    $37.9 million30% year-over-year
    Q2 FY26

    Adjusted EBITDA grew 30% year-over-year to $37.9 million, representing a 33% adjusted EBITDA margin.

    Share repurchase authorization remaining
    $144.6 million
    as of Q2 FY26

    We will continue to be opportunistic with the $144.6 million remaining on our existing share repurchase authorization.

    Cash and cash equivalents
    $23.7 million
    end of Q2 FY26

    We ended the quarter with $23.7 million of cash and cash equivalents.

    Total debt outstanding
    $323 million
    end of Q2 FY26

    and $323 million of total debt outstanding.

    Adjusted EBITDA (LTM)
    over $130 millionfrom under $40 million in 2022
    LTM Q2 FY26

    grew adjusted EBITDA from under $40 million in 2022 to over $130 million in our last four quarters

    Total revenue CAGR (since IPO)
    29%
    2018-LTM Q2 FY26

    Since our IPO in 2018, we've grown our total revenue at a 29% Compound Annual Growth Rate

    Adjusted EBITDA CAGR (since IPO)
    34%
    2018-LTM Q2 FY26

    and Adjusted EBITDA at a 34% Compound Annual Growth Rate when comparing full-year 2018 results to the trailing four quarters ended June 30th, 2026.

    Core revenues
    $95.6 million10% YoY
    Q2 FY26

    core revenues grew 10% to $95.6 million over the prior-year period. When adjusting for that year-over-year variance, core revenues grew 16% in the second quarter.

    New business commissions
    $9.6 million27% year-over-year
    Q2 FY26

    New business commissions grew 27% year-over-year to $9.6 million.

    New business royalties
    $9.4 million20% year-over-year
    Q2 FY26

    New business royalties grew 20% year-over-year to $9.4 million.

    Franchise producers
    2,1905% year-over-year and 2% sequentially
    Q2 FY26

    Franchise producers grew 5% year-over-year and 2% sequentially to 2,190 producers.

    Producer hires
    30%year-over-year
    Q2 FY26

    with producer hires increasing 30% year-over-year.

    Same store sales (aggregate)
    22%up 22%
    Q2 FY26

    in aggregate, same store sales is up 22% for this quarter.

    Same store sales (top 50 franchises)
    over 40%up over 40%
    Q2 FY26

    And the top end of the franchise community, the top 50, same store sales was over 40%.

    Market share
    less than 1%
    current

    With less than 1% market share today, more than 99% of our addressable market remains in front of us.

    AI voice assistant handled calls
    20%
    Q2 FY26

    Lily, our AI voice assistant, now handles approximately 20% of our inbound service calls from start to finish, with performance exceeding 30% during certain periods.

    Ancillary revenues (contingent commissions)
    $16.3 million180% year-over-year
    Q2 FY26

    Ancillary revenues, largely comprised of contingent commissions, grew 180% year-over-year to $16.3 million.

    Total revenues (adjusted for Q2 2025 variance)
    26%year-over-year
    Q2 FY26

    When adjusting for that year-over-year variance, total revenues grew 26% in the second quarter.

    Core revenue growth (H1 FY26)
    12%year-over-year
    H1 FY26

    We are encouraged by the 12% year-over-year growth in core revenue we delivered in the first half

    Number of highly productive agencies (>$100k gross new business commissions)
    70% morecompared to prior year
    Q2 FY26

    during the second quarter we had approximately 70% more franchises produce over $100,000 of gross new business commissions and agency fees in a month when compared to the prior year.

    Producers launched from corporate into franchise
    170+
    cumulative

    In total, we have over 60 agencies who launch from corporate, representing more than 170 producers inside those franchises.

    Planet Home embedded franchise ranking
    top 5%
    after 6 months

    placing them near the top 5% of franchises after just 6 months of production.

    Auto pricing decline
    mid-single digits
    current

    in auto, what you're seeing is more like mid-single digits pricing decline.

    Home pricing trend
    generally flat to low single digits up
    current

    Home has been much more durable. It's looking more flat and in some geographies, still up low single digits.

    Class A shares repurchased
    95,000
    Q2 FY26

    repurchased 95,000 Class A shares for a total of $3.9 million.

    Class A shares repurchased
    over 1 million
    YTD Q2 FY26

    repurchased over 1 million Class A shares for a total of $53.7 million.

    Industry KPIs

    4
    MetricValueDetails
    Capital returns$3.9 million (Q2 FY26) / $53.7 million (YTD Q2 FY26)USD
    Retention persistency86%%
    Net premiums written earned$1.36 billionUSD
    Broker specific when present14%%

    Product announcements

    1
    ProductTypeDetails
    Digital Agent 2.0launch

    Deals & partnerships

    1
    Planet HomeEmbedded franchise partnership

    A new development involves seeding highly differentiated corporate sales talent into an embedded franchise, like the partnership with Planet Home, providing natural lead flow and plug-and-play talent.

    Risks & headwinds

    2
    Moderate pricing declines in auto and home insuranceCurrent

    Mid-single digits in auto, generally flat to low single digits up in home

    Mitigation: Contemplated in guidance; company prefers a stable product market for efficiency; new business pricing still higher than renewal book.

    Increased operating expenses due to growth investmentsFull year 2026

    Comp and G&A expected to grow in the high teens to low 20% for the year, likely in excess of core revenue growth

    Mitigation: Investments in new sales talent, technology teams, and service function for platform stability, scalability, and client satisfaction; expected to drive long-term profitability.

    What to watch in Q3 FY26

    5

    Client Retention Trajectory

    next quarter
    Current86%
    Targetcontinued sequential improvement towards 89%

    Why it matters

    Client retention is the most impactful driver of top- and bottom-line performance; continued improvement signals a healthier product market and effective client experience initiatives.

    Client retention, our most impactful driver of top- and bottom-line performance, improved to 86%, representing its highest level since the hard market began. We're encouraged by this continued sequential improvement in client retention rate and see no structural limitation to meeting or exceeding our prior high of 89% in the future.

    Q&A highlights

    5

    How should we think about full-year margins, especially on an ex-contingent basis, given the strong Q2 contingent commission number?

    Management expects no change to underlying expense expectations, with comp and G&A growing high teens to low 20% for the year, likely exceeding core revenue growth due to current investment cycle. Contingent commissions are tracking higher than initially anticipated due to new business growth, profitability, and favorable contracts.

    “Ultimately, from a planning perspective, we look at our expenses largely on a revenue ex-contingent basis. And, you know, previously we mentioned that we expect moderate compression this year driven by the growth investments that we're making. Our guidance around expenses thus remains unchanged.”

    asked by Tommy McJoynt · answered by John Martin

    2 min read6 chapters

    Detailed Narrative

    01

    Leadership Transition

    Mark Miller announced his retirement as CEO at the end of 2026, transitioning the role to Mark Jones, Jr. Miller will remain a member of the Board of Directors, expressing full confidence in Jones Jr.'s vision and leadership to guide Goosehead's next chapter. This transition is supported by a deep and experienced leadership team, ensuring continuity and continued focus on strategic objectives.

    02

    Strategic Transformation and Growth

    Over the past four years, Goosehead fundamentally transformed its organization, restructuring Corporate and Franchise agent forces, expanding its corporate footprint to over a dozen offices, and launching enterprise sales. Total written premiums grew from approximately $2 billion in 2022 to well over $4 billion today, and adjusted EBITDA expanded from under $40 million to over $130 million in the last four quarters, demonstrating significant operational improvement through a challenging market.

    03

    Franchise Network Strength and Productivity

    The Franchise Network is healthier than ever, with producers at an all-time high of nearly 2,200 and an average of 2.4 producers per franchise. The average monthly payment to franchisees increased over 35% year-over-year to over $28,000, enabling reinvestment into their businesses. This growth is further evidenced by approximately 70% more franchises producing over $100,000 in gross new business commissions and agency fees compared to the prior year.

    04

    Enterprise Sales and Strategic Partnerships

    The Enterprise Sales business continues its rapid growth, generating approximately $3 million in new business commissions and agency fees in Q2 FY26, approaching one-third the size of the corporate sales team in just three years. This acceleration is fueled by strategic partnerships, such as the embedded franchise with Planet Home, which leverages natural lead flow and seasoned talent from Goosehead's corporate sales force to achieve strong production levels immediately.

    05

    Technology and AI Adoption

    Goosehead launched Digital Agent 2.0, the United States' first end-to-end choice shopping platform for personal-lines insurance, initially in Texas. This platform allows fully digital transactions while preserving agent access for advice. Additionally, Lily, the AI voice assistant, now handles approximately 20% of inbound service calls, reducing administrative tasks and allowing service professionals to focus on complex client interactions, enhancing overall efficiency and client experience.

    06

    Improved Product Market and Client Retention

    The company is benefiting from a dramatically improved product environment, leading to better bind and package rates. Client retention improved sequentially from 85% to 86%, reaching its highest level since the hard market began, with management seeing no structural limitation to exceeding its prior high of 89%. This stable market allows Goosehead to operate more efficiently and capitalize on its strong foundation for continued market share gains.

    AI-generated summary of the company’s earnings call. Not investment advice.