Goosehead Insurance, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues for the third quarter of 2026 are estimated between $108.8 million and $110.8 million, representing an approximate 17% increase at the mid-point compared to the prior year period ($92.9 million to $94.9 million).
• Core Revenue (a non-GAAP measure) was $94.7 million for the quarter, a 13% increase from $83.9 million in the prior-year period.
• Total written premiums increased 11% year-over-year to $1.31 billion.
• Policies in force grew 14% year-over-year to approximately 2.1 million.
• As of September 30, 2026, the company held $32.8 million in cash and cash equivalents.
• The company has a $75.0 million line of credit with $26.0 million drawn as of September 30, 2026.
• Total outstanding notes payable were $322.3 million as of September 30, 2026.
• $144.6 million remained available under the share repurchase authorization as of September 30, 2026.
• For the nine months ended September 30, 2026, total revenues are estimated between $320.8 million and $325.8 million, compared to $268.0 million to $273.0 million in the prior-year period.
• Nine-month Core Revenue was $269.8 million, compared to $239.8 million in the prior-year period.

Guidance and Future Outlook:

• The company reaffirmed its full-year 2026 guidance.
• Total revenues are expected to grow organically between 12% and 19% for the full year, considering the expected range of impact from the restatement.
• Total written premiums are expected to grow between 12% and 20% for the full year.

Business Segments and Product Lines:

• Corporate agent headcount increased 9% year-over-year to 568.
• Total franchise producers increased 7% year-over-year to 2,272.
• Core Revenue growth was driven by continued improvement in client retention and strong new business generation resulting from growth in total producers and improved franchise productivity.
• The company distributes products through corporate and franchise locations, representing over 200 insurance companies.

Market and Competitive Landscape:

• Management stated that investments in agents, service organization, and proprietary technology have strengthened client relationships and expanded ways to reach and serve clients.
• The company positions itself to capture substantial growth opportunities through a platform pairing personal guidance with digital convenience and broad product choice.

Risks and Challenges:

• The company announced a delay in its full earnings release and a restatement of certain prior period financial statements to correct departures from GAAP.
• Historical accounting for certain costs to obtain customer contracts did not conform to GAAP; qualifying commissions were expensed within employee compensation and benefits rather than capitalized and amortized.
• Certain fees charged to franchisees (technology-related and E&O insurance program fees) were recorded as a reduction of general and administrative expenses rather than recognized as franchise revenues.
• The restatement affects audited consolidated financial statements for fiscal years 2025, 2024, and 2023, as well as interim periods for 2025, 2024, and 2026.
• Preliminary estimates indicate employee compensation and benefits will decrease and income from operations will increase by approximately 0.5% to 5.5% of employee compensation and benefits for the full year 2025 and interim periods ended June 30 and March 31, 2026.
• The correction regarding franchise fees is expected to increase total revenue and general and administrative expenses by equivalent amounts of approximately $11 million to $16 million for 2025 and $5.5 million to $8.5 million for the six months ended June 30, 2026.
• Forward-looking statements involve risks including the completion of the restatement, discovery of additional information, delays in filing periodic reports, potential litigation, regulatory inquiries, loss of key executives, and inability to attract/retain qualified personnel or franchisees.

Management Commentary and Tone:

• Mark Miller, Chief Executive Officer, described the third quarter results as "strong."
• Management highlighted that years of investment have created a platform that pairs personal guidance with digital convenience and broad product choice.
• Management expressed confidence that these capabilities are positioning the company to capture substantial growth opportunities ahead.

Other Key Points:

• The company intends to file an amendment to its Form 10-K for the fiscal year ended December 31, 2025, and amendments to its Form 10-Q for the quarters ended June 30 and March 31, 2026, to restate the affected financial statements.
• A conference call and webcast were hosted on November 9, 2026, at 4:30 PM ET to discuss the preliminary results.
• The financial results presented are preliminary, have not been reviewed or audited by independent public accountants, and are based on estimates prepared prior to the completion of the financial statement close process or the restatement.
• Customer Satisfaction Score (CSAT) for the trailing twelve months beginning October 1, 2025, was 4.1.
• Client retention was 86% as of September 30, 2026, compared to 85% in the prior year.
• Premium retention was 87% as of September 30, 2026, compared to 93% in the prior year.