Goosehead Insurance, Inc 10-Q for FY2026 Q2

Goosehead Insurance, Inc. (GSHD)

10-Q 2026-07-23 For: 2026-06-30

Added on July 24, 2026

About this 10-Q

Goosehead Insurance, Inc filed this 10-Q on July 23, 2026, covering the quarter ended June 30, 2026 (FY2026 Q2).

Headline figures

Quarter ended June 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $113.39M; up 20.6% from $94.03M a year earlier
Net income: $10.07M; up 95.4% from net income of $5.15M a year earlier

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Delaware			82-3886022
(State or other jurisdiction of incorporation or organization)			(IRS Employer Identification No.)
1500 Solana Blvd, Building 4, Suite 4500
Westlake
Texas			76262
(Address of principal executive offices)			(Zip Code)


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Class A Common Stock, par value $.01 per share	GSHD	NASDAQ



		Page
Part I
Item 1.	Condensed Consolidated Financial Statements (Unaudited)	5
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	27
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	42
Item 4.	Controls and Procedures	42

Part II
Item 1.	Legal Proceedings	43
Item 1A.	Risk Factors	43
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	43
Item 3.	Defaults Upon Senior Securities	43
Item 4.	Mine Safety Disclosures	43
Item 5.	Other Information	43
Item 6.	Exhibits	44

SIGNATURES		44


		Page
Condensed Consolidated Statements of Operations		6
Condensed Consolidated Balance Sheets		7
Condensed Consolidated Statements of Stockholders' Equity		8
Condensed Consolidated Statements of Cash Flows		10
Notes to the Condensed Consolidated Financial Statements		12
Note 1	Organization	12
Note 2	Summary of significant accounting policies	12
Note 3	Revenues	14
Note 4	Franchise fees receivable	17
Note 5	Allowance for uncollectible agency fees	18
Note 6	Property and equipment	18
Note 7	Intangible assets	19
Note 8	Debt	19
Note 9	Income taxes	20
Note 10	Stockholders' equity	21
Note 11	Noncontrolling interest	24
Note 12	Equity-based compensation	25
Note 13	Dividends	25
Note 14	Segment information	25
Note 15	Litigation	26


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Revenues:
Commissions and agency fees	$	49,455	$	38,076	$	88,140	$	67,499
Franchise revenues	63,839		55,772		118,113		101,744
Interest income	95		179		212		368
Total revenues	113,389		94,027		206,465		169,611
Operating Expenses:
Employee compensation and benefits	54,328		50,388		104,855		98,722
General and administrative expenses	28,420		24,647		52,389		42,206
Bad debts	504		550		877		957
Depreciation and amortization	3,545		2,782		6,757		5,452
Total operating expenses	86,797		78,367		164,878		147,337
Income from operations	26,592		15,660		41,587		22,274
Other Income:

Interest expense	(5,714)		(6,303)		(11,186)		(12,126)
Other income	260		815		527		983
Income before taxes	21,138		10,172		30,928		11,131
Tax expense	4,124		1,889		5,869		202
Net income	17,014		8,283		25,059		10,929
Less: net income attributable to noncontrolling interests	6,949		3,133		10,105		3,437
Net income attributable to Goosehead Insurance, Inc.	$	10,065	$	5,150	$	14,954	$	7,492
Earnings per share:
Basic	$	0.42	$	0.20	$	0.62	$	0.30
Diluted	$	0.41	$	0.18	$	0.60	$	0.27
Weighted average shares of Class A common stock outstanding
Basic	23,718		25,216		23,992		25,005
Diluted	35,710		38,553		36,173		38,542


(Mark One)
☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	June 30,		December 31,
	2026		2025
Assets
Current Assets:
Cash and cash equivalents	$	23,655	$	34,390
Restricted cash	3,830		3,547

Commissions and agency fees receivable, net	24,726		36,613
Receivable from franchisees, net	18,531		11,141
Prepaid expenses	14,616		7,552

Total current assets	85,358		93,243
Receivable from franchisees, net of current portion	1,650		2,936
Property and equipment, net of accumulated depreciation	21,766		21,549
Right-of-use asset	31,264		34,087
Intangible assets, net of accumulated amortization	48,364		39,700
Deferred income taxes, net	209,795		216,371
Other assets	8,645		6,978
Total assets	$	406,842	$	414,864
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable and accrued expenses	$	30,115	$	33,629
Premiums payable	3,830		3,547

Lease liability	9,305		8,666

Contract liabilities	2,790		3,241
Notes payable	2,993		2,993
Liabilities under tax receivable agreement	6,237		6,237
Total current liabilities	55,270		58,313
Lease liability, net of current portion	46,160		51,168

Note payable, net of current portion	314,379		289,461
Contract liabilities, net of current portion	11,289		13,025
Liabilities under tax receivable agreement, net of current portion	168,275		165,685
Total liabilities	595,373		577,652

Class A common stock, $0.01 par value per share - 300,000 shares authorized, 23,803 shares issued and outstanding as of June 30, 2026, 24,653 shares issued and outstanding as of December 31, 2025	238		247
Class B common stock, $0.01 par value per share - 50,000 shares authorized, 11,713 issued and outstanding as of June 30, 2026, 11,935 shares issued and outstanding as of December 31, 2025	117		119
Additional paid-in capital	5,645		37,486
Accumulated deficit	(118,402)		(133,356)
Total stockholders' equity	(112,402)		(95,504)
Noncontrolling interests	(76,129)		(67,284)
Total equity	(188,531)		(162,788)
Total liabilities and equity	$	406,842	$	414,864


	Issued shares of Class A common stock	Issued shares of Class B common stock	Class A common stock		Class B common stock		Additional paid-in capital		Accumulated deficit		Total stockholders' equity		Noncontrolling interest		Total equity
Balance January 1, 2026	24,653	11,935	$	247	$	119	$	37,486	$	(133,356)	$	(95,504)	$	(67,284)	$	(162,788)
Distributions	—	—	—		—		—		—		—		(2,190)		(2,190)

Share repurchases	(985)	—	(10)		—		(31,628)		—		(31,638)		(18,691)		(50,329)
Net income	—	—	—		—		—		4,889		4,889		3,156		8,045

Equity-based compensation	—	—	—		—		4,167		—		4,167		2,050		6,217
Activity under employee stock purchase plan	3	—	—		—		70		—		70		46		116

Deferred tax adjustments net of tax receivable agreement liabilities	—	—	—		—		(3,256)		—		(3,256)		—		(3,256)
Balance March 31, 2026	23,671	11,935	$	237	$	119	$	6,839	$	(128,467)	$	(121,272)	$	(82,913)	$	(204,185)
Distributions	—	—	$	—	$	—	$	—	$	—	$	—	$	(1,840)	$	(1,840)

Share repurchases	(95)	—	(1)		—		(2,355)		—		(2,356)		(1,510)		(3,866)
Net income	—	—	—		—		—		10,065		10,065		6,949		17,014
Exercise of stock options	3	—	—		—		35		—		35		78		113
Equity-based compensation	—	—	—		—		3,173		—		3,173		1,583		4,756
Activity under employee stock purchase plan	2	—	—		—		74		—		74		44		118
Redemption of LLC Units	222	(222)	2		(2)		(1,480)		—		(1,480)		1,480		—
Deferred tax adjustments net of tax receivable agreement liabilities	—	—	—		—		(641)		—		(641)		—		(641)
Balance June 30, 2026	23,803	11,713	$	238	$	117	$	5,645	$	(118,402)	$	(112,402)	$	(76,129)	$	(188,531)


Goosehead Insurance, Inc.
Notes to the Condensed Consolidated Financial Statements (Unaudited)


	June 30, 2026		December 31, 2025		Increase/(decrease)
Cost to obtain franchise contracts(1)	$	1,470	$	1,801	$	(331)
Commissions and agency fees receivable, net	24,726		36,613		(11,887)
Receivable from franchisees(2)	20,181		14,077		6,104
Contract liabilities(2)(3)	14,079		16,266		(2,187)



Contract liabilities at December 31, 2025	$	16,266
Revenue recognized during the period	(2,969)
New deferrals(1)	1,544
Write offs(2)	(762)
Contract liabilities at June 30, 2026	$	14,079


	June 30, 2026		December 31, 2025
Franchise fees receivable(1)	$	3,976	$	4,844
Less: Unamortized discount(1)	(540)		(904)
Less: Allowance for uncollectible franchise fees(1)	(50)		(40)
Net franchise fees receivable(1)	$	3,386	$	3,900


Balance at December 31, 2025	$	40
Charges to bad debts	34
Write offs	(24)
Balance at June 30, 2026	$	50

Balance at December 31, 2024	$	35
Charges to bad debts	123
Write offs	(129)
Balance at June 30, 2025	$	29


	June 30, 2026		December 31, 2025
Furniture & fixtures	$	10,960	$	10,268
Computer equipment	7,535		6,552
Network equipment	1,061		802
Phone system	200		200
Leasehold improvements	39,119		37,387
Total	58,875		55,209
Less accumulated depreciation	(37,109)		(33,660)
Property and equipment, net	$	21,766	$	21,549


	Six Months Ended June 30,
	2026		2025
Cash flows from operating activities:
Net income	$	25,059	$	10,929
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	6,757		5,582
Amortization of debt discounts and issuance costs	595		551
Loss on disposal of fixed assets	—		5
Loss on debt extinguishment	—		771
Impairment expense	—		4,694
Bad debt expense	877		957
Equity-based compensation	10,973		12,253

Deferred income taxes	5,269		(28)
Noncash lease activity	(1,806)		(1,455)
Cloud computing arrangement implementation costs	(1,211)		(475)
Changes in operating assets and liabilities:
Receivable from franchisees	(6,304)		(119)
Commissions and agency fees receivable	10,715		20,181
Prepaid expenses	(7,064)		(9,487)
Other assets	62		901
Accounts payable and accrued expenses	(2,941)		(311)
Contract liabilities	(2,187)		(552)
Net cash provided by operating activities	38,794		44,397
Cash flows from investing activities:
Issuance of notes receivable to franchisees	—		(50)
Proceeds from notes receivable to franchisees	110		140
Capitalized software development costs	(11,503)		(5,697)
Cash consideration paid for asset acquisitions	(131)		(444)
Proceeds from fixed asset disposals	409		—
Purchase of property and equipment	(3,123)		(2,317)
Net cash used for investing activities	(14,238)		(8,368)
Cash flows from financing activities:
Customer premiums, net	260		(667)
Debt issuance cost	—		(7,929)
Repayment of notes payable	(1,496)		(93,828)
Proceeds from notes payable	—		299,250
Proceeds from revolving credit facility	26,000		—
Proceeds from the issuance of Class A common stock	347		12,228


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Type of revenue stream:
Commissions and agency fees
Renewal Commissions	$	21,034	$	23,119	$	39,196	$	40,071
New Business Commissions	9,613		7,559		17,065		13,314
Agency Fees	3,083		2,906		5,468		5,146
Contingent Commissions	15,725		4,492		26,411		8,968
Franchise revenues
Renewal Royalty Fees	52,507		45,381		96,101		82,625
New Business Royalty Fees	9,396		7,820		17,282		14,749
Initial Franchise Fees	1,360		1,247		2,969		2,589
Other Franchise Revenues	576		1,324		1,761		1,781
Interest Income	95		179		212		368
Total Revenues	$	113,389	$	94,027	$	206,465	$	169,611

Timing of revenue recognition:
Transferred at a point in time	$	33,730	$	33,584	$	61,729	$	58,531
Transferred over time	79,659		60,443		144,736		111,080
Total Revenues	$	113,389	$	94,027	$	206,465	$	169,611


Leverage Ratio			Interest Rate
< 1.50x			SOFR + 175 bps
≥ 1.50x			SOFR + 200 bps
≥ 2.50x			SOFR + 225 bps
≥ 3.50x			SOFR + 250 bps


	Amount
Remaining in 2026	$	1,496
2027	2,993
2028	2,993
2029	2,993
2030	28,993
Thereafter	283,538
Total	$	323,006


	June 30, 2026		December 31, 2025
Computer software & web domain	$	50,200	$	38,738
Books of business	12,327		11,817
Total	62,527		50,555
Less: accumulated amortization	(14,163)		(10,856)
Intangible assets, net	$	48,364	$	39,700


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Numerator:
Net income attributable to GSHD - Basic	$	10,065	$	5,150	$	14,954	$	7,492
Add: net income attributable to noncontrolling interests(1)	6,949		3,133		10,105		3,437
Less: income tax effect on income attributable to noncontrolling interests assuming conversion of Class B common shares(1)	(2,400)		(1,183)		(3,458)		(343)
Net income available to GSHD - Diluted	$	14,614	$	7,100	$	21,601	$	10,586

Denominator:
Basic EPS
Weighted average outstanding Class A common shares - Basic	23,718		25,216		23,992		25,005
Earnings per share of Class A common stock - Basic	$	0.42	$	0.20	$	0.62	$	0.30

Diluted EPS
Weighted average outstanding Class A common shares - Basic	23,718		25,216		23,992		25,005
Effect of dilutive securities:
Weighted average outstanding Class B common shares (if-converted)(1)	11,836		12,328		11,886		12,457
Stock options(2)	156		1,009		295		1,080
Weighted average outstanding Class A common shares - Diluted	35,710		38,553		36,173		38,542

Earnings per share of Class A common stock - Diluted	$	0.41	$	0.18	$	0.60	$	0.27


	June 30, 2026
	LLC Units	Ownership %
Number of LLC Units held by GSHD	23,803	67.0%
Number of LLC Units held by noncontrolling interest holders	11,713	33.0%
Number of LLC Units outstanding	35,516	100.0%


	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2026			2025			2026			2025
Core Revenue:
Renewal Commissions(1)	$21,034	19	%	$23,119	25	%	$39,196	19	%	$40,071	24	%
Renewal Royalty Fees(2)	52,507	46	%	45,381	48	%	96,101	47	%	82,625	49	%
New Business Commissions(1)	9,613	8	%	7,559	8	%	17,065	8	%	13,314	8	%
New Business Royalty Fees(2)	9,396	8	%	7,820	8	%	17,282	8	%	14,749	9	%
Agency Fees(1)	3,083	3	%	2,906	3	%	5,468	3	%	5,146	3	%
Total Core Revenue	95,633	84	%	86,785	92	%	175,112	85	%	155,905	92	%
Cost Recovery Revenue:
Initial Franchise Fees(2)	1,360	2	%	1,247	1	%	2,969	1	%	2,589	2	%
Interest Income	95	—	%	179	—	%	212	—	%	368	—	%
Total Cost Recovery Revenue	1,455	2	%	1,426	2	%	3,181	1	%	2,957	2	%
Ancillary Revenue:
Contingent Commissions(1)	15,725	13	%	4,492	5	%	26,411	13	%	8,968	5	%
Other Franchise Revenues(2)	576	1	%	1,324	1	%	1,761	1	%	1,781	1	%
Total Ancillary Revenue	16,301	14	%	5,816	6	%	28,172	14	%	10,749	6	%
Total Revenues	$113,389	100	%	$94,027	100	%	$206,465	100	%	$169,611	100	%


	Three Months Ended June 30,				% Change
	2026		2025
Corporate sales Total Written Premium	$	238,871	$	217,147	10	%
Franchise sales Total Written Premium	1,096,468		958,762		14	%
Total Written Premium	$	1,335,339	$	1,175,909	14	%


	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Operating leases(1)	$	64,901	$	12,117	$	24,685	$	16,696	$	11,403
Debt obligations payable(2)	323,006		2,993		5,985		31,985		282,043
Interest expense(3)	112,791		21,392		42,238		39,192		9,969
Liabilities under the tax receivable agreement(4)	174,512		6,237		20,996		41,701		105,578
Total	$	675,210	$	42,739	$	93,904	$	129,574	$	408,993


Period	Total Number of Shares Purchased	Average Price Paid Per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(1)	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs
April 1, 2026 - April 30, 2026	—	$—	—	$148,487
May 1, 2026 - May 31, 2026	95	$40.95	95	$144,568
June 1, 2026 - June 30, 2026	—	$—	—	$144,568
Total	95		95


E xhibit 10.1§			Separation and Engagement Agreement, dated April 3, 2026, by and between Goosehead Insurance Agency, LLC and John O'Connor
Exhibit 31.1			Certifications of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 31.2			Certifications of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 32			Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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