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- **Revenue Growth Accelerates**: Q3 2025 total written premiums rose 15% YoY to $1.2 billion, driven by stable pricing and 85% client retention.
- **Digital Agent Investment**: $25-35 million annual spend (2026-2027) targets 40%+ written premium growth over 5 years, with H2 2026 revenue contributions.
- **Margin Expansion Potential**: Enterprise sales (DTC) will deliver higher margins than traditional channels, though short-term costs will impact EBITDA.
- **Strategic Partnerships**: New mortgage originator partnerships add 1 million+ home loan serviced annually, enhancing lead flow.
- **Share Buybacks**: $58.7 million repurchased in Q3, signaling confidence in long-term value creation.

**【CEO Summary Section】**
- Goosehead Insurance reported total written premiums of $1.2 billion for Q3 2025, a 15% year-over-year increase, driven by stable pricing cycles and improved client retention.
- CEO Mark Miller emphasized the company's strategic focus on becoming the largest distributor of personal lines insurance in the U.S., with a 5-year growth target of 40% in total written premiums.
- Key initiatives include expanding the franchise network (34 new agencies launched in Q3), integrating digital agent technology, and forming partnerships with top mortgage originators to capture 1 million home loan serviced annually.
- Client retention improved to 85%, up from 84% in Q2, reflecting enhanced service delivery and stable pricing.

**【CFO Financial Commentary】**
- Total revenue for Q3 2025 was $90.4 million, a 16% year-over-year increase, with core revenue growing 4% to $83.9 million.
- Adjusted EBITDA reached $29.7 million, a 14% year-over-year increase, with a margin of 33%.
- Contingent commissions rose to $4.5 million (82% YoY growth), benefiting from carrier loss ratio improvements.
- The company invested $10.9 million in the digital agent platform in 2025, with plans to spend $25-35 million annually in 2026-2027, expecting 70% capitalization and $8-11 million in operating expenses.
- Share buybacks totaled $58.7 million in Q3, reflecting confidence in long-term growth.

**【Q&A Key Highlights】**
- **Digital Agent Investment**: CFO Mark Jones Jr. clarified the $25-35 million annual investment will drive 40%+ written premium growth over 5 years, with revenue contributions starting in H2 2026.
- **Margin Profile**: Enterprise sales (DTC) will generate higher margins than franchise/corporate channels, though short-term investments will weigh on margins.
- **Housing Market Impact**: Despite depressed housing activity, Goosehead's referral network (1 million+ home closings annually) mitigates headwinds.
- **Client Retention**: 85% retention rate reflects stable pricing and improved service, with potential to return to pre-2022 levels of 89%.
- **Carrier Partnerships**: 12+ carriers integrated into the digital agent platform, with support from major carriers for direct-to-consumer (DTC) initiatives.
- **Franchise Growth**: Producer count up 1% YoY, with 34 new agencies launched in Q3 and 10 corporate agents transitioning to franchises.


Goosehead Insurance, Inc (GSHD) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

GSHD

GSHD fundamentals

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