Goosehead Insurance(NASDAQ) GSHD

Goosehead helps people find the best prices for car and home insurance. They connect families with many different insurance companies at once. This service makes it easy for customers to protect their property.

The Product Mix

• Renewal Royalty Fees: Fees paid by franchise owners to the company after the first year of an insurance policy; accounts for 46% of revenue.
• Renewal Commissions: Payments received from insurance carriers when customers renew existing policies through the corporate office; roughly 20% of revenue.
• Contingent Commissions: Bonuses from insurance companies based on the specific growth and profit levels of the policies sold; represents 12% of revenue.
• New Business Fees: Combined commissions and royalties earned during the very first term of a new insurance policy; accounts for 16% of revenue.
• Agency Fees: One-time service charges paid directly by customers when the company issues a new insurance policy; represents 3% of revenue.

Scaling the Sales Network

• Extended the share repurchase program in February 2026 to buy back up to $198.3 million of its own stock.
• Onboarded 20 new franchise locations during the three months ended March 31, 2026 to expand its national footprint.
• Entered into a new credit agreement in January 2025 providing for a $300 million term loan and a $75 million revolving facility.
• Paid a one-time special cash dividend of $5.91 per share to stockholders in January 2025 for a total of $146 million.

Efficiency Through Technology

The company uses a digital platform to compare prices across many different insurance carriers for its clients. Its distribution relies on a network of 956 franchise locations and 17 corporate offices as of March 31, 2026.

A Look at the Books

• Total revenue rose to $93.1 million in the first quarter of 2026, up 23.1% from the first quarter of 2025.
• Net income reached $4.9 million in the first quarter of 2026, a 108.8% increase over the previous year.
• Total Written Premium, representing the total value of policies placed, hit $1.1 billion in the first quarter of 2026, up 13% year-over-year.
• Free cash flow grew to $21.2 million in the first quarter of 2026, up 75.0% from $12.1 million a year ago.
• The number of active insurance policies increased to 1,973,000 as of March 31, 2026, a 14% rise from the prior year.

Bottom Line

Goosehead has evolved from a local agency into a national distributor powered by a high-margin franchise model. Its focus on recurring renewal income and technology investments supports its ongoing growth across the United States insurance market.