Goosehead Insurance, Inc. reported a 16% increase in total revenue for the third quarter of 2025, reaching $90.4 million, compared to $78.0 million in the same period last year. For the nine months ending September 30, 2025, revenue rose 18% to $260.0 million from $220.6 million in 2024. The growth was driven by a 15% increase in total written premiums, which amounted to $1.2 billion for the quarter. Net income for the quarter was $12.7 million, slightly up from $12.6 million a year earlier, while earnings per share remained stable at $0.31 for basic and $0.29 for diluted shares.
The company experienced notable changes in its revenue streams, with core revenue increasing by 14% to $83.9 million for the third quarter. This growth was attributed to higher renewal commissions and royalty fees, which are considered more predictable and higher-margin revenue sources. Renewal commissions decreased slightly to $19.7 million, while renewal royalty fees surged by 20% to $45.7 million. The increase in renewal royalty fees was primarily due to a rise in the number of policies in the renewal term and improved client retention rates, which stood at 85% as of September 30, 2025.
Operationally, Goosehead Insurance onboarded 34 new franchise locations during the third quarter, bringing the total number of operating franchise locations to 1,068, a decrease of 4% from the previous year. The company also reported a 14% increase in corporate sales headcount, totaling 523 employees. The total number of policies in force increased by 13% year-over-year, reaching approximately 1.9 million. However, the company noted a decline in its Net Promoter Score (NPS) to 81 from 90, indicating a potential area of concern regarding customer satisfaction.
In terms of strategic developments, Goosehead Insurance has been actively managing its debt. The company entered into a new credit agreement in January 2025, which included a $300 million term loan and a $75 million revolving credit facility. This agreement replaced a previous credit facility and is expected to provide the necessary liquidity for ongoing operations and growth initiatives. The company also repurchased 685,000 shares of its Class A common stock during the third quarter, reflecting its commitment to returning value to shareholders.
Looking ahead, Goosehead Insurance anticipates continued growth driven by its innovative business model and technology platform. The company expects to leverage its increasing number of policies and franchise locations to enhance revenue streams. However, management acknowledged potential challenges, including market conditions and the impact of natural disasters on contingent commissions, which could affect future performance. The company remains focused on maintaining its client retention rates and expanding its market presence across the United States.
About Goosehead Insurance, Inc.
Goosehead Insurance, Inc. is an independent insurance agency specializing in personal lines policies across the U.S. It offers a choice product platform, leveraging proprietary technology and a network of franchise and corporate agents to provide tailored coverage from over 200 carriers. The company focuses on delivering superior client service, high retention, and scalable growth through innovative sales, marketing, and support systems.
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