Goosehead Insurance Reports 20% Revenue Growth to $314.5 Million for Fiscal Year 2024

Goosehead Insurance, Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total revenue rising by 20% to $314.5 million, compared to $261.3 million in 2023. The company's net income also saw a notable increase, climbing to $49.1 million from $23.7 million in the previous year, representing 16% of total revenues. Adjusted EBITDA surged by 43% to $99.9 million, reflecting a strong operational performance. The growth in revenue was primarily driven by a 29% increase in Total Written Premiums, which reached $3.8 billion, up from $3.0 billion in 2023.

In terms of operational metrics, Goosehead's Policies in Force increased by 13% to 1,674,000, while the corporate sales headcount expanded by 39% to 417 agents. However, the number of operating franchises decreased by 10% to 1,103, indicating a strategic shift in focus. The company's client retention rate remained strong at 84%, although it experienced a slight decline from 86% in 2023. Goosehead's Net Promoter Score (NPS) also decreased modestly to 89, down from 92, attributed to rising premium rates impacting customer satisfaction.

Strategically, Goosehead has continued to invest in technology and expand its market presence. The company operates a proprietary online quoting platform, the Digital Agent, which enhances customer engagement and streamlines the insurance purchasing process. Goosehead's business model, which separates sales and service functions, has contributed to higher productivity among agents, with corporate sales agents achieving 2.8 times the new business production compared to industry best practices. The company also reported a significant increase in Contingent Commissions, which rose by 128% to $31.4 million, driven by improved loss ratios and growth in Total Written Premiums.

Looking ahead, Goosehead aims to continue its growth trajectory by expanding its recruiting efforts in corporate sales and increasing its market share through franchise development. The company plans to leverage its technology investments to drive efficiency and productivity while maintaining high levels of client retention. However, Goosehead acknowledges potential risks, including economic downturns, regulatory changes, and competitive pressures that could impact its financial performance. The company remains focused on executing its strategic initiatives to enhance shareholder value and sustain its growth in the personal lines insurance market.