Goosehead Insurance Reports 17% Revenue Growth to $75.6 Million in Q1 2025

Goosehead Insurance, Inc. reported a 17% increase in total revenue for the first quarter of 2025, reaching $75.6 million compared to $64.5 million in the same period last year. The company's net income also rose to $2.6 million, up from $1.8 million, reflecting a net income margin of approximately 4%. Earnings per share for the quarter were $0.09, compared to $0.07 in the prior year. The growth in revenue was primarily driven by a 22% increase in total written premiums, which reached $1.0 billion, and a 17% rise in core revenue, totaling $69.1 million.

In terms of operational metrics, Goosehead's policies in force increased by 13% year-over-year, totaling 1.7 million as of March 31, 2025. The company onboarded 36 new franchise locations during the quarter, bringing the total number of operating franchises to 1,098, although this represents a 5% decrease from the previous year. The corporate sales headcount grew significantly, increasing by 46% to 426 employees, with a notable portion of these agents being relatively new to the company.

The filing also highlighted significant changes in revenue streams. Renewal commissions increased by 6% to $17.0 million, while renewal royalty fees surged by 28% to $37.2 million, attributed to a higher number of policies in the renewal term and rising premium rates. Conversely, revenue from initial franchise fees decreased by 40% to $1.3 million, primarily due to lower franchise turnover. Ancillary revenue, which includes contingent commissions, rose to $4.9 million, driven by increased total written premiums.

Goosehead's operating expenses increased by 10% to $69.0 million, with employee compensation and benefits accounting for a significant portion of this rise. Interest expense also saw a substantial increase, climbing to $5.8 million from $1.5 million, largely due to higher borrowings. The company reported a tax benefit of $1.7 million for the quarter, down from $8.6 million in the prior year, reflecting changes in state apportionment and related filing requirements.

Looking ahead, Goosehead Insurance remains optimistic about its growth trajectory, supported by its expanding franchise network and increasing policies in force. The company anticipates continued revenue growth driven by its core business model and strategic investments in technology and personnel. However, management acknowledged potential challenges, including market conditions that could impact new business revenue and client retention rates.