Goosehead Delays Earnings as Growth Cools

The Tip Desk · November 12, 2026 · 4 min read

Preliminary third-quarter revenue is estimated at $108.8 million to $110.8 million, up about 17% at the midpoint, as the company restates prior periods.

Goosehead Insurance, Inc. (GSHD), a rapidly growing independent personal lines insurance agency, said it will delay its full earnings release and restate prior-period financial statements after concluding that historical accounting for certain costs to obtain customer contracts did not conform to GAAP.

The company issued preliminary third-quarter results for the period ended September 30, 2026, and reaffirmed full-year 2026 guidance. Total revenues are estimated at $108.8 million to $110.8 million, an increase of approximately 17% at the midpoint of the range versus an estimated $92.9 million to $94.9 million in the year-ago quarter, based on preliminary estimates of the restatement’s impact. That growth rate slowed from 21% in the second quarter and 23% in the first quarter.

Core Revenue, a non-GAAP measure that excludes contingent commissions, initial franchise fees, interest income, franchise operating fees, and other franchise revenues, was $94.7 million, up 13% from $83.9 million a year earlier. Core Revenue growth had been 10% in the second quarter and 15% in the first quarter. The company said Core Revenue growth was driven by continued improvement in client retention and strong new business generation, driven by growth in total producers and improved franchise productivity.

Total written premiums placed for the third quarter increased 11% over the prior-year period to $1.31 billion, after 14% growth in the second quarter and 13% in the first quarter. Policies in force grew 14% from the prior-year period to approximately 2.1 million. Corporate agent headcount of 568 increased 9% compared with the prior-year period. Total franchise producers of 2,272 increased 7% from the prior-year period.

Chief Executive Officer Mark Miller said total revenue was up approximately 17% and core revenue up 13%, and that years of investment in agents, the service organization, and proprietary technology had created a platform pairing personal guidance with digital convenience and broad product choice.

For the three months ended September 30, 2026, contingent commissions were $9,993 thousand versus $4,542 thousand in the prior-year period. Renewal royalty fees were $53,420 thousand versus $45,687 thousand. New business commissions were $9,127 thousand versus $7,526 thousand, and new business royalty fees were $9,371 thousand versus $8,275 thousand.

Client retention was 86% as of September 30, 2026, versus 85% a year earlier. Premium retention was 87%, versus 93% a year earlier. Quarter-to-date total written premium was $1,307,308 thousand, versus $1,181,825 thousand a year earlier. Franchise written premium was $1,094,774 thousand, versus $975,690 thousand. Corporate written premium was $212,534 thousand, versus $206,135 thousand.

As of September 30, 2026, the company had cash and cash equivalents of $32.8 million. A $75.0 million line of credit had $26.0 million drawn. Total outstanding notes payable was $322.3 million. $144.6 million remained available under the share repurchase authorization.

The company said it concluded that previously issued financial statements for the fiscal years ended December 31, 2025, 2024 and 2023, and for interim periods through June 30, 2026, should no longer be relied upon. During those non-reliance periods, certain qualifying commissions paid to obtain customer contracts were expensed within employee compensation and benefits rather than capitalized and amortized. The company preliminarily expects employee compensation and benefits to decrease and income from operations to increase by approximately 0.5% to 5.5% of employee compensation and benefits for the full year ended December 31, 2025 and the interim periods ended June 30, 2026 and March 31, 2026.

Management also identified a presentation departure in certain technology-related and E&O insurance program fees charged to franchisees, which had been recorded as a reduction of general and administrative expenses rather than as franchise revenues. The company said the correction had no effect on operating income, net income or cash flows for the non-reliance periods and preliminarily expects both total revenue and general and administrative expenses to increase by equivalent amounts of approximately $11 million to $16 million for the year ended December 31, 2025 and approximately $5.5 million to $8.5 million for the six months ended June 30, 2026.

The company intends to file a Form 10-K/A and amendments to Forms 10-Q as soon as practicable. It is reaffirming full-year 2026 guidance that total revenues are expected to grow organically between 12% and 19% considering the expected range of impact of the restatement, and that total written premiums are expected to grow between 12% and 20%.