Summary
Goosehead Insurance Inc (GSHD, Financial), a rapidly expanding independent personal lines insurance agency, announced its financial results for the first quarter ending March 31, 2025. The company reported a 17% increase in total revenue, reaching $75.6 million, and a 22% rise in total written premiums, amounting to $1.0 billion. The results were released on April 23, 2025, highlighting significant growth in net income and adjusted EBITDA.
Positive Highlights
- Total revenue increased by 17% to $75.6 million compared to the previous year.
- Net income rose to $2.6 million from $1.8 million, marking a 46% increase.
- Adjusted EBITDA grew by 32% to $15.5 million, with an adjusted EBITDA margin of 21%.
- Total written premiums increased by 22% to $1.0 billion.
- Corporate agent headcount increased by 46% year-over-year.
- New $100 million share repurchase authorization announced, effective through May 1, 2026.
Negative Highlights
- Adjusted EPS decreased by 5% compared to the prior-year period.
- Operating expenses increased by 14% due to investments in corporate producers and technology.
- Net Promoter Score (NPS) decreased from 91 to 87.
Financial Analyst Perspective
From a financial analyst's viewpoint, Goosehead Insurance's Q1 2025 results demonstrate robust growth in key financial metrics, including revenue and net income. The company's strategic investments in technology and expansion of its corporate agent base are likely to support continued growth. However, the decline in adjusted EPS and increased operating expenses warrant close monitoring. The new share repurchase program indicates confidence in the company's future performance and shareholder value enhancement.
Market Research Analyst Perspective
As a market research analyst, Goosehead Insurance's performance in Q1 2025 reflects its strong market position and growth potential in the U.S. personal lines insurance market. The company's focus on technology and AI-driven tools to enhance customer experience is a strategic move to differentiate itself in a competitive landscape. The increase in corporate agent headcount and franchise producers suggests a successful expansion strategy. However, maintaining high client retention and improving NPS will be crucial for sustaining long-term growth.
Frequently Asked Questions (FAQ)
Q: What was Goosehead Insurance's total revenue for Q1 2025?
A: Goosehead Insurance reported total revenue of $75.6 million for Q1 2025.
Q: How much did Goosehead Insurance's net income increase in Q1 2025?
A: Net income increased by 46% to $2.6 million in Q1 2025.
Q: What is the new share repurchase authorization announced by Goosehead Insurance?
A: Goosehead Insurance announced a new $100 million share repurchase authorization, effective through May 1, 2026.
Q: How did Goosehead Insurance's total written premiums perform in Q1 2025?
A: Total written premiums increased by 22% to $1.0 billion in Q1 2025.
Read the original press release here.
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