Goosehead reports 20% rise Q2 total revenue

Overview

• Goosehead Q2 total revenue revenue grows 20% yr/yr to $94 mln, core revenue up 18%

• Adjusted EPS and EBITDA missed analyst expectations, per LSEG data

• Net income declines 24% yr/yr to $8.3 mln, adjusted EBITDA margin dips

Outlook

• Goosehead expects 2025 total written premiums between $4.38 bln and $4.65 bln

• Company projects 2025 total revenues between $350 mln and $385 mln

Result Drivers

• REVENUE GROWTH - Total revenues increased 20% to $94.0 mln, driven by an 18% rise in core revenues, attributed to increased producer count, improved franchise productivity, and stable premium rate increases

• WRITTEN PREMIUMS - Total written premiums rose 18% to $1.2 bln

• COST INCREASES - Operating expenses rose 21% to $64.9 mln, largely due to investments in corporate producers and technology and systems to enhance client experience

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the multiline insurance & brokers peer group is "buy."

• Wall Street's median 12-month price target for Goosehead Insurance Inc is $130.00, about 22.5% above its July 22 closing price of $100.79

• The stock recently traded at 46 times the next 12-month earnings vs. a P/E of 57 three months ago

Press Release: ID:nGNX3v1hn8