Goosehead Insurance Inc

Previous wording

Financial Highlights for the Second Quarter of 2024:

Current wording

Financial Highlights for the Third Quarter of 2024:

Previous wording

•Total Written Premiums placed increased 30% from the prior-year period to $998.9 million

Current wording

•Total Written Premiums placed increased 28% from the prior-year period to $1.03 billion

Previous wording

•Net income increased by $3.7 million from the second quarter of 2023 to $10.9 million, or 14% of total revenues

Current wording

•Net income increased by $1.3 million from the third quarter of 2023 to $12.6 million, or 16% of total revenues

Previous wording

•Adjusted EBITDA* increased 7% from the second quarter of 2023 to $24.7 million, or 32% of total revenues

Current wording

•Adjusted EBITDA* increased 17% from the third quarter of 2023 to $26.1 million, or 34% of total revenues

Previous wording

•Basic and diluted earnings per share were $0.25 and $0.24, respectively, and Adjusted EPS* was $0.43 per share for the three months ended June 30, 2024

Current wording

•Basic and diluted earnings per share were $0.31 and $0.29, respectively, and Adjusted EPS* was $0.50 per share for the three months ended September 30, 2024

Previous wording

•Corporate sales headcount increased 12% from June 30, 2023 to 313 at June 30, 2024

Current wording

•Corporate sales headcount increased 45% from September 30, 2023 to 458 at September 30, 2024

Previous wording

◦As of June 30, 2024, 157 of these Corporate sales agents had less than one year of tenure and 156 had greater than one year of tenure

Current wording

◦As of September 30, 2024, 277 of these Corporate sales agents had less than one year of tenure and 181 had greater than one year of tenure

Previous wording

•Total franchises decreased 33% compared to the prior-year period to 1,165; total operating franchises decreased 17% from June 30, 2023 to 1,122 at June 30, 2024

Current wording

•Total franchises decreased 27% compared to the prior-year period to 1,149; total operating franchises decreased 13% from September 30, 2023 to 1,116 at September 30, 2024

Previous wording

◦As of June 30, 2024, 89 operating Franchisees had less than one year of tenure and 1,033 operating Franchisees had greater than one year of tenure

Current wording

◦As of September 30, 2024, 93 operating Franchisees had less than one year of tenure and 1,023 operating Franchisees had greater than one year of tenure

Previous wording

For the three months ended June 30, 2024, revenue increased by 13% to $78.1 million from $69.3 million for the three months ended June 30, 2023. For the six months ended June 30, 2024, revenue increased by 12% to $142.5 million from $127.2 million for the six months ended June 30, 2023. Total Written Premium, which we believe is the best leading indicator of future revenue, increased to $999 million for the three months ended June 30, 2024 from $767 million for the three months ended June 30, 2023. Total Written Premium increased 29% for the six months ended June 30, 2024 to $1,818 million from $1,405 million for the six months ended June 30, 2023. Total Written Premiums drive our current and future Core Revenue and give us potential opportunities to earn Ancillary Revenue in the form of Contingent Commissions.

Current wording

During the three months ended September 30, 2024, despite continued macroeconomic headwinds, primarily related to product availability, the condition of the housing market, and severe weather events that temporarily impacted our production in several large states, revenue increased by 10% to $78.0 million from $71.0 million for the three months ended September 30, 2023. For the nine months ended September 30, 2024, revenue increased by 11% to $220.6 million from $198.3 million for the nine months ended September 30, 2023. Total Written Premium, which we believe is the best leading indicator of future revenue, increased to $1.03 billion for the three months ended September 30, 2024 from $0.80 billion for the three months ended September 30, 2023. Total Written Premium increased 29% for the nine months ended September 30, 2024 to $2.85 billion from $2.21 billion for the nine months ended September 30, 2023. Total Written Premiums drive our current and future Core Revenue and give us potential opportunities to earn Ancillary Revenue in the form of Contingent Commissions.

Previous wording

The following is a discussion of our consolidated results of operations for each of the three and six months ended June 30, 2024 and 2023. This information is derived from our accompanying condensed consolidated financial statements prepared in accordance with GAAP.

Current wording

The following is a discussion of our consolidated results of operations for each of the three and nine months ended September 30, 2024 and 2023. This information is derived from our accompanying condensed consolidated financial statements prepared in accordance with GAAP.

Previous wording

The following table summarizes our results of operations for the three and six months ended June 30, 2024 and 2023(in thousands):

Current wording

The following table summarizes our results of operations for the three and nine months ended September 30, 2024 and 2023(in thousands):

Previous wording

Renewal Commissions increased by $2.1 million, or 11%, to $20.6 million for the three months ended June 30, 2024 from $18.5 million for the three months ended June 30, 2023. Renewal Commissions increased by $2.2 million, or 6%, to $36.6 million for the six months ended June 30, 2024 from $34.4 million for the six months ended June 30, 2023. The increase during the three and six months ended June 30, 2024 was primarily attributable to an increase in the number of policies in the renewal term from June 30, 2023 to June 30, 2024 and premium rate increases.

Current wording

Renewal Commissions increased by $1.2 million, or 6%, to $20.2 million for the three months ended September 30, 2024 from $19.0 million for the three months ended September 30, 2023. Renewal Commissions increased by $3.4 million, or 6%, to $56.8 million for the nine months ended September 30, 2024 from $53.4 million for the nine months ended September 30, 2023. The increase during the three and nine months ended September 30, 2024 was primarily attributable to an increase in the number of policies in the renewal term from September 30, 2023 to September 30, 2024 and premium rate increases.

Previous wording

New Business Commissions increased by $0.4 million, or 7%, to $6.7 million for the three months ended June 30, 2024 from $6.3 million for the three months ended June 30, 2023. New Business Commissions increased by $0.6 million, or 5%, to $12.4 million for the six months ended June 30, 2024 from $11.8 million for the six months ended June 30, 2023. The increase during the three and six months ended June 30, 2024 was primarily driven by an increase in the number of Corporate Sales agents.

Current wording

New Business Commissions increased by $0.1 million, or 2%, to $6.2 million for the three months ended September 30, 2024 from $6.1 million for the three months ended September 30, 2023. New Business Commissions increased by $0.7 million, or 4%, to $18.6 million for the nine months ended September 30, 2024 from $17.9 million for the nine months ended September 30, 2023. The increase during the three and nine months ended September 30, 2024 was primarily driven by an increase in the number of Corporate sales agents.

Previous wording

Revenue from Agency Fees decreased by $0.3 million, or 11%, to $2.1 million for the three months ended June 30, 2024 from $2.4 million for the three months ended June 30, 2023. Revenue from Agency Fees decreased by $0.6 million, or 13%, to $4.0 million for the six months ended June 30, 2024 from $4.6 million for the six months ended June 30, 2023. The decrease in Agency Fees during the three and six months ended June 30, 2024 was primarily attributable to a decrease in the percentage of policies written where an Agency Fee was charged.

Current wording

Revenue from Agency Fees remained stable at $2.0 million for the three months ended September 30, 2024 from $2.0 million for the three months ended September 30, 2023. Revenue from Agency Fees decreased by $0.6 million, or 9%, to $6.0 million for the nine months ended September 30, 2024 from $6.6 million for the nine months ended September 30, 2023. The decrease in Agency Fees during the nine months ended September 30, 2024 was primarily attributable to a decrease in the number of policies written where an Agency Fee was charged.

Previous wording

Revenue from Contingent Commissions decreased by $1.8 million to $2.2 million for the three months ended June 30, 2024 from $4.0 million for the three months ended June 30, 2023. Revenue from Contingent Commissions decreased by $1.0 million, to $4.9 million for the six months ended June 30, 2024 from $5.9 million for the six months ended June 30, 2023. The decrease during the three and six months ended June 30, 2024 was primarily attributable to additional profitability requirements in order to earn a contingent bonus.

Current wording

Revenue from Contingent Commissions decreased by $2.3 million to $2.5 million for the three months ended September 30, 2024 from $4.8 million for the three months ended September 30, 2023. Revenue from Contingent Commissions decreased by $3.3 million, to $7.4 million for the nine months ended September 30, 2024 from $10.7 million for the nine months ended September 30, 2023. The decrease during the three and nine months ended September 30, 2024 was primarily attributable to additional profitability requirements in order to earn a contingent bonus.

Previous wording

Revenue from Renewal Royalty Fees increased by $9.3 million, or 34%, to $36.8 million for the three months ended June 30, 2024 from $27.6 million for the three months ended June 30, 2023. Revenue from Renewal Royalty Fees increased by $15.6 million, or 31%, to $65.9 million for the six months ended June 30, 2024 from $50.3 million for the six months ended June 30, 2023. The increase in revenue from Renewal Royalty Fees during the three and six months ended June 30, 2024 was primarily attributable to an increase in the number of policies in the renewal term and rising premium rates.

Current wording

Revenue from Renewal Royalty Fees increased by $8.0 million, or 27%, to $38.1 million for the three months ended September 30, 2024 from $30.0 million for the three months ended September 30, 2023. Revenue from Renewal Royalty Fees increased by $23.6 million, or 29%, to $104.0 million for the nine months ended September 30, 2024 from $80.3 million for the nine months ended September 30, 2023. The increase in revenue from Renewal Royalty Fees during the three and nine months ended September 30, 2024 was primarily attributable to an increase in the number of policies in the renewal term and rising premium rates.

Previous wording

Revenue from New Business Royalty Fees increased by $0.9 million, or 14%, to $7.2 million for the three months ended June 30, 2024 from $6.3 million for the three months ended June 30, 2023. Revenue from New Business Royalty Fees increased by $1.5 million, or 13%, to $13.4 million for the six months ended June 30, 2024 from $11.9 million for the six months ended June 30, 2023. The increase in revenue from New Business Royalty Fees during the three and six months ended June 30, 2024 was primarily attributable to an increase in agent productivity and rising premium rates.

Current wording

Revenue from New Business Royalty Fees increased by $1.1 million, or 18%, to $7.0 million for the three months ended September 30, 2024 from $5.9 million for the three months ended September 30, 2023. Revenue from New Business Royalty Fees increased by $2.6 million, or 14%, to $20.4 million for the nine months ended September 30, 2024 from $17.8 million for the nine months ended September 30, 2023. The increase in revenue from New Business Royalty Fees during the three and nine months ended September 30, 2024 was primarily attributable to an increase in franchise productivity and rising premium rates.

Previous wording

Revenue from Initial Franchise Fees decreased by $1.7 million, or 50%, to $1.6 million for the three months ended June 30, 2024 from $3.3 million for the three months ended June 30, 2023. Revenue from Initial Franchise Fees decreased by $2.5 million, or 39%, to $3.9 million for the six months ended June 30, 2024 from $6.4 million for the six months ended June 30, 2023. The primary reason for this decrease was lower turnover of franchises during the period, which avoids accelerated recognition of Initial Franchise Fees for terminated franchises.

Current wording

Revenue from Initial Franchise Fees decreased by $1.0 million, or 42%, to $1.4 million for the three months ended September 30, 2024 from $2.4 million for the three months ended September 30, 2023. Revenue from Initial Franchise Fees decreased by $3.5 million, or 40%, to $5.3 million for the nine months ended September 30, 2024 from $8.8 million for the nine months ended September 30, 2023. The primary reason for this decrease was lower turnover of franchises during the period, which avoids accelerated recognition of Initial Franchise Fees for terminated franchises.

Previous wording

Interest income decreased by $0.2 million, or 41%, to $0.2 million for the three months ended June 30, 2024 from $0.4 million for the three months ended June 30, 2023. Interest income decreased by $0.3 million, or 39%, to $0.5 million for the six months ended June 30, 2024 from $0.8 million for the six months ended June 30, 2023. The decrease was primarily attributable to fewer average Franchise Agreements signed under the payment plan option.

Current wording

Interest income decreased by $0.1 million, or 28%, to $0.2 million for the three months ended September 30, 2024 from $0.3 million for the three months ended September 30, 2023. Interest income decreased by $0.4 million, or 36%, to $0.7 million for the nine months ended September 30, 2024 from $1.1 million for the nine months ended September 30, 2023. The decrease was primarily attributable to fewer average Franchise Agreements signed under the payment plan option.

Previous wording

Employee compensation and benefits expenses increased by $5.1 million, or 14%, to $42.6 million for the three months ended June 30, 2024 from $37.5 million for the three months ended June 30, 2023. Employee compensation and benefits expenses increased by $10.3 million, or 14%, to $84.7 million for the six months ended June 30, 2024 from $74.4 million for the six months ended June 30, 2023. The increase was primarily related to an investments in corporate producers, partnership, technology, and service functions, and an increase in equity-based compensation of 12% related to stock option awards during the year.

Current wording

Employee compensation and benefits expenses increased by $3.8 million, or 10%, to $43.2 million for the three months ended September 30, 2024 from $39.4 million for the three months ended September 30, 2023. Employee compensation and benefits expenses increased by $14.1 million, or 12%, to $127.9 million for the nine months ended September 30, 2024 from $113.8 million for the nine months ended September 30, 2023. The increase was primarily related to investments in corporate producers, partnership, technology, and service functions, and increases in equity-based compensation of 10% and 11% for the three and nine month periods related to stock options awarded during the year.

Previous wording

General and administrative expenses decreased by $0.5 million, or 3%, to $16.9 million for the three months ended June 30, 2024 from $17.3 million for the three months ended June 30, 2023. The decrease was primarily attributable to impairment charges in the prior year offset by increased spending on software. General and administrative expenses increased by $0.8 million, or 3%, to $34.0 million for the six months ended June 30, 2024 from $33.2 million for the six months ended June 30, 2023. This increase was primarily attributable to increased spending on software offset by a decrease in asset impairment charges and professional services.

Current wording

General and administrative expenses increased by $0.4 million, or 2%, to $15.2 million for the three months ended September 30, 2024 from $14.8 million for the three months ended September 30, 2023. The increase was primarily attributable to increased spending on software offset by more efficient spend on travel and marketing. General and administrative expenses increased by $1.2 million, or 3%, to $49.2 million for the nine months ended September 30, 2024 from $48.0 million for the nine months ended September 30, 2023. This increase was primarily attributable to increased spending on software offset by a decrease in asset impairment charges and professional services.

Previous wording

Bad debts decreased by $0.2 million, or 27%, to $0.7 million for the three months ended June 30, 2024 from $0.9 million for the three months ended June 30, 2023. Bad debts decreased by $0.8 million, or 30%, to $1.8 million for the six months ended June 30, 2024 from $2.6 million for the six months ended June 30, 2023. The decrease during the three and six months ended June 30, 2024 was primarily attributable to lower turnover of franchises during the periods.

Current wording

Bad debts decreased by $0.2 million, or 29%, to $0.6 million for the three months ended September 30, 2024 from $0.8 million for the three months ended September 30, 2023. Bad debts decreased by $1.0 million, or 30%, to $2.3 million for the nine months ended September 30, 2024 from $3.4 million for the nine months ended September 30, 2023. The decrease during the three and nine months ended September 30, 2024 was primarily attributable to lower turnover of franchises during the periods.

Previous wording

Depreciation and amortization increased by $0.3 million, or 11%, to $2.6 million for the three months ended June 30, 2024 from $2.4 million for the three months ended June 30, 2023. Depreciation and amortization increased by $0.7 million, or 16%, to $5.2 million for the six months ended June 30, 2024 from $4.5 million for the six months ended June 30, 2023. This increase during the three and six months ended June 30, 2024 was primarily attributable to increased spending on software development since June 30, 2023.

Current wording

Depreciation and amortization increased by $0.3 million, or 11%, to $2.6 million for the three months ended September 30, 2024 from $2.4 million for the three months ended September 30, 2023. Depreciation and amortization increased by $1.0 million, or 15%, to $7.8 million for the nine months ended September 30, 2024 from $6.8 million for the nine months ended September 30, 2023. This increase during the three and nine months ended September 30, 2024 was primarily attributable to increased spending on software development since September 30, 2023.

Previous wording

Interest expense increased by $0.3 million for the three months ended June 30, 2024, to $2.0 million from $1.7 million for the three months ended June 30, 2023. Interest expense increased to $3.5 million for the six months ended June 30, 2024 from $3.4 million for the six months ended June 30, 2023. The primary driver of this increase during the three and six months ended June 30, 2024 was an increase in total borrowings outstanding during the periods.

Current wording

Interest expense increased by $0.4 million for the three months ended September 30, 2024, to $2.1 million from $1.6 million for the three months ended September 30, 2023. Interest expense increased $0.5 million to $5.5 million for the nine months ended September 30, 2024 from $5.1 million for the nine months ended September 30, 2023. The primary driver of the increase during the three and nine months ended September 30, 2024 was an increase in total borrowings outstanding during the periods.

Previous wording

Other income (expense) consists of remeasurements of our TRA liability and interest income. Other income (expense) increased by $0.4 million for the three months ended June 30, 2024 as a result of interest income generated by cash held in interest-bearing checking accounts. Other income (expense) decreased by $6.3 million for the six months ended June 30, 2024 primarily due to remeasurements of our TRA liability due to an increase in the effective tax rate resulting from changes in state apportionment and related state filing requirements.

Current wording

Other income (expense) consists of remeasurements of our TRA liability and interest income. Other income (expense) increased by $0.5 million for the three months ended September 30, 2024 as a result of interest income generated by cash held in interest-bearing checking accounts. Other income (expense) decreased by $5.7 million for the nine months ended September 30, 2024 primarily due to remeasurements of our TRA liability due to an increase in the effective tax rate resulting from changes in state apportionment and related state filing requirements.

Previous wording

Tax expense increased by $0.7 million for the three months ended June 30, 2024, to $3.0 million from expense of $2.3 million for the three months ended June 30, 2023 primarily due to an increase in income before taxes. Tax (benefit) expense decreased by $7.8 million for the six months ended June 30, 2024 to a benefit of $5.6 million from expense of $2.2 million for six months ended June 30, 2023. This is primarily due to the deferred tax impact of changes in state apportionment and related state filing requirements.

Current wording

Tax expense increased by $1.6 million for the three months ended September 30, 2024, to $2.3 million from expense of $0.7 million for the three months ended September 30, 2023 primarily due to an increase in income before taxes. Tax (benefit) expense decreased by $6.2 million for the nine months ended September 30, 2024 to a benefit of $3.3 million from expense of $2.9 million for nine months ended September 30, 2023. This is primarily due to the deferred tax impact of changes in state apportionment and related state filing requirements.

Previous wording

The following tables show Total Written Premium placed by corporate agents and franchisees for the three and six months ended June 30, 2024 and 2023(in thousands).

Current wording

The following tables show Total Written Premium placed by corporate agents and franchisees for the three and nine months ended September 30, 2024 and 2023(in thousands).

Previous wording

As of June 30, 2024, we had 1.6 million Policies in Force compared to 1.5 million as of December 31, 2023 and 1.4 million as of June 30, 2023, representing a 7% and 11% increase, respectively.

Current wording

As of September 30, 2024, we had 1.6 million Policies in Force compared to 1.5 million as of December 31, 2023 and 1.5 million as of September 30, 2023, representing a 10% and 12% increase, respectively.

Previous wording

NPS has remained steady at 91 as of June 30, 2024, compared to 91 as of June 30, 2023.

Current wording

NPS has decreasedto 90 as of September 30, 2024, compared to 92 as of September 30, 2023.

Previous wording

Client Retention decreased modestly to 84% at June 30, 2024 when compared to 86% at December 31, 2023 and 88% at June 30, 2023. For the trailing twelve months ended June 30, 2024, we retained 99% of the premiums we distributed in the trailing twelve months ended June 30, 2023, which decreased modestly from the 101% premium retention at December 31, 2023. Our premium retention rate is higher than our Client Retention rate as a result of both premiums increasing year over year and additional coverages sold by our sales and service teams.

Current wording

Client Retention decreased modestly to 84% at September 30, 2024 when compared to 86% at December 31, 2023 and 87% at September 30, 2023. For the trailing twelve months ended September 30, 2024, we retained 99% of the premiums we distributed in the trailing twelve months ended September 30, 2023, which decreased modestly from the 101% premium retention at December 31, 2023. Our premium retention rate is higher than our Client Retention rate as a result of both premiums increasing year over year and additional coverages sold by our sales and service teams.

Previous wording

For the three months ended June 30, 2024, New Business Revenue grew 7% to $16.0 million, from $14.9 million for the three months ended June 30, 2023. For the six months ended June 30, 2024, New Business Revenue grew 5% to $29.8 million, from $28.3 million for the six months ended June 30, 2023. Growth in New Business Revenue during the three and six months ended June 30, 2024 was primarily driven by growth in productivity and rising premium rates.

Current wording

For the three months ended September 30, 2024, New Business Revenue grew 8% to $15.2 million, from $14.0 million for the three months ended September 30, 2023. For the nine months ended September 30, 2024, New Business Revenue grew 6% to $45.0 million, from $42.4 million for the nine months ended September 30, 2023. Growth in New Business Revenue during the three and nine months ended September 30, 2024 was primarily driven by growth in Franchise productivity, an increase in the number of Corporate sales agents, and rising premium rates.

Previous wording

For the three months ended June 30, 2024, Renewal Revenue grew 25% to $57.4 million, from $46.1 million for the three months ended June 30, 2023. For the six months ended June 30, 2024, Renewal Revenue grew 21% to $102.4 million, from $84.7 million for the six months ended June 30, 2023. Growth in Renewal Revenue during the three and six months ended June 30, 2024 was primarily driven by Client Retention of 84% at June 30, 2024, and rising premium rates.

Current wording

For the three months ended September 30, 2024, Renewal Revenue grew 19% to $58.3 million, from $49.1 million for the three months ended September 30, 2023. For the nine months ended September 30, 2024, Renewal Revenue grew 20% to $160.7 million, from $133.7 million for the nine months ended September 30, 2023. Growth in Renewal Revenue during the three and nine months ended September 30, 2024 was primarily driven by Client Retention of 84% at September 30, 2024, and rising premium rates.

Previous wording

Core Revenue increased by $12.4 million, or 20%, to $73.4 million for the three months ended June 30, 2024 from $61.0 million for the three months ended June 30, 2023. Core Revenue increased by $19.3 million, or 17%, to $132.2 million for the six months ended June 30, 2024 from $113.0 million for the six months ended June 30, 2023. The primary drivers of the increase during the three and six months ended June 30, 2024 were the higher number of policies in the renewal term from June 30, 2023 to June 30, 2024 as well as premium retention of 99% as of June 30, 2024.

Current wording

Core Revenue increased by $10.4 million, or 16%, to $73.5 million for the three months ended September 30, 2024 from $63.1 million for the three months ended September 30, 2023. Core Revenue increased by $29.7 million, or 17%, to $205.8 million for the nine months ended September 30, 2024 from $176.1 million for the nine months ended September 30, 2023. The primary drivers of the increase during the three and nine months ended September 30, 2024 were more new policies written driven by an increase in Franchise productivity and the number of Corporate sales agents, a higher number of policies in the renewal term assisted by client retention of 84%, and rising premium rates.

Previous wording

Cost Recovery Revenue decreased by $1.8 million, or 49%, to $1.9 million for the three months ended June 30, 2024 from $3.7 million for the three months ended June 30, 2023. The primary driver of the decrease was a decrease in total franchises. Cost Recovery Revenue decreased by $2.8 million, or 39%, to $4.4 million for the six months ended June 30, 2024 from $7.2 million for the six months ended June 30, 2023. The primary driver was a decrease in terminations of franchises, resulting in less acceleration of initial franchise fee revenue.

Current wording

Cost Recovery Revenue decreased by $1.1 million, or 40%, to $1.6 million for the three months ended September 30, 2024 from $2.8 million for the three months ended September 30, 2023. The primary driver of the decrease was a decrease in total franchises. Cost Recovery Revenue decreased by $3.9 million, or 39%, to $6.0 million for the nine months ended September 30, 2024 from $9.9 million for the nine months ended September 30, 2023. The primary driver was a decrease in terminations of franchises, resulting in less acceleration of initial franchise fee revenue.

Previous wording

Ancillary Revenue decreased by $1.7 million to $2.8 million for the three months ended June 30, 2024 from $4.6 million for the three months ended June 30, 2023. Ancillary Revenue decreased by $1.2 million to $5.9 million for the six months ended June 30, 2024 from $7.1 million for the six months ended June 30, 2023. The decrease was primarily attributable to additional profitability requirements in order to earn a contingent bonus.

Current wording

Ancillary Revenue decreased by $2.3 million to $2.9 million for the three months ended September 30, 2024 from $5.2 million for the three months ended September 30, 2023. Ancillary Revenue decreased by $3.4 million to $8.8 million for the nine months ended September 30, 2024 from $12.2 million for the nine months ended September 30, 2023. The decrease was primarily attributable to additional profitability requirements in order to earn a contingent bonus.

Previous wording

Adjusted EBITDA increased by $1.6 million, or 7%, to $24.7 million for the three months ended June 30, 2024 from $23.1 million for the three months ended June 30, 2023. Adjusted EBITDA increased by $3.1 million, or 9%, to $36.4 million for the six months ended June 30, 2024 from $33.2 million for the six months ended June 30, 2023. The primary driver of the increase in Adjusted EBITDA during the three and six months ended June 30, 2024 was growth in Total Revenue.

Current wording

Adjusted EBITDA increased by $3.7 million, or 17%, to $26.1 million for the three months ended September 30, 2024 from $22.4 million for the three months ended September 30, 2023. Adjusted EBITDA increased by $6.9 million, or 12%, to $62.5 million for the nine months ended September 30, 2024 from $55.7 million for the nine months ended September 30, 2023. The primary driver of the increase in Adjusted EBITDA during the three and nine months ended September 30, 2024 was growth in Total Revenue.

Previous wording

For the three months ended June 30, 2024, Adjusted EBITDA Margin was 32% compared to 33% for the three months ended June 30, 2023. For the six months ended June 30, 2024, Adjusted EBITDA Margin was 26% compared to 26% for the six months ended June 30, 2023 as a result of maintaining growth in expenses in proportion to growth in Total Revenue.

Current wording

For the three months ended September 30, 2024, Adjusted EBITDA Margin was 34% compared to 32% for the three months ended September 30, 2023. For the nine months ended September 30, 2024, Adjusted EBITDA Margin was 28% compared to 28% for the nine months ended September 30, 2023 as a result of maintaining growth in expenses in proportion to growth in Total Revenue.

Previous wording

The following tables show a reconciliation from Total Revenues to Core Revenue, Cost Recovery Revenue, and Ancillary Revenue for the three and six months ended June 30, 2024 and 2023(in thousands):

Current wording

The following tables show a reconciliation from Total Revenues to Core Revenue, Cost Recovery Revenue, and Ancillary Revenue for the three and nine months ended September 30, 2024 and 2023(in thousands):

Previous wording

The following tables show a reconciliation from net income to Adjusted EBITDA and Adjusted EBITDA margin for the three and six months ended June 30, 2024 and 2023(in thousands):

Current wording

The following tables show a reconciliation from net income to Adjusted EBITDA and Adjusted EBITDA margin for the three and nine months ended September 30, 2024 and 2023(in thousands):