Goosehead Insurance, Inc.
For the period ended Jun 30, 2025. Filed Jul 24, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 24, 2025
GSHD$55.55-2.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-24.
0001726978-25-000056
Item 2. Management’s discussion and analysis of financial condition and results of operationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-24.
0001726978-25-000104
Item 2. Management’s discussion and analysis of financial condition and results of operationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 163 previous paragraphs and 164 current paragraphs.
107 unchanged; 46 reworded; 11 added; 9 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 10 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
•Total revenue increased 20% from the second quarter of 2024 to $94.0 million
Current report
•Core Revenue* increased by 18% from the second quarter of 2024 to $86.8 million
Current report
For the three months ended June 30, 2025 revenue increased 20% to $94.0 million from $78.1 million for the three months ended June 30, 2024. For the six months ended June 30, 2025 revenue increased 19% to $169.6 million from $142.5 million for the six months ended June 30, 2024.
Current report
Renewal Commissions increased by $2.5 million, or 12%, to $23.1 million for the three months ended June 30, 2025 from $20.6 million for the three months ended June 30, 2024. Renewal Commissions increased by $3.5 million, or 10%, to $40.1 million for the six months ended June 30, 2025 from $36.6 million for the six months ended June 30, 2024. The increase during each of the three and six months ended June 30, 2025 was primarily driven by a $3.0 million release of the constraint on certain variable consideration related to policies placed and made effective in previous periods, as well as by client retention of 84%.
Current report
General and administrative expenses increased by $7.8 million, or 46%, to $24.6 million for the three months ended June 30, 2025 from $16.9 million for the three months ended June 30, 2024. The increase was primarily attributable to $4.7 million of asset impairment charges during the period and increased spending on technologies. General and administrative expenses increased by $8.2 million, or 24%, to $42.2 million for the six months ended June 30, 2025 from $34.0 million for the six months ended June 30, 2024. This increase in general and administrative expenses during each of the three and six months ended June 30, 2025 was primarily attributable to an increase of $4.3 million in asset impairment charges and increased spending on technologies and professional services.
Current report
Tax expense (benefit)
Current report
Tax expense (benefit) decreased by $1.1 million for the three months ended June 30, 2025, to a tax expense of $1.9 million from a tax expense $3.0 million for the three months ended June 30, 2024. The decrease in tax expense was primarily attributable to a decrease in pre-tax income and increases in tax benefits related to the exercise of stock options. Tax expense (benefit) increased by $5.8 million for the six months ended June 30, 2025 to an expense of $0.2 million from a benefit of $5.6 million for the six months ended June 30, 2024. The increase in tax expense (benefit) was primarily attributable to remeasurements of our deferred tax asset during the six months ended June 30, 2024 due to increases in our effective tax rate as we identified additional state filing requirements.
Current report
Adjusted EBITDA increased by $4.5 million, or 18%, to $29.2 million for the three months ended June 30, 2025 from $24.7 million for the three months ended June 30, 2024. Adjusted EBITDA increased by $8.3 million, or 23%, to $44.7 million for the six months ended June 30, 2025 from $36.4 million for the six months ended June 30, 2024. The primary driver of the increase in Adjusted EBITDA during each of the three and six months ended June 30, 2025 was growth in total revenue including the recognition of $4 million of revenue due to the release of a constraint on certain variable consideration related to policies placed and made effective in previous periods. The increase in total revenue during each of the three and six months ended June 30, 2025 was partially offset by an increase in employee compensation and benefits excluding equity-based compensation.
Current report
For the three months ended June 30, 2025, Adjusted EBITDA Margin was 31% compared to 32% for the three months ended June 30, 2024 as a result of employee compensation benefits excluding equity-based compensation growing at a faster rate than total revenue. For the six months ended June 30, 2025, Adjusted EBITDA Margin of 26% was unchanged when compared to 26% for the six months ended June 30, 2024.
Current report
Subsequent to the six months ended June 30, 2025, on July 9, 2025, the Company entered into Amendment No. 1 to the 2025 Credit Agreement in order to refinance the outstanding balance of the 2025 Initial Term Loan with a new term loan facility (the "Term B-1 Facility"). The amendment reduced the applicable interest rate on our term loan borrowings under the facility by 0.50% to a rate of Term SOFR plus 3.00%.
Current report
(4)On July 9, 2025, the Company entered into an amendment to our current facility which reduced the applicable interest rate on our term loan borrowings by 0.50% to a rate of Term SOFR plus 3.00%. See "Note 8. Debt" in the condensed consolidated financial statements.
Removed paragraphs (9)
Previous report
•Total revenue increased 17% from the first quarter of 2024 to $75.6 million
Previous report
•Core Revenue* increased by 17% from the first quarter of 2024 to $69.1 million
Previous report
For the three months ended March 31, 2025 revenue increased 17% to $75.6 million from $64.5 million for the three months ended March 31, 2024.
Previous report
Renewal Commissions increased by $1.0 million, or 6%, to $17.0 million for the three months ended March 31, 2025 from $16.0 million for the three months ended March 31, 2024. The increase during the three months ended March 31, 2025 was primarily attributable to an increase in the number of policies in the renewal term from March 31, 2024 to March 31, 2025, assisted by client retention of 84%, and premium rate increases.
Previous report
General and administrative expenses increased by $0.4 million, or 2%, to $17.6 million for the three months ended March 31, 2025 from $17.2 million for the three months ended March 31, 2024. This increase was primarily attributable to increased spending on technologies and professional services, offset by a decrease in asset impairment charges.
Previous report
Tax benefit
Previous report
Tax benefit decreased by $6.9 million for the three months ended March 31, 2025 to a benefit of $1.7 million from a benefit of $8.6 million for three months ended March 31, 2024. This is primarily due to an increase in income before taxes and due to remeasurements of our deferred tax asset during the three months ended March 31, 2024 due to changes in state apportionment and related state filing requirements.
Previous report
Adjusted EBITDA increased by $3.8 million, or 32%, to $15.5 million for the three months ended March 31, 2025 from $11.7 million for the three months ended March 31, 2024. The primary driver of the increase in Adjusted EBITDA during the three months ended March 31, 2025 was growth in Total Revenue, slower growth in both Employee compensation and benefits and General and administrative expenses, and a decrease in Bad debts.
Previous report
For the three months ended March 31, 2025, Adjusted EBITDA Margin was 21% compared to 18% for the three months ended March 31, 2024 as a result of expenses growing at a slower pace than our growth in Total Revenue.
Reworded paragraphs (46)
Previous wording
Financial Highlights for the First Quarter of 2025:
Current wording
Financial Highlights for the Second Quarter of 2025:
Previous wording
•Total Written Premiums placed increased 22% from the prior-year period to $1.0 billion
Current wording
•Total Written Premiums placed increased 18% from the prior-year period to $1.2 billion
Previous wording
•Net income increased by $0.8 million from the first quarter of 2024 to $2.6 million, or 4% of total revenues
Current wording
•Net income decreased by $2.6 million from the second quarter of 2024 to $8.3 million, or 9% of total revenues
Previous wording
•Adjusted EBITDA* increased 32% from the first quarter of 2024 to $15.5 million, or 21% of total revenues
Current wording
•Adjusted EBITDA* increased 18% from the second quarter of 2024 to $29.2 million, or 31% of total revenues
Previous wording
•Basic and diluted earnings per share were $0.09 and $0.09, respectively, and Adjusted EPS* was $0.26 per share for the three months ended March 31, 2025
Current wording
•Basic and diluted earnings per share were $0.20 and $0.18, respectively, and Adjusted EPS* was $0.49 per share for the three months ended June 30, 2025
Previous wording
•Policies in Force increased 13% from March 31, 2024 to 1,729,000 at March 31, 2025
Current wording
•Policies in Force increased 13% from June 30, 2024 to 1,793,000 at June 30, 2025
Previous wording
•Corporate sales headcount increased 46% from March 31, 2024 to 426 at March 31, 2025
Current wording
•Corporate sales headcount increased 53% from June 30, 2024 to 479 at June 30, 2025
Previous wording
◦As of March 31, 2025, 254 of these Corporate sales agents had less than one year of tenure and 172 had greater than one year of tenure
Current wording
◦As of June 30, 2025, 282 of these Corporate sales agents had less than one year of tenure and 197 had greater than one year of tenure
Previous wording
•Total operating franchises decreased 5% from March 31, 2024 to 1,098 at March 31, 2025
Current wording
•Total operating franchises decreased 4% from June 30, 2024 to 1,075 at June 30, 2025
Previous wording
◦As of March 31, 2025, 100 operating Franchisees had less than one year of tenure and 998 operating Franchisees had greater than one year of tenure
Current wording
◦As of June 30, 2025, 95 operating Franchisees had less than one year of tenure and 980 operating Franchisees had greater than one year of tenure
Previous wording
For the three months ended March 31, 2025, revenue increased by 17% to $75.6 million from $64.5 million for the three months ended March 31, 2024. Total Written Premium, which we believe is the best leading indicator of future revenue, increased 22% for the three months ended March 31, 2025 to $1.0 billion from $0.82 billion for the three months ended March 31, 2024. 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 June 30, 2025, revenue increased by 20% to $94.0 million from $78.1 million for the three months ended June 30, 2024. For the six months ended June 30, 2025, revenue increased by 19% to $169.6 million from $142.5 million for the six months ended June 30, 2024. Total Written Premium, which we believe is the best leading indicator of future revenue, increased 18% to $1.18 billion for the three months ended June 30, 2025 from $999 million for the three months ended June 30, 2024. Total Written Premium increased 20% for the six months ended June 30, 2025 to $2.2 billion from $1.82 billion for the six months ended June 30, 2024. 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 months ended March 31, 2025 and 2024. 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 six months ended June 30, 2025 and 2024. This information is derived from our accompanying condensed consolidated financial statements prepared in accordance with GAAP.
Previous wording
New Business Commissions increased by $0.1 million, or 1%, to $5.8 million for the three months ended March 31, 2025 from $5.7 million for the three months ended March 31, 2024. The increase during the three months ended March 31, 2025 was primarily driven by an increase in the number of Corporate sales agents, offset by product challenges in Texas where our corporate network still has large exposure.
Current wording
New Business Commissions increased by $0.9 million, or 13%, to $7.6 million for the three months ended June 30, 2025 from $6.7 million for the three months ended June 30, 2024. New Business Commissions increased by $1.0 million, or 8%, to $13.3 million for the six months ended June 30, 2025 from $12.4 million for the six months ended June 30, 2024. The increase during each of the three and six months ended June 30, 2025 was primarily driven by an increase in the number of Corporate sales agents, offset by product challenges in Texas where our corporate network still has large exposure.
Previous wording
Revenue from Agency Fees increased by $0.3 million, or 17%, to $2.2 million for the three months ended March 31, 2025 from $1.9 million for the three months ended March 31, 2024. The increase in Agency Fees during the three months ended March 31, 2025 was primarily attributable to an increase in the average fee charged, as well as an increase in the number of policies written where an agency fee was charged.
Current wording
Revenue from Agency Fees increased by $0.8 million, or 36%, to $2.9 million for the three months ended June 30, 2025 from $2.1 million for the three months ended June 30, 2024. Revenue from Agency Fees increased by $1.1 million, or 27%, to $5.1 million for the six months ended June 30, 2025 from $4.0 million for the six months ended June 30, 2024. The increase in Agency Fees during each of the three and six months ended June 30, 2025 was primarily attributable to an increase in the average fee charged, as well as an increase in the number of policies written where an agency fee was charged.
Previous wording
Revenue from Contingent Commissions increased by $1.8 million, to $4.5 million for the three months ended March 31, 2025 from $2.7 million for the three months ended March 31, 2024. The increase during the three months ended March 31, 2025 was primarily attributable to an increase in Total Written Premium and receiving and qualifying for additional Contingent Commissions.
Current wording
Revenue from Contingent Commissions increased by $2.3 million to $4.5 million for the three months ended June 30, 2025 from $2.2 million for the three months ended June 30, 2024. Revenue from Contingent Commissions increased by $4.1 million, to $9.0 million for the six months ended June 30, 2025 from $4.9 million for the six months ended June 30, 2024. The increase during each of the three and six months ended June 30, 2025 was primarily attributable to an increase in Total Written Premium and receiving and qualifying for additional Contingent Commissions.
Previous wording
Revenue from Renewal Royalty Fees increased by $8.2 million, or 28%, to $37.2 million for the three months ended March 31, 2025 from $29.1 million for the three months ended March 31, 2024. The increase in revenue from Renewal Royalty Fees during the three months ended March 31, 2025 was primarily attributable to an increase in the number of policies in the renewal term, assisted by client retention of 84%, and rising premium rates.
Current wording
Revenue from Renewal Royalty Fees increased by $8.6 million, or 23%, to $45.4 million for the three months ended June 30, 2025 from $36.8 million for the three months ended June 30, 2024. Revenue from Renewal Royalty Fees increased by $16.7 million, or 25%, to $82.6 million for the six months ended June 30, 2025 from $65.9 million for the six months ended June 30, 2024. The increase in revenue from Renewal Royalty Fees during each of the three and six months ended June 30, 2025 was primarily attributable to an increase in the number of policies in the renewal term, assisted by client retention of 84%; rising premium rates; and $1.0 million from the release of the constraint on certain variable consideration related to policies placed and made effective in previous periods.
Previous wording
Revenue from New Business Royalty Fees increased by $0.7 million, or 11%, to $6.9 million for the three months ended March 31, 2025 from $6.2 million for the three months ended March 31, 2024. The increase in revenue from New Business Royalty Fees during the three months ended March 31, 2025 was primarily attributable to an increase in franchise productivity and rising premium rates.
Current wording
Revenue from New Business Royalty Fees increased by $0.7 million, or 9%, to $7.8 million for the three months ended June 30, 2025 from $7.2 million for the three months ended June 30, 2024. Revenue from New Business Royalty Fees increased by $1.3 million, or 10%, to $14.7 million for the six months ended June 30, 2025 from $13.4 million for the six months ended June 30, 2024. The increase in revenue from New Business Royalty Fees during each of the three and six months ended June 30, 2025 was primarily attributable to an increase in franchise productivity and rising premium rates.
Previous wording
Revenue from Initial Franchise Fees decreased by $0.9 million, or 40%, to $1.3 million for the three months ended March 31, 2025 from $2.2 million for the three months ended March 31, 2024. 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 $0.4 million, or 24%, to $1.2 million for the three months ended June 30, 2025 from $1.6 million for the three months ended June 30, 2024. Revenue from Initial Franchise Fees decreased by $1.3 million, or 33%, to $2.6 million for the six months ended June 30, 2025 from $3.9 million for the six months ended June 30, 2024. The decrease in Revenue from Initial Franchise Fees during each of the three and six months ended June 30, 2025 was primarily attributable to lower turnover of franchises during the period, which avoids accelerated recognition of Initial Franchise Fees for terminated franchises.
Previous wording
Interest income decreased by $0.1 million, or 24%, to $0.2 million for the three months ended March 31, 2025 from $0.3 million for the three months ended March 31, 2024. The decrease was primarily attributable to fewer franchises operating under the payment plan option during the period.
Current wording
Interest income decreased by $0.1 million, or 27%, to $0.2 million for the three months ended June 30, 2025 from $0.2 million for the three months ended June 30, 2024. Interest income decreased by $0.1 million, or 26%, to $0.4 million for the six months ended June 30, 2025 from $0.5 million for the six months ended June 30, 2024. The decrease in interest income during each of the three and six months ended June 30, 2025 was primarily attributable to fewer franchises operating under the payment plan option during the period.
Previous wording
Employee compensation and benefits expenses increased by $6.2 million, or 15%, to $48.3 million for the three months ended March 31, 2025 from $42.1 million for the three months ended March 31, 2024. The increase was primarily related to investments in corporate producers and our service and technology functions.
Current wording
Employee compensation and benefits expenses increased by $7.8 million, or 18%, to $50.4 million for the three months ended June 30, 2025 from $42.6 million for the three months ended June 30, 2024. Employee compensation and benefits expenses increased by $14.0 million, or 17%, to $98.7 million for the six months ended June 30, 2025 from $84.7 million for the six months ended June 30, 2024. The increase in employee compensation during each of the three and six months ended June 30, 2025 was primarily related to investments in corporate producers and our service and technology functions.
Previous wording
Bad debts decreased by $0.7 million, or 64%, to $0.4 million for the three months ended March 31, 2025 from $1.1 million for the three months ended March 31, 2024. The decrease during the three months ended March 31, 2025 was primarily attributable to lower turnover of franchises during the periods.
Current wording
Bad debts decreased by $0.1 million, or 16%, to $0.6 million for the three months ended June 30, 2025 from $0.7 million for the three months ended June 30, 2024. Bad debts decreased by $0.8 million, or 46%, to $1.0 million for the six months ended June 30, 2025 from $1.8 million for the six months ended June 30, 2024. The decrease during each of the three and six months ended June 30, 2025 was primarily attributable to lower turnover of franchises during the periods.
Previous wording
Depreciation and amortization increased by $0.1 million, or 4%, to $2.7 million for the three months ended March 31, 2025 from $2.6 million for the three months ended March 31, 2024. This increase during the three months ended March 31, 2025 was primarily attributable to increased spending on software development since March 31, 2024.
Current wording
Depreciation and amortization increased by $0.2 million, or 6%, to $2.8 million for the three months ended June 30, 2025 from $2.6 million for the three months ended June 30, 2024. Depreciation and amortization increased by $0.3 million, or 5%, to $5.5 million for the six months ended June 30, 2025 from $5.2 million for the six months ended June 30, 2024. This increase during each of the three and six months ended June 30, 2025 was primarily attributable to increased spending on software development since June 30, 2024.
Previous wording
Interest expense increased $4.3 million to $5.8 million for the three months ended March 31, 2025 from $1.5 million for the three months ended March 31, 2024. The primary driver of the increase during the three months ended March 31, 2025 was an increase in total borrowings outstanding during the periods.
Current wording
Interest expense increased by $4.3 million for the three months ended June 30, 2025, to $6.3 million from $2.0 million for the three months ended June 30, 2024. Interest expense increased $8.7 million to $12.1 million for the six months ended June 30, 2025 from $3.5 million for the six months ended June 30, 2024. The primary driver of the increase during each of the three and six months ended June 30, 2025 was an increase in total borrowings outstanding during the periods.
Previous wording
Other income (expense) consists of remeasurements of our TRA liability, interest earned on cash balances, and loss on debt extinguishment. Other income (expense) increased by $6.9 million for the three months ended March 31, 2025 primarily due to remeasurements of our TRA liability during the three months ended March 31, 2024 due to changes in state apportionment and related state filing requirements.
Current wording
Other income (expense) consists of remeasurements of our TRA liability, interest earned on cash balances, and loss on debt extinguishment. Other income (expense) increased by $0.4 million for the three months ended June 30, 2025 as a result of interest income generated by cash held in interest-bearing checking accounts. Other income (expense) increased by $7.3 million for the six months ended June 30, 2025 primarily due to remeasurements of our TRA liability during the six months ended June 30, 2024 due to increases in our effective tax rate as we identified additional state filing requirements.
Previous wording
The following tables show Total Written Premium placed by corporate agents and franchisees for the three months ended March 31, 2025 and 2024(in thousands).
Current wording
The following tables show Total Written Premium placed by corporate agents and franchisees for the three and six months ended June 30, 2025 and 2024(in thousands).
Previous wording
As of March 31, 2025, we had 1.7 million Policies in Force compared to 1.7 million as of December 31, 2024 and 1.5 million as of March 31, 2024, representing a 3% and a 13% increase, respectively.
Current wording
As of June 30, 2025, we had 1.8 million Policies in Force compared to 1.7 million as of December 31, 2024 and 1.6 million as of June 30, 2024, representing a 7% and a 13% increase, respectively.
Previous wording
NPS has decreasedto 87 as of March 31, 2025, compared to 91 as of March 31, 2024.
Current wording
NPS has decreasedto 84 as of June 30, 2025, compared to 91 as of June 30, 2024.
Previous wording
Client Retention of 84% at March 31, 2025 remained steady when compared to 84% at December 31, 2024, and decreased modestly compared to 85% at March 31, 2024. The modest decrease was impacted by premium rate increases yet supported by the service team’s continued focus on delivering highly differentiated service levels. For the trailing twelve months ended March 31, 2025, we retained 98% of the premiums we distributed in the trailing twelve months ended March 31, 2024, which remained flat from the 98% premium retention at December 31, 2024. 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 of 84% at June 30, 2025 remained steady when compared to 84% at December 31, 2024, and 84% at June 30, 2024 despite premium rate increases, supported by our service team’s continued focus on delivering highly differentiated service levels. For the trailing twelve months ended June 30, 2025, we retained 95% of the premiums we distributed in the trailing twelve months ended June 30, 2024, which decreased from the 98% premium retention at December 31, 2024. The decline in premium retention is primarily attributable to a moderating premium rate increases combined with stable client retention. 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 March 31, 2025, New Business Revenue grew 8% to $14.9 million, from $13.8 million for the three months ended March 31, 2024. Growth in New Business Revenue during the three months ended March 31, 2025 was primarily driven by growth in Franchise productivity and rising premium rates.
Current wording
For the three months ended June 30, 2025, New Business Revenue grew 14% to $18.3 million, from $16.0 million for the three months ended June 30, 2024. For the six months ended June 30, 2025, New Business Revenue grew 11% to $33.2 million, from $29.8 million for the six months ended June 30, 2024. Growth in New Business Revenue during each of the three and six months ended June 30, 2025 was primarily driven by an increase in the number of Corporate sales agents, growth in Franchise productivity, and rising premium rates.
Previous wording
Any diminished capacity of Carriers to place new business (including as a result of the recent wildfires in Southern California and hurricanes in Florida) could slow the growth of our New Business Revenue in the future.
Current wording
Any diminished capacity of Carriers to place new business (including as a result of the recent wildfires in Southern California, hurricanes in Florida, and floods in Texas) could slow the growth of our New Business Revenue in the future.
Previous wording
For the three months ended March 31, 2025, Renewal Revenue grew 20% to $54.2 million, from $45.0 million for the three months ended March 31, 2024. Growth in Renewal Revenue during the three months ended March 31, 2025 was primarily driven by an increase in the number of policies in the renewal term, assisted by Client Retention of 84% at March 31, 2025, and rising premium rates.
Current wording
For the three months ended June 30, 2025, Renewal Revenue grew 19% to $68.5 million, from $57.4 million for the three months ended June 30, 2024. For the six months ended June 30, 2025, Renewal Revenue grew 20% to $122.7 million, from $102.4 million for the six months ended June 30, 2024. Growth in Renewal Revenue during each of the three and six months ended June 30, 2025 was driven by the release of the constraint on certain variable consideration related to policies placed and made effective in previous periods, an increase in the number of policies in the renewal term assisted by Client Retention of 84% at June 30, 2025, and rising premium rates.
Previous wording
Continued declines in client retention caused by increases in premium rates could slow the growth of our Renewal Revenue in the future.
Current wording
Declines in client retention caused by increases in premium rates could slow the growth of our Renewal Revenue in the future.
Previous wording
Core Revenue increased by $10.3 million, or 17%, to $69.1 million for the three months ended March 31, 2025 from $58.8 million for the three months ended March 31, 2024. The primary drivers of the increase during the three months ended March 31, 2025 was an increase in policies in their renewal term, assisted by Client Retention of 84%; more new policies written driven by an increase in Franchise productivity; and rising premium rates.
Current wording
Core Revenue increased by $13.4 million, or 18%, to $86.8 million for the three months ended June 30, 2025 from $73.4 million for the three months ended June 30, 2024. Core Revenue increased by $23.7 million, or 18%, to $155.9 million for the six months ended June 30, 2025 from $132.2 million for the six months ended June 30, 2024. The primary drivers of the increase during each of the three and six months ended June 30, 2025 was an increase in policies in their renewal term, assisted by Client Retention of 84%; more new policies written driven by an increase in the number of Corporate sales agents and Franchise productivity; rising premium rates; and the release of the constraint on certain variable consideration related to policies placed and made effective in previous periods.
Previous wording
Cost Recovery Revenue decreased by $1.0 million, or 39%, to $1.5 million for the three months ended March 31, 2025 from $2.5 million for the three months ended March 31, 2024. 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 $0.4 million, or 24%, to $1.4 million for the three months ended June 30, 2025 from $1.9 million for the three months ended June 30, 2024. The primary driver of the decrease was a decrease in total franchises. Cost Recovery Revenue decreased by $1.4 million, or 32%, to $3.0 million for the six months ended June 30, 2025 from $4.4 million for the six months ended June 30, 2024. The primary driver was a decrease in terminations of franchises, resulting in less acceleration of initial franchise fee revenue.
Previous wording
Ancillary Revenue increased by $1.8 million to $4.9 million for the three months ended March 31, 2025 from $3.1 million for the three months ended March 31, 2024. The increase was primarily attributable to an increase in Total Written Premium and receiving and qualifying for additional Contingent Commissions.
Current wording
Ancillary Revenue increased by $3.0 million to $5.8 million for the three months ended June 30, 2025 from $2.8 million for the three months ended June 30, 2024. Ancillary Revenue increased by $4.8 million to $10.7 million for the six months ended June 30, 2025 from $5.9 million for the six months ended June 30, 2024. The increase during each of the three and six months ended June 30, 2025 was primarily attributable to an increase in Total Written Premium and receiving and qualifying for additional Contingent Commissions.
Previous wording
(1) Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue ($15.5 million/$75.6 million), and ($11.7 million/$64.5 million) for the three months ended March 31, 2025 and 2024, respectively.
Current wording
(1) Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue ($29,152/$94,027) and ($24,661/$78,088) for the three months ended June 30, 2025 and 2024, respectively. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue ($44,672/$169,611), and ($36,388/$142,548) for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
(1) Calculated as equity-based compensation divided by sum of weighted average Class A and Class B shares [$6.2 million/(24.8 million + 12.6 million)] for the three months ended March 31, 2025 and [$7.4 million/ (25.1 million + 12.9 million)] for the three months ended March 31, 2024.
Current wording
(1) Calculated as equity-based compensation divided by sum of weighted average Class A and Class B shares [$6.0 million/(25.2 million + 12.3 million)] for the three months ended June 30, 2025 and [$6.6 million/ (24.7 million + 12.8 million)] for the three months ended June 30, 2024. Calculated as equity-based compensation divided by sum of weighted average Class A and Class B shares [$12.3 million/(25.0 million + 12.5 million)] for the six months ended June 30, 2025 and [$14.0 million/ (24.9 million + 12.8 million)] for the six months ended June 30, 2024.
Previous wording
(2) Calculated as impairment expense divided by sum of weighted average Class A and Class B shares [$0.3 million/(25.1 million + 12.9 million)] for the three months ended March 31, 2024. No impairment was recorded for the three months ended March 31, 2025.
Current wording
(2) Calculated as impairment expense divided by sum of weighted average Class A and Class B shares [$4.7 million/(25.2 million + 12.3 million)] for the three months ended June 30, 2025 and [$4.7 million/(25.0 million + 12.5 million)] for the six months ended June 30, 2025. Calculated as impairment expense divided by sum of weighted average Class A and Class B shares [$0.3 million/(24.9 million + 12.8 million)] for the six months ended June 30, 2024. No impairment was recorded for the three months ended June 30, 2024.
Previous wording
We have managed our historical liquidity and capital requirements primarily through the receipt of revenues. Our primary cash flow activities involve: (1) generating cash flow from Commissions and Fees, which largely includes New Business Commissions, Renewal Commissions, and Agency Fees; (2) generating cash flow from Franchise Revenues operations, which largely includes Initial Franchise Fees and Royalty Fees; (3) borrowings, interest payments and repayments under our credit agreement; and (4) issuing shares of Class A common stock. As of March 31, 2025, our cash and cash equivalents balance was $70.2 million. We have used cash flow from operations primarily to pay compensation and related expenses, general, administrative and other expenses, debt service, special dividends, share repurchases, and distributions to our owners.
Current wording
We have managed our historical liquidity and capital requirements primarily through the receipt of revenues. Our primary cash flow activities involve: (1) generating cash flow from Commissions and Fees, which largely includes New Business Commissions, Renewal Commissions, and Agency Fees; (2) generating cash flow from Franchise Revenues operations, which largely includes Initial Franchise Fees and Royalty Fees; (3) borrowings, interest payments and repayments under our credit agreement; and (4) issuing shares of Class A common stock. As of June 30, 2025, our cash and cash equivalents balance was $92.4 million. We have used cash flow from operations primarily to pay compensation and related expenses, general, administrative and other expenses, debt service, special dividends, share repurchases, and distributions to our owners.
Previous wording
See "Note 8. Debt" in the condensed consolidated financial statements included herein for a discussion of the Company's credit facilities.
Current wording
See "Note 8. Debt" in the condensed consolidated financial statements included herein for additional discussion of the Company's credit facilities.
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Previous report — wording carried elsewhere
Holders of Goosehead Financial, LLC Units (other than Goosehead Insurance, Inc.) may, subject to certain conditions and transfer restrictions described above, redeem or exchange their LLC Units for shares of Class A common stock of Goosehead Insurance, Inc. on a one-for-one basis. Goosehead Financial, LLC intends to make an election under Section 754 of the Internal Revenue Code of 1986, as amended, and the regulations thereunder (the “Code”) effective for each taxable year in which a redemption or exchange of LLC Units for shares of Class A common stock occurs, which is expected to result in increases to the tax basis of the assets of Goosehead Financial, LLC at the time of a redemption or exchange of LLC Units. The redemptions or exchanges are expected to result in increases in the tax basis of the tangible and intangible assets of Goosehead Financial, LLC. These increases in tax basis may reduce the amount of tax that Goosehead Insurance, Inc. would otherwise be required to pay in the future. We have entered into a tax receivable agreement with the Pre-IPO LLC Members that provides for the payment by us to the Pre-IPO LLC Members of 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax or franchise tax that we actually realize as a result of (i) any increase in tax basis in