Goosehead Insurance, Inc.

Previous wording

Financial Highlights for the First Quarter of 2026:

Current wording

Financial Highlights for the Second Quarter of 2026:

Previous wording

•Total Written Premiums placed increased 13% from the prior-year period to $1.1 billion

Current wording

•Total Written Premiums placed increased 14% from the prior-year period to $1.34 billion

Previous wording

•Net income increased by $5.4 million from the first quarter of 2025 to $8.0 million, or 9% of total revenues

Current wording

•Net income increased by $8.7 million from the second quarter of 2025 to $17.0 million, or 15% of total revenues

Previous wording

•Adjusted EBITDA* increased 57% from the first quarter of 2025 to $24.4 million, or 26% of total revenues

Current wording

•Adjusted EBITDA* increased 30% from the second quarter of 2025 to $37.9 million, or 33% of total revenues

Previous wording

•Basic and diluted earnings per share were $0.20 and $0.19, respectively, and Adjusted EPS* was $0.37 per share for the three months ended March 31, 2026

Current wording

•Basic and diluted earnings per share were $0.42 and $0.41, respectively, and Adjusted EPS* was $0.64 per share for the three months ended June 30, 2026

Previous wording

•Corporate sales headcount increased 13% from March 31, 2025 to 482 at March 31, 2026

Current wording

•Corporate sales headcount increased 22% from June 30, 2025 to 583 at June 30, 2026

Previous wording

◦As of March 31, 2026, 275 of these Corporate sales agents had less than one year of tenure and 207 had greater than one year of tenure

Current wording

◦As of June 30, 2026, 323 of these Corporate sales agents had less than one year of tenure and 260 had greater than one year of tenure

Previous wording

•Total operating franchises decreased 13% from March 31, 2025 to 956 at March 31, 2026

Current wording

•Total operating franchises decreased 16% from June 30, 2025 to 898 at June 30, 2026

Previous wording

◦As of March 31, 2026, 77 operating Franchisees had less than one year of tenure and 879 operating Franchisees had greater than one year of tenure

Current wording

◦As of June 30, 2026, 69 operating Franchisees had less than one year of tenure and 829 operating Franchisees had greater than one year of tenure

Previous wording

•Total Franchise agents increased 3% from March 31, 2025 to 2,150 at March 31, 2026

Current wording

•Total Franchise agents increased 5% from June 30, 2025 to 2,190 at June 30, 2026

Previous wording

For the three months ended March 31, 2026, revenue increased by 23% to $93.1 million from $75.6 million for the three months ended March 31, 2025. Total Written Premium, which we believe is the best leading indicator of future revenue, increased 13% for the three months ended March 31, 2026 to $1.1 billion from $1.0 billion for the three months ended March 31, 2025. 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, 2026, total revenue increased by 21% to $113.4 million from $94.0 million for the three months ended June 30, 2025. For the six months ended June 30, 2026, total revenue increased by 22% to $206.5 million from $169.6 million for the six months ended June 30, 2025. Total Written Premium, which we believe is the best leading indicator of future revenue, increased 14% to $1.34 billion for the three months ended June 30, 2026 from $1.18 billion for the three months ended June 30, 2025. Total Written Premium increased 13% for the six months ended June 30, 2026 to $2.47 billion from $2.18 billion for the six months ended June 30, 2025. 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

•Contingent Commissions - although high margin, Contingent Commissions are unpredictable and susceptible to weather events and Carrier underwriting results. Management does not rely on Contingent Commissions for operating cash flow or budget planning.

Current wording

•Contingent Commissions - although high margin, Contingent Commissions are unpredictable and susceptible to weather events and Carrier underwriting results.

Previous wording

The following is a discussion of our consolidated results of operations for each of the three months ended March 31, 2026 and 2025. 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, 2026 and 2025. This information is derived from our accompanying condensed consolidated financial statements prepared in accordance with GAAP.

Previous wording

Revenue from Agency Fees increased by $0.1 million, or 6%, to $2.4 million for the three months ended March 31, 2026 from $2.2 million for the three months ended March 31, 2025. The increase in Agency Fees during the three months ended March 31, 2026 was primarily attributable to an increase in the number of policies written where an agency fee was charged.

Current wording

Agency Fees increased by $0.2 million, or 6%, to $3.1 million for the three months ended June 30, 2026 from $2.9 million for the three months ended June 30, 2025. Agency Fees increased by $0.3 million, or 6%, to $5.5 million for the six months ended June 30, 2026 from $5.1 million for the six months ended June 30, 2025. The increase in Agency Fees during the three and six months ended June 30, 2026 was primarily attributable to an increase in the number of policies written where an agency fee was charged.

Previous wording

Revenue from Contingent Commissions increased by $6.2 million to $10.7 million for the three months ended March 31, 2026 from $4.5 million for the three months ended March 31, 2025. The increase during the three months ended March 31, 2026 was primarily attributable to changes in the estimated transaction price for variable consideration under contingent commission arrangements which was previously constrained and recognized as the uncertainty was resolved.

Current wording

Contingent Commissions increased by $11.2 million to $15.7 million for the three months ended June 30, 2026 from $4.5 million for the three months ended June 30, 2025. The increase was primarily attributable to new contingent commission agreements executed during the period, and favorable experience against the underlying requirements such as loss ratios and growth rates of such arrangements. Contingent Commissions increased by $17.4 million, or 195%, to $26.4 million for the six months ended June 30, 2026 from $9.0 million for the six months ended June 30, 2025. The increase during the six months ended June 30, 2026 was primarily attributable to new contingent commission agreements executed during the period, favorable experience against the underlying requirements of such arrangements such as loss ratios and growth rates, and changes in the estimated transaction price for variable consideration under contingent commission arrangements which was previously constrained and recognized as the uncertainty was resolved.

Previous wording

Revenue from Renewal Royalty Fees increased by $6.4 million, or 17%, to $43.6 million for the three months ended March 31, 2026 from $37.2 million for the three months ended March 31, 2025. The increase in revenue from Renewal Royalty Fees during the three months ended March 31, 2026 was primarily attributable to an increase in the number of policies in the renewal term, assisted by client retention of 85%.

Current wording

Renewal Royalty Fees increased by $7.1 million, or 16%, to $52.5 million for the three months ended June 30, 2026 from $45.4 million for the three months ended June 30, 2025. Renewal Royalty Fees increased by $13.5 million, or 16%, to $96.1 million for the six months ended June 30, 2026 from $82.6 million for the six months ended June 30, 2025. The increase in revenue from Renewal Royalty Fees during the three and six months ended June 30, 2026 was primarily attributable to an increase in the number of policies in the renewal term, assisted by client retention of 86%, partially offset by $1.0 million recognized in the prior year 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 $1.0 million, or 14%, to $7.9 million for the three months ended March 31, 2026 from $6.9 million for the three months ended March 31, 2025. The increase in revenue from New Business Royalty Fees during the three months ended March 31, 2026 was primarily attributable to an increase in the number of franchise agents and an increase in franchise productivity.

Current wording

New Business Royalty Fees increased by $1.6 million, or 20%, to $9.4 million for the three months ended June 30, 2026 from $7.8 million for the three months ended June 30, 2025. New Business Royalty Fees increased by $2.5 million, or 17%, to $17.3 million for the six months ended June 30, 2026 from $14.7 million for the six months ended June 30, 2025. The increase in New Business Royalty Fees during the three and six months ended June 30, 2026 was primarily attributable to an increase in the number of franchise agents and an increase in franchise productivity.

Previous wording

Revenue from Initial Franchise Fees increased at $0.3 million, or 20%, to $1.6 million for the three months ended March 31, 2026 from $1.3 million for the three months ended March 31, 2025. The increase in Revenue from Initial Franchise Fees during the three months ended March 31, 2026 was primarily attributable to higher turnover of franchises during the period, which accelerates recognition of Initial Franchise Fees for franchises that were terminated or transferred during the period.

Current wording

Initial Franchise Fees increased by $0.1 million, or 9%, to $1.4 million for the three months ended June 30, 2026 from $1.2 million for the three months ended June 30, 2025. Initial Franchise Fees increased by $0.4 million, or 15%, to $3.0 million for the six months ended June 30, 2026 from $2.6 million for the six months ended June 30, 2025. The increase in Initial Franchise Fees during the three and six months ended June 30, 2026 was primarily attributable to higher turnover of franchises during the period, which accelerates recognition of Initial Franchise Fees for franchises that were terminated or transferred during the period.

Previous wording

Interest income decreased by $0.1 million, or 38%, to $0.1 million for the three months ended March 31, 2026 from $0.2 million for the three months ended March 31, 2025. The decrease in interest income during the three months ended March 31, 2026 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 47%, to $0.1 million for the three months ended June 30, 2026 from $0.2 million for the three months ended June 30, 2025. Interest income decreased by $0.2 million, or 42%, to $0.2 million for the six months ended June 30, 2026 from $0.4 million for the six months ended June 30, 2025. The decrease in interest income during the three and six months ended June 30, 2026 was primarily attributable to fewer franchises operating under the payment plan option during the period.

Previous wording

Employee compensation and benefits expenses increased by $2.2 million, or 5%, to $50.5 million for the three months ended March 31, 2026 from $48.3 million for the three months ended March 31, 2025. The increase in employee compensation during the three months ended March 31, 2026 was primarily related to investments in corporate producers and technology functions.

Current wording

Employee compensation and benefits increased by $3.9 million, or 8%, to $54.3 million for the three months ended June 30, 2026 from $50.4 million for the three months ended June 30, 2025. Employee compensation and benefits increased by $6.1 million, or 6%, to $104.9 million for the six months ended June 30, 2026 from $98.7 million for the six months ended June 30, 2025. The increase in Employee compensation and benefits during the three and six months ended June 30, 2026 was primarily related to investments in corporate producers and technology talent.

Previous wording

Depreciation and amortization increased by $0.5 million, or 20%, to $3.2 million for the three months ended March 31, 2026 from $2.7 million for the three months ended March 31, 2025. This increase during the three months ended March 31, 2026 was primarily attributable to increased spending on software development since March 31, 2025.

Current wording

Depreciation and amortization increased by $0.8 million, or 27%, to $3.5 million for the three months ended June 30, 2026 from $2.8 million for the three months ended June 30, 2025. Depreciation and amortization increased by $1.3 million, or 24%, to $6.8 million for the six months ended June 30, 2026 from $5.5 million for the six months ended June 30, 2025. The increase during the three and six months ended June 30, 2026 was primarily attributable to increased spending on software development since June 30, 2025.

Previous wording

Interest expense decreased by $0.4 million, or 6%, for the three months ended March 31, 2026 to $5.5 million from $5.8 million for the three months ended March 31, 2025. The primary driver of the decrease during the three months ended March 31, 2026 was our entering into Amendment No. 1 to the 2025 Credit Agreement on July 9, 2025, which reduced the applicable interest rate on our term loan borrowings under the facility by 0.50%.

Current wording

Interest expense decreased by $0.6 million, or 9%, for the three months ended June 30, 2026 to $5.7 million from $6.3 million for the three months ended June 30, 2025. Interest expense decreased $0.9 million, or 8%, to $11.2 million for the six months ended June 30, 2026 from $12.1 million for the six months ended June 30, 2025. The primary driver of the decrease during the three and six months ended June 30, 2026 was our entering into Amendment No. 1 to the 2025 Credit Agreement on July 9, 2025, which reduced the applicable interest rate on our term loan borrowings under the facility by 0.50%.

Previous wording

Other income consists of interest earned on cash deposits, loss on debt extinguishment, debt modification expense, interest expense on current TRA payments, and remeasurements of our TRA liability. Other income increased by $0.1 million for the three months ended March 31, 2026 primarily attributable to a loss on debt extinguishment in the three months ended March 31, 2025 related to the Company's repayment of the Second Amended and Restated Credit Agreement, offset by a decrease in interest earned on cash deposits.

Current wording

Other income consists of interest earned on cash deposits, loss on debt extinguishment, debt modification expense, interest expense on current TRA payments, and remeasurements of our TRA liability. Other income decreased by $0.6 million for the three months ended June 30, 2026, primarily related to a decrease in interest earned on cash deposits. Other income decreased by $0.5 million for the six months ended June 30, 2026 primarily attributable to a decrease in interest earned on cash deposits, partially offset by an increase due to a loss on debt extinguishment in the six months ended June 30, 2025 related to the Company's repayment of the Second Amended and Restated Credit Agreement.

Previous wording

Tax expense (benefit) increased by $3.4 million for the three months ended March 31, 2026, to a tax expense of $1.7 million from a tax (benefit) of $(1.7) million for the three months ended March 31, 2025. The increase in tax expense (benefit) for the three months ended March 31, 2026 was primarily attributable to increases in income before taxes and a decrease in excess tax benefits recognized on stock option exercises as compared to the three months ended March 31, 2025.

Current wording

Tax expense increased by $2.2 million for the three months ended June 30, 2026, to a tax expense of $4.1 million from $1.9 million for the three months ended June 30, 2025. Tax expense increased by $5.7 million for the six months ended June 30, 2026 to an expense of $5.9 million from a benefit of $0.2 million for the six months ended June 30, 2025. The increase in tax expense for the three and six months ended June 30, 2026 was primarily attributable to an increase in income before taxes and a decrease in excess tax benefits recognized on stock option exercises as compared to the six months ended June 30, 2025.

Previous wording

The following tables show Total Written Premium placed by corporate agents and franchisees for the three months ended March 31, 2026 and 2025(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, 2026 and 2025(in thousands).

Previous wording

As of March 31, 2026, we had 2.0 million Policies in Force compared to 1.9 million as of December 31, 2025 and 1.7 million as of March 31, 2025, representing a 4% and a 14% increase, respectively.

Current wording

As of June 30, 2026, we had 2.1 million Policies in Force compared to 1.9 million as of December 31, 2025 and 1.8 million as of June 30, 2025, representing an 8% and a 15% increase, respectively.

Previous wording

Client Retention of 85% at March 31, 2026 increased when compared to 85% at December 31, 2025, and 84% at March 31, 2025 assisted by moderating premium rate increases. For the trailing twelve months ended March 31, 2026, we retained 89% of the premiums we distributed in the trailing twelve months ended March 31, 2025, which decreased from the 90% premium retention at December 31, 2025. The decline in premium retention is primarily attributable to moderating premium rate increases offset by increasing 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.

Current wording

Client Retention of 86% at June 30, 2026 increased when compared to 85% at December 31, 2025, and 84% at June 30, 2025 assisted by moderating premium rate increases. For the trailing twelve months ended June 30, 2026, we retained 88% of the premiums we distributed in the trailing twelve months ended June 30, 2025, which decreased from the 90% premium retention at December 31, 2025. The decline in premium retention is primarily attributable to moderating premium rate increases offset by increasing 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, 2026, New Business Revenue grew 19% to $17.7 million, from $14.9 million for the three months ended March 31, 2025. Growth in New Business Revenue during the three months ended March 31, 2026 was primarily driven by an increase in the number of Corporate and Franchise sales agents and growth in Corporate and Franchise productivity.

Current wording

For the three months ended June 30, 2026, New Business Revenue grew 21% to $22.1 million, from $18.3 million for the three months ended June 30, 2025. For the six months ended June 30, 2026, New Business Revenue grew 20% to $39.8 million, from $33.2 million for the six months ended June 30, 2025. Growth in New Business Revenue during the three and six months ended June 30, 2026 was primarily driven by an increase in the number of Corporate and Franchise sales agents and growth in Franchise productivity.

Previous wording

For the three months ended March 31, 2026, Renewal Revenue grew 14% to $61.8 million, from $54.2 million for the three months ended March 31, 2025. Growth in Renewal Revenue during the three months ended March 31, 2026 was driven by an increase in the number of policies in the renewal term assisted by Client Retention of 85% at March 31, 2026.

Current wording

For the three months ended June 30, 2026, Renewal Revenue grew 7% to $73.5 million, from $68.5 million for the three months ended June 30, 2025. For the six months ended June 30, 2026, Renewal Revenue grew 10% to $135.3 million, from $122.7 million for the six months ended June 30, 2025. Growth in Renewal Revenue during the three and six months ended June 30, 2026 was driven by an increase in the number of policies in the renewal term assisted by Client Retention of 86% at June 30, 2026, and partially offset by the recognition of $4.0 million in the prior-year period due to the release of the constraint on certain variable consideration related to policies placed and made effective in previous periods.

Previous wording

Core Revenue increased by $10.4 million, or 15%, to $79.5 million for the three months ended March 31, 2026 from $69.1 million for the three months ended March 31, 2025. The primary drivers of the increase during the three months ended March 31, 2026 were an increase in policies in their renewal term, assisted by Client Retention of 85%; more new policies written, driven by an increase in the number of Corporate and Franchise sales agents and growth in Franchise productivity.

Current wording

Core Revenue increased by $8.8 million, or 10%, to $95.6 million for the three months ended June 30, 2026 from $86.8 million for the three months ended June 30, 2025. Core Revenue increased by $19.2 million, or 12%, to $175.1 million for the six months ended June 30, 2026 from $155.9 million for the six months ended June 30, 2025. The primary drivers of the increase during each of the three and six months ended June 30, 2026 were an increase in policies in their renewal term, assisted by Client Retention of 86%; more new policies written, driven by an increase in the number of Corporate and Franchise sales agents and growth in Franchise productivity; partially offset by the recognition of $3.0 million in renewal commissions and $1.0 million of renewal royalty fees in the prior- year period due to the release of the constraint on certain variable consideration related to policies placed and made effective in previous periods.

Previous wording

Cost Recovery Revenue increased by $0.2 million, or 13%, to $1.7 million for the three months ended March 31, 2026 from $1.5 million for the three months ended March 31, 2025. The primary driver was an increase in terminations and transfers of franchises, resulting in acceleration of initial franchise fee revenue.

Current wording

Cost Recovery Revenue increased by $0.1 million, or 2%, to $1.5 million for the three months ended June 30, 2026 from $1.4 million for the three months ended June 30, 2025. Cost Recovery Revenue increased by $0.2 million, or 8%, to $3.2 million for the six months ended June 30, 2026 from $3.0 million for the six months ended June 30, 2025. The primary driver was an increase in terminations and transfers of franchises, resulting in acceleration of initial franchise fee revenue.

Previous wording

Adjusted EBITDA is a supplemental measure of our performance. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of items that do not relate to business performance. Adjusted EBITDA is defined as net income (the most directly comparable GAAP measure) before interest, income taxes, depreciation and amortization, adjusted to exclude equity-based compensation, impairment expense, and other non-operating items, including, among other things, certain non-cash charges and certain non-recurring or non-operating gains or losses.

Current wording

Adjusted EBITDA is a supplemental measure of our performance. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of items that do not relate to business performance. Adjusted EBITDA is defined as net income (the most directly comparable GAAP measure) before interest, income taxes, depreciation and amortization, adjusted to exclude equity-based compensation, impairment expense, contract termination costs, and other non-operating items, including, among other things, certain non-cash charges and certain non-recurring or non-operating gains or losses.

Previous wording

Adjusted EBITDA increased by $8.9 million, or 57%, to $24.4 million for the three months ended March 31, 2026 from $15.5 million for the three months ended March 31, 2025. The primary driver of the increase in Adjusted EBITDA during the three months ended March 31, 2026 was growth in total revenue partially offset by an increase in general and administrative expenses excluding impairment expense.

Current wording

Adjusted EBITDA increased by $8.8 million, or 30%, to $37.9 million for the three months ended June 30, 2026 from $29.2 million for the three months ended June 30, 2025. Adjusted EBITDA increased by $17.7 million, or 40%, to $62.4 million for the six months ended June 30, 2026 from $44.7 million for the six months ended June 30, 2025. The primary driver of the increase in Adjusted EBITDA during the three and six months ended June 30, 2026 was growth in total revenue partially offset by an increase in investments in corporate producers, technology talent, professional services, and technologies.

Previous wording

For the three months ended March 31, 2026, Adjusted EBITDA Margin of 26% increased when compared to 21% for the three months ended March 31, 2025 as a result of total revenue growing at a faster rate than employee compensation and benefits and general and administrative expenses, excluding equity-based compensation, impairment expense, and other non-operating items.

Current wording

For the three months ended June 30, 2026, Adjusted EBITDA Margin was 33% compared to 31% for the three months ended June 30, 2025 as a result of growth in total revenue outpacing growth in spending on operating expenses such as growth in corporate producers, technology talent, professional services, and technologies. For the six months ended June 30, 2026, Adjusted EBITDA Margin of 30% increased when compared to 26% for the six months ended June 30, 2025 as a result of total revenue growing at a faster rate than employee compensation and benefits and general and administrative expenses, excluding equity-based compensation, impairment expense, and other non-operating items.

Previous wording

(1) Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue ($24,424/$93,076) and ($15,520/$75,583) for the three months ended March 31, 2026 and 2025, respectively.

Current wording

(1) Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue ($37,948/$113,389) and ($29,152/$94,027) for the three months ended June 30, 2026 and 2025, respectively. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue ($62,372/$206,465), and ($44,672/$169,611) for the six months ended June 30, 2026 and 2025, respectively.

Previous wording

The following tables show a reconciliation from basic earnings per share to Adjusted EPS. Note that totals may not sum due to rounding:

Current wording

The following tables show a reconciliation from basic earnings per share to Adjusted EPS:

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 Agency 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, 2026, our cash and cash equivalents balance was $25.7 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 Agency 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, 2026, our cash and cash equivalents balance was $23.7 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

On January 8, 2025, the Company entered into a credit agreement (the "2025 Credit Agreement") providing for an aggregate $300 million term notes payable (the "2025 Initial Term Loan") and $75 million revolving credit facility (the "2025 Revolving Credit Facility"). The 2025 Initial Term Loan matures on January 8, 2032 and the 2025 Revolving Credit Facility matures on January 8, 2030. This credit agreement replaced the prior Second Amended and Restated Credit Agreement, dated July 21, 2021, which was repaid with the proceeds of the 2025 Initial Term Loan and terminated.

Current wording

"2025 Revolving Credit Facility"). The 2025 Initial Term Loan matures on January 8, 2032 and the 2025 Revolving Credit Facility matures on January 8, 2030. This credit agreement replaced the prior Second Amended and Restated Credit Agreement, dated July 21, 2021, which was repaid with the proceeds of the 2025 Initial Term Loan and terminated.

Previous wording

Net cash provided by operating activities was $22.9 million for the three months ended March 31, 2026 as compared to net cash provided by operating activities of $15.5 million for the three months ended March 31, 2025. This increase in net cash provided by operating activities was primarily attributable a $5.4 million increase related to net income and an $8.0 million increase related to a reduction in outflows for prepaid expenses.

Current wording

Net cash provided by operating activities was $38.8 million for the six months ended June 30, 2026 as compared to net cash provided by operating activities of $44.4 million for the six months ended June 30, 2025. This decrease in net cash provided by operating activities was primarily attributable a $9.5 million decrease related to cash received for commissions and agency fees, a $6.2 million decrease related to receivable from franchisees, and a $4.7 decrease related to impairment, offset by a $14.1 million increase related to net income.

Previous wording

Net cash used for investing activities was $7.1 million for the three months ended March 31, 2026, compared to net cash used for investing activities of $3.3 million for the three months ended March 31, 2025. This increase was driven by a $2.9 million increase in capitalized software development costs and a $1.1 million increase in purchases of property and equipment.

Current wording

Net cash used for investing activities was $14.2 million for the six months ended June 30, 2026, compared to net cash used for investing activities of $8.4 million for the six months ended June 30, 2025. This increase was driven by a $5.8 million increase in capitalized software development costs.