Goosehead Insurance, Inc

Goosehead reported Q2 2026 total written premiums of $1.36 billion, up 14% year over year, and policies in force of 2.1 million, up 15%. Total revenue increased 21% year over year to $113.4 million, with core revenue up 10% to $95.6 million; adjusted for $4 million of renewal commission and royalty fee recoveries in Q2 2025, total revenue grew 26% and core revenue grew 16%. Adjusted EBITDA was $37.9 million, representing a 33% to 34% margin, and adjusted EBITDA grew 30% year over year. For full-year 2026, management raised organic total revenue growth guidance to 12% to 19% and reiterated organic total written premium growth guidance of 12% to 20%.

Mark Miller framed the quarter as evidence that Goosehead has been fundamentally transformed over the last four years through better agent quality, more offices, the ASP staffing program, and new distribution channels. He emphasized that the business is now stronger, more diversified, and better positioned for the next phase of growth, and he said the product market is finally more favorable after a long hard market. Miller also announced his retirement at the end of the year, saying he is confident in Mark Jones Jr. as successor and will stay engaged through the transition and continue serving on the board.

John Martin highlighted the financial strength in the quarter: total revenues of $113.4 million, core revenues of $95.6 million, adjusted EBITDA of $37.9 million, and operating cash flow of $15.9 million. He said new business commissions grew 27% to $9 million, new business royalties grew 20% to $9.4 million, and ancillary revenues rose 180% to $16.3 million, while client retention improved from 85% to 86%. He also noted $3.9 million of share repurchases in Q2, $53.7 million repurchased year to date, $23.7 million of cash and cash equivalents, $323 million of total debt, and $144.6 million remaining on the buyback authorization.

Analysts focused on margin trajectory, contingent commissions, recruiting, digital agent rollout, retention, pricing, buybacks, and the impact of competitor compensation changes. Management said margin planning still assumes some moderate compression on an ex-contingent basis due to continued investment, but that compensation and G&A should grow in the high teens to low 20s. They also said contingents are being helped by stronger new business, better profitability, and more favorable carrier contracts, the digital agent will stay focused on Texas before expanding, and buybacks slowed mainly because the company already repurchased a lot of stock recently rather than because of a changed view on value.