Goosehead Insurance (NASDAQ:GSHD) Posts Quarterly Earnings Results, Beats Expectations By $0.17 EPS

Goosehead Insurance (NASDAQ:GSHD) issued its earnings results on Wednesday. The company reported $0.64 EPS for the quarter, beating analysts’ consensus estimates of $0.47 by $0.17, FiscalAI reports. The business had revenue of $95.63 million during the quarter, compared to analyst estimates of $103.30 million. Goosehead Insurance had a negative return on equity of 21.28% and a net margin of 8.78%.The firm’s revenue was up 20.6% compared to the same quarter last year. During the same period in the previous year, the company posted $0.49 EPS.

Here are the key takeaways from Goosehead Insurance’s conference call:

• Goosehead delivered a strong second quarter, with total written premiums up 14%, policies in force up 15%, and revenues up 21% year over year; adjusted EBITDA came in at $38 million with a 34% margin.
• Client retention improved to 86%, the highest level since the hard market began, and management said it sees no structural barrier to eventually returning to its prior peak of 89%.
• The company raised its full-year 2026 outlook, now expecting organic total revenue growth of 12% to 19%, citing better-than-expected contingent commissions and an anticipated second-half acceleration in core revenue.
• Leadership highlighted strong momentum in growth channels, including enterprise sales reaching about $3 million in new business commissions and agency fees in the quarter and continuing to expand rapidly as a meaningful future contributor.
• CEO Mark Miller announced his retirement at year-end, with Mark Jones Jr. set to become CEO; the company framed the transition as planned and emphasized continuity in strategy and execution.

Goosehead Insurance Price Performance

Shares of NASDAQ GSHD traded up $3.37 during trading on Friday, hitting $57.27. The stock had a trading volume of 223,360 shares, compared to its average volume of 499,306. Goosehead Insurance has a 12 month low of $33.68 and a 12 month high of $93.90. The company has a market capitalization of $2.04 billion, a PE ratio of 41.80, a PEG ratio of 1.82 and a beta of 1.41. The firm has a fifty day moving average of $44.09 and a two-hundred day moving average of $49.04.

Insider Activity

In other news, General Counsel Martin Ellis Thornthwaite purchased 5,000 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The shares were acquired at an average cost of $41.50 per share, for a total transaction of $207,500.00. Following the completion of the acquisition, the general counsel owned 5,000 shares in the company, valued at $207,500. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, major shareholder Patrick Ryan Langston acquired 2,800 shares of Goosehead Insurance stock in a transaction on Friday, May 29th. The stock was purchased at an average cost of $35.56 per share, with a total value of $99,568.00. Following the completion of the transaction, the insider directly owned 7,800 shares in the company, valued at $277,368. This represents a 56.00% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders purchased 12,800 shares of company stock valued at $480,718 and sold 219,192 shares valued at $9,092,267. Corporate insiders own 38.07% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of GSHD. T. Rowe Price Investment Management Inc. increased its position in shares of Goosehead Insurance by 38.5% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,002,003 shares of the company’s stock valued at $147,448,000 after purchasing an additional 556,293 shares during the last quarter. Voloridge Investment Management LLC boosted its holdings in shares of Goosehead Insurance by 21.4% in the 4th quarter. Voloridge Investment Management LLC now owns 40,304 shares of the company’s stock worth $2,968,000 after buying an additional 7,100 shares during the last quarter. Tudor Investment Corp ET AL bought a new position in Goosehead Insurance during the fourth quarter valued at about $4,409,000. Odyssean LLC purchased a new stake in Goosehead Insurance during the fourth quarter worth about $728,000. Finally, Millennium Management LLC increased its holdings in Goosehead Insurance by 29.5% during the fourth quarter. Millennium Management LLC now owns 126,485 shares of the company’s stock worth $9,316,000 after buying an additional 28,803 shares during the last quarter.

Analysts Set New Price Targets

GSHD has been the subject of several recent research reports. JPMorgan Chase & Co. boosted their price objective on Goosehead Insurance from $55.00 to $60.00 and gave the company a “neutral” rating in a report on Monday, July 13th. Bank of America reduced their price target on shares of Goosehead Insurance from $43.00 to $37.00 and set an “underperform” rating for the company in a research report on Tuesday, April 14th. UBS Group upped their price objective on shares of Goosehead Insurance from $67.00 to $70.00 and gave the stock a “buy” rating in a report on Wednesday, July 8th. Weiss Ratings upgraded shares of Goosehead Insurance from a “sell (d)” rating to a “sell (d+)” rating in a report on Thursday, July 9th. Finally, Piper Sandler boosted their target price on shares of Goosehead Insurance from $52.00 to $72.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 15th. Seven analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $68.27.

About Goosehead Insurance

Goosehead Insurance (NASDAQ: GSHD) is a technology-driven insurance agency that connects consumers with a broad range of personal and commercial insurance products through an extensive network of independent insurance advisors. The company specializes in homeowners, auto, flood, dwelling fire, umbrella, life, and commercial lines coverage, working with multiple national and regional carriers to offer tailored policies. By combining advanced quoting tools with local market expertise, Goosehead streamlines the insurance shopping process and helps clients find competitive coverage options.

Founded in 2003 and headquartered in Westlake, Texas, Goosehead has grown its footprint across more than 40 states in the U.S.