Goosehead Insurance (NASDAQ:GSHD) Posts Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Goosehead Insurance (NASDAQ:GSHD) announced its quarterly earnings results on Tuesday. The company reported $0.64 earnings per share for the quarter, topping analysts’ consensus estimates of $0.54 by $0.10, FiscalAI reports. The business had revenue of $78.20 million for the quarter, compared to analysts’ expectations of $99.67 million. Goosehead Insurance had a negative return on equity of 34.60% and a net margin of 8.55%.The business’s quarterly revenue was up 12.1% on a year-over-year basis. During the same period in the prior year, the firm earned $0.79 EPS.

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

• Goosehead reported full‑year 2025 revenue up 16%, Adjusted EBITDA up 14% with a 31% Adjusted EBITDA margin, and policies in force up 14%, indicating strong top‑line growth and profitability momentum.
• Management says its proprietary Digital Agent 2.0 and AI stack (including the “Lily” virtual assistant) deliver an end‑to‑end choice buying experience and, uniquely, the ability to bind some policies with no human intervention—positioning a durable competitive advantage in digital distribution.
• The enterprise/partnership channel is scaling rapidly—enterprise sales nearly doubled new business in 2025 and the company cites a pipeline representing about 2.3 million potential clients, which management views as a potential largest growth driver over time.
• 2026 guidance targets total revenue growth of 10–19% (TWP 12–20%) but anticipates modest margin compression as the company invests in AI, Digital Agent 2.0 and partnerships (est. $25–35M cash spend) and assumes contingent commissions of 60–85 bps versus 86 bps in 2025, creating near‑term pressure on profitability.
• Strong cash flow (operating cash flow $91.8M), conservative balance sheet management and significant buybacks (2025 repurchases $81.7M; new authorization $180M) signal capital flexibility and shareholder‑friendly allocation.

Goosehead Insurance Stock Up 4.0%

Shares of Goosehead Insurance stock opened at $50.63 on Wednesday. The business has a fifty day simple moving average of $68.19 and a 200-day simple moving average of $73.35. Goosehead Insurance has a fifty-two week low of $46.80 and a fifty-two week high of $127.99. The firm has a market cap of $1.87 billion, a price-to-earnings ratio of 44.81, a price-to-earnings-growth ratio of 6.16 and a beta of 1.54.

Insiders Place Their Bets

In other Goosehead Insurance news, CEO Mark Miller acquired 5,000 shares of Goosehead Insurance stock in a transaction dated Friday, November 28th. The stock was bought at an average price of $72.34 per share, for a total transaction of $361,700.00. Following the transaction, the chief executive officer owned 35,000 shares in the company, valued at approximately $2,531,900. This trade represents a 16.67% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, General Counsel John Terry O’connor bought 2,100 shares of the business’s stock in a transaction that occurred on Wednesday, November 26th. The shares were acquired at an average cost of $71.81 per share, with a total value of $150,801.00. Following the completion of the purchase, the general counsel owned 3,100 shares of the company’s stock, valued at approximately $222,611. The trade was a 210.00% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 37.76% of the stock is owned by company insiders.

Hedge Funds Weigh In On Goosehead Insurance

A number of hedge funds have recently modified their holdings of the stock. Wasatch Advisors LP lifted its holdings in shares of Goosehead Insurance by 12.6% during the second quarter. Wasatch Advisors LP now owns 2,275,369 shares of the company’s stock valued at $240,074,000 after purchasing an additional 253,777 shares during the last quarter. Durable Capital Partners LP raised its holdings in Goosehead Insurance by 126.5% during the 3rd quarter. Durable Capital Partners LP now owns 1,542,186 shares of the company’s stock worth $114,769,000 after buying an additional 861,374 shares during the period. DF Dent & Co. Inc. lifted its stake in Goosehead Insurance by 3.2% during the fourth quarter. DF Dent & Co. Inc. now owns 1,044,660 shares of the company’s stock valued at $76,939,000 after buying an additional 32,246 shares in the last quarter. State Street Corp lifted its stake in Goosehead Insurance by 1.4% during the second quarter. State Street Corp now owns 1,027,500 shares of the company’s stock valued at $108,412,000 after buying an additional 14,311 shares in the last quarter. Finally, Balyasny Asset Management L.P. boosted its holdings in shares of Goosehead Insurance by 118.7% in the second quarter. Balyasny Asset Management L.P. now owns 556,760 shares of the company’s stock worth $58,744,000 after buying an additional 302,130 shares during the period.

Wall Street Analyst Weigh In

GSHD has been the subject of several analyst reports. Piper Sandler raised shares of Goosehead Insurance from a “neutral” rating to an “overweight” rating and set a $69.00 price target for the company in a report on Wednesday. Citigroup reissued an “outperform” rating on shares of Goosehead Insurance in a research note on Wednesday. Zacks Research upgraded shares of Goosehead Insurance from a “strong sell” rating to a “hold” rating in a research report on Monday, November 10th. Keefe, Bruyette & Woods cut their price target on Goosehead Insurance from $95.00 to $85.00 and set an “outperform” rating on the stock in a report on Wednesday. Finally, UBS Group reduced their price objective on Goosehead Insurance from $130.00 to $121.00 and set a “buy” rating for the company in a research report on Monday, October 27th. Seven research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $89.30.

Key Headlines Impacting Goosehead Insurance

Here are the key news stories impacting Goosehead Insurance this week:

• Positive Sentiment: Q4 results: total revenue of $105.3M (up ~12%) and core revenue of $78.2M (up ~15%); GAAP EPS of $0.64 beat the Street consensus. Investors cheered the top‑line growth and the EPS beat. GlobeNewswire: Q4 and FY2025 Results
• Positive Sentiment: Share repurchases/authorization: the company repurchased $81.7M in 2025 and expanded its buyback authorization by $180M through May 1, 2027 — a clear shareholder‑friendly move that tends to support the stock. TipRanks: Buyback Expansion & Outlook
• Positive Sentiment: 2026 outlook: management set an organic revenue growth target of 10%–19% for 2026 and said it will accelerate AI investments to drive agent productivity and growth — a signal of management confidence in scaling revenue. Seeking Alpha: 2026 Targets & AI
• Neutral Sentiment: Market reaction and coverage: multiple outlets highlight the revenue beat and share buyback as drivers for today’s move; some analysts maintain a cautious stance (consensus “Hold” on recent coverage). Investing.com: Shares Jump on Revenue Beat AmericanBankingNews: Analyst Ratings
• Neutral Sentiment: Earnings call/transcript available for details on margin dynamics and AI spend; read the transcript for nuance on expense timing and agent growth cadence. Seeking Alpha: Q4 2025 Earnings Call Transcript
• Negative Sentiment: Profitability and valuation caveats: Q4 net income and EPS were down versus a year ago (net income $20.8M vs $23.8M; EPS $0.64 vs $0.79), and the stock trades at a high multiple (PE ~44.8), leaving limited margin for disappointment if growth or AI investments pressure near‑term margins. (Background metrics provided in company snapshot.)

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.