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

Goosehead Insurance (NASDAQ:GSHD) announced its earnings results on Wednesday. The company reported $0.64 earnings per share for the quarter, topping the consensus estimate of $0.47 by $0.17, FiscalAI reports. The firm had revenue of $95.63 million for the quarter, compared to the consensus estimate of $103.30 million. Goosehead Insurance had a net margin of 7.94% and a negative return on equity of 20.96%. The firm’s revenue for the quarter was up 20.6% on a year-over-year basis. During the same period in the prior year, the firm earned $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 Stock Performance

GSHD stock traded down $2.35 during midday trading on Wednesday, reaching $51.40. 409,589 shares of the company were exchanged, compared to its average volume of 498,030. The stock’s 50-day simple moving average is $43.45 and its 200 day simple moving average is $49.31. Goosehead Insurance has a 1-year low of $33.68 and a 1-year high of $103.46. The company has a market cap of $1.83 billion, a price-to-earnings ratio of 45.09, a price-to-earnings-growth ratio of 2.02 and a beta of 1.41.

Analysts Set New Price Targets

Several research firms have commented on GSHD. Royal Bank Of Canada boosted their price target on shares of Goosehead Insurance from $52.00 to $55.00 and gave the stock a “sector perform” rating in a research note on Monday, July 13th. Bank of America reduced their price objective on Goosehead Insurance from $43.00 to $37.00 and set an “underperform” rating on the stock in a research note on Tuesday, April 14th. Weiss Ratings upgraded Goosehead Insurance from a “sell (d)” rating to a “sell (d+)” rating in a report on Thursday, July 9th. JPMorgan Chase & Co. boosted their target price on Goosehead Insurance from $55.00 to $60.00 and gave the stock a “neutral” rating in a research note on Monday, July 13th. Finally, Citizens Jmp cut their price target on Goosehead Insurance from $125.00 to $100.00 and set a “market outperform” rating on the stock in a report on Monday, April 13th. 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 stock. According to data from MarketBeat.com, Goosehead Insurance currently has an average rating of “Hold” and an average price target of $68.73.

Insider Transactions at Goosehead Insurance

In related news, major shareholder & Robyn Jones Descendants Mark sold 9,588 shares of the firm’s stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $40.76, for a total transaction of $390,806.88. Following the transaction, the insider owned 6,995,180 shares of the company’s stock, valued at $285,123,536.80. This trade represents a 0.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, General Counsel Martin Ellis Thornthwaite bought 5,000 shares of the stock in a transaction on Monday, May 18th. The stock was bought at an average price of $41.50 per share, for a total transaction of $207,500.00. Following the completion of the purchase, the general counsel directly owned 5,000 shares in the company, valued at approximately $207,500. The trade was a ∞ increase in their position. The SEC filing for this purchase provides additional information. Over the last three months, insiders have acquired 12,800 shares of company stock worth $480,718 and have sold 219,192 shares worth $9,092,267. Corporate insiders own 38.07% of the company’s stock.

Hedge Funds Weigh In On Goosehead Insurance

A number of large investors have recently bought and sold shares of the company. EverSource Wealth Advisors LLC raised its holdings in Goosehead Insurance by 480.4% during the second quarter. EverSource Wealth Advisors LLC now owns 325 shares of the company’s stock worth $34,000 after purchasing an additional 269 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in Goosehead Insurance by 802.0% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 442 shares of the company’s stock valued at $47,000 after buying an additional 393 shares in the last quarter. Kestra Advisory Services LLC purchased a new stake in Goosehead Insurance during the 4th quarter worth about $41,000. Quadrant Capital Group LLC grew its holdings in shares of Goosehead Insurance by 614.3% during the fourth quarter. Quadrant Capital Group LLC now owns 1,000 shares of the company’s stock worth $74,000 after buying an additional 860 shares in the last quarter. Finally, State of Wyoming purchased a new stake in Goosehead Insurance in the 4th quarter worth approximately $79,000.

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.