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

Goosehead Insurance (NASDAQ:GSHD) posted its quarterly earnings results on Wednesday. The company reported $0.64 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.47 by $0.17, FiscalAI reports. Goosehead Insurance had a negative return on equity of 20.96% and a net margin of 7.94%.The business had revenue of $95.63 million during the quarter, compared to analyst estimates of $103.30 million. During the same period in the prior year, the business earned $0.49 earnings per share. The business’s revenue was up 20.6% compared to the same quarter last year.

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

Shares of NASDAQ GSHD traded down $2.35 during mid-day trading on Wednesday, reaching $51.40. 409,589 shares of the company’s stock were exchanged, compared to its average volume of 498,030. The firm has a market capitalization of $1.83 billion, a price-to-earnings ratio of 45.09, a PEG ratio of 2.02 and a beta of 1.41. Goosehead Insurance has a 52-week low of $33.68 and a 52-week high of $103.46. The company’s 50-day moving average is $43.45 and its 200-day moving average is $49.31.

Insider Activity at Goosehead Insurance

In other Goosehead Insurance news, major shareholder & Robyn Jones Descendants Mark sold 9,588 shares of the stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $40.76, for a total transaction of $390,806.88. Following the completion of 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 sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, major shareholder Patrick Ryan Langston purchased 2,800 shares of the company’s stock in a transaction on Friday, May 29th. The shares were bought at an average price of $35.56 per share, with a total value of $99,568.00. Following the completion of the transaction, the insider owned 7,800 shares of the company’s stock, valued at approximately $277,368. The trade was a 56.00% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders have bought 12,800 shares of company stock valued at $480,718 and have sold 219,192 shares valued at $9,092,267. Company insiders own 38.07% of the company’s stock.

Hedge Funds Weigh In On Goosehead Insurance

A number of hedge funds have recently made changes to their positions in the stock. Durable Capital Partners LP increased its holdings in Goosehead Insurance by 126.5% in the 3rd quarter. Durable Capital Partners LP now owns 1,542,186 shares of the company’s stock valued at $114,769,000 after purchasing an additional 861,374 shares during the last quarter. T. Rowe Price Investment Management Inc. boosted its holdings in 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 acquiring an additional 556,293 shares during the period. Whitebark Investors LP purchased a new position in Goosehead Insurance during the 3rd quarter valued at about $25,229,000. Jacobs Levy Equity Management Inc. acquired a new position in Goosehead Insurance in the 3rd quarter valued at about $25,222,000. Finally, Balyasny Asset Management L.P. grew its position in Goosehead Insurance by 118.7% in the 2nd quarter. Balyasny Asset Management L.P. now owns 556,760 shares of the company’s stock valued at $58,744,000 after acquiring an additional 302,130 shares in the last quarter.

Wall Street Analyst Weigh In

Several brokerages have issued reports on GSHD. Weiss Ratings upgraded Goosehead Insurance from a “sell (d)” rating to a “sell (d+)” rating in a report on Thursday, July 9th. Bank of America reduced their price target on Goosehead Insurance from $43.00 to $37.00 and set an “underperform” rating on the stock in a report on Tuesday, April 14th. UBS Group boosted their price target on shares of Goosehead Insurance from $67.00 to $70.00 and gave the company a “buy” rating in a research report on Wednesday, July 8th. Royal Bank Of Canada raised their price objective on shares of Goosehead Insurance from $52.00 to $55.00 and gave the stock a “sector perform” rating in a research report on Monday, July 13th. Finally, Keefe, Bruyette & Woods lifted their target price on shares of Goosehead Insurance from $75.00 to $80.00 and gave the stock an “outperform” rating in a research note on Thursday, April 23rd. Seven research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Goosehead Insurance currently has a consensus rating of “Hold” and a consensus price target of $68.73.

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.