Thu, Apr 24, 10:06 AM (29 days ago)
**Goosehead Insurance, Inc. (GSHD) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total revenue increased by 17% to $75.6 million from $64.5 million in Q1 2024. Core Revenue, which includes Renewal Commissions, Renewal Royalty Fees, New Business Commissions, New Business Royalty Fees, and Agency Fees, increased by 17% to $69.1 million. - **Profit Margins:** Net income increased by $0.8 million to $2.6 million, or 4% of total revenues. Adjusted EBITDA increased by 32% to $15.5 million, or 21% of total revenues. - **Earnings Changes:** Basic and diluted earnings per share were $0.09 and $0.09, respectively, and Adjusted EPS was $0.26 per share for Q1 2025. - **Cash Flow:** Net cash provided by operating activities was $15.5 million, an increase of $3.4 million from Q1 2024. This was driven by a $0.8 million increase in net income and changes in working capital. **Key Metrics and Trends:** - **Policies in Force:** Increased by 13% to 1,729,000 at March 31, 2025. - **Total Written Premiums:** Increased by 22% to $1.0 billion. - **Client Retention:** Remained steady at 84%. - **Corporate Sales Headcount:** Increased by 46% to 426. - **Franchise Operations:** Total operating franchises decreased by 5% to 1,098. **Uncertainties and Future Operations:** - **Market Risks:** No material changes in market risks. The company remains exposed to cybersecurity threats and data privacy regulations. - **Liquidity:** The company has sufficient liquidity to meet its commitments, with a cash and cash equivalents balance of $70.2 million as of March 31, 2025. - **Debt:** The company entered into a new credit agreement in January 2025, replacing the prior agreement. The new agreement includes a $300 million term loan and a $75 million revolving credit facility. - **Share Repurchase Program:** A new share repurchase program was approved on April 23, 2025, with authorization to purchase up to $100 million of Class A common stock through May 1, 2026. **Conclusion:** Goosehead Insurance, Inc. demonstrated strong financial performance in Q1 2025, with significant increases in revenue, net income, and key operational metrics. The company's focus on client retention and franchise productivity continues to drive growth. However, it faces uncertainties related to market risks and the need to manage its debt obligations and liquidity effectively.