Goosehead’s net income reaches $12.6m in Q3, revenues up 10%

Goosehead Insurance, the independent personal lines insurance agency, has released its financial results for the third quarter of 2024, which includes a $12.6 million net income, a notable improvement from the prior year’s $11.3 million.

At the same time, Goosehead’s total Adjusted EBITDA was $26.1 million for Q3’24, in comparison to $22.4 million from Q3’23.

Overall, Goosehead’s total revenues grew 10% over the prior year period to $78 million in the the quarter. While the company’s core revenues, a non-GAAP measure which excludes contingent commissions, initial franchise fees, interest income, and other income, sat at $73.5 million, a 16% increase from $63.1 million in the prior-year period.

In addition, total written premiums placed for the third quarter increased 28% over the prior-year period to a staggering $1.03 billion.

Mark Miller, President and CEO, commented: “We delivered an outstanding third quarter result in the face of continued macro headwinds related to product availability and real estate as well as severe weather events which temporarily impacted production across several large states.

“For the quarter, total revenue grew 10%, core revenue grew 16%, net income margin was 16% and adjusted EBITDA margin expanded to 34%, up from 32% in the year ago quarter. This marked the first time we have generated over $1 billion of premium in a single quarter, with 28% growth over the prior year, a great milestone for the company.”

He continued: “We are seeing strong momentum in a number of our key performance indicators that we expect will drive future growth, including franchise productivity, total producer headcount and policy in force growth rates. We have also stabilized our client retention levels in the quarter at 84%, despite continued market challenges.

“I’m extremely pleased with the tremendous accomplishments of the organization over the past 2 years driven by our exceptional people and industry leading technology. We are well positioned for a strong finish to 2024 and faster growth in 2025 and beyond as we progress to our goal of being the largest distributor of personal lines in the US.”

Further, Goosehead raised its guidance for full-year 2024 as follows:

• Total written premiums placed for 2024 are expected to sit between $3.70 billion and $3.82 billion, representing growth of 25% on the low end of the range to 29% on the high end of the range.
• Total revenues for 2024 are expected to range between $295 million and $310 million, representing growth of 13% on the low end of the range to 19% on the high end of the range.
• Adjusted EBITDA Margin is expected to expand for the full year 2024.

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