Goosehead Insurance's revenue surpasses expectations, driving the stock price higher

2026-02-18 00:38:20

Investing.com – Goosehead Insurance, Inc. (NASDAQ:GSHD) stock surged 3.3% after hours on Tuesday. The independent personal insurance agency reported fourth-quarter revenue that exceeded analyst expectations, despite earnings per share falling short.

The company’s fourth-quarter revenue was $105.3 million, surpassing the consensus estimate of $99.34 million, a 12% increase from the same period last year. However, earnings per share were $0.48, below the analyst forecast of $0.57.

Core revenue (excluding contingent commissions and other non-recurring items) grew 15% year-over-year to $78.2 million, driven by an 85% strong customer retention rate and rising premium rates. Total written premiums, a leading indicator of future revenue growth, increased 13% this quarter to $1.1 billion.

President and CEO Mark Miller stated, “Goosehead has now launched the United States’ first end-to-end digital insurance comparison and purchase experience. I am pleased with our strong growth and profitability through 2025, but I am even more excited about the future as we leverage proprietary data and artificial intelligence capabilities to expand our competitive moat.”

The company’s net income for the fourth quarter was $20.8 million, down from $23.8 million in the same period last year. Adjusted EBITDA increased 5% to $39.2 million, while adjusted EBITDA margin declined 3 percentage points to 37%.

For the full year 2026, Goosehead expects organic revenue growth of 10% to 19%, with total written premiums projected to grow 12% to 20%.

The company also announced an expansion of its share repurchase program, increasing the authorized amount by $180 million and extending the deadline to May 1, 2027. During the fourth quarter, Goosehead repurchased 323,000 shares at an average price of $69.79.

Additionally, the company elected Louis Goldberg to the board of directors, while Thomas McConnon will step down from the board.

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