Goosehead Insurance (NASDAQ:GSHD) Issues Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• Goosehead beat quarterly EPS expectations: It reported $0.53 per share, $0.02 above consensus and up from $0.46 a year earlier.
• Prior financial statements are under review for restatement: The company said its 2023–2025 annual results and first-half 2026 quarterly statements should not be relied upon. Preliminary adjustments are expected to raise reported revenue and earnings measures, but not Core Revenue or cash flows.
• Business growth remains solid, though insurance pricing is a headwind: Third-quarter revenue increased 17% and Core Revenue rose 13% year over year; Goosehead reaffirmed its 2026 growth outlook while noting that falling premiums are weighing on renewal revenue.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) posted its quarterly earnings data on Monday. The company reported $0.53 EPS for the quarter, topping analysts' consensus estimates of $0.51 by $0.02, Briefing.com reports. Goosehead Insurance had a negative return on equity of 21.00% and a net margin of 8.78%. During the same period in the prior year, the firm posted $0.46 EPS.

Here are the key takeaways from Goosehead Insurance's conference call:

• Prior financial statements need to be restated: Goosehead said its 2023–2025 annual statements and first-half 2026 quarterly statements should no longer be relied upon while its review continues. The preliminary accounting changes are expected to increase reported revenue, operating income, and Adjusted EBITDA, but not Core Revenue, cash flows, or underlying business economics.
• Third-quarter growth was solid, and full-year outlook was reaffirmed: Revenue rose 17%, Core Revenue 13%, policies in force 14%, and new business commissions 21% year over year. The company maintained its 2026 organic growth outlook of 12%–19% for revenue and 12%–20% for total written premiums.
• Falling insurance prices are weighing on renewal revenue: Executives cited more pronounced pricing declines in the quarter, particularly in Texas, with auto prices down mid-single digits and home prices down low-single digits overall. Lower premiums per policy are a near-term headwind, and management said it could not predict when pricing pressure would ease.
• Partnerships, franchise growth, and service initiatives are expanding the business: Enterprise sales’ new business grew more than 50% for an eighth consecutive quarter, while client retention improved to 86% and digital channels handled nearly a third of service work. Management said contingent commission expectations increased to 80–110 basis points of written premiums for 2026.
• CEO Mark Miller will retire at year-end: Miller endorsed President and COO Mark Jones Jr. as his successor and described the transition as planned, while expressing confidence in the company’s future leadership.

Goosehead Insurance Price Performance

Goosehead Insurance stock traded down $8.56 during mid-day trading on Tuesday, hitting $46.13. The company's stock had a trading volume of 1,057,457 shares, compared to its average volume of 483,597. The firm's 50 day moving average is $51.14 and its 200 day moving average is $50.53. The company has a market cap of $1.64 billion, a PE ratio of 33.67, a price-to-earnings-growth ratio of 2.13 and a beta of 1.51. Goosehead Insurance has a 52-week low of $33.68 and a 52-week high of $79.85.

Trending Headlines about Goosehead Insurance

Here are the key news stories impacting Goosehead Insurance this week:

• Positive Sentiment: Goosehead’s preliminary Q3 revenue guidance of $108.8 million to $110.8 million is above the $105.1 million consensus estimate, and the company reaffirmed its full-year 2026 guidance. Preliminary third-quarter 2026 results
• Neutral Sentiment: Piper Sandler raised its price target from $48 to $56 but kept a Neutral rating, signaling a higher valuation estimate without a more bullish recommendation. Piper Sandler stock recommendations
• Negative Sentiment: The need to restate prior-period financials creates uncertainty about Goosehead’s reported results and controls. Law firms have announced investigations into potential securities claims; these are allegations and investigations, not findings of wrongdoing. Kehoe Law Firm investigation announcement Frank R. Cruz law firm investigation announcement

Insiders Place Their Bets

In other news, major shareholder Durable Capital Partners Lp bought 150,000 shares of the stock in a transaction on Tuesday, September 22nd. The shares were purchased at an average price of $47.32 per share, for a total transaction of $7,098,000.00. Following the completion of the purchase, the insider directly owned 2,720,260 shares of the company's stock, valued at $128,722,703.20. This trade represents a 5.84% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, major shareholder Adrienne Kebodeaux sold 7,000 shares of Goosehead Insurance stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $70.00, for a total value of $490,000.00. Following the sale, the insider owned 273,027 shares of the company's stock, valued at approximately $19,111,890. This represents a 2.50% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 38.07% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts recently commented on GSHD shares. Piper Sandler increased their target price on shares of Goosehead Insurance from $48.00 to $56.00 and gave the company a "neutral" rating in a research note on Tuesday. Royal Bank Of Canada raised their price objective on Goosehead Insurance from $55.00 to $58.00 and gave the stock a "sector perform" rating in a research note on Thursday, July 23rd. Citizens Jmp decreased their target price on Goosehead Insurance from $100.00 to $80.00 and set a "market outperform" rating on the stock in a report on Monday, October 12th. Zacks Research cut Goosehead Insurance from a "hold" rating to a "strong sell" rating in a report on Thursday, October 22nd. Finally, Deutsche Bank Aktiengesellschaft set a $80.00 target price on Goosehead Insurance in a research report on Monday, October 12th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, six have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $65.08.

About Goosehead Insurance

Goosehead Insurance is an independent insurance agency that distributes personal insurance products through a network of company-operated and franchised locations. The company works with multiple insurance carriers, helping customers compare coverage options and obtain policies. Its offerings include homeowners, automobile, flood, umbrella and other personal insurance products. Goosehead also provides technology and support services to its agents, including tools for quoting, policy management and customer service.

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