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Goosehead Insurance (GSHD) Q1 2025 earnings results (first quarter 2025)

10-Q filed Apr 24, 2025

Goosehead Insurance (GSHD) reported revenue of $75.6M for the first quarter 2025 (Q1 2025), +17% from a year earlier and -20% from the quarter before. Operating margin was 8.8%, net earnings $2.3M (3.1% of revenue).

Revenue$75.6M
Year over year+17%
Quarter over quarter-20%
Operating margin8.8%
Net earnings$2.3M

Goosehead Insurance, Q1 2025: revenue $75.6M (+17% year over year), operating margin 8.8%, net earnings $2.3M, operating cash flow $15.5M. The chart follows the revenue to costs, profit and cash.

Q1 2025AmountQ/QY/Y
Revenue$75.6M-20%+17%
Operating profit$6.6M-76%+355%
Net earnings$2.3M-84%+29%
Operating cash flow$15.5M+24%+28%
Free cash flow$14.9M+23%+26%

What changed

Revenue was $75.6M in Q1 2025, up 17% year over year and down 20% from the previous quarter. Renewal Royalty Fees was the largest line at 49% of revenue. Renewal Royalty Fees added $8.2M year over year (up 28%), 74% of the total change. Initial Franchise Fees declined 40%.

Operating profit was $6.6M, a 8.8% margin (up 6.5 points year over year). Of the extra revenue versus a year earlier, 46% reached operating profit, above the 2% margin then. Total costs grew 9% against revenue growth of 17%. The fastest-growing cost line was Other operating costs (+12%). Net earnings were $2.3M, up 29% year over year. The tax line was a benefit of $1.7M on pre-tax earnings of $1.0M.

Operating cash flow was $15.5M (up 28% year over year), 585% of net income including minority interests. Non-cash charges added back $3.0M of depreciation and amortization and $6.2M of share-based compensation. Working capital and other items added $3.6M. Capital expenditures of $579K left free cash flow of $14.9M.

Questions

What was Goosehead Insurance's revenue in the first quarter 2025?

Goosehead Insurance (GSHD) reported revenue of $75.6M for the first quarter 2025 (Q1 2025), +17% from a year earlier and -20% from the quarter before.

Was Goosehead Insurance profitable in the first quarter 2025?

Operating profit was $6.6M (8.8% of revenue) and net earnings $2.3M.

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Source: Goosehead Insurance 10-Q on SEC EDGAR.