Financial Analysis

"Debt On January 8, 2025, the Company entered into a credit agreement (the ""2025 Credit Agreement"") providing for an aggregate $300 million term notes payable (the ""2025 Initial Term Loan"") and $75 million revolving credit facility (the ""2025 Revolving Credit Facility""). The 2025 Initial Term Loan matures on January 8, 2032 and the 2025 Revolving Credit Facility matures on January 8, 2030. The Company recorded $6.8 million of debt issuance costs and original issue discount related to the 2025 Initial Term Loan within notes payable and $1.8 million of debt issuance costs related to the 2025 Revolving Credit Facility within other assets in the condensed consolidated balance sheets. On July 9, 2025, the Company entered into Amendment No. 1 to the 2025 Credit Agreement in order to refinance the outstanding balance of the 2025 Initial Term Loan with a new term loan facility (the ""Term B-1 Facility""). The amendment reduced the applicable interest rate on our term loan borrowings under the facility by 0.50% to a rate of Term SOFR plus 3.00%. The Term B-1 Facility is payable in quarterly installments of $0.7 million, with a balloon payment of $280.5 million on January 8, 2032. The 2025 Credit Agreement is secured by all property owned, leased or operated by the Company except for certain excluded assets. As of June 30, 2026, the Company had $26.0 million drawn against the revolving credit facility and had $49.0 million available to draw. The Term B-1 Facility bears interest a …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table disaggregates revenue by source (in thousands) : Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Type of revenue stream: Commissions and agency fees Renewal Commissions $ 21,034 $ 23,119 $ 39,196 $ 40,071 New Business Commissions 9,613 7,559 17,065 13,314 Agency Fees 3,083 2,906 5,468 5,146 Contingent Commissions 15,725 4,492 26,411 8,968 Franchise revenues Renewal Royalty Fees 52,507 45,381 96,101 82,625 New Business Royalty Fees 9,396 7,820 17,282 14,749 Initial Franchise Fees 1,360 1,247 2,969 2,589 Other Franchise Revenues 576 1,324 1,761 1,781 Interest Income 95 179 212 368 Total Revenues $ 113,389 $ 94,027 $ 206,465 $ 169,611 Timing of revenue recognition: Transferred at a point in time $ 33,730 $ 33,584 $ 61,729 $ 58,531 Transferred over time 79,659 60,443 144,736 111,080 Total Revenues $ 113,389 $ 94,027 $ 206,465 $ 169,611

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Equity-Based CompensationStock option expense was $4.8 million and $11.0 million for the three and six months ended June 30, 2026. Stock option expense was $6.0 million and $12.3 million for the three and six months ended June 30, 2025.

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"Income Taxes GSHD is the sole managing member of GF, which is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, GF is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by GF is passed through to and included in the taxable income or loss of its members, including GSHD, on a pro rata basis. GSHD is subject to U.S. federal income taxes, in addition to state and local income taxes, with respect to GSHD's allocable share of income of GF. Income Tax Expense Tax expense from income taxes was $4.1 million for the three months ended June 30, 2026 compared to tax expense of $1.9 million for the three months ended June 30, 2025. The effective tax rate was 20% for the three months ended June 30, 2026 compared to 19% for the three months ended June 30, 2025. Tax expense was $5.9 million for the six months ended June 30, 2026 compared to tax expense of $0.2 million for the six months ended June 30, 2025. The effective tax rate was 19% for the six months ended June 30, 2026 and 2% for the six months ended June 30, 2025. The change in the effective tax rate was primarily due to a decrease in the excess tax benefit recognized on stock option exercises during the six months ended June 30, 2025. Deferred Taxes Deferred tax assets at June 30, 2026 were $209.8 million compared to $216.4 million at December 31, 2025. The primary driver of the decrease was a change in the ou …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Litigation From time to time, GSHD may be involved in various legal proceedings, lawsuits and claims incidental to the conduct of the Company's business. The Company records accruals for legal contingencies to the extent that it has concluded that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. When a material loss contingency is reasonably possible but not probable, the Company does not record a liability, but instead discloses the nature and the amount of the claim, and an estimate of the loss or range of losses, if such an estimate can be made. In the opinion of the Company's management, the likely results of any ongoing legal matters are not expected, either individually or in the aggregate, to have a material adverse effect on the Company's financial position, results of operations or cash flows. On November 10, 2022, a verified stockholder class action complaint for declaratory relief, captioned Mickey Dollens v. Goosehead Insurance, Inc., C.A. No. 2022-1018-JTL, was filed in the Court of Chancery of the State of Delaware (the Dollens Action), alleging certain corporate governance documents adopted by the Company were invalid under Delaware law. On August 8, 2023, the parties entered into a proposed settlement providing for certain non-monetary benefits to the class (i.e., revisions to the Company's Stockholder Agreement). Additionally, the plaintiffs petitioned the Court for attorneys fees and litigation expense …

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Recently Adopted Accounting Pronouncements In July 2025, the FASB issued ASU No. 2025-05, Financial InstrumentsCredit Losses(Topic 326)Measurement of Credit Losses for Account Receivable and Contract Assets. The amendments provide for a practical expedient that an entity may assume that conditions as of the balance sheet date remain unchanged over the remaining life of the asset when estimating expected credit losses for current accounts receivable and current contract assets arising from revenue transactions from contracts with customers. The amendments are effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. The Company has adopted this ASU for the annual reporting period ending December 31, 2026 and will apply the practical expedient prospectively. Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU No. 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses . The amendment requires additional disclosures of certain costs and expenses within the notes to the financial statements. Additionally, in January 2025, the FASB issued ASU No. 2025-01, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date , which clarified that the updates are effective for annual reporting periods beginning after …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Revenues Commissions and agency fees The Company earns commissions, which are paid as a percentage of the policy premiums placed by the Company, by performing its obligation to identify, place, and make effective insurance coverage on behalf of its customer, the insured. The Company defines the term of the policy as the contractual period the policy provides insurance coverage to the insured, which is typically one year or less. Commissions earned for the placement of the initial policy term for a given insurance product are recorded as New Business Commissions. New Business Commissions are earned at a point in time on the effective date of the policy, which is when the customers unilateral right to cancel the policy without consideration expires, as the Company has no further performance obligations for the initial term once the policy is placed and made effective. After the initial policy term for a given insurance product, the Company earns Renewal Commissions by assisting the customer to make effective a renewal policy that satisfies the customers current insurance coverage needs. The Company performs this obligation by monitoring the customers policy to ensure a renewal is offered by the carrier and that the client promptly pays the premium. Alternatively, based on the needs of the customer, the Company may assist the customer to adjust coverage terms to satisfy its current insurance coverage needs or the Company may assist the customer to re-shop the insurance coverage …

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Segment Information The Company is organized into a single reportable segment: insurance distribution. The insurance distribution segment provides clients with access to home, auto, umbrella, motorcycle, flood, and other ancillary insurance products. The Company derives its revenue entirely from within the United States and manages business activities on a consolidated basis. The Companys chief operating decision maker is its Chief Executive Officer. The accounting policies of the insurance distribution segment are the same as those described in the summary of significant accounting policies. The chief operating decision maker uses net income, as reported on the Condensed Consolidated Statements of Operations, to assess performance and allocate resources for the insurance distribution segment. The significant segment expense categories regularly provided to the chief operating decision maker are the same as those included on the Condensed Consolidated Statements of Operations. The measure of segment assets is total assets as reported on the Condensed Consolidated Balance Sheets. The chief operating decision maker uses net income to assess performance by examining period-over-period trends, benchmarking to the Company's competitors, and monitoring budget versus actual results. The chief operating decision maker uses net income to evaluate income generated from segment assets in deciding whether to reinvest profits into the segment or into other parts of the entity, such as for …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the annual disclosures required by accounting principles generally accepted in the United States of America (""GAAP""). However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated balance sheets at June 30, 2026 and December 31, 2025, the condensed consolidated statements of operations and stockholders' equity for the three and six months ended June 30, 2026 and 2025, and cash flows for the six months ended June 30, 2026 and 2025. The interim period condensed consolidated financial statements should be read in conjunction with the consolidated financial statements that are included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2025. The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of the results that can be expected for the entire year. The Company experiences seasonal fluctuations of its revenue due to the timing of contingent commission revenue recognition and trends in housing market activity. Reclassification Certain prior period amounts have been reclassified to conform to the current period's presentation. …

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"Stockholders' Equity Class A Common Stock GSHD has a total of 23,803 thousand shares of its Class A common stock outstanding at June 30, 2026. Each share of Class A common stock holds economic rights and entitles its holder to one vote per share on all matters submitted to a vote of the stockholders of GSHD. Class B Common Stock GSHD has a total of 11,713 thousand shares of its Class B common stock outstanding at June 30, 2026. Each share of Class B common stock has no economic rights but entitles its holder to one vote per share on all matters submitted to a vote of the stockholders of GSHD. Holders of Class A common stock and Class B common stock vote together as a single class on all matters presented to GSHD's shareholders for their vote or approval, except as otherwise required by applicable law, by agreement, or by GSHD's certificate of incorporation. Earnings Per Share Basic earnings per share (""EPS"") of Class A common stock is computed by dividing net income attributable to GSHD by the weighted average shares of Class A common stock outstanding during the period. Diluted EPS of Class A common stock is computed by dividing net income attributable to GSHD by the weighted average number of shares of Class A common stock outstanding during the period, adjusted to give effect to potentially dilutive securities. Shares of the Companys Class B common stock do not share in the earnings or losses attributable to Goosehead Insurance, Inc. and are therefore not participating …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing