Goosehead Insurance Q2 adjusted EPS, EBITDA beat expectations on agent and franchise growth

Overview

• U.S. personal lines insurance agency's Q2 revenue rose 21% yr/yr

• Adjusted EPS for Q2 beat analyst expectations

• Adjusted EBITDA for Q2 beat analyst expectations

Outlook

• Company raises 2026 total revenue growth guidance to 12%-19% organically

• Goosehead expects 2026 total written premiums to grow 12%-20%

• Company says product market is more favorable than in recent years

Result Drivers

• POLICIES IN FORCE - Core revenue growth was driven by more policies in their renewal term, supported by an 86% client retention rate and more new policies placed

• AGENT AND FRANCHISE GROWTH - Growth in the number of corporate and franchise sales agents and improved franchise productivity contributed to new policy sales

• FAVORABLE PRODUCT MARKET - Co said the product market is more favorable than it has been in years, supporting growth

Company press release: ID:nGNXpxgYK

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the multiline insurance brokers peer group is "buy."

• Wall Street's median 12-month price target for Goosehead Insurance Inc is $72.00, about 34% above its July 21 closing price of $53.75

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads

• July 21 - Neptune Insurance Q2 revenue rises 33% on record new business sales

• July 21 - Chubb Q2 adjusted EPS beats estimates on underwriting discipline

• July 21 - Amerisafe Q2 adjusted EPS misses estimates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)