For more information regarding the use of non-GAAP financial measures, including reconciliations of these measures to the most recent comparable GAAP financial measures, we refer you to today's earnings release. We grew our corporate footprint to more than a dozen offices across the country. We grew adjusted EBITDA from under $40 million in 2022 to over $130 million in our last four quarters and expanded our margin meaningfully through the hardest product market in 50 years. We did all this while returning significant capital to our shareholders and maintaining a conservative balance sheet.
Total written premiums grew 14%, accelerating off the first quarter to $1.36 billion. Policies in force grew 15% year-over-year, and client retention, our most impactful driver of top and bottom line performance, improved to 86%, representing its highest level since the hard market began. Total revenues grew 21% to $113 million, with core revenues up 10% to $95 million over the prior year period. When adjusting for that year-over-year variance, core revenues grew 16% and total revenues grew 26% in the second quarter.
Adjusted EBITDA was $38 million, representing a 34% margin for the quarter. This powerful and durable income stream allows them to reinvest back into their businesses to further reinforce the growth flywheel. Our pathway to achieving that is fundamentally rooted in our highly differentiated human capital advantage. Our model, focused solely on personal lines and organic growth, is highly differentiated in insurance distribution, and our results compete with some of the most successful businesses in any sector.
| Metric | Period | Current guidance |
|---|---|---|
| Total revenue growth | FY2026 | Raised (midpoint ~15.5%), driven by higher contingent commissions |
| Core revenue growth | FY2026 | Second-half acceleration off the 12% delivered in H1 (retention + new business) |
| Contingent commissions | FY2026 | 70-100 bps of total written premium |
| Compensation & G&A growth | FY2026 | High-teens to low-20% (in excess of core revenue growth given growth investments) |
| Margin (ex-contingent) | FY2026 | Moderate compression from growth investments (underlying expense outlook unchanged) |
| Metric | YoY | Note |
|---|---|---|
| Total revenues | +21% to $113.4M | Strong new business, improving retention and a 180% jump in contingent commissions; +26% adjusting for a $4M prior-year commission recovery. |
| Core revenues | +10% to $95.6M | New business and renewal growth; +16% adjusting for the prior-year $4M recovery. |
| Total written premiums | +14% to $1.36B | Accelerating from 13% in Q1 on policy-in-force growth and new business, partly offset by moderating pricing. |
| Adjusted EBITDA | +30% to $37.9M | Top-line growth and operating leverage; 33-34% margin. |
| Net income | $17.0M vs $8.3M | Revenue growth and margin expansion; GAAP diluted EPS $0.42 (up 106%), adjusted EPS $0.64, 15% net income margin. |
| New business commissions | +27% to $9.6M | Agent-management infrastructure, healthier product market, geographic expansion and enterprise sales; enterprise was 21% of new business commissions/fees. |
| Contingent commissions | +180% to $16.3M | Improved underwriting loss ratios, favorable carrier mix and optimized carrier relationships. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| CEO succession | Mark Miller as CEO | Mark Miller to retire at year-end and remain a director; President/COO Mark Jones, Jr. (nearly 10 years at Goosehead) becomes CEO, with strategy unchanged and a focus on speed of execution, simplification and rapid decision-making; John Martin is the new CFO. | — |
| Franchise productivity flywheel | Agency staffing program (2023) | Franchise producers at a record ~2,200 (avg 2.4 per franchise), with multiple agencies over 40 producers (one over 50); same-store sales up 22% (top 50 up 40%) and ~70% more franchises exceeding $100K monthly new business commissions, as productivity rises non-linearly with producer count. | — |
| Enterprise sales and embedded franchises | Launched from scratch ~3 years ago | Growing ~70% and now ~1/3 the size of the 20-year-old corporate team; seeding corporate talent into embedded franchises (Planet Home) with natural lead flow, targeting adjacencies (85M mortgages, financial services, moving companies, Vivint) beyond the 4.5-5M annual home-closing pool. | — |
| Technology and AI (Digital Agent, Lily) | Building the choice shopping platform | Digital Agent 2.0 launched (optimizing the Texas conversion funnel before multi-state rollout), and AI service agent Lily handles ~20% of calls (reaching 30%) for administrative tasks, with cost savings reinvested while preserving the human-agent moat and client experience. | — |
| Improving but moderating product market | Hardest product market in 50 years | A more stable, opening market lifts retention, new business and commission rates, but pricing is now declining modestly (auto mid-single-digit, home flat/low-single-digit), narrowing the gap between PIF and premium growth as expected. | — |
| Capital allocation and long-term focus | Significant buybacks | Q2 buybacks slowed after heavy recent repurchases (3M+ shares since 2024); management/founder reaffirmed a conservative balance sheet, prioritizing operations first, and explicitly rejected a take-private, focusing on long-term shareholder value over short-term stock swings. | — |