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

Goosehead Insurance (NASDAQ:GSHD) posted its earnings results on Monday. The company reported $0.53 EPS for the quarter, beating the consensus estimate 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 business earned $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 Stock Performance

Shares of NASDAQ GSHD traded down $8.56 during mid-day trading on Tuesday, reaching $46.13. The company had a trading volume of 1,057,457 shares, compared to its average volume of 397,072. The firm has a market cap of $1.64 billion, a price-to-earnings ratio of 37.71, a PEG ratio of 2.06 and a beta of 1.51. The business’s 50-day simple moving average is $51.14 and its 200 day simple moving average is $50.53. Goosehead Insurance has a one year low of $33.68 and a one year high of $79.85.

Key Headlines Impacting 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

Insider Activity

In related news, major shareholder Adrienne Kebodeaux sold 7,000 shares of Goosehead Insurance stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $70.00, for a total value of $490,000.00. Following the transaction, the insider directly owned 273,027 shares of the company’s stock, valued at $19,111,890. This trade represents a 2.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, major shareholder Durable Capital Partners Lp purchased 150,000 shares of the stock in a transaction dated Tuesday, September 22nd. The shares were acquired at an average cost of $47.32 per share, with a total value of $7,098,000.00. Following the acquisition, the insider directly owned 2,720,260 shares in the company, valued at $128,722,703.20. This represents a 5.84% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 38.07% of the stock is owned by company insiders.

Analysts Set New Price Targets

Several research firms have weighed in on GSHD. Weiss Ratings cut Goosehead Insurance from a “hold (c)” rating to a “hold (c-)” rating in a research report on Friday, September 18th. Texas Capital raised shares of Goosehead Insurance from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, September 29th. Truist Financial decreased their price target on shares of Goosehead Insurance from $58.00 to $48.00 and set a “hold” rating on the stock in a research note on Tuesday, October 13th. Zacks Research downgraded shares of Goosehead Insurance from a “hold” rating to a “strong sell” rating in a research note on Thursday, October 22nd. Finally, Deutsche Bank Aktiengesellschaft set a $80.00 price target on shares of Goosehead Insurance in a research report on Monday, October 12th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, six have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target 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.