Goosehead Insurance - $GSHD - Earnings Analysis: Significant increase in net income and adjusted EBITDA.

Business Model

Goosehead Insurance generates revenue through commissions and agency fees, franchise revenues, and interest income. Core revenues consist of New Business Commissions, Agency Fees, New Business Royalty Fees, Renewal Commissions, and Renewal Royalty Fees.

Revenue Sources

• Commissions and agency fees from insurance policies
• Franchise revenues from franchise operations
• Interest income on cash and investments

Income Statement Analysis

• Total Revenues grew 49% over the prior-year period to $93.9 million in the fourth quarter of 2024.
• Fourth quarter net income of $23.8 million improved from net income of $5.4 million a year ago.

Balance Sheet Analysis

• Total assets increased by 12.05% from $354.892 million to $397.653 million.
• Total equity increased significantly by 132.89% from $16.786 million to $39.073 million.

Capital Allocation

On January 9, 2025, the board of directors of the Company declared a one-time special cash dividend of $5.91 to all holders of Class A common stock. The special distribution resulted in a payment of $59 million to our non-controlling interest holders.

Management Commentary

We had an outstanding 2024 in the face of significant macro headwinds.

I am pleased we began to demonstrate growth re-acceleration in a number of key performance indicators including policies in force were up 13%.

Overall Sentiment: Positive

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.