Goosehead Insurance preliminary Q3 revenue rises on client retention, new business

Overview

• US personal lines insurance agency's preliminary Q3 revenue rose about 17% yr/yr

• Preliminary Q3 core revenue grew 13% yr/yr

• Company delaying full earnings release and restating prior results to correct GAAP departures

Outlook

• Goosehead reaffirms 2026 organic revenue growth guidance of 12% to 19%

• Company expects 2026 total written premiums to grow 12% to 20%

• Company to restate prior financials and delay full earnings release

Result Drivers

• CLIENT RETENTION AND NEW BUSINESS - Co said core revenue growth was driven by improved client retention and strong new business generation, supported by growth in total producers and franchise productivity

• WRITTEN PREMIUMS - Total written premiums placed rose 11% yr/yr, which co said is a leading indicator of future revenue growth

• AGENT AND PRODUCER GROWTH - Co reported increases in corporate agent headcount and franchise producers compared to prior year

Company press release: ID:nGNXbqyDP7

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", 7 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the multiline insurance & brokers peer group is "hold"

• Wall Street's median 12-month price target for Goosehead Insurance, Inc. is $63.00, about 13.4% above its November 6 closing price of $55.55

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 25 three months ago

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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.)