Goosehead Insurance, Inc Announces Second Quarter 2023 Results.

WESTLAKE, Texas: Goosehead Insurance, Inc. ("Goosehead" or the "Company") (NASDAQ: GSHD), a rapidly growing independent personal lines insurance agency, today announced results for the second quarter ended June 30, 2023.

Second Quarter 2023 Highlights

Total Revenues grew organically 31% over the prior-year period to $69.3 million in the second quarter of 2023

Second quarter Core Revenues* of $61.0 million increased 27% over the prior-year period

Second quarter net income of $7.2 million improved from net income of $2.4 million a year ago. EPS of $0.15 per share increased 825% and adjusted EPS* of $0.41 per share increased 161%, over the prior-year period

Net income margin for the second quarter was 10%

Adjusted EBITDA* of $23.1 million increased from $12.5 million in the prior-year period

Adjusted EBITDA Margin* increased 9 percentage points over the prior-year period to 33%

Total written premiums placed for the second quarter increased 36% over the prior-year period to $767.3 million

Policies in force grew 21% from the prior-year period to approximately 1,427,000

Corporate sales headcount of 280 was down 44% year-over-year

Operating franchises remained steady with the prior-year period at 1,344

Total franchise producers grew 3% from a year ago to 2,069

*Core Revenue, Adjusted EPS, Adjusted EBITDA, and Adjusted EBITDA Margin are non-GAAP measures. Reconciliations of Core Revenue to total revenues, Adjusted EPS to basic earnings per share and Adjusted EBITDA to net income, the most directly comparable financial measures presented in accordance with GAAP, are set forth in the reconciliation table accompanying this release.

"We delivered outstanding second quarter results that demonstrate the tremendous strength and consistency of our business and the advantages of where we operate in the insurance value chain. For the quarter, premiums increased 36%, revenues were up 31%, core revenues grew 27%, and our adjusted EBITDA grew 85% with adjusted EBITDA margin expanding 900 basis points," stated Mark E. Jones, Chairman and CEO. "The restructuring of our corporate sales team is now complete and is producing extraordinary results. We are excited to pivot back to growth in this distribution network. The heaviest lifting to improve the health of our franchise business is also complete, but we will continue fine tuning efforts over the next few quarters. We believe our actions should yield meaningful productivity gains over time. Our ongoing efforts to...