Goosehead Expects Revenue of Up to $110.8 Million, Delays Third-Quarter Results
Key Facts
Goosehead Insurance on November 9, 2026, announced preliminary results for the third quarter ended September 30, estimating revenue of $108.8 million to $110.8 million, an increase of about 17% at the midpoint from the year-earlier period. The company postponed the release of full results and said it would restate prior-period financial statements to correct departures from generally accepted accounting principles. The moves come as its insurance business recorded growth in premiums and policies, while the quarter’s figures remain estimates prepared before the financial close and restatement were complete. The company warned that final results may differ from the preliminary estimates, and that the difference could be material. In a filing with the U.S. Securities and Exchange Commission, it said it did not expect to file its third-quarter report by the November 9 deadline.
The company set the comparable 2025 period’s revenue range at $92.9 million to $94.9 million, and said its estimated total revenue growth reflects the expected impact of the restatement. Core revenue, a non-GAAP measure, was about $94.7 million, up 13% from $83.9 million in the third quarter of 2025. The company attributed the growth to continued improvement in customer retention and strong new business generation. It added that this was driven by growth in total producers and improved franchise productivity. Chief Executive Mark Miller said years of investment in agents, the service organization and proprietary technology had created a platform that supports the company’s growth.
Placed written premiums rose 11% to $1.31 billion during the quarter, and active policies increased 14% to about 2.1 million as of September 30. The company said it views gross written premiums as a leading indicator of future revenue growth. Its sales agent count was 568, up 9% from the year-earlier period, while franchise producers totaled 2,272, up 7%. These figures show the producer base expanding alongside growth in premiums and policies. The operational expansion puts the preliminary revenue estimates in the context of business growth, without resolving the impact of accounting adjustments on final results.
The company said its review of the accounting for certain customer contract acquisition costs began after management received a comment letter from the U.S. Securities and Exchange Commission as part of its routine review of annual filings. Management concluded that the historical treatment of some of these costs did not comply with accounting rules. The first issue concerns qualifying commissions previously recorded as compensation and benefits expense. The company said its intended treatment would defer and capitalize these commissions, then amortize them over the expected benefit period. It estimated this would reduce compensation expense and increase operating income by an amount equivalent to 0.5% to 5.5% of compensation and benefits expense in 2025 and the quarters ended March 31 and June 30, 2026.
The second issue concerns technology fees and errors and omissions insurance program fees charged to franchisees. The company said reclassifying these fees would increase franchise revenue and selling, general and administrative expenses by equal amounts, without changing the timing of recognition. It estimated equal increases of $11 million to $16 million for the year ended December 31, 2025, and $5.5 million to $8.5 million for the six months ended June 30, 2026. The company said this correction would not affect operating income, net income or cash flows. This issue therefore differs from the treatment of commissions, which changes the timing of expense recognition and operating income.
The periods for which the company said its financial statements should no longer be relied upon include the fiscal years 2023, 2024 and 2025. They also include interim and year-to-date statements for March, June and September of each year from 2023 through 2025, and the March and June 2026 periods. Management expects to report one or more material weaknesses in internal control over financial reporting, and also expects to conclude that disclosure controls were ineffective at the end of the affected periods. The company said it intends to file an amendment to its 2025 annual report and amendments to its first- and second-quarter 2026 reports as soon as practicable. It will file its third-quarter report after completing the restatement, without specifying a date.
Goosehead reaffirmed its forecast for organic revenue growth of 12% to 19% and gross written premium growth of 12% to 20% in fiscal 2026. It said its revenue outlook takes into account the expected range of the restatement’s impact. The stock closed at $54.69 on November 9, compared with a close of $55.55 on November 6. Market data showed a 1.56% decline during the regular session on the day of the announcement, before a 9.12% drop in after-hours trading to $49.70. Completing the restatement and filing the third-quarter report afterward are among the next steps the company announced.