Goosehead Insurance Estimates Third-Quarter Revenue at $108.8 Million to $110.8 Million and Plans Restatement
Key Facts
Goosehead Insurance said on November 9 that its third-quarter 2026 revenue is estimated at $108.8 million to $110.8 million, up about 17% at the midpoint from the same period a year earlier, while announcing it would restate prior financial statements. The company said the quarterly figures are preliminary and have neither been reviewed nor audited by its independent auditor, and final results may differ. Core revenue, a non-GAAP measure, was estimated at $94.7 million, up 13% from $83.9 million in the third quarter of 2025. The company reaffirmed its 2026 organic revenue growth outlook of 12% to 19%, taking into account the expected range of the restatement's impact. It also maintained its outlook for gross written premium growth of 12% to 20%.
In its insurance business, placed written premiums in the third quarter rose 11% year over year to $1.31 billion, while the number of active policies increased 14% to about 2.1 million, the company said. Goosehead attributed core revenue growth to continued improvement in client retention and strong new business production. It said growth in total producers and improved franchise productivity supported the expansion. The company had 568 agents in corporate offices, up 9% from the same period a year earlier. Franchise producers totaled 2,272, up 7%. The indicators show an expanding base of policies and producers during the same period the company announced a review of its accounting treatment for certain items.
Management said a routine U.S. Securities and Exchange Commission review of the company's filings included a comment letter, after which it concluded that its historical accounting for certain costs of obtaining customer contracts did not comply with GAAP. According to the company, some qualifying commissions paid to obtain contracts had been recorded in employee compensation and benefits expense. Under the treatment it plans to adopt, those commissions should have been capitalized and amortized over the expected benefit period. The company said the change will reduce compensation and benefits expense and increase operating income in the periods concerned. It estimated the impact at about 0.5% to 5.5% of compensation and benefits expense for each of 2025 and the interim periods ended March 31 and June 30, 2026. It also cited related effects on taxes and other assets.
The review also covered the treatment of certain fees charged to franchisees related to technology and the errors and omissions insurance program. The company said correcting this item will reclassify revenue and expenses by equal amounts, without changing the timing of their recognition. It added that the treatment had no effect on operating income, net income or cash flows. On a preliminary basis, the company expects 2025 revenue and selling, general and administrative expenses to each increase by between $11 million and $16 million. For the first half of 2026, it expects an equal increase in both items of between $5.5 million and $8.5 million. This correction differs from the commissions adjustment: it concerns the presentation of fees in the statements, while the commissions treatment changes prior-period expenses.
Goosehead said the statements that should no longer be relied upon include audited consolidated financial statements for fiscal years 2023, 2024 and 2025, as well as statements for the quarters ended March 31 and June 30, 2026. Affected periods also include quarterly and year-to-date statements for 2023 through 2025. The company plans to file an amendment to its 2025 annual report and amendments to its first- and second-quarter 2026 reports as soon as possible, without specifying a filing deadline. These steps remain subject to completing the restatement and determining its effects on the periods concerned. In the second quarter of 2026, the company reported total revenue of $113.4 million and core revenue of $95.6 million. The stock closed at $55.55 on November 6, the last close before the November 9 announcement, so that price does not reflect market movement after the news.
The company scheduled a call to discuss its preliminary results for the announcement day, November 9, 2026, at 4:30 p.m. Eastern time. In its annual outlook update, Goosehead maintained its organic revenue growth range of 12% to 19%, taking into account the expected impact of the restatement. It also reiterated its outlook for written premium growth of 12% to 20% in fiscal 2026. The company said the outlook remains in place alongside its review of prior statements. It did not announce a specific date for filing the amendments, saying only that it would file the amended reports as soon as possible.