Goosehead Insurance Reports Strong Q4 Growth

- Total written premiums, a key indicator of future revenue, rose 13% to $1.1 billion in the fourth quarter, while policies in force grew 14% to approximately 1.9 million. - Despite a 12% increase in Q4 revenue to $105.3 million, net income declined to $20.8 million from $23.8 million in the prior-year period, attributed to higher operating expenses. Employee compensation and benefits costs rose from $45.0 million to $48.9 million year-over-year. - The company's "Digital Agent 2.0" platform, which enables an end-to-end digital purchasing experience, is now live in Texas with several auto and home carriers, and the company has already seen policies bound with no human involvement. - Goosehead is increasing its investment in technology, forecasting $25-$35 million in cash technology investments for 2026, which is expected to cause a modest downturn in margins. For the full year 2025, the company's adjusted EBITDA margin was 31%. - The enterprise sales and partnerships channel nearly doubled its headcount to 115 by the end of 2025, with the partnership pipeline now representing a potential 2.3 million clients. The corporate agent headcount also saw a 17% increase compared to the prior-year period. - The company has been actively repurchasing its own stock, buying back 323,000 shares in Q4 for $22.5 million. The board also authorized an additional $180 million for share repurchases through May 1, 2027. - For the full year 2026, the company projects total revenue to grow organically between 10% and 19%, and total written premiums to increase between 12% and 20%.