📊 GSHD Key Takeaways
Is Goosehead Insurance, Inc. (GSHD) a Good Investment?
Goosehead exhibits a critical fundamental weakness: negative stockholders' equity of -$121.3M despite 16.2% revenue growth, indicating severe balance sheet deterioration. While positive free cash flow ($21.2M) and 10.1x interest coverage suggest operational viability, the combination of $314.9M debt, flat net income despite strong top-line growth, and technical insolvency creates substantial refinancing and dilution risk.
Goosehead is delivering strong top-line growth with solid operating margins and excellent cash generation for an asset-light insurance distribution model. Liquidity and interest coverage are robust, suggesting debt is manageable despite negative stockholders' equity. The key question is converting revenue growth into consistent EPS/NI growth by controlling compensation and other operating costs.
Why Buy Goosehead Insurance, Inc. Stock? GSHD Key Strengths
- Strong free cash flow generation ($21.2M with 22.8% FCF margin) demonstrates underlying cash-generating ability
- Solid revenue growth of 16.2% YoY indicates market demand and business expansion
- Low capital intensity ($1.6M CapEx) provides operational flexibility and minimal reinvestment requirements
- Adequate interest coverage ratio of 10.1x suggests current debt service capacity
- Double-digit revenue growth with 20% operating margin shows healthy unit economics
- Strong cash generation with ~24% FCF margin and low capex
- High interest coverage (50x) and adequate liquidity reduce near-term financial risk
GSHD Stock Risks: Goosehead Insurance, Inc. Investment Risks
- Negative stockholders' equity of -$121.3M represents technical balance sheet insolvency and existential solvency risk
- Net income growth stalled at 0.0% YoY despite 16.2% revenue growth, with EPS declining 10.3%, indicating deteriorating operational margins and cost control challenges
- High leverage with $314.9M long-term debt and only $25.7M cash creates severe refinancing risk and constrains financial flexibility for future growth or downturns
- Negative equity suggests prior goodwill impairment, acquisitions, or cumulative losses requiring eventual balance sheet restructuring or equity dilution
- Negative stockholders' equity and sizable liabilities pose balance sheet headline/covenant risk
- Flat net income and declining EPS indicate expense pressure and/or dilution limiting operating leverage
- Dependence on carrier commissions and regulatory environment could pressure margins
Key Metrics to Watch
- Stockholders' equity trend and breakdown (identify sources of negative equity and path to positive)
- Net income growth and operating margin expansion to demonstrate revenue leverage
- Free cash flow sustainability and debt reduction trajectory
- Debt refinancing milestones and total debt levels relative to operating cash flow
- Operating margin trend
- Free cash flow margin (FCF/Revenue)
Goosehead Insurance, Inc. (GSHD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 22.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
GSHD Profit Margin, ROE & Profitability Analysis
GSHD vs Finance Sector: How Goosehead Insurance, Inc. Compares
How Goosehead Insurance, Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Goosehead Insurance, Inc. Stock Overvalued? GSHD Valuation Analysis 2026
Based on fundamental analysis, Goosehead Insurance, Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Goosehead Insurance, Inc. Balance Sheet: GSHD Debt, Cash & Liquidity
GSHD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Goosehead Insurance, Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $0.55 reflects profitable operations.
GSHD Revenue Growth, EPS Growth & YoY Performance
GSHD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $75.6M | $2.3M | N/A |
| Q3 2025 | $78.0M | $7.6M | $0.29 |
| Q2 2025 | $78.1M | $5.2M | $0.18 |
| Q1 2025 | $64.5M | $1.8M | $0.05 |
| Q3 2024 | $71.0M | $6.9M | $0.28 |
| Q2 2024 | $69.3M | $3.6M | $0.15 |
| Q1 2024 | $58.0M | -$81.0K | $0.00 |
| Q3 2023 | $57.7M | $64.0K | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Goosehead Insurance, Inc. Dividends, Buybacks & Capital Allocation
GSHD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Goosehead Insurance, Inc. (CIK: 0001726978)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 22, 2026 | 4 | xslF345X06/wk-form4_1779485872.xml | View → |
| May 21, 2026 | 4 | xslF345X06/wk-form4_1779405538.xml | View → |
| May 18, 2026 | 4 | xslF345X06/ownership.xml | View → |
| May 15, 2026 | 4 | xslF345X06/wk-form4_1778883271.xml | View → |
| May 15, 2026 | 4 | xslF345X06/wk-form4_1778883181.xml | View → |
❓ Frequently Asked Questions about GSHD
What is the AI rating for GSHD?
Goosehead Insurance, Inc. (GSHD) has a Combined AI Rating of HOLD from Claude (SELL) and ChatGPT (BUY) with 67% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GSHD's key strengths?
Claude: Strong free cash flow generation ($21.2M with 22.8% FCF margin) demonstrates underlying cash-generating ability. Solid revenue growth of 16.2% YoY indicates market demand and business expansion. ChatGPT: Double-digit revenue growth with 20% operating margin shows healthy unit economics. Strong cash generation with ~24% FCF margin and low capex.
What are the risks of investing in GSHD?
Claude: Negative stockholders' equity of -$121.3M represents technical balance sheet insolvency and existential solvency risk. Net income growth stalled at 0.0% YoY despite 16.2% revenue growth, with EPS declining 10.3%, indicating deteriorating operational margins and cost control challenges. ChatGPT: Negative stockholders' equity and sizable liabilities pose balance sheet headline/covenant risk. Flat net income and declining EPS indicate expense pressure and/or dilution limiting operating leverage.
What is GSHD's revenue and growth?
Goosehead Insurance, Inc. reported revenue of $93.1M.
Does GSHD pay dividends?
Goosehead Insurance, Inc. does not currently pay dividends.
Where can I find GSHD SEC filings?
Official SEC filings for Goosehead Insurance, Inc. (CIK: 0001726978) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GSHD's EPS?
Goosehead Insurance, Inc. has a diluted EPS of $1.04.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GSHD a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Goosehead Insurance, Inc. has a HOLD rating with 67% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is GSHD stock overvalued or undervalued?
Valuation metrics for GSHD: ROE of N/A (sector avg: 12%), net margin of 5.3% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy GSHD stock in 2026?
Our dual AI analysis gives Goosehead Insurance, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GSHD's free cash flow?
Goosehead Insurance, Inc.'s operating cash flow is $22.9M, with capital expenditures of $1.6M. FCF margin is 22.8%.
How does GSHD compare to other Finance stocks?
Vs Finance sector averages: Net margin 5.3% (avg: 25%), ROE N/A (avg: 12%), current ratio 1.32 (avg: 1.2).