📊 GSHD Key Takeaways
Is GSHD a Good Investment? Thesis Analysis
Goosehead demonstrates strong operational performance with 16.2% revenue growth and exceptional free cash flow generation ($86.1M, 23.6% margin), but severe balance sheet deterioration—negative stockholders' equity of -$95.5M with liabilities exceeding assets by $162.8M—indicates structural financial distress. Stagnant net income growth (0.0% YoY) and declining diluted EPS (-10.3% YoY) despite revenue expansion signals deteriorating profitability trends and shareholder value destruction.
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 GSHD? Key Strengths
- Strong revenue growth of 16.2% YoY demonstrating market expansion
- Exceptional free cash flow generation of $86.1M with 23.6% FCF margin indicating quality earnings conversion
- Excellent interest coverage ratio of 50.1x showing strong ability to service debt obligations
- Robust operating margin of 20.4% reflecting operational efficiency
- 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 Investment Risks to Consider
- Critical: Negative stockholders' equity of -$95.5M—balance sheet insolvency with liabilities exceeding assets by $162.8M
- Profitability deterioration: flat net income growth (0.0% YoY) and declining diluted EPS (-10.3% YoY) despite revenue growth
- Long-term debt of $289.5M creates substantial refinancing and leverage risk relative to negative equity base
- 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 path to positive balance sheet
- Net income growth acceleration relative to revenue growth
- Debt reduction progress and debt-to-assets ratio improvement
- Operating margin trend
- Free cash flow margin (FCF/Revenue)
GSHD Financial Metrics
💡 AI Analyst Insight
The 23.6% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
GSHD Profitability Ratios
GSHD vs Finance Sector
How Goosehead Insurance, Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is GSHD Overvalued or Undervalued?
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.
GSHD Balance Sheet & Liquidity
GSHD 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
GSHD Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $53.0M | $342.0K | $0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
GSHD Capital Allocation
GSHD SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Goosehead Insurance, Inc. (CIK: 0001726978)
📋 Recent SEC Filings
❓ 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 71% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GSHD's key strengths?
Claude: Strong revenue growth of 16.2% YoY demonstrating market expansion. Exceptional free cash flow generation of $86.1M with 23.6% FCF margin indicating quality earnings conversion. 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: Critical: Negative stockholders' equity of -$95.5M—balance sheet insolvency with liabilities exceeding assets by $162.8M. Profitability deterioration: flat net income growth (0.0% YoY) and declining diluted EPS (-10.3% YoY) despite revenue growth. 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 $365.3M.
Does GSHD pay dividends?
Goosehead Insurance, Inc. pays dividends, with $145.8M distributed to shareholders in the trailing twelve months.
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 April 2026, Goosehead Insurance, Inc. has a HOLD rating with 71% 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 7.6% (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 $91.8M, with capital expenditures of $5.7M. FCF margin is 23.6%.
How does GSHD compare to other Finance stocks?
Vs Finance sector averages: Net margin 7.6% (avg: 25%), ROE N/A (avg: 12%), current ratio 1.60 (avg: 1.2).