Goosehead revenue rises 17% as it prepares for AI-assisted shopping
Goosehead Insurance reported preliminary third-quarter revenue of $108.8 million to $110.8 million, up approximately 17% at the midpoint, while announcing plans to restate prior financial statements and connect its platform to personal AI assistants.
“For example, if a client chooses to begin their shopping experience through their favorite AI assistant, Goosehead will be positioned to serve them there. We’re in the process of building a Model Context Protocol, or MCP server, on top of our existing services and capabilities to enable those connections. We expect that to be live by the end of this year.” – COO Mark Jones.
Core revenue increased 13% to $94.7 million. Total written premiums rose 11% to $1.31 billion, and policies in force grew 14% to approximately 2.1 million. Client retention improved to 86%, from 85% a year earlier.
The independent agency ended September with 568 corporate agents and 2,272 franchise producers, bringing its total producer count to 2,840, up 7%. Operating franchises declined to 870 from 1,068, while average producers per franchise reached a record 2.6.
Goosehead is expanding partnerships to reach customers beyond home purchases. Its enterprise sales team recorded new business growth above 50% for the eighth consecutive quarter, and signed partnerships collectively represent more than 5 million potential clients. The company also has 12 embedded franchisees within partner businesses, where new business production increased 64%.
“We’ve launched 12 embedded franchisees within businesses with established customer lead flow, with new business production up 64% from the third quarter of last year for these agencies. In some cases, we have seeded these new partnerships with experienced Goosehead talent to enable them to scale rapidly. This has become a strategic pillar of the corporate sales team. Alongside these partnerships, enterprise sales expands our reach through institutional relationships, primarily outside the home closing transaction.” – CEO Mark Miller.
On technology, Goosehead is building a Model Context Protocol server, expected to launch by year-end, to let personal AI assistants connect with its insurance shopping capabilities. It is also working to improve its visibility in AI-generated search results.
Management said its Digital Agent already allows customers to move from quote to policy issuance digitally, although most still consult a local agent before completing a purchase. Executives did not commit to autonomous purchasing by AI agents, citing unresolved regulatory questions and the need to preserve coverage context and carrier controls.
Digital channels, including its portal, mobile app and AI voice assistant Lily, now handle nearly one-third of service work entirely, according to management.
“Our service function is now reachable through channels that weren’t available even a few years ago, places like our web portal, mobile app, and AI voice assistant, Lily. With no pressure from us to dictate how clients choose to interact, they’re naturally selecting the option that works best for them. More service work than ever is being completed entirely through digital channels, nearly a third of the total workload, all within the safeguards we’ve put in place to protect clients and carriers alike.” – COO Mark Jones.
Separately, Goosehead is delaying its full earnings release while correcting two accounting issues affecting financial statements covering 2023 through the first half of 2026. Certain agent commissions were expensed immediately instead of capitalized and amortized, while technology and errors and omissions insurance fees charged to franchisees were recorded as expense offsets instead of revenue.
The company expects the corrections to increase reported revenue and operating income, with no effect on core revenue or cash flows. The preliminary quarterly results have not been reviewed or audited.
