Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. sophomore Avg
|
New words:
accelerated, acceleration, acquire, acquired, added, arrive, assist, assisting, assuming, authorization, beginning, behalf, blended, closely, disaggregated, discretion, dollar, FASB, fewer, foreign, guidance, inclusion, jurisdiction, location, modified, monitoring, multiplied, pattern, program, promptly, proportion, prospective, repurchase, repurchased, retired, retrospective, satisfaction, satisfy, specific, suspended, Write
Financial report summary
?Risks
- An overall decline in economic activity could have a material adverse effect on the financial condition and results of operations of our business.
- Changes in prevailing interest rates or U.S. monetary policies that affect interest rates could adversely affect our ability to generate new business.
- Volatility or declines in premiums or other adverse trends in the insurance industry may seriously undermine our profitability.
- Because the revenue we earn on the sale of certain insurance products is based on premiums and commission rates set by Carriers, any decreases in these premiums or commission rates, or actions by Carriers seeking repayment of commissions, could result in revenue decreases or expenses to us.
- Contingent Commissions we receive from Carriers are less predictable than standard commissions, and any decrease in the amount of the commissions we receive could adversely affect our results of operations.
- Our business is subject to risks related to legal proceedings and governmental inquiries.
- Conditions impacting Carriers or other parties that we do business with may impact us.
- Competition in our industry is intense and, if we are unable to compete effectively, we may lose clients and our financial results may be negatively affected.
- Our business, financial condition and results of operations may be negatively affected by E&O claims.
- Our business is dependent upon information processing systems. Security breaches, cyberattacks or other similar incidents with respect to our or our vendors' information processing systems may damage our reputation and negatively impact client retention and carrier, franchise, and Referral Partner relationships.
- We rely on the availability and performance of information technology services provided by third parties.
- Our inability to successfully recover should we experience a disaster or other business continuity problem could cause material financial loss, loss of human capital, regulatory actions, reputational harm or legal liability.
- We utilize artificial intelligence, which could expose us to liability or adversely affect our business.
- If we are unable to apply technology effectively in driving value for our clients through technology-based solutions or gain internal efficiencies and effective internal controls through the application of technology and related tools, our operating results, client relationships, growth and compliance programs could be adversely affected.
- Damage to our reputation could have a material adverse effect on our business.
- Increasing scrutiny and changing expectations from investors, clients and our employees with respect to our corporate responsibility and stakeholder interest practices may impose additional costs on us or expose us to new or additional risks.
- Climate risks, including the risk of an economic crisis, risks associated with the physical effects of climate change and disruptions caused by the transition to a low-carbon economy, could adversely affect our business, results of operations and financial condition.
- Our inability to retain or hire qualified employees, as well as the loss of any of our executive officers, could negatively impact our ability to retain existing business and generate new business.
- Pandemics or other outbreaks of contagious diseases and efforts to mitigate their spread have had, and
- Non-compliance with or changes in laws, regulations or licensing requirements applicable to us could restrict our ability to conduct our business.
- Proposed tort reform legislation, if enacted, could decrease demand for casualty insurance, thereby reducing our commission revenues.
- In connection with the implementation of our corporate strategies, we face risks associated with the acquisition or disposition of businesses, the entry into new lines of business, the integration of acquired businesses and the growth and development of these businesses.
- We have debt outstanding that could adversely affect our financial flexibility and subjects us to restrictions and limitations that could significantly impact our ability to operate our business.
- Changes in our accounting estimates and assumptions could negatively affect our financial position and operating results.
- Because our business is highly concentrated in Texas, California, Florida and Illinois, adverse economic conditions, natural disasters, or regulatory changes in these states could adversely affect our financial condition.
- Changes in tax laws could impact our operations and profitability.
- We derive a significant portion of our commission revenues from a limited number of Carriers, the loss of which would result in additional expense and loss of market share.
- Our business may be harmed if we lose our relationships with Carriers, fail to maintain good relationships with Carriers, become dependent upon a limited number of Carriers or fail to develop new Carrier relationships.
- The failure by Mark Jones and Robyn Jones to maintain either a minimum voting interest in us or the ability to elect or designate for election at least a majority of our board of directors could trigger a change of control default under our Credit Agreement.
- Our results may be adversely affected by changes in the mode of compensation in the insurance industry.
- We may require additional debt financing in the future, which may not be available or may be available only on unfavorable terms.
- The failure to attract and retain highly qualified Franchisees could compromise our ability to expand the Goosehead network.
- Our financial results are affected directly by the operating results of Franchisees and agents, over whom we do not have direct control.
- Our Franchisees and agents could take actions that could harm our business.
- We are subject to a variety of additional risks associated with our Franchisees.
- Failure to support our expanding franchise system could have a material adverse effect on our business, financial condition or results of operations.
- Our franchising activities are subject to a variety of state and federal laws and regulations regarding franchises, and any failure to comply with such existing or future laws and regulations could adversely affect our business.
- We are subject to certain risks related to litigation filed by or against us, and adverse results may harm our business and financial condition.
- We may not be able to manage growth successfully.
- Our business depends on a strong brand, and any failure to maintain, protect and enhance our brand would hurt our ability to grow our business, particularly in new markets where we have limited brand recognition.
- Infringement, misappropriation, dilution or other violation of our intellectual property by third parties could harm our business.
- Failure to obtain, maintain, protect, defend or enforce our intellectual property rights, or allegations that we have infringed, misappropriated or otherwise violated the intellectual property rights of others, could harm our reputation, ability to compete effectively, financial condition and business.
- Improper disclosure of confidential, personal or proprietary information, whether due to human error, misuse of information by employees or vendors, or as a result of security breaches, cyberattacks or other similar incidents with respect to our or our vendors’ systems, could result in regulatory scrutiny, legal liability or reputational harm, and could have an adverse effect on our business or operations.
- We are subject to complex and evolving laws, regulations, rules, industry standards and contractual obligations regarding data privacy and cybersecurity, which can increase the cost of doing business, compliance risks and potential liability.
- We are a holding company and our principal asset is our 65.8% ownership interest in Goosehead Financial, LLC, and we are accordingly dependent upon distributions from Goosehead Financial, LLC to pay dividends, if any, taxes, make payments under the tax receivable agreement and pay other expenses.
- In certain circumstances, Goosehead Financial, LLC will be required to make distributions to us and the other holders of LLC Units, and the distributions that Goosehead Financial, LLC will be required to make may be substantial.
- We have Pre-IPO LLC Members who own a significant portion of our common stock and whose interests in our business may be different than yours, and certain statutory provisions afforded to stockholders are not applicable to us.
- We will be required to pay the Pre-IPO LLC Members for certain tax benefits we may claim, and the amounts we may pay could be significant.
- Some provisions of Delaware law and our certificate of incorporation and by-laws may deter third parties from acquiring us and diminish the value of our Class A common stock.
- Future sales, or the possibility of future sales, of a substantial number of our shares of Class A common stock could adversely affect the price of our shares of Class A common stock.
- We may not be able to successfully maintain effective internal controls over financial reporting.
- We expect that our stock price will be volatile, which could cause the value of your investment to decline, and you may not be able to resell your shares at or above your investment price.
- Our ability to pay dividends to our stockholders may be limited by our holding company structure, contractual restrictions and regulatory requirements.