Goosehead Insurance (GSHD) 10-Q 4 Nov 19 2019 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2019	Nov. 01, 2019
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	001-38466
Entity Registrant Name	GOOSEHEAD INSURANCE, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-3886022
Entity Address, Address Line One	1500 Solana Blvd, Building 4, Suite 4500
Entity Address, City or Town	Westlake
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	76262
City Area Code	469
Local Phone Number	480-3669
Title of 12(b) Security	Class A Common Stock, par value $.01 per share
Trading Symbol	GSHD
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Central Index Key	0001726978
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Class A Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		15,206,440
Class B Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		21,082,051

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current Assets:
Cash and cash equivalents	$ 10,820	$ 18,635
Restricted cash	728	376
Commissions and agency fees receivable, net	2,181	2,016
Receivable from franchisees, net	1,474	703
Prepaid expenses	1,829	1,109
Other assets	69	0
Total current assets	17,101	22,839
Receivable from franchisees, net of current portion	2,607	2,048
Property and equipment, net of accumulated depreciation	9,610	7,575
Intangible assets, net of accumulated amortization	442	248
Deferred income taxes, net	14,503	1,958
Other Assets, Noncurrent	158	130
Total assets	44,421	34,798
Current Liabilities:
Accounts payable and accrued expenses	4,355	3,978
Premiums payable	728	376
Unearned revenue	330	530
Deferred rent	632	428
Note payable	3,500	2,500
Total current liabilities	9,545	7,812
Deferred rent, net of current portion	6,712	4,548
Note payable, net of current portion	43,355	45,947
Liabilities under tax receivable agreement, net of current portion	12,659	1,694
Total liabilities	72,271	60,001
Commitments and contingencies (see note 7)
Additional Paid in Capital	13,792	11,899
Retained Earnings (Accumulated Deficit)	(22,350)	(20,761)
Total stockholders' equity	(8,196)	(8,500)
Non-controlling interests	(19,654)	(16,703)
Total equity	(27,850)	(25,203)
Total liabilities and stockholders' equity	44,421	34,798
Class A Common Stock
Current Liabilities:
Common stock	152	138
Class B Common Stock
Current Liabilities:
Common stock	$ 210	$ 224

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) Parenthetical - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Class A Common Stock
Common stock par value (in dollars per share)	$ 0.01	$ 0.01
Common stock shares authorized (in shares)	300,000	300,000
Common stock shares issued (in shares)	15,173	13,800
Common stock shares outstanding (in shares)	15,173	13,800
Class B Common Stock
Common stock par value (in dollars per share)	$ 0.01	$ 0.01
Common stock shares authorized (in shares)	50,000	50,000
Common stock shares issued (in shares)	21,115	22,486
Common stock shares outstanding (in shares)	21,115	22,486

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues:
Revenues	$ 21,169,000	$ 16,054,000	$ 63,688,000	$ 45,431,000
Operating Expenses:
Employee compensation and benefits (including Class B unit compensation of $0 for the three and nine months ended September 30, 2019, and $0 and $26,134 for the three and nine months ended September 30, 2018, respectively)	11,412,000	8,956,000	30,981,000	49,646,000
General and administrative expenses	5,169,000	3,694,000	13,800,000	9,093,000
Bad debts	399,000	399,000	1,282,000	984,000
Depreciation and amortization	516,000	352,000	1,391,000	1,039,000
Total operating expenses	17,496,000	13,401,000	47,454,000	60,762,000
Income (loss) from operations	3,673,000	2,653,000	16,234,000	(15,331,000)
Other Income (Expense):
Other income (expense)	0	(22,000)	0	(22,000)
Interest expense	(609,000)	(1,631,000)	(1,861,000)	(3,598,000)
Income (loss) before taxes	3,064,000	1,000,000	14,373,000	(18,951,000)
Tax expense	301,000	164,000	1,475,000	318,000
Net income (loss)	2,763,000	836,000	12,898,000	(19,269,000)
Less: net income (loss) attributable to non-controlling interests	1,765,000	595,000	8,525,000	(10,278,000)
Net Income (Loss) Attributable to Parent	$ 998,000	$ 241,000	$ 4,373,000	$ (8,991,000)
Earnings (loss) per share:
Basic (in dollars per share)	$ 0.07	$ 0.02	$ 0.30	$ (0.66)
Diluted (in dollars per share)	$ 0.06	$ 0.02	$ 0.27	$ (0.66)
Weighted average shares of Class A common stock outstanding
Basic (in shares)	15,140	13,533	14,746	13,533
Diluted (in shares)	16,451	14,614	15,936	13,533
Dividends declared per share (in dollars per share)	$ 0	$ 0	$ 0.41	$ 0
Commissions and agency fees
Revenues:
Revenues	$ 11,739,000	$ 9,760,000	$ 38,672,000	$ 28,072,000
Franchise revenues
Revenues:
Revenues	9,261,000	6,180,000	24,564,000	17,060,000
Interest income
Revenues:
Revenues	$ 169,000	$ 114,000	$ 452,000	$ 299,000

Condensed Consolidated Statem_2

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands	Total	Class A Common Stock	Class B Common Stock	Member Units	Common stockClass A Common Stock	Common stockClass B Common Stock	Additional paid in capital	Accumulated deficit	Parent	Non-controlling interest
Beginning balance at Dec. 31, 2017	$ (41,133,000)			$ (41,133,000)	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
Beginning balance (in shares) at Dec. 31, 2017					0	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Distributions	0			0
Net income	3,768,000			3,768,000
Ending balance at Mar. 31, 2018	(37,365,000)			(37,365,000)	$ 0	$ 0	0	0	0	0
Ending balance (in shares) at Mar. 31, 2018					0	0
Beginning balance at Dec. 31, 2017	(41,133,000)			(41,133,000)	$ 0	$ 0	0	0	0	0
Beginning balance (in shares) at Dec. 31, 2017					0	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Effects of the Reorganization Transactions							(94,180,000)	(21,562,000)	(115,515,000)	(36,241,000)
Initial non-controlling interest allocation							(18,920,000)	0	(18,920,000)	18,920,000
Ending balance at Jun. 30, 2018	(26,684,000)			0	$ 135,000	$ 227,000	11,065,000	(20,996,000)	(9,569,000)	(17,115,000)
Ending balance (in shares) at Jun. 30, 2018					13,533	22,747
Beginning balance at Dec. 31, 2017	(41,133,000)			(41,133,000)	$ 0	$ 0	0	0	0	0
Beginning balance (in shares) at Dec. 31, 2017					0	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	(19,269,000)
Ending balance at Sep. 30, 2018	(26,521,000)			0	$ 135,000	$ 227,000	11,290,000	(20,851,000)	(9,199,000)	(17,322,000)
Ending balance (in shares) at Sep. 30, 2018					13,533	22,747
Beginning balance at Mar. 31, 2018	(37,365,000)			(37,365,000)	$ 0	$ 0	0	0	0	0
Beginning balance (in shares) at Mar. 31, 2018					0	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Distributions	(1,278,000)			(1,278,000)
Net income	621,000			621,000
Ending balance at May. 01, 2018	(38,022,000)			(38,022,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	260,000						260,000		260,000
Effects of the Reorganization Transactions	(113,734,000)			38,022,000		$ 227,000	(94,180,000)	(21,562,000)	(115,515,000)	(36,241,000)
Issuance of Class B Common Stock						22,747
Initial non-controlling interest allocation	0						(18,920,000)		(18,920,000)	18,920,000
Issuance of Class A Common Stock					13,533
Issuance of Class A common stock sold in initial public offering, net of offering costs	124,129,000				$ 135,000		123,994,000		124,129,000
Distributions subsequent to initial public offering	(745,000)
Distributions subsequent to initial public offering | Misclassification of distributions to non-controlling interest										(745,000)
Deferred tax adjustments related to Tax Receivable Agreement	(89,000)						(89,000)		(89,000)
Ending balance at Jun. 30, 2018	(26,684,000)			0	$ 135,000	$ 227,000	11,065,000	(20,996,000)	(9,569,000)	(17,115,000)
Ending balance (in shares) at Jun. 30, 2018					13,533	22,747
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income Subsequent to Initial Public Offering	1,517,000							566,000	566,000	951,000
Net income	836,000
Equity-based compensation	344,000						344,000		344,000
Distributions subsequent to initial public offering	(900,000)
Distributions subsequent to initial public offering | Misclassification of distributions to non-controlling interest										(900,000)
Deferred tax adjustments related to Tax Receivable Agreement	0
Additional capitalized offering costs related to initial public offering	(119,000)						(119,000)		(119,000)
Ending balance at Sep. 30, 2018	(26,521,000)			0	$ 135,000	$ 227,000	11,290,000	(20,851,000)	(9,199,000)	(17,322,000)
Ending balance (in shares) at Sep. 30, 2018					13,533	22,747
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income Subsequent to Initial Public Offering	838,000							145,000	145,000	693,000
Net income								90,000	90,000	515,000
Equity-based compensation	345,000						345,000		345,000
Activity under employee stock purchase plan (in shares)					5
Activity under employee stock purchase plan	143,000						143,000		143,000
Redemption of LLC Units (in shares)					261	(261)
Redemption of LLC Units	0				$ 3,000	$ (3,000)	(194,000)	0	(194,000)	194,000
Issuance of Class A common stock sold in initial public offering, net of offering costs	(90,000)									(90,000)
Deferred tax adjustments related to Tax Receivable Agreement	315,000						315,000		315,000
Ending balance at Dec. 31, 2018	(25,203,000)			0	$ 138,000	$ 224,000	11,899,000	(20,761,000)	(8,500,000)	(16,703,000)
Ending balance (in shares) at Dec. 31, 2018					13,799	22,486
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income Subsequent to Initial Public Offering	605,000
Distributions	(245,000)									(245,000)
Dividends declared	(15,000,000)							(5,962,000)	(5,962,000)	(9,038,000)
Net income	7,318,000							2,472,000	2,472,000	4,846,000
Equity-based compensation	368,000						368,000		368,000
Redemption of LLC Units (in shares)					723	(723)
Redemption of LLC Units	0				$ 7,000	$ (7,000)	(679,000)	0	(679,000)	679,000
Deferred tax adjustments related to Tax Receivable Agreement	911,000						911,000		911,000
Ending balance at Mar. 31, 2019	(31,851,000)				$ 145,000	$ 217,000	12,499,000	(24,251,000)	(11,390,000)	(20,461,000)
Ending balance (in shares) at Mar. 31, 2019					14,522	21,763
Beginning balance at Dec. 31, 2018	(25,203,000)			$ 0	$ 138,000	$ 224,000	11,899,000	(20,761,000)	(8,500,000)	(16,703,000)
Beginning balance (in shares) at Dec. 31, 2018					13,799	22,486
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 12,898,000
Redemption of LLC Units (in shares)	1,371	1,400	1,400
Ending balance at Sep. 30, 2019	$ (27,850,000)				$ 152,000	$ 210,000	13,792,000	(22,350,000)	(8,196,000)	(19,654,000)
Ending balance (in shares) at Sep. 30, 2019					15,173	21,115
Beginning balance at Mar. 31, 2019	(31,851,000)				$ 145,000	$ 217,000	12,499,000	(24,251,000)	(11,390,000)	(20,461,000)
Beginning balance (in shares) at Mar. 31, 2019					14,522	21,763
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Distributions	(2,708,000)									(2,708,000)
Net income	2,817,000							903,000	903,000	1,914,000
Equity-based compensation	368,000						368,000		368,000
Activity under employee stock purchase plan (in shares)					3
Activity under employee stock purchase plan	142,000						142,000		142,000
Redemption of LLC Units (in shares)					488	(488)
Redemption of LLC Units	0				$ 5,000	$ (5,000)	(477,000)	0	(477,000)	477,000
Deferred tax adjustments related to Tax Receivable Agreement	684,000						684,000		684,000
Ending balance at Jun. 30, 2019	(30,548,000)				$ 150,000	$ 212,000	13,216,000	(23,348,000)	(9,770,000)	(20,778,000)
Ending balance (in shares) at Jun. 30, 2019					15,013	21,275
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Distributions	(786,000)									(786,000)
Net income	2,763,000							998,000	998,000	1,765,000
Equity-based compensation	$ 396,000						396,000		396,000
Redemption of LLC Units (in shares)	160	160			160	(160)
Redemption of LLC Units	$ 0				$ 2,000	$ (2,000)	(145,000)		(145,000)	145,000
Deferred tax adjustments related to Tax Receivable Agreement	325,000						325,000		325,000
Ending balance at Sep. 30, 2019	$ (27,850,000)				$ 152,000	$ 210,000	$ 13,792,000	$ (22,350,000)	$ (8,196,000)	$ (19,654,000)
Ending balance (in shares) at Sep. 30, 2019					15,173	21,115

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income (loss)	$ 12,898	$ (19,269)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,551	1,039
Loss on disposal of fixed assets	0	(22)
Bad debt expense	1,282	984
Equity-based compensation	1,132	26,616
Adjustments to tax receivable agreement liability	10,967	0
Deferred income taxes	(10,625)	(53)
Changes in operating assets and liabilities:
Commissions and agency fees receivable	(961)	(1,200)
Receivable from franchisees	(1,698)	(934)
Prepaid expenses	(720)	(426)
Other assets	(97)	435
Accounts payable and accrued expenses	244	259
Deferred rent	2,368	298
Premiums payable	352	115
Unearned revenue	(200)	(512)
Net cash provided by operating activities	16,493	7,374
Cash flows from investing activities:
Proceeds from notes receivable	16	16
Purchase of software	(340)	(121)
Purchase of property and equipment	(3,285)	(1,078)
Net cash used for investing activities	(3,609)	(1,183)
Cash flows from financing activities:
Payments of Loan Costs	0	364
Repayment of note payable	(1,750)	(50,125)
Proceeds from the issuance of Class A common stock	142	86,773
Member distributions and dividends	(18,739)	(79,969)
Net cash provided by (used for) financing activities	(20,347)	7,043
Net increase/(decrease) in cash and restricted cash	(7,463)	13,234
Cash and cash equivalents, and restricted cash, beginning of period	19,011	5,366
Cash and cash equivalents, and restricted cash, end of period	11,548	18,600
Supplemental disclosures of cash flow data:
Cash paid during the year for interest	1,861	2,528
Cash paid for income taxes	1,175	0
Management fee note repayment through issuance of Class A common stock	0	37,238
Proceeds from Notes Payable	$ 0	$ 50,000

Organization

Organization	9 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization On May 1, 2018 Goosehead Insurance, Inc. ("GSHD") completed an initial public offering (the “Offering”) of 9,810 thousand shares of Class A common stock at a price of $10.00 per share, which included 1,280 thousand shares issued pursuant to the underwriter's over-allotment option. Following completion of the Offering, GSHD owned 37.3% of Goosehead Financial, LLC (“GF”) and the Pre-IPO LLC Members owned the remaining 62.7%. GSHD is the sole managing member of GF and, although GSHD holds a minority economic interest in GF, GSHD has the sole voting power and control of management of GF. Accordingly, GSHD consolidates the financial results of GF and reports non-controlling interest in GSHD's consolidated financial statements. GF was organized on January 1, 2016 as a Delaware Limited Liability Company and is headquartered in Westlake, TX. The operations of GF represent the predecessor to GSHD prior to the Offering. Operations for any periods prior to May 1, 2018 are the condensed, consolidated and combined operations of GF and its subsidiaries and affiliates. GSHD (collectively with its consolidated subsidiaries, the “Company”) provides personal and commercial property and casualty insurance brokerage services for its clients through a network of corporate-owned agencies and franchise units across the nation. The Company had seven corporate-owned locations in operation at September 30, 2019 and 2018. Franchisees are provided access to insurance Carrier Appointments, product training, technology infrastructure, client service centers and back office services. During the three months ended September 30, 2019 and 2018, the Company sold 72 and 52 franchise locations, respectively and had 583 and 424 operating franchise locations as of September 30, 2019 and 2018, respectively. No franchises were purchased by the Company during the three and nine months ended September 30, 2019 or 2018. All intercompany accounts and transactions have been eliminated in consolidation.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the annual disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated financial positions at September 30, 2019, the condensed consolidated results of operations and stockholders' equity for the three and nine months ended September 30, 2019 and 2018, and the condensed consolidated statements of cash flows for the nine months ended September 30, 2019 and 2018. The interim period condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements that are included in the Annual Report on Form 10-K. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported period. Accordingly, actual results could differ from those estimates as more information becomes known. Income Taxes Prior to the Offering, GF was treated as a partnership for U.S. federal and applicable state and local income tax purposes. As a partnership, GF's taxable income or loss was included in the taxable income of its members. Accordingly, no income tax expense was recorded for federal and state and local jurisdictions for periods prior to the Offering. In connection with the Offering completed on May 1, 2018, the Company became a taxable entity. The Company accounts for income taxes pursuant to the asset and liability method which requires the recognition of deferred income tax assets and liabilities related to the expected future tax consequences arising from temporary differences between the carrying amounts and tax bases of assets and liabilities based on enacted statutory tax rates applicable to the periods in which the temporary differences are expected to reverse. Any effects of changes in income tax rates or laws are included in income tax expense in the period of enactment. Restricted Cash The Company holds premiums received from the insured, but not yet remitted to the insurance carrier in a fiduciary capacity. Premiums received but not yet remitted included in restricted cash were $728 thousand and $533 thousand as of September 30, 2019 and 2018, respectively. The following is a reconciliation of our cash and restricted cash balances as presented in the condensed consolidated statement of cash flows for the nine months ended September 30, 2019 and 2018 (in thousands): September 30, 2019 2018 Cash and cash equivalents $ 10,820 $ 18,067 Restricted cash 728 533 Cash and cash equivalents, and restricted cash $ 11,548 $ 18,600 Recently Issued Accounting Pronouncements Statement of Cash Flows (ASU 2016-18) : This standard requires that the Statement of Cash Flows explain the changes during the period of cash and cash equivalents inclusive of amounts categorized as Restricted Cash. As such, the Company’s condensed consolidated statement of cash flows shows the sources and uses of cash that explain the movement in the balance of cash and cash equivalents, inclusive of restricted cash, over the period presented. As an emerging growth company (“EGC”), the standard became effective for the Company January 1, 2019. As shown in the reconciliation above, restricted cash of $533 thousand, which was previously shown as an investing activity has been reclassified and is now included together with cash and cash equivalents to conform to the current period presentation in the condensed consolidated statement of cash flows for the nine months ended September 30, 2018 as a result of the adoption of ASU 2016-18. Statement of Cash Flows (ASU 2016-15) : This standard addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified and applies to all entities, including both business entities and not-for-profit entities that are required to present a statement of cash flows under Topic 230. The standard became effective for the Company on January 1, 2019. The Company has evaluated the impact of ASU 2016-15 and has determined the impact to be immaterial. The Company does not, at this time, engage in the activities being addressed by the standard. Revenue from Contracts with Customers (ASU 2014-09) : This standard supersedes the existing revenue recognition guidance and provides a new framework for recognizing revenue. The core principle of the standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The new standard also requires significantly more comprehensive disclosures than the existing standard. Guidance subsequent to ASU 2014-09 has been issued to clarify various provisions in the standard, including principal versus agent considerations, identifying performance obligations, licensing transactions, as well as various technical corrections and improvements. This standard may be adopted using either a retrospective or modified retrospective method. Under the new guidance, the Company expects commission revenues will be recognized at the effective date of the policy, which will accelerate some revenues. Currently, commissions from insurance carriers, net of estimated cancellations, are recognized as revenue when the data necessary to reasonably determine such amounts is made available to the Company. For contingent commissions, prior to the adoption of Topic 606, revenue that was not fixed and determinable because of a contingency was not recognized until the contingency was resolved. Under Topic 606, the Company must use its judgment to estimate the amount of consideration that will be received such that a significant reversal of revenue is not probable. Contingent commissions represent a form of variable consideration associated with the same performance obligation, which is the placement of coverage, for which we earn commissions. In connection with the new standard, contingent commissions will be estimated with an appropriate constraint applied and accrued relative to the terms of the corresponding contingent commission contracts. The resulting effect will be the timing of the recognition of contingent commissions will more closely follow the pattern of commissions with true-ups recognized when payments are received or as additional information that affects the estimate becomes available. Franchise revenues, including franchise fees, are also likely to change under the new guidance. Currently, initial franchise fees are recognized as revenue in the month the agency owner or initial agency representative attends training and our contractual obligations related to franchise fees are fully discharged. Under the new guidance, the Company will recognize revenue from initial franchise fees using the straight line method over the 10 year period of the franchise agreement. The Company also expects to recognize an asset for the costs to obtain and/or fulfill a contract and to amortize on a systematic basis that is consistent with the transfer of services to which the asset relates. According to the superseding standard ASU 2015-14 that deferred the effective dates of the preceding, and because the Company is filing as an Emerging Growth Company, the standard became effective for the Company January 1, 2019, but the Company is not required to present the impacts of the standard until it files its Annual Report on Form 10-K for the fiscal year ended December 31, 2019. The Company has elected to follow the modified retrospective method applied to contracts that are not completed as of the date of adoption. The estimated cumulative impact of adopting the standard effective on January 1, 2019 is an increase in the accumulated deficit of between $6.0 million and $10.0 million, with offsetting increases/decreases to other balance sheet accounts, such as, accounts receivable, other assets, and deferred income taxes. The comparative information and prior periods will not be restated and will continue to be reported under legacy accounting standards that were in effect for those periods. Leases (ASU 2016-02) : This standard establishes a new lease accounting model, which introduces the recognition of lease assets and liabilities for those leases classified as operating leases under previous GAAP. It should be applied using a modified retrospective approach, with the option to elect various practical expedients. Early adoption is permitted. The standard will become effective for the Company January 1, 2020, but the Company is not required to present the impacts of the standard until it files its Annual Report on Form 10-K for the fiscal year ended December 31, 2020. The Company is currently evaluating the impact this standard will have on the Company's consolidated financial statements. However, the Company expects the impact of this guidance on its consolidated financial statements could be significant, as its future minimum operating lease commitments totaled $22.8 million as of September 30, 2019. Credit Losses (ASU 2016-13) : Measurement of Credit Losses on Financial Instruments. Under the new guidance an entity is required to measure all credit losses on certain financial instruments, including trade receivables and various off-balance sheet credit exposures, using an expected credit loss model. This model incorporates past experience, current conditions and reasonable and supportable forecasts affecting collectability of these instruments. This standard will become effective for the company beginning January 1, 2022. The Company is currently evaluating the timing and impact that adopting this new standard will have on the Company's consolidated financial statements.

Franchise Fees Receivable

Franchise Fees Receivable	9 Months Ended
	Sep. 30, 2019
Receivables [Abstract]
Franchise Fees Receivable	Allowance for Uncollectible Agency Fees Activity in the allowance for uncollectible agency fees was as follows (in thousands) : Balance at December 31, 2018 $ 242 Charges to bad debts 796 Write offs (730) Balance at September 30, 2019 $ 308 Balance at December 31, 2017 $ 183 Charges to bad debts 655 Write offs (598) Balance at September 30, 2018 $ 240
Franchise Fees Receivable	Franchise Fees Receivable The balance of Franchise fees receivable included in Receivable from franchisees consisted of the following at September 30, 2019 and December 31, 2018 (in thousands) : September 30 December 31 2019 2018 Franchise fees receivable $ 4,876 $ 3,906 Less: Unamortized discount (1,739) (1,381) Less: Allowance for uncollectible franchise fees (565) (455) Total franchise fees receivable $ 2,572 $ 2,070 Activity in the allowance for uncollectible franchise fees was as follows (in thousands) : Balance at December 31, 2018 $ 455 Charges to bad debts 486 Write offs (376) Balance at September 30, 2019 $ 565 Balance at December 31, 2017 $ 336 Charges to bad debts 329 Write offs (183) Balance at September 30, 2018 $ 482

Allowance for Uncollectible Age

Allowance for Uncollectible Agency Fees	9 Months Ended
	Sep. 30, 2019
Receivables [Abstract]
Allowance for Uncollectible Agency Fees	Allowance for Uncollectible Agency Fees Activity in the allowance for uncollectible agency fees was as follows (in thousands) : Balance at December 31, 2018 $ 242 Charges to bad debts 796 Write offs (730) Balance at September 30, 2019 $ 308 Balance at December 31, 2017 $ 183 Charges to bad debts 655 Write offs (598) Balance at September 30, 2018 $ 240

Property and equipment

Property and equipment	9 Months Ended
	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
Property and equipment	Property and equipment Property and equipment consisted of the following at: September 30, December 31, 2019 2018 Furniture & fixtures $ 2,875 $ 2,233 Computer equipment 1,317 1,023 Network equipment 252 252 Phone system 876 824 Leasehold improvements 8,989 6,692 Total 14,309 11,024 Less accumulated depreciation (4,699) (3,449) Property and equipment, net $ 9,610 $ 7,575

Note Payable

Note Payable	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Note Payable	Note PayableOn August 3, 2018, the Company refinanced its $3.0 million revolving credit facility and $50.0 million term note payable to a $13.0 million revolving credit facility and $40.0 million term note payable in order to obtain a more favorable interest rate on the outstanding debt. The Company has the right, subject to approval by the administrative agent and each issuing bank, to increase the commitments under the credit facilities an additional $50.0 million. The $13.0 million revolving credit facility accrues interest on amounts drawn at an initial interest rate of LIBOR plus 2.50%, then at an interest rate determined by the Company's leverage ratio for the preceding period. As of September 30, 2019, the Company was in the greater than 1.50x leverage ratio tranche, accruing interest of LIBOR plus 2.00%. At September 30, 2019, the Company had $10.0 million drawn against the revolver. At September 30, 2019, the Company had a letter of credit of $417 thousand applied against the maximum borrowing availability, thus amounts available to draw totaled $2.6 million. The revolving credit facility is collateralized by substantially all the Company’s assets, which includes rights to future commissions. Interest paid on the revolving credit facility totaled $112 thousand and $351 thousand for the three and nine months ended September 30, 2019. The $40.0 million term note accrues interest at an initial interest rate of LIBOR plus 2.5%, then at an interest rate determined by the Company's leverage ratio for the preceding period. As of September 30, 2019, the Company was in the greater than 1.50x leverage ratio tranche, accruing interest of LIBOR plus 2.00%. The aggregate principal amount of the term note as of September 30, 2019 was $37.3 million, payable in quarterly installments of (x) $750,000 from the fiscal quarter ending December 31, 2019 through the fiscal quarter ending June 30, 2020, and (y) $1,250,000 from the fiscal quarter ending September 30, 2020 through the fiscal quarter ending June 30, 2021, with a balloon payment of the entire unpaid principal amount of the term note on August 3, 2021. The term note is collateralized by substantially all the Company’s assets, which includes rights to future commissions. The interest rate for each leverage ratio tier are as follows: Leverage Ratio Interest Rate < 1.50x LIBOR + 175.0 bps > 1.50x LIBOR + 200.0 bps > 2.50x LIBOR + 225.0 bps > 3.50x LIBOR + 250.0 bps Maturities of the term note payable for the next three calendar years as of September 30, 2019 are as follows (in thousands) : Amount 2019 $ 750 2020 4,000 2021 32,500 Total $ 37,250 The $10.0 million drawn against the revolver is coterminous with the term loan and is due in full on August 3, 2021. Loan origination fees of $392 thousand at September 30, 2019 are reflected as a reduction to the note balance and will be amortized through interest expense over three years (the term of the note payable). The Company’s note payable agreement contains certain restrictions and covenants. Under these restrictions, the Company is limited in the amount of debt incurred and distributions payable. In addition, the credit agreement contains certain change of control provisions that, if broken, would trigger a default. Finally, the Company must maintain certain financial ratios. As of September 30, 2019, the Company was in compliance with these covenants. Because of both instruments’ variable interest rate, the note payable balance at September 30, 2019 and December 31, 2018, approximates fair value using Level 2 inputs, described below. The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described as follows: • Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets. • Level 2—Significant other observable inputs other than Level 1 prices such as quoted prices in markets that are not active, quoted prices for similar assets or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset. • Level 3—Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company leases its facilities under non-cancelable operating leases, expiring in various years through 2029. In addition to monthly lease payments, the lease agreements require the Company to reimburse the lessors for its portion of operating costs each year. Rent expense was $541 thousand and $383 thousand for the three months ended September 30, 2019 and 2018. Rent expense was $1,434 thousand and $1,192 thousand for the nine months ended September 30, 2019 and 2018. The following is a schedule of future minimum lease payments as of September 30, 2019 (in thousands) : Amount 2019 $ 460 2020 2,575 2021 2,793 2022 2,762 2023 2,578 2024-2029 11,626 Total $ 22,794

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes As a result of the Reorganization Transactions and the Offering, GSHD became the sole managing member of GF, which is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, GF is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by GF is passed through to and included in the taxable income or loss of its members, including GSHD, on a pro rata basis. GSHD is subject to U.S. federal income taxes, in addition to state and local income taxes, with respect to GSHD's allocable share of income of GF. Income tax expense A reconciliation of income tax expense computed at the U.S. federal statutory income tax rate to the income tax expense recognized is as follows (in thousands) : Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Income before taxes $ 3,064 $ 14,373 Income taxes at U.S. federal statutory rate $ 644 $ 3,018 Tax on income not subject to entity level federal income tax (370) (1,793) Permanent Differences: Meals & Entertainment 17 42 Non-deductible stock compensation costs (11) — Non-deductible excess compensation (21) — State income tax, net of federal benefit 62 229 Other Reconciling items: Other (20) (21) Income tax expense $ 301 $ 1,475 Three Months Ended Nine Months Ended (Loss) Income before taxes 1,000 (18,951) Less: income prior to the Reorganization Transactions — (4,389) Income (loss) before taxes 1,000 (23,340) Income taxes at U.S. federal statutory rate 215 (4,902) Tax on income not subject to entity level federal income tax (147) (382) Permanent Differences: Non-deductible stock compensation costs — 2,038 Non-controlling interest 32 3,479 Other permanent differences 11 25 State income tax, net of federal benefit 51 58 Other Reconciling items: Other 2 2 Income tax expense 164 318 Deferred tax assets and liabilities The components of deferred tax assets and liabilities are as follows: September 30, 2019 December 31, 2018 Investment in flow-through entity 14,503 1,958 Net deferred tax asset (liability) $ 14,503 $ 1,958 Uncertain tax positions GSHD has determined there are no material uncertain tax positions as of September 30, 2019. Tax Receivable Agreement GF intends to make an election under Section 754 of the Internal Revenue Code of 1986, as amended, and the regulations thereunder (the “Code”) effective for each taxable year in which a redemption or exchange of LLC Units and corresponding Class B common stock for shares of Class A common stock occurs. Future taxable redemptions or exchanges are expected to result in tax basis adjustments to the assets of GF that will be allocated to the Company and thus produce favorable tax attributes. These tax attributes would not be available to GSHD in the absence of those transactions. The anticipated tax basis adjustments are expected to reduce the amount of tax that GSHD would otherwise be required to pay in the future. GSHD entered into a tax receivable agreement with the Pre-IPO LLC Members on May 1, 2018 that provides for the payment by GSHD to the Pre-IPO LLC Members of 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax or franchise tax that GSHD actually realizes as a result of (i) any increase in tax basis in GSHD's assets and (ii) tax benefits related to imputed interest deemed arising as a result of payments made under the tax receivable agreement. During the three and nine months ended September 30, 2019, an aggregate of 160 thousand and 1,371 thousand LLC Units were redeemed by the Pre-IPO LLC Members for newly issued shares of Class A common stock. In connection with these redemptions, GSHD received 160 thousand and 1,371 thousand LLC Units, which resulted in an increase in the tax basis of its investment in GF subject to the provisions of the tax receivable agreement. The Company recognized a liability for the TRA Payments due to the Pre-IPO LLC Members, representing 85% of the aggregate tax benefits the Company expects to realize from the tax basis increases related to the redemptions of LLC Units, after concluding it was probable that such TRA Payments would be paid based on its estimates of future taxable income. As of September 30, 2019, the total amount of TRA Payments due to the Pre-IPO LLC Members under the tax receivable agreement was $12.7 million, of which $11 thousand was current and included in Accounts payables and accrued expenses on the Consolidated Balance Sheet.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity Class A Common Stock GSHD has a total of 15,173 thousand shares of its Class A common stock outstanding at September 30, 2019. Each share of Class A common stock holds economic rights and entitles its holder to one vote per share on all matters submitted to a vote of the stockholders of GSHD. Class B Common Stock GSHD has a total of 21,115 thousand shares of its Class B common stock outstanding at September 30, 2019. Each share of Class B common stock has no economic rights but entitles its holder to one vote per share on all matters submitted to a vote of the stockholders of GSHD. Holders of Class A common stock and Class B common stock vote together as a single class on all matters presented to GSHD's shareholders for their vote or approval, except as otherwise required by applicable law, by agreement, or by GSHD's certificate of incorporation. Non-Controlling Interests Following the Offering, GSHD became the sole managing member of GF and, as a result, it consolidates the financial results of GF. GSHD reports a non-controlling interest representing the economic interest in GF held by the other members of GF. On a quarterly basis, GF makes distributions to the LLC Unit holders on a pro rata basis to facilitate the LLC Unit holder's quarterly tax payments. For the three and nine months ended September 30, 2019, GF made distributions of $1.4 million and $6.3 million, of which $0.8 million and $3.7 million where made to Pre-IPO LLC Members. The remaining $0.6 million and $2.6 million were made to GSHD and were eliminated in consolidation. For the three and nine months ended September 30, 2018, GF made distributions of $1.4 million and $3.8 million, respectively, of which $0.9 million and $2.9 million were made to Pre-IPO LLC Members, respectively. The remaining $0.5 million and $0.9 million, respectively, were made to GSHD and were eliminated in consolidation. Under the amended and restated Goosehead Financial, LLC Agreement, the Pre-IPO LLC Members have the right, from and after the completion of the Offering (subject to the terms of the amended and restated Goosehead Financial, LLC Agreement), to require GSHD to redeem all or a portion of their LLC Units for, at GSHD's election, newly-issued shares of Class A common stock on a one-for-one basis or a cash payment equal to the volume weighted average market price of one share of GSHD's Class A common stock for each LLC Unit redeemed (subject to customary adjustments, including for stock splits, stock dividends and reclassifications) in accordance with the terms of the amended and restated Goosehead Financial, LLC Agreement. Additionally, in the event of a redemption request by a Pre-IPO LLC Member, GSHD may, at its option, effect a direct exchange of cash or Class A common stock for LLC Units in lieu of such a redemption. Shares of Class B common stock will be cancelled on a one-for-one basis if GSHD, at the election of a Pre-IPO LLC Member, redeems or exchanges LLC Units of such Pre-IPO LLC Member pursuant to the terms of the amended and restated Goosehead Financial, LLC Agreement. Except for transfers to GSHD pursuant to the amended and restated Goosehead Financial, LLC Agreement or to certain permitted transferees, the Pre-IPO LLC Members are not permitted to sell, transfer or otherwise dispose of any LLC Units or shares of Class B common stock. During the three and nine months ended September 30, 2019, an aggregate of 160 thousand and 1.4 million LLC Units were redeemed by the non-controlling interest holders. Pursuant to the GF LLC Agreement, GSHD issued 160 thousand and 1.4 million shares of Class A common stock in connection with these redemptions and received 160 thousand and 1.4 million LLC Interests, increasing GSHD's ownership interest in GF. Simultaneously, and in connection with these redemptions, 160 thousand and 1.4 million shares of Class B common stock were surrendered and cancelled. The following table summarizes the ownership interest in GF as of September 30, 2019 (in thousands). September 30, 2019 LLC Units Ownership % Number of LLC Units held by GSHD 15,173 41.8% Number of LLC Units held by non-controlling interest holders 21,115 58.2% Number of LLC Units outstanding 36,288 100.0% The weighted average ownership percentages for the applicable reporting periods are used to attribute net income to GSHD and the non-controlling interest holders. The non-controlling interest holders' weighted average ownership percentage for the three and nine months ended September 30, 2019 was 58.3% and 59.4%. All net income prior to the Offering is attributed to non-controlling interest holders. Correction of Prior Period Balances: Subsequent to the issuance of the Company’s Annual report on Form 10-K for the year ended December 31, 2018 and Quarterly Report on Form 10-Q for the three- and six-month periods ended June 30, 2019, the Company determined that there was an error in the initial allocation of the effects of the Reorganization Transactions and of the non-controlling interest as presented in the condensed consolidated statement of stockholders’ equity for the six months ended June 30, 2018. This resulted in misstatements of activity in and balances of additional paid in capital, accumulated deficit, total stockholders' equity and non-controlling interest within the consolidated statements of stockholders' equity and consolidated balance sheets as of and for the periods ended June 30, 2018, September 30, 2018, December 31, 2018, March 31, 2019 and June 30, 2019. The Company evaluated the materiality of these misstatements from quantitative and qualitative perspectives and concluded the misstatements are not material to the prior periods. The previously reported amounts for the three-month periods ended June 30, 2018, September 30, 2018, March 31, 2019, and June 30, 2019 within the Company’s condensed consolidated statement of stockholders’ equity and the corresponding activity and balances in the condensed consolidated statement of stockholders’ equity and condensed consolidated balance sheet as of and for the three months ended December 31, 2018 have been revised to reflect the corrected balances as presented below (in thousands): Statement of stockholders' equity activity Additional paid in capital Accumulated deficit Total stockholders' equity Non-controlling interest As previously reported Adjustment As corrected As previously reported Adjustment As corrected As previously reported Adjustment As corrected As previously reported Adjustment As corrected Effects of the Reorganization Transactions $ (132,202) $ 38,022 $ (94,180) $ (7,379) $ (14,183) $ (21,562) $ (139,354) $ 23,839 $ (115,515) $ (12,402) $ (23,839) $ (36,241) Initial non-controlling interest allocation $ 97,071 $ (115,991) $ (18,920) $ — $ — $ — $ 97,071 $ (115,991) $ (18,920) $ (97,071) $ 115,991 $ 18,920 Balance June 30, 2018 $ 89,034 $ (77,969) $ 11,065 $ (6,813) $ (14,183) $ (20,996) $ 82,583 $ (92,152) $ (9,569) $ (109,267) $ 92,152 $ (17,115) Balance September 30, 2018 $ 89,259 $ (77,969) $ 11,290 $ (6,668) $ (14,183) $ (20,851) $ 82,953 $ (92,152) $ (9,199) $ (109,474) $ 92,152 $ (17,322) Redemption of LLC Units $ (1,251) $ 1,057 $ (194) $ — $ — $ — $ (1,251) $ 1,057 $ (194) $ 1,251 $ (1,057) $ 194 Balance December 31, 2018 $ 88,811 $ (76,912) $ 11,899 $ (6,578) $ (14,183) $ (20,761) $ 82,595 $ (91,095) $ (8,500) $ (107,798) $ 91,095 $ (16,703) Redemption of LLC Units $ (3,607) $ 2,928 $ (679) $ — $ — $ — $ (3,607) $ 2,928 $ (679) $ 3,607 $ (2,928) $ 679 Balance March 31, 2019 $ 86,483 $ (73,984) $ 12,499 $ (10,068) $ (14,183) $ (24,251) $ 76,777 $ (88,167) $ (11,390) $ (108,628) $ 88,167 $ (20,461) Redemption of LLC Units $ (2,456) $ 1,979 $ (477) $ — $ — $ — $ (2,456) $ 1,979 $ (477) $ 2,456 $ (1,979) $ 477 Balance June 30, 2019 $ 85,221 $ (72,005) $ 13,216 $ (9,165) $ (14,183) $ (23,348) $ 76,418 $ (86,188) $ (9,770) $ (106,966) $ 86,188 $ (20,778) Earnings Per Share The following table sets forth the calculation of basic earnings per share ("EPS") based on net income attributable to GSHD for the three and nine months ended September 30, 2019, divided by the basic weighted average number of Class A common stock as of September 30, 2019 (in thousands, except per share amounts) . Diluted earnings per share of Class A common stock is computed by dividing net income attributable to GSHD by the weighted average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities (in thousands, except per share amounts) . The Company has not included the effects of conversion of Class B shares to Class A shares in the diluted EPS calculation using the "if-converted" method, because doing so has no impact on diluted EPS. Three Months Ended September 30, 2019 Nine Months Ended Numerator: Income before taxes $ 3,064 $ 14,373 Less: income before taxes attributable to non-controlling interests 1,801 8,662 Income before taxes attributable to GSHD 1,263 5,711 Less: income tax expense attributable to GSHD 392 1,338 Net income attributable to GSHD $ 998 $ 4,373 Denominator: Weighted average shares of Class A common stock outstanding - basic 15,140 14,746 Effect of dilutive securities: Stock options 1,311 1,140 Weighted average shares of Class A common stock outstanding - diluted 16,451 15,936 Earnings per share of Class A common stock - basic $ 0.07 $ 0.30 Earnings per share of Class A common stock - diluted $ 0.06 $ 0.27 The following table sets forth the calculation of basic EPS based on net income attributable to GSHD for the three and nine months ended September 30, 2018, divided by the basic weighted average number of Class A common stock as of September 30, 2018 (in thousands, except per share amounts) . Diluted EPS of Class A common stock is computed by dividing net income attributable to GSHD by the weighted average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities (in thousands, except per share amounts) . The Company has not included the effects of conversion of Class B shares to Class A shares in the diluted EPS calculation using the "if-converted" method, because doing so has no impact on diluted EPS. Three Months Ended Nine Months Ended Numerator: Income (loss) before taxes $ 1,000 $ (18,951) Less: income (loss) before taxes attributable to non-controlling interests 627 (10,246) Income (loss) before taxes attributable to GSHD 373 (8,705) Less: income tax expense attributable to GSHD 132 286 Net loss attributable to Goosehead Insurance, Inc. (1) $ 241 $ (8,991) Denominator: Weighted average shares of Class A common stock outstanding - basic 13,533 13,533 Effect of dilutive securities: Stock options (2) 1,081 — Weighted average shares of Class A common stock outstanding - diluted 14,614 13,533 Earnings per share of Class A common stock - basic $ 0.02 $ (0.66) Earnings per share of Class A common stock - diluted $ 0.02 $ (0.66) (1) Net income attributable to Goosehead Insurance, Inc. excludes all net income prior to the Offering. (2) 1,650 thousand stock options were excluded from the computation of diluted earnings per share of Class A common stock because the effect would have been anti-dilutive, as we recorded a net loss for the three and nine months ended September 30, 2018.

Equity-Based Compensation

Equity-Based Compensation	9 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement [Abstract]
Equity-Based Compensation	Equity-Based Compensation A summary of equity-based compensation expense during the three and nine months ended September 30, 2019 and September 30, 2018 is as follows (in thousands) : Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Class B unit compensation $ — $ — $ — $ 26,134 Stock options 396 345 1,131 604 Equity-based compensation expense $ 396 $ 345 $ 1,131 $ 26,738

Dividends

Dividends	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Dividends	Dividends On March 7, 2019, GF approved a $15.0 million extraordinary dividend to all holders of LLC Units, including GSHD. The board of directors of the Company then declared an extraordinary dividend of $0.41 (rounded) to all holders of Class A common stock of GSHD with a record date of March 18, 2019, paid on or before April 1, 2019. A summary of the total amounts declared by GF is as follows (in thousands) : LLC Units held as of March 18, 2019 Dividends declared Class A common stockholders 14,421 $ 5,962 Class B common stockholders via LLC Units held 21,864 9,038 Total 36,285 $ 15,000 Any future extraordinary dividends will be declared at the sole discretion of GF's managing members with respect to GF and the Company's board of directors with respect to GSHD. In determining whether a future extraordinary dividend will be declared by the Company, the board of directors may, at its sole discretion, consider the following: the Company's financial condition and operating results, the Company's available cash and current and anticipated cash needs, the Company's capital requirements, any contractual, legal, tax and regulatory restrictions, general economic and business conditions, and such other factors or conditions as the board of directors deems relevant.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Segment Information	Segment InformationThe Company has two reportable segments: Corporate Channel and Franchise Channel. The Corporate Channel consists of company-owned and financed operations with employees who are hired, trained, and managed by Goosehead. The Franchise Channel network consists of franchisee operations that are owned and managed by individual business owners. These business owners have a contractual relationship with Goosehead to use the Company's processes, systems, and back-office support team to sell insurance and manage their business. In exchange, Goosehead is entitled to an initial franchise fee and ongoing royalty fees. Allocations of contingent commissions and certain operating expenses are based on reasonable assumptions and estimates primarily using revenue, headcount and other information. The Company’s chief operating decision maker uses net income before interest, income taxes, depreciation and amortization, adjusted to exclude equity-based compensation and other non-operating items, including, among other things, certain non-cash charges and certain non-recurring or non-operating gains or losses (“Adjusted EBITDA”) as a performance measure to manage resources and make decisions about the business. Summarized financial information concerning the Company’s reportable segments is shown in the following tables (in thousands). There are no intersegment sales, only interest income and interest expense related to an intersegment line of credit, all of which eliminate in consolidation. The “Other” column includes any income and expenses not allocated to reportable segments and corporate-related items, including equity-based compensation, certain legal expenses and interest related to the note payable. Franchise Corporate Other Total Three months ended September 30, 2019: Revenues: Commissions and fees $ 413 $ 11,326 $ — $ 11,739 Franchise revenues 9,261 — — 9,261 Interest income 169 — — 169 Total 9,843 11,326 — 21,169 Operating expenses: Employee compensation and benefits, excluding equity-based compensation 4,531 6,485 — 11,016 General and administrative expenses 2,325 2,281 563 5,169 Bad debts 119 280 — 399 Total 6,975 9,046 563 16,584 Adjusted EBITDA 2,868 2,280 (563) 4,585 Equity-based compensation — — (396) (396) Interest expense — — (609) (609) Depreciation and amortization (266) (250) — (516) Taxes — — (301) (301) Net income (loss) $ 2,602 $ 2,030 $ (1,869) $ 2,763 At September 30, 2019: Total Assets $ 14,103 $ 7,150 $ 23,168 $ 44,421 Franchise Corporate Other Total Three months ended September 30, 2018: Revenues: Commissions and fees $ 388 $ 9,372 $ — $ 9,760 Franchise revenues 6,180 — — 6,180 Interest income 114 — — 114 Total 6,682 9,372 — 16,054 Operating expenses: Employee compensation and benefits, excluding equity-based compensation 3,393 5,218 — 8,611 General and administrative expenses 1,283 1,938 473 3,694 Bad debts 167 232 — 399 Total 4,843 7,388 473 12,704 Adjusted EBITDA 1,839 1,984 (473) 3,350 Other income (expense) — (22) — (22) Equity-based compensation — — (345) (345) Interest expense — — (1,631) (1,631) Depreciation and amortization (128) (224) — (352) Taxes — — (164) (164) Net income (loss) $ 1,711 $ 1,738 $ (2,613) $ 836 At September 30, 2018: Total Assets $ 9,073 $ 14,222 $ 7,904 $ 31,199 Franchise Corporate Other Total Nine Months Ended September 30, 2019: Revenues: Commissions and fees $ 4,719 $ 33,953 $ — $ 38,672 Franchise revenues 24,564 — — 24,564 Interest income 452 — — 452 Total 29,735 33,953 — 63,688 Operating expenses: Employee compensation and benefits, excluding equity-based compensation 12,326 17,524 — 29,850 General and administrative expenses 5,487 6,261 2,052 13,800 Bad debts 486 796 — 1,282 Total 18,299 24,581 2,052 44,932 Adjusted EBITDA 11,436 9,372 (2,052) 18,756 Equity-based compensation — — (1,131) (1,131) Interest expense — — (1,861) (1,861) Depreciation and amortization (668) (723) — (1,391) Taxes — — (1,475) (1,475) Net income (loss) $ 10,768 $ 8,649 $ (6,519) $ 12,898 At September 30, 2019: Total Assets $ 14,103 $ 7,150 $ 23,168 $ 44,421 Franchise Corporate Other Total Nine Months Ended September 30, 2018: Revenues: Commissions and fees $ 2,319 $ 25,753 $ — $ 28,072 Franchise revenues 17,060 — — 17,060 Interest income 299 — — 299 Total 19,678 25,753 — 45,431 Operating expenses: Employee compensation and benefits, excluding equity-based compensation 9,036 13,872 — 22,908 General and administrative expenses 3,123 5,265 705 9,093 Bad debts 329 655 — 984 Total 12,488 19,792 705 32,985 Adjusted EBITDA 7,190 5,961 (705) 12,446 Other income (expense) — (22) — (22) Equity-based compensation — — (26,738) (26,738) Interest expense — — (3,598) (3,598) Depreciation and amortization (340) (699) — (1,039) Taxes — — (318) (318) Net income (loss) $ 6,850 $ 5,240 $ (31,359) $ (19,269) At September 30, 2018: Total Assets $ 9,073 $ 14,222 $ 7,904 $ 31,199

Litigation

Litigation	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Litigation	LitigationFrom time to time, GSHD may be involved in various legal proceedings, lawsuits and claims incidental to the conduct of the Company's business. The amount of any loss from the ultimate outcomes is not probable or reasonably estimable. It is the opinion of management that the resolution of outstanding claims will not have a material adverse effect on the financial position or results of operations of the Company.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Basis of Combination	All intercompany accounts and transactions have been eliminated in consolidation.
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the annual disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated financial positions at September 30, 2019, the condensed consolidated results of operations and stockholders' equity for the three and nine months ended September 30, 2019 and 2018, and the condensed consolidated statements of cash flows for the nine months ended September 30, 2019 and 2018. The interim period condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements that are included in the Annual Report on Form 10-K.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported period. Accordingly, actual results could differ from those estimates as more information becomes known.
Income Taxes	Income Taxes Prior to the Offering, GF was treated as a partnership for U.S. federal and applicable state and local income tax purposes. As a partnership, GF's taxable income or loss was included in the taxable income of its members. Accordingly, no income tax expense was recorded for federal and state and local jurisdictions for periods prior to the Offering. In connection with the Offering completed on May 1, 2018, the Company became a taxable entity. The Company accounts for income taxes pursuant to the asset and liability method which requires the recognition of deferred income tax assets and liabilities related to the expected future tax consequences arising from temporary differences between the carrying amounts and tax bases of assets and liabilities based on enacted statutory tax
Restricted Cash	Restricted CashThe Company holds premiums received from the insured, but not yet remitted to the insurance carrier in a fiduciary capacity.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements Statement of Cash Flows (ASU 2016-18) : This standard requires that the Statement of Cash Flows explain the changes during the period of cash and cash equivalents inclusive of amounts categorized as Restricted Cash. As such, the Company’s condensed consolidated statement of cash flows shows the sources and uses of cash that explain the movement in the balance of cash and cash equivalents, inclusive of restricted cash, over the period presented. As an emerging growth company (“EGC”), the standard became effective for the Company January 1, 2019. As shown in the reconciliation above, restricted cash of $533 thousand, which was previously shown as an investing activity has been reclassified and is now included together with cash and cash equivalents to conform to the current period presentation in the condensed consolidated statement of cash flows for the nine months ended September 30, 2018 as a result of the adoption of ASU 2016-18. Statement of Cash Flows (ASU 2016-15) : This standard addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified and applies to all entities, including both business entities and not-for-profit entities that are required to present a statement of cash flows under Topic 230. The standard became effective for the Company on January 1, 2019. The Company has evaluated the impact of ASU 2016-15 and has determined the impact to be immaterial. The Company does not, at this time, engage in the activities being addressed by the standard. Revenue from Contracts with Customers (ASU 2014-09) : This standard supersedes the existing revenue recognition guidance and provides a new framework for recognizing revenue. The core principle of the standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The new standard also requires significantly more comprehensive disclosures than the existing standard. Guidance subsequent to ASU 2014-09 has been issued to clarify various provisions in the standard, including principal versus agent considerations, identifying performance obligations, licensing transactions, as well as various technical corrections and improvements. This standard may be adopted using either a retrospective or modified retrospective method. Under the new guidance, the Company expects commission revenues will be recognized at the effective date of the policy, which will accelerate some revenues. Currently, commissions from insurance carriers, net of estimated cancellations, are recognized as revenue when the data necessary to reasonably determine such amounts is made available to the Company. For contingent commissions, prior to the adoption of Topic 606, revenue that was not fixed and determinable because of a contingency was not recognized until the contingency was resolved. Under Topic 606, the Company must use its judgment to estimate the amount of consideration that will be received such that a significant reversal of revenue is not probable. Contingent commissions represent a form of variable consideration associated with the same performance obligation, which is the placement of coverage, for which we earn commissions. In connection with the new standard, contingent commissions will be estimated with an appropriate constraint applied and accrued relative to the terms of the corresponding contingent commission contracts. The resulting effect will be the timing of the recognition of contingent commissions will more closely follow the pattern of commissions with true-ups recognized when payments are received or as additional information that affects the estimate becomes available. Franchise revenues, including franchise fees, are also likely to change under the new guidance. Currently, initial franchise fees are recognized as revenue in the month the agency owner or initial agency representative attends training and our contractual obligations related to franchise fees are fully discharged. Under the new guidance, the Company will recognize revenue from initial franchise fees using the straight line method over the 10 year period of the franchise agreement. The Company also expects to recognize an asset for the costs to obtain and/or fulfill a contract and to amortize on a systematic basis that is consistent with the transfer of services to which the asset relates. According to the superseding standard ASU 2015-14 that deferred the effective dates of the preceding, and because the Company is filing as an Emerging Growth Company, the standard became effective for the Company January 1, 2019, but the Company is not required to present the impacts of the standard until it files its Annual Report on Form 10-K for the fiscal year ended December 31, 2019. The Company has elected to follow the modified retrospective method applied to contracts that are not completed as of the date of adoption. The estimated cumulative impact of adopting the standard effective on January 1, 2019 is an increase in the accumulated deficit of between $6.0 million and $10.0 million, with offsetting increases/decreases to other balance sheet accounts, such as, accounts receivable, other assets, and deferred income taxes. The comparative information and prior periods will not be restated and will continue to be reported under legacy accounting standards that were in effect for those periods. Leases (ASU 2016-02) : This standard establishes a new lease accounting model, which introduces the recognition of lease assets and liabilities for those leases classified as operating leases under previous GAAP. It should be applied using a modified retrospective approach, with the option to elect various practical expedients. Early adoption is permitted. The standard will become effective for the Company January 1, 2020, but the Company is not required to present the impacts of the standard until it files its Annual Report on Form 10-K for the fiscal year ended December 31, 2020. The Company is currently evaluating the impact this standard will have on the Company's consolidated financial statements. However, the Company expects the impact of this guidance on its consolidated financial statements could be significant, as its future minimum operating lease commitments totaled $22.8 million as of September 30, 2019. Credit Losses (ASU 2016-13) : Measurement of Credit Losses on Financial Instruments. Under the new guidance an entity is required to measure all credit losses on certain financial instruments, including trade receivables and various off-balance sheet credit exposures, using an expected credit loss model. This model incorporates past experience, current conditions and reasonable and supportable forecasts affecting collectability of these instruments. This standard will become effective for the company beginning January 1, 2022. The Company is currently evaluating the timing and impact that adopting this new standard will have on the Company's consolidated financial statements.
Framework for Measuring Fair Value	The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described as follows: • Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets. • Level 2—Significant other observable inputs other than Level 1 prices such as quoted prices in markets that are not active, quoted prices for similar assets or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset. • Level 3—Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Restrictions on Cash and Cash Equivalents	The following is a reconciliation of our cash and restricted cash balances as presented in the condensed consolidated statement of cash flows for the nine months ended September 30, 2019 and 2018 (in thousands): September 30, 2019 2018 Cash and cash equivalents $ 10,820 $ 18,067 Restricted cash 728 533 Cash and cash equivalents, and restricted cash $ 11,548 $ 18,600
Schedule of Reconciliation of Cash and Restricted Cash	The following is a reconciliation of our cash and restricted cash balances as presented in the condensed consolidated statement of cash flows for the nine months ended September 30, 2019 and 2018 (in thousands): September 30, 2019 2018 Cash and cash equivalents $ 10,820 $ 18,067 Restricted cash 728 533 Cash and cash equivalents, and restricted cash $ 11,548 $ 18,600

Franchise Fees Receivable (Tabl

Franchise Fees Receivable (Tables)	9 Months Ended
	Sep. 30, 2019
Receivables [Abstract]
Schedule of Franchise Fees Receivable	Activity in the allowance for uncollectible agency fees was as follows (in thousands) : Balance at December 31, 2018 $ 242 Charges to bad debts 796 Write offs (730) Balance at September 30, 2019 $ 308 Balance at December 31, 2017 $ 183 Charges to bad debts 655 Write offs (598) Balance at September 30, 2018 $ 240
Schedule of Allowance For Uncollectible Franchise Fees	Activity in the allowance for uncollectible franchise fees was as follows (in thousands) : Balance at December 31, 2018 $ 455 Charges to bad debts 486 Write offs (376) Balance at September 30, 2019 $ 565 Balance at December 31, 2017 $ 336 Charges to bad debts 329 Write offs (183) Balance at September 30, 2018 $ 482
Schedule of Franchise Fees Receivable	The balance of Franchise fees receivable included in Receivable from franchisees consisted of the following at September 30, 2019 and December 31, 2018 (in thousands) : September 30 December 31 2019 2018 Franchise fees receivable $ 4,876 $ 3,906 Less: Unamortized discount (1,739) (1,381) Less: Allowance for uncollectible franchise fees (565) (455) Total franchise fees receivable $ 2,572 $ 2,070

Allowance for Uncollectible A_2

Allowance for Uncollectible Agency Fees (Tables)	9 Months Ended
	Sep. 30, 2019
Receivables [Abstract]
Schedule of Allowance for Uncollectible Agency Fees	Activity in the allowance for uncollectible agency fees was as follows (in thousands) : Balance at December 31, 2018 $ 242 Charges to bad debts 796 Write offs (730) Balance at September 30, 2019 $ 308 Balance at December 31, 2017 $ 183 Charges to bad debts 655 Write offs (598) Balance at September 30, 2018 $ 240

Property and equipment (Tables)

Property and equipment (Tables)	9 Months Ended
	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consisted of the following at: September 30, December 31, 2019 2018 Furniture & fixtures $ 2,875 $ 2,233 Computer equipment 1,317 1,023 Network equipment 252 252 Phone system 876 824 Leasehold improvements 8,989 6,692 Total 14,309 11,024 Less accumulated depreciation (4,699) (3,449) Property and equipment, net $ 9,610 $ 7,575

Note Payable (Tables)

Note Payable (Tables)	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Schedule of Interest Rate Dependent of Leverage Ratio	The interest rate for each leverage ratio tier are as follows: Leverage Ratio Interest Rate < 1.50x LIBOR + 175.0 bps > 1.50x LIBOR + 200.0 bps > 2.50x LIBOR + 225.0 bps > 3.50x LIBOR + 250.0 bps
Schedule of Maturities of Note Payable	Maturities of the term note payable for the next three calendar years as of September 30, 2019 are as follows (in thousands) : Amount 2019 $ 750 2020 4,000 2021 32,500 Total $ 37,250

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Lease Payments	The following is a schedule of future minimum lease payments as of September 30, 2019 (in thousands) : Amount 2019 $ 460 2020 2,575 2021 2,793 2022 2,762 2023 2,578 2024-2029 11,626 Total $ 22,794

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Schedule of Reconciliation of Income Tax Expense	A reconciliation of income tax expense computed at the U.S. federal statutory income tax rate to the income tax expense recognized is as follows (in thousands) : Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Income before taxes $ 3,064 $ 14,373 Income taxes at U.S. federal statutory rate $ 644 $ 3,018 Tax on income not subject to entity level federal income tax (370) (1,793) Permanent Differences: Meals & Entertainment 17 42 Non-deductible stock compensation costs (11) — Non-deductible excess compensation (21) — State income tax, net of federal benefit 62 229 Other Reconciling items: Other (20) (21) Income tax expense $ 301 $ 1,475
Schedule of Income before Income Taxes	A reconciliation of income tax expense computed at the U.S. federal statutory income tax rate to the income tax expense recognized is as follows (in thousands) : Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Income before taxes $ 3,064 $ 14,373 Income taxes at U.S. federal statutory rate $ 644 $ 3,018 Tax on income not subject to entity level federal income tax (370) (1,793) Permanent Differences: Meals & Entertainment 17 42 Non-deductible stock compensation costs (11) — Non-deductible excess compensation (21) — State income tax, net of federal benefit 62 229 Other Reconciling items: Other (20) (21) Income tax expense $ 301 $ 1,475
Schedule of Components of Income Tax Expense	A reconciliation of income tax expense computed at the U.S. federal statutory income tax rate to the income tax expense recognized is as follows (in thousands) : Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Income before taxes $ 3,064 $ 14,373 Income taxes at U.S. federal statutory rate $ 644 $ 3,018 Tax on income not subject to entity level federal income tax (370) (1,793) Permanent Differences: Meals & Entertainment 17 42 Non-deductible stock compensation costs (11) — Non-deductible excess compensation (21) — State income tax, net of federal benefit 62 229 Other Reconciling items: Other (20) (21) Income tax expense $ 301 $ 1,475
Schedule of Deferred Tax Assets and Liabilities	The components of deferred tax assets and liabilities are as follows: September 30, 2019 December 31, 2018 Investment in flow-through entity 14,503 1,958 Net deferred tax asset (liability) $ 14,503 $ 1,958

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Summary of Pro Forma Ownership Interest	The following table summarizes the ownership interest in GF as of September 30, 2019 (in thousands). September 30, 2019 LLC Units Ownership % Number of LLC Units held by GSHD 15,173 41.8% Number of LLC Units held by non-controlling interest holders 21,115 58.2% Number of LLC Units outstanding 36,288 100.0%
Schedule of Error Corrections and Prior Period Adjustments	The previously reported amounts for the three-month periods ended June 30, 2018, September 30, 2018, March 31, 2019, and June 30, 2019 within the Company’s condensed consolidated statement of stockholders’ equity and the corresponding activity and balances in the condensed consolidated statement of stockholders’ equity and condensed consolidated balance sheet as of and for the three months ended December 31, 2018 have been revised to reflect the corrected balances as presented below (in thousands): Statement of stockholders' equity activity Additional paid in capital Accumulated deficit Total stockholders' equity Non-controlling interest As previously reported Adjustment As corrected As previously reported Adjustment As corrected As previously reported Adjustment As corrected As previously reported Adjustment As corrected Effects of the Reorganization Transactions $ (132,202) $ 38,022 $ (94,180) $ (7,379) $ (14,183) $ (21,562) $ (139,354) $ 23,839 $ (115,515) $ (12,402) $ (23,839) $ (36,241) Initial non-controlling interest allocation $ 97,071 $ (115,991) $ (18,920) $ — $ — $ — $ 97,071 $ (115,991) $ (18,920) $ (97,071) $ 115,991 $ 18,920 Balance June 30, 2018 $ 89,034 $ (77,969) $ 11,065 $ (6,813) $ (14,183) $ (20,996) $ 82,583 $ (92,152) $ (9,569) $ (109,267) $ 92,152 $ (17,115) Balance September 30, 2018 $ 89,259 $ (77,969) $ 11,290 $ (6,668) $ (14,183) $ (20,851) $ 82,953 $ (92,152) $ (9,199) $ (109,474) $ 92,152 $ (17,322) Redemption of LLC Units $ (1,251) $ 1,057 $ (194) $ — $ — $ — $ (1,251) $ 1,057 $ (194) $ 1,251 $ (1,057) $ 194 Balance December 31, 2018 $ 88,811 $ (76,912) $ 11,899 $ (6,578) $ (14,183) $ (20,761) $ 82,595 $ (91,095) $ (8,500) $ (107,798) $ 91,095 $ (16,703) Redemption of LLC Units $ (3,607) $ 2,928 $ (679) $ — $ — $ — $ (3,607) $ 2,928 $ (679) $ 3,607 $ (2,928) $ 679 Balance March 31, 2019 $ 86,483 $ (73,984) $ 12,499 $ (10,068) $ (14,183) $ (24,251) $ 76,777 $ (88,167) $ (11,390) $ (108,628) $ 88,167 $ (20,461) Redemption of LLC Units $ (2,456) $ 1,979 $ (477) $ — $ — $ — $ (2,456) $ 1,979 $ (477) $ 2,456 $ (1,979) $ 477 Balance June 30, 2019 $ 85,221 $ (72,005) $ 13,216 $ (9,165) $ (14,183) $ (23,348) $ 76,418 $ (86,188) $ (9,770) $ (106,966) $ 86,188 $ (20,778)
Schedule of Calculation of EPS and Pro Forma EPS	The following table sets forth the calculation of basic earnings per share ("EPS") based on net income attributable to GSHD for the three and nine months ended September 30, 2019, divided by the basic weighted average number of Class A common stock as of September 30, 2019 (in thousands, except per share amounts) . Diluted earnings per share of Class A common stock is computed by dividing net income attributable to GSHD by the weighted average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities (in thousands, except per share amounts) . The Company has not included the effects of conversion of Class B shares to Class A shares in the diluted EPS calculation using the "if-converted" method, because doing so has no impact on diluted EPS. Three Months Ended September 30, 2019 Nine Months Ended Numerator: Income before taxes $ 3,064 $ 14,373 Less: income before taxes attributable to non-controlling interests 1,801 8,662 Income before taxes attributable to GSHD 1,263 5,711 Less: income tax expense attributable to GSHD 392 1,338 Net income attributable to GSHD $ 998 $ 4,373 Denominator: Weighted average shares of Class A common stock outstanding - basic 15,140 14,746 Effect of dilutive securities: Stock options 1,311 1,140 Weighted average shares of Class A common stock outstanding - diluted 16,451 15,936 Earnings per share of Class A common stock - basic $ 0.07 $ 0.30 Earnings per share of Class A common stock - diluted $ 0.06 $ 0.27 The following table sets forth the calculation of basic EPS based on net income attributable to GSHD for the three and nine months ended September 30, 2018, divided by the basic weighted average number of Class A common stock as of September 30, 2018 (in thousands, except per share amounts) . Diluted EPS of Class A common stock is computed by dividing net income attributable to GSHD by the weighted average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities (in thousands, except per share amounts) . The Company has not included the effects of conversion of Class B shares to Class A shares in the diluted EPS calculation using the "if-converted" method, because doing so has no impact on diluted EPS. Three Months Ended Nine Months Ended Numerator: Income (loss) before taxes $ 1,000 $ (18,951) Less: income (loss) before taxes attributable to non-controlling interests 627 (10,246) Income (loss) before taxes attributable to GSHD 373 (8,705) Less: income tax expense attributable to GSHD 132 286 Net loss attributable to Goosehead Insurance, Inc. (1) $ 241 $ (8,991) Denominator: Weighted average shares of Class A common stock outstanding - basic 13,533 13,533 Effect of dilutive securities: Stock options (2) 1,081 — Weighted average shares of Class A common stock outstanding - diluted 14,614 13,533 Earnings per share of Class A common stock - basic $ 0.02 $ (0.66) Earnings per share of Class A common stock - diluted $ 0.02 $ (0.66) (1) Net income attributable to Goosehead Insurance, Inc. excludes all net income prior to the Offering. (2) 1,650 thousand stock options were excluded from the computation of diluted earnings per share of Class A common stock because the effect would have been anti-dilutive, as we recorded a net loss for the three and nine months ended September 30, 2018.

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement [Abstract]
Summary of Equity-Based Compensation Expense	A summary of equity-based compensation expense during the three and nine months ended September 30, 2019 and September 30, 2018 is as follows (in thousands) : Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Class B unit compensation $ — $ — $ — $ 26,134 Stock options 396 345 1,131 604 Equity-based compensation expense $ 396 $ 345 $ 1,131 $ 26,738

Dividends (Tables)

Dividends (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Summary of total estimated dividends to be paid	A summary of the total amounts declared by GF is as follows (in thousands) : LLC Units held as of March 18, 2019 Dividends declared Class A common stockholders 14,421 $ 5,962 Class B common stockholders via LLC Units held 21,864 9,038 Total 36,285 $ 15,000

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Schedule of Segment Information	Franchise Corporate Other Total Three months ended September 30, 2019: Revenues: Commissions and fees $ 413 $ 11,326 $ — $ 11,739 Franchise revenues 9,261 — — 9,261 Interest income 169 — — 169 Total 9,843 11,326 — 21,169 Operating expenses: Employee compensation and benefits, excluding equity-based compensation 4,531 6,485 — 11,016 General and administrative expenses 2,325 2,281 563 5,169 Bad debts 119 280 — 399 Total 6,975 9,046 563 16,584 Adjusted EBITDA 2,868 2,280 (563) 4,585 Equity-based compensation — — (396) (396) Interest expense — — (609) (609) Depreciation and amortization (266) (250) — (516) Taxes — — (301) (301) Net income (loss) $ 2,602 $ 2,030 $ (1,869) $ 2,763 At September 30, 2019: Total Assets $ 14,103 $ 7,150 $ 23,168 $ 44,421 Franchise Corporate Other Total Three months ended September 30, 2018: Revenues: Commissions and fees $ 388 $ 9,372 $ — $ 9,760 Franchise revenues 6,180 — — 6,180 Interest income 114 — — 114 Total 6,682 9,372 — 16,054 Operating expenses: Employee compensation and benefits, excluding equity-based compensation 3,393 5,218 — 8,611 General and administrative expenses 1,283 1,938 473 3,694 Bad debts 167 232 — 399 Total 4,843 7,388 473 12,704 Adjusted EBITDA 1,839 1,984 (473) 3,350 Other income (expense) — (22) — (22) Equity-based compensation — — (345) (345) Interest expense — — (1,631) (1,631) Depreciation and amortization (128) (224) — (352) Taxes — — (164) (164) Net income (loss) $ 1,711 $ 1,738 $ (2,613) $ 836 At September 30, 2018: Total Assets $ 9,073 $ 14,222 $ 7,904 $ 31,199 Franchise Corporate Other Total Nine Months Ended September 30, 2019: Revenues: Commissions and fees $ 4,719 $ 33,953 $ — $ 38,672 Franchise revenues 24,564 — — 24,564 Interest income 452 — — 452 Total 29,735 33,953 — 63,688 Operating expenses: Employee compensation and benefits, excluding equity-based compensation 12,326 17,524 — 29,850 General and administrative expenses 5,487 6,261 2,052 13,800 Bad debts 486 796 — 1,282 Total 18,299 24,581 2,052 44,932 Adjusted EBITDA 11,436 9,372 (2,052) 18,756 Equity-based compensation — — (1,131) (1,131) Interest expense — — (1,861) (1,861) Depreciation and amortization (668) (723) — (1,391) Taxes — — (1,475) (1,475) Net income (loss) $ 10,768 $ 8,649 $ (6,519) $ 12,898 At September 30, 2019: Total Assets $ 14,103 $ 7,150 $ 23,168 $ 44,421 Franchise Corporate Other Total Nine Months Ended September 30, 2018: Revenues: Commissions and fees $ 2,319 $ 25,753 $ — $ 28,072 Franchise revenues 17,060 — — 17,060 Interest income 299 — — 299 Total 19,678 25,753 — 45,431 Operating expenses: Employee compensation and benefits, excluding equity-based compensation 9,036 13,872 — 22,908 General and administrative expenses 3,123 5,265 705 9,093 Bad debts 329 655 — 984 Total 12,488 19,792 705 32,985 Adjusted EBITDA 7,190 5,961 (705) 12,446 Other income (expense) — (22) — (22) Equity-based compensation — — (26,738) (26,738) Interest expense — — (3,598) (3,598) Depreciation and amortization (340) (699) — (1,039) Taxes — — (318) (318) Net income (loss) $ 6,850 $ 5,240 $ (31,359) $ (19,269) At September 30, 2018: Total Assets $ 9,073 $ 14,222 $ 7,904 $ 31,199

Organization - Narrative (Detai

Organization - Narrative (Details) shares in Thousands	May 02, 2018	May 01, 2018$ / sharesshares	Sep. 30, 2019locationfranchise	Sep. 30, 2018franchiselocation	Sep. 30, 2019franchiselocation	Sep. 30, 2018franchiselocation
Subsidiary, Sale of Stock [Line Items]
Corporate-owned locations | location			7	7	7	7
Franchise locations sold			72	52
Operating franchise locations			583	424	583	424
Franchises purchased					0	0
Initial Public Offering | Class A Common Stock
Subsidiary, Sale of Stock [Line Items]
Shares issued (in shares) | shares		9,810
Share price (in dollars per share) | $ / shares		$ 10
Over-Allotment Option | Class A Common Stock
Subsidiary, Sale of Stock [Line Items]
Shares issued (in shares) | shares		1,280
Goosehead Insurance, Inc. | Goosehead Financial, LLC
Subsidiary, Sale of Stock [Line Items]
Ownership interest	37.30%
Pre-IPO LLC Members | Goosehead Financial, LLC
Subsidiary, Sale of Stock [Line Items]
Ownership interest	62.70%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Restricted cash		$ 728	$ 533
Future minimum operating lease commitments		$ 22,800
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' Equity, Period Increase (Decrease)	$ 6,000
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' Equity, Period Increase (Decrease)	$ 10,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Cash and cash equivalents	$ 10,820	$ 18,635	$ 18,067
Restricted cash	728		533
Cash and cash equivalents, and restricted cash	$ 11,548	$ 19,011	$ 18,600	$ 5,366

Franchise Fees Receivable - Bal

Franchise Fees Receivable - Balance of Franchise Fees Receivable (Details) - Franchise Fees Receivable - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Franchise fees receivable	$ 4,876	$ 3,906
Less: Unamortized discount	(1,739)	(1,381)
Less: Allowance for uncollectible franchise fees	(565)	(455)	$ (482)	$ (336)
Total franchise fees receivable	$ 2,572	$ 2,070

Franchise Fees Receivable - Rol

Franchise Fees Receivable - Roll-Forward of Allowance (Details) - Franchise Fees Receivable - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 455	$ 336
Charges to bad debts	486	329
Write offs	(376)	(183)
Ending balance	$ 565	$ 482

Allowance for Uncollectible A_3

Allowance for Uncollectible Agency Fees - Roll-Forward of Allowance (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Bad debt expense	$ 399	$ 399	$ 1,282	$ 984
Agency Fees
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance			242	183
Bad debt expense			796	655
Write offs			(730)	(598)
Ending balance	$ 308	$ 240	$ 308	$ 240

Property and equipment (Details

Property and equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 14,309	$ 11,024
Less accumulated depreciation	(4,699)	(3,449)
Property and equipment, net	9,610	7,575
Furniture & fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,875	2,233
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,317	1,023
Network equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	252	252
Phone system
Property, Plant and Equipment [Line Items]
Property and equipment, gross	876	824
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 8,989	$ 6,692

Note Payable - Narrative (Detai

Note Payable - Narrative (Details)	Aug. 03, 2018USD ($)	Sep. 30, 2019USD ($)	Aug. 02, 2018USD ($)
Debt Instrument [Line Items]
Leverage ratio		1.50
Aggregate principal amount		$ 37,250,000
Leverage ratio		1.50
Line of Credit
Debt Instrument [Line Items]
Letter of credit		$ 2,600,000
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing availability	$ 13,000,000		$ 3,000,000
Additional commitments	50,000,000
Revolver balance		10,000,000
Remaining borrowing availability		417,000
Interest expense		351,000
Secured Debt
Debt Instrument [Line Items]
Principal amount of debt	$ 40,000,000		$ 50,000,000
Aggregate principal amount		37,300,000
Quarterly payments, last twelve months		1,250,000
Debt issuance costs		$ 392,000
Amortization period		3 years
LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		2.00%
Basis spread on variable rate		2.00%
LIBOR | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate	2.50%
Basis spread on variable rate	2.50%
LIBOR | Secured Debt
Debt Instrument [Line Items]
Basis spread on variable rate	2.50%
Basis spread on variable rate	2.50%

Note Payable - Leverage (Detail

Note Payable - Leverage (Details)	Aug. 03, 2018	Sep. 30, 2019
Debt Instrument [Line Items]
Leverage ratio		1.50
Leverage ratio		1.50
LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		2.00%
Less than 1.50
Debt Instrument [Line Items]
Leverage ratio	1.50
Leverage ratio	1.50
Less than 1.50 | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%
Greater than 1.50
Debt Instrument [Line Items]
Leverage ratio	1.50
Leverage ratio	1.50
Greater than 1.50 | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%
Greater than 2.50
Debt Instrument [Line Items]
Leverage ratio	2.50
Leverage ratio	2.50
Greater than 2.50 | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	2.25%
Greater than 3.50
Debt Instrument [Line Items]
Leverage ratio	3.50
Leverage ratio	3.50
Greater than 3.50 | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	2.50%

Note Payable - Schedule of Matu

Note Payable - Schedule of Maturities of Note Payable (Details) $ in Thousands	Sep. 30, 2019USD ($)
Debt Disclosure [Abstract]
2019	$ 750
2020	4,000
2021	32,500
Total	$ 37,250

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Rent Expense	$ 541	$ 383	$ 1,434	$ 1,192
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2019	460		460
2020	2,575		2,575
2021	2,793		2,793
2022	2,762		2,762
2023	2,578		2,578
2024-2029	11,626		11,626
Lessee, Operating Lease, Liability, Payments, Due, Total	$ 22,794		$ 22,794

Income Taxes (Details)

Income Taxes (Details) - USD ($) shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Tax Contingency [Line Items]
Uncertain tax positions	$ 0		$ 0
Redemption of LLC Units (in shares)	160		1,371
Non-controlling Interest		$ 32,000		$ 3,479,000
Tax Receivable Agreement
Income Tax Contingency [Line Items]
Percentage due to related parties			85.00%
Tax Receivable Agreement | Pre-IPO LLC Members
Income Tax Contingency [Line Items]
Percentage due to related parties			85.00%
Due to related parties	$ 12,700,000		$ 12,700,000
Due to related parties, current	$ 11,000		$ 11,000
LLC Units
Income Tax Contingency [Line Items]
Redemption of LLC units by Pre-IPO LLC members	160		1,371
Redemption of LLC Units (in shares)	160		1,400

Income Taxes Schedule of Reconc

Income Taxes Schedule of Reconciliation of Income Tax Expense (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income before taxes	$ 3,064,000	$ 1,000,000	$ 14,373,000	$ (18,951,000)
Less: income prior to the Reorganization Transactions		0		(4,389,000)
Income (Loss) Attributable to Noncontrolling Interest, before Tax		1,000,000		(23,340,000)
Income taxes at U.S. federal statutory rate	644,000	215,000	3,018,000	(4,902,000)
Tax on income not subject to entity level federal income tax	370,000	(147,000)	1,793,000	(382,000)
Non-deductible stock compensation costs		0		2,038,000
Income tax expense	392,000	132,000	1,338,000	286,000
Meals & Entertainment	17,000		42,000
Non-deductible stock compensation costs	(11,000)		0
Non-deductible excess compensation	(21,000)		0
Other permanent differences		11,000		25,000
State income tax, net of federal benefit	62,000	51,000	229,000	58,000
Other	(20,000)	2,000	(21,000)	2,000
Income Tax Expense	$ 301,000	$ 164,000	$ 1,475,000	$ 318,000

Income Taxes Schedule of Deferr

Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Investment in flow-through entity	$ 14,503	$ 1,958
Net deferred tax asset (liability)	$ 14,503	$ 1,958

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) $ in Thousands	May 01, 2018USD ($)	Jun. 30, 2018USD ($)	Sep. 30, 2019USD ($)voteshares	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Sep. 30, 2019USD ($)voteshares	Sep. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Class of Stock [Line Items]
Redemption of LLC Units (in shares) | shares			160,000						1,371,000
Ownership interest held by non-controlling interest holders			58.20%						58.20%
Redemption of LLC Units (in shares) | shares			160,000						1,371,000
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Effects of the Reorganization Transactions		$ (113,734)
Initial non-controlling interest allocation		0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ (38,022)	(26,684)	$ (27,850)	$ (30,548)	$ (31,851)	$ (25,203)	$ (26,521)	$ (26,684)	$ (27,850)	$ (26,521)	$ (37,365)	$ (41,133)
Redemption of LLC Units			$ 0	0	0	0
Class A Common Stock
Class of Stock [Line Items]
Common Stock Shares Outstanding1 (in shares) | shares			15,173						15,173
Vote per share | vote			1						1
Redemption of LLC Units (in shares) | shares			160,000						1,400,000
Redemption of LLC Units (in shares) | shares			160,000						1,400,000
Class B Common Stock
Class of Stock [Line Items]
Common Stock Shares Outstanding1 (in shares) | shares			21,115						21,115
Vote per share | vote			1						1
Redemption of LLC Units (in shares) | shares									1,400,000
Redemption of LLC Units (in shares) | shares									1,400,000
LLC Units
Class of Stock [Line Items]
Conversion ratio	1
Redemption of LLC Units (in shares) | shares			160,000						1,400,000
Redemption of LLC Units (in shares) | shares			160,000						1,400,000
Additional paid in capital
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Effects of the Reorganization Transactions		(94,180)						(94,180)
Initial non-controlling interest allocation		(18,920)						(18,920)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		11,065	$ 13,792	13,216	12,499	11,899	11,290	11,065	$ 13,792	11,290	0	0
Redemption of LLC Units			145	477	679	194
Accumulated deficit
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Effects of the Reorganization Transactions		(21,562)						(21,562)
Initial non-controlling interest allocation								0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		(20,996)	(22,350)	(23,348)	(24,251)	(20,761)	(20,851)	(20,996)	(22,350)	(20,851)	0	0
Redemption of LLC Units				0	0	0
Parent
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Effects of the Reorganization Transactions		(115,515)						(115,515)
Initial non-controlling interest allocation		(18,920)						(18,920)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		(9,569)	(8,196)	(9,770)	(11,390)	(8,500)	(9,199)	(9,569)	(8,196)	(9,199)	0	0
Redemption of LLC Units			145	477	679	194
Non-controlling interest
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Effects of the Reorganization Transactions		(36,241)						(36,241)
Initial non-controlling interest allocation		18,920						18,920
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		(17,115)	(19,654)	(20,778)	(20,461)	(16,703)	(17,322)	(17,115)	(19,654)	(17,322)	$ 0	$ 0
Redemption of LLC Units			(145)	(477)	(679)	(194)
Pre-IPO LLC Members | LLC Units
Class of Stock [Line Items]
Distributions			800				900		3,700	2,900
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Distributions			800				900		3,700	2,900
Goosehead Insurance, Inc. | LLC Units
Class of Stock [Line Items]
Distributions			1,400				1,400		6,300	3,800
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Distributions			$ 1,400				$ 1,400		$ 6,300	$ 3,800
Weighted Average
Class of Stock [Line Items]
Ownership interest held by non-controlling interest holders			58.30%				59.40%		58.30%	59.40%
As previously reported | Additional paid in capital
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Effects of the Reorganization Transactions								(132,202)
Initial non-controlling interest allocation								97,071
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		89,034		85,221	86,483	88,811	$ 89,259	89,034		$ 89,259
Redemption of LLC Units				2,456	3,607	1,251
As previously reported | Accumulated deficit
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Effects of the Reorganization Transactions								(7,379)
Initial non-controlling interest allocation								0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		(6,813)		(9,165)	(10,068)	(6,578)	(6,668)	(6,813)		(6,668)
Redemption of LLC Units				0	0	0
As previously reported | Parent
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Effects of the Reorganization Transactions								(139,354)
Initial non-controlling interest allocation								97,071
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		82,583		76,418	76,777	82,595	82,953	82,583		82,953
Redemption of LLC Units				2,456	3,607	1,251
As previously reported | Non-controlling interest
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Effects of the Reorganization Transactions								(12,402)
Initial non-controlling interest allocation								(97,071)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		(109,267)		(106,966)	(108,628)	(107,798)	(109,474)	(109,267)		(109,474)
Redemption of LLC Units				(2,456)	(3,607)	(1,251)
Adjustment | Additional paid in capital
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Effects of the Reorganization Transactions								38,022
Initial non-controlling interest allocation								(115,991)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		(77,969)		(72,005)	(73,984)	(76,912)	(77,969)	(77,969)		(77,969)
Redemption of LLC Units				(1,979)	(2,928)	(1,057)
Adjustment | Accumulated deficit
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Effects of the Reorganization Transactions								(14,183)
Initial non-controlling interest allocation								0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		(14,183)		(14,183)	(14,183)	(14,183)	(14,183)	(14,183)		(14,183)
Redemption of LLC Units				0	0	0
Adjustment | Parent
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Effects of the Reorganization Transactions								23,839
Initial non-controlling interest allocation								(115,991)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		(92,152)		(86,188)	(88,167)	(91,095)	(92,152)	(92,152)		(92,152)
Redemption of LLC Units				(1,979)	(2,928)	(1,057)
Adjustment | Non-controlling interest
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Effects of the Reorganization Transactions								(23,839)
Initial non-controlling interest allocation								115,991
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		$ 92,152		86,188	88,167	91,095	92,152	$ 92,152		92,152
Redemption of LLC Units				$ 1,979	$ 2,928	$ 1,057
Consolidation, Eliminations | Goosehead Insurance, Inc. | LLC Units
Class of Stock [Line Items]
Distributions			$ 600				500		$ 2,600	900
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Distributions			$ 600				$ 500		$ 2,600	$ 900

Stockholders' Equity - Pro Form

Stockholders' Equity - Pro Forma Ownership Interest (Details) - shares	Mar. 18, 2019	Sep. 30, 2019
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Pro forma number of LLC Units outstanding (in shares)	36,285,000	36,288
Ownership interest held by non-controlling interest holders		58.20%
Ownership interest		100.00%
Non-controlling interest
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Pro forma number of LLC Units outstanding (in shares)		21,115
Goosehead Financial, LLC
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Ownership interest held by Goosehead Insurance, Inc.		41.80%

Stockholders' Equity - Pro Fo_2

Stockholders' Equity - Pro Forma Basic EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Pro forma earnings per share:
Income before taxes	$ 3,064	$ 1,000	$ 14,373	$ (18,951)
Less: income before taxes attributable to non-controlling interests	1,801	627	8,662	(10,246)
Income before taxes attributable to GSHD	1,263	373	5,711	(8,705)
Less: income tax expense attributable to GSHD	392	132	1,338	286
Net income attributable to GSHD	$ 998	$ 241	$ 4,373	$ (8,991)
Weighted average shares of Class A common stock outstanding - basic (in shares)	15,140	13,533	14,746	13,533
Effect of dilutive securities (in shares)	1,311	1,081	1,140	0
Weighted average shares of Class A common stock outstanding - diluted (in shares)	16,451	14,614	15,936	13,533
Earnings per share of Class A common stock - basic (in dollars per share)	$ 0.07	$ 0.02	$ 0.30	$ (0.66)
Earnings per share of Class A common stock - diluted (in dollars per share)	$ 0.06	$ 0.02	$ 0.27	$ (0.66)
Class A Common Stock
Pro forma earnings per share:
Antidilutive securities excluded from computation of earnings per share (in shares)				1,650

Equity-Based Compensation - Sch

Equity-Based Compensation - Schedule of Equity-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 396	$ 345	$ 1,131	$ 26,738
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	396	345	1,131	604
Common Class B
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 0	$ 0	$ 0	$ 26,134

Dividends (Details)

Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 18, 2019	Mar. 07, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Dividends Payable [Line Items]
Dividends	$ 15,000
Dividends declared per share (in dollars per share)			$ 0	$ 0	$ 0.41	$ 0
LLC Units held (in shares)	36,285,000				36,288
LLC Units
Dividends Payable [Line Items]
Dividends		$ 15,000
Class A Common Stock
Dividends Payable [Line Items]
Dividends	$ 5,962
Dividends declared per share (in dollars per share)	$ 0.41
LLC Units held (in shares)	14,421,000
Class B Common Stock
Dividends Payable [Line Items]
Dividends	$ 9,038
LLC Units held (in shares)	21,864,000

Segment Information - Schedule

Segment Information - Schedule of Segment Information (Details)	1 Months Ended	3 Months Ended					9 Months Ended
	May 01, 2018USD ($)	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Sep. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Sep. 30, 2019USD ($)segment	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment							2
Revenues:
Revenues		$ 21,169,000			$ 16,054,000		$ 63,688,000	$ 45,431,000
Operating Expenses:
Employee compensation and benefits, excluding equity-based compensation		11,016,000			8,611,000		29,850,000	22,908,000
General and administrative expenses		5,169,000			3,694,000		13,800,000	9,093,000
Bad debts		399,000			399,000		1,282,000	984,000
Total operating expenses		16,584,000			12,704,000		44,932,000	32,985,000
Adjusted EBITDA		4,585,000			3,350,000		18,756,000	12,446,000
Equity-based compensation		(396,000)			(345,000)		(1,131,000)	(26,738,000)
Interest expense		(609,000)			(1,631,000)		(1,861,000)	(3,598,000)
Depreciation and amortization		(516,000)			(352,000)		(1,391,000)	(1,039,000)
Taxes		(301,000)			(164,000)		(1,475,000)	(318,000)
Net income (loss)	$ 621,000	2,763,000	$ 2,817,000	$ 7,318,000	836,000	$ 3,768,000	12,898,000	(19,269,000)
Total Assets		44,421,000			31,199,000		44,421,000	31,199,000	$ 34,798,000
Other income (expense)		0			(22,000)		0	(22,000)
Operating Segments | Franchise Channel
Revenues:
Revenues		9,843,000			6,682,000		29,735,000	19,678,000
Operating Expenses:
Employee compensation and benefits, excluding equity-based compensation		4,531,000			3,393,000		12,326,000	9,036,000
General and administrative expenses		2,325,000			1,283,000		5,487,000	3,123,000
Bad debts		119,000			167,000		486,000	329,000
Total operating expenses		6,975,000			4,843,000		18,299,000	12,488,000
Adjusted EBITDA		2,868,000			1,839,000		11,436,000	7,190,000
Equity-based compensation		0			0		0	0
Interest expense		0			0		0	0
Depreciation and amortization		(266,000)			(128,000)		(668,000)	(340,000)
Taxes		0			0		0	0
Net income (loss)		2,602,000			1,711,000		10,768,000	6,850,000
Total Assets		14,103,000			9,073,000		14,103,000	9,073,000
Other income (expense)								0
Operating Segments | Corporate Channel
Revenues:
Revenues		11,326,000			9,372,000		33,953,000	25,753,000
Operating Expenses:
Employee compensation and benefits, excluding equity-based compensation		6,485,000			5,218,000		17,524,000	13,872,000
General and administrative expenses		2,281,000			1,938,000		6,261,000	5,265,000
Bad debts		280,000			232,000		796,000	655,000
Total operating expenses		9,046,000			7,388,000		24,581,000	19,792,000
Adjusted EBITDA		2,280,000			1,984,000		9,372,000	5,961,000
Equity-based compensation		0			0		0	0
Interest expense		0			0		0	0
Depreciation and amortization		(250,000)			(224,000)		(723,000)	(699,000)
Taxes		0			0		0	0
Net income (loss)		2,030,000			1,738,000		8,649,000	5,240,000
Total Assets		7,150,000			14,222,000		7,150,000	14,222,000
Other income (expense)								(22,000)
Other
Revenues:
Revenues		0			0		0	0
Operating Expenses:
Employee compensation and benefits, excluding equity-based compensation		0			0		0	0
General and administrative expenses		563,000			473,000		2,052,000	705,000
Bad debts		0			0		0	0
Total operating expenses		563,000			473,000		2,052,000	705,000
Adjusted EBITDA		(563,000)			(473,000)		(2,052,000)	(705,000)
Equity-based compensation		(396,000)			(345,000)		(1,131,000)	(26,738,000)
Interest expense		(609,000)			(1,631,000)		(1,861,000)	(3,598,000)
Depreciation and amortization		0			0		0	0
Taxes		(301,000)			(164,000)		(1,475,000)	(318,000)
Net income (loss)		(1,869,000)			(2,613,000)		(6,519,000)	(31,359,000)
Total Assets		23,168,000			7,904,000		23,168,000	7,904,000
Other income (expense)								0
Commissions and agency fees
Revenues:
Revenues		11,739,000			9,760,000		38,672,000	28,072,000
Commissions and agency fees | Operating Segments | Franchise Channel
Revenues:
Revenues		413,000			388,000		4,719,000	2,319,000
Commissions and agency fees | Operating Segments | Corporate Channel
Revenues:
Revenues		11,326,000			9,372,000		33,953,000	25,753,000
Commissions and agency fees | Other
Revenues:
Revenues		0			0		0	0
Franchise revenues
Revenues:
Revenues		9,261,000			6,180,000		24,564,000	17,060,000
Franchise revenues | Operating Segments | Franchise Channel
Revenues:
Revenues		9,261,000			6,180,000		24,564,000	17,060,000
Franchise revenues | Operating Segments | Corporate Channel
Revenues:
Revenues		0			0		0	0
Franchise revenues | Other
Revenues:
Revenues		0			0		0	0
Interest income
Revenues:
Revenues		169,000			114,000		452,000	299,000
Interest income | Operating Segments | Franchise Channel
Revenues:
Revenues		169,000			114,000		452,000	299,000
Interest income | Operating Segments | Corporate Channel
Revenues:
Revenues		0			0		0	0
Interest income | Other
Revenues:
Revenues		$ 0			$ 0		$ 0	$ 0