Goosehead Insurance (GSHD) 10-Q 27 Jul 22 2022 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2022	Jul. 27, 2022
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
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	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001726978
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Class A Common stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		20,543,160
Class B Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		16,683,886

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenues:
Revenues	$ 53,022	$ 38,173	$ 94,300	$ 69,401
Operating Expenses:
Employee compensation and benefits	31,659	22,475	63,143	43,784
General and administrative expenses	12,378	10,134	25,902	19,408
Bad debts	1,660	646	2,456	1,093
Depreciation and amortization	1,658	1,132	3,234	2,132
Total operating expenses	47,355	34,387	94,735	66,417
Income (loss) from operations	5,667	3,786	(435)	2,984
Other Income (Expense):
Other income	0	119	0	139
Interest expense	(1,114)	(546)	(1,997)	(1,147)
Income (loss) before taxes	4,553	3,359	(2,432)	1,976
Tax expense (benefit)	2,164	223	562	(71)
Net income (loss)	2,389	3,136	(2,994)	2,047
Less: net income (loss) attributable to non-controlling interests	2,047	1,649	(1,050)	956
Net income (loss) attributable to Goosehead Insurance, Inc.	$ 342	$ 1,487	$ (1,944)	$ 1,091
Earnings per share:
Basic (in dollars per share)	$ 0.02	$ 0.08	$ (0.10)	$ 0.06
Diluted (in dollars per share)	$ 0.02	$ 0.07	$ (0.10)	$ 0.05
Weighted average shares of Class A common stock outstanding
Basic (in shares)	20,454	18,774	20,348	18,574
Diluted (in shares)	21,245	20,367	20,348	20,251
Commissions and agency fees
Revenues:
Revenues	$ 26,265	$ 21,053	$ 46,274	$ 38,587
Franchise revenues
Revenues:
Revenues	26,427	16,841	47,377	30,274
Interest income
Revenues:
Revenues	$ 330	$ 279	$ 649	$ 540

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current Assets:
Cash and cash equivalents	$ 31,121	$ 28,526
Restricted cash	2,427	1,953
Commissions and agency fees receivable, net	9,161	12,056
Receivable from franchisees, net	1,206	493
Prepaid expenses	7,195	4,785
Total current assets	51,110	47,813
Receivable from franchisees, net of current portion	30,689	29,180
Property and equipment, net of accumulated depreciation	27,571	24,933
Right-of-use asset	41,418	32,656
Intangible assets, net of accumulated amortization	3,749	2,798
Deferred income taxes, net	131,164	125,676
Other assets	5,585	4,742
Total assets	291,286	267,798
Current Liabilities:
Accounts payable and accrued expenses	5,753	10,502
Premiums payable	2,427	1,953
Lease liability	6,026	4,893
Contract liabilities	6,363	6,054
Note payable	5,625	4,375
Total current liabilities	26,194	27,777
Lease liability, net of current portion	57,169	47,335
Note payable, net of current portion	115,349	118,361
Contract liabilities, net of current portion	46,009	42,554
Liabilities under tax receivable agreement	105,312	100,959
Total liabilities	350,033	336,986
Additional paid in capital	58,942	46,281
Accumulated deficit	(63,290)	(60,671)
Total stockholders' equity	(3,977)	(14,020)
Non-controlling interests	(54,770)	(55,168)
Total equity	(58,747)	(69,188)
Total liabilities and equity	291,286	267,798
Class A Common stock
Current Liabilities:
Common stock	$ 203	$ 200
Common stock shares issued (in shares)	20,534	20,198
Class B Common Stock
Current Liabilities:
Common stock	$ 168	$ 170
Common stock shares issued (in shares)	16,693	16,909

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) - Parenthetical - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Class A Common stock
Common stock par value (in dollars per share)	$ 0.01	$ 0.01
Common stock shares authorized (in shares)	300,000,000	300,000,000
Common stock shares issued (in shares)	20,534,000	20,198,000
Common stock shares outstanding (in shares)	20,534,000	20,198,000
Class B Common Stock
Common stock par value (in dollars per share)	$ 0.01	$ 0.01
Common stock shares authorized (in shares)	50,000,000	50,000,000
Common stock shares issued (in shares)	16,693,000	16,909,000
Common stock shares outstanding (in shares)	16,693,000	16,909,000

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Class A Common stock	Class B Common Stock	Total stockholders' equity	Common stock Class A Common stock	Common stock Class B Common Stock	Additional paid in capital	Accumulated deficit	Non-controlling interest
Beginning balance (in shares) at Dec. 31, 2020					18,304,000	18,447,000
Beginning balance at Dec. 31, 2020	$ (38,404)			$ (4,876)	$ 183	$ 184	$ 29,371	$ (34,614)	$ (33,528)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(1,089)			(396)				(396)	(693)
Exercise of stock options (in shares)					9,000
Exercise of stock options	226			226			226
Equity-based compensation	1,941			1,941			1,941
Activity under employee stock purchase plan (in shares)					2,000
Activity under employee stock purchase plan	205			205			205
Redemption of LLC Units (in shares)					133,000	133,000
Redemption of LLC Units	0			(249)	$ 1	$ (1)	(249)		249
Deferred tax adjustments related to Tax Receivable Agreement	816			798			798		18
Reallocation of Non-controlling interest	0			2				2	(2)
Ending balance (in shares) at Mar. 31, 2021					18,448,000	18,314,000
Ending balance at Mar. 31, 2021	(36,305)			(2,349)	$ 184	$ 183	32,292	(35,008)	(33,956)
Beginning balance (in shares) at Dec. 31, 2020					18,304,000	18,447,000
Beginning balance at Dec. 31, 2020	(38,404)			(4,876)	$ 183	$ 184	29,371	(34,614)	(33,528)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	2,047
Activity under employee stock purchase plan				418
Redemption of LLC Units				(1,529)
Ending balance (in shares) at Jun. 30, 2021					19,209,000	17,586,000
Ending balance at Jun. 30, 2021	(27,501)			3,419	$ 191	$ 176	36,579	(33,527)	(30,920)
Beginning balance (in shares) at Mar. 31, 2021					18,448,000	18,314,000
Beginning balance at Mar. 31, 2021	(36,305)			(2,349)	$ 184	$ 183	32,292	(35,008)	(33,956)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	3,136			1,487				1,487	1,649
Exercise of stock options (in shares)					31,000
Exercise of stock options	439			439			439
Equity-based compensation	1,851			1,851			1,851
Activity under employee stock purchase plan (in shares)					2,000
Activity under employee stock purchase plan	214			214			214
Redemption of LLC Units (in shares)					728,000	728,000
Redemption of LLC Units	0			(1,280)	$ 7	$ (7)	(1,280)		1,280
Deferred tax adjustments related to Tax Receivable Agreement	3,164			3,063			3,063		101
Reallocation of Non-controlling interest	0			(6)				(6)	6
Ending balance (in shares) at Jun. 30, 2021					19,209,000	17,586,000
Ending balance at Jun. 30, 2021	(27,501)			3,419	$ 191	$ 176	36,579	(33,527)	(30,920)
Beginning balance (in shares) at Dec. 31, 2021		20,198,000	16,909,000		20,198,000	16,909,000
Beginning balance at Dec. 31, 2021	(69,188)			(14,020)	$ 200	$ 170	46,281	(60,671)	(55,168)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Distributions	0
Net (loss) income	(5,383)			(2,257)				(2,257)	(3,126)
Exercise of stock options (in shares)					19,000
Exercise of stock options	256			256			256
Equity-based compensation	5,788			5,788			5,788
Activity under employee stock purchase plan (in shares)					3,000
Activity under employee stock purchase plan	214			214			214
Redemption of LLC Units (in shares)					101,000	101,000
Redemption of LLC Units	0			(344)	$ 1	$ (1)	(344)		344
Deferred tax adjustments related to Tax Receivable Agreement	416			394			394		22
Reallocation of Non-controlling interest	0			(478)				(478)	478
Ending balance (in shares) at Mar. 31, 2022					20,321,000	16,808,000
Ending balance at Mar. 31, 2022	(67,897)			(10,447)	$ 201	$ 169	52,589	(63,406)	(57,450)
Beginning balance (in shares) at Dec. 31, 2021		20,198,000	16,909,000		20,198,000	16,909,000
Beginning balance at Dec. 31, 2021	(69,188)			(14,020)	$ 200	$ 170	46,281	(60,671)	(55,168)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(2,994)
Activity under employee stock purchase plan				391
Redemption of LLC Units (in shares)		215,000	215,000
Redemption of LLC Units				(721)
Ending balance (in shares) at Jun. 30, 2022		20,534,000	16,693,000		20,534,000	16,693,000
Ending balance at Jun. 30, 2022	(58,747)			(3,977)	$ 203	$ 168	58,942	(63,290)	(54,770)
Beginning balance (in shares) at Mar. 31, 2022					20,321,000	16,808,000
Beginning balance at Mar. 31, 2022	(67,897)			(10,447)	$ 201	$ 169	52,589	(63,406)	(57,450)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	2,389			342				342	2,047
Exercise of stock options (in shares)					94,000
Exercise of stock options	1,008			1,008	$ 1		1,007
Equity-based compensation	5,173			5,173			5,173
Activity under employee stock purchase plan (in shares)					4,000
Activity under employee stock purchase plan	177			177			177
Redemption of LLC Units (in shares)		115,000	115,000		115,000	115,000
Redemption of LLC Units	0			(377)	$ 1	$ (1)	(377)		377
Deferred tax adjustments related to Tax Receivable Agreement	403			373			373		30
Reallocation of Non-controlling interest	0			(226)				(226)	226
Ending balance (in shares) at Jun. 30, 2022		20,534,000	16,693,000		20,534,000	16,693,000
Ending balance at Jun. 30, 2022	$ (58,747)			$ (3,977)	$ 203	$ 168	$ 58,942	$ (63,290)	$ (54,770)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities:
Net income (loss)	$ (2,994)	$ 2,047
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	3,347	2,264
Bad debt expense	2,456	1,093
Equity-based compensation	10,961	3,793
Impacts of Tax Receivable Agreement	4,353	20,628
Deferred income taxes	(4,670)	(20,772)
Noncash lease activity	2,205	5,080
Changes in operating assets and liabilities:
Receivable from franchisees	(3,584)	(6,112)
Commissions and agency fees receivable	1,780	11,745
Prepaid expenses	(2,410)	(3,689)
Other assets	(839)	(1,303)
Accounts payable and accrued expenses	(4,751)	(1,649)
Contract liabilities	3,764	7,188
Premiums payable	474	228
Payments pursuant to the tax receivable agreement	0	(549)
Net cash provided by operating activities	10,092	19,992
Cash flows from investing activities:
Proceeds from notes receivable	21	17
Purchase of software	(1,292)	(1,369)
Purchase of property and equipment	(5,531)	(7,934)
Net cash used for investing activities	(6,802)	(9,286)
Cash flows from financing activities:
Repayment of note payable	(1,875)	(1,500)
Proceeds from the issuance of Class A common stock	1,654	1,084
Net cash used for financing activities	(221)	(416)
Net increase in cash and restricted cash	3,069	10,290
Cash and cash equivalents, and restricted cash, beginning of period	30,479	26,236
Cash and cash equivalents, and restricted cash, end of period	33,548	36,526
Supplemental disclosures of cash flow data:
Cash paid during the period for interest	2,143	1,015
Cash paid for income taxes	$ 398	$ 262

Organization

Organization	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Goosehead Insurance, Inc. (“GSHD”) is the sole managing member of Goosehead Financial, LLC (“GF”) and 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 condensed consolidated financial statements. GF was organized on January 1, 2016 as a Delaware Limited Liability Company and is headquartered in Westlake, TX. 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 15 and 11 corporate-owned locations in operation at June 30, 2022 and 2021, respectively. Franchisees are provided access to insurance Carrier Appointments, product training, technology infrastructure, client service centers and back office services. During the three months ended June 30, 2022 and 2021, the Company onboarded 141 and 108 franchise locations, respectively, and had 1,344 and 1,072 operating franchise locations as of June 30, 2022 and 2021, respectively. No franchises were purchased by the Company during the three and six months ended June 30, 2022 or 2021. All intercompany accounts and transactions have been eliminated in consolidation.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2022
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 June 30, 2022 and December 31, 2021, the condensed consolidated results of operations, stockholders' equity and statements of cash flows for the three and six months ended June 30, 2022 and 2021. 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. In accordance with Accounting Standards Codification 280 "Segment Reporting", and in the first quarter of 2022, the Company began reporting one operating segment due to changes in how the Company's chief operating decision maker assesses the Company's performance and allocates resources. See Note 12 "Segment Reporting". The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results that can be expected for the entire year. The Company experiences seasonal fluctuations of its revenue due to the timing of contingent commission revenue recognition and trends in housing market activity. Impact of the Coronavirus (“COVID-19”) Pandemic To date, the pandemic has not increased our costs of or access to capital under our term note and revolving credit facility, and we do not believe it is reasonably likely to do so in the future. In addition, we do not believe that the pandemic will affect our ongoing ability to meet the covenants in our debt instruments, including under our term note and revolving credit facility. To date, the pandemic has not impacted the collectability of receivables or adversely affected our ability to generate new business, add new franchises, or retain existing franchises or policies. While contingent commissions initially benefited from lower loss ratios in the early part of the pandemic, we now anticipate lower contingent commissions as customers return to pre-pandemic driving patterns and loss ratios increase. The pandemic has also contributed to inflationary pressures and supply chain disruptions, and these challenges could persist if governments continue to impose lockdowns, quarantine requirements and other restrictions in order to control rates of COVID-19 infections. For example, increased inflation may result in increased labor costs and increased losses for our carriers, which in turn could negatively impact Contingent Commissions the Company receives in the near term. Due to the nature of our business, the effect of the COVID-19 pandemic may not be fully reflected in our results of operations until future periods. 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 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 $2.4 million and $1.6 million as of June 30, 2022 and 2021, respectively. The following is a reconciliation of our cash and restricted cash balances as presented in the condensed consolidated statements of cash flows for the six months ended June 30, 2022 and 2021 (in thousands) : June 30, 2022 2021 Cash and cash equivalents $ 31,121 $ 34,975 Restricted cash 2,427 1,551 Cash and cash equivalents, and restricted cash $ 33,548 $ 36,526 Recently adopted accounting pronouncements Simplifying the Accounting for Income Taxes (ASU 2019-12) : In 2019, the Financial Accounting Standards Board issued ASU 2019-12 to simplify the accounting for income taxes. The guidance primarily addresses how to (1) recognize a deferred tax liability after we transition to or from the equity method of accounting, (2) evaluate if a step-up in the tax basis of goodwill is related to a business combination or is a separate transaction, (3) recognize all of the effects of a change in tax law in the period of enactment, including adjusting the estimated annual tax rate, and (4) include the amount of tax based on income in the income tax provision and any incremental amount as a tax not based on income for hybrid tax regimes. We adopted the guidance in the first quarter of 2021. The adoption did not have a material impact on our condensed consolidated financial statements or related disclosures. Reference Rate Reform (ASU 2020-04) : In March 2020, the Financial Accounting Standards Board issued ASU 2020-04. Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying U.S. GAAP if certain criteria are met to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued. ASU 2020-04 is effective from March 12, 2020 through December 31, 2022. A substantial portion of our indebtedness bears interest at variable interest rates, primarily based on USD-LIBOR. The adoption of ASU 2020-04 did not have a material impact on our condensed consolidated financial statements. The standard will ease, if warranted, the administrative requirements for accounting for the future effects of the rate reform. Our debt agreement contains a provision to move to the Secured Overnight Financing Rate ("SOFR") if or when LIBOR is phased out.

Revenue

Revenue	6 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Commissions and fees The Company earns new and renewal commissions paid by insurance Carriers and fees paid by its clients for the binding of insurance coverage. The transactions price is set as the estimated commissions to be received over the term of the policy based on an estimate of premiums placed, policy changes and cancellations, net of a constraint. These commissions and fees are earned at a point in time upon the effective date of bound insurance coverage, as no performance obligation exists after coverage is bound. For Agency Fees, the Company enters into a contract with the insured, in which the Company's performance obligation is to place an insurance policy. The transaction price of the agency fee is set at the time the sale is agreed upon, and is included in the contract. Agency Fee revenue is recognized at a point in time, which is the effective date of the policy. Contingent commission revenue is generated from contracts between the Company and insurance carriers, for which the Company is compensated for certain growth, profitability, or other performance-based metrics. The performance obligations for contingent commissions will vary by contract, but generally include the Company increasing profitable written premium with the insurance carrier. The transaction price for contingent commissions is estimated based on all available information and is recognized over time as the Company completes its performance obligations, as the underlying policies are placed, net of a constraint. Franchise revenues Franchise revenues include initial franchise fees and ongoing new and renewal royalty fees from franchisees. Revenue from initial franchise fees is generated from a contract between the Company and a franchisee. The Company's performance obligation is to provide initial training, onboarding, ongoing support and use of the Company's business operations over the period of the franchise agreement. The transaction price is set by the franchise agreement and revenue is recognized over time as the Company completes its performance obligations. Revenue from new and renewal royalty fees is recorded by applying the sales- and usage-based royalties exception. Under the sales- and usage-based exception, the Company estimates the anticipated amount of the royalties to be received over the term of the policy based on an estimate of premiums placed by the franchisee, policy changes, and cancellations, net of a constraint. Revenue from royalty fees is recognized over time as the placement of the underlying policies occur. Contract costs The Company has evaluated ASC Topic 340 - Other Assets and Deferred Cost (“ASC 340”) which requires companies to defer certain incremental cost to obtain customer contracts, and certain costs to fulfill customer contracts. Incremental cost to obtain - The adoption of ASC 340 resulted in the Company deferring certain costs to obtain customer contracts primarily as they relate to commission-based compensation plans for the franchise sales team, in which the Company pays an incremental amount of compensation on new Franchise Agreements. These incremental costs are deferred and amortized over a 10-year period, which is consistent with the term of the contract. Costs to fulfill - The Company has evaluated the need to capitalize costs to fulfill customer contracts and has determined that there are no costs that meet the definition for capitalization under ASC 340. Disaggregation of Revenue The following table disaggregates revenue by source (in thousands) : Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Type of revenue stream: Commissions and agency fees Renewal Commissions $ 14,541 $ 10,310 $ 24,748 $ 18,067 New Business Commissions 6,730 5,944 12,097 10,560 Agency Fees 3,114 3,105 5,751 5,529 Contingent Commissions 1,880 1,694 3,678 4,431 Franchise revenues Renewal Royalty Fees 18,870 11,670 32,872 20,416 New Business Royalty Fees 4,821 3,680 9,113 6,837 Initial Franchise Fees 2,591 1,458 4,887 2,890 Other Franchise Revenues 145 33 505 131 Interest Income 330 279 649 540 Total Revenues $ 53,022 $ 38,173 $ 94,300 $ 69,401 Timing of revenue recognition: Transferred at a point in time $ 24,385 $ 19,359 $ 42,596 $ 34,156 Transferred over time 28,637 18,814 51,704 35,245 Total Revenues $ 53,022 $ 38,173 $ 94,300 $ 69,401 Contract Balances The following table provides information about receivables, cost to obtain, and contract liabilities from contracts with customers (in thousands) : June 30, 2022 December 31, 2021 Increase/(decrease) Cost to obtain franchise contracts (1) $ 2,627 $ 1,973 $ 654 Commissions and agency fees receivable, net (2) 9,161 12,056 (2,895) Receivable from franchisees (2) 31,895 29,673 2,222 Contract liabilities (2)(3) 52,372 48,608 3,764 (1) Cost to obtain franchise contracts is included in Other assets on the condensed consolidated balance sheets. (2) Includes both the current and long term portion of this balance. (3) Initial Franchise Fees to be recognized over the life of the contract. The Company records Franchise Fees as contract liabilities on the Condensed Consolidated Balance Sheets when the agreement is executed. Contract liabilities are reduced as fees are recognized in revenue over the expected life of the franchise license. As the term of the franchise license is typically ten years, substantially all of the franchise fee revenue recognized in the period ended June 30, 2022 was included in the contract liabilities balance as of December 31, 2021. The weighted average remaining amortization period for contract liabilities related to open franchises is 8.1 years. Significant changes in contract liabilities are as follows (in thousands) : Contract liabilities at December 31, 2021 $ 48,608 Revenue recognized during the period (4,887) New deferrals (1) 8,651 Contract liabilities at June 30, 2022 $ 52,372 (1) Initial Franchise Fees where the consideration is received from the franchisee for services which are to be transferred to the Franchisee over the expected life of the Franchise Agreement

Franchise Fees Receivable

Franchise Fees Receivable	6 Months Ended
	Jun. 30, 2022
Receivables [Abstract]
Franchise Fees Receivable	Franchise Fees Receivable The balance of Franchise fees receivable included in Receivable from franchisees consisted of the following (in thousands) : June 30, 2022 December 31, 2021 Franchise fees receivable (1) $ 43,133 $ 40,171 Less: Unamortized discount (1) (10,824) (9,518) Less: Allowance for uncollectible franchise fees (1) (427) (303) Net franchise fees receivable (1) $ 31,882 $ 30,350 (1) Includes both the current and long term portion of this balance Activity in the allowance for uncollectible franchise fees was as follows (in thousands) : Balance at December 31, 2021 $ 303 Charges to bad debts 1,341 Write offs (1,217) Balance at June 30, 2022 $ 427 Balance at December 31, 2020 $ 149 Charges to bad debts 296 Write offs (305) Balance at June 30, 2021 $ 140

Allowance for Uncollectible Age

Allowance for Uncollectible Agency Fees	6 Months Ended
	Jun. 30, 2022
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, 2021 $ 489 Charges to bad debts 1,115 Write offs (1,052) Balance at June 30, 2022 $ 552 Balance at December 31, 2020 $ 468 Charges to bad debts 797 Write offs (708) Balance at June 30, 2021 $ 557

Property and equipment

Property and equipment	6 Months Ended
	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Property and equipment	Property and equipment Property and equipment consisted of the following (in thousands) : June 30, 2022 December 31, 2021 Furniture & fixtures $ 7,743 $ 7,283 Computer equipment 3,967 3,369 Network equipment 320 514 Phone system 326 937 Leasehold improvements 27,241 25,115 Total 39,597 37,218 Less accumulated depreciation (12,026) (12,285) Property and equipment, net $ 27,571 $ 24,933 Depreciation expense was $2.9 million and $2.1 million for six months ended June 30, 2022 and 2021, respectively.

Debt

Debt	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Debt	Debt On July 21, 2021, the Company refinanced its $25.0 million revolving credit facility and $80.0 million term note payable to a $50.0 million revolving credit facility and $100.0 million term note payable to finance general corporate purposes and the special dividend. The Company also has the right, subject to approval by the administrative agent and each issuing bank, to increase the commitments under the credit facilities by an additional $25.0 million. The $50.0 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. At June 30, 2022 the Company was accruing interest at LIBOR plus 250 basis points. At June 30, 2022, the Company had $25.0 million drawn against the revolving credit facility and had a letter of credit of $0.2 million applied against the maximum borrowing availability, payable on July 21, 2026. Thus, amounts available to draw totaled $24.8 million. The revolving credit facility is collateralized by substantially all the Company’s assets, which includes rights to future commissions and royalties. The term note is payable in quarterly installments of $0.6 million the first twelve months, $1.3 million the next twelve months, $1.9 million the next twelve months, and $2.5 million the last twenty-four months, with a balloon payment on July 21, 2026. The note is collateralized by substantially all of the Company’s assets, which includes rights to future commissions and royalties. Interest is calculated initially at LIBOR plus 2.50%, then at an interest rate based on the Company's leverage ratio for the preceding period. At June 30, 2022 the Company was accruing interest at LIBOR plus 250 basis points. The interest rate for each leverage ratio tier is as follows: Leverage Ratio Interest Rate < 1.50x LIBOR + 175 bps > 1.50x LIBOR + 200 bps > 2.50x LIBOR + 225 bps > 3.50x LIBOR + 250 bps Maturities of the term note payable for the next five years are as follows ( in thousands ): Amount 2022 2,500 2023 6,875 2024 9,375 2025 10,000 2026 68,125 Total $ 96,875 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. As of June 30, 2022, the Company's maximum allowable trailing twelve months debt-to-EBITDA ratio, as defined by the credit agreement, was 4.5x. 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 June 30, 2022, the Company was in compliance with these covenants. Because of both instruments’ variable interest rate, the note payable balance at June 30, 2022 and December 31, 2021, 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.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes GSHD is 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 (benefit) Provision for/(benefit from) income taxes for the three and six months ended June 30, 2022 was $2.2 million and $0.6 million compared to $0.2 million and $(0.1) million for the three and six months ended June 30, 2021, respectively. The effective tax rate was 48% and (23)% for the three and six months ended June 30, 2022 and 7% and (4)% for the three and six months ended June 30, 2021. The increase in the effective tax rate for the three and six months ended June 30, 2022 compared to the three and six months ended June 30, 2021 was primarily due to a decrease in exercises of employee stock options. Deferred taxes Deferred tax assets at June 30, 2022 were $131.2 million compared to $125.7 million at December 31, 2021. The primary contributing factor to the increase in deferred tax assets is additional redemptions of LLC Units of GF for shares of Class A common stock of GSHD during the six months ended June 30, 2022. 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 six months ended June 30, 2022, an aggregate of 114,767 and 215,457 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 114,767 and 215,457 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 June 30, 2022, the total amount of TRA Payments due to the Pre-IPO LLC Members under the tax receivable agreement was $105.3 million, of which $0.0 million was current and included in Accounts payables and accrued expenses on the Condensed Consolidated Balance Sheet. Future exchanges of LLC Units for Class A common stock will result in additional TRA payments. Uncertain tax positions GSHD has determined there are no material uncertain tax positions as of June 30, 2022.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2022
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity Class A Common Stock GSHD has a total of 20,534 shares of its Class A common stock outstanding at June 30, 2022. 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 16,693 shares of its Class B common stock outstanding at June 30, 2022. 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. 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 six months ended June 30, 2022 and 2021, divided by the basic weighted average number of Class A common stock as of June 30, 2022 and 2021 (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. 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Income (loss) before taxes $ 4,553 $ 3,359 $ (2,432) $ 1,976 Less: income (loss) before taxes attributable to non-controlling interests 2,047 1,649 (1,050) 956 Income (loss) before taxes attributable to GSHD 2,506 1,710 (1,382) 1,020 Less: income tax expense (benefit) attributable to GSHD 2,164 223 562 (71) Net income (loss) attributable to GSHD $ 342 $ 1,487 $ (1,944) $ 1,091 Denominator: Weighted average shares of Class A common stock outstanding - basic 20,454 18,774 20,348 18,574 Effect of dilutive securities: Stock options (1) 791 1,593 — 1,677 Weighted average shares of Class A common stock outstanding - diluted 21,245 20,367 20,348 20,251 Earnings per share of Class A common stock - basic $ 0.02 $ 0.08 $ (0.10) $ 0.06 Earnings per share of Class A common stock - diluted $ 0.02 $ 0.07 $ (0.10) $ 0.05 (1) 2,388 and 3,179 stock options were excluded from the computation of diluted earnings per share of Class A common stock for the three and six months ended June 30, 2022, respectively, because the effect would have been anti-dilutive. 109 and 78 stock options were excluded from the computation of diluted earnings per share of Class A common stock for the three and six months ended June 30, 2021, respectively, because the effect would have been anti-dilutive.

Non-controlling interest

Non-controlling interest	6 Months Ended
	Jun. 30, 2022
Noncontrolling Interest [Abstract]
Non-controlling interest	Non-controlling interest GSHD is 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. 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 six months ended June 30, 2022, an aggregate of 115 thousand and 215 thousand LLC Units were redeemed by the non-controlling interest holders. Pursuant to the GF LLC Agreement, GSHD issued 115 thousand and 215 thousand shares of Class A common stock in connection with these redemptions and received 115 thousand and 215 thousand LLC Interests, increasing GSHD's ownership interest in GF. Simultaneously, and in connection with these redemptions, and 115 thousand and 215 thousand shares of Class B common stock were surrendered and cancelled. The following table summarizes the ownership interest in GF as of June 30, 2022 (in thousands) : June 30, 2022 LLC Units Ownership % Number of LLC Units held by GSHD 20,534 55.2% Number of LLC Units held by non-controlling interest holders 16,693 44.8% Number of LLC Units outstanding 37,227 100.0% 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 six months ended June 30, 2022 was 45.2%. The following table summarizes the effects of changes in ownership in GF on the equity of GSHD for the three and six months ended June 30, 2022 and 2021 as follows (in thousands) : Three months ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income attributable to Goosehead Insurance Inc. $ 342 $ 1,487 $ (1,944) $ 1,091 Transfers (to) from non-controlling interests: Decrease in additional paid-in capital as a result of the redemption of LLC interests (377) (1,280) (721) (1,529) Increase in additional paid-in capital as a result of activity under employee stock purchase plan 177 214 391 418 Total effect of changes in ownership interest on equity attributable to Goosehead Insurance Inc. $ 142 $ 421 $ (2,274) $ (20)

Equity-Based Compensation

Equity-Based Compensation	6 Months Ended
	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Equity-Based Compensation	Equity-Based CompensationStock option expense was $5.2 million and $11.0 million for the three and six months ended June 30, 2022. Stock option expense was $1.9 million and $3.8 million for the three and six months ended June 30, 2021.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2022
Segment Reporting [Abstract]
Segment Information	Segment InformationThe Company’s Chief Operating Decision Maker, its Chief Executive Officer (“CEO”), reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Management views the Company’s operations and manages its business as one operating segment. Accordingly, the Company determined that it operates in a single reportable segment. All of the Company’s long-lived assets are located in the United States. As a result, beginning with the first quarter of 2022, GSHD has modified the presentation of its segment financial information with retrospective application to all prior periods presented. Since the Company operates in one operating segment, all required financial segment information can be found in the condensed consolidated financial statements.

Litigation

Litigation	6 Months Ended
	Jun. 30, 2022
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)	6 Months Ended
	Jun. 30, 2022
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 June 30, 2022 and December 31, 2021, the condensed consolidated results of operations, stockholders' equity and statements of cash flows for the three and six months ended June 30, 2022 and 2021. 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. In accordance with Accounting Standards Codification 280 "Segment Reporting", and in the first quarter of 2022, the Company began reporting one operating segment due to changes in how the Company's chief operating decision maker assesses the Company's performance and allocates resources. See Note 12 "Segment Reporting".
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 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	Restricted CashThe Company holds premiums received from the insured, but not yet remitted to the insurance Carrier in a fiduciary capacity.
Recently Adopted Accounting Pronouncements	Recently adopted accounting pronouncements Simplifying the Accounting for Income Taxes (ASU 2019-12) : In 2019, the Financial Accounting Standards Board issued ASU 2019-12 to simplify the accounting for income taxes. The guidance primarily addresses how to (1) recognize a deferred tax liability after we transition to or from the equity method of accounting, (2) evaluate if a step-up in the tax basis of goodwill is related to a business combination or is a separate transaction, (3) recognize all of the effects of a change in tax law in the period of enactment, including adjusting the estimated annual tax rate, and (4) include the amount of tax based on income in the income tax provision and any incremental amount as a tax not based on income for hybrid tax regimes. We adopted the guidance in the first quarter of 2021. The adoption did not have a material impact on our condensed consolidated financial statements or related disclosures. Reference Rate Reform (ASU 2020-04) : In March 2020, the Financial Accounting Standards Board issued ASU 2020-04. Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying U.S. GAAP if certain criteria are met to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued. ASU 2020-04 is effective from March 12, 2020 through December 31, 2022. A substantial portion of our indebtedness bears interest at variable interest rates, primarily based on USD-LIBOR. The adoption of ASU 2020-04 did not have a material impact on our condensed consolidated financial statements. The standard will ease, if warranted, the administrative requirements for accounting for the future effects of the rate reform. Our debt agreement contains a provision to move to the Secured Overnight Financing Rate ("SOFR") if or when LIBOR is phased out.
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)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Schedule of Restrictions on Cash and Cash Equivalents	The following is a reconciliation of our cash and restricted cash balances as presented in the condensed consolidated statements of cash flows for the six months ended June 30, 2022 and 2021 (in thousands) : June 30, 2022 2021 Cash and cash equivalents $ 31,121 $ 34,975 Restricted cash 2,427 1,551 Cash and cash equivalents, and restricted cash $ 33,548 $ 36,526
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 statements of cash flows for the six months ended June 30, 2022 and 2021 (in thousands) : June 30, 2022 2021 Cash and cash equivalents $ 31,121 $ 34,975 Restricted cash 2,427 1,551 Cash and cash equivalents, and restricted cash $ 33,548 $ 36,526

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	The following table disaggregates revenue by source (in thousands) : Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Type of revenue stream: Commissions and agency fees Renewal Commissions $ 14,541 $ 10,310 $ 24,748 $ 18,067 New Business Commissions 6,730 5,944 12,097 10,560 Agency Fees 3,114 3,105 5,751 5,529 Contingent Commissions 1,880 1,694 3,678 4,431 Franchise revenues Renewal Royalty Fees 18,870 11,670 32,872 20,416 New Business Royalty Fees 4,821 3,680 9,113 6,837 Initial Franchise Fees 2,591 1,458 4,887 2,890 Other Franchise Revenues 145 33 505 131 Interest Income 330 279 649 540 Total Revenues $ 53,022 $ 38,173 $ 94,300 $ 69,401 Timing of revenue recognition: Transferred at a point in time $ 24,385 $ 19,359 $ 42,596 $ 34,156 Transferred over time 28,637 18,814 51,704 35,245 Total Revenues $ 53,022 $ 38,173 $ 94,300 $ 69,401
Schedule of Contract Balances	The following table provides information about receivables, cost to obtain, and contract liabilities from contracts with customers (in thousands) : June 30, 2022 December 31, 2021 Increase/(decrease) Cost to obtain franchise contracts (1) $ 2,627 $ 1,973 $ 654 Commissions and agency fees receivable, net (2) 9,161 12,056 (2,895) Receivable from franchisees (2) 31,895 29,673 2,222 Contract liabilities (2)(3) 52,372 48,608 3,764 (1) Cost to obtain franchise contracts is included in Other assets on the condensed consolidated balance sheets. (2) Includes both the current and long term portion of this balance. (3) Initial Franchise Fees to be recognized over the life of the contract. Significant changes in contract liabilities are as follows (in thousands) : Contract liabilities at December 31, 2021 $ 48,608 Revenue recognized during the period (4,887) New deferrals (1) 8,651 Contract liabilities at June 30, 2022 $ 52,372 (1) Initial Franchise Fees where the consideration is received from the franchisee for services which are to be transferred to the Franchisee over the expected life of the Franchise Agreement

Franchise Fees Receivable (Tabl

Franchise Fees Receivable (Tables)	6 Months Ended
	Jun. 30, 2022
Receivables [Abstract]
Schedule of Franchise Fees Receivable	The balance of Franchise fees receivable included in Receivable from franchisees consisted of the following (in thousands) : June 30, 2022 December 31, 2021 Franchise fees receivable (1) $ 43,133 $ 40,171 Less: Unamortized discount (1) (10,824) (9,518) Less: Allowance for uncollectible franchise fees (1) (427) (303) Net franchise fees receivable (1) $ 31,882 $ 30,350 (1) Includes both the current and long term portion of this balance Activity in the allowance for uncollectible Agency Fees was as follows (in thousands) : Balance at December 31, 2021 $ 489 Charges to bad debts 1,115 Write offs (1,052) Balance at June 30, 2022 $ 552 Balance at December 31, 2020 $ 468 Charges to bad debts 797 Write offs (708) Balance at June 30, 2021 $ 557
Schedule of Allowance for Uncollectible Franchise Fees	Activity in the allowance for uncollectible franchise fees was as follows (in thousands) : Balance at December 31, 2021 $ 303 Charges to bad debts 1,341 Write offs (1,217) Balance at June 30, 2022 $ 427 Balance at December 31, 2020 $ 149 Charges to bad debts 296 Write offs (305) Balance at June 30, 2021 $ 140

Allowance for Uncollectible A_2

Allowance for Uncollectible Agency Fees (Tables)	6 Months Ended
	Jun. 30, 2022
Receivables [Abstract]
Schedule of Allowance for Uncollectible Agency Fees	The balance of Franchise fees receivable included in Receivable from franchisees consisted of the following (in thousands) : June 30, 2022 December 31, 2021 Franchise fees receivable (1) $ 43,133 $ 40,171 Less: Unamortized discount (1) (10,824) (9,518) Less: Allowance for uncollectible franchise fees (1) (427) (303) Net franchise fees receivable (1) $ 31,882 $ 30,350 (1) Includes both the current and long term portion of this balance Activity in the allowance for uncollectible Agency Fees was as follows (in thousands) : Balance at December 31, 2021 $ 489 Charges to bad debts 1,115 Write offs (1,052) Balance at June 30, 2022 $ 552 Balance at December 31, 2020 $ 468 Charges to bad debts 797 Write offs (708) Balance at June 30, 2021 $ 557

Property and equipment (Tables)

Property and equipment (Tables)	6 Months Ended
	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consisted of the following (in thousands) : June 30, 2022 December 31, 2021 Furniture & fixtures $ 7,743 $ 7,283 Computer equipment 3,967 3,369 Network equipment 320 514 Phone system 326 937 Leasehold improvements 27,241 25,115 Total 39,597 37,218 Less accumulated depreciation (12,026) (12,285) Property and equipment, net $ 27,571 $ 24,933

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Schedule of Interest Rate Dependent of Leverage Ratio	The interest rate for each leverage ratio tier is as follows: Leverage Ratio Interest Rate < 1.50x LIBOR + 175 bps > 1.50x LIBOR + 200 bps > 2.50x LIBOR + 225 bps > 3.50x LIBOR + 250 bps
Schedule of Maturities of Note Payable	Maturities of the term note payable for the next five years are as follows ( in thousands ): Amount 2022 2,500 2023 6,875 2024 9,375 2025 10,000 2026 68,125 Total $ 96,875

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2022
Equity [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth the calculation of basic earnings per share ("EPS") based on net income attributable to GSHD for the three and six months ended June 30, 2022 and 2021, divided by the basic weighted average number of Class A common stock as of June 30, 2022 and 2021 (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. 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Income (loss) before taxes $ 4,553 $ 3,359 $ (2,432) $ 1,976 Less: income (loss) before taxes attributable to non-controlling interests 2,047 1,649 (1,050) 956 Income (loss) before taxes attributable to GSHD 2,506 1,710 (1,382) 1,020 Less: income tax expense (benefit) attributable to GSHD 2,164 223 562 (71) Net income (loss) attributable to GSHD $ 342 $ 1,487 $ (1,944) $ 1,091 Denominator: Weighted average shares of Class A common stock outstanding - basic 20,454 18,774 20,348 18,574 Effect of dilutive securities: Stock options (1) 791 1,593 — 1,677 Weighted average shares of Class A common stock outstanding - diluted 21,245 20,367 20,348 20,251 Earnings per share of Class A common stock - basic $ 0.02 $ 0.08 $ (0.10) $ 0.06 Earnings per share of Class A common stock - diluted $ 0.02 $ 0.07 $ (0.10) $ 0.05 (1) 2,388 and 3,179 stock options were excluded from the computation of diluted earnings per share of Class A common stock for the three and six months ended June 30, 2022, respectively, because the effect would have been anti-dilutive. 109 and 78 stock options were excluded from the computation of diluted earnings per share of Class A common stock for the three and six months ended June 30, 2021, respectively, because the effect would have been anti-dilutive.

Non-controlling interest (Table

Non-controlling interest (Tables)	6 Months Ended
	Jun. 30, 2022
Noncontrolling Interest [Abstract]
Schedule of Ownership Interests	The following table summarizes the ownership interest in GF as of June 30, 2022 (in thousands) : June 30, 2022 LLC Units Ownership % Number of LLC Units held by GSHD 20,534 55.2% Number of LLC Units held by non-controlling interest holders 16,693 44.8% Number of LLC Units outstanding 37,227 100.0%
Effects of Changes in Ownership Interests on Equity	The following table summarizes the effects of changes in ownership in GF on the equity of GSHD for the three and six months ended June 30, 2022 and 2021 as follows (in thousands) : Three months ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income attributable to Goosehead Insurance Inc. $ 342 $ 1,487 $ (1,944) $ 1,091 Transfers (to) from non-controlling interests: Decrease in additional paid-in capital as a result of the redemption of LLC interests (377) (1,280) (721) (1,529) Increase in additional paid-in capital as a result of activity under employee stock purchase plan 177 214 391 418 Total effect of changes in ownership interest on equity attributable to Goosehead Insurance Inc. $ 142 $ 421 $ (2,274) $ (20)

Organization - Narrative (Detai

Organization - Narrative (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2022 location franchise	Jun. 30, 2021 franchise location	Jun. 30, 2022 location franchise	Jun. 30, 2021 location franchise
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Corporate-owned locations (in locations) | location	15	11	15	11
Franchise locations sold (in franchises)	141	108
Operating franchise locations (in franchises)	1,344	1,072	1,344	1,072
Franchises purchased (in franchises)	0	0	0	0

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2022 segment	Jun. 30, 2022 USD ($) segment	Jun. 30, 2021 USD ($)
Accounting Policies [Abstract]
Number of operating segments | segment	1	1
Restricted cash | $		$ 2,427	$ 1,551

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Cash and cash equivalents	$ 31,121	$ 28,526	$ 34,975
Restricted cash	2,427		1,551
Cash and cash equivalents, and restricted cash	$ 33,548	$ 30,479	$ 36,526	$ 26,236

Revenue - Narrative (Details)

Revenue - Narrative (Details)	6 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Amortization period	10 years
Franchise license revenue period	10 years
Weighted average remaining amortization period for contract liabilities	8 years 1 month 6 days

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Revenues	$ 53,022	$ 38,173	$ 94,300	$ 69,401
Renewal Commissions
Disaggregation of Revenue [Line Items]
Revenues	14,541	10,310	24,748	18,067
New Business Commissions
Disaggregation of Revenue [Line Items]
Revenues	6,730	5,944	12,097	10,560
Agency Fees
Disaggregation of Revenue [Line Items]
Revenues	3,114	3,105	5,751	5,529
Contingent Commissions
Disaggregation of Revenue [Line Items]
Revenues	1,880	1,694	3,678	4,431
Renewal Royalty Fees
Disaggregation of Revenue [Line Items]
Revenues	18,870	11,670	32,872	20,416
New Business Royalty Fees
Disaggregation of Revenue [Line Items]
Revenues	4,821	3,680	9,113	6,837
Initial Franchise Fees
Disaggregation of Revenue [Line Items]
Revenues	2,591	1,458	4,887	2,890
Other Franchise Revenues
Disaggregation of Revenue [Line Items]
Revenues	145	33	505	131
Interest income
Disaggregation of Revenue [Line Items]
Revenues	330	279	649	540
Transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenues	24,385	19,359	42,596	34,156
Transferred over time
Disaggregation of Revenue [Line Items]
Revenues	$ 28,637	$ 18,814	$ 51,704	$ 35,245

Revenue - Contract Balances (De

Revenue - Contract Balances (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Cost to obtain franchise contracts	$ 2,627		$ 1,973
Increase (decrease) in contract with customer, asset	654
Commissions and agency fees receivable, net	9,161		12,056
Increase (decrease) in commissions and agency fees receivable, net	(2,895)
Receivables from franchisees	31,895		29,673
Increase (decrease) in receivables from franchisees	2,222
Contract liabilities	52,372		$ 48,608
Increase (decrease) in contract liability	3,764	$ 7,188
Contract Liability [Roll Forward]
Contract liabilities at December 31, 2021	48,608
Revenue recognized during the period	(4,887)
New deferrals	8,651
Contract liabilities at June 30, 2022	$ 52,372

Franchise Fees Receivable - Bal

Franchise Fees Receivable - Balance of Franchise Fees Receivable (Details) - Franchise Fees Receivable - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Franchise fees receivable	$ 43,133	$ 40,171
Less: Unamortized discount	(10,824)	(9,518)
Less: Allowance for uncollectible franchise fees	(427)	(303)	$ (140)	$ (149)
Net franchise fees receivable	$ 31,882	$ 30,350

Franchise Fees Receivable - Rol

Franchise Fees Receivable - Roll-Forward of Allowance (Details) - Franchise Fees Receivable - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 303	$ 149
Charges to bad debts	1,341	296
Write offs	(1,217)	(305)
Ending balance	$ 427	$ 140

Allowance for Uncollectible A_3

Allowance for Uncollectible Agency Fees - Roll-Forward of Allowance (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Charges to bad debts	$ 1,660	$ 646	$ 2,456	$ 1,093
Agency Fees
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance			489	468
Charges to bad debts			1,115	797
Write offs			(1,052)	(708)
Ending balance	$ 552	$ 557	$ 552	$ 557

Property and equipment (Details

Property and equipment (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 39,597		$ 37,218
Less accumulated depreciation	(12,026)		(12,285)
Property and equipment, net	27,571		24,933
Depreciation	2,900	$ 2,100
Furniture & fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	7,743		7,283
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,967		3,369
Network equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	320		514
Phone system
Property, Plant and Equipment [Line Items]
Property and equipment, gross	326		937
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 27,241		$ 25,115

Debt - Narrative (Details)

Debt - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($)	Jul. 21, 2021 USD ($)	Jul. 20, 2021 USD ($)
Line of Credit
Debt Instrument [Line Items]
Additional commitments		$ 25
Letter of credit	$ 0.2
Remaining borrowing availability	24.8
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing availability		50	$ 25
Revolver balance	$ 25
Notes Payable to Bank
Debt Instrument [Line Items]
Principal amount of debt			$ 80
Secured Debt
Debt Instrument [Line Items]
Principal amount of debt		$ 100
EBITDA ratio	4.5
Secured Debt | Debt Repayment, First Twelve Months
Debt Instrument [Line Items]
Periodic payment	$ 0.6
Secured Debt | Debt Repayment, Next 12 Months
Debt Instrument [Line Items]
Periodic payment	1.3
Secured Debt | Debt Repayment, Following 12 Months
Debt Instrument [Line Items]
Periodic payment	1.9
Secured Debt | Debt Repayment, Last 24 Months
Debt Instrument [Line Items]
Periodic payment	$ 2.5
Secured Debt | LIBOR
Debt Instrument [Line Items]
Interest Rate	2.50%

Debt - Leverage (Details)

Debt - Leverage (Details)	6 Months Ended
	Jun. 30, 2022
Less than 1.50
Debt Instrument [Line Items]
Leverage Ratio	1.50
Less than 1.50 | LIBOR
Debt Instrument [Line Items]
Interest Rate	1.75%
Greater than 1.50
Debt Instrument [Line Items]
Leverage Ratio	1.50
Greater than 1.50 | LIBOR
Debt Instrument [Line Items]
Interest Rate	2%
Greater than 2.50
Debt Instrument [Line Items]
Leverage Ratio	2.50
Greater than 2.50 | LIBOR
Debt Instrument [Line Items]
Interest Rate	2.25%
Greater than 3.50
Debt Instrument [Line Items]
Leverage Ratio	3.50
Greater than 3.50 | LIBOR
Debt Instrument [Line Items]
Interest Rate	2.50%

Debt - Schedule of Maturities o

Debt - Schedule of Maturities of Note Payable (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Debt Disclosure [Abstract]
2022	$ 2,500
2022	6,875
2023	9,375
2024	10,000
2025	68,125
Total	$ 96,875

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Income Tax Contingency [Line Items]
Taxes	$ 2,164,000	$ 223,000	$ 562,000	$ (71,000)
Effective income tax rate	48%	7%	(23.00%)	(4.00%)
Deferred income taxes, net	$ 131,164,000		$ 131,164,000		$ 125,676,000
Uncertain tax positions	0		$ 0
Tax Receivable Agreement
Income Tax Contingency [Line Items]
Percentage due to related parties			85%
Tax Receivable Agreement | Pre-IPO LLC
Income Tax Contingency [Line Items]
Percentage due to related parties			85%
Due to related parties	105,300,000		$ 105,300,000
Due to related parties, current	$ 0		$ 0
LLC Units
Income Tax Contingency [Line Items]
Redemption of LLC Units (in shares)	115,000		215,000
LLC Units | Pre-IPO LLC
Income Tax Contingency [Line Items]
Redemption of LLC Units (in shares)	114,767		215,457

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details)	Jun. 30, 2022 vote shares	Dec. 31, 2021 shares
Class A Common stock
Class of Stock [Line Items]
Common stock shares outstanding (in shares) | shares	20,534,000	20,198,000
Vote per share (in votes) | vote	1
Class B Common Stock
Class of Stock [Line Items]
Common stock shares outstanding (in shares) | shares	16,693,000	16,909,000
Vote per share (in votes) | vote	1

Stockholders' Equity - Basic an

Stockholders' Equity - Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Pro forma earnings per share:
Income (loss) before taxes	$ 4,553	$ 3,359	$ (2,432)	$ 1,976
Less: income (loss) before taxes attributable to non-controlling interests	2,047	1,649	(1,050)	956
Income (loss) before taxes attributable to GSHD	2,506	1,710	(1,382)	1,020
Less: income tax expense (benefit) attributable to GSHD	2,164	223	562	(71)
Net income (loss) attributable to GSHD	$ 342	$ 1,487	$ (1,944)	$ 1,091
Weighted average shares of Class A common stock outstanding - basic (in shares)	20,454	18,774	20,348	18,574
Effect of dilutive securities, stock options (in shares)	791	1,593	0	1,677
Weighted average shares of Class A common stock outstanding - diluted (in shares)	21,245	20,367	20,348	20,251
Earnings per share of Class A common stock - basic (in dollars per share)	$ 0.02	$ 0.08	$ (0.10)	$ 0.06
Earnings per share of Class A common stock - diluted (in dollars per share)	$ 0.02	$ 0.07	$ (0.10)	$ 0.05
Antidilutive securities excluded from computation of earnings per share (in shares)	2,388	109	3,179	78
Class A Common stock
Pro forma earnings per share:
Earnings per share of Class A common stock - basic (in dollars per share)	$ 0.02	$ 0.08	$ (0.10)	$ 0.06
Earnings per share of Class A common stock - diluted (in dollars per share)	$ 0.02	$ 0.07	$ (0.10)	$ 0.05

Non-controlling interest - Narr

Non-controlling interest - Narrative (Details) shares in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022 shares	Jun. 30, 2022 shares
Noncontrolling interest holders
Noncontrolling Interest [Line Items]
Ownership interest held by non-controlling interest holders	0.452	0.452
LLC Units
Noncontrolling Interest [Line Items]
Conversion ratio		1
Redemption of LLC Units (in shares)	115	215
LLC Units | Noncontrolling interest holders
Noncontrolling Interest [Line Items]
Redemption of LLC Units (in shares)	115	215
Class A Common stock
Noncontrolling Interest [Line Items]
Redemption of LLC Units (in shares)	115	215
Class B Common Stock
Noncontrolling Interest [Line Items]
Redemption of LLC Units (in shares)	115	215

Non-controlling interest - Owne

Non-controlling interest - Ownership interests (Details) shares in Thousands	6 Months Ended
	Jun. 30, 2022 shares
Noncontrolling Interest [Line Items]
Number of LLC units outstanding (in shares)	37,227
Noncontrolling interest, ownership percentage	100%
Goosehead Financial, LLC
Noncontrolling Interest [Line Items]
Ownership interest held by Goosehead Insurance, Inc.	55.20%
Noncontrolling interest holders
Noncontrolling Interest [Line Items]
Ownership interest held by non-controlling interest holders	44.80%
Parent
Noncontrolling Interest [Line Items]
Number of LLC units outstanding (in shares)	20,534
Non-controlling interest
Noncontrolling Interest [Line Items]
Number of LLC units outstanding (in shares)	16,693

Non-controlling interest - Effe

Non-controlling interest - Effect of changes in ownership interests on equity (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Noncontrolling Interest [Line Items]
Net income attributable to Goosehead Insurance Inc.	$ 342		$ 1,487		$ (1,944)	$ 1,091
Decrease in additional paid-in capital as a result of the redemption of LLC interests	0	$ 0	0	$ 0
Increase in additional paid-in capital as a result of activity under employee stock purchase plan	177	214	214	205
Parent
Noncontrolling Interest [Line Items]
Net income attributable to Goosehead Insurance Inc.	342		1,487		(1,944)	1,091
Decrease in additional paid-in capital as a result of the redemption of LLC interests	(377)	(344)	(1,280)	(249)	(721)	(1,529)
Increase in additional paid-in capital as a result of activity under employee stock purchase plan	177	$ 214	214	$ 205	391	418
Total effect of changes in ownership interest on equity attributable to Goosehead Insurance Inc.	$ 142		$ 421		$ (2,274)	$ (20)

Equity-Based Compensation - Nar

Equity-Based Compensation - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 5.2	$ 1.9	$ 11	$ 3.8

Segment Information - Narrative

Segment Information - Narrative (Details) - segment	3 Months Ended	6 Months Ended
	Mar. 31, 2022	Jun. 30, 2022
Segment Reporting [Abstract]
Number of operating segments	1	1