Goosehead Insurance (GSHD) 10-Q 9 Nov 23 2023 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2023	Oct. 31, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
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	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		24,449,883
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		13,415,165

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues:
Revenues	$ 71,030	$ 57,687	$ 198,262	$ 151,987
Operating Expenses:
Employee compensation and benefits	39,436	36,328	113,801	99,471
General and administrative expenses	14,831	13,456	48,019	39,358
Bad debts	797	2,306	3,352	4,762
Depreciation and amortization	2,352	1,809	6,817	5,043
Total operating expenses	57,416	53,899	171,989	148,634
Income from operations	13,614	3,788	26,273	3,353
Other Income (Expense):
Interest expense	(1,617)	(1,414)	(5,057)	(3,411)
Income (loss) before taxes	11,997	2,374	21,216	(58)
Tax expense (benefit)	724	(666)	2,944	(104)
Net income	11,273	3,040	18,272	46
Less: net income (loss) attributable to non-controlling interests	4,339	1,061	7,753	(18)
Net income attributable to Goosehead Insurance, Inc.	$ 6,934	$ 1,979	$ 10,519	$ 64
Earnings per share:
Basic (in dollars per share)	$ 0.29	$ 0.09	$ 0.44	$ 0
Diluted (in dollars per share)	$ 0.28	$ 0.09	$ 0.43	$ 0
Weighted average shares of Class A common stock outstanding
Basic (in shares)	24,124	20,892	23,674	20,531
Diluted (in shares)	24,891	21,569	24,274	21,430
Commissions and agency fees
Revenues:
Revenues	$ 31,980	$ 27,402	$ 88,637	$ 73,676
Franchise revenues
Revenues:
Revenues	38,729	29,922	108,490	77,299
Interest Income
Revenues:
Revenues	$ 321	$ 363	$ 1,135	$ 1,012

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current Assets:
Cash and cash equivalents	$ 35,203	$ 28,743
Restricted cash	1,858	1,644
Commissions and agency fees receivable, net	12,327	14,440
Receivable from franchisees, net	9,147	4,932
Prepaid expenses	9,445	4,334
Total current assets	67,980	54,093
Receivable from franchisees, net of current portion	12,411	23,835
Property and equipment, net of accumulated depreciation	31,707	35,347
Right-of-use asset	39,846	44,080
Intangible assets, net of accumulated amortization	14,785	4,487
Deferred income taxes, net	170,761	155,318
Other assets	3,967	4,193
Total assets	341,457	321,353
Current Liabilities:
Accounts payable and accrued expenses	14,779	15,958
Premiums payable	1,858	1,644
Lease liability	8,749	6,627
Contract liabilities	4,831	6,031
Note payable	8,750	6,875
Total current liabilities	38,967	37,135
Lease liability, net of current portion	59,687	64,947
Note payable, net of current portion	70,005	86,711
Contract liabilities, net of current portion	27,128	40,522
Liabilities under tax receivable agreement	139,909	125,662
Total liabilities	335,696	354,977
Additional paid in capital	96,752	70,866
Accumulated deficit	(50,546)	(60,570)
Total stockholders' equity	46,584	10,670
Non-controlling interests	(40,823)	(44,294)
Total equity	5,761	(33,624)
Total liabilities and equity	341,457	321,353
Class A Common Stock
Current Liabilities:
Common stock	244	228
Class B Common Stock
Current Liabilities:
Common stock	$ 134	$ 146

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2023	Dec. 31, 2022
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)	24,446	23,034
Common stock shares outstanding (in shares)	24,446	23,034
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)	13,415	14,471
Common stock shares outstanding (in shares)	13,415	14,471

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ 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, 2021					20,198	16,909
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 income	(5,383)			(2,257)				(2,257)	(3,126)
Exercise of stock options (in shares)					19
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
Activity under employee stock purchase plan	214			214			214
Redemption of LLC Units (in shares)					101	101
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	16,808
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	16,909
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 income	46
Activity under employee stock purchase plan				556
Redemption of LLC Units				(2,300)
Ending balance (in shares) at Sep. 30, 2022					21,202	16,201
Ending balance at Sep. 30, 2022	(45,665)			6,329	$ 210	$ 163	67,238	(61,282)	(51,994)
Beginning balance (in shares) at Mar. 31, 2022					20,321	16,808
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 income	2,389			342				342	2,047
Exercise of stock options (in shares)					94
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
Activity under employee stock purchase plan	177			177			177
Redemption of LLC Units (in shares)					115	115
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	16,693
Ending balance at Jun. 30, 2022	(58,747)			(3,977)	$ 203	$ 168	58,942	(63,290)	(54,770)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	3,040			1,979				1,979	1,061
Exercise of stock options (in shares)					171
Exercise of stock options	3,006			3,006	$ 2		3,004
Equity-based compensation	5,395			5,395			5,395
Activity under employee stock purchase plan (in shares)					5
Activity under employee stock purchase plan	165			165			165
Redemption of LLC Units (in shares)					492	492
Redemption of LLC Units	0			(1,579)	$ 5	$ (5)	(1,579)		1,579
Deferred tax adjustments related to Tax Receivable Agreement	1,476			1,311			1,311		165
Reallocation of Non-controlling interest	0			29				29	(29)
Ending balance (in shares) at Sep. 30, 2022					21,202	16,201
Ending balance at Sep. 30, 2022	(45,665)			6,329	$ 210	$ 163	67,238	(61,282)	(51,994)
Beginning balance (in shares) at Dec. 31, 2022		23,034	14,471		23,034	14,471
Beginning balance at Dec. 31, 2022	(33,624)			10,670	$ 228	$ 146	70,866	(60,570)	(44,294)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	(181)			(81)				(81)	(100)
Exercise of stock options (in shares)					17
Exercise of stock options	173			173			173
Equity-based compensation	6,620			6,620			6,620
Activity under employee stock purchase plan (in shares)					4
Activity under employee stock purchase plan	201			201			201
Redemption of LLC Units (in shares)					323	323
Redemption of LLC Units	0			(990)	$ 3	$ (3)	(990)		990
Deferred tax adjustments related to Tax Receivable Agreement	828			699			699		129
Reallocation of Non-controlling interest	0			(103)				(103)	103
Ending balance (in shares) at Mar. 31, 2023					23,379	14,147
Ending balance at Mar. 31, 2023	(25,984)			17,189	$ 231	$ 143	77,569	(60,754)	(43,173)
Beginning balance (in shares) at Dec. 31, 2022		23,034	14,471		23,034	14,471
Beginning balance at Dec. 31, 2022	(33,624)			10,670	$ 228	$ 146	70,866	(60,570)	(44,294)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	18,272
Activity under employee stock purchase plan				479
Redemption of LLC Units (in shares)		1,055	1,055
Redemption of LLC Units				(3,256)
Ending balance (in shares) at Sep. 30, 2023		24,446	13,415		24,446	13,415
Ending balance at Sep. 30, 2023	5,761			46,584	$ 244	$ 134	96,752	(50,546)	(40,823)
Beginning balance (in shares) at Mar. 31, 2023					23,379	14,147
Beginning balance at Mar. 31, 2023	(25,984)			17,189	$ 231	$ 143	77,569	(60,754)	(43,173)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	7,180			3,666				3,666	3,514
Distributions	(5,206)								(5,206)
Exercise of stock options (in shares)					167
Exercise of stock options	3,518			3,518	$ 2		3,516
Equity-based compensation	5,872			5,872			5,872
Activity under employee stock purchase plan (in shares)					2
Activity under employee stock purchase plan	144			144			144
Redemption of LLC Units (in shares)					352	352
Redemption of LLC Units	0			(1,112)	$ 4	$ (4)	(1,112)		1,112
Deferred tax adjustments related to Tax Receivable Agreement	1,027			870			870		157
Reallocation of Non-controlling interest	0			(477)				(477)	477
Ending balance (in shares) at Jun. 30, 2023					23,900	13,795
Ending balance at Jun. 30, 2023	(13,448)			29,670	$ 237	$ 139	86,859	(57,565)	(43,118)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	11,273			6,934				6,934	4,339
Distributions	(3,275)								(3,275)
Exercise of stock options (in shares)					164
Exercise of stock options	3,366			3,366	$ 2		3,364
Equity-based compensation	6,459			6,459			6,459
Activity under employee stock purchase plan (in shares)					2
Activity under employee stock purchase plan	135			135			135
Redemption of LLC Units (in shares)		380	380		380	380
Redemption of LLC Units	0			(1,154)	$ 4	$ (4)	(1,154)		1,154
Deferred tax adjustments related to Tax Receivable Agreement	1,252			1,090			1,090		162
Reallocation of Non-controlling interest	0			85				85	(85)
Ending balance (in shares) at Sep. 30, 2023		24,446	13,415		24,446	13,415
Ending balance at Sep. 30, 2023	$ 5,761			$ 46,584	$ 244	$ 134	$ 96,752	$ (50,546)	$ (40,823)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net income	$ 18,272	$ 46
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	6,986	5,212
Impairment expense	3,628	0
Bad debt expense	3,352	4,762
Equity-based compensation	18,951	16,356
Impacts of Tax Receivable Agreement	14,665	11,794
Deferred income taxes	(12,336)	(12,274)
Noncash lease activity	(31)	8,857
Changes in operating assets and liabilities:
Receivable from franchisees	5,470	(2,021)
Commissions and agency fees receivable	854	(878)
Prepaid expenses	(5,111)	(788)
Other assets	226	(646)
Accounts payable and accrued expenses	(2,964)	136
Contract liabilities	(14,594)	2,151
Premiums payable	(142)	310
Net cash provided by operating activities	37,227	33,017
Cash flows from investing activities:
Proceeds from notes receivable	34	32
Purchase of software	(4,645)	(2,094)
Cash consideration paid for asset acquisitions	(6,043)	0
Purchase of property and equipment	(3,955)	(14,771)
Net cash used for investing activities	(14,609)	(16,833)
Cash flows from financing activities:
Repayment of note payable	(15,000)	(3,125)
Proceeds from the issuance of Class A common stock	7,537	4,832
Member distributions and dividends	(8,481)	0
Net cash provided by (used for) financing activities	(15,944)	1,707
Net increase in cash and restricted cash	6,674	17,891
Cash and cash equivalents, and restricted cash, beginning of period	30,387	30,479
Cash and cash equivalents, and restricted cash, end of period	37,061	48,370
Supplemental disclosures of cash flow data:
Cash paid during the period for interest	4,849	3,242
Cash paid for income taxes	$ 608	$ 444

Organization

Organization	9 Months Ended
	Sep. 30, 2023
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 13 and 12 corporate-owned locations in operation at September 30, 2023 and 2022, respectively. Franchisees are provided access to Carrier Appointments, product training, technology infrastructure, client service centers and back office services. During the three months ended September 30, 2023 and 2022, the Company onboarded 30 and 144 franchise locations, respectively, and had 1,285 and 1,403 operating franchise locations as of September 30, 2023 and 2022, respectively. No franchises were purchased during the three and nine months ended September 30, 2023 and 2022. All intercompany accounts and transactions have been eliminated in consolidation.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2023
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, 2023 and December 31, 2022, the condensed consolidated results of operations, stockholders' equity and statements of cash flows for the three and nine months ended September 30, 2023 and 2022. 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 for the fiscal year ended December 31, 2022. The results of operations for the three and nine months ended September 30, 2023 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. Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. 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. Intangible Assets Intangible assets are stated at cost less accumulated amortization and reflect amounts paid for the Company’s web domain, computer software costs, and purchased books of business (customer accounts). The web domain is amortized over a useful life of fifteen years, computer software costs are amortized over a useful life of three years, and books of business (customer accounts) are amortized over a useful life of eight years. During the three and nine months ended September 30, 2023, the Company purchased books of business (customer accounts) totaling $0.0 million and $6.5 million, respectively. Asset Impairment The Company reviews all of its identifiable assets for impairment periodically and whenever events or changes in business circumstances indicate that the carrying value of the assets may not be recoverable. In reviewing identifiable assets, if the undiscounted future cash flows were less than the carrying amount of the respective assets, an indicator of impairment would exist, and further analysis would be required to determine whether or not a loss would need to be charged against current period earnings as a component of general and administrative expenses. Based on a review of intangible assets during the three months ended June 30, 2023, the Company identified a group of internally-developed software assets that had not been placed into service and would not be completed. As a result, the Company determined the assets had no fair value and recorded an impairment expense of $1.1 million related to the asset group. Based on a review of tangible assets during the three months ended June 30, 2023, the Company identified two office leases that will be subleased and completed a recoverability assessment for assets at those locations. Based on the results of the recoverability assessment, the Company determined that the undiscounted cash flows of the assets were below their carrying values. As a result, the Company compared the fair values of the assets to their carrying values and recorded an impairment expense of $1.4 million of property and equipment and $1.1 million of right-of-use asset for the amount the carrying values exceeded the fair values. The Company determined the fair values by estimating sublease cash flows based on market rates for similar properties and discounted them using the Company's internal borrowing rate. No additional impairment was identified during the three months ended September 30, 2023. 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 Carrier, in a fiduciary capacity. Premiums received but not yet remitted included in restricted cash were $1.9 million and $2.3 million as of September 30, 2023 and 2022, 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 nine months ended September 30, 2023 and 2022 (in thousands) : September 30, 2023 2022 Cash and cash equivalents $ 35,203 $ 46,107 Restricted cash 1,858 2,263 Cash and cash equivalents, and restricted cash $ 37,061 $ 48,370 Recently adopted accounting pronouncements 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. In December 2022, ASU 2022-06 extended the effective period through December 31, 2024. 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. On April 26, 2023, the Company entered into an Amendment No.1 to the Second Amended and Restated Credit Agreement executing the provision to move to SOFR from LIBOR. Under the allowable expedients, a modification of a debt contract that is only a replacement of the reference rate is accounted for as a non-substantial modification.

Revenue

Revenue	9 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Commissions and fees The Company earns new and renewal commissions paid by insurance carriers, royalty fees from new and renewal commissions earned by franchisees, and fees paid by clients for the identification and placement of insurance coverage. These commissions, fees and royalties are earned at a point in time upon the effective date of the insurance policy, as no performance obligation exists after coverage is bound and the unilateral enforceable right to terminate expires. The transaction price for the commissions and fees is set as the estimated amount to be received for the current policy, including the initial commission earned for the current policy term, adjusted and constrained for an estimate of changes to the commission that may arise due to (1) changes to the policy premium during the current policy term and/or (2) cancellation of the policy before the end of the current term. The Company defines the term of the policy as the contractual period the policy provides insurance coverage to the insured, which is typically 1 year. 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 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 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 amount of royalties to be received for the current policy, including the initial commission earned for the current policy term, adjusted and constrained for an estimate of changes to the commission that may arise due to (1) changes to the policy premium during the current policy term and/or (2) cancellation of the policy before the end of the current term. 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Type of revenue stream: Commissions and agency fees Renewal Commissions $ 19,036 $ 16,485 $ 53,395 $ 41,233 New Business Commissions 6,125 6,215 17,899 18,312 Agency Fees 2,008 2,740 6,642 8,491 Contingent Commissions 4,811 1,962 10,701 5,640 Franchise revenues Renewal Royalty Fees 30,040 21,574 80,344 54,446 New Business Royalty Fees 5,910 4,866 17,819 13,979 Initial Franchise Fees 2,430 3,056 8,780 7,943 Other Franchise Revenues 349 426 1,547 931 Interest Income 321 363 1,135 1,012 Total Revenues $ 71,030 $ 57,687 $ 198,262 $ 151,987 Timing of revenue recognition: Transferred at a point in time $ 27,169 $ 25,440 $ 77,936 $ 68,036 Transferred over time 43,861 32,247 120,326 83,951 Total Revenues $ 71,030 $ 57,687 $ 198,262 $ 151,987 Contract Balances The following table provides information about receivables, cost to obtain, and contract liabilities from contracts with customers (in thousands) : September 30, 2023 December 31, 2022 Increase/(decrease) Cost to obtain franchise contracts (1) $ 2,616 $ 3,255 $ (639) Commissions and agency fees receivable, net (2) 12,327 14,440 (2,113) Receivable from franchisees (2) 21,558 28,767 (7,209) Contract liabilities (2)(3) 31,959 46,553 (14,594) (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 September 30, 2023 was included in the contract liabilities balance as of December 31, 2022. The weighted average remaining amortization period for contract liabilities related to open franchises is 7.2 years. Significant changes in contract liabilities are as follows (in thousands) : Contract liabilities at December 31, 2022 $ 46,553 Revenue recognized during the period (8,780) New deferrals (1) 3,445 Write offs (2) (9,259) Contract liabilities at September 30, 2023 $ 31,959 (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. (2) Franchise Fees, net of recognized revenue, no longer deferred due to the termination of the Franchise Agreement.

Franchise Fees Receivable

Franchise Fees Receivable	9 Months Ended
	Sep. 30, 2023
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) : September 30, 2023 December 31, 2022 Franchise fees receivable (1) $ 19,861 $ 35,606 Less: Unamortized discount (1) (5,734) (9,896) Less: Allowance for uncollectible franchise fees (1) (285) (487) Net franchise fees receivable (1) $ 13,842 $ 25,223 (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, 2022 $ 487 Charges to bad debts 963 Write offs (1,165) Balance at September 30, 2023 $ 285 Balance at December 31, 2021 $ 303 Charges to bad debts 3,099 Write offs (2,840) Balance at September 30, 2022 $ 562

Allowance for Uncollectible Age

Allowance for Uncollectible Agency Fees	9 Months Ended
	Sep. 30, 2023
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, 2022 $ 450 Charges to bad debts 1,174 Write offs (1,004) Balance at September 30, 2023 $ 620 Balance at December 31, 2021 $ 489 Charges to bad debts 1,663 Write offs (1,658) Balance at September 30, 2022 $ 494

Property and equipment

Property and equipment	9 Months Ended
	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Property and equipment	Property and equipment Property and equipment consisted of the following (in thousands) : September 30, 2023 December 31, 2022 Furniture & fixtures $ 11,276 $ 9,772 Computer equipment 4,071 4,041 Network equipment 436 423 Phone system 326 326 Leasehold improvements 36,228 36,009 Total 52,337 50,571 Less accumulated depreciation (20,630) (15,224) Property and equipment, net $ 31,707 $ 35,347 Depreciation expense was $5.7 million and $4.5 million for nine months ended September 30, 2023 and 2022, respectively.

Debt

Debt	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Debt	1.50x SOFR + 200 bps > 2.50x SOFR + 225 bps > 3.50x SOFR + 250 bps Maturities of the term note payable for the next five years are as follows ( in thousands ): Amount 2023 $ 1,875 2024 9,375 2025 10,000 2026 58,125 2027 — Total $ 79,375 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 September 30, 2023, the Company's maximum allowable trailing twelve months debt-to-EBITDA ratio, as defined by the credit agreement, was 4x. 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, 2023, the Company was in compliance with these covenants. Because of both instruments’ variable interest rate, the note payable balance at September 30, 2023 and December 31, 2022, 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." id="sjs-B4">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 in order to obtain a more favorable interest rate on the outstanding debt. 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. On April 26, 2023, the Company entered into Amendment No.1 ("Amendment") of the Second Amended and Restated Credit Agreement, which provided that LIBOR should be replaced with SOFR. The $50.0 million revolving credit facility accrues interest on amounts drawn at an initial interest rate of LIBOR plus 250 basis points, then at an interest rate determined by the Company's leverage ratio for the preceding period. At September 30, 2023 the Company was accruing interest at SOFR plus 200 basis points. At September 30, 2023, the Company had nothing 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 $49.8 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 of $65.6 million on July 21, 2026. On May 31, 2023, the Company paid an additional $10.0 million toward the term note, reducing the final balloon payment to $55.6 million. 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 225 basis points, then at an interest rate based on the Company's leverage ratio for the preceding period. At September 30, 2023 the Company was accruing interest at SOFR plus 200 basis points. The interest rate for each leverage ratio tier is as follows: Leverage Ratio Interest Rate < 1.50x SOFR + 175 bps > 1.50x SOFR + 200 bps > 2.50x SOFR + 225 bps > 3.50x SOFR + 250 bps Maturities of the term note payable for the next five years are as follows ( in thousands ): Amount 2023 $ 1,875 2024 9,375 2025 10,000 2026 58,125 2027 — Total $ 79,375 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 September 30, 2023, the Company's maximum allowable trailing twelve months debt-to-EBITDA ratio, as defined by the credit agreement, was 4x. 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, 2023, the Company was in compliance with these covenants. Because of both instruments’ variable interest rate, the note payable balance at September 30, 2023 and December 31, 2022, 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	9 Months Ended
	Sep. 30, 2023
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 expense (benefit) from income taxes for the three and nine months ended September 30, 2023 was $0.7 million and $2.9 million compared to $(0.7) million and $(0.1) million for the three and nine months ended September 30, 2022. The effective tax rate was 6% and 14% for the three and nine months ended September 30, 2023 and (28)% and 179% for the three and nine months ended September 30, 2022. The increase in the effective tax rate for the three months ended September 30, 2023 compared to the three months ended September 30, 2022 was primarily due to an increase in pre-tax income between periods. The decrease in the effective tax rate for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022 was primarily due to an increase in pre-tax income between periods from net loss to net income and an increase in taxes from a tax benefit to tax expense. Deferred taxes Deferred tax assets at September 30, 2023 were $170.8 million compared to $155.3 million at December 31, 2022. 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 nine months ended September 30, 2023. 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, 2023, an aggregate of 380,001 and 1,055,458 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 380,001 and 1,055,458 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, 2023, the total amount of TRA Payments due to the Pre-IPO LLC Members under the tax receivable agreement was $140.3 million, of which $0.4 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 September 30, 2023.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity Class A Common Stock GSHD has a total of 24,446 thousand shares of its Class A common stock outstanding at September 30, 2023. 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 13,415 thousand shares of its Class B common stock outstanding at September 30, 2023. 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 nine months ended September 30, 2023 and 2022, divided by the basic weighted average number of Class A common stock as of September 30, 2023 and 2022 (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. Diluted EPS was computed using the treasury stock method for stock options. Shares of the Company’s Class B common stock do not share in the earnings or losses attributable to Goosehead Insurance, Inc. and are therefore not participating securities. As such, separate presentation of basic and diluted EPS of Class B common stock under the two-class method has not been presented. Shares of the Company’s Class B common stock are, however, considered potentially dilutive shares of Class A common stock because shares of Class B common stock, together with the related LLC Units, are exchangeable into shares of Class A common stock on a one-for-one basis. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Income (loss) before taxes $ 11,997 $ 2,374 $ 21,216 $ (58) Less: income (loss) before taxes attributable to non-controlling interests 4,339 1,061 7,753 (18) Income (loss) before taxes attributable to GSHD 7,658 1,313 13,463 (40) Less: income tax expense (benefit) attributable to GSHD 724 (666) 2,944 (104) Net income attributable to GSHD $ 6,934 $ 1,979 $ 10,519 $ 64 Denominator: Weighted average shares of Class A common stock outstanding - basic 24,124 20,892 23,674 20,531 Effect of dilutive securities: Stock options (1) 767 677 601 899 Weighted average shares of Class A common stock outstanding - diluted 24,891 21,569 24,274 21,430 Earnings per share of Class A common stock - basic $ 0.29 $ 0.09 $ 0.44 $ — Earnings per share of Class A common stock - diluted $ 0.28 $ 0.09 $ 0.43 $ — (1) 1,055 and 1,800 stock options were excluded from the computation of diluted earnings per share of Class A common stock for the three and nine months ended September 30, 2023 because the effect would have been anti-dilutive. 2,388 and 1,947 stock options were excluded from the computation of diluted earnings per share of Class A common stock for the three and nine months ended September 30, 2022 because the effect would have been anti-dilutive.

Non-controlling interest

Non-controlling interest	9 Months Ended
	Sep. 30, 2023
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. 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, 2023, GF made distributions of $8.7 million and $21.4 million, of which $3.3 million and $8.5 million was made to Pre-IPO LLC Members. The remaining $5.5 million and $12.9 million was made to GSHD and was 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, 2023, an aggregate of 380 thousand and 1,055 thousand LLC Units were redeemed by the non-controlling interest holders. Pursuant to the GF LLC Agreement, GSHD issued 380 thousand and 1,055 thousand shares of Class A common stock in connection with these redemptions and received 380 thousand and 1,055 thousand LLC Interests, increasing GSHD's ownership interest in GF. Simultaneously, and in connection with these redemptions, 380 thousand and 1,055 thousand shares of Class B common stock were surrendered and cancelled. The following table summarizes the ownership interest in GF as of September 30, 2023 (in thousands) : September 30, 2023 LLC Units Ownership % Number of LLC Units held by GSHD 24,446 64.6% Number of LLC Units held by non-controlling interest holders 13,415 35.4% Number of LLC Units outstanding 37,861 100.0% 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 percentages for the three and nine months ended September 30, 2023 were 36.1% and 37.1%, respectively. The following table summarizes the effects of changes in ownership in GF on the equity of GSHD for the three and nine months ended September 30, 2023 and 2022 as follows (in thousands) : Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net income attributable to Goosehead Insurance, Inc. $ 6,934 $ 1,979 $ 10,519 $ 64 Transfers (to) from non-controlling interests: Decrease in additional paid-in capital as a result of the redemption of LLC interests (1,154) (1,579) (3,256) (2,300) Increase in additional paid-in capital as a result of activity under employee stock purchase plan 135 165 479 556 Total effect of changes in ownership interest on equity attributable to Goosehead Insurance, Inc. $ 5,915 $ 565 $ 7,742 $ (1,680)

Equity-Based Compensation

Equity-Based Compensation	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Equity-Based Compensation	Equity-Based CompensationStock option expense was $6.5 million and $19.0 million for the three and nine months ended September 30, 2023. Stock option expense was $5.4 million and $16.4 million for the three and nine months ended September 30, 2022.

Litigation

Litigation	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Litigation	Litigation From time to time, GSHD may be involved in various legal proceedings, lawsuits and claims incidental to the conduct of the Company's business. The Company records accruals for legal contingencies to the extent that it has concluded that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. When a material loss contingency is reasonably possible but not probable, the Company does not record a liability, but instead discloses the nature and the amount of the claim, and an estimate of the loss or range of loss, if such an estimate can be made. In the opinion of the Company's management, the likely results of any ongoing legal matters are not expected, either individually or in the aggregate, to have a material adverse effect on the Company's financial position, results of operations or cash flows. On November 10, 2022, a verified stockholder class action complaint for declaratory relief, captioned Mickey Dollens v. Goosehead Insurance, Inc., C.A. No. 2022-1018-JTL, was filed in the Court of Chancery of the State of Delaware (the “Dollens Action”), alleging certain corporate governance documents adopted by the Company were invalid under Delaware law. On August 8, 2023, the parties entered into a proposed settlement providing for certain non-monetary benefits to the class ( i.e., revisions to the Company's Stockholder Agreement). A hearing is set for February 16, 2024 to, among other things, consider whether to grant final approval of the proposed settlement. Additionally, the plaintiffs intends to petition the Court for attorneys’ fees and litigation expenses. While there can be no assurance regarding the ultimate outcome of the petition, the Company believes a potential loss, if any, would not be material.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2023
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, 2023 and December 31, 2022, the condensed consolidated results of operations, stockholders' equity and statements of cash flows for the three and nine months ended September 30, 2023 and 2022. 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 for the fiscal year ended December 31, 2022.
Reclassification	Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements.
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.
Intangible Assets	Intangible AssetsIntangible assets are stated at cost less accumulated amortization and reflect amounts paid for the Company’s web domain, computer software costs, and purchased books of business (customer accounts). The web domain is amortized over a useful life of fifteen years, computer software costs are amortized over a useful life of three years, and books of business (customer accounts) are amortized over a useful life of eight years. During the three and nine months ended September 30, 2023, the Company purchased books of business (customer accounts) totaling $0.0 million and $6.5 million, respectively.
Asset Impairment	Asset Impairment The Company reviews all of its identifiable assets for impairment periodically and whenever events or changes in business circumstances indicate that the carrying value of the assets may not be recoverable. In reviewing identifiable assets, if the undiscounted future cash flows were less than the carrying amount of the respective assets, an indicator of impairment would exist, and further analysis would be required to determine whether or not a loss would need to be charged against current period earnings as a component of general and administrative expenses. Based on a review of intangible assets during the three months ended June 30, 2023, the Company identified a group of internally-developed software assets that had not been placed into service and would not be completed. As a result, the Company determined the assets had no fair value and recorded an impairment expense of $1.1 million related to the asset group. Based on a review of tangible assets during the three months ended June 30, 2023, the Company identified two office leases that will be subleased and completed a recoverability assessment for assets at those locations. Based on the results of the recoverability assessment, the Company determined that the undiscounted cash flows of the assets were below their carrying values. As a result, the Company compared the fair values of the assets to their carrying values and recorded an impairment expense of $1.4 million of property and equipment and $1.1 million of right-of-use asset for the amount the carrying values exceeded the fair values. The Company determined the fair values by estimating sublease cash flows based on market rates for similar properties and discounted them using the Company's internal borrowing rate. No additional impairment was identified during the three months ended September 30, 2023.
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 Carrier, in a fiduciary capacity.
Recently adopted accounting pronouncements	Recently adopted accounting pronouncements 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. In December 2022, ASU 2022-06 extended the effective period through December 31, 2024. 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. On April 26, 2023, the Company entered into an Amendment No.1 to the Second Amended and Restated Credit Agreement executing the provision to move to SOFR from LIBOR. Under the allowable expedients, a modification of a debt contract that is only a replacement of the reference rate is accounted for as a non-substantial modification.
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, 2023
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 nine months ended September 30, 2023 and 2022 (in thousands) : September 30, 2023 2022 Cash and cash equivalents $ 35,203 $ 46,107 Restricted cash 1,858 2,263 Cash and cash equivalents, and restricted cash $ 37,061 $ 48,370
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 nine months ended September 30, 2023 and 2022 (in thousands) : September 30, 2023 2022 Cash and cash equivalents $ 35,203 $ 46,107 Restricted cash 1,858 2,263 Cash and cash equivalents, and restricted cash $ 37,061 $ 48,370

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	The following table disaggregates revenue by source (in thousands) : Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Type of revenue stream: Commissions and agency fees Renewal Commissions $ 19,036 $ 16,485 $ 53,395 $ 41,233 New Business Commissions 6,125 6,215 17,899 18,312 Agency Fees 2,008 2,740 6,642 8,491 Contingent Commissions 4,811 1,962 10,701 5,640 Franchise revenues Renewal Royalty Fees 30,040 21,574 80,344 54,446 New Business Royalty Fees 5,910 4,866 17,819 13,979 Initial Franchise Fees 2,430 3,056 8,780 7,943 Other Franchise Revenues 349 426 1,547 931 Interest Income 321 363 1,135 1,012 Total Revenues $ 71,030 $ 57,687 $ 198,262 $ 151,987 Timing of revenue recognition: Transferred at a point in time $ 27,169 $ 25,440 $ 77,936 $ 68,036 Transferred over time 43,861 32,247 120,326 83,951 Total Revenues $ 71,030 $ 57,687 $ 198,262 $ 151,987
Schedule of Contract Balances	The following table provides information about receivables, cost to obtain, and contract liabilities from contracts with customers (in thousands) : September 30, 2023 December 31, 2022 Increase/(decrease) Cost to obtain franchise contracts (1) $ 2,616 $ 3,255 $ (639) Commissions and agency fees receivable, net (2) 12,327 14,440 (2,113) Receivable from franchisees (2) 21,558 28,767 (7,209) Contract liabilities (2)(3) 31,959 46,553 (14,594) (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, 2022 $ 46,553 Revenue recognized during the period (8,780) New deferrals (1) 3,445 Write offs (2) (9,259) Contract liabilities at September 30, 2023 $ 31,959 (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. (2) Franchise Fees, net of recognized revenue, no longer deferred due to the termination of the Franchise Agreement.

Franchise Fees Receivable (Tabl

Franchise Fees Receivable (Tables)	9 Months Ended
	Sep. 30, 2023
Receivables [Abstract]
Schedule of Franchise Fees Receivable	The balance of Franchise fees receivable included in Receivable from franchisees consisted of the following (in thousands) : September 30, 2023 December 31, 2022 Franchise fees receivable (1) $ 19,861 $ 35,606 Less: Unamortized discount (1) (5,734) (9,896) Less: Allowance for uncollectible franchise fees (1) (285) (487) Net franchise fees receivable (1) $ 13,842 $ 25,223 (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, 2022 $ 450 Charges to bad debts 1,174 Write offs (1,004) Balance at September 30, 2023 $ 620 Balance at December 31, 2021 $ 489 Charges to bad debts 1,663 Write offs (1,658) Balance at September 30, 2022 $ 494
Schedule of Allowance for Uncollectible Franchise Fees	Activity in the allowance for uncollectible franchise fees was as follows (in thousands) : Balance at December 31, 2022 $ 487 Charges to bad debts 963 Write offs (1,165) Balance at September 30, 2023 $ 285 Balance at December 31, 2021 $ 303 Charges to bad debts 3,099 Write offs (2,840) Balance at September 30, 2022 $ 562

Allowance for Uncollectible A_2

Allowance for Uncollectible Agency Fees (Tables)	9 Months Ended
	Sep. 30, 2023
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) : September 30, 2023 December 31, 2022 Franchise fees receivable (1) $ 19,861 $ 35,606 Less: Unamortized discount (1) (5,734) (9,896) Less: Allowance for uncollectible franchise fees (1) (285) (487) Net franchise fees receivable (1) $ 13,842 $ 25,223 (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, 2022 $ 450 Charges to bad debts 1,174 Write offs (1,004) Balance at September 30, 2023 $ 620 Balance at December 31, 2021 $ 489 Charges to bad debts 1,663 Write offs (1,658) Balance at September 30, 2022 $ 494

Property and equipment (Tables)

Property and equipment (Tables)	9 Months Ended
	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consisted of the following (in thousands) : September 30, 2023 December 31, 2022 Furniture & fixtures $ 11,276 $ 9,772 Computer equipment 4,071 4,041 Network equipment 436 423 Phone system 326 326 Leasehold improvements 36,228 36,009 Total 52,337 50,571 Less accumulated depreciation (20,630) (15,224) Property and equipment, net $ 31,707 $ 35,347

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2023
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 SOFR + 175 bps > 1.50x SOFR + 200 bps > 2.50x SOFR + 225 bps > 3.50x SOFR + 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 2023 $ 1,875 2024 9,375 2025 10,000 2026 58,125 2027 — Total $ 79,375

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2023
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 nine months ended September 30, 2023 and 2022, divided by the basic weighted average number of Class A common stock as of September 30, 2023 and 2022 (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. Diluted EPS was computed using the treasury stock method for stock options. Shares of the Company’s Class B common stock do not share in the earnings or losses attributable to Goosehead Insurance, Inc. and are therefore not participating securities. As such, separate presentation of basic and diluted EPS of Class B common stock under the two-class method has not been presented. Shares of the Company’s Class B common stock are, however, considered potentially dilutive shares of Class A common stock because shares of Class B common stock, together with the related LLC Units, are exchangeable into shares of Class A common stock on a one-for-one basis. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Income (loss) before taxes $ 11,997 $ 2,374 $ 21,216 $ (58) Less: income (loss) before taxes attributable to non-controlling interests 4,339 1,061 7,753 (18) Income (loss) before taxes attributable to GSHD 7,658 1,313 13,463 (40) Less: income tax expense (benefit) attributable to GSHD 724 (666) 2,944 (104) Net income attributable to GSHD $ 6,934 $ 1,979 $ 10,519 $ 64 Denominator: Weighted average shares of Class A common stock outstanding - basic 24,124 20,892 23,674 20,531 Effect of dilutive securities: Stock options (1) 767 677 601 899 Weighted average shares of Class A common stock outstanding - diluted 24,891 21,569 24,274 21,430 Earnings per share of Class A common stock - basic $ 0.29 $ 0.09 $ 0.44 $ — Earnings per share of Class A common stock - diluted $ 0.28 $ 0.09 $ 0.43 $ — (1) 1,055 and 1,800 stock options were excluded from the computation of diluted earnings per share of Class A common stock for the three and nine months ended September 30, 2023 because the effect would have been anti-dilutive. 2,388 and 1,947 stock options were excluded from the computation of diluted earnings per share of Class A common stock for the three and nine months ended September 30, 2022 because the effect would have been anti-dilutive.

Non-controlling interest (Table

Non-controlling interest (Tables)	9 Months Ended
	Sep. 30, 2023
Noncontrolling Interest [Abstract]
Schedule of Ownership Interests	The following table summarizes the ownership interest in GF as of September 30, 2023 (in thousands) : September 30, 2023 LLC Units Ownership % Number of LLC Units held by GSHD 24,446 64.6% Number of LLC Units held by non-controlling interest holders 13,415 35.4% Number of LLC Units outstanding 37,861 100.0%
Schedule of 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 nine months ended September 30, 2023 and 2022 as follows (in thousands) : Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net income attributable to Goosehead Insurance, Inc. $ 6,934 $ 1,979 $ 10,519 $ 64 Transfers (to) from non-controlling interests: Decrease in additional paid-in capital as a result of the redemption of LLC interests (1,154) (1,579) (3,256) (2,300) Increase in additional paid-in capital as a result of activity under employee stock purchase plan 135 165 479 556 Total effect of changes in ownership interest on equity attributable to Goosehead Insurance, Inc. $ 5,915 $ 565 $ 7,742 $ (1,680)

Organization - Narrative (Detai

Organization - Narrative (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2023 franchise location	Sep. 30, 2022 franchise location	Sep. 30, 2023 franchise location	Sep. 30, 2022 franchise location
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Corporate-owned locations (in locations) | location	13	12	13	12
Franchise locations sold (in franchises)	30	144
Operating franchise locations (in franchises)	1,285	1,403	1,285	1,403
Franchises purchased (in franchises)	0	0	0	0

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($)	Jun. 30, 2023 USD ($) office_lease	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)
Finite-Lived Intangible Assets [Line Items]
Amortized over useful life	8 years		8 years
Impairment expense			$ 3,628,000	$ 0
Number of office locations | office_lease		2
Impairment of property and equipment		$ 1,400,000
Impairment of right-of-use-asset		1,100,000
Impairment of tangible assets	$ 0
Restricted cash	$ 1,858,000		$ 1,858,000	$ 2,263,000
Web Domain
Finite-Lived Intangible Assets [Line Items]
Amortized over useful life	15 years		15 years
Computer Software Costs
Finite-Lived Intangible Assets [Line Items]
Amortized over useful life	3 years		3 years
Book of Business
Finite-Lived Intangible Assets [Line Items]
Company purchased	$ 0		$ 6,500,000
Internally Developed Software
Finite-Lived Intangible Assets [Line Items]
Impairment expense		$ 1,100,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Cash and cash equivalents	$ 35,203	$ 28,743	$ 46,107
Restricted cash	1,858		2,263
Cash and cash equivalents, and restricted cash	$ 37,061	$ 30,387	$ 48,370	$ 30,479

Revenue - Narrative (Details)

Revenue - Narrative (Details)	9 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Insurance policy period	1 year
Amortization period	10 years
Franchise license revenue period	10 years
Weighted average remaining amortization period for contract liabilities	7 years 2 months 12 days

Revenue - Schedule of Disaggreg

Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 71,030	$ 57,687	$ 198,262	$ 151,987
Renewal Commissions
Disaggregation of Revenue [Line Items]
Revenues	19,036	16,485	53,395	41,233
New Business Commissions
Disaggregation of Revenue [Line Items]
Revenues	6,125	6,215	17,899	18,312
Agency Fees
Disaggregation of Revenue [Line Items]
Revenues	2,008	2,740	6,642	8,491
Contingent Commissions
Disaggregation of Revenue [Line Items]
Revenues	4,811	1,962	10,701	5,640
Renewal Royalty Fees
Disaggregation of Revenue [Line Items]
Revenues	30,040	21,574	80,344	54,446
New Business Royalty Fees
Disaggregation of Revenue [Line Items]
Revenues	5,910	4,866	17,819	13,979
Initial Franchise Fees
Disaggregation of Revenue [Line Items]
Revenues	2,430	3,056	8,780	7,943
Other Franchise Revenues
Disaggregation of Revenue [Line Items]
Revenues	349	426	1,547	931
Interest Income
Disaggregation of Revenue [Line Items]
Revenues	321	363	1,135	1,012
Transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenues	27,169	25,440	77,936	68,036
Transferred over time
Disaggregation of Revenue [Line Items]
Revenues	$ 43,861	$ 32,247	$ 120,326	$ 83,951

Revenue - Schedule of Contract

Revenue - Schedule of Contract Balances (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Cost to obtain franchise contracts	$ 2,616		$ 3,255
Increase (decrease) in cost to obtain franchise contracts	(639)
Commissions and agency fees receivable, net	12,327		14,440
Increase (decrease) in commissions and agency fees receivable, net	(2,113)
Receivables from franchisees	21,558		28,767
Increase (decrease) in receivables from franchisees	(7,209)
Contract liabilities	31,959		$ 46,553
Increase (decrease) in contract liability	(14,594)	$ 2,151
Contract Liability [Roll Forward]
Contract liabilities at December 31, 2022	46,553
Revenue recognized during the period	(8,780)
New deferrals	3,445
Write offs	(9,259)
Contract liabilities at September 30, 2023	$ 31,959

Franchise Fees Receivable - Sch

Franchise Fees Receivable - Schedule of Franchise Fees Receivable (Details) - Franchise Fees Receivable - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Franchise fees receivable	$ 19,861	$ 35,606
Less: Unamortized discount	(5,734)	(9,896)
Less: Allowance for uncollectible franchise fees	(285)	(487)	$ (562)	$ (303)
Net franchise fees receivable	$ 13,842	$ 25,223

Franchise Fees Receivable - S_2

Franchise Fees Receivable - Schedule of Allowance for Uncollectible Franchise Fees (Details) - Franchise Fees Receivable - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 487	$ 303
Charges to bad debts	963	3,099
Write offs	(1,165)	(2,840)
Ending balance	$ 285	$ 562

Allowance for Uncollectible A_3

Allowance for Uncollectible Agency Fees - Schedule of Allowance for Uncollectible Agency Fees (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Charges to bad debts	$ 797	$ 2,306	$ 3,352	$ 4,762
Agency Fees
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance			450	489
Charges to bad debts			1,174	1,663
Write offs			(1,004)	(1,658)
Ending balance	$ 620	$ 494	$ 620	$ 494

Property and equipment - Schedu

Property and equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Total	$ 52,337		$ 50,571
Less accumulated depreciation	(20,630)		(15,224)
Property and equipment, net	31,707		35,347
Depreciation	5,700	$ 4,500
Furniture & fixtures
Property, Plant and Equipment [Line Items]
Total	11,276		9,772
Computer equipment
Property, Plant and Equipment [Line Items]
Total	4,071		4,041
Network equipment
Property, Plant and Equipment [Line Items]
Total	436		423
Phone system
Property, Plant and Equipment [Line Items]
Total	326		326
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total	$ 36,228		$ 36,009

Debt - Narrative (Details)

Debt - Narrative (Details) $ in Millions		9 Months Ended
	May 31, 2023 USD ($)	Sep. 30, 2023 USD ($)	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		$ 49.8
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing availability			50	$ 25
Interest Rate		2.50%
Revolver balance		$ 0
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
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 | Debt Repayment, Balloon Payment
Debt Instrument [Line Items]
Periodic payment	$ 55.6	$ 65.6
Payment made against final balloon payment	$ 10
Secured Debt | LIBOR
Debt Instrument [Line Items]
Interest Rate		2.25%

Debt - Schedule of Interest Rat

Debt - Schedule of Interest Rate Dependent of Leverage Ratio (Details)	9 Months Ended
	Sep. 30, 2023
Less than 1.50
Debt Instrument [Line Items]
Leverage Ratio	1.50
Less than 1.50 | SOFR
Debt Instrument [Line Items]
Interest Rate	1.75%
Greater than 1.50
Debt Instrument [Line Items]
Leverage Ratio	1.50
Greater than 1.50 | SOFR
Debt Instrument [Line Items]
Interest Rate	2%
Greater than 2.50
Debt Instrument [Line Items]
Leverage Ratio	2.50
Greater than 2.50 | SOFR
Debt Instrument [Line Items]
Interest Rate	2.25%
Greater than 3.50
Debt Instrument [Line Items]
Leverage Ratio	3.50
Greater than 3.50 | SOFR
Debt Instrument [Line Items]
Interest Rate	2.50%

Debt - Schedule of Maturities o

Debt - Schedule of Maturities of Note Payable (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Debt Disclosure [Abstract]
2023	$ 1,875
2024	9,375
2025	10,000
2026	58,125
2027	0
Total	$ 79,375

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Income Tax Contingency [Line Items]
Tax expense (benefit)	$ 724,000	$ (666,000)	$ 2,944,000	$ (104,000)
Effective income tax rate	6%	(28.00%)	14%	179%
Deferred income taxes, net	$ 170,761,000		$ 170,761,000		$ 155,318,000
Uncertain tax positions	$ 0		$ 0
LLC Units
Income Tax Contingency [Line Items]
Redemption of LLC Units (in shares)	380,000		1,055,000
Pre-IPO LLC
Income Tax Contingency [Line Items]
Liabilities under the tax receivable agreement	$ 140,300,000		$ 140,300,000
Liabilities under the tax receivable agreement, current	$ 400,000		$ 400,000
Pre-IPO LLC | LLC Units
Income Tax Contingency [Line Items]
Redemption of LLC Units (in shares)	380,001		1,055,458
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%

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) shares in Thousands	Sep. 30, 2023 vote shares	Dec. 31, 2022 shares
Class of Stock [Line Items]
Conversion ratio, Class B shares and related units	1
Class A Common Stock
Class of Stock [Line Items]
Common stock shares outstanding (in shares) | shares	24,446	23,034
Vote per share (in votes) | vote	1
Class B Common Stock
Class of Stock [Line Items]
Common stock shares outstanding (in shares) | shares	13,415	14,471
Vote per share (in votes) | vote	1

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Numerator:
Income (loss) before taxes	$ 11,997	$ 2,374	$ 21,216	$ (58)
Less: income (loss) before taxes attributable to non-controlling interests	4,339	1,061	7,753	(18)
Income (loss) before taxes attributable to GSHD	7,658	1,313	13,463	(40)
Less: income tax expense (benefit) attributable to GSHD	724	(666)	2,944	(104)
Net income attributable to GSHD	$ 6,934	$ 1,979	$ 10,519	$ 64
Weighted average shares of Class A common stock outstanding - basic (in shares)	24,124	20,892	23,674	20,531
Effect of dilutive securities, stock options (in shares)	767	677	601	899
Weighted average shares of Class A common stock outstanding - diluted (in shares)	24,891	21,569	24,274	21,430
Earnings per share of Class A common stock - basic (in dollars per share)	$ 0.29	$ 0.09	$ 0.44	$ 0
Earnings per share of Class A common stock - diluted (in dollars per share)	$ 0.28	$ 0.09	$ 0.43	$ 0
Antidilutive securities excluded from computation of earnings per share (in shares)	1,055	2,388	1,800	1,947
Class A Common Stock
Numerator:
Earnings per share of Class A common stock - basic (in dollars per share)	$ 0.29	$ 0.09	$ 0.44	$ 0
Earnings per share of Class A common stock - diluted (in dollars per share)	$ 0.28	$ 0.09	$ 0.43	$ 0

Non-controlling interest - Narr

Non-controlling interest - Narrative (Details) shares in Thousands, $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2023 USD ($) shares	Sep. 30, 2023 USD ($) shares
Noncontrolling Interest [Line Items]
Distributions | $	$ 5.5	$ 12.9
Pre-IPO LLC
Noncontrolling Interest [Line Items]
Distributions | $	3.3	8.5
Goosehead Financial, LLC
Noncontrolling Interest [Line Items]
Distributions | $	$ 8.7	$ 21.4
Noncontrolling interest holders
Noncontrolling Interest [Line Items]
Ownership interest held by non-controlling interest holders	0.361	0.371
LLC Units
Noncontrolling Interest [Line Items]
Conversion ratio		1
Redemption of LLC Units (in shares)	380	1,055
LLC Units | Noncontrolling interest holders
Noncontrolling Interest [Line Items]
Redemption of LLC Units (in shares)	380	1,055
Class A Common Stock
Noncontrolling Interest [Line Items]
Redemption of LLC Units (in shares)	380	1,055
Class B Common Stock
Noncontrolling Interest [Line Items]
Redemption of LLC Units (in shares)	380	1,055

Non-controlling interest - Sche

Non-controlling interest - Schedule of Ownership interests (Details) shares in Thousands	9 Months Ended
	Sep. 30, 2023 shares
Noncontrolling Interest [Line Items]
Number of LLC units outstanding (in shares)	37,861
Noncontrolling interest, ownership percentage	100%
Goosehead Financial, LLC
Noncontrolling Interest [Line Items]
Ownership interest held by Goosehead Insurance, Inc.	64.60%
Noncontrolling interest holders
Noncontrolling Interest [Line Items]
Ownership interest held by non-controlling interest holders	35.40%
Parent
Noncontrolling Interest [Line Items]
Number of LLC units outstanding (in shares)	24,446
Non-controlling interest
Noncontrolling Interest [Line Items]
Number of LLC units outstanding (in shares)	13,415

Non-controlling interest - Sc_2

Non-controlling interest - Schedule of Effect of changes in ownership interests on equity (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Noncontrolling Interest [Line Items]
Net income attributable to Goosehead Insurance, Inc.	$ 6,934			$ 1,979			$ 10,519	$ 64
Decrease in additional paid-in capital as a result of the redemption of LLC interests	0	$ 0	$ 0	0	$ 0	$ 0
Increase in additional paid-in capital as a result of activity under employee stock purchase plan	135	144	201	165	177	214
Parent
Noncontrolling Interest [Line Items]
Net income attributable to Goosehead Insurance, Inc.	6,934			1,979			10,519	64
Decrease in additional paid-in capital as a result of the redemption of LLC interests	(1,154)	(1,112)	(990)	(1,579)	(377)	(344)	(3,256)	(2,300)
Increase in additional paid-in capital as a result of activity under employee stock purchase plan	135	$ 144	$ 201	165	$ 177	$ 214	479	556
Total effect of changes in ownership interest on equity attributable to Goosehead Insurance, Inc.	$ 5,915			$ 565			$ 7,742	$ (1,680)

Equity-Based Compensation - Nar

Equity-Based Compensation - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 6.5	$ 5.4	$ 19	$ 16.4