Goosehead Insurance, Inc. (NASDAQ: GSHD) filed a Current Report on Form 8-K on November 6, 2026, announcing that its Audit Committee has determined that previously issued financial statements for the fiscal years ended December 31, 2025, 2024, and 2023, as well as quarterly reports for 2023, 2024, and 2025, should no longer be relied upon and must be restated.
The company identified two specific departures from Generally Accepted Accounting Principles (GAAP) during a review prompted by a comment letter from the U.S. Securities and Exchange Commission (SEC). First, qualifying commissions paid to obtain customer contracts were historically expensed within employee compensation and benefits rather than being deferred and amortized. Second, certain fees charged to franchisees for technology and Errors & Omissions (E&O) insurance were recorded as a reduction of general and administrative expenses rather than recognized as franchise revenues.
Goosehead stated that the restatement is not expected to impact cash flows, operating income, or net income for the affected periods. However, it will result in a reclassification that increases employee compensation and benefits and franchise revenues by equal amounts. The company preliminarily estimates that employee compensation and benefits will decrease and income from operations will increase by approximately 0.5% to 5.5% of the prior expense for the full year 2025 and the interim periods ending June 30, 2026, and March 31, 2026. Additionally, total revenue and general and administrative expenses are expected to increase by equivalent amounts ranging from approximately $11 million to $16 million for the year ended December 31, 2025, and $5.5 million to $8.5 million for the six months ended June 30, 2026.
As a result of the restatement process, Goosehead does not expect to file its Quarterly Report on Form 10-Q for the period ended September 30, 2026, by the prescribed due date of November 9, 2026. The company intends to file the Q3 2026 report as soon as practicable.
In conjunction with the filing, the company issued preliminary results for the third quarter of 2026. Total revenues are estimated to be between $108.8 million and $110.8 million, representing an increase of approximately 17% at the mid-point of the range compared to the corresponding period in 2025. Core Revenue, a non-GAAP measure, was $94.7 million, a 13% increase from the prior year. Total written premiums increased 11% to $1.31 billion, and policies in force grew 14% to approximately 2.1 million. The company reaffirmed its full year 2026 guidance, expecting total revenues to grow organically between 12% and 19% and total written premiums to grow between 12% and 20%.
