Operating cash flow remains robust, evidenced by an OCF/NI ratio of 4.68 in 2026Q1, though capital allocation is heavily skewed toward shareholder returns, including a $49.8M buyback in the same period.
| Cash from Operations | 99.14M | 91.76M | 71.54M | 50.76M | 36.03M | 35.44M | 24.64M | 21.24M | 10.28M | 13.54M | 4.4M |
| Operating CF Growth % | 172.22% | 28.25% | 40.95% | 40.87% | 1.66% | 43.83% | 16.02% | 106.73% | -24.12% | 207.64% | - |
| Operating CF / Revenue % | 25.9% | 25.12% | 22.75% | 19.43% | 17.21% | 23.42% | 21.06% | 27.41% | 17.08% | 31.71% | 13.98% |
| Net Income | 30.38M | 44.45M | 49.11M | 14.14M | 2.63M | 8.3M | 18.75M | 10.38M | -18.67M | 8.68M | 4.72M |
| Depreciation & Amortization | 11.52M | 11.27M | 10.96M | 9.47M | 7.11M | 5.12M | 3.57M | 2.15M | 2.52M | 876.05K | 488.33K |
| Stock-Based Compensation | 23.36M | 23.38M | 27.97M | 23.99M | 19.64M | 7.29M | 4.75M | 1.53M | 26.96M | 2.23M | 2.49M |
| Deferred Taxes | 9.33M | 5.89M | -3.75M | 1.52M | 2.23M | -2.52M | -306K | 294K | -30K | 0 | 0 |
| Other Non-Cash Items | 11.29M | 11.14M | 6.34M | 16.71M | 8.2M | 7.03M | 15.19M | 725K | 1.32M | 1.08M | 658.99K |
| Working Capital Changes | -6.2M | -4.37M | -19.09M | -15.07M | -3.77M | 10.23M | -17.31M | 6.17M | -1.83M | 2.91M | -1.47M |
| Cash from Investing | -27.37M | -23.54M | -12.42M | -19.18M | -12.57M | -15.38M | -10.33M | -4.08M | -2.18M | -6.13M | -696.39K |
| Capital Expenditures | -6.72M | -5.67M | -979K | -4.45M | -10.13M | -15.41M | -9.97M | -4.1M | -2.24M | -6.45M | -675.72K |
| Acquisitions | 0 | 0 | 0 | -6.89M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -117.63K | -41.57K |
| Sale/Maturity of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 42K | 0 | 0 |
| Other Investing | -20.64M | -17.87M | -11.44M | -7.83M | -2.44M | 32K | -358K | 19K | 64K | 316.38K | -20.68K |
| Cash from Financing | -115.25M | -88.25M | -45.2M | -17.92M | -23.55M | -15.83M | -3.33M | -20.91M | 5.59M | -6.24M | -965.23K |
| Dividends Paid | -200.6M | -145.79M | 0 | 0 | 0 | -60M | -44.7M | -18.74M | -80.06M | -25.52M | 0 |
| Share Repurchases | -131.55M | -81.72M | -63.18M | 0 | 0 | 0 | 0 | 0 | 0 | -25.52M | -28.96M |
| Stock Issued | 3.08M | 0 | 12.23M | 9.9M | 6.13M | 4.59M | 5.04M | 325K | 86.92M | 0 | 0 |
| Debt Issuance (Net) | -513K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | -1000K | -625K | 1000K | 1000K |
| Other Financing | 190.08M | -65.42M | -9.83M | -10.94M | -309K | -666K | -677K | 0 | -639K | -342.23K | -627K |
| Net Change in Cash | -43.48M | -20.04M | 13.93M | 13.66M | -92K | 4.24M | 10.98M | -3.75M | 13.69M | 1.17M | 2.74M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 37.94M | 57.97M | 44.05M | 30.39M | 30.48M | 26.24M | 15.26M | 19.01M | 4.95M | 3.78M | 1.04M |
| Cash at End | 29.09M | 37.94M | 57.97M | 44.05M | 30.39M | 30.48M | 26.24M | 15.26M | 18.64M | 4.95M | 3.78M |
| Free Cash Flow | 95.19M | 86.09M | 70.56M | 38.6M | 23.42M | 20.04M | 14.28M | 17.14M | 8.03M | 7.09M | 3.73M |
| FCF Growth % | 53.02% | 22% | 82.81% | 64.83% | 16.88% | 40.36% | -16.73% | 113.47% | 13.27% | 90.29% | - |
| FCF Margin % | 24.87% | 23.57% | 22.44% | 14.77% | 11.18% | 13.24% | 12.2% | 22.13% | 13.35% | 16.6% | 11.84% |
| FCF per Share | 2.6 | 2.26 | 1.84 | 1.53 | 1.08 | 0.96 | 0.78 | 1.06 | 0.59 | 0.2 | 0.11 |
Franchise concentration and regulatory volatility
According to recent SEC filings, Goosehead consistently generated positive operating cash flow over the last ten quarters, peaking at $28.9M in 2025Q2, which suggests that the company's core brokerage model effectively converts commission revenue into liquid cash despite the inherent volatility of the insurance underwriting cycle.
The consistent positive spread between operating cash flow and net income indicates that the company's cash generation is not merely an accounting artifact but a reflection of its high-margin franchise model. Investors should monitor whether this cash generation remains resilient if the current hardening market conditions begin to normalize or if carrier capacity constraints tighten further.
As reported in financial statements, the OCF/NI ratio frequently exceeds 3.0x, reaching a high of 6.65 in 2024Q1, which implies that reported net income significantly understates the actual cash-generating capacity of the business due to the non-cash nature of ASC 606 commission revenue recognition and other accruals.
This persistent divergence suggests that the company's earnings quality is heavily influenced by accounting estimates regarding future renewal streams. Analysts should interpret this gap as a sign that the company is effectively front-loading its revenue recognition while the actual cash collection occurs over the life of the policy, warranting caution regarding future cash flow predictability.
Based on Goosehead's reported figures, the company has utilized its cash reserves to fund significant share repurchases, including a $49.8M buyback in 2026Q1, demonstrating a clear management preference for returning capital to shareholders rather than retaining liquidity for potential market-driven contingencies or large-scale infrastructure investments.
The scale of these buybacks relative to quarterly net income suggests that management is confident in the long-term sustainability of its cash flows. However, investors should consider whether this aggressive capital return policy may limit the company's flexibility if the regulatory environment in key states like Texas or Florida necessitates a sudden increase in operational liquidity.
Analysis of the provided data reveals that while operating cash flows appear robust, the company's periodic large-scale cash outflows for dividends and buybacks, such as the $202.9M dividend payment in 2025Q3, may mask the underlying sensitivity of the business to sudden shifts in carrier commission structures.
These lumpy capital outflows warrant further investigation into the company's liquidity management, as they could potentially strain the balance sheet during periods of market stress. The lack of investment portfolio activity in the provided data suggests that the company may not be holding significant float, which differentiates its risk profile from traditional insurance carriers.
Quick answers to the most common questions about buying GSHD stock.
Goosehead Insurance, Inc (GSHD) generated $91.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Goosehead Insurance, Inc (GSHD) generated $86.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Goosehead Insurance, Inc (GSHD) spent $5.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Goosehead Insurance, Inc (GSHD) returned $145.8M to shareholders via cash dividends and spent $81.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.