Goosehead Insurance, Inc.

Good day, everyone, and welcome to Goosehead Insurance third quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To participate, you will need to press star 1-1 on your telephone. You will then hear a message advising your hand is raised. To withdraw your question, simply press star 1-1 again. Please note that this conference is being recorded. Now it's my pleasure to turn the call over to Dan Farrell. Please go ahead.

Thank you and good afternoon. Before we begin our formal remarks, I need to remind everyone that part of our discussion today may include forward-looking statements which are based on expectations, estimates, and projections of management as of today. Forward-looking statements in our discussions are subject to various assumptions, risks, uncertainties, that are difficult to predict and which could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These statements are not guarantees of future performance and therefore undue reliance should not be placed on them. We refer all of you to our recent SEC filings for more detailed discussion of risks and uncertainties that could impact future operating results and financial condition of Goosehead. We disclaim any intention or obligation to update or revise any forward-looking statements except to the extent required by applicable law. I would also like to point out that during this call, we will discuss certain financial measures that are not prepared in accordance with GAAP. Management uses these non-GAAP financial measures when planning, monitoring, evaluating our performance. We consider these non-GAAP financial measures to be useful metrics for management and investors to facilitate operating performance comparisons period to period by including potential differences caused by variations in capital structure, tax position, depreciation, amortization, certain other items that we believe are not representative of our core business. For more information regarding the use of non-GAAP financial measures, including reconciliation of these measures to the most recent comparable GAAP financial measures, we refer you to today's earnings release. In addition, this call is being webcast. An archived version will be available shortly after the call ends on the investor relations portion of the company's website at goosehead.com. Now, I'd like to turn the call over to our president and CEO, Mark Miller.

Thanks, Dan. Good afternoon, everyone, and thank you for joining our Q3 2025 earnings call. We are pleased with the results this quarter as they reflect continued momentum and strong execution. Our sites remain squarely focused on our goal to become the largest distributor of personalized insurance in the U.S. in our founder's lifetime. It has now been slightly over three years since I joined Goosehead, and I've never been more excited about the direction we're headed. What originally drew me into this business were the strong fundamentals and market dynamics that create the opportunity for durable and sustainable growth. To hit a few of the most critical points, we distribute a product with almost completely inelastic demand. If you live somewhere or drive something, you must have insurance. We operate in an industry with over $530 billion of total written premium annually. We've made great progress towards industry leadership over the past several years, growing from just over $2 billion in premiums in 2022 to over $4 billion this year. Interestingly, we still represent less than 1% of total market share, so our runway for future growth is enormous. Our industry remains fragmented. No individual distributor has more than 20% market share, which provides us freedom of movement across every market in the country and allows us to accelerate share capture. Our choice model and national scale are highly differentiated. We've worked incredibly hard to build out a product portfolio of national brands and niche regional products that allow our agents to be successful in just about every market in the country. Clients demand choice, and we have built a platform that provides a superior shopping experience. The competitive set, specifically in the personal line space, has major gaps in meeting client needs. Single product platforms, like direct online distribution and captive agencies, can't meet the client's needs for choice. Subscale independent agencies generally lack the necessary service capabilities, product depth, and technology to deliver an exceptional client experience. This very favorable backdrop attracted me here, and each one of these points remains true today. There are no structural limitations to our growth, and we believe we're positioned better than anyone else for long-term industry leadership. During our second quarter earnings call, I laid out five key strategic initiatives. supporting accelerated expansion of our existing agencies, placing the right new franchise owners in the right geographies, expanding our corporate team to further support top decile agency growth, ramping new go-to-market motions through our enterprise sales and partnership teams, and developing new and maturing technologies. The first three key strategic initiatives relate directly to maximizing growth of the franchise channel, and we have made great progress here. For example, in Q3, our agency staffing program, which we call ASP, helped our franchise owners place 90 new producers into their agencies, a record for one quarter. We have identified the top markets to launch new franchises in, and we are aggressively pursuing that strategy, launching 34 new agencies across 13 different states during the quarter. We launched 10 corporate agents into franchises during the quarter, resulting in new business production equal to 77 average franchise producers. To further support corporate agents launching into the right geographies, we opened our newest corporate office in Nashville, Tennessee on October 1st and have identified the next several locations for 2026. Expanding the corporate office footprint creates amazing career opportunities for our corporate teammates and it seeds new geographies with top decile future franchise talent. Our newest go-to-market team, the enterprise sales team, which takes inbound leads from a diversified set of partners, continues to scale, growing over 100% versus Q3 last year. We've also made meaningful progress on our AI initiatives, implementing new tools into our service delivery function to improve the client experience, reduce complexity, and drive unit costs down. On our previous earnings call, we talked about several new partnerships that took the form of a Goosehead franchise. I'm excited to share another win this quarter. Goosehead has partnered with a top 20 mortgage originator and servicer, who upon launch immediately will be poised to become one of the largest agencies in the Goosehead system. We believe our industry knowledge, seamless user experience, and white glove service will deliver an unparalleled client experience. Just to frame the size of the partnership business, We have already signed or taken live on our platform partners that represent in total more than 1 million home loan service and 75,000 home closings annually. Our partners, who have a captive audience, a great reputation with their clients, and a specific need to solve client pain points, are the perfect place to insert the Goosehead shopping experience. Over the years, Goosehead has become known for its innovative business model and technology. We have spent hundreds of thousands of hours and millions of dollars on building a technology stack that widens and deepens our competitive moat. Going back to 2018, we were unsatisfied with the comparative rating tools available in the market, so we built our own. We call that technology Aviator, and it allows our agents to quote more efficiently. We built a client-facing quoting tool, our digital agent. that today provides lead flow to agents across the country and gives clients a real look at potential insurance options. We then deepened our integrations with a number of our carriers, developing quote-to-issue technology within Aviator that allows our agents to bind policies without ever leaving the GUSET ecosystem, speeding up time to close and reducing friction. Building this foundation has been critical for the next step in our evolution, direct-to-consumer technology. which will integrate our quote-to-issue technology into our existing client-facing digital agent. We believe the digital agent will revolutionize how personal lines insurance is distributed, and it will break through the human capital bottleneck. Over the next year, we plan to deploy this tool to our existing and new partnerships, leveraging their client relationships to provide a tailored insurance shopping experience that ultimately maximizes value creation across the entire distribution chain. For our carrier partners, delivering the highest quality client by utilizing precise client segmentation analysis and target marketing. For our distribution partners, increasing the lifetime value of their clients and solving pain points in their existing business. For our agents, increased productivity, allowing them to focus on marketing and cross-selling into our existing client base. For Goosehead, by driving high growth and high margin business at scale. and most importantly for our clients, providing a world-class insurance shopping experience that doesn't exist in the U.S. today. This incredible opportunity is about investing for the long term and remaining laser-focused on delivering shareholder value. Mark Jones, Jr. will give you more specifics on the timing and level of investment. We have an exciting road ahead of us at Goosehead as we enter into what appears to be a stable pricing cycle that we believe will allow our business to operate much more efficiently resulting in higher client retention, higher bind rates, higher package rates, higher contingent commissions, and most importantly, higher client satisfaction. As I turn this call over, I am pleased with our performance. This quarter demonstrates that we continue to gain momentum, remain focused on our clients, empower our teammates, and execute with excellence. We have a massive head start on our competition, and I'm confident in our team. I would like to sincerely thank the Goosehead team for their hard work. With that, I will hand the call over to Mark Jones, Jr., our CFO and COO.