Goosehead Insurance, Inc. plans to revise several years of financial statements after identifying accounting errors in commission costs and franchise fees, delaying its third-quarter regulatory filing.
A Form 8-K filed with the Securities and Exchange Commission on Monday said the company’s audit committee agreed with management’s conclusion on Nov. 6. The revisions cover audited annual statements for 2023, 2024 and 2025, along with related quarterly and year-to-date statements through periods ended March 31, June 30 and Sept. 30 in those years. They also cover interim periods ended March 31 and June 30, 2026; the June figures are year-to-date.
Goosehead expects to report one or more material weaknesses in internal control over financial reporting. It also expects to conclude that its disclosure controls were ineffective at the end of each affected period.
The company said a comment letter received during the SEC’s review of its annual filings prompted a reassessment of commissions paid to obtain customer contracts. Goosehead had recorded eligible commissions as employee compensation and benefits. It now plans to record those costs as assets and recognize them over the expected benefit period. The company preliminarily expects employee compensation expense to decline and operating income to rise by an amount equal to about 0.5% to 5.5% of employee compensation and benefits for 2025 and the interim periods ended March 31 and June 30, 2026.
The review also found that franchisee fees for technology services and participation in the company’s errors and omissions insurance program had been recorded as reductions to general and administrative expenses. Goosehead expects to report them as franchise revenue instead. The change would increase revenue and expenses by equal amounts, leaving operating income, net income and cash flow unchanged. The company estimates the increases at $11 million to $16 million for 2025 and $5.5 million to $8.5 million for the six months ended June 30, 2026.
In a separate preliminary-results release, Goosehead estimated third-quarter revenue at $108.8 million to $110.8 million. It said the range midpoint is about 17% higher than the year-earlier estimate midpoint; that earlier revenue range was $92.9 million to $94.9 million. The company put Core Revenue, a non-GAAP measure, at $94.7 million, up 13%. Its independent accounting firm has not reviewed or audited the preliminary figures.
The Form 10-Q for the quarter ended Sept. 30, 2026, was due Nov. 9. Goosehead plans to amend its 2025 annual report and first- and second-quarter 2026 reports after completing the restatement, then file the delayed Form 10-Q as soon as practicable.
