Tommy McJoynt-Griffith's questions to Goosehead Insurance Inc (GSHD) leadership • Q2 2025
Question
Tommy McJoynt-Griffith of Keefe, Bruyette & Woods inquired about the potential magnitude of commission rate increases as business mix shifts and sought clarification on the scope of projected reductions in service costs.
Answer
CFO Mark Jones Jr. explained that while not providing a specific number, commission rates could recover to levels seen two years prior as business moves away from state-run plans. He clarified that the 'cost of service' reduction refers specifically to the service department's total expenses, driven by AI efficiencies, but noted overall margins might face pressure in Q3 from hiring before improving in Q4.