Goosehead Insurance, Inc. — financial distress indicators
Financial-health summary
Goosehead Insurance, Inc.'s reported numbers place it in the 'Watch' financial-health band (distress score 35/100). The main indicators are negative book equity and equity eroded by >20% in a year. In its favour: operating cash flow is positive over the latest 12 months.
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Equity is zero or negative.
A financial institution with no equity cushion is technically insolvent; regulators intervene before this point.
Book equity changed -318% YoY.
Fast equity erosion (losses, unrealised bond losses, write-downs) was the signature of the 2023 U.S. regional-bank failures.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Operating cash flow is positive over the latest 12 months.
📰 Recent news scan
- Goosehead Insurance Stock Is Down 44% In A Year, Is It A Buy Under New Leadership?Yahoo Finance · 2026-09-24
- Goosehead Insurance Director Buys $100K oif Shares. What Does This Signal to Investors?Yahoo Finance · 2026-08-06
- Company Insider Scoops Up 1,600 Shares of Insurance StockYahoo Finance · 2026-08-06
- Goosehead Insurance (GSHD) Is Up 8.2% After Strong Q2 Results And CEO Succession PlanYahoo Finance · 2026-07-26
- Goosehead Insurance Inc (GSHD) Q2 2026 Earnings Call Highlights: Strong Revenue Growth and ...Yahoo Finance · 2026-07-23
- Goosehead (GSHD) Q2 Earnings: How Key Metrics Compare to Wall Street EstimatesYahoo Finance · 2026-07-22
⚖️ U.S. legal pathway — state insurance receivership
- Insurance companies are excluded from Title 11 (§109(b)(2)); they are rehabilitated or liquidated by the state insurance commissioner.
- State guaranty associations protect policyholders up to statutory limits; shareholders rank last.
- The listed holding company can still file Chapter 11. Warning signs: risk-based capital ratios near action levels, reserve deficiencies, catastrophe losses.
Frequently asked questions
What do Goosehead Insurance, Inc.'s financial-health indicators show?
As of 2026-10-08, Goosehead Insurance, Inc.'s public financial data places it in the 'Watch' band with a distress score of 35/100, driven by negative book equity and equity eroded by >20% in a year. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Goosehead Insurance, Inc.'s financial distress score?
35/100 ('Watch').
What works in Goosehead Insurance, Inc.'s favour?
Operating cash flow is positive over the latest 12 months.
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other Insurance companies with distress indicators
- Porch Group, Inc. (PRCH)Watch 43/100
- Oxbridge Re Holdings Limited (OXBR)Watch 40/100
- Reliance Global Group, Inc. (EZRA)Watch 39/100
- MBIA Inc. (MBI)Watch 37/100
- Presurance Holdings, Inc. (PRHI)Watch 36/100
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.