TWFG Announces Third Quarter 2025 Results

Rhea-AI Summary

TWFG (NASDAQ: TWFG) reported third quarter 2025 results for the period ended September 30, 2025, showing continued growth and margin expansion.

Key metrics: Total revenues $64.1M (+21.3% YoY), Total written premium $467.7M (+16.9% YoY), Organic revenue growth 10.2%, Net income $9.6M, Adjusted EBITDA $17.0M (+44.7% YoY) and 26.5% margin (+430 bps). Adjusted net income was $13.0M (+55.3%). Liquidity included $151.0M cash and $50.0M revolver available. The company updated 2025 guidance to $240–245M total revenues, 11–13% organic growth, and 24–25% Adjusted EBITDA margin.

Positive

• Total revenues $64.1M (+21.3% YoY)
• Adjusted EBITDA $17.0M (+44.7% YoY) and 26.5% margin (+430 bps)
• Organic revenue growth 10.2% for Q3 2025
• Adjusted net income $13.0M (+55.3% YoY)
• Added 8 retail locations, 1 corporate location and 370 agents in Q3 2025; acquired Alabama Insurance Agency adding 23 retail locations and new state

Negative

• Salaries and employee benefits up 19.2% YoY to $9.9M
• Commission expense up 12.6% YoY to $34.6M
• Other administrative expenses up 7.9% YoY to $5.2M

Insights

Senior Insurance Distribution Analyst

TWFG posted strong Q3 2025 growth: revenue, margins, and cash improved, driven by agency and MGA expansion.

Revenue rose 21.3% to $64.1 million and Total Written Premium grew 16.9% to $467.7 million, showing meaningful top‑line expansion. Adjusted EBITDA increased 44.7% to $17.0 million and the Adjusted EBITDA margin widened 430 basis points to 26.5%, indicating stronger operating leverage and higher contribution from MGA operations.

Key dependencies include continued organic growth, successful integration of recent branch and agent additions, and stable carrier market conditions enabling higher retention and capacity. Liquidity appears healthy with $151.0 million cash and a full $50.0 million revolver available; term notes are minimal at $4.5 million.

Watch for: quarterly trends in Organic Revenue Growth Rate (currently 10.2% for Q3 and guided 11-13% for 2025), Adjusted EBITDA margin moving toward the guided 24-25%, and integration metrics from recent acquisitions through 2026. Near term signals will come from the Q4 operating cadence and the company’s ability to sustain MGA margin mix and recruiting momentum.

– Total Revenues increased 21.3% for the quarter over the prior year period to $64.1 million –
– Total Written Premium increased 16.9% for the quarter over the prior year period to $467.7 million –
– Organic Revenue Growth Rate* of 10.2% for the quarter –
– Net income of $9.6 million for the quarter –
– Adjusted EBITDA* increased 44.7% for the quarter over the prior year period to $17.0 million –

THE WOODLANDS, Texas, Nov. 12, 2025 (GLOBE NEWSWIRE) -- TWFG, Inc. (“TWFG”, the “Company” or “we”) (NASDAQ: TWFG), a high-growth insurance distribution company, today announced results for the third quarter ended September 30, 2025.

Third Quarter 2025 Highlights

• Total revenues for the quarter increased 21.3% to $64.1 million, compared to $52.9 million in the prior year period
• Commission income for the quarter increased 20.8% to $58.3 million, compared to $48.2 million in the prior year period
• Net income for the quarter was $9.6 million, compared to $6.9 million in the prior year period, and net income margin for the quarter was 15.0%
• Diluted Earnings Per Share for the quarter was $0.11 and Adjusted Diluted Earnings Per Share* for the quarter was $0.23
• Total Written Premium for the quarter increased 16.9% to $467.7 million, compared to $400.1 million in prior year period
• Organic Revenue Growth Rate* for the quarter was 10.2%
• Adjusted Net Income* for the quarter increased 55.3% from the prior year period to $13.0 million, and Adjusted Net Income Margin* for the quarter was 20.2%
• Adjusted EBITDA* for the quarter increased 44.7% over the prior year period to $17.0 million, and Adjusted EBITDA Margin* for the quarter was 26.5% compared to 22.2% in the prior-year period

^{*Organic Revenue Growth Rate, Adjusted Net Income, Adjusted Net Income Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow and Adjusted Diluted Earnings Per Share are non-GAAP measures. Reconciliations of Organic Revenue Growth Rate to total revenue growth rate, Adjusted Net Income and Adjusted EBITDA to net income, Adjusted Diluted Earnings Per Share to diluted earnings per share, and Adjusted Free Cash Flow to cash flow from operating activities, the most directly comparable financial measures presented in accordance with GAAP, are outlined in the reconciliation table accompanying this release.}

“Our third quarter results demonstrate continued momentum across both our agency and MGA platforms,” said Gordy Bunch, Founder, Chairman and CEO. “We delivered 21.3% total revenue growth, 10.2% organic growth and 430-basis-points improvement in Adjusted EBITDA margin to 26.5%, highlighting the scalability of our model and disciplined cost management. As the personal and commercial lines markets normalize, we’re experiencing improved retention, expanding carrier capacity, and stronger client demand — all of which position TWFG for sustained, profitable growth.”

“Our third quarter recruiting and M&A activities added eight new retail locations, one new corporate location and 370 independent agents to our MGA platform. After the third quarter TWFG acquired Alabama Insurance Agency adding twenty three additional retail locations and Alabama as our newest state expansion. These results provide excellent tailwinds heading into the fourth quarter.”

Third Quarter 2025 Results

During the quarter, industry conditions improved meaningfully as carriers re-entered key property markets and we experienced stabilized pricing trends. TWFG’s diversified distribution platform — combining independent agency operations, proprietary MGA programs, and technology-enabled service tools — continues to perform well in this environment. Our strategy remains focused on enhancing producer productivity, deepening carrier relationships, and expanding capabilities to deliver long-term value.

For the third quarter, Total Written Premiums were $467.7 million, an increase of 16.9% compared to $400.1 million in the same period in the prior year. Growth was driven by corporate branch acquisitions and continued expansion across both the Agency-in-a-Box and TWFG MGA platforms, with MGA premium volume up 19.2% compared to the same period in the prior year, reflecting strength of our property programs, improved retention, new business growth, and expansion into new states through enhanced carrier partnerships.

Total revenues increased 21.3% to $64.1 million, compared to $52.9 million in the same period in the prior year, supported by double-digit organic growth, higher contingent income, and growth in policy and license fees. For the nine months ended September 30, 2025, total revenues were $178.3 million, up 17.3% from $152.0 million compared to the same period in the prior year.

Organic Revenues, which exclude contingent, non-policy fee, and other income, were $54.2 million for the quarter, up $5.0 million from $49.2 million compared to the same period in the prior year. The Organic Revenue Growth Rate of 10.2% was driven by new business production, normalized retention levels, and modest rate improvement across personal and commercial lines. For the first nine months of 2025, Organic Revenues rose $16.4 million to $157.5 million, representing an 11.6% Organic Revenue Growth Rate. Organic growth benefited from normalizing retention levels as rate volatility moderated, supporting new business growth and cross-sell activity.

Commission expense for the quarter increased 12.6% to $34.6 million, reflecting continued expansion in production. Salaries and employee benefits were $9.9 million, up 19.2% compared to $8.3 million in the same period in the prior year, primarily due to incremental headcount and expenses associated with 2025 corporate branch acquisitions and overall business growth. Other administrative expenses rose 7.9% to $5.2 million, primarily from public company operating costs and continued investments to support long-term growth initiatives.

Net income for the quarter was $9.6 million, compared to $6.9 million in the same period in the prior year resulting in a net income margin of 15.0%, up from 13.0% last year. Adjusted Net Income increased 55.3% to $13.0 million, with an Adjusted Net Income Margin of 20.2% compared to 15.8% in the same period in the prior year.

Adjusted EBITDA grew 44.7% to $17.0 million, reflecting operating leverage, expense discipline, and increased contribution from higher-margin MGA operations. The Adjusted EBITDA Margin expanded 430-basis-points year-over-year to 26.5%, compared to 22.2% in the third quarter of 2024.

Cash flow from operating activities was $15.0 million, compared to $11.7 million in the same period prior year. Adjusted Free Cash Flow was $12.3 million, modestly higher than $11.5 million in the same period prior year, primarily reflecting increased tax distributions to pre-IPO members.

Liquidity and Capital Resources

As of September 30, 2025, the Company had unrestricted cash and cash equivalents of $151.0 million. We had full unused capacity on our revolving credit facility of $50.0 million as of September 30, 2025. The total outstanding term notes payable balance was $4.5 million as of September 30, 2025.

2025 Updated Outlook

Based on year-to-date performance and current market conditions, TWFG expects to close the year with strong momentum. As the personal lines markets continue to soften and carrier availability expands, the Company anticipates double digit organic growth with accretive M&A activity throughout 2026. TWFG’s balanced capital allocation and disciplined execution support our confidence in achieving our tightened full year 2025 guidance. Based on the year-to-date results for 2025 and current market conditions, the Company has updated its full year 2025 guidance as follows.

• Total Revenues: Expected to be between $240 million and $245 million
• Organic Revenue Growth Rate*: Expected to be in the range of 11% to 13%
• Adjusted EBITDA Margin*: Expected to be in the range of 24% to 25%
  

The Company is unable to provide a reconciliation to the most directly comparable GAAP measures without unreasonable efforts due to the inherent difficulty in forecasting the timing of items that have not yet occurred, as well as quantifying certain amounts that are necessary for such reconciliation. We believe it is immaterial.

*For a definition of Organic Revenue Growth Rate and Adjusted EBITDA Margin, see “Non-GAAP Financial Measures” below.

Conference Call Information

TWFG will host a conference call and webcast tomorrow at 10:00 AM ET to discuss these results.

To access the call by phone, participants should REGISTER AT THIS LINK, where they will be provided with the dial in details. A live webcast of the conference call will also be available on TWFG’s investor relations website at investors.twfg.com. A webcast replay of the call will be available at investors.twfg.com for one year following the call.

About TWFG

TWFG (NASDAQ: TWFG) is a high-growth, independent distribution platform for personal and commercial insurance in the United States and represents hundreds of insurance carriers that underwrite personal lines and commercial lines risks. For more information, please visit twfg.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical fact included in this release, are forward-looking statements. Forward-looking statements give our current expectations relating to our financial condition, results of operations, plans, objectives, future performance, and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “outlook,” “predicts,” “potential” or “continue,” the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including those factors discussed under the captions entitled “Risk factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K, any Quarterly Reports on Form 10-Q and the other documents that the Company files with the U.S. Securities and Exchange Commission. You should specifically consider the numerous risks outlined under “Risk factors” in the Annual Report on Form 10-K for the year ended December 31, 2024.

Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Non-GAAP Financial Measures and Key Performance Indicators

Non-GAAP Financial Measures

Organic Revenue, Organic Revenue Growth, Adjusted Net Income, Adjusted Net Income Margin, Adjusted Diluted Earnings Per Share, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Free Cash Flow included in this release are not measures of financial performance in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and should not be considered substitutes for GAAP measures, including revenues (for Organic Revenue and Organic Revenue Growth), net income (for Adjusted Net Income, Adjusted Net Income Margin, Adjusted EBITDA and Adjusted EBITDA Margin), diluted earnings per share (Adjusted Diluted Earnings Per Share), and cash flow from operating activities (for Adjusted Free Cash Flow), which we consider to be the most directly comparable GAAP measures. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, you should not consider these non-GAAP financial measures in isolation or as substitutes for revenues, net income, operating cash flow or other consolidated financial statement data prepared in accordance with GAAP. Other companies may calculate any or all of these non-GAAP financial measures differently than we do, limiting their usefulness as comparative measures.

Organic Revenue. Since the first quarter of 2025, we have utilized the revised calculation methodology for Organic Revenue to include policy fee income as it is directly correlated to MGA commission income. Our legacy calculation methodology removed policy fee income from Organic Revenue. Organic Revenue is total revenue (the most directly comparable GAAP measure) for the relevant period, excluding contingent income, non-policy fee income, other income and those revenues generated from acquired businesses with over $0.5 million in annualized revenue that have not reached the twelve-month owned mark.

Organic Revenue Growth. Organic Revenue Growth is the change in Organic Revenue period-to-period, with prior period results adjusted to include revenues that were excluded in the prior period because the relevant acquired businesses had not reached the twelve-month-owned milestone but have reached the twelve-month owned milestone in the current period. We believe Organic Revenue Growth is an appropriate measure of operating performance because it eliminates the impact of acquisitions, which affects the comparability of results from period to period.

Adjusted Net Income. Adjusted Net Income is a supplemental measure of our performance and is defined as net income (the most directly comparable GAAP measure) before amortization, non-recurring or non-operating income and expenses, including equity-based compensation, adjusted to assume a single class of stock (Class A) and assuming noncontrolling interests do not exist. We believe Adjusted Net Income is a useful measure because it adjusts for the after-tax impact of significant one-time, non-recurring items and eliminates the impact of any transactions that do not directly affect what management considers to be our ongoing operating performance in the period. These adjustments generally eliminate the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance.

We are subject to U.S. federal income taxes, in addition to state, and local taxes, with respect to our allocable share of any net taxable income of TWFG Holding Company, LLC. Adjusted Net Income pre-IPO did not reflect adjustments for income taxes since TWFG Holding Company, LLC is a limited liability company and is classified as a partnership for U.S. federal income tax purposes. Post-IPO, the calculation incorporates the impact of federal and state statutory tax rates on 100% of our adjusted pre-tax income as if the Company owned 100% of TWFG Holding Company, LLC.

Adjusted Net Income Margin. Adjusted Net Income Margin is Adjusted Net Income divided by total revenues. We believe that Adjusted Net Income Margin is a useful measurement of operating profitability for the same reasons we find Adjusted Net Income useful and also because it provides a period-to-period comparison of our after-tax operating performance.

Adjusted Diluted Earnings Per Share. Adjusted Diluted Earnings Per Share is Adjusted Net Income divided by diluted shares outstanding after adjusting for the effect of (i) the exchange of 100% of the outstanding Class B common stock of the Company (the “Class B Common Stock”) and Class C common stock of the Company (the “Class C Common Stock”) (together with the related limited liability units in TWFG Holding Company, LLC (the “LLC Units”)) into shares of Class A common stock of the Company (“Class A Common Stock”) and (ii) the vesting of 100% of the unvested equity awards and exchange into shares of Class A Common Stock. This measure does not deduct earnings related to the noncontrolling interests in TWFG Holding Company, LLC for the period prior to July 19, 2024, when we did not own 100% of the business. The most directly comparable GAAP financial metric is diluted earnings per share. We believe Adjusted Diluted Earnings Per Share may be useful to an investor in evaluating our operating performance and efficiency because this measure is widely used by investors to measure a company’s operating performance without regard to items excluded from the calculation of such measure, which can vary substantially from company to company depending upon acquisition activity and capital structure. This measure also eliminates the impact of expenses that do not relate to core business performance, among other factors.

Adjusted EBITDA. Adjusted EBITDA is a supplemental measure of our performance and is defined as EBITDA adjusted to reflect items such as equity-based compensation, interest income, other non-operating and certain nonrecurring items. EBITDA is defined as net income (the most directly comparable GAAP measure) before interest, income taxes, depreciation, and amortization. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it adjusts for significant one-time, non-recurring items and eliminates the ongoing accounting effects of certain capital spending and acquisitions, such as depreciation and amortization, that do not directly affect what management considers to be our ongoing operating performance in the period. These adjustments eliminate the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance. Our measure of Adjusted EBITDA is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.

Adjusted EBITDA Margin. Adjusted EBITDA Margin is Adjusted EBITDA divided by total revenue. We believe that Adjusted EBITDA Margin is a useful measurement of operating profitability for the same reasons we find Adjusted EBITDA useful and also because it provides a period-to-period comparison of our operating performance.

Adjusted Free Cash Flow. Adjusted Free Cash Flow is a supplemental measure of our performance. We define Adjusted Free Cash Flow as cash flow from operating activities (the most directly comparable GAAP measure) less cash payments for tax distributions, purchases of property and equipment and acquisition-related costs. We believe Adjusted Free Cash Flow is a useful measure of operating performance because it represents the cash flow from the business that is within our discretion to direct to activities including investments, debt repayment, and returning capital to stockholders.

The reconciliation of the above non-GAAP measures to their most comparable GAAP financial measure is outlined in the reconciliation table accompanying this release.

Key Performance Indicators

Total Written Premium. Total Written Premium represents, for any reported period, the total amount of current premium (net of cancellation) placed with insurance carriers. We utilize Total Written Premium as a key performance indicator when planning, monitoring, and evaluating our performance. We believe Total Written Premium is a useful metric because it is the underlying driver of the majority of our revenue.

Contacts
Investor Contact:
Gene Padgett, CAO for TWFG
Email: gene.padgett@twfg.com

PR Contact:
Alex Bunch, CMO for TWFG
Email: alex@twfg.com

Condensed Consolidated Statements of Income (Unaudited)
(Amounts in thousands, except share and per share data)

	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
Revenues
Commission income(1)	$	58,270			$	48,240			$	161,617			$	139,447
Contingent income		2,095				1,383				5,791				3,717
Fee income(2)		3,466				2,890				9,806				7,811
Other income		292				350				1,040				1,042
Total revenues		64,123				52,863				178,254				152,017
Expenses
Commission expense		34,639				30,766				100,604				89,171
Salaries and employee benefits		9,929				8,331				27,618				21,401
Other administrative expenses(3)		5,194				4,813				15,318				11,687
Depreciation and amortization		5,327				2,985				12,587				8,966
Total operating expenses		55,089				46,895				156,127				131,225
Operating income		9,034				5,968				22,127				20,792
Interest expense		70				411				221				2,125
Interest income		1,574				1,777				5,188				2,202
Other non-operating income (expense), net		59				(4	)			632				8
Income before tax		10,597				7,330				27,726				20,877
Income tax expense		977				437				2,253				437
Net income		9,620				6,893				25,473				20,440
Less: net income attributable to noncontrolling interests		7,898				5,739				20,456				19,286
Net income attributable to TWFG, Inc.	$	1,722			$	1,154			$	5,017			$	1,154
Weighted average shares of common stock outstanding:
Basic		15,005,426				14,722,685				14,933,242				14,722,685
Diluted		15,100,655				14,890,382				15,088,031				14,890,382
Earnings per share:
Basic	$	0.11			$	0.08			$	0.34			$	0.08
Diluted	$	0.11			$	0.08			$	0.34			$	0.08

^{(1) Commission income - related party of $3,939 and $3,026 for the three months ended and $9,858 and $6,047 for the nine months ended September 30, 2025 and 2024, respectively
(2) Fee income - related party of $869 and $884 for the three months ended and $2,596 and $1,799 for the nine months ended September 30, 2025 and 2024, respectively
(3) Other administrative expenses - related party of $785 and $339 for the three months ended and $2,333 and $1,122 for the nine months ended September 30, 2025 and 2024, respectively}

The following table presents the disaggregation of our revenues by offerings (in thousands):

	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
Insurance Services
Agency-in-a-Box	$	37,583			$	33,826			$	112,895			$	99,976
Corporate Branches		12,188				9,248				31,804				25,875
Total Insurance Services		49,771				43,074				144,699				125,851
TWFG MGA		13,944				9,432				32,372				25,057
Other		408				357				1,183				1,109
Total revenues	$	64,123			$	52,863			$	178,254			$	152,017

The following table presents the disaggregation of our commission income by offerings (in thousands):

	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
Insurance Services
Agency-in-a-Box	$	34,703			$	31,542			$	104,337			$	93,702
Corporate Branches		12,018				9,301				31,526				25,962
Total Insurance Services		46,721				40,843				135,863				119,664
TWFG MGA		11,549				7,397				25,754				19,783
Total commission income	$	58,270			$	48,240			$	161,617			$	139,447

The following table presents the disaggregation of our fee income by major sources (in thousands):

	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
Policy fees	$	1,175			$	1,064			$	3,309			$	2,510
Branch fees		1,289				1,172				3,961				3,523
License fees		886				495				2,053				1,454
TPA fees		116				159				483				324
Total fee income	$	3,466			$	2,890			$	9,806			$	7,811

The following table presents the disaggregation of our commission expense by offerings (in thousands):

	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
Insurance Services
Agency-in-a-Box	$	27,627			$	25,092			$	81,594			$	72,649
Corporate Branches		1,481				1,304				4,155				3,422
Total Insurance Services		29,108				26,396				85,749				76,071
TWFG MGA		5,504				4,346				14,774				13,039
Other		27				24				81				61
Total commission expense	$	34,639			$	30,766			$	100,604			$	89,171

Condensed Consolidated Balance Sheets (Unaudited)
(Amounts in thousands, except share/unit data)

	September 30, 2025				December 31, 2024
Assets
Current assets
Cash and cash equivalents	$	150,985			$	195,772
Restricted cash		11,557				9,551
Commissions receivable, net		27,529				27,067
Accounts receivable		8,169				7,839
Other current assets, net		13,087				1,619
Total current assets		211,327				241,848
Non-current assets
Intangible assets, net		129,386				72,978
Property and equipment, net		3,209				3,499
Lease right-of-use assets, net		4,515				4,493
Other non-current assets		734				610
Total assets	$	349,171			$	323,428
Liabilities, Redeemable Noncontrolling Interest and Equity
Current liabilities
Commissions payable	$	15,897			$	13,848
Carrier liabilities		14,074				12,392
Operating lease liabilities, current		1,393				1,013
Short-term bank debt		1,956				1,912
Deferred acquisition payable, current		2,508				601
Other current liabilities		9,309				9,851
Total current liabilities		45,137				39,617
Non-current liabilities
Operating lease liabilities, net of current portion		3,135				3,372
Long-term bank debt		2,534				4,007
Deferred acquisition payable, non-current		2,620				1,122
Other non-current liabilities		—				24
Total liabilities		53,426				48,142
Commitments and contingencies (Note 13)
Redeemable noncontrolling interest		11,427				—
Stockholders' Equity
Class A common stock ($0.01 par value per share - 300,000,000 authorized 15,005,426 and 14,811,874 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively)		150				148
Class B common stock ($0.00001 par value per share - 100,000,000 authorized 7,277,651 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively)		—				—
Class C common stock ($0.00001 par value per share - 100,000,000 authorized 33,893,810 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively)		—				—
Additional paid-in capital		58,869				58,365
Retained earnings		20,305				15,288
Accumulated other comprehensive income		40				83
Total stockholders' equity attributable to TWFG, Inc.		79,364				73,884
Noncontrolling interests		204,954				201,402
Total stockholders' equity		284,318				275,286
Total liabilities, redeemable noncontrolling interest and equity	$	349,171			$	323,428

Non-GAAP Financial Measures

A reconciliation of Organic Revenue and Organic Revenue Growth Rate to Total Revenue and Total Revenue Growth Rate, the most directly comparable GAAP measures, for each of the periods indicated is as follows (in thousands):

Revised Calculation Methodology Applied to Current Period
	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
Total revenues	$	64,123			$	52,863			$	178,254			$	152,017
Acquisition adjustments(1)		(5,286	)			(898	)			(7,419	)			(3,582	)
Contingent income		(2,095	)			(1,383	)			(5,791	)			(3,717	)
Fee income		(3,466	)			(2,890	)			(9,806	)			(7,811	)
Other income		(292	)			(350	)			(1,040	)			(1,042	)
Policy fee income		1,175				1,064				3,309				2,510
Organic Revenue	$	54,159			$	48,406			$	157,507			$	138,375
Prior year Organic Revenue reported	$	47,342			$	42,840			$	135,865			$	119,803
Commission income at 12-month post acquisition(s)		898				1,153				3,583				1,856
Prior year policy fees		1,064				580				2,510				1,656
Other adjustment(s)(3)		(136	)			—				(807	)			—
Organic Revenue denominator	$	49,168			$	44,573			$	141,151			$	123,315
Organic Revenue	$	54,159			$	48,406			$	157,507			$	138,375
Organic Revenue denominator		49,168				44,573				141,151				123,315
Organic Revenue Growth	$	4,991			$	3,833			$	16,356			$	15,060
Total Revenue Growth Rate(2)		21.3	%			11.5	%			17.3	%			14.7	%
Organic Revenue Growth Rate		10.2	%			8.6	%			11.6	%			12.2	%

^{(1) Represents revenues generated from the acquired businesses during the first 12 months following an acquisition.
(2) Represents the period-to-period change in total revenues divided by the total revenues in the prior period
(3) Other adjustments reflect immaterial prior-period and comparability items consistent with management’s non-GAAP presentation policy.}

Legacy Calculation Methodology Applied to Current Period
	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
Total revenues	$	64,123			$	52,863			$	178,254			$	152,017
Acquisition adjustments(1)		(5,286	)			(898	)			(7,419	)			(3,582	)
Contingent income		(2,095	)			(1,383	)			(5,791	)			(3,717	)
Fee income		(3,466	)			(2,890	)			(9,806	)			(7,811	)
Other income		(292	)			(350	)			(1,040	)			(1,042	)
Organic Revenue	$	52,984			$	47,342			$	154,198			$	135,865
Prior year Organic Revenue reported	$	47,342			$	42,840			$	135,865			$	119,803
Commission income at 12-month post acquisition(s)		898				1,153				3,583				1,856
Other adjustment(s)(3)		(136	)			—				(807	)			—
Organic Revenue denominator	$	48,104			$	43,993			$	138,641			$	121,659
Organic Revenue	$	52,984			$	47,342			$	154,198			$	135,865
Organic Revenue denominator		48,104				43,993				138,641				121,659
Organic Revenue Growth	$	4,880			$	3,349			$	15,557			$	14,206
Total Revenue Growth Rate(2)		21.3	%			11.5	%			17.3	%			14.7	%
Organic Revenue Growth Rate		10.1	%			7.6	%			11.2	%			11.7	%

^{(1) Represents revenues generated from the acquired businesses during the first 12 months following an acquisition.
(2) Represents the period-to-period change in total revenues divided by the total revenues in the prior period
(3) Other adjustments reflect immaterial prior-period and comparability items consistent with management’s non-GAAP presentation policy.}

A reconciliation of Adjusted Net Income and Adjusted Net Income Margin to Net Income and Net Income Margin, the most directly comparable GAAP measures, for each of the periods indicated is as follows (in thousands):

Revised Calculation Methodology Applied to Current Period
	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
Total revenues	$	64,123			$	52,863			$	178,254			$	152,017
Net Income	$	9,620			$	6,893			$	25,473			$	20,440
Income tax expense		977				—				2,253				—
Acquisition-related expenses		3				—				55				—
Equity-based compensation		987				1,012				3,706				1,012
Other non-recurring items(1)		—				—				10				(1,477	)
Amortization expense		5,205				2,920				12,176				8,771
Adjusted income before income taxes		16,792				10,825				43,673				28,746
Adjusted income tax expense(2)		(3,833	)			(2,482	)			(9,968	)			(6,591	)
Adjusted Net Income	$	12,959			$	8,343			$	33,705			$	22,155
Net Income Margin		15.0	%			13.0	%			14.3	%			13.3	%
Adjusted Net Income Margin		20.2	%			15.8	%			18.9	%			14.6	%

Legacy Calculation Methodology Applied to Current Period
	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
Total revenues	$	64,123			$	52,863			$	178,254			$	152,017
Net income	$	9,620			$	6,893			$	25,473			$	20,440
Income tax expense		977				—				2,253				—
Acquisition-related expenses		3				—				55				—
Equity-based compensation		987				1,012				3,706				1,012
Other non-recurring items(1)		—				—				10				(1,477	)
Adjusted income before income taxes		11,587				7,905				31,497				19,975
Adjusted income tax expense(2)		(2,645	)			(1,813	)			(7,189	)			(4,580	)
Adjusted Net Income	$	8,942			$	6,092			$	24,308			$	15,395
Net Income Margin		15.0	%			12.6	%			14.3	%			13.3	%
Adjusted Net Income Margin		13.9	%			11.2	%			13.6	%			10.0	%

^{(1) Represents a one-time adjustment reducing commission expense, which resulted from the branch conversions. In January 2024, nine of our Branches converted to Corporate Branches. Upon conversion, agents of the newly converted Corporate Branches became employees and received salaries, employee benefits, and bonuses for services rendered instead of commissions. As a result, we released a portion of the unpaid commissions related to the converted branches that we no longer are required to settle.
(2) Post-IPO, we are subject to United States federal income taxes, in addition to state, local, and foreign taxes, with respect to our allocable share of any net taxable income of TWFG Holding Company, LLC. For the three and nine months ended September 30, 2025, the calculation of adjusted income tax expense is based on a federal statutory rate of 21% and a blended state income tax rate of 1.82% on 100% of our adjusted income before income taxes as if we owned 100% of the TWFG Holding Company, LLC.}

A reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to Net income and Net income margin, the most directly comparable GAAP measures, for each of the periods indicated is as follows (in thousands):

	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
Total revenues	$	64,123			$	52,863			$	178,254			$	152,017
Net Income	$	9,620			$	6,893			$	25,473			$	20,440
Interest expense		70				411				221				2,125
Interest income		(1,574	)			(1,777	)			(5,188	)			(2,202	)
Depreciation and amortization		5,327				2,985				12,587				8,966
Income tax expense		977				437				2,253				437
EBITDA		14,420				8,949				35,346				29,766
Acquisition-related expenses		3				—				55				—
Equity-based compensation		987				1,012				3,706				1,012
Interest income		1,574				1,777				5,188				2,202
Other non-recurring items(1)		—				—				10				(1,477	)
Adjusted EBITDA	$	16,984			$	11,738			$	44,305			$	31,503
Net Income Margin		15.0	%			13.0	%			14.3	%			13.4	%
Adjusted EBITDA Margin		26.5	%			22.2	%			24.9	%			20.7	%

^{(1) Represents a one-time adjustment reducing commission expense, which resulted from the branch conversions. In January 2024, nine of our Branches converted to Corporate Branches. Upon conversion, agents of the newly converted Corporate Branches became employees and received salaries, employee benefits, and bonuses for services rendered instead of commissions. As a result, we released a portion of the unpaid commissions related to the converted branches that we no longer are required to settle.}

A reconciliation of Adjusted Free Cash Flow to Cash Flow from Operating Activities, the most directly comparable GAAP measure, for each of the periods indicated is as follows (in thousands):

	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
Cash Flow from Operating Activities	$	14,953			$	11,725			$	40,213			$	28,879
Purchase of property and equipment		(69	)			(233	)			(128	)			(280	)
Tax distribution to members(1)		(2,586	)			—				(11,338	)			(6,104	)
Acquisition-related expenses		3				—				55				—
Adjusted Free Cash Flow	$	12,301			$	11,492			$	28,802			$	22,495

^{(1) Tax distributions to members represents the amount distributed to the members of TWFG Holding Company, LLC in respect of their income tax liability related to the Net Income of TWFG Holding Company, LLC allocated to its members.}

A reconciliation of Adjusted Diluted Earnings Per Share to diluted earnings per share, the most directly comparable GAAP measure, for each of the periods indicated is as follows:

	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
Earnings per share of common stock – diluted	$	0.11			$	0.08			$	0.34			$	0.08
Plus: Impact of all LLC Units exchanged for Class A Common Stock(1)		0.06				0.04				0.12				0.29
Plus: Adjustments to Adjusted Net Income(2)		0.06				0.03				0.14				0.03
Adjusted Diluted Earnings Per Share	$	0.23			$	0.15			$	0.60			$	0.40
Weighted average common stock outstanding – diluted		15,100,655				14,890,382				15,088,031				14,890,382
Plus: Impact of all LLC Units exchanged for Class A Common Stock(1)		41,171,461				41,171,461				41,171,461				41,171,461
Adjusted Diluted Earnings Per Share diluted share count		56,272,116				56,061,843				56,259,492				56,061,843

^{(1) For comparability purposes, this calculation incorporates the Net Income that would be distributable if all shares of Class B Common Stock and Class C Common Stock, together with the related LLC Units, were exchanged for shares of Class A Common Stock. For the three and nine months ended September 30, 2025, this includes $7.9 million of Net Income on 56,272,116 weighted-average shares of common stock outstanding - diluted and $20.5 million of Net Income on 56,259,492 weighted-average shares of common stock outstanding - diluted, respectively. For the three and nine months ended September 30, 2024, 41,171,461 weighted average outstanding Class B Common Stock and Class C Common Stock were considered dilutive and included in the 56,061,843 and 56,061,843 weighted-average shares of common stock outstanding - diluted within diluted earnings per share calculation, respectively. Refer to Note 12 Earnings Per Share to our Condensed Consolidated Financial Statements included in the Quarterly Report for more information about the earnings per share.
(2) Adjustments to Adjusted Net Income are described in the footnotes of the reconciliation of Adjusted Net Income to Net Income in “Adjusted Net Income and Adjusted Net Income Margin”, which represent the difference between Net Income of $9.6 million and Adjusted Net Income of $13.0 million and Net Income of $25.5 million and Adjusted Net Income of $33.7 million for the three and nine months ended September 30, 2025, respectively. For the three and nine months ended September 30, 2025, Adjusted Diluted Earnings Per Share include adjustments of $3.3 million to Adjusted Net Income on 56,272,116 weighted-average shares of common stock outstanding - diluted and $8.2 million to Adjusted Net Income on 56,259,492 weighted-average shares of common stock outstanding - diluted for the period presented, respectively.}

Key Performance Indicators

The following presents the disaggregation of Total Written Premium by offerings, business mix and line of business (in thousands):

	Three Months Ended September 30,														Nine Months Ended September 30,
	2025							2024							2025							2024
	Amount				% of Total			Amount				% of Total			Amount				% of Total			Amount				% of Total
Offerings:
Insurance Services
Agency-in-a-Box	$	296,524			63	%		$	261,560			65	%		$	839,845			65	%		$	736,699			66	%
Corporate Branches		98,634			21				77,636			20				262,284			20				213,689			19
Total Insurance Services		395,158			84				339,196			85				1,102,129			85				950,388			85
TWFG MGA		72,583			16				60,903			15				186,862			15				164,612			15
Total written premium	$	467,741			100	%		$	400,099			100	%		$	1,288,991			100	%		$	1,115,000			100	%
Business Mix:
Insurance Services
Renewal business	$	313,448			67	%		$	265,026			66	%		$	860,223			67	%		$	739,624			66	%
New business		81,710			17				74,170			19				241,906			19				210,764			19
Total Insurance Services		395,158			84				339,196			85				1,102,129			86				950,388			85
TWFG MGA
Renewal business		48,687			10				46,075			11				132,429			10				125,364			11
New business		23,896			6				14,828			4				54,433			4				39,248			4
Total TWFG MGA		72,583			16				60,903			15				186,862			14				164,612			15
Total written premium	$	467,741			100	%		$	400,099			100	%		$	1,288,991			100	%		$	1,115,000			100	%
Written Premium Retention:
Insurance Services					92	%						89	%						91	%						93	%
TWFG MGA					80							83							80							83
Consolidated					91							88							89							91
Line of Business:
Personal lines	$	386,741			83	%		$	327,159			82	%		$	1,050,439			81	%		$	904,372			81	%
Commercial lines		81,000			17				72,940			18				238,552			19				210,628			19
Total written premium	$	467,741			100	%		$	400,099			100	%		$	1,288,991			100	%		$	1,115,000			100	%

FAQ

What were TWFG's reported total revenues and growth rate for Q3 2025?

TWFG reported $64.1M total revenues in Q3 2025, a 21.3% increase year‑over‑year.

How did TWFG's adjusted EBITDA and margin change in Q3 2025?

Adjusted EBITDA was $17.0M, up 44.7% YoY, with an Adjusted EBITDA margin of 26.5% (up 430 basis points).

What is TWFG's Q3 2025 organic revenue growth and what drove it?

Organic revenue growth was 10.2% in Q3 2025, driven by new business production, improved retention, and modest rate improvements.

What liquidity did TWFG report as of September 30, 2025?

As of September 30, 2025 TWFG had $151.0M cash and $50.0M of unused revolving credit capacity.

What guidance did TWFG update for full year 2025 on Nov 12, 2025?

TWFG updated full year 2025 guidance to $240–245M total revenues, 11–13% organic growth, and 24–25% Adjusted EBITDA margin.

What recent M&A and expansion activity did TWFG announce in Q3 2025?

Q3 activity added 8 retail and 1 corporate locations plus 370 agents, and a post-quarter acquisition added 23 retail locations in Alabama, expanding into a new state.