TWFG, Inc. (TWFG) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in ...

TWFG, Inc. (TWFG) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individual investors o ...

Core Insights - TWFG Insurance has announced significant leadership changes aimed at accelerating growth and enhancing its competitive position in the insurance industry [1] Leadership Appointments - Katherine Nolan has been promoted from Chief Operating Officer to President, bringing over 16 years of experience and a proven track record in operational excellence and expansion [2] - Julie Benes has transitioned from General Counsel to Chief Legal Officer, focusing on legal and compliance matters while driving growth through mergers and acquisitions [3] - Mohan Vijayagopal has been appointed as Chief Technology Officer, leveraging over 20 years of technology leadership to advance TWFG's digital strategies and enterprise transformation [4] Company Vision - The leadership changes are seen as a pivotal moment for TWFG, with the executive management team poised to drive growth and innovation in the insurance sector [5]

Financial Data and Key Metrics Changes - Total revenues increased by 21% quarter-over-quarter to $64.1 million, with adjusted EBITDA growing by 45% to $17 million, resulting in a margin expansion of 430 basis points to 26.5% [2][4][6] - Written premium rose by $67.6 million, or 16.9%, year-over-year to $467.7 million, with strong growth in both insurance services and MGA [4][5] - Net income was $9.6 million, up 40% year-over-year, with an adjusted net income increase of 55% to $13 million, equating to an adjusted net income margin of 20% [7][8] Business Line Data and Key Metrics Changes - Insurance services grew by $56 million, or 16.5%, while MGA experienced a growth spike of $11.7 million, or 19.2% [4][5] - Organic revenues increased by $5 million, reaching $54.2 million, demonstrating a solid organic growth rate of 10.2% [6] Market Data and Key Metrics Changes - The personal lines market is normalizing, with carrier appetite returning and rate increases moderating, which is positively impacting retention and new business growth [2][3] - The market is transitioning from hard to soft, affecting renewal rates and premium retention, with expectations of stabilization by the second quarter of 2026 [20][21] Company Strategy and Development Direction - The company is focused on investing in technology initiatives, executing accretive M&A goals, and expanding retail and MGA distribution channels [3][10] - The strategic priorities remain unchanged, emphasizing profitable growth and deepening relationships with carriers and agencies [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year 2025 targets, citing a strong balance sheet and ongoing recruiting and acquisition initiatives [8][10] - The company anticipates executing more M&A deals in 2026 compared to 2025, with a focus on cultural fit and portfolio quality [16][50] Other Important Information - The company ended the quarter with $151 million in cash and no draws on its revolver, positioning itself well for organic initiatives and potential M&A [8] - The company has tightened its guidance for total revenues to between $240 million and $245 million for the full year 2025 [8] Q&A Session Summary Question: Clarification on $10 million attributed to other investments - Management clarified that this is related to their Premium Finance operations, which have been funded internally for higher yields [12][15] Question: Expectations for M&A pipeline in 2026 - Management expects to execute M&A earlier in the cycle in 2026 compared to 2025, with a robust pipeline [16] Question: Insights on market environment and organic growth - Management discussed the impact of the market transitioning from hard to soft, affecting renewal rates and premium retention, with growth in exposure offsetting reduced premiums [20][21] Question: Impact of new agents on growth rate - Newly recruited agents are expected to contribute to organic growth over a multi-year process, with their impact factored into forecasts [22][24] Question: Trends in MGA channel performance - The MGA channel saw strong premium growth, with commission income growing faster due to a new program launched in Florida [27][28] Question: Comparison of EBITDA margins between Corporate and Agency-in-a-Box - Corporate locations have greater margins than Agency-in-a-Box due to retaining 100% of renewal commissions [38]

Financial Data and Key Metrics Changes - Total revenues increased by 21% quarter over quarter to $64.1 million, supported by 10.2% organic revenue growth and M&A revenues [2][4] - Adjusted EBITDA grew by 45% to $17 million, with margins expanding by 430 basis points to 26.5% [2][6] - Written premium increased by $67.6 million, or 16.9%, over the prior year period to $467.7 million [4][6] - Net income was $9.6 million, up 40% over the prior year period, with a net margin of 15% [7] Business Line Data and Key Metrics Changes - Insurance services grew by $56 million, or 16.5%, while MGA experienced a growth spike of $11.7 million, or 19.2% [4] - Commission income grew by $10 million, or 20.8%, to $58.3 million, driven by strong renewal and new business activity [5][6] - Organic revenues increased by $5 million, reaching $54.2 million, demonstrating solid momentum across both agency and MGA platforms [6] Market Data and Key Metrics Changes - The personal lines market is normalizing, with carrier appetite returning and rate increases moderating [2] - Consolidated written premium retention remained strong at 91%, indicating stability in the client base [4] - The market is transitioning from hard to soft, impacting renewal rates and premium retention [19] Company Strategy and Development Direction - The company is focused on investing in technology initiatives, executing accretive M&A goals, and expanding retail and MGA distribution channels [3] - Strategic priorities include disciplined capital deployment to support growth and expansion [3][10] - The company aims to build a high-growth, independent agent-centric, data-driven distribution platform [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year 2025 targets, with tightened guidance reflecting year-to-date performance and market conditions [8] - The company anticipates executing M&A earlier in the cycle in 2026 compared to 2025 [15] - Management noted that the softening market could lead to lower average premiums but also increased client onboarding opportunities [19][20] Other Important Information - The company ended the quarter with $151 million in cash and no draws on its revolver, positioning it well for organic initiatives and potential M&A [8] - The company has added eight new retail locations and 370 independent agents to its MGA platform [3] Q&A Session Summary Question: Clarification on $10 million attributed to other investments - Management clarified that this is related to their premium finance operations, which have been funded internally for higher yields [12][14] Question: Expectations for M&A pipeline in 2026 - Management expects to execute more deals in 2026 compared to 2025, with a focus on cultural fit and portfolio quality [15] Question: Insights on market environment and organic growth - Management discussed the impact of the market transitioning from hard to soft, affecting renewal rates and premium retention [19] Question: Impact of new agents on growth rates - Newly recruited agents are expected to contribute to organic growth over a multi-year process, with their impact already factored into forecasts [21][22] Question: MGA channel performance and margin trends - Management noted that the MGA channel experienced strong premium growth and higher commission income due to a new program launched in Florida [26][27] Question: Comparison of EBITDA margins between corporate and Agency in a Box - Management indicated that corporate margins are expected to be greater than 2x those of Agency in a Box due to revenue retention [37]

Financial Data and Key Metrics Changes - Total revenues increased by 21% quarter over quarter to $64.1 million, supported by 10.2% organic revenue growth and M&A revenues [2][4] - Adjusted EBITDA grew by 45% to $17 million, expanding margins by 430 basis points to 26.5% [2][5] - Written premium increased by $67.6 million, or 16.9%, over the prior year period to $467.7 million [4][5] - Net income was $9.6 million, up 40% over the prior year period, with an adjusted net income rise of 55% to $13 million [6][7] Business Line Data and Key Metrics Changes - Insurance services grew by $56 million, or 16.5%, while the MGA experienced a growth spike of $11.7 million, or 19.2% [4] - Consolidated written premium retention remained strong at 91%, indicating stability in the client base despite a softening rate environment [4][5] Market Data and Key Metrics Changes - The personal lines market is normalizing with a return of carrier appetite, moderated rate increases, and strong underwriting discipline [2] - The market environment has shifted from hard to soft, impacting renewal rates and premium retention [20][45] Company Strategy and Development Direction - The company is focused on investing in technology initiatives, executing accretive M&A goals, and expanding retail and MGA distribution channels [3][10] - The strategic priorities remain unchanged, emphasizing profitable growth and deepening relationships with carriers and agencies [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year 2025 targets, citing a strong balance sheet and ongoing recruiting and acquisition initiatives [8][10] - The company anticipates a double-digit organic growth rate for 2026, driven by same-store sales growth and new program initiatives [20][22] Other Important Information - The company completed the acquisition of Alabama Insurance Agency, adding 23 retail locations and marking expansion into Alabama [3] - Operating cash flow for the quarter was $15 million, with $151 million in cash and no draws on the revolver [8] Q&A Session Summary Question: Clarification on $10 million attributed to other investments - Management clarified that this is related to premium finance operations, which have been funded internally for higher yields [12][13] Question: Expectations for M&A pipeline in 2026 - Management expects to execute M&A earlier in the cycle in 2026 compared to 2025, with a focus on exceeding previous year's activity [15] Question: Insights on market environment and organic growth - Management discussed the impact of transitioning from a hard to soft market, affecting renewal rates and premium retention, with expectations for growth in exposure [18][20] Question: Impact of new agents on growth rate - Newly recruited agents are expected to contribute to organic growth over time, with their impact factored into forecasts [21][22] Question: Trends in MGA channel performance - The MGA channel saw strong premium growth, with commission income growing faster due to new programs launched [27][28] Question: Comparison of EBITDA margins between corporate and Agency in a Box - Corporate locations have higher margins compared to Agency in a Box due to retaining 100% of renewal income [38]

Core Insights - TWFG, Inc. reported a revenue of $64.12 million for the quarter ended September 2025, reflecting a year-over-year increase of 17.4% [1] - The earnings per share (EPS) for the quarter was $0.23, up from $0.15 in the same quarter last year, resulting in an EPS surprise of +21.05% against the consensus estimate of $0.19 [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $64.3 million, showing a surprise of -0.27% [1] Revenue Breakdown - Contingent income was reported at $2.1 million, exceeding the average estimate of $1.82 million from four analysts [4] - Fee income reached $3.47 million, surpassing the average estimate of $3.22 million from four analysts [4] - Commission income was $58.27 million, slightly below the average estimate of $58.95 million from four analysts [4] - Other income was reported at $0.29 million, which was below the average estimate of $0.41 million from three analysts [4] Stock Performance - Over the past month, shares of TWFG, Inc. have returned -3.8%, contrasting with the Zacks S&P 500 composite's increase of +4.6% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - TWFG, Inc. reported quarterly earnings of $0.23 per share, exceeding the Zacks Consensus Estimate of $0.19 per share, and showing an increase from $0.15 per share a year ago, resulting in an earnings surprise of +21.05% [1][2] - The company posted revenues of $64.12 million for the quarter ended September 2025, which was slightly below the Zacks Consensus Estimate by 0.27%, but an increase from $54.64 million year-over-year [2] - TWFG, Inc. has surpassed consensus EPS estimates in all four of the last quarters, while it has topped consensus revenue estimates two times during the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $59.85 million, and for the current fiscal year, it is $0.71 on revenues of $238.27 million [7] - The estimate revisions trend for TWFG, Inc. was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Insurance - Multi line industry, to which TWFG, Inc. belongs, is currently ranked in the top 22% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

– 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 ...

Financial Performance - Total revenues for the three months ended September 30, 2025, increased to $64,123,000, up 21.5% from $52,863,000 in the same period of 2024[19] - Net income attributable to TWFG, Inc. for the three months ended September 30, 2025, was $1,722,000, representing a 49.3% increase from $1,154,000 in the same period of 2024[19] - Operating income for the three months ended September 30, 2025, was $9,034,000, a 51.5% increase from $5,968,000 in the same period of 2024[19] - Comprehensive income attributable to TWFG, Inc. for the nine months ended September 30, 2025, was $4,974,000, compared to $1,121,000 for the same period in 2024[22] - Net income for the nine months ended September 30, 2025, was reported at $8,755,000, compared to $6,853,000 for the same period in 2024, representing an increase of about 27.7%[25] - Net income for the nine months ended September 30, 2025, was $25,473,000, an increase from $20,440,000 in the same period of 2024, representing a growth of approximately 24.9%[30] Assets and Liabilities - Total assets as of September 30, 2025, increased to $349,171,000, up from $323,428,000 as of December 31, 2024[24] - Total liabilities as of September 30, 2025, were $53,426,000, an increase from $48,142,000 as of December 31, 2024[24] - As of September 30, 2025, total stockholders' equity increased to $284,318,000, up from $275,286,000 at the end of 2024, reflecting a growth of approximately 3.75%[25] - The balance of retained earnings as of September 30, 2025, was $20,305,000, up from $15,288,000 at the end of 2024, indicating a growth of about 33%[25] - The total debt as of September 30, 2025, was $5,761,000, a decrease from $7,642,000 as of December 31, 2024, showing a reduction of 24.6%[56] Cash Flow and Investments - Cash flows from operating activities provided $40,213,000 in the nine months ended September 30, 2025, compared to $28,879,000 in 2024, indicating a significant increase of 39.5%[30] - The company reported a net cash used in investing activities of $63,745,000 for the nine months ended September 30, 2025, compared to $21,589,000 in 2024, reflecting a substantial increase in investment activities[30] - Cash, cash equivalents, and restricted cash at the end of September 30, 2025, totaled $162,542,000, down from $200,905,000 at the end of September 30, 2024, showing a decrease of 19%[32] Stock and Compensation - The total number of shares outstanding increased to 15,005,426 as of September 30, 2025, from 14,904,083 at the end of June 2025, reflecting an increase of approximately 0.7%[25] - Stock-based compensation expenses for the nine months ended September 30, 2025, amounted to $3,706,000, up from $1,204,000 in the previous year, showing a significant increase of about 208%[25] - The Company granted 51,652 RSUs and 38,716 performance stock units (PSUs) during the nine months ended September 30, 2025, with 3,929,169 shares of Class A Common Stock remaining available for future grants[78] Acquisitions and Intangible Assets - The company acquired customer lists and computer software totaling $47.6 million during the nine months ended September 30, 2025, with $44.0 million paid in cash at closing[47] - The company recognized a customer relationship intangible asset with an acquisition-date fair value of $21.0 million, amortized over six years[49] - As of September 30, 2025, the total intangible assets amounted to $173,977,000, an increase from $105,392,000 as of December 31, 2024, representing a growth of 64.9%[52] Tax and Compliance - The estimated effective tax rate for the three and nine months ended September 30, 2025, was 9.22% and 8.13%, respectively, differing from the 21% statutory rate due to the recognition of income tax expense only on the portion of earnings attributable to the Company[86] - The Company maintained compliance with its consolidated leverage ratio covenant of no greater than 2.00 to 1.00 as of September 30, 2025[60] Other Notable Points - TWFG, Inc. was incorporated on January 8, 2024, to facilitate an initial public offering (IPO), indicating a strategic move towards public market participation[34] - The company completed acquisitions subsequent to the quarter ended September 30, 2025, as part of its ongoing growth strategy[107] - The Progressive Corporation accounted for 11% of total revenues for both the three and nine months ended September 30, 2025[46]