TWFG Announces Fourth Quarter and Full Year 2025 Results – Total Revenues increased 33.0% for the quarter over the prior year period to $68.8 million – – Organic Revenue Growth Rate* of 11.7% for the quarter – – Net income of $14.4 million for the quarter – – Adjusted EBITDA* increased 56.9% for the quarter over the prior year period to $21.7 million - – Share Repurchase Authorization approved for up to $50 million - THE WOODLANDS, Texas, February 25, 2026 (GLOBE NEWSWIRE) – TWFG, Inc. ("TWFG", the "Company ...

– Total Revenues increased 33.0% for the quarter over the prior year period to $68.8 million – – Organic Revenue Growth Rate* of 11.7% for the quarter – – Net income of $14.4 million for the quarter – – Adjusted EBITDA* increased 56.9% for the quarter over the prior year period to $21.7 million - – Share Repurchase Authorization approved for up to $50 million - THE WOODLANDS, Texas, Feb. 25, 2026 (GLOBE NEWSWIRE) -- TWFG, Inc. (“TWFG”, the “Company” or “we”) (NASDAQ: TWFG), a high-growth insurance distribut ...

THE WOODLANDS, Texas, Feb. 17, 2026 (GLOBE NEWSWIRE) -- TWFG Inc. continues to grow with the addition of Andy McGuire as Chief Underwriting Officer. McGuire’s extensive industry background, leadership experience, and alignment with TWFG’s culture make him a strong fit for the organization and its long-term vision. He will drive MGA expansion efforts in his new role. Drawing on more than 30 years of insurance industry experience, McGuire has served as EVP at National General Insurance and CO-CEO of PEAK6 Ins ...

Core Viewpoint - TWFG, Inc. will release its financial results for Q4 2025 on February 25, 2026, after market close, with a conference call scheduled for February 26, 2026, at 9:00 a.m. Central Time [1] Group 1 - The financial results announcement is part of TWFG's commitment to transparency and communication with investors [1] - The conference call will provide insights into the company's performance and future outlook [1] - A live webcast of the call will be available on TWFG's Investor Relations website, encouraging participants to register in advance [2] Group 2 - TWFG, Inc. is recognized as a leading insurance distribution platform, offering innovative and personalized insurance solutions across the United States [3] - The company operates on a scalable, technology-enabled platform that supports a sophisticated network of retail branch agencies and MGA agents [3] - TWFG aims to create sustainable growth and long-term value for its stakeholders [3]

Core Insights - Giverny Capital Asset Management's portfolio returned 0.01% in Q4 2025, underperforming the S&P 500's 2.66% return, and YTD returns were 12.58% compared to the Index's 17.88% [1] - The firm faced challenges due to its underweight in large technology stocks and overweight in smaller niche leaders, despite strong earnings growth and capital returns from portfolio companies [1] - The market's focus on AI investments has overshadowed the actual benefits of portfolio companies, leading to performance issues [1] Company Focus: TWFG, Inc. - TWFG, Inc. (NASDAQ:TWFG) is an independent distribution platform for personal and commercial insurance products, with a market capitalization of $1.4 billion [2] - As of January 30, 2026, TWFG's stock closed at $24.99, with a one-month return of -11.88% and a 52-week loss of 15.80% [2] - Giverny Capital added to its position in TWFG during Q4 2025, highlighting its operating platform for independent insurance agents, which allows agents to access multiple carriers and back office support [3] - TWFG is majority-owned by its founder, making its shares illiquid, and the company is considered small in the investment landscape [3] Hedge Fund Interest - TWFG, Inc. was held by 12 hedge fund portfolios at the end of Q3 2025, a decrease from 21 in the previous quarter, indicating reduced interest among hedge funds [4] - While TWFG is acknowledged as a potential investment, the firm believes that certain AI stocks present greater upside potential and lower downside risk [4]

Core Viewpoint - TWFG, Inc. shows a significantly improving earnings outlook, making it a solid choice for investors as analysts continue to raise earnings estimates for the company [1][3]. Estimate Revisions - The rising trend in earnings estimate revisions reflects growing analyst optimism about TWFG's earnings prospects, which is expected to positively influence its stock price [2]. - The Zacks Rank system indicates that stocks with strong earnings estimate revisions tend to outperform, with Zacks 1 Ranked stocks averaging a +25% annual return since 2008 [3]. Current-Quarter Estimate - For the current quarter, TWFG is expected to earn $0.18 per share, representing a year-over-year decline of -5.3%. However, the Zacks Consensus Estimate has increased by 23.08% over the last 30 days due to three upward revisions and no negative revisions [7]. Current-Year Estimate - For the full year, TWFG is projected to earn $0.78 per share, reflecting a +32.2% increase from the previous year. The consensus estimate has risen by 13.93% as four estimates have been revised upward with no negative revisions [8][9]. Zacks Rank - TWFG currently holds a Zacks Rank 2 (Buy), indicating promising estimate revisions that can help investors make informed decisions [10]. Stock Performance - TWFG shares have increased by 9.7% over the past four weeks, suggesting strong investor confidence in its earnings growth prospects [11].

Core Viewpoint - TWFG, Inc. has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Company Performance Indicators - TWFG, Inc. is expected to earn $0.78 per share for the fiscal year ending December 2025, with no year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for TWFG, Inc. has increased by 12.6%, indicating a positive trend in earnings estimates [8]. Zacks Rating System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of TWFG, Inc. to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

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]