Financial Data and Key Metrics Changes - Total revenue grew by 16.6% to $53.8 million, with organic revenue growth of 14.3% [4][12] - Adjusted EBITDA increased by 35.3% year over year to $12.2 million, with adjusted EBITDA margin expanding to 22.6% compared to 19.5% in the prior year [15] - Net income for the quarter was $6.9 million, up 3.4% year over year [15] Business Line Data and Key Metrics Changes - Total written premiums rose by 15.5% to $371 million, with insurance services growing by 14.7% and TWFG MGA growing by 20.1% [10] - New business growth was 26% or $18.4 million, while renewal business growth was 12.5% or $31.3 million [10] - Consolidated written premium retention decreased to 88% from 94% in the prior year [11] Market Data and Key Metrics Changes - The personal lines market continues to soften, with stable carrier capacity in most regions [6] - The addition of GEICO to the private passenger auto portfolio is expected to enhance growth opportunities [7] - Retention rates have normalized to the historic average of 88% as markets open up for growth [7] Company Strategy and Development Direction - The company is focused on expanding its national footprint and investing in agent success while maintaining operational efficiency [18] - A robust M&A pipeline and $196 million in cash on hand provide significant balance sheet flexibility for future investments [18] - The company is adjusting its 2025 guidance upward, expecting organic revenue growth of 12% to 16% and total revenues between $240 million and $255 million [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and highlighted increased demand for insurance options [17] - The company is well-positioned to support clients through economic transitions, emphasizing the value of a trusted local adviser [17] - Future public company expenses are anticipated as the company complies with long-term obligations [20] Other Important Information - The company added 17 new branch locations during the quarter, aligning with acquisition expectations for revenue and EBITDA [5] - The onboarding of new agents typically takes two to three years to reach full productivity [5] Q&A Session Summary Question: Are first quarter expenses fully loaded for public company costs? - Management indicated that future public company expenses will arise as compliance with internal audit functions and other obligations develops over time [20] Question: What gives comfort that retention has bottomed out? - Management noted that the 88% premium retention number aligns with their long-term average and reflects the ability to shift clients to favorable pricing [22][24] Question: How would you characterize commission rates in the quarter? - Management described commission rates as stabilizing, with new business incentives expected to enhance compensation [29][30] Question: Was the 17 branch additions a gross or net number? - Management confirmed that the 17 agencies were gross additions, not net [32] Question: Is there a specific revenue or EBITDA contribution from acquisitions in the full year guidance? - Management stated that the current guidance aligns with the analyst model, with confidence in achieving projected revenue from acquisitions [35] Question: Why does TWFG's agent addition process take longer compared to others? - Management explained that TWFG recruits experienced agents who often come from captive relationships, which limits their ability to bring existing clientele [44] Question: How significant is the addition of GEICO to the portfolio? - Management emphasized that GEICO is a significant addition, providing favorable pricing and commission rates that stabilize the overall commission structure [47] Question: What is the outlook for the Texas homeowners market? - Management expressed optimism for the Texas market, anticipating improved conditions as reinsurance renewals clear [68] Question: Will the company need to spend more on recruiting in the future? - Management acknowledged the potential need for increased resources for recruiting, especially as new geographies are opened [84]

Financial Data and Key Metrics Changes - Total revenue grew by 16.6% to $53.8 million, with organic revenue growth of 14.3% [4][13] - Adjusted EBITDA increased by 35.3% year over year to $12.2 million, with adjusted EBITDA margin expanding to 22.6% from 19.5% [16] - Net income for the quarter was $6.9 million, up 3.4% year over year, while adjusted net income rose 14.3% to $9.2 million [16] Business Line Data and Key Metrics Changes - Total written premiums rose by 15.5% to $371 million, with insurance services growing by 14.7% and TWFG MGA increasing by 20.1% [10][12] - New business growth was 26% or $18.4 million, while renewal business growth was 12.5% or $31.3 million [11] - The retention rate for written premiums decreased to 88% from 94% in the prior year period [12] Market Data and Key Metrics Changes - The personal lines market is softening, with stable carrier capacity in most regions [6] - The private passenger auto market has normalized, with expectations of moderate rate increases in 2025 [7] - Retention rates have normalized to the historic average of 88% as markets open up for growth [7] Company Strategy and Development Direction - The company is focused on expanding its national footprint, investing in agent success, and maintaining operational efficiency [19] - TWFG has a robust M&A pipeline and plans to continue investing in growth opportunities [19] - The company is adjusting its 2025 guidance upward, expecting organic revenue growth of 12% to 16% and total revenues between $240 million and $255 million [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and highlighted increased demand for insurance options [18] - The company is well-positioned to support clients through economic transitions, emphasizing the value of a trusted local adviser [18] - Future public company expenses are anticipated as the company complies with long-term obligations [21] Other Important Information - The company added 17 new branch locations during the quarter and completed two corporate acquisitions [5] - Interest income has been moved from the revenue line to other income for better comparability [9] Q&A Session Summary Question: Are the first quarter expenses fully loaded for public company costs? - Management indicated that future public company expenses will arise as compliance requirements evolve [21] Question: What gives comfort that retention has bottomed out? - Management noted that the 88% retention rate aligns with their long-term average and is supported by market conditions [24] Question: How are commission rates characterized in the quarter? - Management described commission rates as stabilizing, with potential upward skew due to new business incentives [31] Question: Was the 17 branch additions a gross or net number? - Management confirmed that the 17 additions were gross and higher than pre-disruption averages [35] Question: Is there a specific revenue or EBITDA contribution from acquisitions in the guidance? - Management stated that the guidance reflects the original analyst model, with confidence in achieving projected results from acquisitions [36] Question: Why does TWFG's agent onboarding take longer compared to others? - Management explained that agents often come from captive relationships and face non-compete clauses, requiring time to build a client base [44] Question: How significant is the addition of GEICO to the portfolio? - Management emphasized that GEICO provides favorable pricing and commission rates, enhancing retention and stability in the market [50] Question: What is the outlook for the Texas homeowners market? - Management expects favorable conditions in Texas, with improved capacity and economic conditions [70]

Core Insights - TWFG, Inc. reported a strong first quarter performance with total revenues increasing by 16.6% year-over-year to $53.8 million and total written premium rising by 15.5% to $371.0 million [1][5][8] - The company achieved an organic revenue growth rate of 14.3%, indicating robust new business production and effective agent productivity [1][6][8] - Adjusted EBITDA increased by 35.3% to $12.2 million, with an adjusted EBITDA margin expanding to 22.6% [1][11][38] Financial Performance - Net income for the quarter was $6.9 million, slightly up from $6.6 million in the prior year, resulting in a net income margin of 12.7% [1][10][11] - Adjusted net income rose to $9.2 million, with an adjusted net income margin of 17.1% [1][10][11] - Cash flow from operating activities improved to $15.6 million, compared to $9.8 million in the previous year [11] Business Expansion - The company expanded its national footprint by acquiring two new corporate locations and adding 17 branches across the U.S. [4] - The newly onboarded agents are expected to take two to three years to reach full productivity, indicating a long-term growth strategy [4] Key Performance Indicators - Total written premium for the first quarter was $371.0 million, with insurance services contributing significantly [32][39] - The breakdown of total written premium showed that personal lines accounted for 80% and commercial lines for 20% [39] - The company reported a written premium retention rate of 88% for insurance services and 82% for TWFG MGA [39]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ___________________________________ OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission file number 001-42177 ___________________________________ TWFG, Inc. (Exact name of registrant as specified in its charter) ___________________________________ Delaware 99-0603906 (State or other jurisdictio ...

THE WOODLANDS, Texas, May 05, 2025 (GLOBE NEWSWIRE) -- TWFG, Inc. (NASDAQ: TWFG), a leading independent insurance distribution platform, announced today that it will release its financial results for the first quarter ended March 31, 2025, after the market closes on Tuesday, May 13, 2025. The Company will host a conference call to discuss its financial results the following morning, Wednesday, May 14, 2025, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). TO ACCESS THE CALL BY PHONE, PARTICIPANTS CAN REG ...

THE WOODLANDS, Texas, May 01, 2025 (GLOBE NEWSWIRE) -- TWFG, Inc. (“TWFG”, the “Company”), a high-growth insurance distribution company, announced today the acquisition of two agencies, one in Texas and one in North Carolina, and the hiring of Denise Davis as Vice President of Retail Operations. Denise Davis Insurance, located in Tomball, Texas, converted to a TWFG Corporate Branch on April 1, 2025, after nearly 23 years as an independent TWFG Branch. This move allows Denise to take on the role of Vice Pres ...

Financial Performance - For the year ended December 31, 2024, the company generated revenue of $203.8 million, representing year-over-year growth of 18.4%[27] - Adjusted EBITDA for the year ended December 31, 2024, was $45.3 million, with an Adjusted Net Income of $33.0 million[27] - The compound annual growth rate (CAGR) in Total Written Premium and total revenue from January 1, 2019, through December 31, 2024, was 19.2%[27] - Organic Revenue Growth was 14.5% year-over-year, driven by the success in attracting productive agents and retaining renewal business[27] - The company has successfully exceeded $1 billion in Total Written Premium for each of the last three years[30] Market Position and Operations - The company's Total Written Premium in the United States was approximately $968.7 billion as of 2023, making it the eighth largest personal lines agency and the 27th largest agency across all lines of business[26] - The company operates over 500 Branches and more than 2,100 MGA Agencies across 42 states, enhancing its distribution capabilities[30] - The company has a significant geographic presence, with 52.5% of Total Written Premiums concentrated in Texas, 16.2% in California, and 13.9% in Louisiana[55] - The company operates through two primary offerings: Insurance Services (82% of 2024 Revenue) and TWFG MGA (17% of 2024 Revenue)[43][53] M&A Strategy - The company aims to be a preferred partner for M&A targets in a fragmented industry with approximately 39,000 independent agencies and brokerages as of 2024[76] - The company’s M&A strategy focuses on acquiring high-quality targets that enhance capabilities and can be integrated into its ecosystem[76] - The company offers upfront payment structures in its M&A deals, providing sellers with certainty while limiting contingent liabilities[77] - The company enables its branches to expand their books of business through M&A support, allowing them to acquire smaller agencies and enhance service offerings[75] Growth and Development - The company supports organic growth for its branches by providing training, centralized resources, and automated marketing tools to maintain and grow client relationships[74] - The distribution platform is designed to support TWFG Agencies with resources, technology, and training, enhancing their ability to grow and serve clients[31] - The company aims to attract experienced agents to its platform, enhancing growth and expertise while facilitating succession planning[71] - The company is strategically expanding its product portfolio through specialty distribution channels, enhancing its offerings beyond personal lines products[73] Financial Position and Cash Management - As of December 31, 2024, the company had $195.8 million in cash and cash equivalents, earning interest income of $4.8 million for the year[475] - The company had approximately $5.9 million under its Term Loan Credit Agreement as of December 31, 2024, with previous borrowings of $8.4 million and $41.0 million under the Term Loan Credit Agreement and Revolving Facility, respectively, as of December 31, 2023[476] - The company repaid the outstanding balances of its Term Loan B and Revolving Facility in full as of December 31, 2024[476] - The fair values of cash and cash equivalents as of December 31, 2024 and 2023 approximated their respective carrying values due to their short-term duration, indicating minimal market risk[474] Regulatory and Compliance - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to take advantage of specified exemptions from certain regulatory requirements[102] - The company is classified as an emerging growth company and has elected to use the extended transition period for complying with new or revised accounting standards[104] - The company may cease to be an emerging growth company upon reaching $1.235 billion in annual revenue or issuing more than $1.0 billion of non-convertible debt over a three-year period[103] Employee and Management - As of December 31, 2024, the company employed approximately 293 people in the U.S. and 68 in the Philippines, with no union representation[95] - The company’s management team has an average of over 25 years of insurance industry experience, supporting its growth strategy[70] Industry Insights - Insurance premium pricing within the P&C insurance industry is cyclical, influenced by underwriting capacity and economic conditions, with terms "soft market" and "hard market" used to describe these cycles[473] - The company has experienced industry premium growth of 14.3% in personal lines and 7.2% in commercial lines in 2023[41] IPO and Market Activity - The company completed an IPO on July 19, 2024, issuing 11,000,000 shares of Class A Common Stock at an initial price of $17.00 per share[98] - The SEC maintains an internet site that contains reports and information regarding issuers that file electronically, which can be accessed for further details[106]

– Adjusted EBITDA* increased 91.7% for the quarter over the prior year period to $13.8 million – THE WOODLANDS, Texas, March 19, 2025 (GLOBE NEWSWIRE) -- TWFG, Inc. ("TWFG", the "Company" or "we") (NASDAQ: TWFG), a high-growth insurance distribution company, today announced results for the fourth quarter and the full year ended December 31, 2024. Fourth Quarter 2024 Highlights – Total Revenues increased 30.8% for the quarter over the prior year period to $51.7 million – – Total Written Premium increased 20. ...

Core Viewpoint - TWFG, Inc. is set to release its fourth quarter and full-year 2024 financial results on March 19, 2025, after market close, followed by a conference call on March 20, 2025, at 9:00 AM Central Time [1] Company Overview - TWFG is a leading independent distribution platform for personal and commercial insurance in the United States, representing hundreds of insurance carriers [2] - The company provides innovative insurance solutions through a network of agents, carriers, and technology-driven distribution models [2] Conference Call Details - The conference call will be accessible via a live webcast on TWFG's Investor Relations website, with a replay available for a limited time after the event [1][3] - Participants can register for phone access to the call through a provided link to receive dial-in details [3]

Financial Performance - Preliminary unaudited financial highlights for FY 2024 indicate a total written premium of approximately $1,476 million, reflecting a growth of 16.5% to 18.2% compared to the previous year[33] - Adjusted EBITDA for Q3 2024 is projected to be $31.5 million, with an adjusted EBITDA margin of 20.4%, showing consistent margin expansion[35] - The company has achieved a total revenue growth of 21.5% in Q3 2024, with adjusted free cash flow reaching $11.7 million[33] - Organic revenue growth for the three months ended September 30, 2024, was reported at 20.2%, with total revenue growth rate at 23.8%[67] - Total written premium for the nine months ended September 30, 2024, reached $1,115 million, compared to $946.6 million for the same period in 2023, reflecting a significant increase[66] - Total revenues for Q3 2024 reached $54.640 billion, a 14.0% increase from $47.710 billion in Q3 2023[69] - Net income for Q3 2024 was $6.893 billion, down 9.4% from $7.608 billion in Q3 2023, resulting in a net income margin of 12.6%[69] - Adjusted EBITDA for Q3 2024 was $11.738 billion, compared to $9.048 billion in Q3 2023, reflecting a margin increase to 21.5% from 19.0%[69] - Commission income for Q3 2024 was $48.240 billion, up from $43.993 billion in Q3 2023, contributing significantly to total revenues[72] - Operating income for Q3 2024 was $7.745 billion, slightly down from $7.902 billion in Q3 2023[72] - Adjusted free cash flow for Q3 2024 was $13.440 billion, indicating strong cash generation capabilities[70] - Interest expense increased to $411 million in Q3 2024 from $295 million in Q3 2023, reflecting higher borrowing costs[72] - Total operating expenses for Q3 2024 were $46.895 billion, compared to $39.808 billion in Q3 2023, primarily driven by increased commission and salary expenses[72] - The company reported a basic earnings per share of $0.08 for Q3 2024, consistent with Q3 2023[72] - The weighted average shares of common stock outstanding were 14,722,685 for Q3 2024, unchanged from the previous year[72] Business Model and Strategy - The business model is designed to capture a significant shift towards independent distribution channels, with independent agencies increasing their market share from 26% to 38% over the past decade[10] - The product mix comprises approximately 78% personal lines and 22% commercial lines as of December 31, 2023, indicating a strong focus on personal insurance products[24] - TWFG serves over 2,000 agencies across 40+ states, providing access to more than 300 national, regional, and local insurance carriers, MGAs, and programs[21] - TWFG's diversified revenue model includes approximately 80% of total revenue coming from insurance services, highlighting the importance of this segment[29] - The company addresses key pain points for agencies by offering a comprehensive suite of products and services, enhancing agency autonomy and operational efficiency[13] - TWFG's strategic focus on technology and M&A opportunities aims to further strengthen its market position and drive future growth[8] - The business model is designed to capture a secular shift from captive distribution, with a focus on independent agencies and differentiated solutions[57] Acquisition and Growth Opportunities - The company deployed $40.8 million in acquisitions year-to-date in 2024, following $19.4 million in 2023 and $7.9 million in 2022, indicating a robust acquisition strategy[46] - Approximately 35% of the 40,000 independent U.S. agencies are expected to be sold in the next five years, creating significant acquisition opportunities[42] - The company maintains a strong balance sheet and a disciplined approach to acquisitions, focusing on cultural compatibility and attractive loss ratios[45] - The company has a proven track record of successful acquisitions across various specialties and geographies, enhancing its capabilities and geographic diversification[46] Revenue Sources - The agency-in-a-box model generated $261.6 million in revenue for the three months ended September 30, 2024, accounting for 65% of total insurance services revenue[66] - The total revenue from TWFG MGA for the nine months ended September 30, 2024, was $164.6 million, up from $150.2 million in 2023[66] Market Trends - The P&C insurance market has exhibited a consistent growth rate, with a CAGR of 5.8% from 2013 to 2023[16] - The retention rate for insurance services was reported at 89% for the three months ended September 30, 2024, compared to 98% for the same period in 2023[66]