Core Insights - The company reported a strong second quarter performance with total revenues increasing by 13.8% year-over-year to $60.3 million and total written premiums rising by 14.4% to $450.3 million [1][5][10] - Organic revenue growth rate for the quarter was 10.6%, driven by robust new business production and normalized retention levels [1][6][10] - Adjusted EBITDA increased by 40.7% to $15.1 million, with an adjusted EBITDA margin expanding to 25.1% [1][11][31] Financial Performance - Net income for the quarter was $9.0 million, compared to $6.9 million in the prior year, resulting in a net income margin of 14.9% [1][10][43] - Adjusted net income rose by 17.3% to $11.5 million, with an adjusted net income margin of 19.1% [1][10][43] - Total revenues for the six months ended June 30, 2025, were $114.1 million, representing a 15.1% increase compared to the same period in the prior year [5][10] Growth Strategy - The company completed four acquisitions during the quarter and onboarded nine new retail branches, expanding into Kentucky [4][10] - The acquisitions added five new corporate locations across Texas, Louisiana, and North Carolina, enhancing market presence in the eastern Gulf region [4][10] Operational Metrics - Commission income for the quarter increased by 12.1% to $54.6 million [6][10] - Salaries and employee benefits rose by 39.3% to $9.5 million, reflecting increased headcount and overall business growth [8][10] - Other administrative expenses increased by 44.2% to $5.4 million, indicating investments to support business growth [9][10] Cash Flow and Liquidity - Cash flow from operating activities for the quarter was $9.6 million, compared to $7.4 million in the same period last year [12][43] - As of June 30, 2025, the company had cash and cash equivalents of $159.8 million and full unused capacity on its revolving credit facility of $50.0 million [13][39]

[Company Overview](index=1&type=section&id=1.%20Company%20Overview) TWFG's Q2 2025 performance, strategic growth initiatives, and its core business as an independent insurance distribution platform are highlighted [Second Quarter 2025 Highlights](index=1&type=section&id=1.1.%20Second%20Quarter%202025%20Highlights) TWFG demonstrated strong performance in Q2 2025 with significant year-over-year growth in total revenue, total written premium, and adjusted EBITDA, alongside an improved adjusted EBITDA margin Key Financial Highlights (Q2 2025) | Metric | Amount ($ million) | Year-over-Year Growth | Notes | | :-------------------- | :----------------- | :--------- | :--- | | Total Revenue | $60.3 | +13.8% | | | Total Written Premium | $450.3 | +14.4% | | | Organic Revenue Growth Rate | 10.6% | - | | | Net Income | $9.0 | - | | | Adjusted EBITDA | $15.1 | +40.7% | | | Adjusted EBITDA Margin | 25.1% | - | Improved from 20.3% in prior year period | [CEO Commentary and Strategic Initiatives](index=1&type=section&id=1.2.%20CEO%20Commentary%20and%20Strategic%20Initiatives) CEO Gordy Bunch highlighted strong Q2 performance driven by strategic execution and business model strengths, with distribution platform expansion through acquisitions and new retail branches - CEO Gordy Bunch stated that the company's strong second-quarter results reflect continued strategic execution and the strength of its business model[4](index=4&type=chunk) - The company continued to grow its distribution platform through recruiting and M&A activities, completing **four acquisitions**, adding **nine new retail branches**, and expanding into Kentucky this quarter[5](index=5&type=chunk) - Acquisitions added **five new corporate locations** (one each in Texas, Louisiana, North Carolina) and a new MGA (Managing General Agent) property program in Florida, enhancing the company's market presence in the East Gulf region[5](index=5&type=chunk) [About TWFG](index=3&type=section&id=1.3.%20About%20TWFG) TWFG is a high-growth independent distribution platform providing personal and commercial insurance across the US, partnering with numerous carriers - TWFG is a high-growth independent insurance distribution platform providing personal and commercial insurance across the United States[20](index=20&type=chunk) - The company represents hundreds of insurance carriers to underwrite personal and commercial lines risks[20](index=20&type=chunk) [Second Quarter 2025 Financial Results](index=1&type=section&id=2.%20Second%20Quarter%202025%20Financial%20Results) This section details TWFG's Q2 2025 financial performance, covering revenue growth, expense analysis, profitability, and cash flow [Revenue Performance](index=1&type=section&id=2.1.%20Revenue%20Performance) TWFG achieved strong Q2 2025 revenue growth, with total revenue up 13.8% and organic revenue up 10.6%, driven by new business and stable client retention Revenue Performance (Q2 2025) | Metric | Q2 2025 ($ million) | Q2 2024 ($ million) | Year-over-Year Change | | :-------------------- | :------------------------- | :------------------------- | :--------- | | Total Revenue | $60.3 | $53.0 | +13.8% | | Commission Revenue | $54.6 | $48.7 | +12.1% | | Total Written Premium | $450.3 | $393.6 | +14.4% | | Organic Revenue | $54.1 | $48.4 | +11.8% | | Organic Revenue Growth Rate | 10.6% | - | - | - For the six months ended June 30, 2025, total revenue was **$114.1 million**, representing a **15.1% year-over-year increase**[7](index=7&type=chunk) - For the six months ended June 30, 2025, organic revenue was **$103.3 million**, representing a **14.9% year-over-year increase**, with an organic revenue growth rate of **12.4%**[8](index=8&type=chunk) [Expense Analysis](index=2&type=section&id=2.2.%20Expense%20Analysis) Q2 2025 operating expenses significantly increased due to higher compensation and benefits, including equity compensation and acquisition-related costs, and other G&A expenses supporting growth and public company operations Expense Analysis (Q2 2025) | Expense Category | Q2 2025 ($ million) | Q2 2024 ($ million) | Year-over-Year Change | | :-------------------------- | :------------------------- | :------------------------- | :--------- | | Commission Expense | $34.2 | $32.0 | +6.8% | | Compensation and Employee Benefits | $9.5 | $6.8 | +39.3% | | Other General and Administrative Expenses | $5.4 | $3.7 | +44.2% | - The increase in compensation and employee benefits includes **$1.5 million** in equity-based compensation expense and **$1.2 million** in compensation and employee benefits related to corporate branch acquisitions in 2025[10](index=10&type=chunk) - The increase in other general and administrative expenses reflects investments to support business growth and costs incurred as a public company[11](index=11&type=chunk) [Profitability and Earnings](index=1&type=section&id=2.3.%20Profitability%20and%20Earnings) Q2 2025 saw improved net income and adjusted net income with expanding margins, alongside substantial adjusted EBITDA growth and margin enhancement reflecting operational efficiency Profitability and Earnings (Q2 2025) | Metric | Q2 2025 ($ million) | Q2 2024 ($ million) | Year-over-Year Change | | :-------------------- | :------------------------- | :------------------------- | :--------- | | Net Income | $9.0 | $6.9 | +30.4% | | Net Income Margin | 14.9% | 13.1% | +1.8 pp | | Adjusted Net Income | $11.5 | $9.8 | +17.3% | | Adjusted Net Income Margin | 19.1% | 18.5% | +0.6 pp | | Adjusted EBITDA | $15.1 | $10.8 | +40.7% | | Adjusted EBITDA Margin | 25.1% | 20.3% | +4.8 pp | - Diluted earnings per share for Q2 2025 was **$0.13**, and adjusted diluted earnings per share was **$0.20**[6](index=6&type=chunk) [Cash Flow from Operations](index=2&type=section&id=2.4.%20Cash%20Flow%20from%20Operations) Q2 2025 operating cash flow increased, while adjusted free cash flow decreased primarily due to distributions made to pre-IPO members Cash Flow from Operations (Q2 2025) | Metric | Q2 2025 ($ million) | Q2 2024 ($ million) | Year-over-Year Change | | :-------------------------- | :------------------------- | :------------------------- | :--------- | | Cash Flow from Operations | $9.6 | $7.4 | +29.7% | | Adjusted Free Cash Flow | $2.9 | $3.7 | -21.6% | - The decrease in adjusted free cash flow was primarily due to distributions made to pre-IPO members[14](index=14&type=chunk) [Liquidity and Capital Resources](index=2&type=section&id=3.%20Liquidity%20and%20Capital%20Resources) This section outlines TWFG's liquidity position and capital resources, including cash reserves, credit facilities, and outstanding debt [Liquidity and Capital Resources Overview](index=2&type=section&id=3.1.%20Liquidity%20and%20Capital%20Resources%20Overview) As of June 30, 2025, TWFG maintained a strong liquidity position with ample cash reserves, a $50 million undrawn revolving credit facility, and a relatively low term note balance - As of June 30, 2025, the company had **$159.8 million** in cash and cash equivalents[15](index=15&type=chunk) - The company had the full **$50.0 million** available under its revolving credit facility as of June 30, 2025[15](index=15&type=chunk) - The outstanding term note balance was **$5.0 million** as of June 30, 2025[15](index=15&type=chunk) [2025 Updated Outlook](index=2&type=section&id=4.%202025%20Updated%20Outlook) This section provides TWFG's updated financial guidance for the full fiscal year 2025, including revenue and profitability expectations [Full-Year 2025 Guidance](index=2&type=section&id=4.1.%20Full-Year%202025%20Guidance) TWFG updated its full-year 2025 guidance, projecting continued growth in total revenue and organic revenue growth rate, alongside a healthy adjusted EBITDA margin Full-Year 2025 Guidance | Metric | FY 2025 Guidance | | :---------------------- | :---------------------- | | Total Revenue | $240 million to $255 million | | Organic Revenue Growth Rate | 11% to 14% | | Adjusted EBITDA Margin | 21% to 23% | - The company is unable to provide a reconciliation to the most directly comparable GAAP measures without unreasonable effort due to the inherent difficulty in forecasting the timing and quantifying certain amounts necessary for such reconciliations of items that have not yet occurred[17](index=17&type=chunk) [Non-GAAP Financial Measures and Key Performance Indicators](index=1&type=section&id=5.%20Non-GAAP%20Financial%20Measures%20and%20Key%20Performance%20Indicators) This section defines TWFG's non-GAAP financial measures and key performance indicators, along with their reconciliations to GAAP equivalents [Non-GAAP Financial Measures Definitions](index=1&type=section&id=5.1.%20Non-GAAP%20Financial%20Measures%20Definitions) This section defines TWFG's key non-GAAP financial measures, including organic revenue, adjusted net income, adjusted EBITDA, and adjusted free cash flow, explaining their calculation and relevance for performance evaluation - Organic Revenue is total revenue (the most directly comparable GAAP measure) excluding or adjusting for contingent revenue, non-policy fee revenue, other revenue, and revenue from acquired businesses with annualized revenue greater than **$0.5 million** that have not met the 12-month hold period; as of Q1 2025, the calculation of organic revenue has been revised to include policy fee revenue[24](index=24&type=chunk) - Adjusted Net Income is net income (the most directly comparable GAAP measure) before amortization, non-recurring or non-operating income and expenses (including equity-based compensation), and assuming a single class of stock (Class A) with no non-controlling interest[26](index=26&type=chunk) - Adjusted EBITDA is EBITDA adjusted for equity-based compensation, interest income, other non-operating, and certain non-recurring items; EBITDA is defined as net income (the most directly comparable GAAP measure) before interest, income taxes, depreciation, and amortization[30](index=30&type=chunk) - Adjusted Free Cash Flow is defined 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[33](index=33&type=chunk) [Key Performance Indicators Definitions](index=5&type=section&id=5.2.%20Key%20Performance%20Indicators%20Definitions) TWFG's primary KPI is total written premium, representing the aggregate current premium bound with carriers, considered a fundamental driver of most company revenue - Total Written Premium represents the aggregate current premium bound with carriers (net of cancellations) during any reporting period[35](index=35&type=chunk) - The company uses total written premium as a key performance indicator for planning, monitoring, and evaluating performance because it is considered a fundamental driver of most of the company's revenue[35](index=35&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=10&type=section&id=5.3.%20Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of TWFG's non-GAAP financial measures to their most directly comparable GAAP metrics for the three and six months ended June 30, 2025 and 2024, using revised and historical methodologies as applicable [Organic Revenue and Organic Revenue Growth Rate Reconciliation](index=10&type=section&id=5.3.1.%20Organic%20Revenue%20and%20Organic%20Revenue%20Growth%20Rate%20Reconciliation) This reconciliation details adjustments made to total revenue to derive organic revenue, highlighting the impact of acquisitions, contingent revenue, and other revenue components Organic Revenue and Organic Revenue Growth Rate Reconciliation ($ thousand) | Metric | Q2 2025 (Revised) | Q2 2024 (Revised) | H1 2025 (Revised) | H1 2024 (Revised) | | :-------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Total Revenue | $60,308 | $53,011 | $114,131 | $99,155 | | Acquisition Adjustment | $(1,524) | $(1,217) | $(2,133) | $(2,684) | | Contingent Revenue | $(2,033) | $(1,258) | $(3,696) | $(2,334) | | Fee Revenue | $(3,329) | $(2,689) | $(6,340) | $(4,921) | | Policy Fee Revenue | $1,082 | $933 | $2,134 | $1,446 | | Other Revenue | $(384) | $(402) | $(748) | $(693) | | **Organic Revenue** | **$54,120** | **$48,378** | **$103,348** | **$89,969** | | Organic Revenue Growth Rate | 10.6% | 14.6% | 12.4% | 13.6% | [Adjusted Net Income and Adjusted Net Income Margin Reconciliation](index=11&type=section&id=5.3.2.%20Adjusted%20Net%20Income%20and%20Adjusted%20Net%20Income%20Margin%20Reconciliation) This reconciliation details adjustments to net income, including income tax expense, acquisition-related costs, equity-based compensation, and amortization, to derive adjusted net income and its corresponding margin Adjusted Net Income and Adjusted Net Income Margin Reconciliation ($ thousand) | Metric | Q2 2025 (Revised) | Q2 2024 (Revised) | H1 2025 (Revised) | H1 2024 (Revised) | | :-------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Net Income | $9,000 | $6,918 | $15,853 | $13,547 | | Income Tax Expense | $620 | — | $1,276 | — | | Acquisition-Related Costs | $19 | — | $52 | — | | Equity-Based Compensation | $1,515 | — | $2,719 | — | | Other Non-Recurring Items | $10 | — | $10 | $(1,477) | | Amortization Expense | $3,762 | $2,904 | $6,971 | $5,851 | | Adjusted Pre-Tax Income | $14,926 | $9,822 | $26,881 | $17,921 | | Adjusted Income Tax Expense | $(3,407) | — | $(6,135) | — | | **Adjusted Net Income** | **$11,519** | **$9,822** | **$20,746** | **$17,921** | | Net Income Margin | 14.9% | 13.1% | 13.9% | 13.7% | | Adjusted Net Income Margin | 19.1% | 18.5% | 18.2% | 18.1% | [Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation](index=12&type=section&id=5.3.3.%20Adjusted%20EBITDA%20and%20Adjusted%20EBITDA%20Margin%20Reconciliation) This reconciliation shows adjustments to net income to calculate EBITDA and Adjusted EBITDA, including interest, taxes, depreciation, amortization, and other non-recurring items Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation ($ thousand) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------- | :---------------- | :---------------- | :---------------- | :---------------- | | Net Income | $9,000 | $6,918 | $15,853 | $13,547 | | Interest Expense | $68 | $872 | $151 | $1,714 | | Interest Income | $(1,751) | $(255) | $(3,614) | $(424) | | Depreciation and Amortization | $3,901 | $2,968 | $7,260 | $5,981 | | Income Tax Expense | $620 | — | $1,276 | — | | **EBITDA** | **$11,838** | **$10,503** | **$20,926** | **$20,818** | | Acquisition-Related Costs | $19 | — | $52 | — | | Equity-Based Compensation | $1,515 | — | $2,719 | — | | Interest Income (Adjustment) | $1,751 | $255 | $3,614 | $424 | | Other Non-Recurring Items | $10 | — | $10 | $(1,477) | | **Adjusted EBITDA** | **$15,133** | **$10,758** | **$27,321** | **$19,765** | | Adjusted EBITDA Margin | 25.1% | 20.3% | 23.9% | 19.9% | [Adjusted Free Cash Flow Reconciliation](index=12&type=section&id=5.3.4.%20Adjusted%20Free%20Cash%20Flow%20Reconciliation) This reconciliation adjusts cash flow from operations by deducting capital expenditures, tax distributions, and acquisition-related costs to derive adjusted free cash flow Adjusted Free Cash Flow Reconciliation ($ thousand) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------- | :---------------- | :---------------- | :---------------- | :---------------- | | Cash Flow from Operations | $9,615 | $7,400 | $25,260 | $17,154 | | Purchases of Property and Equipment | $(44) | $(39) | $(59) | $(47) | | Tax Distributions to Members | $(6,728) | $(3,685) | $(8,752) | $(6,104) | | Acquisition-Related Costs | $19 | — | $52 | — | | **Adjusted Free Cash Flow** | **$2,862** | **$3,676** | **$16,501** | **$11,003** | [Adjusted Diluted Earnings Per Share Reconciliation](index=13&type=section&id=5.3.5.%20Adjusted%20Diluted%20Earnings%20Per%20Share%20Reconciliation) This reconciliation adjusts diluted EPS for the impact of LLC unit conversion to Class A common stock and other adjusted net income adjustments, providing a comparable operating performance measure Adjusted Diluted Earnings Per Share Reconciliation | Metric | Q2 2025 | H1 2025 | | :------------------------------------------------ | :-------- | :-------- | | Diluted Earnings Per Share of Common Stock | $0.13 | $0.22 | | Add: Impact of all LLC Units converted to Class A Common Stock | $0.03 | $0.06 | | Add: Adjustments to Adjusted Net Income | $0.04 | $0.09 | | **Adjusted Diluted Earnings Per Share** | **$0.20** | **$0.37** | [Disaggregation of Revenues and Expenses by Offering](index=8&type=section&id=5.4.%20Disaggregation%20of%20Revenues%20and%20Expenses%20by%20Offering) This section details the disaggregation of TWFG's total revenue, commission revenue, fee revenue, and commission expense by business type, including Agency-in-a-Box, Corporate Branches, and TWFG MGA Q2 2025 Total Revenue by Offering ($ thousand) | Offering Type | Amount | | :---------------- | :----- | | Insurance Services | $50,709 | | - Agency-in-a-Box | $39,316 | | - Corporate Branches | $11,393 | | TWFG MGA | $9,233 | Q2 2025 Commission Revenue by Offering ($ thousand) | Offering Type | Amount | | :---------------- | :----- | | Insurance Services | $47,569 | | - Agency-in-a-Box | $36,275 | | - Corporate Branches | $11,294 | | TWFG MGA | $6,993 | Q2 2025 Fee Revenue by Primary Source ($ thousand) | Fee Source | Amount | | :--------- | :----- | | Policy Fees | $1,082 | | Branch Fees | $1,416 | | Licensing Fees | $559 | | TPA Fees | $272 | Q2 2025 Commission Expense by Offering ($ thousand) | Offering Type | Amount | | :---------------- | :----- | | Insurance Services | $29,581 | | - Agency-in-a-Box | $28,013 | | - Corporate Branches | $1,568 | | TWFG MGA | $4,544 | [Disaggregation of Total Written Premium](index=14&type=section&id=5.5.%20Disaggregation%20of%20Total%20Written%20Premium) This section disaggregates total written premium by business type (Insurance Services, TWFG MGA), business mix (renewal, new business), and line of business (personal, commercial), offering insights into premium composition and retention rates Q2 2025 Total Written Premium by Offering Type ($ thousand) | Offering Type | Amount | Percentage of Total | | :---------------- | :----- | :----------- | | Insurance Services | $389,397 | 86% | | TWFG MGA | $60,891 | 14% | Q2 2025 Total Written Premium by Business Mix ($ thousand) | Business Mix | Amount | Percentage of Total | | :-------------------------- | :----- | :----------- | | Insurance Services Renewal Business | $301,930 | 67% | | Insurance Services New Business | $87,467 | 19% | | TWFG MGA Renewal Business | $47,366 | 11% | | TWFG MGA New Business | $13,525 | 3% | Q2 2025 Written Premium Retention Rate | Offering Type | Retention Rate | | :---------------- | :----- | | Insurance Services | 90% | | TWFG MGA | 80% | | Consolidated | 89% | Q2 2025 Total Written Premium by Line of Business ($ thousand) | Line of Business | Amount | Percentage of Total | | :----------- | :----- | :----------- | | Personal Lines | $365,409 | 81% | | Commercial Lines | $84,879 | 19% | [Condensed Consolidated Financial Statements (Unaudited)](index=7&type=section&id=6.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents TWFG's unaudited condensed consolidated financial statements, including statements of income and balance sheets [Condensed Consolidated Statements of Income](index=7&type=section&id=6.1.%20Condensed%20Consolidated%20Statements%20of%20Income) The unaudited condensed consolidated statements of income present TWFG's revenues, expenses, and net income for the three and six months ended June 30, 2025 and 2024, with detailed breakdowns of income and expense categories Condensed Consolidated Statements of Income ($ thousand) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------------- | :---------------- | :---------------- | :---------------- | :---------------- | | Total Revenue | $60,308 | $53,011 | $114,131 | $99,155 | | Total Operating Expenses | $52,945 | $45,490 | $101,038 | $84,330 | | Operating Income | $7,363 | $7,521 | $13,093 | $14,825 | | Income Before Income Taxes | $9,620 | $6,918 | $17,129 | $13,547 | | Net Income | $9,000 | $6,918 | $15,853 | $13,547 | | Net Income Attributable to TWFG, Inc. | $1,957 | $— | $3,295 | $— | | Diluted Earnings Per Share | $0.13 | $— | $0.22 | $— | [Condensed Consolidated Balance Sheets](index=9&type=section&id=6.2.%20Condensed%20Consolidated%20Balance%20Sheets) The unaudited condensed consolidated balance sheets provide a snapshot of TWFG's financial position as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and equity Condensed Consolidated Balance Sheets ($ thousand) | Metric | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :-------------- | :---------------- | | Total Current Assets | $208,525 | $241,848 | | Total Assets | $342,849 | $323,428 | | Total Current Liabilities | $45,394 | $39,617 | | Total Liabilities | $53,878 | $48,142 | | Total Stockholders' Equity | $279,210 | $275,286 | - Cash and cash equivalents decreased from **$195.772 million** as of December 31, 2024, to **$159.827 million** as of June 30, 2025[39](index=39&type=chunk) - Net intangible assets significantly increased from **$72.978 million** to **$125.901 million**, reflecting recent acquisitions[39](index=39&type=chunk) [Additional Information](index=3&type=section&id=7.%20Additional%20Information) This section provides supplementary information including conference call details, forward-looking statements, and contact information [Conference Call Information](index=3&type=section&id=7.1.%20Conference%20Call%20Information) TWFG will host a conference call and webcast to discuss Q2 2025 results, with details provided for registration and accessing live and replay versions - The conference call and webcast are scheduled for **10:00 AM ET on August 13, 2025**[19](index=19&type=chunk) - Participants can register for the conference call via the provided link, and the webcast will be available on the TWFG Investor Relations website at investors.twfg.com[19](index=19&type=chunk) [Forward-Looking Statements](index=3&type=section&id=7.2.%20Forward-Looking%20Statements) This section contains a standard disclaimer regarding forward-looking statements, emphasizing inherent risks and uncertainties, and advises readers to consult SEC filings for risk factors - This press release contains "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995, which involve significant risks and uncertainties[21](index=21&type=chunk) - Forward-looking statements are based on current expectations and projections about future events and are not guarantees of future results, activity levels, performance, or achievements[21](index=21&type=chunk)[22](index=22&type=chunk) - Readers are cautioned to consider the numerous risks outlined under the "Risk Factors" item in the company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the U.S. Securities and Exchange Commission[21](index=21&type=chunk) [Contacts](index=6&type=section&id=7.3.%20Contacts) Contact information for investor relations and public relations is provided - Investor Contact: Gene Padgett, Chief Accounting Officer, TWFG (gene.padgett@twfg.com)[36](index=36&type=chunk) - Public Relations Contact: Alex Bunch, Chief Marketing Officer, TWFG (alex@twfg.com)[36](index=36&type=chunk)

Core Insights - TWFG Insurance has expanded its national presence through the acquisition of Angers & Litz Associates, marking a significant step in its Northeast growth strategy [1][3] - Angers & Litz, established in 1963, is recognized for its strong reputation in providing commercial and personal insurance solutions, which will enhance TWFG's market penetration and growth potential in the Northeast [2][3] - The acquisition aligns with TWFG's strategy to partner with culturally compatible, high-performing agencies, thereby strengthening its distribution capabilities and supporting independent agents [3] Company Overview - TWFG Insurance is a leading independent distribution platform for personal and commercial insurance in the United States, leveraging a network of independent agents and access to numerous carriers [4] - The company focuses on delivering tailored coverage solutions that enhance growth, efficiency, and customer satisfaction [4]

Core Viewpoint - TWFG, Inc. is set to release its financial results for the second quarter of 2025 on August 12, 2025, with a conference call scheduled for the following morning to discuss these results [1]. Company Overview - TWFG, Inc. is a leading independent insurance distribution platform that offers innovative and personalized insurance solutions to individuals and businesses across the United States [3]. - The company emphasizes service, professionalism, and an entrepreneurial spirit, empowering its extensive network of agents to provide client-focused insurance options across various personal and commercial lines [3]. Investor Relations - Participants can register for the conference call via a provided link to receive dial-in details, and a live webcast will be available on TWFG's Investor Relations website [2]. - Interested parties are encouraged to access the webcast at least 10 minutes before the scheduled start time, and a replay will be available for a limited time after the call [2].

Summary of TWFG Conference Call - June 11, 2025 Company Overview - **Company**: TWFG (The Woodlands Financial Group) - **Industry**: Insurance, specifically focusing on personal lines and independent agency distribution Key Points and Arguments Market Conditions and Growth Opportunities - Post-IPO, the market has reacted positively to TWFG, with favorable conditions observed except for a challenging week in April [3][4] - The personal lines insurance market is seen as a consolidation opportunity, with a potential market size of half a trillion dollars [5][6] - The company anticipates organic revenue growth of 12-16% and an adjusted EBITDA margin of 20-22% for 2025, driven by improved market conditions and new business incentives [7][8] Competitive Landscape - The competitive environment for private passenger auto insurance is rated at 7.5 out of 10, indicating a competitive market, while homeowners insurance is rated at 2.5 to 3, suggesting room for improvement [19][22] - Direct-to-consumer (DTC) channels like GEICO and Progressive are not seen as threats to independent agents; instead, collaboration is expected to continue [15][16] Distribution Model - The shift from captive agency models to independent agency models is noted, with independent agents now capturing a significant share of the market [16][28] - TWFG's "agency in a box" model is highlighted as a strategic advantage, providing comprehensive support to agents [31][34] Retention and Profitability - Agents retain 100% of the profits generated from their local operations, incentivizing them to grow their businesses within the TWFG framework [38][41] - The company emphasizes the importance of retention and productivity, which are expected to drive future growth [40][41] Expansion Strategy - TWFG is expanding into new states, focusing on recruiting talent and acquiring portfolios to strengthen its market position [42][43] - The company has successfully entered markets like Ohio and North Carolina through acquisitions and organic growth [43][44] M&A Strategy - M&A is viewed as an enhancement rather than a necessity for TWFG's operations, allowing for additional growth opportunities [60][61] - The company aims to be selective in M&A activities, focusing on acquiring businesses that can provide synergistic benefits [62][63] Technology Investments - Significant investments in technology are being made to improve operational efficiency and support agency growth [70][78] - The company is exploring AI applications to enhance workflows and improve productivity across its network [71][72] MGA Programs - TWFG has been successful in its MGA programs, particularly in challenging markets, and plans to expand these offerings [55][56] Additional Important Insights - The company has a unique position in the market due to its ability to bundle insurance products, which is a competitive advantage over DTC platforms [23][26] - The fragmented nature of the homeowners insurance market makes it less likely for independent agents to be displaced by DTC offerings [17][18] - TWFG's focus on scalable technology investments is expected to yield compounding benefits across its operations [78][81]

Core Insights - TWFG, Inc. is a high-growth insurance distribution company that will have its Founder and CEO, Gordy Bunch, participate in a fireside chat at the Morgan Stanley US Financials Conference on June 11, 2025 [1] - A live webcast of the conference will be available, along with a replay on the company's website [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]

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][17] - Total written premiums rose by 15.5% to $371 million, reflecting strength in both new business and renewal production [4][10] Business Line Data and Key Metrics Changes - Insurance services grew by 14.7%, while TWFG MGA grew by 20.1% [10] - New business growth was 26% or $18.4 million, and renewal business growth was 12.5% or $31.3 million [10] - MGA offering saw a significant uptick in new business growth of 89% or $8 million [11] Market Data and Key Metrics Changes - Personal lines are softening, but carrier capacity remains stable in most areas [6] - The private passenger auto market has normalized, with retention rates returning to a historic average of 88% [7] - The California property market has been challenging, but TWFG has navigated it effectively [6] Company Strategy and Development Direction - The company is focused on expanding its national footprint and investing in agent success [17][18] - There is a robust M&A pipeline, with $196 million in cash on hand, allowing for significant balance sheet flexibility [18] - The company is adjusting its 2025 guidance upward, expecting organic revenue growth of 12% to 16% [17] Management's Comments on Operating Environment and Future Outlook - Management is confident in the ability to deliver on 2025 guidance despite macroeconomic uncertainties [17] - The company is seeing increased demand for insurance options, highlighting the value of a trusted local adviser [17] - Management believes that the current investments will fuel future growth trajectories [5] Other Important Information - The company added 17 new branch locations during the quarter, aligning with acquisition expectations for revenue and EBITDA [5] - Adjusted net income increased by 14.3% to $9.2 million, driven by earnings growth [15] Q&A Session Summary Question: Are the first quarter expenses fully loaded for public company costs? - Management indicated that there will be future public company expenses as they comply with long-term obligations [20] Question: What gives comfort that retention has bottomed out? - Management stated that the 88% premium retention number aligns with their long-term average and reflects market conditions [21][24] Question: How would you characterize the commission rates in the quarter? - Management described commission rates as stabilizing, with potential for enhanced new business compensation [28][30] Question: Was the 17 branch additions a gross or net number? - Management confirmed that the 17 agencies were gross additions, not net [31][32] Question: Is there a certain amount of revenue or EBITDA from acquisitions in the full year guidance for 2025? - Management indicated that the guidance aligns with previous analyst models, with confidence in achieving projected revenue from acquisitions [35] Question: Why do new agent additions take longer compared to other distribution systems? - Management explained that their agents typically come from captive relationships and face non-compete clauses, requiring time to build a client base [40][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, which helps stabilize commission reductions [46][48] Question: When should additional IPO expenses be expected? - Management noted that while some expenses were not incurred in Q1, future expenses related to compliance will be integrated into forecasts [51][53] Question: Will the wholesale business start moderating growth rates? - Management expects the program side to expand, particularly in fragmented markets like homeowners [56] Question: What is the outlook for the Texas market? - Management expressed optimism for the Texas property market, anticipating improved conditions as reinsurance renewals clear [68] Question: How is the implementation of higher deductibles impacting revenues? - Management indicated that most carriers have maintained a 2% wind hurricane hail deductible, which is now standard across the state [71] Question: Will the IA channel embrace GEICO as a strong force? - Management believes that bundling opportunities will allow for competitive advantages, making GEICO a significant player in the IA channel [74]

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]