Financial Performance - Total revenues for the three months ended March 31, 2025, increased to $53,823,000, up 16.5% from $46,143,000 in the same period of 2024[15] - Net income attributable to TWFG, Inc. for the three months ended March 31, 2025, was $1,338,000, compared to $0 in the same period of 2024[15] - Comprehensive income attributable to TWFG, Inc. for the three months ended March 31, 2025, was $1,320,000, compared to $0 in the same period of 2024[17] - Net income for the three months ended March 31, 2025, was $6,853,000, compared to $6,629,000 for the same period in 2024, reflecting a growth of approximately 3.4%[26] - The company reported a segment net income of $6.85 million for the three months ended March 31, 2025, compared to $6.63 million in the same period of 2024[100] Revenue Sources - The company reported an increase in commission income to $48,785,000 for the three months ended March 31, 2025, from $42,545,000 in the same period of 2024[15] - Commission income increased to $48,785,000 in Q1 2025, up from $42,545,000 in Q1 2024, reflecting a growth of 14.4%[38] Assets and Liabilities - Total assets as of March 31, 2025, were $330,530,000, an increase from $323,428,000 as of December 31, 2024[20] - Total liabilities as of March 31, 2025, were $50,473,000, compared to $48,142,000 as of December 31, 2024[20] - As of March 31, 2025, total debt was $7,019,000, a decrease from $7,642,000 as of December 31, 2024[48] Cash Flow - Cash provided by operating activities increased to $15,645,000 for the three months ended March 31, 2025, up from $9,754,000 in the prior year, representing a year-over-year increase of about 60.5%[26] - Total cash, cash equivalents, and restricted cash at the end of March 31, 2025, was $208,277,000, compared to $31,418,000 at the end of March 31, 2024, indicating a significant increase[28] - The company reported a net change in cash, cash equivalents, and restricted cash of $2,954,000 for the three months ended March 31, 2025, contrasting with a net change of $(15,050,000) in the same period of 2024[28] Expenses - Cash distributions to members decreased to $2,024,000 in the three months ended March 31, 2025, from $2,420,000 in the same period of 2024, showing a reduction of approximately 16.4%[26] - Depreciation and amortization expenses rose to $3,359,000 for the three months ended March 31, 2025, compared to $3,013,000 in the prior year, marking an increase of about 11.5%[26] - The company incurred stock-based compensation expenses of $1,204,000 for the three months ended March 31, 2025, compared to no such expenses in the same period of 2024[26] Shareholder Information - Weighted average diluted shares outstanding for the three months ended March 31, 2025, were 15,055,553[15] - Basic and diluted earnings per share for the three months ended March 31, 2025, were both $0.09[15] - The company has 336,373 unvested RSUs as of March 31, 2025, with a weighted-average grant date fair value of $19.12[73] Acquisitions - The Company acquired assets of nine independent branches in January 2024, resulting in an increase in customer lists intangible assets of $40.8 million[41] - In January 2025, the Company acquired Mike Powell Insurance and United States Insurance Group for a total of $10.6 million, recognizing intangible assets of $8.0 million and $2.6 million, respectively[43] - The company completed the acquisition of Ralph E. Wade Insurance Agency Inc. for a total consideration of $4.3 million, with $3.0 million paid in cash[86] - Following the Wade acquisition, the company sold a 10.9% interest in the assets purchased to AIS for $0.5 million, increasing TWFG-IS's ownership of AIS from 70% to 76.9%[87] Tax Information - The estimated effective tax rate for the three months ended March 31, 2025, was 8.74%, with an income tax expense of $0.7 million[78] - TWFG Holding made tax distributions to its members totaling approximately $2.8 million for the three months ended March 31, 2025[69] Stock Information - The company issued 11 million shares of Class A Common Stock at $17.00 per share during the IPO, raising approximately $192.9 million in net proceeds after expenses[61] - As of March 31, 2025, the company has 14,904,083 shares of Class A Common Stock outstanding, representing 26.6% ownership, while noncontrolling interests hold 73.4%[68] - The company has not issued any preferred stock as of March 31, 2025, despite having authorized 50 million shares[65] Other Financial Metrics - The allowance for expected credit losses decreased slightly to $413,000 as of March 31, 2025, from $370,000 at the end of Q1 2024[40] - The net carrying amount of intangible assets at the end of Q1 2025 was $80,919,000, up from $72,978,000 at the end of Q1 2024[45] - The Company incurred interest expense of $100,000 for the three months ended March 31, 2025, compared to $800,000 for the same period in 2024[48] - The company allocated general and administrative expenses related to its subsidiaries totaling $1.6 million for the three months ended March 31, 2025, compared to $1.0 million for the same period in 2024[83] - The company incurred $0.8 million in software licensing fees for the three months ended March 31, 2025, an increase from $0.5 million in the same period of 2024[85] Future Outlook - Subsequent to the quarter ended March 31, 2025, the company completed acquisitions and business partnerships to support ongoing growth strategies[101]
TWFG, Inc.(TWFG) - 2025 Q1 - Quarterly Report