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]
TWFG, Inc.(TWFG) - 2025 Q3 - Quarterly Report