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]
TWFG Announces Second Quarter 2025 Results