Financial Data and Key Metrics Changes - Total revenues increased by 21% quarter-over-quarter to $64.1 million, with adjusted EBITDA growing by 45% to $17 million, resulting in a margin expansion of 430 basis points to 26.5% [2][4][6] - Written premium rose by $67.6 million, or 16.9%, year-over-year to $467.7 million, with strong growth in both insurance services and MGA [4][5] - Net income was $9.6 million, up 40% year-over-year, with an adjusted net income increase of 55% to $13 million, equating to an adjusted net income margin of 20% [7][8] Business Line Data and Key Metrics Changes - Insurance services grew by $56 million, or 16.5%, while MGA experienced a growth spike of $11.7 million, or 19.2% [4][5] - Organic revenues increased by $5 million, reaching $54.2 million, demonstrating a solid organic growth rate of 10.2% [6] Market Data and Key Metrics Changes - The personal lines market is normalizing, with carrier appetite returning and rate increases moderating, which is positively impacting retention and new business growth [2][3] - The market is transitioning from hard to soft, affecting renewal rates and premium retention, with expectations of stabilization by the second quarter of 2026 [20][21] Company Strategy and Development Direction - The company is focused on investing in technology initiatives, executing accretive M&A goals, and expanding retail and MGA distribution channels [3][10] - The strategic priorities remain unchanged, emphasizing profitable growth and deepening relationships with carriers and agencies [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year 2025 targets, citing a strong balance sheet and ongoing recruiting and acquisition initiatives [8][10] - The company anticipates executing more M&A deals in 2026 compared to 2025, with a focus on cultural fit and portfolio quality [16][50] Other Important Information - The company ended the quarter with $151 million in cash and no draws on its revolver, positioning itself well for organic initiatives and potential M&A [8] - The company has tightened its guidance for total revenues to between $240 million and $245 million for the full year 2025 [8] Q&A Session Summary Question: Clarification on $10 million attributed to other investments - Management clarified that this is related to their Premium Finance operations, which have been funded internally for higher yields [12][15] Question: Expectations for M&A pipeline in 2026 - Management expects to execute M&A earlier in the cycle in 2026 compared to 2025, with a robust pipeline [16] Question: Insights on market environment and organic growth - Management discussed the impact of the market transitioning from hard to soft, affecting renewal rates and premium retention, with growth in exposure offsetting reduced premiums [20][21] Question: Impact of new agents on growth rate - Newly recruited agents are expected to contribute to organic growth over a multi-year process, with their impact factored into forecasts [22][24] Question: Trends in MGA channel performance - The MGA channel saw strong premium growth, with commission income growing faster due to a new program launched in Florida [27][28] Question: Comparison of EBITDA margins between Corporate and Agency-in-a-Box - Corporate locations have greater margins than Agency-in-a-Box due to retaining 100% of renewal commissions [38]

Financial Data and Key Metrics Changes - Total revenues increased by 21% quarter over quarter to $64.1 million, supported by 10.2% organic revenue growth and M&A revenues [2][4] - Adjusted EBITDA grew by 45% to $17 million, with margins expanding by 430 basis points to 26.5% [2][6] - Written premium increased by $67.6 million, or 16.9%, over the prior year period to $467.7 million [4][6] - Net income was $9.6 million, up 40% over the prior year period, with a net margin of 15% [7] Business Line Data and Key Metrics Changes - Insurance services grew by $56 million, or 16.5%, while MGA experienced a growth spike of $11.7 million, or 19.2% [4] - Commission income grew by $10 million, or 20.8%, to $58.3 million, driven by strong renewal and new business activity [5][6] - Organic revenues increased by $5 million, reaching $54.2 million, demonstrating solid momentum across both agency and MGA platforms [6] Market Data and Key Metrics Changes - The personal lines market is normalizing, with carrier appetite returning and rate increases moderating [2] - Consolidated written premium retention remained strong at 91%, indicating stability in the client base [4] - The market is transitioning from hard to soft, impacting renewal rates and premium retention [19] Company Strategy and Development Direction - The company is focused on investing in technology initiatives, executing accretive M&A goals, and expanding retail and MGA distribution channels [3] - Strategic priorities include disciplined capital deployment to support growth and expansion [3][10] - The company aims to build a high-growth, independent agent-centric, data-driven distribution platform [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year 2025 targets, with tightened guidance reflecting year-to-date performance and market conditions [8] - The company anticipates executing M&A earlier in the cycle in 2026 compared to 2025 [15] - Management noted that the softening market could lead to lower average premiums but also increased client onboarding opportunities [19][20] Other Important Information - The company ended the quarter with $151 million in cash and no draws on its revolver, positioning it well for organic initiatives and potential M&A [8] - The company has added eight new retail locations and 370 independent agents to its MGA platform [3] Q&A Session Summary Question: Clarification on $10 million attributed to other investments - Management clarified that this is related to their premium finance operations, which have been funded internally for higher yields [12][14] Question: Expectations for M&A pipeline in 2026 - Management expects to execute more deals in 2026 compared to 2025, with a focus on cultural fit and portfolio quality [15] Question: Insights on market environment and organic growth - Management discussed the impact of the market transitioning from hard to soft, affecting renewal rates and premium retention [19] Question: Impact of new agents on growth rates - Newly recruited agents are expected to contribute to organic growth over a multi-year process, with their impact already factored into forecasts [21][22] Question: MGA channel performance and margin trends - Management noted that the MGA channel experienced strong premium growth and higher commission income due to a new program launched in Florida [26][27] Question: Comparison of EBITDA margins between corporate and Agency in a Box - Management indicated that corporate margins are expected to be greater than 2x those of Agency in a Box due to revenue retention [37]