Financial Data and Key Metrics Changes - Total revenue grew by 13.8% to $60.3 million, with organic revenue growth of 10.6% [5][11] - Adjusted EBITDA increased by 40.7% to $15.1 million, with margins expanding to 25.1% [5][14] - Total written premiums rose by 14.4% to $450.3 million [5][9] Business Line Data and Key Metrics Changes - Insurance services grew by 16.5% to $55 million, while TWFG MGA grew by 2.7% to $1.6 million [9] - Renewal business within insurance services increased by 16.1%, while new business grew by 17.8% [10] - MGA experienced a shift with renewal business growing by 8.1%, while new business growth declined [11] Market Data and Key Metrics Changes - The personal lines market is softening, with expanding carrier capacity and moderating rate increases [6][29] - Retention rate remained at 89%, consistent with long-term averages [7][11] - Certain regions, such as Florida and Louisiana, are experiencing price deceleration, while Texas remains stable [35][36] Company Strategy and Development Direction - The company focuses on four strategic pillars: expanding national footprint, investing in agent productivity, enhancing technology infrastructure, and deepening carrier relationships [7] - AI-driven tools are being piloted to improve efficiency and responsiveness [8] - The company is actively pursuing M&A opportunities to support growth [16][50] Management's Comments on Operating Environment and Future Outlook - Management expects moderate rate increases in 2025 and is monitoring potential tariff impacts on costs [7] - The company remains confident in its ability to deliver long-term value despite a moderating rate environment [46] - Guidance for 2025 includes organic revenue growth of 11% to 14% and adjusted EBITDA margins between 21% and 23% [16][42] Other Important Information - Net income for the quarter was $9 million, up 30.1% year-over-year [14] - The company has $160 million in cash and a fully available credit revolver, providing flexibility for investments [16] Q&A Session Summary Question: Profit margins this quarter - Management explained that lower commission expense is due to lower commission revenues, with corporate store acquisitions contributing to margin expansion [19][20] Question: Changes in organic growth expectations - Management noted that the market conditions have softened, leading to more options for customers and impacting organic growth [28][30] Question: M&A contribution to revenue - Management clarified that M&A contributions depend on the timing of asset onboarding, with expectations for increased contributions in the second half of the year [48][50] Question: Future EBITDA margin expansion - Management indicated that continued EBITDA margin expansion is feasible, depending on future acquisitions and operational efficiencies [53][54] Question: MGA business and competition - Management discussed the competitive landscape in the E&S home insurance market and its impact on MGA's trajectory, noting that their core program remains stable [66][68]

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]