What TWFG (TWFG) Said on Its Q3 Earnings Call

Key Points

• Revenue grew 24.6% to $79.9 million, with organic revenue up 16.6% and adjusted EBITDA up 15% to $19.5 million. Net income declined to $9 million from $9.6 million as expenses increased and interest income fell.
• Growth was led by new business premiums, up 35.9%, and the MGA channel, where written premiums surged 50.9% and revenue rose 78.1%. Total written premiums increased 18.5% to $554.2 million, while renewal retention was 88% versus 91% a year earlier.
• Adjusted EBITDA margin narrowed to 24.4% from 26.5%, partly as Florida takeout benefits normalized. TWFG’s 2026 outlook calls for revenue of $300 million to $320 million, organic growth of 15% to 17%, and an adjusted EBITDA margin of 24% to 27%.

TWFG NASDAQ: TWFG reported 24.6% revenue growth in the third quarter of 2026 as its managing general agency business expanded and new business premiums rose, even as insurance pricing softened in some markets.

Revenue rose to $79.9 million, while organic revenue increased 16.6% to $68.7 million. Total written premiums grew 18.5% to $554.2 million, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 15% to $19.5 million.

Net income fell to $9 million from $9.6 million a year earlier, and diluted earnings per share declined to $0.09 from $0.11. Chief Financial Officer Janice Zwinggi cited higher administrative and personnel expenses, lower interest income and higher noncash amortization associated with acquisitions.

Premium growth led by new business

Third-quarter renewal premiums increased 13.4% to $410.7 million, while new business premiums rose 35.9% to $143.5 million. Consolidated written premium retention was 88%, down from 91% a year earlier, although year-to-date retention improved to 91% from 89%.

Founder, Chairman and CEO Gordy Bunch III said the company’s long-term consolidated retention average is 88% to 89%. Zwinggi said the comparison with the prior-year quarter was affected by an increase in new business in Florida in 2025.

Insurance services written premiums rose 12.5% to $444.7 million. Within that business, corporate branch written premiums grew 19.9%, while Agency-in-a-Box premiums increased 10.1%.

The managing general agency, or MGA, channel posted 50.9% written premium growth to $109.5 million. Zwinggi attributed the increase in part to the ramp-up of a voluntary Florida homeowners program, renewals of the Citizens takeout book and contributions from APIA, acquired in the first quarter. MGA revenue rose 78.1% to $24.8 million, representing 31% of total revenue, up from 22% a year earlier.

Zwinggi said growth was driven by volume rather than rates, with TWFG adding policies and clients as pricing moderated. Commercial lines written premiums rose 32.2% to $107.1 million, or 19% of the company’s total.

Margins narrow as Florida benefits normalize

Adjusted EBITDA margin declined to 24.4% from 26.5% a year earlier. Zwinggi said lower interest income accounted for roughly 180 basis points of the 210-basis-point decline, as the company deployed cash for share repurchases and acquisitions. The remainder primarily reflected overhead spending for growth, including technology initiatives.

Management said the temporary benefit from Florida takeout policies is normalizing as the policies renew at full-term premiums with standard commission expenses. For the first nine months of 2026, adjusted EBITDA margin was 28%, compared with 24.9% a year earlier.

Bunch said TWFG’s historical long-term margin target was 22% to 23%, but added that the lower end of the mid-20% range may be a better long-term frame as acquisitions and a greater mix of commercial lines and MGA programs contribute. The company has not issued 2027 guidance.

Outlook and acquisition plans

TWFG updated its 2026 outlook to call for revenue of $300 million to $320 million, organic revenue growth of 15% to 17% and an adjusted EBITDA margin of 24% to 27%. Bunch said the forecast takes a prudent view of the fourth quarter, including the Florida book’s normalization and softer market conditions. Through nine months, organic growth was 21.5%.

Bunch said TWFG did not increase its contingent revenue assumption after locking in most major profit-sharing contingencies at nine months. He said additional upside remains possible from smaller carriers whose results are not yet known. Zwinggi said the company expects contingent income to increase in the fourth quarter.

During the quarter, TWFG completed the branch conversion acquisition of Select Insurance Solutions. Bunch said the company has a healthy acquisition pipeline heading into 2027 and expects potential deals to be accretive. Its expanded $125 million revolving credit facility was fully undrawn at quarter-end; combined with unrestricted cash, it provided approximately $202.8 million in available liquidity.

On pricing, Bunch said personal property rates in more catastrophe-exposed regions were declining by high single-digit to low-teen percentages, while auto rates were moderating. He said carriers remain interested in new business and are broadening underwriting appetites.

About TWFG (NASDAQ:TWFG)

TWFG, Inc NASDAQ: TWFG is an independent insurance distribution company that connects individuals and businesses with insurance products from a range of carriers. Through its agency network, the company provides access to personal and commercial property and casualty coverage, as well as life, health and other insurance solutions.

The company serves customers across the United States through a combination of retail insurance agencies and wholesale distribution operations. Its services include insurance placement, consultation and support, helping clients evaluate coverage options and manage their insurance needs.

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