TWFG Q1 Earnings Call Highlights

Key Points

• TWFG posted a strong Q1 2026, with revenue up 35.3% to $72.8 million and total written premium rising 23.5% to $458.2 million. Management said growth came from acquisitions, organic expansion and a favorable mix shift toward higher-margin MGA business.
• Profitability improved sharply as net income jumped 90.8% to $13.1 million and adjusted EBITDA increased 73.9% to $21.2 million. The company said margins benefited from operating leverage, cost discipline and temporary upside from MGA Florida takeout economics, though that boost should fade through 2026.
• TWFG continued to expand through acquisitions and buybacks, closing deals in Tennessee, Texas and Iowa while also repurchasing about $40 million of stock under its $50 million authorization. The company ended the quarter with a strong cash position and reaffirmed full-year guidance for 15% to 20% revenue growth and 22% to 25% adjusted EBITDA margins.

TWFG NASDAQ: TWFG reported double-digit revenue and premium growth for the first quarter of 2026, with management pointing to acquisition contributions, organic growth and margin expansion from its managing general agency platform.

Founder, Chairman and CEO Gordy Bunch said the company delivered a “strong first quarter” that reflected the “underlying strength and scalability” of its platform. He cited a softening insurance market, disciplined execution and investments in technology, MGA programs and talent acquisition as key drivers.

Total revenue rose 35.3% to $72.8 million, while total written premium increased 23.5% to $458.2 million. Chief Financial Officer Janice Zwinggi said written premium growth included $59 million of renewal growth, or 21%, and $28 million of new business growth, or 31%. Consolidated retention was 92%.

Revenue Growth Supported by Acquisitions and Organic Expansion

Zwinggi said commission income, TWFG’s largest revenue component, increased 37.4% to $67.1 million, reflecting expansion in both insurance services and MGA operations. Organic revenue reached $54.3 million, up $5 million from the prior-year period, representing organic growth of 10.1%.

The company’s insurance services segment increased written premium by $46 million, or 14.5%, while the MGA business grew written premium by $41 million, or 77.3%. Zwinggi said the MGA increase was primarily driven by the acquisition of TWFG MGA Florida in the second quarter of last year.

Management said the company benefited from improved carrier capacity as insurers reentered some personal and commercial lines markets where capacity had previously been constrained. Bunch said pricing trends are moderating while underwriting discipline remains strong, creating “an ideal environment for a diversified platform like ours to expand.”

In response to an analyst question about the company’s organic growth outlook, Bunch said TWFG expects “structural tailwinds” in the second quarter and reaffirmed full-year organic revenue growth guidance of 10% to 15%. He said the company should have “high double digit organic” growth in the second quarter based on known renewal dynamics and new business activity.

Margins Expand as MGA Business Scales

TWFG’s profitability improved sharply in the quarter. Net income increased 90.8% to $13.1 million, and net income margin rose to 18% from 12.7% in the prior-year quarter. Adjusted net income increased 75.2% to $16.2 million, with an adjusted net income margin of 22.2%.

Adjusted EBITDA grew 73.9% to $21.2 million, and the adjusted EBITDA margin expanded 650 basis points to 29.1%. Zwinggi said the improvement reflected operating leverage, cost discipline, the higher-margin profile of MGA operations and acquisition contributions.

Bunch cautioned that some margin benefit is temporary. He said TWFG MGA Florida’s takeout program provides near-term favorable economics because assumed policies carry commission income without a corresponding commission expense during the runoff period. That benefit is expected to decline as those policies renew with full-term premiums and normal commission expenses.

Asked by KBW analyst Tommy McJoynt how margins should be modeled through the year, Bunch said the largest takeouts occurred in June and October of last year and that the related benefits will fade through calendar 2026. He said management is maintaining its adjusted EBITDA margin guidance of 22% to 25% and could revisit guidance if second-quarter results resemble the first quarter.

Acquisitions Add Scale in Tennessee, Texas and Iowa

TWFG completed two acquisitions in the first quarter and closed another transaction after quarter-end. In March, it acquired Lofton Wells Insurance, which became a corporate location in Memphis, Tennessee. Bunch said the deal adds scale to the company’s Tennessee operations and positions TWFG in a region with long-term growth opportunities.

The company also acquired Asset Protection Insurance Associates, a Texas-based MGA focused on insurance solutions for property owners and real estate investors across the United States. Bunch said APIA brings underwriting expertise, a broader distribution network and access to additional program opportunities.

After the quarter ended, TWFG closed its acquisition of Fortress Insurance Services in Iowa. Bunch described Fortress as a “very sizable operation” and said the company wants to focus on integration before pursuing additional deals. He said TWFG has a healthy acquisition pipeline and the capital to do more, but management intends to remain selective.

In response to an RBC Capital Markets question, Bunch said Fortress was included in the company’s full-year revenue guidance because TWFG had assumed a certain level of capital deployment, acquired revenue and EBITDA in its annual outlook.

Capital Position and Buybacks

Zwinggi said TWFG generated $22.7 million of cash flow from operating activities, compared with $15.6 million in the prior-year quarter. Adjusted free cash flow was $15.2 million, up from $13.6 million.

As of March 31, the company had $124.8 million in unrestricted cash and cash equivalents, full unused capacity on its $50 million revolving credit facility and $3.5 million of term debt outstanding.

TWFG also continued repurchasing shares under its $50 million buyback program announced in February. Zwinggi said the company repurchased $16.7 million through March 31 and had brought total repurchases to approximately $40 million as of the call, leaving $10 million of remaining capacity.

Asked whether there were limits on additional repurchases, Bunch said the company must follow SEC Rule 10b-18 volume restrictions, in addition to the amount authorized by the board.

Technology and AI Remain Strategic Focuses

Bunch devoted part of his prepared remarks to artificial intelligence, saying the topic has become central to the future of insurance distribution. He said TWFG has appointed a chief technology officer focused on AI strategy, cloud architecture and platform modernization, and has expanded its technology team to 44 professionals.

Bunch said TWFG is investing in proprietary AI solutions built around its underwriting knowledge and data assets. He identified three AI-related advantages: proprietary data accumulated over 25 years, ownership of core technology platforms and a strategy of using AI to amplify employees and agents rather than replace them.

He said AI can help agents accelerate quote turnaround times, automate routine account management and identify coverage gaps. For underwriting teams, he said AI can improve risk assessment and decision-making speed, while operations may see efficiencies that could support margin expansion over time.

During the Q&A, UBS analyst Brian Meredith asked whether AI-driven productivity could eventually pressure commission rates. Bunch said it was too early to predict that outcome and noted uncertainty around the long-term cost of AI tools. He added that independent agency distribution provides insurers with “a superior portfolio, better retention, better loss ratios,” and said he does not see carriers immediately reducing commissions in a competitive market.

TWFG reaffirmed its full-year 2026 guidance. The company expects total revenue growth of 15% to 20%, reaching $285 million to $300 million; organic revenue growth of 10% to 15%; and adjusted EBITDA margins of 22% to 25%.

About TWFG NASDAQ: TWFG

TWFG Insurance Services, Inc operates as a property and casualty insurance distribution company that provides personal and commercial insurance solutions through a hybrid model of company-owned branches and franchised offices. The firm offers a broad spectrum of insurance products, including auto, homeowners, renters, umbrella, flood and specialty lines coverage, tailored to meet the needs of individuals, families and businesses. By partnering with multiple insurance carriers, TWFG delivers competitive pricing and customized policy options designed to help clients manage risk and protect their assets.

Founded in 1980 and headquartered in Odessa, Texas, TWFG has expanded its network to serve customers across numerous U.S.

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