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- **Revenue Growth**: Q3 revenue up 21% QoQ to $64.1 million, driven by 10.2% organic growth and M&A. 
- **Profitability**: Adjusted EBITDA margin expanded 430 bps to 26.5%, with $13 million adjusted net income (55% YoY growth). 
- **Strategic Expansion**: 23 new Alabama locations and 370 MGA agents enhance national reach. 
- **Market Outlook**: Softening personal lines market improves carrier access, but rate normalization may take 12-18 months. 
- **2026 Guidance**: $240-$245 million revenues, 11%-13% organic growth, 24%-25% EBITDA margins.

**【Management Opening Remarks】**
- TWFG reported Q3 2025 revenue of $64.1 million, up 21% QoQ, driven by 10.2% organic growth and M&A contributions. Adjusted EBITDA rose 45% to $17 million, with margins expanding 430 bps to 26.5%. The company expanded into Alabama with 23 new retail locations, reflecting a broader national footprint and strategic M&A execution.

**【CEO Commentary】**
- Highlighted normalization in personal lines market with carrier appetite returning, rate increases moderating, and underwriting discipline improving retention and new business growth. The diversified retail, MGA, and agency model positions TWFG to capitalize on market cycles. Q3 saw 8 new retail locations, 1 corporate site, and 370 agents added to the MGA platform, supporting long-term growth.

**【CFO Financial Commentary】**
- Written premium increased 16.9% YoY to $467.7 million, with insurance services up 16.5% and MGA up 19.2%. Commission income grew 20.8% to $58.3 million, supported by renewal and new business activity. Organic revenue rose 10.2% to $54.2 million. Adjusted net income rose 55% to $13 million, with a 20% margin. Full-year 2025 guidance: $240-$245 million in revenues, 11%-13% organic growth, and 24%-25% EBITDA margins.

**【Q&A Highlights】**
- **M&A and Capital Allocation**: CEO emphasized accretive M&A, with 2026 pipeline expected to exceed 2025 activity. The company prioritizes cultural fit, portfolio quality, and EBITDA accretion over line mix. 
- **Market Trends**: Softening personal lines market improves carrier availability but may pressure renewal rates. TWFG benefits from admitted market expansion and program initiatives. 
- **Agent Impact**: New agents contribute gradually, with 2024-2025 additions starting to scale in 2026. Agency in a Box (AIB) programs drive incremental commission income without commission expense, boosting near-term margins.

TWFG, Inc. (TWFG) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

TWFG

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