TWFG Q4 Earnings Call Highlights

27 Feb 2026, 16:48 by Mitch Edgeman · The Markets Daily

TWFG (NASDAQ:TWFG) executives highlighted double-digit organic growth, acquisition-driven expansion, and improving profitability during the company’s fourth quarter 2025 earnings call, while also addressing investor concerns about artificial intelligence and competitive dynamics in insurance distribution.

Full-year and fourth-quarter growth drivers

Founder, Chairman, and CEO Gordy Bunch said 2025 was a “transformational year” as TWFG moved through its second year as a public company. For the full year, total revenue increased 21.3% to $247.1 million, which management attributed to “double-digit organic growth,” performance across both the retail and MGA platforms, and execution on acquisitions. Organic revenue growth for the year was 11.6%, which Bunch said reflected momentum in new business production, healthy retention, and continued expansion of the company’s distribution footprint.

Chief Financial Officer Janice Zwinggi detailed fourth-quarter operating momentum, beginning with written premium growth. Total written premium increased $82.0 million, or 22.7%, to $443.4 million. Insurance services written premium rose $53.6 million, or 17.4%, to $361.3 million, while TWFG’s MGA written premium increased $28.5 million, or 53.2%, to $82.1 million.

Zwinggi said the MGA growth was “mainly due” to the acquisition of TWFG MGA Florida, which contributed approximately $27.1 million of written premium (including $9.7 million of renewals and $17.4 million of new business growth). Overall, the company reported renewal growth of $58.2 million (up 21.3%) and new business growth of $23.8 million (up 27.2%) versus the prior-year period, while maintaining a 92% retention rate.

Revenue, margins, and balance sheet

In the fourth quarter, total revenue increased $17.1 million, or 33%, to $68.8 million. Zwinggi said the increase was driven by accelerating new business activity, moderating rate increases, expanding MGA contributions, and solid economic activity in TWFG’s core markets. Commission income rose $15.6 million, or 35.8%, to $59.4 million. Organic revenue increased $5.2 million to approximately $50.0 million, representing 11.7% organic growth.

On expenses, management cited acquisition-related and public-company related cost increases. Commission expense increased $4.0 million, or 13.8%, to $32.9 million. Salaries and employee benefits rose $2.4 million, or 30.7%, to $10.0 million, which the company attributed to headcount growth associated with acquisitions, corporate functional hires, and public company infrastructure. Other administrative expenses increased $1.7 million, or about 35%, to $6.7 million, primarily due to higher technology costs tied to acquisitions and compliance initiatives. Depreciation and amortization increased to $5.8 million, driven by recent acquisitions.

Profitability improved year over year. Net income rose 76.2% to $14.4 million, with a 21% net income margin. Adjusted net income increased 58.9% to $16.7 million (24.3% margin). Adjusted EBITDA increased 56.9% to $21.7 million, for a 31.6% margin, compared to 26.8% in the prior year period. Zwinggi attributed the margin expansion to operating leverage, expense discipline, and a higher mix of margin contribution from corporate branch locations and MGA operations.

TWFG ended the year with unrestricted cash of $155.9 million, no borrowings on its $50 million revolving credit facility, and $4.0 million of term debt outstanding. Management emphasized that the balance sheet provides flexibility for growth investments and strategic opportunities.

M&A activity and pipeline commentary

Bunch said TWFG expanded its national footprint during 2025 through recruiting, tuck-in transactions, and accretive acquisitions, while maintaining a “disciplined” approach. He noted that, early in 2026, TWFG entered a definitive agreement to acquire the Loften Wells Insurance Agency, which is expected to become a corporate location in Memphis, Tennessee, on March 1. Bunch said the transaction would add scale to existing Tennessee operations and strengthen the company in a region where it intends to continue expanding.

He also said TWFG General Agency entered a definitive agreement to acquire Asset Protection Insurance Associates, described as a Texas-based MGA focused on insurance solutions for property owners and real estate investors nationwide. Management said the transaction is intended to expand distribution partners for existing proprietary programs and add a management team to support development of additional proprietary programs.

In Q&A, Bunch said the company’s M&A pipeline remains “very robust,” but that discussions around “transformational sized transactions” could take longer, and that recent market volatility may have made larger deals more difficult by prompting sellers and buyers to reassess long-term valuation benchmarks. He added that smaller acquisitions (particularly targets with less than $1 million in revenue) historically do not correlate as closely to public market multiples.

AI strategy and management’s view of industry disruption

Bunch devoted a significant portion of prepared remarks to AI, referencing a February 2026 launch of AI-powered insurance comparison tools embedded in consumer chatbot platforms. He characterized monoline, lower-limit auto insurance as a commoditized and “low-advice” transaction that has faced direct-channel competition for decades, and he argued that multi-line and higher-complexity insurance needs continue to require human judgment, carrier relationships, and advisor-based service—especially when clients face catastrophes and major losses.

Rather than viewing AI as a displacement threat, Bunch said TWFG expects AI tools to improve independent agent productivity by accelerating quoting, improving communication, and increasing workflow efficiency. He said TWFG’s ownership of proprietary technology platforms allows the company to build internally and integrate with third-party vendors as needed.

Management also outlined technology and staffing initiatives, including senior leadership appointments designed to accelerate technology and underwriting platforms. Bunch said TWFG has 44 technology-related positions and that its software engineers are using an AI coding assistant, Claude, to increase productivity. He added that, excluding corporate sales office employees, technology teams represent 32% of TWFG’s corporate employee base.

2026 guidance, repurchase program, and market conditions

Looking ahead, TWFG provided 2026 guidance and announced a share repurchase authorization. Bunch said the company expects to maintain momentum in 2026, supported by investments in people, technology, and infrastructure, and he pointed to a share repurchase program of up to $50 million. He said management believes “current valuations represent a compelling opportunity” and that the company is prepared to be aggressive in buying its own stock at those levels.

For 2026, management guided to:

Total revenue: $285 million to $300 million (15% to 20% growth)
Adjusted EBITDA margin: 22% to 25%
Organic revenue growth: 10% to 15%

Management said the outlook incorporates continued platform growth, a competitive soft market environment, investments in new AI tools, and execution of accretive M&A plans. In discussing market conditions, Bunch noted broad softening in auto insurance rates and said property pricing and capacity constraints remained more persistent in catastrophe-exposed geographies, including wildfire-exposed areas such as California and Colorado.

During Q&A, executives also discussed organic growth expectations, including the timing of benefits from MGA Florida (with Bunch noting a benefit in the second quarter tied to renewals in months 13 through 15 post-acquisition) and the role of new product development in MGA as a potential upside factor. They also addressed margin guidance, citing a combination of public company compliance buildout, technology and infrastructure investments, and conservatism around contingent commissions in a softening rate environment.

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.