Twfg — Financial Results
Total Revenue Rose 22%, Driven by Both Organic Growth and Acquisitions
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Total Revenue | $248.5M | $203.8M | +22% |
| Commission Income | $221.0M | $183.2M | +21% |
| Organic Revenue Growth Rate | 11.6% | 15.2% | Slowing |
TWFG grew total revenues by $44.8 million in 2025, with commission income — earned as a percentage of insurance premiums placed — as the main engine. However, the 11.6% organic revenue growth rate (which strips out acquisitions and one-time items to show how the existing business is performing) slowed from 15.2% in 2024, reflecting a moderating insurance pricing environment, particularly in personal auto during the second half of the year.
Profitability Improved Meaningfully, With Margins Expanding
| Metric | 2025 | 2024 |
|---|---|---|
| Net Income | $41.2M | $28.6M |
| Net Income Margin | 16.6% | 14.0% |
| Adjusted EBITDA | $66.8M | $45.3M |
| Adjusted EBITDA Margin | 26.9% | 22.3% |
Adjusted EBITDA (a measure of operating profitability before interest, taxes, depreciation, and amortization) jumped 47%, and its margin expanded by 4.6 percentage points. Revenue grew faster than expenses, which is the definition of operating leverage — a positive sign that the business model scales efficiently as it gets bigger.
Seven Acquisitions Added Scale, but Cost $61.9 Million in Cash
TWFG completed seven acquisitions in 2025 for total consideration of $51.0 million, adding them as Corporate Branches (company-owned offices that retain 100% of commission income). It also acquired a 50.1% stake in TWFG MGA FL for $9.7 million. These deals contributed to total revenue growth above the organic rate, but they consumed the majority of the company's investing cash — $61.9 million compared to $21.9 million in 2024 — and drove a 53% increase in depreciation and amortization from the associated intangible assets being written down over time.
MGA Segment Growing Rapidly, Now 20% of Revenue
| Segment | 2025 Revenue | 2024 Revenue | Growth |
|---|---|---|---|
| Insurance Services | $196.1M | $168.5M | +16% |
| TWFG MGA | $50.8M | $33.7M | +51% |
The MGA (Managing General Agent) segment — where TWFG takes on more of the underwriting and distribution process directly, rather than simply acting as an agent — grew 51%, largely driven by the TWFG MGA FL acquisition. MGA operations typically generate higher commission rates, making this a strategically significant growth area to watch.
Strong Cash Generation, but Cash Balance Declined Due to Deal Spending
| Metric | 2025 | 2024 |
|---|---|---|
| Operating Cash Flow | $53.5M | $40.5M |
| Adjusted Free Cash Flow | $42.1M | $28.2M |
| Cash & Equivalents (year-end) | $155.9M | $195.8M |
The business generated $53.5 million in operating cash flow, up $13 million year-over-year. However, total cash fell by roughly $40 million because acquisitions and member distributions outpaced inflows. The company holds no balance on its $50 million revolving credit line and carries only $4 million in term loan debt, leaving it in a comfortable financial position. A $50 million share repurchase program was also approved in February 2026, signaling confidence from the board.