TWFG

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 12:00 p.m. ET Chief Executive Officer - Richard Bunch Chief Financial Officer - Janice Zwinggi Operator: Thank you for standing by, and welcome to the TWFG, Inc. Announces Second Quarter 2026 Results Conference Call. [Operator Instructions] As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Gordy Bunch, CEO. Please go ahead, sir. Richard Bunch: Thank you, and good afternoon, everyone. Thank you for joining us today to discuss TWFG's Second Quarter 2026 results. Joining me on today's call is Janice Zwinggi, our Chief Financial Officer. After my remarks, Janice will walk through our financial performance in more detail, and then we'll open up the call for questions. I am pleased to report TWFG's delivered an outstanding second quarter, reinforcing the strength and scalability of our diversified platform. Total revenues grew 45.1% to $87.5 million. Organic revenue growth rate was 37%. Adjusted EBITDA grew 75.8% to $26.6 million, with margin expansion of 530 basis points to 30.4%. Total written premium grew 26.6% to $569.9 million. These results reflect the compounding benefits of our investments in the MGA platform, carrier partnerships, technology capabilities and talent. On the organic front, we delivered the outsized high double-digit growth we anticipated last quarter. Reported organic revenue growth rate of 37% reflected the Citizens takeout and renewal dynamics, while underlying core organic growth continued to track in line with our expectations. New business generation and improving retention drove the results. Consolidated written premium retention reached 93%, up from 89% in the prior year quarter. And Insurance Services retention remained solid at 90%, reflecting strong client relationships and improving carrier availability. From a profitability perspective, our 30.4% adjusted EBITDA margin benefited from strong growth in the MGA channel, where commission income increased 290% quarter-over-quarter, and now represents 35% of total revenues, up from 15% in the prior year quarter. The MGA platform carries a structurally higher margin profile than Insurance Services, and the current runoff period for the MGA Florida takeout program also provides a near-term margin benefit because assumed policies generate commission income without corresponding commission expense. We expect that benefit to normalize as more takeout policies renew with full term premiums and standard commission expenses, which is reflected in our updated guidance. The market environment continues to evolve broadly as expected. Personal auto rates have continued to moderate with mid-single-digit declines in certain subsegments. Homeowners rates are broadly flat with some regional pressure in catastrophe-exposed geographies. Carrier appetite for quality independent agent flow remains strong, and growth-focused carriers continue to offer competitive new business incentives. This environment supports share gain for a diversified platform like ours across both soft and hard markets. Our strategy remains consistent and disciplined. We are executing across our 4 core priorities: delivering strong double-digit organic growth, executing accretive M&A, investing in technology and platform improvements for our agents and deploying capital with discipline across all these opportunities. This quarter, we made meaningful progress across all 4. On the acquisition front, we completed the acquisition of Fortress Insurance Services on May 1. Fortress is a well-established Iowa-based agency, which complements our earlier Midwest additions and supports our expansion into attractive long-term growth markets. Integration is on track, and the team is culturally aligned with TWFG. Fortress rounded out our M&A objectives for 2026 guidance year. So our near-term focus is integration and orientation of first half acquisitions. Any second half transactions will be incremental to the guidance we are providing today. We do have an active M&A pipeline, and there is upside potential. On capital allocation, our $50 million share repurchase program authorized in February is now essentially complete. Through today, we have repurchased approximately $42.9 million at an average price of $19 per share, retiring approximately 15% of our pre-program Class A share count. We view this as highly accretive capital deployment. The Board will evaluate any reauthorization in the context of our M&A pipeline, cash generation, valuation and alternative uses of capital. Our balance sheet remains strong and gives us flexibility to invest in growth, pursue accretive M&A and return capital to shareholders. On technology, we continue to invest in AI-enabled capabilities that make our agents more productive. TWFG is positioned to benefit from AI's continued evolution because we own our technology stack, have 25 years of proprietary underwriting data and are deploying AI to amplify what our people do best. We remain on track to host our Investor Day, November 12, and we are looking forward to sharing all of our details on our medium-term financial framework, MGA platform strategy, our geographic expansion plans and our technology road map. Before turning it over to Janice, I want to acknowledge the outstanding execution of our team this quarter. Our results are the product of thousands of individual decisions made every day by our agents, our operators, our carrier partners and our corporate team. I could not be prouder of the entire TWFG family. With that, I will now turn the call over to Janice to walk through the financials in detail. Janice Zwinggi: Thank you, Gordy. I am pleased to report the following second quarter results, beginning with our top KPI written premium. Total written premium grew $119.6 million or 26.6% to $569.9 million, driven by strong renewal and new business performance. Renewal premium grew $67.5 million or 19.3% and new business grew $52.1 million or 51.6%. Consolidated written premium retention was 93%, up from 89% in the prior year period and our highest retention rate to date. Excluding TWFG MGA Florida Citizens takeout renewals, retention would have been approximately 88%, consistent with our historical range. Looking at our primary offering components, Insurance Services written premium grew $49.7 million or 12.8%, driven primarily by renewal growth of $48.1 million or 15.9%, reflecting improved retention and the continued benefit of our corporate branch acquisitions. Our MGA channel written premium grew $69.9 million or 114.8%, driven by the ramp of our voluntary Florida homeowners program, contributions from APIA, which we acquired in the first quarter, and the continued renewal cycle of our Citizens takeout book. Total revenues increased $27.2 million or 45.1% to $87.5 million. Commission income grew $26.1 million or 47.8% to $80.6 million, driven by strong MGA performance with growth of 290% to $27.3 million. This performance reflects the higher commission rate business in our MGA platform, including MGA Florida new and renewal takeout business, APIA and TWICO programs, as well as commission derived from our corporate store acquisitions. Contingent income was $2.2 million, remaining essentially flat quarter-over-quarter. This stability aligns with our conservative posture given carrier loss ratio uncertainty in the softening rate environment. Fee income expanded from $3.3 million to $4.2 million, fueled by solid momentum across branch policy and program-related fees. Organic revenues reached $75.5 million, representing a $20.4 million increase over the $55.1 million reported in the prior year quarter. This yielded an organic revenue growth rate of 37%, which was positively impacted by the transition of MGA Florida takeout policies passed through 12-month organic threshold. Our core business continues to generate sustainable and consistent organic growth independent of acquisition contributions. Now turning to expenses. Commission expense grew $8.3 million or 24.4% to $42.5 million. Notably, this expanded at a substantially slower rate than commission income. This operating leverage was primarily driven by higher commission income rates on MGA program business and a takeout dynamic where policies were assumed without corresponding sub-producer commission expense during the runoff period, as well as an increased concentration of corporate store acquisitions carrying minimal commission expense. Salaries and employee benefits increased $2.3 million or 24.1% to $11.8 million. This expansion was predominantly driven by added headcount from our recent acquisitions alongside ongoing corporate office investments designed to support the expanding scale of our platform. Other administrative expenses increased $3.2 million or 59% to $8.6 million. This increase reflects our ongoing investments in scalable technology initiatives, the inclusion of acquired corporate store footprint expenses and public company operating infrastructure. Depreciation and amortization increased $3.2 million or 81.1% to $7.1 million, primarily from purchase accounting related to our recent acquisitions. Moving to profitability. Net income for the quarter rose to $17.3 million compared to $9 million in the prior year quarter. Adjusted net income expanded 76.1% to $20.3 million, delivering an adjusted net income margin of 23.2%, up from 19.1% in the prior year quarter. Adjusted EBITDA grew 75.8% to $26.6 million and adjusted EBITDA margin expanded 530 basis points to 30.4% compared to 25.1% in the prior year quarter. This expansion reflects strong operating leverage across our platforms, including the higher margin profile of our MGA operations, the accretive impact of our acquisitions and the continued cost discipline as we scale. Finally, adjusted diluted earnings per share increased to $0.38 compared to $0.20 in the prior year quarter, which was primarily attributable to higher adjusted net income during the period. From a cash and capital perspective, our balance sheet remains strong. Operating cash flow for the first half of 2026 was $32.5 million, up 29% from $25.2 million in the first half of 2025. As of June 30, we had $73.7 million in unrestricted cash and cash equivalents plus $19 million in restricted cash. We have full unused capacity on our $50 million revolving credit facility and only $3 million of term debt outstanding, giving us total liquidity of approximately $142.7 million. And with that, I will now turn it back to Gordy for closing remarks. Richard Bunch: Thank you, Janice. Turning to our outlook. We are raising our 2026 guidance based on the strong first half performance and our line of sight to the balance of the year. We now expect total revenues of $300 million to $320 million, up from $285 million to $300 million. Organic revenue growth of 13% to 17%, up from 10% to 15%. And adjusted EBITDA margins of 23% to 27%, up from 22% to 25%. As we look ahead, our strategy is unchanged and the drivers of our performance are compounding. We believe our diversified platform spanning independent agencies, corporate branches and proprietary MGA programs is positioned to capitalize on the current market dynamics. The MGA platform is scaling through 3 durable growth drivers: APIA's proprietary commercial MGA, MGA's Florida's voluntary homeowners program, TWICO's Texas homeowner program and the renewal tail of our Citizens takeout portfolio. Our corporate branch model continues to deliver operating leverage, while our technology and AI investments are making agents more productive and improving client services. The insurance industry remains complex and fragmented, which increases the value of trusted advice. Deep carrier relationships and local market expertise will win the day. Our proprietary technology and 25 years of data create a competitive moat, while the TWFG family culture continues to support employee engagement, agent loyalty and client retention. In closing, I want to thank our employees, our agents, our carrier partners and our shareholders for their continued trust and commitment to TWFG. The years ahead will bring tremendous opportunities for all of us, and we look forward to sharing more of our medium-term financial framework and strategic road map at our Investor Day on November 12, 2026. With that, operator, please open the line for questions. Operator: [Operator Instructions] Our first question comes from the line of Tommy McJoynt from KBW. Thomas Mcjoynt-Griffith: The first one here, when we look at the strong cash flows that the business generates and seeing plenty of dry powder on the credit facilities, is it reasonable to not model either additional acquisitions or continued pace of buybacks in the back half of the year? Richard Bunch: Good question, Tommy. Hopefully, I articulated that we do have an active M&A pipeline. We -- when we do our modeling for guidance, we do our assumed amount of M&A in our base guidance. We don't generally adjust that upward unless we end up in a definitive agreement. There is potential upside in the back half of the year for M&A activity, but it's not built into our base guide. So that would be potential upside that's not captured in our updated guidance. Thomas Mcjoynt-Griffith: Okay. Got it. And then switching over as we start thinking about organic growth and some of the comps that you've seen in the first half of the year. So has the Florida MGA tailwinds to the organic growth in the first half of the year, have those been significant enough that we might expect to see organic face some really tough comps in the first half of '27? Are they significant enough where organic could turn negative or be close to 0? Can you help us just sensitize to how much of a tailwind it has been and how much of a difficult comp it could be in '27? Richard Bunch: Sure. So if I'm looking at the impact of Florida, really, the first impact to organic was in the second quarter. And the offset to that is going to be in the fourth quarter of '26. So the takeout policies when they were in runoff were being paid on an earned basis through the expiration of the policy. And then when it renewed into its natural expiration date, it renewed into a different period. So we do have premium that was present in the fourth quarter and a little in the third quarter of 2025 that has already renewed in the first quarter or second quarter of 2026 that won't be there to lap in the third and fourth quarter of '26. We do have that factored in. So if I'm looking at third quarter, third quarter for us, we're still going to be in the double-digit teens for organic even with that dynamic. The fourth quarter is where we have the bigger headwind, where we had compounding runoff policies in that period that have already renewed into a different period. And that's why when you look at the full guidance for full calendar year 2026, we're giving you that 13% to 17%. So I would look at fourth quarter right now as a flattish organic, and that would really be just taking out the noise from prior year takeout policies that were present in that period that now showed up in first quarter, second quarter of this year. And a little bit into the third quarter of this year. And then if you take out the impacts of takeout business in the second quarter, our core organic still would have been in the high teens. So it kind of gets you to where we think there's noise with Citizens takeout depending on the period that the earned premium was present and then what period did the policy actually renew into for a long-term basis. As far as the impact rolling into '27, Janice, you'd have to answer that. I don't think we have a tremendous amount of takeout business that ends up skewing '27 data. Janice Zwinggi: Yes, Gordy, that's correct. And we're still fine-tuning '27. We'll have a better idea as we get closer to the end of this year to see on the new business for Florida and even the renewals, how we're going to play out. But you hit it on the head there. Operator: And our next question comes from the line of Mike Zaremski from BMO Capital Markets. Michael Zaremski: The first is regarding the organic growth trajectory for Agency-in-a-Box and Corporate Branches, so ex the MGAs. It appears there's increasing momentum. Gordy, in your prepared remarks, I think you talked about this environment being more conducive for share gains. And you obviously talked about pricing still being a bit of an absolute headwind. I'm not sure if it's increased sequentially or not. But can you kind of talk to bigger picture or maybe smaller picture too, what -- why you think this environment is more conducive for share gains and whether pricing is still impacting the organic rate of growth? Or is it kind of still -- is it more steady pricing, kind of, at the same negative level as previous quarters? Richard Bunch: Yes. Good question, Mike. So we do still see pricing as you follow all the carriers, every carrier out there is still having excellent combined ratios, and there's a significant amount of competition for growth. So we are seeing the nationals, the regionals and the super regionals still working on their pricing algorithms. We are seeing PIF count growth, albeit at a lower average premium. And so we do end up with new business velocity that supports the long-term organic. We're just not going to have any of the gains that you're going to have in a more rate-taking environment where that would support pushing it up even further. So Agency-in-a-Box and corporate stores, they're still getting good organic growth, but a lot of that is being supported by now retention and new business growth versus in the hard market, you had more from retention and rate. So being able to add more policies and policyholders into the portfolio as rates normalize and go back to mid-single-digit increases, that should support a rebound to the organic in the out periods. So we're still holding good. If we look at isolating the organic for retail, it's still going to be a double-digit organic year for 2026. And we think that's very strong given where we've seen the peers reporting. Michael Zaremski: Got it. That's helpful, Gordy. Just maybe nitpicking here, knowing cash flows can be volatile from quarter-to-quarter. Any -- just came in, I guess, meaningfully lower than consensus had expected. Anything we should be cognizant of there or just normal volatility? Richard Bunch: You're talking about the cash flow from adjusted net income? Michael Zaremski: Correct. I think the $4 million-ish figure. Richard Bunch: Yes. I think that's netting out this tax distributions to LLC unitholders and distributions to that shareholder class. Janice, you can correct me if I'm wrong, but exclusive of those distributions, you may be able to shed a little more light on Mike's question. Janice Zwinggi: No, I think that was the majority of it, Gordy, was the distributions. But I don't have it -- I'm sorry, I don't have it in front of me, the cash... Michael Zaremski: Okay. Got it. We were just looking at the $9.8 million versus $9.6 million in the prior year. So I think consensus was more -- had a bigger increase. So we can take it offline, too. Janice Zwinggi: Right. Well, we did use some cash for our acquisitions this year. So more so than the prior year. But you're right, the tax distribution of members was similar to what it was in Q2 '25. Operator: [Operator Instructions] Our next question comes from the line of Rowland Mayor from RBC Capital Markets. Rowland Mayor: Gordy, I wanted to quickly ask, you had talked about potential transformative acquisitions prior to all the volatility in the stock. With the share somewhat recovering that, are those deals potentially back on the table later this year? Richard Bunch: I would say we have an active M&A pipeline and with recovery, those opportunities will be resurfaced and revisited. And we did not incorporate any of that potential in our updated guidance, which does imply there could be upside at the back half of '26. So we are back in a position where we can start to entertain those transactions again. Rowland Mayor: And then for my follow-up, the contingents are up a bit, but I don't think they drove the margin upside you had reported. Could you maybe walk through the moving pieces on the margin this year and maybe unit contribution? Richard Bunch: Let me try to answer the contingent question first. I think as we noted in the first quarter call, our contingency for our guidance for '26 is below the actualized ratios we had in 2025. We entered the calendar year knowing we were going into a softening market where pricing was coming down, anticipating that the loss ratio metrics of those profit-sharing agreements would degradate over time. So far, we have not seen that play out. The carriers are still showing excellent profitability year-to-date. I did mention last call that we will update the contingency after the third quarter. The third quarter is when we get our lock-in agreements and we have great line of sight to where we think those will ultimately come in. So there is still upside in the margin and upside on total revenue relative to contingent income as we get into that third quarter update. And I know this year, we're doing updates more frequently to guidance just based on some of the lumpiness with Florida and then also this contingency dynamic. Operator: And our next question is a follow-up from the line of Mike Zaremski from BMO Capital Markets. Michael Zaremski: Great. Gordy, going back to your comments on '27, if I interpreted correctly or heard correctly, not having significant headwinds. I thought the Florida MGA takeouts would post a headwind just because it's unlikely they renew 100% of policies. Is that not the case? Maybe you can help us understand, are you now expecting a better renewal rate on those policies? Or is there new growth dynamic to the Florida MGA or et cetera, that we're not appreciating? Richard Bunch: Certainly. So I'll frame it like this. The first quarter, second quarter, both had better renewal retention dynamics than our base model. And so we have, in the back half of '26, increased our retention assumptions based now on having a longer data set to work from. In the MGA Florida, I think what's less appreciated is that we have a voluntary program that is separate and aside from the Citizens takeout business. That's true organic new customers coming through the 700-plus appointed agencies that write voluntary new clients through the MGA Florida program. And so part of what drove the second quarter organic into the 37% range, a large contribution of that was voluntary new business not tied to Citizens takeout. So net new customers through a newly appointed distribution channel via that MGA Florida expansion. And so that voluntary program will continue to exist going into the back half of '26 and into '27. It has actually been present since May of 2025. It didn't start getting significant production traction until the later half of the first quarter of '26 and then really had significant growth in the second quarter of '26. So there is that offsetting renewal retention pressure from the ability to rewrite new accounts in that voluntary market. Michael Zaremski: Got it. Okay. That's super helpful. And maybe since there's still plenty of time, one more follow-up. Maybe you can give us any update on a year plus ago when you did the, I guess, deal with, I believe it was American National. That was kind of somewhat of a unique, kind of, not an acquisition, but right, agent acquisition. Maybe you can kind of give us any update on how that's been playing out and whether that's -- any quantification to -- we'd love numbers and kind of how the rest of the book is rolling over on the auto side, which I know didn't come with it, et cetera. Richard Bunch: Sure. So we don't have cohort analytics to share with you, but I can say that one positive shift in that portfolio on that group of agents, when we added them into our distribution, they were personal lines only and still restricted for commercial lines. As of the end of June, they no longer are commercial lines restricted. So we are in the process now of onboarding those agencies to add commercial lines portfolio into their TWFG relationship. So we do see that as a conduit for additional growth. The vast, vast majority of them have done very well in our business model and moved the expiring nonrenewing property into our platform. The auto now that we're in a softer market. So when they came in midway through 2024, we were still in the midst of a hard market. And our auto rates at that point through our platform were not constructive for their clients to move. Now that we've expanded with additional carriers, as well as the incumbent carriers moving price down and becoming more competitive, that's starting to migrate over as well. So they're part of that supporting the Agency-in-a-Box growth story and can impact it even more now that we're able to add commercial lines into their portfolios. Operator: And our next question comes from the line of Pablo Singzon from JPMorgan. Pablo Singzon: I joined the call late, so apologies if this is covered already. But Gordy, the first question I had was some of your competitors are talking about comp and commission rates being renegotiated by carriers in the sort of, I guess, more open environment where they want to grow. Have you seen the same on your end? And what -- yes, I guess, sort of perspective on what's going on with you and your carriers? And how do you think that affects your growth trajectory from here? Richard Bunch: So I think we are getting what I would call new business incentives, quarterly incentives. They're coming out with what we would call a spiff, which is incenting downstream to our service employees. And so you are seeing carriers trying to compete not just on price, but on comp in order to get portfolio and retain either their market share or grow their market share. I don't look at some of those near-term compensation agreements as long-term factors because they tend to be short in nature. And next time a hard market presents itself, they disappear pretty quick. But we are getting that. We are getting new business incentives. We are getting quarterly incentives. And then some of the markets are coming out more favorably on the profit sharing and contingency side as well, as they're all fighting for growth. And that's just a component of a soft market. Some carriers are offering book roll incentives, which we tend not to participate in. We like to be loyal to the carriers that have provided their capacity to us in good times and bad times. And so we try to just work with our markets and say, if we have a carrier that's out of market on comp and the rest of our portfolio is moving upward, we do share that feedback with the market, letting them know that they're no longer in a competitive environment. Even if their product and pricing is competitive, if they're not competitive on compensation, that's something that we do raise and try to address with them. But I will say in a soft market environment, it is very much an incentive-driven environment now for the carriers to try to get everybody's attention to turn their way. And they can do that with comp or they can do that with rate, or even underwriting guidelines that are also loosening up substantially from where they were just 2 years ago. Pablo Singzon: And then my follow-up, I was wondering if you strip out the effect of the Florida book, what did you say is sort of your new business growth rate for, sort of, the core agency franchise? Richard Bunch: I don't know that I gave that metric. I know, Pablo, you said you came on late, so I will say that I did already state that excluding Florida takeout business and the renewals thereof, our organic still would have been in the high teens. So hopefully, that's helpful to answer your question. I don't know, Janice, if you have a new business percentage for just retail. I do think we had a shift in growth where our new business ratio was higher than the contributing renewal portfolio from the prior period. But I don't have that in front of me, Pablo, maybe Janice does. Janice Zwinggi: I have -- well, what we did disclose was that consolidated retention, excluding MGA Florida, was 88% compared to the 93% that we have. And if I can disclose this, the MGA piece was 110%, but excluding Florida, it would be 71%. So the consolidated retention of 88% is more in line with our norm. Richard Bunch: I think he was more -- to know about the new business mix of Insurance Services. So how much of it... Janice Zwinggi: Yes, the renewal is what spiked up so much on Insurance Services, not so much the new business. Operator: Thank you. This does conclude the question-and-answer session of today's program. I'd like to hand the program back to Gordy Bunch for any further remarks. Richard Bunch: Well, thank you, everybody, for taking time to hear what I consider to be our best TWFG quarter to date. We appreciate all your thoughtful questions. I do want to reiterate that our updated guidance is consistent with our business model, our projections and what's in our line of sight. We did note there are at least 2 potential upsides to revenue and margin that we will update during our third quarter call, that being contingencies, which we get our more fulsome update from our carrier partners in the third quarter. And as well as M&A where we have already achieved our guided M&A activity. We still do have an active M&A pipeline, and there is potential upside for us if we transact any additional acquisitions in the remaining 2 quarters of '26. So we do appreciate our shareholders, our agents, our staff and everyone who attended today's call, and appreciate and look forward to hosting everybody, November 12. If you can mark your calendars, we will be hosting our Investor Day at the home office of TWFG and look forward to hosting many here in person on November 12. Thank you for your time today, and thank you for your trust. Appreciate you. Operator: Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day. Before you buy stock in Twfg, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Twfg wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Twfg. The Motley Fool has a disclosure policy. TWFG (TWFG) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in TWFG, Inc.? Here are five stocks we like better. Strong Q2 performance: Revenue rose 45.1% to $87.5 million, while adjusted EBITDA increased 75.8% to $26.6 million, supported by higher retention, acquisitions and rapid MGA expansion. MGA operations drove growth: MGA written premium more than doubled, and MGA commission income surged 290% to $27.3 million, representing 35% of total revenue. Management cautioned that a temporary commission-expense benefit from Florida policy takeouts will normalize over time. 2026 outlook raised: TWFG now expects revenue of $300 million to $320 million, organic growth of 13% to 17% and adjusted EBITDA margins of 23% to 27%. The company also reported strong liquidity and has nearly completed its $50 million share-repurchase program. TWFG (NASDAQ:TWFG) reported second-quarter 2026 revenue growth of 45.1% and raised its full-year outlook, citing expansion in its managing general agency, or MGA, operations, improving retention and contributions from acquisitions. Total revenue increased to $87.5 million from the prior-year quarter, while organic revenue rose 37% to $75.5 million. Adjusted EBITDA increased 75.8% to $26.6 million, and the adjusted EBITDA margin expanded 530 basis points to 30.4%. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Chief Executive Officer Gordy Bunch said the results reflected investments in the company’s MGA platform, carrier relationships, technology and personnel. Total written premium rose 26.6% to $569.9 million, supported by a 19.3% increase in renewal premium and a 51.6% increase in new-business premium. Consolidated written-premium retention reached 93%, compared with 89% a year earlier. Chief Financial Officer Janice Zwinggi said retention would have been approximately 88% excluding renewals associated with the company’s Florida Citizens takeout program, which was consistent with TWFG’s historical range. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Insurance services written premium grew 12.8% to reflect higher renewals, improved retention and the benefit of corporate branch acquisitions. MGA written premium more than doubled, increasing 114.8%, driven by the company’s voluntary Florida homeowners program, its first-quarter acquisition of APIA, and continued renewals from the Citizens takeout portfolio. Commission income rose 47.8% to $80.6 million. MGA commission income climbed 290% to $27.3 million and represented 35% of total revenue, up from 15% in the prior-year quarter. Bunch said the MGA channel has a structurally higher margin profile than insurance services. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling The company also benefited from a temporary commission-expense dynamic associated with policies assumed through the Florida takeout program. During the runoff period, those policies generate commission income without corresponding sub-producer commission expense. Bunch said that benefit is expected to normalize as policies renew with full-term premiums and standard commission expenses. Fee income increased to $4.2 million from $3.3 million, while contingent income was essentially flat at $2.2 million. Management said it has maintained a conservative posture on contingent income because of uncertainty around carrier loss ratios in a softening rate environment. Net income rose to $17.3 million from $9 million in the prior-year quarter. Adjusted net income increased 76.1% to $20.3 million, producing an adjusted net income margin of 23.2%, compared with 19.1% a year earlier. Adjusted diluted earnings per share increased to $0.38 from $0.20. Commission expense increased 24.4% to $42.5 million, a slower pace than commission income. Salaries and employee benefits rose 24.1% to $11.8 million, primarily due to acquisition-related headcount and corporate investments. Other administrative expenses increased 59% to $8.6 million, reflecting technology spending, acquired corporate-store expenses and public-company infrastructure. Depreciation and amortization rose 81.1% to $7.1 million, largely due to acquisition-related purchase accounting. Operating cash flow for the first half of 2026 was $32.5 million, up 29% from the first half of 2025. As of June 30, the company had $73.7 million of unrestricted cash and cash equivalents, $19 million of restricted cash, no borrowings under its $50 million revolver and $3 million of term debt. Zwinggi said total liquidity was approximately $142.7 million. TWFG completed the acquisition of Iowa-based Fortress Insurance Services on May 1. Bunch said Fortress completed the company’s acquisition objectives included in its 2026 guidance, with near-term attention focused on integrating first-half acquisitions. The company has an active acquisition pipeline, and management said any additional second-half deals would represent potential upside not included in guidance. The company’s $50 million share-repurchase authorization, approved in February, is nearly complete. Through the date of the call, TWFG had repurchased approximately $42.9 million of shares at an average price of $19 per share, retiring about 15% of its pre-program Class A share count. TWFG raised its 2026 outlook, now expecting: Total revenue of $300 million to $320 million, compared with prior guidance of $285 million to $300 million. Organic revenue growth of 13% to 17%, compared with 10% to 15% previously. Adjusted EBITDA margins of 23% to 27%, compared with 22% to 25% previously. Bunch said personal-auto rates have continued to moderate, including mid-single-digit declines in certain segments, while homeowners rates have been broadly flat with regional pressure in catastrophe-exposed areas. He said carrier appetite for quality independent-agent business remains strong, with growth-oriented insurers offering new-business and quarterly incentives. Management expects organic growth to remain in the double-digit teens during the third quarter, despite timing effects from the Florida takeout business. Bunch said fourth-quarter organic growth could be “flattish” because prior-year runoff premiums renewed earlier in 2026 and will not recur in the same periods. Excluding the Florida takeout business, he said second-quarter core organic growth would have been in the high teens. The company plans to host an Investor Day on Nov. 12, where management expects to discuss its medium-term financial framework, MGA strategy, geographic expansion and technology roadmap. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "TWFG Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

TWFG, Inc. (TWFG) came out with quarterly earnings of $0.38 per share, beating the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.2 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +52.00%. A quarter ago, it was expected that this company would post earnings of $0.2 per share when it actually produced earnings of $0.29, delivering a surprise of +45%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. TWFG, Inc., which belongs to the Zacks Insurance - Multi line industry, posted revenues of $87.51 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 16.64%. This compares to year-ago revenues of $60.31 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. TWFG, Inc. shares have lost about 4.8% since the beginning of the year versus the S&P 500's gain of 13%. While TWFG, Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for TWFG, Inc. was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.24 on $74.97 million in revenues for the coming quarter and $1.03 on $298.3 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Multi line is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Hamilton Insurance (HG), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This provider of insurance and reinsurance services is expected to post quarterly earnings of $0.96 per share in its upcoming report, which represents a year-over-year change of -38.1%. The consensus EPS estimate for the quarter has been revised 1.9% higher over the last 30 days to the current level. Hamilton Insurance's revenues are expected to be $687.02 million, down 7.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TWFG, Inc. (TWFG) : Free Stock Analysis Report Hamilton Insurance Group, Ltd. (HG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. TWFG Inc (NASDAQ:TWFG) delivered outstanding Q2 2026 results with total revenues growing 45.1% to $87.5 million and organic revenue growth of 37%, driven by strong new business generation and improved retention. Adjusted EBITDA grew 75.8% to $26.6 million with margin expansion of 530 basis points to 30.4%, reflecting strong operating leverage and the higher margin profile of the MGA platform. The MGA channel is scaling rapidly, with commission income increasing 290% quarter-over-quarter and now representing 35% of total revenues, up from 15% in the prior year quarter. Consolidated written premium retention reached a record 93%, up from 89% in the prior year period, reflecting strong client relationships and improving carrier availability. The company raised its full-year 2026 guidance for total revenues, organic growth, and adjusted EBITDA margins, and completed a highly accretive $50 million share repurchase program, retiring approximately 15% of its pre-program Class A share count. TWFG Inc (NASDAQ:TWFG) maintains a strong balance sheet with total liquidity of approximately $142.7 million, providing flexibility for growth investments, accretive M&A, and capital returns. Organic growth in Q2 2026 was significantly boosted by the Citizens Takeout renewal dynamics, and excluding this impact, core organic growth was in the high 10s, indicating a reliance on this non-recurring tailwind. The company expects a significant headwind to organic growth in Q4 2026, with organic growth projected to be flattish due to the lapsing of prior-year takeout policies, creating lumpiness in financial results. Personal auto rates continue to moderate with mid-single-digit declines in certain subsegments, and homeowners' rates are broadly flat, creating a challenging pricing environment that pressures organic growth. Contingent income remained flat at $2.2 million due to a conservative posture given carrier loss ratio uncertainty in the softening rate environment, with potential upside dependent on Q3 carrier updates. Other administrative expenses increased 59% to $8.6 million, and depreciation and amortization increased 81.1% to $7.1 million, reflecting rising costs from acquisitions and public company infrastructure investments. Operating cash flow for the first half of 2026 was impacted by tax distributions to LLC unit holders and cash used for acquisitions, resulting in a lower-than-expected cash flow figure that missed consensus estimates. Warning! GuruFocus has detected 3 Warning Signs with ARGTF. Is TWFG fairly valued? Test your thesis with our free DCF calculator. Q: Given the strong cash flows and dry powder on credit facilities, is it reasonable to not model either additional acquisitions or continued buybacks in the back half of the year?A: Gordy Bunch (CEO): We have an active M&A pipeline. Our base guidance includes an assumed amount of M&A, and we don't adjust that upward unless we reach a definitive agreement. There is potential upside for M&A activity in the back half of the year, but it is not built into our base guide, so any additional transactions would be incremental to our updated guidance. Q: Has the Florida MGA tailwind to organic growth in the first half been significant enough that we might see tough comps or even negative organic growth in the first half of '27?A: Gordy Bunch (CEO): The first impact to organic from Florida was in Q2, with the offset coming in Q4 of '26. We expect Q3 organic to remain in the double digits, but Q4 will face a bigger headwind, likely resulting in flattish organic growth. Excluding the takeout business impact in Q2, our core organic growth was still in the high teens. We don't expect a tremendous amount of takeout business to skew 2027 data. Q: Can you talk about the organic growth trajectory for Agency in a Box and corporate branches, excluding MGAs? Why is this environment more conducive for share gains, and is pricing still impacting the organic rate of growth?A: Gordy Bunch (CEO): We still see pricing pressure as carriers compete for growth with excellent combined ratios. We are seeing policy count growth at lower average premiums, supporting long-term organic growth through retention and new business rather than rate. Isolating the retail organic, we still expect a double-digit organic year for 2026, which is strong relative to peers. Q: You previously talked about potential transformative acquisitions before the stock volatility. With the recovery, are those deals potentially back on the table later this year?A: Gordy Bunch (CEO): We have an active M&A pipeline, and with the recovery, those opportunities will be resurfaced and revisited. We did not incorporate any of that potential in our updated guidance, implying there could be upside in the back half of 2026. We are back in a position to entertain those transactions again. Q: Contingents are up a bit but didn't drive the margin upside. Could you walk through the moving pieces on the margin this year?A: Gordy Bunch (CEO): Our contingency guidance for '26 is below 2025 actuals as we anticipated a softening market. However, carriers are still showing excellent profitability year-to-date. We will update contingency after Q3 when we get lock-in agreements, so there is still upside in margin and total revenue relative to contingent income. Q: Regarding 2027, I thought the Florida MGA takeouts would post a headwind due to unlikely 100% renewal. Is that not the case? Are you expecting better renewal rates or new growth dynamics?A: Gordy Bunch (CEO): Q1 and Q2 both had better renewal retention dynamics than our base model, so we've increased retention assumptions for the back half of '26. What's less appreciated is our voluntary Florida homeowners program, separate from Citizens Takeout, which drives true organic new customers through 700-plus appointed agencies. This voluntary program contributed significantly to the 37% organic growth in Q2 and will continue into '27, offsetting renewal retention pressure. Q: Can you provide an update on the American National agent acquisition from over a year ago and how that book is rolling over?A: Gordy Bunch (CEO): We don't have cohort analytics to share, but a positive shift is that these agents, previously restricted to personal lines, are no longer commercial lines restricted as of end of June. We're onboarding them to add commercial lines portfolios. The vast majority have moved expiring non-renewing property into our platform. Auto is now migrating over as we've expanded carriers and the softer market makes rates more competitive. Q: Some competitors are talking about comp and commission rates being renegotiated by carriers in this open growth environment. Have you seen the same, and how does that affect your growth trajectory?A: Gordy Bunch (CEO): We are receiving new business incentives and quarterly incentives (SPIFs) downstream to service employees. Carriers are competing on price and comp to grow market share. We view near-term compensation agreements as short-term factors that disappear in hard markets. Some carriers offer book-roll incentives, which we tend not to participate in, preferring loyalty to carriers that provided capacity in good and bad times. We do share feedback when carriers are out of market on comp. Q: If you stripped out the effect of the Florida book, what is the new business growth rate for the core agency franchise?A: Gordy Bunch (CEO): Excluding Florida takeout business and renewals, our organic growth would still have been in the high teens. Janice Lenny (CFO) added that consolidated retention excluding MGA Florida was 88% compared to 93% reported, and the MGA piece retention was 110%, but excluding Florida it would be 71%. The renewal spike was primarily in insurance services, not new business. Q: The cash flow came in lower than consensus. Is there anything we should be cognizant of, or is it normal volatility?A: Gordy Bunch (CEO): The lower cash flow is netting out tax distributions to LLC unit holders and distributions to that shareholder class. Janice Lenny (CFO) confirmed the majority was distributions, and we also used more cash for acquisitions this year compared to the prior year. The tax distribution of members was similar to Q2 '25. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Total revenue growth of 45.1% was primarily driven by the MGA platform's expansion, where commission income increased 290% quarter-over-quarter. Organic revenue growth of 37% reflected the successful transition of Florida Citizens takeout policies and strong underlying core business performance. Management attributes the 530 basis point adjusted EBITDA margin expansion to the structurally higher margin profile of the MGA channel and temporary runoff benefits from assumed Florida policies. Consolidated written premium retention reached a record 93%, supported by improving carrier availability and strong client relationships. The market environment is shifting toward a soft market, with personal auto rates moderating and carriers offering competitive new business incentives to gain share. Strategic positioning is bolstered by a proprietary technology stack and 25 years of underwriting data, which management is leveraging for AI-enabled agent productivity. The acquisition of Fortress Insurance Services supports the company's expansion into Midwest markets and completes the base M&A objectives for the 2026 guidance year. Full-year 2026 revenue guidance was raised to $300 million to $320 million, reflecting strong first-half execution and visibility into the renewal pipeline. Organic growth is expected to moderate to a 'flattish' level in Q4 2026 due to difficult comparisons from the timing of prior year Florida takeout renewals. Management anticipates potential upside to guidance from an active M&A pipeline and the finalization of contingent income agreements in the third quarter. The MGA platform is expected to scale through three durable drivers: APIA's commercial MGA, Florida's voluntary homeowners program, and the TWICO Texas program. Guidance assumes a normalization of margins as Florida takeout policies renew with standard commission expenses, replacing the current high-margin runoff period. The current margin benefit from Florida takeout policies is temporary, as these policies currently generate commission income without corresponding commission expense during the runoff. Contingent income remained flat as management maintains a conservative posture due to carrier loss ratio uncertainty in a softening rate environment. The company has essentially completed its $50 million share repurchase program, having repurchased approximately $42.9 million to date., retiring approximately 15% of its pre-program Class A share count. Operating expenses increased due to added headcount from acquisitions and investments in public company infrastructure and scalable technology. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that while Q4 2026 faces a tough comp, core organic growth remains in the high teens when excluding the noise from Citizens takeout business. The voluntary Florida homeowners program (non-takeout) is seeing significant traction, which helps offset potential renewal pressure in the MGA segment. Carriers are increasingly using 'spiffs' and quarterly incentives to compete for growth as combined ratios remain healthy. TWFG is leveraging its scale to ensure carrier compensation remains competitive, though they avoid 'book roll' incentives to maintain carrier loyalty. The company has resumed evaluating 'transformative' acquisitions following the recovery of its stock price. Current guidance does not include any potential second-half M&A, representing a source of potential financial upside. Agents from the 2024 American National deal are now being cleared of commercial lines restrictions, providing a new conduit for growth. Improving auto rate competitiveness is allowing these agents to migrate more of their existing books onto the TWFG platform.

– Total Revenues increased 45.1% for the quarter over the prior year period to $87.5 million –– Organic Revenue Growth Rate* of 37.0% for the quarter –– Net income of $17.3 million and Net Income Margin of 19.7% for the quarter –– Adjusted EBITDA Margin* expanded 530 basis points to 30.4% –– Raising full-year 2026 guidance – THE WOODLANDS, Texas, Aug. 05, 2026 (GLOBE NEWSWIRE) -- TWFG, Inc. (“TWFG”, the “Company” or “we”) (NASDAQ: TWFG), a high-growth insurance distribution company, today announced results for the second quarter ended June 30, 2026. Second Quarter 2026 Highlights Total revenues for the quarter increased 45.1% to $87.5 million, compared to $60.3 million in the prior year period Commission income for the quarter increased 47.8% to $80.6 million, compared to $54.6 million in the prior year period Net income for the quarter was $17.3 million, compared to $9.0 million in the prior year period, and net income margin for the quarter was 19.7% up from 14.9% in the prior year period Diluted Earnings Per Share for the quarter was $0.18 and Adjusted Diluted Earnings Per Share* for the quarter was $0.38 Total Written Premium for the quarter increased 26.6% to $569.9 million, compared to $450.3 million in the prior year period Organic Revenue Growth Rate* for the quarter was 37.0% Adjusted Net Income* for the quarter increased 76.1% from the prior year period to $20.3 million, and Adjusted Net Income Margin* for the quarter was 23.2% Adjusted EBITDA* increased 75.8% to $26.6 million, with Adjusted EBITDA Margin expanding 530 basis points to 30.4%, compared to 25.1% in the prior year period Approximately $42.9 million in cash was used to repurchase 2,252,349 shares under the Company's $50 million share repurchase authorization, leaving approximately $7.1 million available for future repurchases. *Organic Revenue Growth Rate, Adjusted Net Income, Adjusted Net Income Margin, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Diluted Earnings Per Share are non-GAAP measures. Reconciliations of Organic Revenue Growth Rate to total revenue growth rate, Adjusted Net Income and Adjusted EBITDA to net income, Adjusted Diluted Earnings Per Share to diluted earnings per share and Adjusted Free Cash Flow to cash flow from operating activities, the most directly comparable financial measures presented in accordance with GAAP, are outlined in the reconciliation table accompanying this release. “Our second quarter results demonstrate our focus on delivering double digit growth. Written premium grew 26.6% with revenue growth of 45.1%, and our Adjusted EBITDA Margin expanded to 30.4%. Growth was driven across our Agency-in-a-Box, Corporate Stores, and MGA programs, along with contributions from our recent acquisitions,” said Gordy Bunch, CEO. “Operationally, we remain focused on the fundamentals that drive sustainable, profitable growth, including disciplined producer recruiting, deepening carrier partnerships, and continued investment in our proprietary technology to improve agent productivity and provide the best client experience. Our MGA programs continue to scale efficiently, contributing to expanding margins across the enterprise.” Second Quarter 2026 Results During the quarter, industry conditions remained favorable for TWFG's distribution model even as personal auto pricing continued downward industry-wide and homeowners rate increases continued to moderate. TWFG's diversified distribution platform, combining independent agency operations, proprietary MGA programs, and technology-enabled systems, continued to convert favorable carrier economics into premium growth and margin expansion. For the second quarter, Total Written Premium increased 26.6% to $569.9 million, compared with $450.3 million in the same period of the prior year. Growth was primarily volume-led rather than rate driven, consistent with the moderating rate environment, and was supported by three key factors: (1) continued organic growth in the Agency-in-a-Box network, including increased policy count and strong client retention; (2) continued scaling of the Company’s MGA programs; and (3) contributions from new corporate store acquisitions. Consolidated written premium retention was 93% for the quarter, up from 89% in the prior year period, Consolidated written premium retention excluding takeout renewals from TWFG MGA FL, LLC (“MGA FL”), was approximately 88%. Total revenues increased 45.1% to $87.5 million, compared to $60.3 million in the same period in the prior year, outpacing written premium growth by nearly 20 percentage points. This spread reflects a structural mix shift towards a higher-commission-rate business: Key TWFG MGA programs carry commission rates above 20% versus approximately 12% for the core Agency-in-a-Box network, and now represents a substantially higher share of total commission income than of total written premium. Organic Revenues, which exclude contingent, non-policy fee, other income, and those revenues generated from recently acquired businesses, were $75.5 million for the quarter, an increase of $20.4 million from $55.1 million in the same period last year. The Organic Revenue Growth Rate of 37.0% was driven by structural tailwinds from the 2025 MGA FL Citizens** takeout policies renewing into the quarter where the prior period had very little commissions. Commission expense for the quarter increased 24.4% to $42.5 million, reflecting acquisitions and continued production growth, while growing meaningfully slower than commission income; a roughly 2,300 basis point spread reflecting favorable mix shift and earned revenue with no corresponding commission expense for takeout policies and acquired books of business. Salaries and employee benefits were $11.8 million, up 24.1% compared to $9.5 million in the same period in the prior year, primarily due to incremental headcount associated with the Company’s continued acquisition strategy, MGA Florida infrastructure build-out, and public company maturity. Other administrative expenses rose 59.0% to $8.6 million, primarily driven by our completed acquisitions and continued investments to support our growth initiatives. Net income for the quarter was $17.3 million, compared to $9.0 million in the same prior year period resulting in a net income margin of 19.7%, up from 14.9% last year. Adjusted Net Income increased 76.1% to $20.3 million, with an Adjusted Net Income Margin of 23.2% compared to 19.1% in the same period in the prior year. Adjusted EBITDA grew 75.8% to $26.6 million, reflecting strong operating leverage across the platform, the higher-margin profile of our MGA operations, and the contribution of recent acquisitions including APIA and corporate store additions. The Adjusted EBITDA Margin expanded to 30.4%, compared to 25.1% in the second quarter of 2025. Cash flow from operating activities was $9.8 million, compared to $9.6 million in the same period of the prior year. Adjusted Free Cash Flow was $3.6 million, compared to $2.9 million in the same period of the prior year, primarily driven by the increase in net income, decrease in tax distributions to members, with a slight offset due to the increase in purchase of property and equipment in the current period. **A Citizens takeout refers to the Citizens Property Insurance Corporation depopulation program in Florida, under which policies are transferred from the state-backed insurer to approved private insurance carriers. This program is designed to reduce Citizens’ policy count and increase private market participation. Liquidity and Capital Resources As of June 30, 2026, the Company had unrestricted cash and cash equivalents of $73.7 million. We had full unused capacity on our revolving credit facility of $50.0 million as of June 30, 2026. The total outstanding term notes payable balance was $3.0 million as of June 30, 2026. During the first quarter of 2026, the Company's Board of Directors authorized a share repurchase program of up to $50.0 million of the Company’s Class A common stock. The authorization reflects the Board’s confidence in TWFG’s long-term growth outlook, strong cash generation profile and disciplined capital allocation framework. As of June 30, 2026, the Company had repurchased approximately $43.3 million under the program, with approximately $7.1 million remaining available for future repurchases. The program does not obligate the Company to repurchase any specific number of shares and may be suspended or discontinued at any time. 2026 Acquisitions Update TWFG Insurance Services completed the acquisition of Fortress Insurance Services, an Iowa-based independent agency with five locations, effective May 1, 2026, complementing our previous Midwest additions. This transaction joins a broader roster of 2025–2026 corporate store and MGA acquisitions — including Loften Wells, Mears, McInnis, Angers & Litz, Alabama Insurance Agency, and APIA — that together contributed approximately $51.0 million of incremental written premium in the first half of 2026. Updated 2026 Outlook Based on year-to-date performance and current business trends, the Company is increasing its full-year 2026 financial outlook: The updated outlook reflects stronger-than-expected performance across the core businesses and subsequent acquisitions. The Company is unable to provide a reconciliation of Organic Revenue Growth or Adjusted EBITDA Margin guidance to the most directly comparable GAAP measures without unreasonable effort due to the inherent difficulty in forecasting the timing and magnitude of items that have not yet occurred. The Company believes any such difference would be immaterial. *For a definition of Organic Revenue Growth Rate and Adjusted EBITDA Margin, see “Non-GAAP Financial Measures” below. Investor Day TWFG will host an Investor Day on November 12th, 2026, from 10:00 a.m. to 3:00 p.m. Central Time at its home office, located at 10055 Grogans Mill Road., Suite 500, The Woodlands, Texas. Conference Call InformationTWFG will host a conference call to discuss its financial results at 11:00 a.m. Central Time (12:00 p.m. Eastern Time) on August 6, 2026. CLICK HERE TO ACCESS THE CALL BY WEBCAST To register for access to the live conference call: Click on the link below and complete the online registration form. Upon registering you will receive the dial-in info and a unique PIN to join the call as well as an email confirmation with the details. Select a method for joining the call: Dial-In: A dial in number and unique PIN are displayed to connect directly from your phone. Call Me: Enter your phone number and click “Call Me” for an immediate callback from the system. The call will come from a US number. CLICK HERE TO REGISTER A replay of the webcast will be available on the Investor Relations website for a limited time following the call. About TWFG TWFG (NASDAQ: TWFG) is an independent distribution platform for personal and commercial insurance in the United States. TWFG represents hundreds of insurance carriers across personal and commercial lines, serving clients through its network of branches, corporate stores and managing general agency operations. For more information, please visit twfg.com. Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical fact included in this release, are forward-looking statements. Forward-looking statements give our current expectations relating to our financial condition, results of operations, plans, objectives, future performance, and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “outlook,” “predicts,” “potential” or “continue,” the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business, as well as statements regarding our share repurchase program, including the timing, amount, or completion of any repurchases. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including those factors discussed under the captions entitled “Risk factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K, any Quarterly Reports on Form 10-Q and the other documents that the Company files with the U.S. Securities and Exchange Commission. You should specifically consider the numerous risks outlined under “Risk factors” in the Annual Report on Form 10-K for the year ended December 31, 2025. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. Non-GAAP Financial Measures and Key Performance Indicators Non-GAAP Financial Measures Organic Revenue, Organic Revenue Growth, Adjusted Net Income, Adjusted Net Income Margin, Adjusted Diluted Earnings Per Share, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Free Cash Flow included in this release are not measures of financial performance in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and should not be considered substitutes for GAAP measures, including revenues (for Organic Revenue and Organic Revenue Growth), net income (for Adjusted Net Income, Adjusted Net Income Margin, Adjusted EBITDA and Adjusted EBITDA Margin), diluted earnings per share (for Adjusted Diluted Earnings Per Share), and cash flow from operating activities (for Adjusted Free Cash Flow), which we consider to be the most directly comparable GAAP measures. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, you should not consider these non-GAAP financial measures in isolation or as substitutes for revenues, net income, operating cash flow or other consolidated financial statement data prepared in accordance with GAAP. Other companies may calculate any or all of these non-GAAP financial measures differently than we do, limiting their usefulness as comparative measures. Organic Revenue. Organic Revenue is total revenue (the most directly comparable GAAP measure) for the relevant period, excluding contingent income, non-policy fee income, other income and those revenues generated from acquired businesses with over $0.5 million in annualized revenue that have not reached the twelve-month owned mark. Organic Revenue Growth. Organic Revenue Growth is the change in Organic Revenue period-to-period, with prior period results adjusted to include revenues that were excluded in the prior period because the relevant acquired businesses had not reached the twelve-month-owned milestone, but have reached the twelve-month owned milestone in the current period. We believe Organic Revenue Growth is an appropriate measure of operating performance because it eliminates the impact of acquisitions, which affects the comparability of results from period-to-period. Adjusted Net Income. Adjusted Net Income is a supplemental measure of our performance and is defined as Net Income (the most directly comparable GAAP measure) before amortization, non-recurring or non-operating income and expenses, including equity-based compensation, adjusted to assume a single class of stock (Class A) and assuming noncontrolling interests do not exist while excluding the impact of the sale of non-current assets. We believe Adjusted Net Income is a useful measure because it adjusts for the after-tax impact of significant one-time, non-recurring items and eliminates the impact of any transactions that do not directly affect what management considers to be our ongoing operating performance in the period. These adjustments generally eliminate the effects of certain items that may vary from company-to-company for reasons unrelated to overall operating performance. Beginning in the year ended December 31, 2025, we updated our definition of Adjusted Net Income to exclude the impact of the sale of non-current assets. The impact of this change on our Adjusted Net Income for the year ended December 31, 2025, as well as on previously reported periods, was not material. As a result, prior‑period amounts have not been recast. We believe this minor refinement to our definition provides improved alignment with how management evaluates operating performance and enhances the measure’s usefulness for investors while maintaining comparability with prior periods. We are subject to U.S. federal income taxes, in addition to state, and local taxes, with respect to our allocable share of any net taxable income of TWFG Holding Company, LLC. Adjusted Net Income pre-IPO did not reflect adjustments for income taxes since TWFG Holding Company, LLC is a limited liability company and is classified as a partnership for U.S. federal income tax purposes. Post-IPO, the calculation incorporates the impact of federal and state statutory tax rates on 100% of our adjusted pre-tax income as if the Company owned 100% of TWFG Holding Company, LLC. Adjusted Net Income Margin. Adjusted Net Income Margin is Adjusted Net Income divided by total revenues. We believe that Adjusted Net Income Margin is a useful measurement of operating profitability for the same reasons we find Adjusted Net Income useful and also because it provides a period-to-period comparison of our after-tax operating performance. Adjusted Diluted Earnings Per Share. Adjusted Diluted Earnings Per Share is Adjusted Net Income divided by diluted shares outstanding after adjusting for the effect of (i) the exchange of 100% of the outstanding Class B common stock of the Company (the “Class B Common Stock”) and Class C common stock of the Company (the “Class C Common Stock”) (together with the related limited liability units in TWFG Holding Company, LLC (the “LLC Units”)) into shares of Class A common stock of the Company (“Class A Common Stock”) and (ii) the vesting of 100% of the unvested equity awards and exchange into shares of Class A Common Stock. This measure does not deduct earnings related to the noncontrolling interests in TWFG Holding Company, LLC for the period prior to July 19, 2024, when we did not own 100% of the business. The most directly comparable GAAP financial metric is diluted earnings per share. We believe Adjusted Diluted Earnings Per Share may be useful to an investor in evaluating our operating performance and efficiency because this measure is widely used by investors to measure a company’s operating performance without regard to items excluded from the calculation of such measure, which can vary substantially from company to company depending upon acquisition activity and capital structure. This measure also eliminates the impact of expenses that do not relate to core business performance, among other factors. Adjusted EBITDA. Adjusted EBITDA is a supplemental measure of our performance and is defined as EBITDA adjusted to reflect items such as equity-based compensation, interest income, other non-operating and certain nonrecurring items, while excluding the impact of the sale of non-current assets. EBITDA is defined as net income (the most directly comparable GAAP measure) before interest, income taxes, depreciation and amortization. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it adjusts for significant one-time, non-recurring items and eliminates the ongoing accounting effects of certain capital spending and acquisitions, such as depreciation and amortization, that do not directly affect what management considers to be our ongoing operating performance in the period. These adjustments eliminate the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance. Our measure of Adjusted EBITDA is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation. Beginning in the year ended December 31, 2025, we updated our definition of Adjusted EBITDA to exclude the impact of the sale of non-current assets. The impact of this change on our Adjusted EBITDA for the year ended December 31, 2025, as well as on previously reported periods, was not material. As a result, prior‑period amounts have not been recast. We believe this minor refinement to our definition provides improved alignment with how management evaluates operating performance and enhances the measure’s usefulness for investors while maintaining comparability with prior periods. Adjusted EBITDA Margin. Adjusted EBITDA Margin is Adjusted EBITDA divided by total revenue. We believe that Adjusted EBITDA Margin is a useful measurement of operating profitability for the same reasons we find Adjusted EBITDA useful and also because it provides a period-to-period comparison of our operating performance. Adjusted Free Cash Flow. Adjusted Free Cash Flow is a supplemental measure of our performance. We define Adjusted Free Cash Flow as cash flow from operating activities (the most directly comparable GAAP measure) less cash payments for tax distributions, purchases of property, plant, and equipment and acquisition-related costs. We believe Adjusted Free Cash Flow is a useful measure of operating performance because it represents the cash flow from the business that is within our discretion to direct to activities including investments, debt repayment, and returning capital to stockholders. The reconciliation of the above non-GAAP measures to their most comparable GAAP financial measure is outlined in the reconciliation table accompanying this release. Key Performance Indicators Total Written Premium. Total Written Premium represents, for any reported period, the total amount of current premium (net of cancellations) placed with insurance carriers. We utilize Total Written Premium as a key performance indicator when planning, monitoring, and evaluating our performance. We believe Total Written Premium is a useful metric because it is the underlying driver of the majority of our revenue. ContactsInvestor Contact:Investor Relations for TWFGEmail: [email protected] PR Contact:Alex Bunch, CMO for TWFGEmail: [email protected] Condensed Consolidated Statements of Income (Unaudited)(Amounts in thousands, except share and per share data) (1)   Commission income - related party of $4,070 and $2,784 for the three months ended and $8,348 and $5,918 for the six months ended June 30, 2026 and 2025, respectively.(2)   Fee income - related party of $947 and $893 for the three months ended and $1,843 and $1,727for the six months ended June 30, 2026 and 2025, respectively.(3)   Other administrative expenses - related party of $851 and $779 for the three months ended and $1,692 and $1,549 six months ended June 30, 2026 and 2025, respectively.(4)   Contingent income - related party of $125 and $250 for the three and six months ended June 30, 2026 and none for the three and six months ended June 30, 2025, respectively. The following table presents the disaggregation of our revenues by offerings (in thousands): The following table presents the disaggregation of our commission income by offerings (in thousands): The following table presents the disaggregation of our fee income by major sources (in thousands): The following table presents the disaggregation of our commission expense by offerings (in thousands): Condensed Consolidated Balance Sheets (Unaudited)(Amounts in thousands, except share/unit data) Non-GAAP Financial Measures A reconciliation of Organic Revenue and Organic Revenue Growth Rate to Total Revenue and Total Revenue Growth Rate, the most directly comparable GAAP measures, for each of the periods indicated is as follows (in thousands): (1)   Represents revenues generated from the acquired businesses during the first 12 months following an acquisition.(2)   Other adjustments reflect immaterial prior-period and comparability items consistent with management’s non-GAAP presentation policy.(3)   Represents the period-to-period change in total revenues divided by the total revenues in the prior period.(4)   Represents Organic Revenue Growth divided by the Organic Revenue denominator. A reconciliation of Adjusted Net Income and Adjusted Net Income Margin to net income and net income margin, the most directly comparable GAAP measures, for each of the periods indicated is as follows (in thousands): (1)   Non-recurring expense for the six months ended June 30, 2026 relates to the write-off of a commission receivable resulting from a contractual dispute with a carrier, resolved through commercial concession.(2)   During the first and second quarters of 2025, a gain related to the sale of non-current assets was not excluded from Adjusted Net Income consistent with the Company’s stated definition. The presentation has been adjusted in the fourth quarter and full-year 2025 results to conform to the Company’s definition of Adjusted Net Income. This adjustment impacts only non-GAAP measures and had no effect on previously reported GAAP results. A reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to net income and net income margin, the most directly comparable GAAP measures, for each of the periods indicated is as follows (in thousands): (1)   Interest income reflects interest and other earnings on cash balances held by the Company. This income is included in Adjusted EBITDA as we view our total interest and investment income as an integral part of our business model and earnings stream until deployed.(2)   During the first and second quarters of 2025, a gain related to the sale of non-current assets was not excluded from Adjusted Net Income consistent with the Company’s stated definition. The presentation has been adjusted in the fourth quarter and full-year 2025 results to conform to the Company’s definition of Adjusted Net Income. This adjustments impacts only non-GAAP measures and had no effect on previously reported GAAP results.(3)   Non-recurring expense for the six months ended June 30, 2026 relates to the write-off of a commission receivable resulting from a contractual dispute with a carrier, resolved through commercial concession. A reconciliation of Adjusted Free Cash Flow to Cash Flow from Operating Activities, the most directly comparable GAAP measure, for each of the periods indicated is as follows (in thousands): (1)   Tax distributions to members represents the amount distributed to the members of TWFG Holding Company, LLC in respect of their income tax liability related to the net income of TWFG Holding Company, LLC allocated to its members. A reconciliation of Adjusted Diluted Earnings Per Share to diluted earnings per share, the most directly comparable GAAP measure, for each of the periods indicated is as follows: (1)   For comparability purposes, this calculation incorporates the net income that would be distributable if all shares of Class B Common Stock and Class C Common Stock, together with the related LLC Units, were exchanged for shares of Class A Common Stock. For the three and six months ended June 30, 2026, this includes $10.5 million and $18.3 million, respectively, of net income on 54,406,663 and 14,001,518 weighted-average shares of common stock outstanding-diluted, respectively. For the three and six months ended June 30, 2025, this includes $7.0 million and $12.6 million, respectively, of net income on 56,278,869 and 56,255,156 weighted-average shares of common stock outstanding-diluted, respectively. For the three and six months ended June 30, 2026, weighted average outstanding Class B Common Stock and Class C Common Stock were considered dilutive and included in the 54,406,663 weighted-average shares of common stock outstanding-diluted within diluted earnings per share calculation. See Note 13 Earnings Per Share to our Condensed Consolidated Financial Statements included elsewhere in this Quarterly Report for more information about the earnings per share. (2)   Adjustments to Net Income are described in the footnotes of the reconciliation of Adjusted Net Income to net income in “Adjusted Net Income and Adjusted Net Income Margin”, which represent the difference between net income of $17.3 million and Adjusted Net Income of $20.3 million, as well as the net income of $30.3 million and Adjusted Net Income of $36.4 million for the three and six months ended June 30, 2026, respectively. Adjusted Diluted Earnings Per Share include adjustments of $3.0 million to Adjusted Net Income on 54,406,663 weighted-average shares of common stock outstanding-diluted and $6.1 million to Adjusted Net Income on 55,293,725 weighted-average shares of common stock outstanding-diluted, for the three and six months ended June 30, 2026, respectively. (3)   Impact of TWFG MGA FL redeemable noncontrolling interest: Incorporates the net income attributable to the 49.9% interest in TWFG MGA FL, LLC held by AIH Sub, Inc. Unlike the Class B and Class C holders, AIH Sub, Inc. does not hold exchange rights into Class A Common Stock but rather holds a put option exercisable between 2030 and 2033. This component is included to present Adjusted Diluted Earnings Per Share on the same fully consolidated basis as Adjusted EBITDA, ensuring comparability between the two metrics. For the three and six months ended June 30, 2026, this component includes $4.3 million and $7.9 million of net income attributable to AIH Sub, Inc. Key Performance Indicators The following presents the disaggregation of Total Written Premium by offerings, business mix and line of business (in thousands): (1)   TWFG MGA retention includes take-out business and subsequent renewals from TWFG MGA FL, LLC, which can cause retention to exceed 100%. Excluding TWFG MGA FL, MGA retention would have been approximately 71% and consolidated retention approximately 88% for the three months ended June 30, 2026.