TWFG (TWFG) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 24.6% to $79.9M, organic revenue grew 16.6%, and written premiums increased 18.5% to $554.2M; 9M revenue rose 34.8% to $240.3M.

• Growth was primarily volume-led amid moderating rates, with organic expansion, acquisitions, policy additions and MGA growth contributing.

Financial highlights

• Q3 commission income rose 25.9% to $73.4M, outpacing premium growth by 740 bps; 9M commission income increased 36.8% to $221.1M.

• Q3 net income was $9.0M vs. $9.6M; diluted EPS was $0.09 vs. $0.11. Adjusted net income rose 16.3% to $15.1M and adjusted diluted EPS increased to $0.28 from $0.23.

• Adjusted EBITDA increased 15.0% to $19.5M; Q3 operating income was $9.0M, essentially flat YoY.

• Q3 operating cash flow was $10.6M vs. $15.0M and adjusted free cash flow was $7.5M vs. $12.3M; 9M operating cash flow was $43.1M vs. $40.2M.

Outlook and guidance

• FY2026 guidance: revenue of $300M–$320M, organic revenue growth of 15%–17% and adjusted EBITDA margin of 24%–27%; organic growth and margin ranges were raised from 13%–17% and 23%–27%.

• Through 9M, organic growth was 21.5% and adjusted EBITDA margin was 28%, above the high end of full-year ranges; outlook reflects Q4 takeout-book normalization and softer markets.

• Long-term consolidated margins are expected in the lower end of the mid-20% range as M&A and mix shift toward commercial lines and MGA programs continue; 2027 guidance was not set.

• Q4 contingent income is expected to increase, though some smaller carriers provide limited visibility on year-end performance.