TWFG (TWFG) Q4 2024 earnings summary

Executive summary

• Achieved transformational growth in 2024, highlighted by a successful IPO raising $192.9 million in net proceeds and significant expansion into 15 new states, adding over 100 new branches for a total of 520 across 34 states.

• Total written premium for 2024 reached $1.5 billion, up 18.3% year-over-year, with organic revenue growth of 14.5% and total revenue up 18.4% to $203.8 million.

• Q4 2024 total revenues rose 30.8% year-over-year to $51.7 million, with organic revenue growth of 20.5%.

• Adjusted EBITDA for Q4 was $13.8 million, up 91.7% year-over-year, and full-year adjusted EBITDA grew 44.7% to $45.3 million.

• Focused on technology investment, M&A, and expanding national footprint, with a disciplined approach to capital allocation and maintaining prudent leverage.

Financial highlights

• Q4 commission income rose 20.7% to $43.7 million; contingent income surged 371% to $5 million.

• Q4 net income was $8.2 million, up 56.3% year-over-year; full-year net income reached $28.6 million.

• Q4 net income margin was 15.8%; adjusted net income margin was 20.3%.

• Cash flow from operating activities for Q4 was $11.6 million; full year $40.5 million.

• Cash and equivalents at year-end were $195.8 million, with a $50 million unused credit facility.

Outlook and guidance

• 2025 revenue guidance: $235–$250 million, with organic revenue growth of 11–16%.

• Adjusted EBITDA margin expected in the 19–21% range, reflecting normalization of public company costs and continued investment in growth.

• M&A pipeline robust, with $3 million revenue and $700,000 EBITDA acquired at start of 2025, and $20 million revenue/$5 million EBITDA targeted for mid-year acquisitions.

• Guidance does not fully annualize all expected M&A, leaving potential upside.

• Early 2025 acquisitions in Ohio and Texas align with M&A goals.