TWFG (TWFG) Q4 2025 earnings summary

Executive summary

• Total revenue for 2025 rose 21.3% to $247.1 million, driven by 11.6% organic growth and accretive acquisitions.

• Adjusted EBITDA for 2025 increased 44.3% to $65.4 million, with margin expanding to 26.5%.

• Q4 2025 revenues grew 33% to $68.8 million, with adjusted EBITDA up 56.9% to $21.7 million and margin expanding to 31.6%.

• Expansion included new corporate locations in Tennessee and Texas, enhancing regional scale and distribution.

• AI investments and proprietary technology platforms are positioned as key productivity accelerators and competitive advantages.

Financial highlights

• Total written premium for 2025 was $1.73 billion, up from $1.48 billion in 2024.

• Q4 written premium increased 22.7% to $443.4 million, with MGA premium volume up 53.2% year-over-year.

• Net income for 2025 was $39.8 million, up from $28.6 million in 2024; Q4 net income was $14.4 million, up from $8.2 million in Q4 2024.

• Q4 commission income increased 35.8% to $59.4 million; full-year commission income up 20.6% to $221.0 million.

• Free cash flow generation remained strong, with operating cash flow at $53.5 million and adjusted free cash flow at $42.1 million.

Outlook and guidance

• 2026 revenue guidance: $285–$300 million, representing 15–20% growth.

• Adjusted EBITDA margin expected at 22–25%; organic revenue growth projected at 10–15%.

• Continued investments in AI, technology, and infrastructure to support double-digit organic growth and margin expansion.

• Share repurchase program of up to $50 million announced, reflecting confidence in valuation and future prospects.