TWFG, Inc. Reports $6.9 Million Net Income and $53.8 Million Revenue in Q1 2025

TWFG, Inc. reported a net income of $6.9 million for the first quarter of 2025, reflecting a 3.4% increase from $6.6 million in the same period of 2024. The company's total revenues rose to $53.8 million, a 16.6% increase compared to $46.1 million in the prior year. This growth was primarily driven by a $6.2 million increase in commission income, which reached $48.8 million, attributed to higher premium rates and continued business expansion. Additionally, fee income and contingent income also saw increases of 34.9% and 54.6%, respectively, contributing to the overall revenue growth.

In terms of operational changes, TWFG, Inc. made significant strides in its acquisition strategy. The company completed the acquisition of Mike Powell Insurance and United States Insurance Group, LLC for a total of $10.6 million in January 2025, which is expected to enhance its market presence. The company also reported an increase in intangible assets, which rose to $80.9 million from $73.0 million at the end of 2024, reflecting the impact of these acquisitions. The total assets of the company increased to $330.5 million, up from $323.4 million at the end of the previous fiscal year.

TWFG's operational metrics indicate a solid performance, with total written premiums increasing by 15.5% to $371.0 million compared to $321.3 million in the prior year. The company reported a retention rate of 88%, down from 94% in the previous year, which reflects a shift in market conditions as carriers moderate rate increases. The employee headcount also grew, contributing to a 31.1% increase in salaries and employee benefits, which totaled $8.2 million for the quarter.

The company’s cash flow from operating activities improved significantly, providing $15.6 million compared to $9.8 million in the same quarter of 2024. This increase was attributed to better collections on contingent income and a favorable change in working capital. TWFG, Inc. ended the quarter with $208.3 million in cash and cash equivalents, a slight increase from $195.8 million at the end of 2024, indicating a strong liquidity position.

Looking ahead, TWFG, Inc. remains optimistic about its growth trajectory, supported by its strategic acquisitions and a robust operational framework. The company anticipates continued revenue growth driven by its expanding market share and the successful integration of newly acquired entities. Management has expressed confidence in maintaining financial stability and operational efficiency, positioning the company well for future opportunities in the insurance distribution sector.