Revenue growth reached 40.6% in 2026Q1, yet operational efficiency remains constrained by a high-variable-cost structure that resulted in a thin 3.40% net margin.
| Revenue | 255M | 233.96M | 193.72M | 166.99M | 147.78M |
| Revenue Growth % | 27.03% | 20.77% | 16.01% | 13% | - |
| Medical Costs & Claims | 180.51M | 171.15M | 147.15M | 130.82M | 117.15M |
| Medical Cost Ratio % | 70.79% | 73.16% | 75.96% | 78.34% | 79.27% |
| Gross Profit | 74.49M | 62.81M | 46.57M | 36.17M | 30.63M |
| Gross Margin % | 29.21% | 26.84% | 24.04% | 21.66% | 20.73% |
| Gross Profit Growth % | - | 34.86% | 28.74% | 18.09% | - |
| Operating Expenses | 38.21M | 38.93M | 18.64M | 10.78M | 6.92M |
| OpEx / Revenue % | 14.98% | 16.64% | 9.62% | 6.46% | 4.68% |
| Depreciation & Amortization | 21.16M | 18.35M | 12.02M | 4.86M | 3.3M |
| Combined Ratio % | 85.77% | 89.8% | 85.58% | 84.79% | 83.95% |
| Operating Income | 36.29M | 23.87M | 27.93M | 25.39M | 23.72M |
| Operating Margin % | 14.23% | 10.2% | 14.42% | 15.21% | 16.05% |
| Operating Income Growth % | - | -14.51% | 9.98% | 7.06% | - |
| EBITDA | 57.45M | 42.23M | 39.95M | 30.25M | 27.02M |
| EBITDA Margin % | 22.53% | 18.05% | 20.62% | 18.12% | 18.28% |
| Interest Expense | 266K | 287K | 2.22M | 1M | 398K |
| Non-Operating Income | -15.13M | -20.86M | -4.38M | -874K | -28K |
| Pretax Income | 51.15M | 44.45M | 30.09M | 25.26M | 23.35M |
| Pretax Margin % | 20.06% | 19% | 15.53% | 15.13% | 15.8% |
| Income Tax | 3.76M | 3.28M | 1.5M | 0 | 0 |
| Effective Tax Rate % | 7.34% | 7.38% | 4.97% | 0% | 0% |
| Net Income | 8.38M | 7.96M | 2.75M | 0 | 0 |
| Net Margin % | 3.29% | 3.4% | 1.42% | 0% | 0% |
| Net Income Growth % | 105.29% | 190.09% | - | - | - |
| EPS (Diluted) | 0.15 | 0.51 | 0.18 | 0.31 | 0.03 |
| EPS Growth % | -16.25% | 183.33% | -41.94% | 850.92% | - |
| EPS (Basic) | - | 0.53 | 0.19 | 0.31 | 0.03 |
| Diluted Shares Outstanding | 56.29M | 56.29M | 14.98M | 13.16M | 631.75M |
Regional Geographic Concentration Risk
According to the latest quarterly financial data, TWFG achieved a 40.6% year-over-year revenue growth in 2026Q1, signaling that the company's dual-channel distribution model is successfully capturing market share despite the competitive pressures inherent in the independent agency space.
The acceleration in top-line growth suggests that the firm's recruitment of seasoned producers is gaining traction, effectively leveraging its platform to drive premium volume. Investors should monitor whether this growth is sustainable or if it reflects a temporary surge in policy pricing within the Texas market.
As reported in the 2026Q1 financial statements, the combined ratio improved to 83.0%, reflecting a notable reduction in underwriting costs compared to the 97.4% level observed in 2023Q4, though net margins remain thin at 3.40% due to high commission payouts.
While the downward trend in the combined ratio indicates improved operational discipline, the persistent reliance on high commission splits limits the company's ability to translate underwriting success into significant bottom-line profitability. This suggests that the firm's current cost structure is highly sensitive to any volatility in agent compensation or administrative overhead.
Based on the provided income statement data, the company's operating margin of 10.20% highlights the structural limitations of its high-variable-cost model, where agent compensation scales directly with revenue, preventing the rapid margin expansion typically seen in more automated insurance distribution platforms.
The firm appears to be prioritizing market share acquisition over immediate margin optimization, which may be a strategic necessity given the competitive landscape. Analysts should investigate whether future scale will allow for a reduction in these variable costs or if the current payout structure is a permanent feature of the business.
Data suggests that TWFG's heavy reliance on the Texas market, as inferred from its corporate headquarters, may expose the firm to localized catastrophe risks that are not fully captured in the current, relatively stable combined ratio of 83.0% reported in 2026Q1.
Investors should consider that the current profitability may be bolstered by favorable regional pricing trends that could reverse if carrier appetite for Texas risk diminishes. The lack of geographic diversification warrants further investigation into the potential for earnings volatility during severe weather events.
Quick answers to the most common questions about buying TWFG stock.
For fiscal year 2025, TWFG, Inc. Common Stock (TWFG) reported total revenue of $234.0M. This represents a 58.3% increase compared to $147.8M in 2022.
TWFG, Inc. Common Stock (TWFG) is profitable, generating $8.0M in net income for the fiscal year ending 2025 with a net profit margin of 3.4%.
TWFG, Inc. Common Stock (TWFG) reported an operating income of $23.9M, resulting in an operating profit margin of 10.2%. This margin reflects the operational efficiency of the business before interest and taxes.
TWFG, Inc. Common Stock (TWFG) generated $62.8M in gross profit for the year, representing a gross profit margin of 26.8%. This demonstrates the company's core pricing power and production efficiency.