TWFG reports 14.3% organic growth for Q1

By Michael Loney

May 14 - (The Insurer) - Texas-based insurance broker TWFG has reported organic revenue growth of 14.3% for the first quarter of this year, while its adjusted Ebitda margin expanded to 22.6%.

TWFG reported that its adjusted net income for the quarter increased 14.3% from the prior-year period to $9.2 million. Adjusted diluted earnings per share for the quarter was $0.16.

Total revenue for the quarter increased 16.6% to $53.8 million, compared to $46.1 million in the prior-year period.

Commission income increased 14.7% to $48.8 million, compared to $42.5 million in the prior-year period

Total written premium for the quarter increased 15.5% to $371.0 million, compared to $321.3 million in the prior-year period.

Organic revenue was $49.2 million for the first quarter of 2025, compared to $41.6 million in the prior-year period.

TWFG said that its 14.3% organic revenue growth rate for the first quarter of this year was driven by “robust new business production, moderating retention levels, rate increases, and continued growth in new business activity within one of our managing general agency (MGA) programs.”

The organic revenue growth slowed sequentially from the 20.5% in Q4 2024.

TWFG for the full year 2024 had reported organic revenue growth of 14.5%. The company went public on the Nasdaq in July last year.

Adjusted Ebitda was $12.2 million for the first quarter, an increase of 35.3% year over year. The adjusted Ebitda margin expanded to 22.6%, compared to 19.5% in the first quarter of 2024.

“Our strong first quarter performance reflects the continued execution of our strategy and strength of our business model,” said TWFG chairman and CEO Gordy Bunch.

The Woodlands, Texas-based company has updated its full-year 2025 guidance to organic revenue growth rate between 12% and 16% (from 11% and 16% previously), adjusted Ebitda margin between 20% and 22% (19% and 21%) and total revenue between $240 million and $255 million ($235 million to $250 million).