TWFG Announces Third Quarter 2025 Results

– Total Revenues increased 21.3% for the quarter over the prior year period to $64.1 million –– Total Written Premium increased 16.9% for the quarter over the prior year period to $467.7 million –– Organic Revenue Growth Rate* of 10.2% for the quarter –– Net income of $9.6 million for the quarter –– Adjusted EBITDA* increased 44.7% for the quarter over the prior year period to $17.0 million – THE WOODLANDS, Texas, Nov. 12, 2025 (GLOBE NEWSWIRE) -- TWFG, Inc. (“TWFG”, the “Company” or “we”) (NASDAQ: TWFG), a high-growth insurance distribution company, today announced results for the third quarter ended September 30, 2025. Third Quarter 2025 Highlights Total revenues for the quarter increased 21.3% to $64.1 million, compared to $52.9 million in the prior year periodCommission income for the quarter increased 20.8% to $58.3 million, compared to $48.2 million in the prior year periodNet income for the quarter was $9.6 million, compared to $6.9 million in the prior year period, and net income margin for the quarter was 15.0%Diluted Earnings Per Share for the quarter was $0.11 and Adjusted Diluted Earnings Per Share* for the quarter was $0.23Total Written Premium for the quarter increased 16.9% to $467.7 million, compared to $400.1 million in prior year periodOrganic Revenue Growth Rate* for the quarter was 10.2%Adjusted Net Income* for the quarter increased 55.3% from the prior year period to $13.0 million, and Adjusted Net Income Margin* for the quarter was 20.2%Adjusted EBITDA* for the quarter increased 44.7% over the prior year period to $17.0 million, and Adjusted EBITDA Margin* for the quarter was 26.5% compared to 22.2% in the prior-year period *Organic Revenue Growth Rate, Adjusted Net Income, Adjusted Net Income Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow and Adjusted Diluted Earnings Per Share are non-GAAP measures. Reconciliations of Organic Revenue Growth Rate to total revenue growth rate, Adjusted Net Income and Adjusted EBITDA to net income, Adjusted Diluted Earnings Per Share to diluted earnings per share, and Adjusted Free Cash Flow to cash flow from operating activities, the most directly comparable financial measures presented in accordance with GAAP, are outlined in the reconciliation table accompanying this release. “Our third quarter results demonstrate continued momentum across both our agency and MGA platforms,” said Gordy Bunch, Founder, Chairman and CEO. “We delivered 21.3% total revenue growth, 10.2% organic growth and 430-basis-points improvement in Adjusted EBITDA margin to 26.5%, highlighting the scalability of our model and disciplined cost management. As the personal and commercial lines markets normalize, we’re experiencing improved retention, expanding carrier capacity, and stronger client demand — all of which position TWFG for sustained, profitable growth.” “Our third quarter recruiting and M&A activities added eight new retail locations, one new corporate location and 370 independent agents to our MGA platform. After the third quarter TWFG acquired Alabama Insurance Agency adding twenty three additional retail locations and Alabama as our newest state expansion. These results provide excellent tailwinds heading into the fourth quarter.” Third Quarter 2025 Results During the quarter, industry conditions improved meaningfully as carriers re-entered key property markets and we experienced stabilized pricing trends. TWFG’s diversified distribution platform — combining independent agency operations, proprietary MGA programs, and technology-enabled service tools — continues to perform well in this environment. Our strategy remains focused on enhancing producer productivity, deepening carrier relationships, and expanding capabilities to deliver long-term value. For the third quarter, Total Written Premiums were $467.7 million, an increase of 16.9% compared to $400.1 million in the same period in the prior year. Growth was driven by corporate branch acquisitions and continued expansion across both the Agency-in-a-Box and TWFG MGA platforms, with MGA premium volume up 19.2% compared to the same period in the prior year, reflecting strength of our property programs, improved retention, new business growth, and expansion into new states through enhanced carrier partnerships. Total revenues increased 21.3% to $64.1 million, compared to $52.9 million in the same period in the prior year, supported by double-digit organic growth, higher contingent income, and growth in policy and license fees. For the nine months ended September 30, 2025, total revenues were $178.3 million, up 17.3% from $152.0 million compared to the same period in the prior year. Organic Revenues, which exclude contingent, non-policy fee, and other income, were $54.2 million for the quarter, up $5.0 million from $49.2 million compared to the same period in the prior year. The Organic Revenue Growth Rate of 10.2% was driven by new business production, normalized retention levels, and modest rate improvement across personal and commercial lines. For the first nine months of 2025, Organic Revenues rose $16.4 million to $157.5 million, representing an 11.6% Organic Revenue Growth Rate. Organic growth benefited from normalizing retention levels as rate volatility moderated, supporting new business growth and cross-sell activity. Commission expense for the quarter increased 12.6% to $34.6 million, reflecting continued expansion in production. Salaries and employee benefits were $9.9 million, up 19.2% compared to $8.3 million in the same period in the prior year, primarily due to incremental headcount and expenses associated with 2025 corporate branch acquisitions and overall business growth. Other administrative expenses rose 7.9% to $5.2 million, primarily from public company operating costs and continued investments to support long-term growth initiatives. Net income for the quarter was $9.6 million, compared to $6.9 million in the same period in the prior year resulting in a net income margin of 15.0%, up from 13.0% last year. Adjusted Net Income increased 55.3% to $13.0 million, with an Adjusted Net Income Margin of 20.2% compared to 15.8% in the same period in the prior year. Adjusted EBITDA grew 44.7% to $17.0 million, reflecting operating leverage, expense discipline, and increased contribution from higher-margin MGA operations. The Adjusted EBITDA Margin expanded 430-basis-points year-over-year to 26.5%, compared to 22.2% in the third quarter of 2024. Cash flow from operating activities was $15.0 million, compared to $11.7 million in the same period prior year. Adjusted Free Cash Flow was $12.3 million, modestly higher than $11.5 million in the same period prior year, primarily reflecting increased tax distributions to pre-IPO members. Liquidity and Capital Resources As of September 30, 2025, the Company had unrestricted cash and cash equivalents of $151.0 million. We had full unused capacity on our revolving credit facility of $50.0 million as of September 30, 2025. The total outstanding term notes payable balance was $4.5 million as of September 30, 2025. 2025 Updated Outlook Based on year-to-date performance and current market conditions, TWFG expects to close the year with strong momentum. As the personal lines markets continue to soften and carrier availability expands, the Company anticipates double digit organic growth with accretive M&A activity throughout 2026. TWFG’s balanced capital allocation and disciplined execution support our confidence in achieving our tightened full year 2025 guidance. Based on the year-to-date results for 2025 and current market conditions, the Company has updated its full year 2025 guidance as follows. Total Revenues: Expected to be between $240 million and $245 millionOrganic Revenue Growth Rate*: Expected to be in the range of 11% to 13%Adjusted EBITDA Margin*: Expected to be in the range of 24% to 25% The Company is unable to provide a reconciliation to the most directly comparable GAAP measures without unreasonable efforts due to the inherent difficulty in forecasting the timing of items that have not yet occurred, as well as quantifying certain amounts that are necessary for such reconciliation. We believe it is immaterial. *For a definition of Organic Revenue Growth Rate and Adjusted EBITDA Margin, see “Non-GAAP Financial Measures” below. Conference Call Information TWFG will host a conference call and webcast tomorrow at 10:00 AM ET to discuss these results. To access the call by phone, participants should REGISTER AT THIS LINK, where they will be provided with the dial in details. A live webcast of the conference call will also be available on TWFG’s investor relations website at investors.twfg.com. A webcast replay of the call will be available at investors.twfg.com for one year following the call. About TWFG TWFG (NASDAQ: TWFG) is a high-growth, independent distribution platform for personal and commercial insurance in the United States and represents hundreds of insurance carriers that underwrite personal lines and commercial lines risks. For more information, please visit twfg.com. Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical fact included in this release, are forward-looking statements. Forward-looking statements give our current expectations relating to our financial condition, results of operations, plans, objectives, future performance, and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “outlook,” “predicts,” “potential” or “continue,” the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including those factors discussed under the captions entitled “Risk factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K, any Quarterly Reports on Form 10-Q and the other documents that the Company files with the U.S. Securities and Exchange Commission. You should specifically consider the numerous risks outlined under “Risk factors” in the Annual Report on Form 10-K for the year ended December 31, 2024. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. Non-GAAP Financial Measures and Key Performance Indicators Non-GAAP Financial Measures Organic Revenue, Organic Revenue Growth, Adjusted Net Income, Adjusted Net Income Margin, Adjusted Diluted Earnings Per Share, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Free Cash Flow included in this release are not measures of financial performance in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and should not be considered substitutes for GAAP measures, including revenues (for Organic Revenue and Organic Revenue Growth), net income (for Adjusted Net Income, Adjusted Net Income Margin, Adjusted EBITDA and Adjusted EBITDA Margin), diluted earnings per share (Adjusted Diluted Earnings Per Share), and cash flow from operating activities (for Adjusted Free Cash Flow), which we consider to be the most directly comparable GAAP measures. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, you should not consider these non-GAAP financial measures in isolation or as substitutes for revenues, net income, operating cash flow or other consolidated financial statement data prepared in accordance with GAAP. Other companies may calculate any or all of these non-GAAP financial measures differently than we do, limiting their usefulness as comparative measures. Organic Revenue. Since the first quarter of 2025, we have utilized the revised calculation methodology for Organic Revenue to include policy fee income as it is directly correlated to MGA commission income. Our legacy calculation methodology removed policy fee income from Organic Revenue. Organic Revenue is total revenue (the most directly comparable GAAP measure) for the relevant period, excluding contingent income, non-policy fee income, other income and those revenues generated from acquired businesses with over $0.5 million in annualized revenue that have not reached the twelve-month owned mark. Organic Revenue Growth. Organic Revenue Growth is the change in Organic Revenue period-to-period, with prior period results adjusted to include revenues that were excluded in the prior period because the relevant acquired businesses had not reached the twelve-month-owned milestone but have reached the twelve-month owned milestone in the current period. We believe Organic Revenue Growth is an appropriate measure of operating performance because it eliminates the impact of acquisitions, which affects the comparability of results from period to period. Adjusted Net Income. Adjusted Net Income is a supplemental measure of our performance and is defined as net income (the most directly comparable GAAP measure) before amortization, non-recurring or non-operating income and expenses, including equity-based compensation, adjusted to assume a single class of stock (Class A) and assuming noncontrolling interests do not exist. We believe Adjusted Net Income is a useful measure because it adjusts for the after-tax impact of significant one-time, non-recurring items and eliminates the impact of any transactions that do not directly affect what management considers to be our ongoing operating performance in the period. These adjustments generally eliminate the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance. We are subject to U.S. federal income taxes, in addition to state, and local taxes, with respect to our allocable share of any net taxable income of TWFG Holding Company, LLC. Adjusted Net Income pre-IPO did not reflect adjustments for income taxes since TWFG Holding Company, LLC is a limited liability company and is classified as a partnership for U.S. federal income tax purposes. Post-IPO, the calculation incorporates the impact of federal and state statutory tax rates on 100% of our adjusted pre-tax income as if the Company owned 100% of TWFG Holding Company, LLC. Adjusted Net Income Margin. Adjusted Net Income Margin is Adjusted Net Income divided by total revenues. We believe that Adjusted Net Income Margin is a useful measurement of operating profitability for the same reasons we find Adjusted Net Income useful and also because it provides a period-to-period comparison of our after-tax operating performance. Adjusted Diluted Earnings Per Share. Adjusted Diluted Earnings Per Share is Adjusted Net Income divided by diluted shares outstanding after adjusting for the effect of (i) the exchange of 100% of the outstanding Class B common stock of the Company (the “Class B Common Stock”) and Class C common stock of the Company (the “Class C Common Stock”) (together with the related limited liability units in TWFG Holding Company, LLC (the “LLC Units”)) into shares of Class A common stock of the Company (“Class A Common Stock”) and (ii) the vesting of 100% of the unvested equity awards and exchange into shares of Class A Common Stock. This measure does not deduct earnings related to the noncontrolling interests in TWFG Holding Company, LLC for the period prior to July 19, 2024, when we did not own 100% of the business. The most directly comparable GAAP financial metric is diluted earnings per share. We believe Adjusted Diluted Earnings Per Share may be useful to an investor in evaluating our operating performance and efficiency because this measure is widely used by investors to measure a company’s operating performance without regard to items excluded from the calculation of such measure, which can vary substantially from company to company depending upon acquisition activity and capital structure. This measure also eliminates the impact of expenses that do not relate to core business performance, among other factors. Adjusted EBITDA. Adjusted EBITDA is a supplemental measure of our performance and is defined as EBITDA adjusted to reflect items such as equity-based compensation, interest income, other non-operating and certain nonrecurring items. EBITDA is defined as net income (the most directly comparable GAAP measure) before interest, income taxes, depreciation, and amortization. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it adjusts for significant one-time, non-recurring items and eliminates the ongoing accounting effects of certain capital spending and acquisitions, such as depreciation and amortization, that do not directly affect what management considers to be our ongoing operating performance in the period. These adjustments eliminate the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance. Our measure of Adjusted EBITDA is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation. Adjusted EBITDA Margin. Adjusted EBITDA Margin is Adjusted EBITDA divided by total revenue. We believe that Adjusted EBITDA Margin is a useful measurement of operating profitability for the same reasons we find Adjusted EBITDA useful and also because it provides a period-to-period comparison of our operating performance. Adjusted Free Cash Flow. Adjusted Free Cash Flow is a supplemental measure of our performance. We define Adjusted Free Cash Flow as cash flow from operating activities (the most directly comparable GAAP measure) less cash payments for tax distributions, purchases of property and equipment and acquisition-related costs. We believe Adjusted Free Cash Flow is a useful measure of operating performance because it represents the cash flow from the business that is within our discretion to direct to activities including investments, debt repayment, and returning capital to stockholders. The reconciliation of the above non-GAAP measures to their most comparable GAAP financial measure is outlined in the reconciliation table accompanying this release. Key Performance Indicators Total Written Premium. Total Written Premium represents, for any reported period, the total amount of current premium (net of cancellation) placed with insurance carriers. We utilize Total Written Premium as a key performance indicator when planning, monitoring, and evaluating our performance. We believe Total Written Premium is a useful metric because it is the underlying driver of the majority of our revenue. ContactsInvestor Contact:Gene Padgett, CAO for TWFGEmail: gene.padgett@twfg.com PR Contact:Alex Bunch, CMO for TWFGEmail: alex@twfg.com Condensed Consolidated Statements of Income (Unaudited)(Amounts in thousands, except share and per share data) Three Months EndedSeptember 30, Nine Months EndedSeptember 30, 2025 2024 2025 2024Revenues Commission income(1)$58,270 $48,240 $161,617 $139,447 Contingent income 2,095 1,383 5,791 3,717 Fee income(2) 3,466 2,890 9,806 7,811 Other income 292 350 1,040 1,042 Total revenues 64,123 52,863 178,254 152,017 Expenses Commission expense 34,639 30,766 100,604 89,171 Salaries and employee benefits 9,929 8,331 27,618 21,401 Other administrative expenses(3) 5,194 4,813 15,318 11,687 Depreciation and amortization 5,327 2,985 12,587 8,966 Total operating expenses 55,089 46,895 156,127 131,225 Operating income 9,034 5,968 22,127 20,792 Interest expense 70 411 221 2,125 Interest income 1,574 1,777 5,188 2,202 Other non-operating income (expense), net 59 (4) 632 8 Income before tax 10,597 7,330 27,726 20,877 Income tax expense 977 437 2,253 437 Net income 9,620 6,893 25,473 20,440 Less: net income attributable to noncontrolling interests 7,898 5,739 20,456 19,286 Net income attributable to TWFG, Inc.$1,722 $1,154 $5,017 $1,154 Weighted average shares of common stock outstanding: Basic 15,005,426 14,722,685 14,933,242 14,722,685 Diluted 15,100,655 14,890,382 15,088,031 14,890,382 Earnings per share: Basic$0.11 $0.08 $0.34 $0.08 Diluted$0.11 $0.08 $0.34 $0.08 (1) Commission income - related party of $3,939 and $3,026 for the three months ended and $9,858 and $6,047 for the nine months ended September 30, 2025 and 2024, respectively(2) Fee income - related party of $869 and $884 for the three months ended and $2,596 and $1,799 for the nine months ended September 30, 2025 and 2024, respectively(3) Other administrative expenses - related party of $785 and $339 for the three months ended and $2,333 and $1,122 for the nine months ended September 30, 2025 and 2024, respectively The following table presents the disaggregation of our revenues by offerings (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024Insurance Services Agency-in-a-Box$37,583 $33,826 $112,895 $99,976 Corporate Branches 12,188 9,248 31,804 25,875 Total Insurance Services 49,771 43,074 144,699 125,851 TWFG MGA 13,944 9,432 32,372 25,057 Other 408 357 1,183 1,109 Total revenues$64,123 $52,863 $178,254 $152,017 The following table presents the disaggregation of our commission income by offerings (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024Insurance Services Agency-in-a-Box$34,703 $31,542 $104,337 $93,702 Corporate Branches 12,018 9,301 31,526 25,962 Total Insurance Services 46,721 40,843 135,863 119,664 TWFG MGA 11,549 7,397 25,754 19,783 Total commission income$58,270 $48,240 $161,617 $139,447 The following table presents the disaggregation of our fee income by major sources (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024Policy fees$1,175 $1,064 $3,309 $2,510 Branch fees 1,289 1,172 3,961 3,523 License fees 886 495 2,053 1,454 TPA fees 116 159 483 324 Total fee income$3,466 $2,890 $9,806 $7,811 The following table presents the disaggregation of our commission expense by offerings (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024Insurance Services Agency-in-a-Box$27,627 $25,092 $81,594 $72,649 Corporate Branches 1,481 1,304 4,155 3,422 Total Insurance Services 29,108 26,396 85,749 76,071 TWFG MGA 5,504 4,346 14,774 13,039 Other 27 24 81 61 Total commission expense$34,639 $30,766 $100,604 $89,171 Condensed Consolidated Balance Sheets (Unaudited)(Amounts in thousands, except share/unit data) September 30, 2025 December 31, 2024Assets Current assets Cash and cash equivalents$150,985 $195,772 Restricted cash 11,557 9,551 Commissions receivable, net 27,529 27,067 Accounts receivable 8,169 7,839 Other current assets, net 13,087 1,619 Total current assets 211,327 241,848 Non-current assets Intangible assets, net 129,386 72,978 Property and equipment, net 3,209 3,499 Lease right-of-use assets, net 4,515 4,493 Other non-current assets 734 610 Total assets$349,171 $323,428 Liabilities, Redeemable Noncontrolling Interest and Equity Current liabilities Commissions payable$15,897 $13,848 Carrier liabilities 14,074 12,392 Operating lease liabilities, current 1,393 1,013 Short-term bank debt 1,956 1,912 Deferred acquisition payable, current 2,508 601 Other current liabilities 9,309 9,851 Total current liabilities 45,137 39,617 Non-current liabilities Operating lease liabilities, net of current portion 3,135 3,372 Long-term bank debt 2,534 4,007 Deferred acquisition payable, non-current 2,620 1,122 Other non-current liabilities — 24 Total liabilities 53,426 48,142 Commitments and contingencies (Note 13) Redeemable noncontrolling interest 11,427 — Stockholders' Equity Class A common stock ($0.01 par value per share - 300,000,000 authorized 15,005,426 and 14,811,874 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively) 150 148 Class B common stock ($0.00001 par value per share - 100,000,000 authorized 7,277,651 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively) — — Class C common stock ($0.00001 par value per share - 100,000,000 authorized 33,893,810 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively) — — Additional paid-in capital 58,869 58,365 Retained earnings 20,305 15,288 Accumulated other comprehensive income 40 83 Total stockholders' equity attributable to TWFG, Inc. 79,364 73,884 Noncontrolling interests 204,954 201,402 Total stockholders' equity 284,318 275,286 Total liabilities, redeemable noncontrolling interest and equity$349,171 $323,428 Non-GAAP Financial Measures A reconciliation of Organic Revenue and Organic Revenue Growth Rate to Total Revenue and Total Revenue Growth Rate, the most directly comparable GAAP measures, for each of the periods indicated is as follows (in thousands): Revised Calculation Methodology Applied to Current Period Three Months EndedSeptember 30, Nine Months EndedSeptember 30, 2025 2024 2025 2024Total revenues$64,123 $52,863 $178,254 $152,017 Acquisition adjustments(1) (5,286) (898) (7,419) (3,582)Contingent income (2,095) (1,383) (5,791) (3,717)Fee income (3,466) (2,890) (9,806) (7,811)Other income (292) (350) (1,040) (1,042)Policy fee income 1,175 1,064 3,309 2,510 Organic Revenue$54,159 $48,406 $157,507 $138,375 Prior year Organic Revenue reported$47,342 $42,840 $135,865 $119,803 Commission income at 12-month post acquisition(s) 898 1,153 3,583 1,856 Prior year policy fees 1,064 580 2,510 1,656 Other adjustment(s)(3) (136) — (807) — Organic Revenue denominator$49,168 $44,573 $141,151 $123,315 Organic Revenue$54,159 $48,406 $157,507 $138,375 Organic Revenue denominator 49,168 44,573 141,151 123,315 Organic Revenue Growth$4,991 $3,833 $16,356 $15,060 Total Revenue Growth Rate(2) 21.3% 11.5% 17.3% 14.7%Organic Revenue Growth Rate 10.2% 8.6% 11.6% 12.2% (1) Represents revenues generated from the acquired businesses during the first 12 months following an acquisition.(2) Represents the period-to-period change in total revenues divided by the total revenues in the prior period(3) Other adjustments reflect immaterial prior-period and comparability items consistent with management’s non-GAAP presentation policy. Legacy Calculation Methodology Applied to Current Period Three Months EndedSeptember 30, Nine Months EndedSeptember 30, 2025 2024 2025 2024Total revenues$64,123 $52,863 $178,254 $152,017 Acquisition adjustments(1) (5,286) (898) (7,419) (3,582)Contingent income (2,095) (1,383) (5,791) (3,717)Fee income (3,466) (2,890) (9,806) (7,811)Other income (292) (350) (1,040) (1,042)Organic Revenue$52,984 $47,342 $154,198 $135,865 Prior year Organic Revenue reported$47,342 $42,840 $135,865 $119,803 Commission income at 12-month post acquisition(s) 898 1,153 3,583 1,856 Other adjustment(s)(3) (136) — (807) — Organic Revenue denominator$48,104 $43,993 $138,641 $121,659 Organic Revenue$52,984 $47,342 $154,198 $135,865 Organic Revenue denominator 48,104 43,993 138,641 121,659 Organic Revenue Growth$4,880 $3,349 $15,557 $14,206 Total Revenue Growth Rate(2) 21.3% 11.5% 17.3% 14.7%Organic Revenue Growth Rate 10.1% 7.6% 11.2% 11.7% (1) Represents revenues generated from the acquired businesses during the first 12 months following an acquisition.(2) Represents the period-to-period change in total revenues divided by the total revenues in the prior period(3) Other adjustments reflect immaterial prior-period and comparability items consistent with management’s non-GAAP presentation policy. A reconciliation of Adjusted Net Income and Adjusted Net Income Margin to Net Income and Net Income Margin, the most directly comparable GAAP measures, for each of the periods indicated is as follows (in thousands): Revised Calculation Methodology Applied to Current Period Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024Total revenues$64,123 $52,863 $178,254 $152,017 Net Income$9,620 $6,893 $25,473 $20,440 Income tax expense 977 — 2,253 — Acquisition-related expenses 3 — 55 — Equity-based compensation 987 1,012 3,706 1,012 Other non-recurring items(1) — — 10 (1,477)Amortization expense 5,205 2,920 12,176 8,771 Adjusted income before income taxes 16,792 10,825 43,673 28,746 Adjusted income tax expense(2) (3,833) (2,482) (9,968) (6,591)Adjusted Net Income$12,959 $8,343 $33,705 $22,155 Net Income Margin 15.0% 13.0% 14.3% 13.3%Adjusted Net Income Margin 20.2% 15.8% 18.9% 14.6% Legacy Calculation Methodology Applied to Current Period Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024Total revenues$64,123 $52,863 $178,254 $152,017 Net income$9,620 $6,893 $25,473 $20,440 Income tax expense 977 — 2,253 — Acquisition-related expenses 3 — 55 — Equity-based compensation 987 1,012 3,706 1,012 Other non-recurring items(1) — — 10 (1,477)Adjusted income before income taxes 11,587 7,905 31,497 19,975 Adjusted income tax expense(2) (2,645) (1,813) (7,189) (4,580)Adjusted Net Income$8,942 $6,092 $24,308 $15,395 Net Income Margin 15.0% 12.6% 14.3% 13.3%Adjusted Net Income Margin 13.9% 11.2% 13.6% 10.0% (1) Represents a one-time adjustment reducing commission expense, which resulted from the branch conversions. In January 2024, nine of our Branches converted to Corporate Branches. Upon conversion, agents of the newly converted Corporate Branches became employees and received salaries, employee benefits, and bonuses for services rendered instead of commissions. As a result, we released a portion of the unpaid commissions related to the converted branches that we no longer are required to settle.(2) Post-IPO, we are subject to United States federal income taxes, in addition to state, local, and foreign taxes, with respect to our allocable share of any net taxable income of TWFG Holding Company, LLC. For the three and nine months ended September 30, 2025, the calculation of adjusted income tax expense is based on a federal statutory rate of 21% and a blended state income tax rate of 1.82% on 100% of our adjusted income before income taxes as if we owned 100% of the TWFG Holding Company, LLC. A reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to Net income and Net income margin, the most directly comparable GAAP measures, for each of the periods indicated is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024Total revenues$64,123 $52,863 $178,254 $152,017 Net Income$9,620 $6,893 $25,473 $20,440 Interest expense 70 411 221 2,125 Interest income (1,574) (1,777) (5,188) (2,202)Depreciation and amortization 5,327 2,985 12,587 8,966 Income tax expense 977 437 2,253 437 EBITDA 14,420 8,949 35,346 29,766 Acquisition-related expenses 3 — 55 — Equity-based compensation 987 1,012 3,706 1,012 Interest income 1,574 1,777 5,188 2,202 Other non-recurring items(1) — — 10 (1,477)Adjusted EBITDA$16,984 $11,738 $44,305 $31,503 Net Income Margin 15.0% 13.0% 14.3% 13.4%Adjusted EBITDA Margin 26.5% 22.2% 24.9% 20.7% (1) Represents a one-time adjustment reducing commission expense, which resulted from the branch conversions. In January 2024, nine of our Branches converted to Corporate Branches. Upon conversion, agents of the newly converted Corporate Branches became employees and received salaries, employee benefits, and bonuses for services rendered instead of commissions. As a result, we released a portion of the unpaid commissions related to the converted branches that we no longer are required to settle. A reconciliation of Adjusted Free Cash Flow to Cash Flow from Operating Activities, the most directly comparable GAAP measure, for each of the periods indicated is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024Cash Flow from Operating Activities$14,953 $11,725 $40,213 $28,879 Purchase of property and equipment (69) (233) (128) (280)Tax distribution to members(1) (2,586) — (11,338) (6,104)Acquisition-related expenses 3 — 55 — Adjusted Free Cash Flow$12,301 $11,492 $28,802 $22,495 (1) Tax distributions to members represents the amount distributed to the members of TWFG Holding Company, LLC in respect of their income tax liability related to the Net Income of TWFG Holding Company, LLC allocated to its members. A reconciliation of Adjusted Diluted Earnings Per Share to diluted earnings per share, the most directly comparable GAAP measure, for each of the periods indicated is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024Earnings per share of common stock – diluted$0.11 $0.08 $0.34 $0.08 Plus: Impact of all LLC Units exchanged for Class A Common Stock(1) 0.06 0.04 0.12 0.29 Plus: Adjustments to Adjusted Net Income(2) 0.06 0.03 0.14 0.03 Adjusted Diluted Earnings Per Share$0.23 $0.15 $0.60 $0.40 Weighted average common stock outstanding – diluted 15,100,655 14,890,382 15,088,031 14,890,382 Plus: Impact of all LLC Units exchanged for Class A Common Stock(1) 41,171,461 41,171,461 41,171,461 41,171,461 Adjusted Diluted Earnings Per Share diluted share count 56,272,116 56,061,843 56,259,492 56,061,843 (1) For comparability purposes, this calculation incorporates the Net Income that would be distributable if all shares of Class B Common Stock and Class C Common Stock, together with the related LLC Units, were exchanged for shares of Class A Common Stock. For the three and nine months ended September 30, 2025, this includes $7.9 million of Net Income on 56,272,116 weighted-average shares of common stock outstanding - diluted and $20.5 million of Net Income on 56,259,492 weighted-average shares of common stock outstanding - diluted, respectively. For the three and nine months ended September 30, 2024, 41,171,461 weighted average outstanding Class B Common Stock and Class C Common Stock were considered dilutive and included in the 56,061,843 and 56,061,843 weighted-average shares of common stock outstanding - diluted within diluted earnings per share calculation, respectively. Refer to Note 12 Earnings Per Share to our Condensed Consolidated Financial Statements included in the Quarterly Report for more information about the earnings per share.(2) Adjustments to Adjusted Net Income are described in the footnotes of the reconciliation of Adjusted Net Income to Net Income in “Adjusted Net Income and Adjusted Net Income Margin”, which represent the difference between Net Income of $9.6 million and Adjusted Net Income of $13.0 million and Net Income of $25.5 million and Adjusted Net Income of $33.7 million for the three and nine months ended September 30, 2025, respectively. For the three and nine months ended September 30, 2025, Adjusted Diluted Earnings Per Share include adjustments of $3.3 million to Adjusted Net Income on 56,272,116 weighted-average shares of common stock outstanding - diluted and $8.2 million to Adjusted Net Income on 56,259,492 weighted-average shares of common stock outstanding - diluted for the period presented, respectively. Key Performance Indicators The following presents the disaggregation of Total Written Premium by offerings, business mix and line of business (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Amount % of Total Amount % of Total Amount % of Total Amount % of TotalOfferings: Insurance Services Agency-in-a-Box$296,524 63% $261,560 65% $839,845 65% $736,699 66%Corporate Branches 98,634 21 77,636 20 262,284 20 213,689 19 Total Insurance Services 395,158 84 339,196 85 1,102,129 85 950,388 85 TWFG MGA 72,583 16 60,903 15 186,862 15 164,612 15 Total written premium$467,741 100% $400,099 100% $1,288,991 100% $1,115,000 100% Business Mix: Insurance Services Renewal business$313,448 67% $265,026 66% $860,223 67% $739,624 66%New business 81,710 17 74,170 19 241,906 19 210,764 19 Total Insurance Services 395,158 84 339,196 85 1,102,129 86 950,388 85 TWFG MGA Renewal business 48,687 10 46,075 11 132,429 10 125,364 11 New business 23,896 6 14,828 4 54,433 4 39,248 4 Total TWFG MGA 72,583 16 60,903 15 186,862 14 164,612 15 Total written premium$467,741 100% $400,099 100% $1,288,991 100% $1,115,000 100% Written Premium Retention: Insurance Services 92% 89% 91% 93%TWFG MGA 80 83 80 83 Consolidated 91 88 89 91 Line of Business: Personal lines$386,741 83% $327,159 82% $1,050,439 81% $904,372 81%Commercial lines 81,000 17 72,940 18 238,552 19 210,628 19 Total written premium$467,741 100% $400,099 100% $1,288,991 100% $1,115,000 100%

TWFG Announces Third Quarter 2025 Results

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