TWFG, Inc. (TWFG) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and welcome to TWFG's third quarter 2025 earnings conference call. All participants are in a listen-only mode. Following management's prepared remarks, we will open the line for questions. As a reminder, today's call may include forward-looking statements that are subject to risk and uncertainties. Actual results could differ materially. For more information, please review our filings with the SEC. And now, I'd like to turn the call over to Gordy Bunch, Chief Executive Officer. Please go ahead. Thank you, Operator, and good morning, everyone. TWFG delivered another strong quarter of performance, reflecting both the resilience of our distribution platform and continued scalability of our operating model. Total revenues increased 21% quarter over quarter to $64.1 million. supported by 10.2% organic revenue growth and M&A revenues, while adjusted EBITDA grew 45% to $17 million, expanding margins by 430 basis points to 26.5%. That margin expansion underscores the earnings power of our distribution platform and execution on accretive M&A as we leverage scale and financial discipline. We continue to see encouraging signs of personal lines normalization. Carrier appetite has returned, rate increases have moderated, and underwriting discipline remains strong, all of which are helping to normalize retention and new business growth across our platform. Our diversified model spanning retail, MGA, and affiliated agencies positions us to capitalize on those hard and soft market cycles. Our third quarter recruiting and M&A activities were productive, with the addition of eight new retail locations, one new corporate location, and 370 independent agents to our MGA platform. Following the quarter, we completed the acquisition of Alabama Insurance Agency, adding 23 addit...