-- Total Revenues increased 45.1% for the quarter over the prior year period to $87.5 million --

-- Organic Revenue Growth Rate* of 37.0% for the quarter --

-- Net income of $17.3 million and Net Income Margin of 19.7% for the quarter --

-- Adjusted EBITDA Margin* expanded 530 basis points to 30.4% --

-- Raising full-year 2026 guidance --

THE WOODLANDS, Texas, Aug. 05, 2026 (GLOBE NEWSWIRE) -- TWFG, Inc. ("TWFG", the "Company" or "we") $(TWFG)$, a high-growth insurance distribution company, today announced results for the second quarter ended June 30, 2026.

Second Quarter 2026 Highlights

   -- Total revenues for the quarter increased 45.1% to $87.5 million, compared 
      to $60.3 million in the prior year period 
 
   -- Commission income for the quarter increased 47.8% to $80.6 million, 
      compared to $54.6 million in the prior year period 
 
   -- Net income for the quarter was $17.3 million, compared to $9.0 million in 
      the prior year period, and net income margin for the quarter was 19.7% up 
      from 14.9% in the prior year period 
 
   -- Diluted Earnings Per Share for the quarter was $0.18 and Adjusted Diluted 
      Earnings Per Share* for the quarter was $0.38 
 
   -- Total Written Premium for the quarter increased 26.6% to $569.9 million, 
      compared to $450.3 million in the prior year period 
 
   -- Organic Revenue Growth Rate* for the quarter was 37.0% 
 
   -- Adjusted Net Income* for the quarter increased 76.1% from the prior year 
      period to $20.3 million, and Adjusted Net Income Margin* for the quarter 
      was 23.2% 
 
   -- Adjusted EBITDA* increased 75.8% to $26.6 million, with Adjusted EBITDA 
      Margin expanding 530 basis points to 30.4%, compared to 25.1% in the 
      prior year period 
 
   -- Approximately $42.9 million in cash was used to repurchase 2,252,349 
      shares under the Company's $50 million share repurchase authorization, 
      leaving approximately $7.1 million available for future repurchases. 

*Organic Revenue Growth Rate, Adjusted Net Income, Adjusted Net Income Margin, Adjusted EBITDA, Adjusted EBITDA Margin, 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 second quarter results demonstrate our focus on delivering double digit growth. Written premium grew 26.6% with revenue growth of 45.1%, and our Adjusted EBITDA Margin expanded to 30.4%. Growth was driven across our Agency-in-a-Box, Corporate Stores, and MGA programs, along with contributions from our recent acquisitions," said Gordy Bunch, CEO.

"Operationally, we remain focused on the fundamentals that drive sustainable, profitable growth, including disciplined producer recruiting, deepening carrier partnerships, and continued investment in our proprietary technology to improve agent productivity and provide the best client experience. Our MGA programs continue to scale efficiently, contributing to expanding margins across the enterprise."

Second Quarter 2026 Results

During the quarter, industry conditions remained favorable for TWFG's distribution model even as personal auto pricing continued downward industry-wide and homeowners rate increases continued to moderate. TWFG's diversified distribution platform, combining independent agency operations, proprietary MGA programs, and technology-enabled systems, continued to convert favorable carrier economics into premium growth and margin expansion.

For the second quarter, Total Written Premium increased 26.6% to $569.9 million, compared with $450.3 million in the same period of the prior year. Growth was primarily volume-led rather than rate driven, consistent with the moderating rate environment, and was supported by three key factors: (1) continued organic growth in the Agency-in-a-Box network, including increased policy count and strong client retention; (2) continued scaling of the Company's MGA programs; and (3) contributions from new corporate store acquisitions. Consolidated written premium retention was 93% for the quarter, up from 89% in the prior year period, Consolidated written premium retention excluding takeout renewals from TWFG MGA FL, LLC ("MGA FL"), was approximately 88%.

Total revenues increased 45.1% to $87.5 million, compared to $60.3 million in the same period in the prior year, outpacing written premium growth by nearly 20 percentage points. This spread reflects a structural mix shift towards a higher-commission-rate business: Key TWFG MGA programs carry commission rates above 20% versus approximately 12% for the core Agency-in-a-Box network, and now represents a substantially higher share of total commission income than of total written premium.

Organic Revenues, which exclude contingent, non-policy fee, other income, and those revenues generated from recently acquired businesses, were $75.5 million for the quarter, an increase of $20.4 million from $55.1 million in the same period last year. The Organic Revenue Growth Rate of 37.0% was driven by structural tailwinds from the 2025 MGA FL Citizens** takeout policies renewing into the quarter where the prior period had very little commissions.

Commission expense for the quarter increased 24.4% to $42.5 million, reflecting acquisitions and continued production growth, while growing meaningfully slower than commission income; a roughly 2,300 basis point spread reflecting favorable mix shift and earned revenue with no corresponding commission expense for takeout policies and acquired books of business. Salaries and employee benefits were $11.8 million, up 24.1% compared to $9.5 million in the same period in the prior year, primarily due to incremental headcount associated with the Company's continued acquisition strategy, MGA Florida infrastructure build-out, and public company maturity. Other administrative expenses rose 59.0% to $8.6 million, primarily driven by our completed acquisitions and continued investments to support our growth initiatives.

Net income for the quarter was $17.3 million, compared to $9.0 million in the same prior year period resulting in a net income margin of 19.7%, up from 14.9% last year. Adjusted Net Income increased 76.1% to $20.3 million, with an Adjusted Net Income Margin of 23.2% compared to 19.1% in the same period in the prior year.

Adjusted EBITDA grew 75.8% to $26.6 million, reflecting strong operating leverage across the platform, the higher-margin profile of our MGA operations, and the contribution of recent acquisitions including APIA and corporate store additions. The Adjusted EBITDA Margin expanded to 30.4%, compared to 25.1% in the second quarter of 2025.

Cash flow from operating activities was $9.8 million, compared to $9.6 million in the same period of the prior year. Adjusted Free Cash Flow was $3.6 million, compared to $2.9 million in the same period of the prior year, primarily driven by the increase in net income, decrease in tax distributions to members, with a slight offset due to the increase in purchase of property and equipment in the current period.

**A Citizens takeout refers to the Citizens Property Insurance Corporation depopulation program in Florida, under which policies are transferred from the state-backed insurer to approved private insurance carriers. This program is designed to reduce Citizens' policy count and increase private market participation.

Liquidity and Capital Resources

As of June 30, 2026, the Company had unrestricted cash and cash equivalents of $73.7 million. We had full unused capacity on our revolving credit facility of $50.0 million as of June 30, 2026. The total outstanding term notes payable balance was $3.0 million as of June 30, 2026.

During the first quarter of 2026, the Company's Board of Directors authorized a share repurchase program of up to $50.0 million of the Company's Class A common stock. The authorization reflects the Board's confidence in TWFG's long-term growth outlook, strong cash generation profile and disciplined capital allocation framework. As of June 30, 2026, the Company had repurchased approximately $43.3 million under the program, with approximately $7.1 million remaining available for future repurchases. The program does not obligate the Company to repurchase any specific number of shares and may be suspended or discontinued at any time.

2026 Acquisitions Update

TWFG Insurance Services completed the acquisition of Fortress Insurance Services, an Iowa-based independent agency with five locations, effective May 1, 2026, complementing our previous Midwest additions.

This transaction joins a broader roster of 2025--2026 corporate store and MGA acquisitions -- including Loften Wells, Mears, McInnis, Angers & Litz, Alabama Insurance Agency, and APIA -- that together contributed approximately $51.0 million of incremental written premium in the first half of 2026.

Updated 2026 Outlook

Based on year-to-date performance and current business trends, the Company is increasing its full-year 2026 financial outlook:

 
         Metric           Previous Guidance  Updated Guidance 
------------------------  -----------------  ----------------- 
Organic Revenue Growth*              10-15%             13-17% 
------------------------  -----------------  ----------------- 
Total Revenues            $285-$300 million  $300-$320 million 
------------------------  -----------------  ----------------- 
Adjusted EBITDA Margin*              22-25%             23-27% 
------------------------  -----------------  ----------------- 
 

The updated outlook reflects stronger-than-expected performance across the core businesses and subsequent acquisitions.