TWFG Narrows 2026 Organic Growth Floor After Slowdown

The Tip Desk · November 11, 2026 · 3 min read

Third-quarter revenue reached $79.9 million as organic growth cooled to 16.6% and the company lifted its full-year organic growth floor to 15-17%.

TWFG, Inc. (TWFG), a high-growth insurance distribution company, reported third-quarter revenue of $79.9 million, up 24.6% from a year earlier, as year-over-year growth cooled from the second quarter’s 45.1% pace.

Organic Revenue Growth Rate slowed to 16.6% from 37.0% in the second quarter, after 10.1% in the first quarter. Organic Revenue was $68.7 million, up $9.8 million from an adjusted prior-year denominator of $58.9 million. The company said the rate reflected increased renewal and new-business growth across all offerings.

Commission income, the bulk of the top line, rose 25.9% to $73.4 million. That growth outpaced written premium growth by 740 basis points, the company said, as the mix shifted toward higher commission-rate programs. Total Written Premium increased 18.5% to $554.2 million, after 26.6% growth in the second quarter. Growth was primarily volume-led rather than rate-driven, the company said, in a moderating rate environment, with premium retention of 88%.

TWFG MGA revenue was $24.8 million, up from $13.9 million a year earlier. Agency-in-a-Box revenue was $39.6 million and Corporate Branches $15.0 million. Chief executive Gordy Bunch said written premium, total revenues and Adjusted EBITDA were supported by growth across Agency-in-a-Box, Corporate Stores and MGA programs, as well as contributions from recent acquisitions.

Net income was $9.0 million, or $0.09 a share, compared with $9.6 million a year earlier. Net income margin was 11.3%. The company said higher other administrative expenses and salaries and benefits, along with lower interest income and higher non-cash amortization related to acquisitions, affected the year-over-year comparison. Commission expense increased 20.9% to $41.9 million, growing about 500 basis points slower than commission income. Salaries and employee benefits rose 19.3% to $11.8 million. Other administrative expenses increased 85.8% to $9.7 million, primarily from professional and legal fees tied to capital-markets and credit-facility expansion.

Adjusted Net Income increased 16.3% to $15.1 million, with Adjusted Net Income Margin of 18.9%. Adjusted EBITDA grew 15.0% to $19.5 million. Adjusted EBITDA Margin compressed to 24.4% from 26.5% a year earlier. The company said Adjusted EBITDA was supported by the higher-margin profile of MGA operations and contributions from recent acquisitions, including APIA and corporate store additions.

Cash flow from operating activities was $10.6 million, compared with $15.0 million a year earlier. Adjusted Free Cash Flow was $7.5 million, which the company said was driven by working-capital impacts including higher commission receivables and lower commission payables and other liabilities. Unrestricted cash and cash equivalents were $77.8 million as of September 30, 2026. The revolving credit facility had $125.0 million of unused capacity. Outstanding term notes payable were $2.5 million.

During the third quarter, TWFG Insurance Services completed the branch-conversion acquisition of Select Insurance Solutions, Inc., joining 2026 corporate-store and MGA deals including Loften Wells, Fortress Insurance Services and APIA.

Based on year-to-date performance and current business trends, the company updated full-year 2026 Organic Revenue Growth guidance to 15-17% from 13-17% and Adjusted EBITDA Margin guidance to 24-27% from 23-27%. Total Revenues guidance remained $300 million to $320 million. The company said the updated outlook reflects stronger-than-expected performance across the core businesses and subsequent acquisitions. TWFG will host an Investor Day on November 12, 2026.