TWFG, Inc.
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 5, 2026
TWFG$28.11-2.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0002007596-26-000012
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0001628280-26-071071
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 180 previous paragraphs and 179 current paragraphs.
100 unchanged; 62 reworded; 17 added; 15 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 18 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (17)
Current report
Expenses
Current report
Other non-operating income (Expense)
Current report
Other non-operating income (expense), net consists primarily of realized gains and losses from the sale of books of business and fixed assets, as well as foreign currency exchange gains and losses.
Current report
•TPA fees for the three months ended September 30, 2026 remained consistent with the prior-year period.
Current report
Income tax expense for the three months ended September 30, 2026 was $0.6 million compared to $1.0 million for the same period in the prior year.
Current report
•License fees for the nine months ended September 30, 2026 decreased by $0.2 million, or (8.6)%, compared to the same period in the prior year. The decrease primarily reflects lower system development fee activity in the current period, as the prior-year period included significant fees to support expansion into additional states and broader geographic growth initiatives.
Current report
Income tax expense for the nine months ended September 30, 2026 was $2.8 million compared to$2.3 million for the same period in the prior year.
Current report
Comparison of the nine months ended September 30, 2026 and 2025
Current report
Organic Revenue Growth Rate was 21.5% for the nine months ended September 30, 2026 compared to the same period in 2025 and 11.6% for the nine months ended September 30, 2025 compared to the same period in 2024.
Current report
(1) Non-recurring expense for the three and nine months ended September 30, 2026, primarily includes legal and professional fees associated with capital markets and credit facility expansion activities and lease termination costs. Non-recurring expense for the nine-month period also includes a commercial concession. These costs are not considered by management to be reflective of the Company’s normal, recurring operating performance.
Current report
(3)Non-recurring expense for the three and nine months ended September 30, 2026, primarily includes legal and professional fees associated with capital markets and credit facility expansion activities and lease termination costs. Non-recurring expense for the nine-month period also includes a commercial concession. These costs are not considered by management to be reflective of the Company’s normal, recurring operating performance.
Current report
On August 12, 2026, the Company entered into an Amended and Restated Credit Agreement (the “Revolving Credit Agreement”) with the TWFG Holding, as borrower (in such capacity, the “Borrower”) and PNC Bank, National Association, as administrative agent, swing-line loan lender and issuing lender, the guarantors party thereto, and the lenders party thereto, which amended and restated the Company’s existing revolving credit facility originally dated May 23, 2023, and previously amended on June 20, 2024. The Revolving Credit Agreement enhances the Company’s liquidity position and provides financial flexibility to support strategic growth initiatives, including acquisitions.
Current report
The Revolving Credit Agreement provides for aggregate revolving commitments of up to $125.0 million, including a $12.5 million swing-line sub facility and a $12.5 million letter of credit sub facility, and includes an uncommitted accordion feature that permits the Company to seek up to an additional $75.0 million of revolving commitments, subject to the terms and conditions of the Revolving Credit Agreement. The Borrower may borrow, repay and reborrow under the Revolving Credit Agreement. The revolving loans mature on August 12, 2031.
Current report
Borrowings under the Revolving Credit Agreement bear interest, at the Borrower’s election, at either Daily SOFR (as defined in the Revolving Credit Agreement) or one-month Term SOFR (as defined in the Revolving Credit Agreement), plus an applicable margin ranging from 1.75% to 2.75% per annum based on the Company’s consolidated leverage ratio. Swing-line loans will bear interest at the Base Rate (as defined in the Revolving Credit
Current report
Agreement) plus an applicable margin at a rate of 1.00% per annum lower than the applicable margin for Daily SOFR or Term SOFR Rate loans as set forth above, based on the consolidated leverage ratio of the Company.
Current report
The obligations under the Revolving Credit Agreement are guaranteed by the Company and certain subsidiaries of the Borrower (the “Guarantors”). The Revolving Credit Agreement is secured by substantially all the assets of the Borrower and the Guarantors. The Revolving Credit Agreement contains customary affirmative and negative covenants and requires the Company to maintain a minimum consolidated debt service coverage ratio of 1.25 to 1.00 and a maximum consolidated leverage ratio of 3.00 to 1.00, subject to a temporary increase in the leverage ratio covenant to 3.50 to 1.00 following certain permitted acquisitions.
Current report
As of September 30, 2026, the Company had no borrowings outstanding under the Revolving Credit Agreement and maintained $125.0 million of available borrowing capacity. The Company was in compliance with all financial covenants under the Revolving Credit Agreement as of September 30, 2026.
Removed paragraphs (15)
Previous report
Interest expense.
Previous report
Income tax expense for the three months ended June 30, 2026 was $1.0 million compared to $0.6 million for the same period in the prior year.
Previous report
•License fees for the six months ended June 30, 2026 increased by $0.2 million, or 15.8%, compared to the same period in the prior year. The increase reflects expanded state footprint and strategic licensing fee adjustments to support agent services.
Previous report
Commission expense
Previous report
Salaries and employee benefits
Previous report
Other administrative expenses
Previous report
Depreciation and amortization
Previous report
Interest income
Previous report
Income tax expense for the six months ended June 30, 2026 was $2.2 million compared to$1.3 million for the same period in the prior year.
Previous report
Comparison of the six months ended June 30, 2026 and 2025
Previous report
(1)Non-recurring expense for the six months ended June 30, 2026 relates to the write-off of a commission receivable resulting from a contractual dispute with a carrier that was resolved through commercial concession.
Previous report
(3)Non-recurring expense for the six months ended June 30, 2026 relates to the write-off of a commission receivable resulting from a contractual dispute with a carrier that was resolved through commercial concession.
Previous report
The Revolving Credit Agreement (the “Revolving Credit Agreement”) with PNC Bank National Association, dated as of May 23, 2023 and as amended on June 20, 2024, provides a revolving credit facility to the Company, with commitments in an aggregate principal amount not to exceed $50.0 million (as so amended, the “Revolving Facility,” and together with the Term Loan Credit Agreement, the “Credit Agreements”). Borrowings constituting revolving loans under the Revolving Credit Agreement incur interest at the Term SOFR Rate (as defined therein) for the applicable interest period plus a margin based on the consolidated leverage ratio of the Company between 2% and 2.75%, and a 0.10% adjustment. The borrowings under the Revolving Facility may be used by the Company for permitted acquisitions, working capital and general corporate purposes. The Company pays a commitment fee on unutilized amounts under the Revolving Facility of 0.20% up to 0.35% based on the consolidated leverage ratio. For the periods ended June 30, 2026 and June 30, 2025, the Revolving Facility had an unutilized capacity of $50.0 million and $50.0 million, respectively.
Previous report
Each of the Revolving Facility and the term loans requires the Company to maintain a consolidated leverage ratio of no greater than 2.00 to 1.00 (or, after the occurrence of certain acquisitions, 2.50 to 1.00). The Credit Agreements also contain covenants that, among other provisions and subject to certain exceptions, restrict our ability to pay dividends or other distributions, incur additional debt, engage in asset sales, mergers, acquisitions or similar transactions, create liens on assets, engage in transactions with affiliates, change our business or make investments. As of June 30, 2026 and June 30, 2025, the Company was in compliance with these covenants. The carrying amount of the Company’s variable rate debt as of June 30, 2026 and June 30, 2025 approximates fair value due to the short-term reset of the interest rate based on SOFR and the absence of a credit spread.
Previous report
Interest on the Term Loan C accrues at Daily Simple Secured Overnight Financing Rate (“SOFR”) plus the Benchmark Replacement Adjustment of 0.11448%, 0.26161%, or 0.42826% for the one-month, three-month, or six-month borrowing periods, respectively. At our option, the revolving credit facility under the Revolving Facility accrues interest on amounts drawn at the Term SOFR Rate or Daily SOFR plus the SOFR Adjustment of 0.10% and Applicable Margin of 2.00% to 2.75%, each as defined in the Revolving Facility. The Term Loans and the Revolving Facility are collateralized by substantially all the Company’s assets, which includes rights to future commissions.
Reworded paragraphs (62)
Previous wording
The following discussion contains commentary on the financial results derived from the unaudited Condensed Consolidated Financial Statements for the three and six months ended June 30, 2026 and June 30, 2025 of TWFG, Inc.
Current wording
The following discussion contains commentary on the financial results derived from the unaudited Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2026 and September 30, 2025 of TWFG, Inc.
Previous wording
Other income. Other income is comprised primarily of income earned for facilitating premium financing arrangements, fees assessed for agent conventions, interest income on fiduciary funds, and other miscellaneous income.
Current wording
Other income. Other income is comprised primarily of income earned for facilitating premium financing arrangements, interest income on fiduciary funds, convention sponsorship fees, and other miscellaneous income.
Previous wording
Other administrative expenses include technology costs, legal and professional fees, office expenses, marketing expense, survey expenses and other costs associated with our operations. Fluctuations in other administrative expenses are relative to the overall scale of our business operations.
Current wording
Other administrative expenses include technology costs, legal and professional fees, office expenses, marketing expenses, survey and underwriting expenses and other costs associated with our operations. Fluctuations in other administrative expenses are relative to the overall scale of our business operations.
Previous wording
Total revenues for thethree months ended June 30, 2026 increased by $27.2 million, or 45.1%, compared to the same period in the prior year. The $26.1 million, or 47.8%, increase in commission income was driven by TWFG MGA FL, LLC (“TWFG MGA FL”) growth, new agent onboarding, strategic acquisitions, and higher commission income rates. Also contributing to the increase in total revenues were the $0.8 million, or 25.1%, increase in fee income, $0.2 million, or 39.6%, increase in other income, and $0.1 million, or 6.6%, increase in contingent income compared to the same period in the prior year. See discussions below for additional information about the changes in our revenues.
Current wording
Total revenues for thethree months ended September 30, 2026 increased by $15.8 million, or 24.6%, compared to the same period in the prior year. Commission income increased $15.1 million, or 25.9%, over the prior year period, primarily driven by TWFG MGA growth of $10.7 million or 92.6%, over the prior year period, new agent onboarding, strategic acquisitions, and higher commission income rates. Also contributing to the increase in total revenues included $0.1 million, or 2.5%, increase in fee income, $0.1 million, or 41.4%, increase in other income, and $0.5 million, or 22.7%, increase in contingent income compared to the same period in the prior year. See discussions below for additional information about the changes in our revenues.
Previous wording
Total commission income for thethree months ended June 30, 2026 increased by $26.1 million, or 47.8%, compared to the same period in the prior year. The increase was primarily driven by growth in written premiums, including contributions from the acquisitions of TWFG MGA FL and the APIA MGA programs, which generate higher commission rates, as well as continued organic growth. Corporate store acquisitions completed after June 30, 2025 also contributed to the increase.
Current wording
Total commission income for thethree months ended September 30, 2026 increased by $15.1 million, or 25.9%, compared to the same period in the prior year. The increase was primarily driven by growth in written premiums, including contributions from the acquisitions of TWFG MGA FL and the APIA MGA programs, which generate higher commission rates, as well as continued organic growth. Corporate store acquisitions completed after September 30, 2025 also contributed to the increase.
Previous wording
Commission income for Insurance Services increased by $5.8 million, or 12.2%, representing 10.6% of the total growth for thethree months ended June 30, 2026, compared to the same period in the prior year. Agency-in-a-Box commission income increased by $3.4 million, or 9.4%, for the three months ended June 30, 2026 compared to the same period in the prior year mainly due to organic growth and acquisitions. Corporate Branches commission income increased by $2.4 million, or 21.2%, for the three months ended June 30, 2026 compared to the same period in the prior year. The increase was primarily driven by the acquisitions completed after June 30, 2025.
Current wording
Commission income for Insurance Services increased by $4.4 million, or 9.4%, compared to the same period in the prior year. Agency-in-a-Box commission income increased by $2.0 million, or 5.6%, compared to the same period in the prior year, primarily due to organic growth and acquisitions. Corporate Branches commission income increased by $2.5 million, or 20.4%, compared to the same period in the prior year, primarily due to acquisitions completed after September 30, 2025.
Previous wording
TWFG MGA commission income for the three months ended June 30, 2026 increased by $20.3 million, or 290.2%, representing 37.2% of the total growth, as compared to the same period in the prior year. This increase was primarily driven by the acquisitions and higher commission rates. TWFG MGA FL contributed $16.2 million of the total increase of $20.3 million.
Current wording
TWFG MGA commission income increased by $10.7 million, or 92.6%, compared to the same period in the prior year. This increase was primarily driven by the acquisitions and higher commission rates. TWFG MGA FL contributed $8.0 million of the total increase of $10.7 million.
Previous wording
Contingent income for the three months ended June 30, 2026 was $2.2 million, reflecting a $0.1 million, or 6.6%, increase compared to the same period in the prior year. Contingent income is unpredictable and dependent upon the target financial and performance metrics established by the insurance carriers.
Current wording
Contingent income for the three months ended September 30, 2026 was $2.6 million, reflecting a $0.5 million, or 22.7%, increase compared to the same period in the prior year. Contingent income is unpredictable and dependent upon the target financial and performance metrics established by the insurance carriers.
Previous wording
Fee income for the three months ended June 30, 2026 increased by $0.8 million, or 25.1%, compared to the same period in the prior year. Changes to individual components of fee income are discussed in detail below:
Current wording
Fee income for the three months ended September 30, 2026 increased by $0.1 million, or 2.5%, compared to the same period in the prior year. Changes to individual components of fee income are discussed in detail below:
Previous wording
•Policy fees for the three months ended June 30, 2026 increased by $0.6 million, or 56.9%, compared to the same period in the prior year. The increase in policy fees was primarily due to higher policy count driven by renewal and new business growth.
Current wording
•Policy fees for the three months ended September 30, 2026 increased by $0.4 million, or 32.1%, compared to the same period in the prior year. The increase in policy fees was primarily due to higher policy count driven by renewal and new business growth.
Previous wording
•Branch fees for the three months ended June 30, 2026 increased by $0.1 million, or 4.8%, compared to the same period in the prior year. The increase in branch fees was primarily driven by increased agent growth.
Current wording
•Branch fees for the three months ended September 30, 2026 increased by $0.1 million, or 6.4%, compared to the same period in the prior year. The increase in branch fees was primarily driven by increased agent growth.
Previous wording
•License fees for the three months ended June 30, 2026 increased by $0.3 million, or 47.0%, compared to the same period in the prior year. The increase reflects system developments to support expanded state footprints.
Current wording
•License fees for the three months ended September 30, 2026 decreased by $(0.4) million, or (40.6)%, compared to the same period in the prior year. The decrease reflects system developments to support expanded state footprints in the same period in the prior year that are absent in the current year.
Previous wording
Other income for the three months ended June 30, 2026 was$0.5 million compared to$0.4 million in the same period in the prior year. The increase was primarily driven by premium financing income.
Current wording
Other income for the three months ended September 30, 2026 was$0.4 million compared to$0.3 million in the same period in the prior year. The increase was primarily driven by premium financing income.
Previous wording
Total commission expense for the three months ended June 30, 2026 increased by $8.3 million, or 24.4% compared to the same period in the prior year. The increase was primarily due to the increased business growth combined with the overall shift in business mix. See commission income discussion above for additional information regarding the driver of changes.
Current wording
Total commission expense for the three months ended September 30, 2026 increased by $7.3 million, or 20.9%, compared to the same period in the prior year. The increase was primarily due to the increased business growth combined with the overall shift in business mix. See commission income discussion above for additional information regarding the driver of changes.
Previous wording
Commission expense for Insurance Services grew by $1.9 million, or 6.4%, for the three months ended June 30, 2026 compared to the same period in the prior year. Agency-in-a-Box commission expense increased by $1.9 million, or 6.9%, for the three months ended June 30, 2026 compared to the same period in the prior year. The increase was primarily driven by the increase in our business. Corporate Branches commission expense for the three months ended June 30, 2026 was comparable to the same period in the prior year. The expenses of our Corporate Branches are primarily salaries and benefits, and are primarily fixed expenses, which are not directly related to commission income or written premium.
Current wording
Commission expense for Insurance Services grew by $2.6 million, or 8.8%, for the three months ended September 30, 2026 compared to the same period in the prior year. Agency-in-a-Box commission expense increased by $2.4 million, or 8.7%, for the three months ended September 30, 2026 compared to the same period in the prior year. The increase was primarily driven by the increase in our business. Corporate Branches commission expense for the three months ended September 30, 2026 was comparable to the same period in the prior year. The expenses of our Corporate Branches are primarily salaries and benefits, and are primarily fixed expenses, which are not directly related to commission income or written premium.
Previous wording
TWFG MGA commission expense for the three months ended June 30, 2026 increased by $6.4 million, or 141.1%, compared to the same period in the prior year. The increase is primarily driven bythe expansion of TWFG MGA through acquisitions and new agent onboarding, and shift in business composition.
Current wording
TWFG MGA commission expense for the three months ended September 30, 2026 increased by $4.7 million, or 84.5%, compared to the same period in the prior year. The increase is primarily driven bythe expansion of TWFG MGA through acquisitions and new agent onboarding, and shift in business composition.
Previous wording
Salaries and employee benefits for the three months ended June 30, 2026 increased by $2.3 million, or 24.1%, to $11.8 million compared to the same period in the prior year. The increase was primarily driven by $2.3 million in acquisitions, and a $0.3 million increase in corporate employee growth, offset by a decrease of$0.3 million in stock-based compensation.
Current wording
Salaries and employee benefits for the three months ended September 30, 2026 increased by$1.9 million, or 19.3%, to $11.8 million compared to the same period in the prior year. The increase was primarily driven by $1.9 million in acquisitions, and a $0.3 million increase in corporate employee growth, offset by a decrease of$0.3 million in stock-based compensation.
Previous wording
Other administrative expenses for the six months ended June 30, 2026 increased by $5.9 million, or 57.8%, to$16.0 million compared to the same period in the prior year. The increase was primarily due to $3.7 million of acquisitions, along with $2.2 million in information technology cost, insurance expense, and other costs associated with the growth of the business.
Current wording
Other administrative expenses for the three months ended September 30, 2026 increased by$4.5 million, or 85.8%, to$9.7 million compared to the same period in the prior year. The increase was primarily due to $1.1 million in other professional fees, $1.1 million in legal costs, $0.7 million in survey and underwriting costs, $0.4 million in information technology costs, $0.3 million in insurance expenses, $0.3 million in acquisitions, and $0.6 million in other costs associated with the growth of the business.
Previous wording
Depreciation and amortization for the six months ended June 30, 2026 was $13.2 million compared to $7.3 million in the same period in the prior year, reflecting an increase of $6.0 million, or 82.3%. The increase was primarily due to the amortization of intangible assets from our recent asset acquisitions.
Current wording
Depreciation and amortization for the three months ended September 30, 2026 increased by $2.2 million, or 40.7%, to $7.5 million compared to the same period in the prior year. The increase was primarily due to the amortization of intangible assets from our recent asset acquisitions.
Previous wording
Interest income for the three months ended June 30, 2026 was $0.8 million, compared to $1.8 million for the same period in the prior year. The decrease reflects lower average cash balances following capital deployment into acquisitions and share repurchases.
Current wording
Interest income for the three months ended September 30, 2026 was $0.5 million, compared to $1.6 million for the same period in the prior year. The decrease reflects lower average cash balances following capital deployment into acquisitions and share repurchases.
Previous wording
Total revenues for the six months ended June 30, 2026 increased by $46.2 million, or 40.5%, compared to the same period in the prior year. The $44.3 million, or 42.9%, increase in commission income was driven by written premium growth, continued organic business growth, and acquisitions made in 2025. Also contributing to the increase in total revenues were the $1.2 million, or 18.5%, increase in fee income, $0.4 million, or 11.0%, increase in contingent income, and $0.3 million, or 39.4% increase in other income compared to the same period in the prior year. See discussions below for additional information about the changes in our revenues.
Current wording
Total revenues for the nine months ended September 30, 2026 increased by $62.0 million, or 34.8%, compared to the same period in the prior year. Commission income increased by $59.5 million, or 36.8%, over the prior year period, primarily driven by written premium growth, continued organic business growth, and acquisitions made in 2025 and 2026. Also contributing to the increase in total revenues were fee income of $1.3 million, or 12.8%, contingent income of $0.9 million, or 15.2%, and other income of $0.4 million, or 40.0%, compared to the same period in the prior year. See discussions below for additional information about the changes in our revenues.
Previous wording
Commission income for the six months ended June 30, 2026 increased by $44.3 million, or 42.9%, compared to the same period in the prior year. The increase was primarily driven by growth in written premiums, including contributions from the acquisitions of TWFG MGA FL and the APIA MGA programs, which generate higher commission rates, as well as continued organic growth. Corporate store acquisitions completed after June 30, 2025 also contributed to the increase.
Current wording
Commission income for the nine months ended September 30, 2026 increased by $59.5 million, or 36.8%, compared to the same period in the prior year. The increase was primarily driven by growth in written premiums, including contributions from the acquisitions of TWFG MGA FL and the APIA MGA programs, which generate higher commission rates, as well as continued organic growth. Corporate store acquisitions completed after September 30, 2025 also contributed to the increase.
Previous wording
Commission income for Insurance Services grew by $11.1 million, or 12.5%, for the six months ended June 30, 2026 compared to the same period in the prior year. Agency-in-a-Box commission income increased by $6.3 million, or 9.1%, for the six months ended June 30, 2026 compared to the same period in the prior year. This increase was driven by higher written premium volume through organic growth and mix in line of business over the period. Corporate Branches commission income increased by $4.8 million, or 24.7%, for the six months ended June 30, 2026 compared to the same period in the prior year. The increase was primarily driven by the acquisitions completed after June 30, 2025 and organic growth.
Current wording
Commission income for Insurance Services grew by $15.5 million, or 11.4%, for the nine months ended September 30, 2026 compared to the same period in the prior year. Agency-in-a-Box commission income increased by $8.3 million, or 7.9%, for the nine months ended September 30, 2026 compared to the same period in the prior year. This increase was driven by higher written premium volume through organic growth and mix in line of business over the period. Corporate Branches commission income increased by $7.3 million, or 23.1%, for the nine months ended September 30, 2026 compared to the same period in the prior year. The increase was primarily driven by the acquisitions completed after September 30, 2025 and organic growth.
Previous wording
TWFG MGA commission income for the six months ended June 30, 2026 increased by $33.2 million, or 233.8%, compared to the same period in the prior year. The increase in TWFG MGA was primarily driven by the acquisition of TWFG MGA FL completed in 2025 which contributed $28.2 million to the total increase of $33.2 million.
Current wording
TWFG MGA commission income for the nine months ended September 30, 2026 increased by $43.9 million, or 170.5%, compared to the same period in the prior year. The increase in TWFG MGA was primarily driven by the acquisition of TWFG MGA FL completed in 2025 which contributed $36.2 million to the total increase of $43.9 million.
Previous wording
Contingent income for the six months ended June 30, 2026 was $4.1 million, reflecting a $0.4 million, or 11.0%, increase compared to the same period in the prior year. The increase in contingent income was primarily due to underlying growth in our business. Contingent income is unpredictable and dependent upon the target financial and performance metrics established by the insurance carriers.
Current wording
Contingent income for the nine months ended September 30, 2026 was $6.7 million, reflecting a $0.9 million, or 15.2%, increase compared to the same period in the prior year. The increase in contingent income was primarily due to underlying growth in our business. Contingent income is unpredictable and dependent upon the target financial and performance metrics established by the insurance carriers.
Previous wording
Fee income for the six months ended June 30, 2026 increased by $1.2 million, or 18.5%, compared to the same period in the prior year. Changes to individual components of fee income are discussed in detail below:
Current wording
Fee income for the nine months ended September 30, 2026 increased by $1.3 million, or 12.8%, compared to the same period in the prior year. Changes to individual components of fee income are discussed in detail below:
Previous wording
•Policy fees for the six months ended June 30, 2026 increased by $1.0 million, or 45.3%, compared to the same period in the prior year. The increase in policy fees was primarily due to higher policy count driven by renewal and new business growth.
Current wording
•Policy fees for the nine months ended September 30, 2026 increased by $1.3 million, or 40.6%, compared to the same period in the prior year. The increase in policy fees was primarily due to higher policy count driven by renewal and new business growth.
Previous wording
•Branch fees for the six months ended June 30, 2026 increased by $0.1 million, or 5.0%, compared to the same period in the prior year. The increase in branch fees was primarily driven by increased agent growth.
Current wording
•Branch fees for the nine months ended September 30, 2026 increased by $0.2 million, or 5.5%, compared to the same period in the prior year. The increase in branch fees was primarily driven by increased agent growth.
Previous wording
•TPA fees for the three months ended June 30, 2026 decreased by $0.1 million, or 40.8%, compared to the same period in the prior year. The decrease in TPA fees was due to the decreased volume in claims processed by TWFG MGA.
Current wording
•TPA fees for the nine months ended September 30, 2026 decreased by $0.1 million, or (25)%, compared to the same period in the prior year. The decrease in TPA fees was due to the decreased volume in claims processed by TWFG MGA.
Previous wording
Other income for the six months ended June 30, 2026 was $1.0 million compared to $0.7 million in the same period in the prior year. The increase was primarily driven by premium financing income.
Current wording
Other income for the nine months ended September 30, 2026 was $1.5 million compared to $1.0 million in the same period in the prior year. The increase was primarily driven by premium financing income.
Previous wording
Commission expense for the six months ended June 30, 2026 increased by $13.6 million, or 20.6%, compared to the same period in the prior year. The increase was primarily due to the increased business growth and overall shift in business mix. See commission income discussion above for additional information regarding the driver of changes.
Current wording
Commission expense for the nine months ended September 30, 2026 increased by $20.8 million, or 20.7%, compared to the same period in the prior year. The increase was primarily due to the increased business growth and overall shift in business mix. See commission income discussion above for additional information regarding the driver of changes.
Previous wording
Commission expense for total Insurance Services increased by $4.7 million, or 8.3%, for the six months ended June 30, 2026 compared to the same period in the prior year. Insurance Services Agency-in-a-Box commission expense for the six months ended June 30, 2026 increased by $4.6 million, or 8.6%, compared to the same period in the prior year. The increase was primarily driven by the increase in our business.
Current wording
Commission expense for total Insurance Services increased by $7.3 million, or 8.5%, for the nine months ended September 30, 2026 compared to the same period in the prior year. Insurance Services Agency-in-a-Box commission expense for the nine months ended September 30, 2026 increased by $7.0 million, or 8.6%, compared to the same period in the prior year. The increase was primarily driven by the increase in our business.
Previous wording
Insurance Services Corporate Branches commission expense for the six months ended June 30, 2026 increased by $0.1 million, or 3.2%, compared to the same period in the prior year. The increase in commission expense was driven by both organic business growth and acquisition of Corporate Branches in the current period. The expenses of our Corporate Branches are primarily salaries and benefits, and are primarily fixed expenses, which are not directly related to commission income or written premium.
Current wording
Insurance Services Corporate Branches commission expense for the nine months ended September 30, 2026 increased by $0.2 million, or 5.9%, compared to the same period in the prior year. The increase in commission expense was driven by both organic business growth and acquisition of Corporate Branches in the current period. The expenses of our Corporate Branches are primarily salaries and benefits, and are primarily fixed expenses, which are not directly related to commission income or written premium.
Previous wording
TWFG MGA commission expense for the six months ended June 30, 2026 increased by $8.7 million, or 94.4%, compared to the same period in the prior year. The increase was primarily driven by the acquisitions and overall growth.
Current wording
TWFG MGA commission expense for the nine months ended September 30, 2026 increased by $13.4 million, or 90.7%, compared to the same period in the prior year. The increase was primarily driven by the acquisitions and overall growth.
Previous wording
Salaries and employee benefits for the six months ended June 30, 2026 increased by$4.0 million, or 22.6%, to $21.7 million compared to $17.7 million in the same period in the prior year. The increase was primarily driven by $6.5 million in salaries and employee benefit expenses, acquisitions and increase in corporate employee growth of $0.5 million, offset by a decrease of $2.6 million in stock-based compensation.
Current wording
Salaries and employee benefits for the nine months ended September 30, 2026 increased by$5.9 million, or 21.4%, to $33.5 million compared to $27.6 million in the same period in the prior year. The increase was primarily driven by $5.8 million of acquisitions, $1.1 million of headcount growth, offset by a decrease of $1.0 million in stock-based compensation.
Previous wording
Other administrative expenses for the three months ended June 30, 2026 increased by$3.2 million, or 59.0%, to$8.6 million compared to the same period in the prior year. The increase was primarily due to $2.2 million in acquisitions, along with $1.0 million in information technology cost, insurance expense, and other costs associated with the growth of the business.
Current wording
Other administrative expenses for the nine months ended September 30, 2026 increased by $10.3 million, or 67.3%, to$25.6 million compared to the same period in the prior year. The increase was primarily due to $3.1 million of acquisitions, along with $2.5 million in other professional fees, $1.6 million in survey and underwriting costs, $0.9 million in legal costs, $1.1 million in information technology costs, $0.6 million in insurance expenses, and $0.5 million in other costs associated with the growth of the business.
Previous wording
Depreciation and amortization for the three months ended June 30, 2026 was $7.1 million compared to $3.9 million in the same period in the prior year, reflecting an increase of $3.2 million, or 81.1%. The increase was primarily due to the amortization of intangible assets from our recent asset acquisitions.
Current wording
Depreciation and amortization for the nine months ended September 30, 2026 was $20.7 million compared to $12.6 million in the same period in the prior year, reflecting an increase of $8.1 million, or 64.7%. The increase was primarily due to the amortization of intangible assets from our recent asset acquisitions.
Previous wording
Interest income for the six months ended June 30, 2026 was $2.0 million, compared to $3.6 million in the same period in the prior year, reflecting a decrease of $1.6 million. The decrease was attributable to the decline in cash balances which averaged $130.3 million over the six months ended June 30, 2026 compared to $159.8 million operating cash on hand as of June 30, 2025.
Current wording
Interest income for the nine months ended September 30, 2026 was $2.5 million, compared to $5.2 million in the same period in the prior year, reflecting a decrease of $2.7 million. The decrease was attributable to the decline in cash balances which averaged $118.8 million over the nine months ended September 30, 2026 compared to $151.0 million operating cash on hand as of September 30, 2025.
Previous wording
Total Written Premium for the three months ended June 30, 2026 increased by $119.6 million, or 26.6%, compared to the same period in the prior year. This increase was a result of growth in renewal and new business of $67.5 million, or 19.3%, and $52.1 million, or 51.6%, respectively. Within our Insurance Services offering, renewal business increased $48.1 million, or 15.9%, as compared to $41.8 million, or 16.1%, in the prior year period. New business grew $1.6 million, or 1.8%, as compared to $13.2 million, or 17.8%, in the prior year period. Within our MGA offering, renewal business increased $19.4 million, or 41.0%, as compared to $3.5 million, or 8.1%, in the prior year period. New business grew $50.5 million, or 373.5%, as compared to a decrease of $1.9 million, or 12.4%, in the prior year period.
Current wording
Total Written Premium for the three months ended September 30, 2026 increased by $86.5 million, or 18.5%, compared to the same period in the prior year. This increase was a result of growth in renewal and new business of $48.5 million, or 13.4%, and $37.9 million, or 35.9%, respectively. Within our Insurance Services offering, renewal business increased $40.6 million, or 13.0%, as compared to $48.4 million, or 18.3%, in the prior year period. New business grew $8.9 million, or 10.8%, as compared to $7.5 million, or 10.2%, in the prior year period. Within our MGA offering, renewal business increased $7.9 million, or 16.2%, as compared to $2.6 million, or 5.7%, in the prior year period. New business grew $29.1 million, or 121.6%, as compared to $9.1 million, or 61.2%, in the prior year period.
Previous wording
For the three months ended June 30, 2026 and 2025, our consolidated written premium retention was 93% and 89%, respectively. The increase in retention is correlated to the shift in renewal business growth of $67.5 million, or 19.3%, for the three months ended June 30, 2026, compared to growth of $45.4 million, or 14.9%, in the same period of the prior year. This increase in retention was primarily attributable to the continued expansion of our MGA offerings, and the reduced impact of carrier rate decreases relative to prior periods. Premium retention is calculated based on premium dollars rather than policy counts and is therefore influenced by changes in premium rates, coverage levels, and business mix. Excluding the impacts of TWFG MGA FL, MGA premium retention would have been approximately 71%, and consolidated premium retention would have been approximately 88%, reflecting underlying policy retention trends, a higher mix of new business, and moderating rate increases in the current period
Current wording
For the three months ended September 30, 2026 and 2025, our consolidated written premium retention was 88% and 91%, respectively. The decrease in retention is correlated to the shift in renewal business growth of $48.5 million, or 13.4%, for the three months ended September 30, 2026, compared to growth of $51.0 million, or 16.4%, in the same period of the prior year. This decrease in retention was primarily attributable to the continued expansion of our MGA offerings, and the reduced impact of carrier rate decreases relative to prior periods. Premium retention is calculated based on premium dollars rather than policy counts and is therefore influenced by changes in premium rates, coverage levels, and business mix. Excluding the impacts of TWFG MGA FL, MGA premium retention would have been approximately 110%, and consolidated premium retention would have been approximately 92%, reflecting underlying policy retention trends, a higher mix of new business, and moderating rate increases in the current period.
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Previous report — wording carried elsewhere
•TPA fees for the six months ended June 30, 2026 decreased by $0.1 million, or 30.4%, compared to the same period in the prior year. The decrease in TPA fees was due to the decreased volume in claims processed by TWFG MGA.
Previous report — wording carried elsewhere
MGA offering. See “Consolidated Results of Operations—Commission Income” for additional discussions regarding the changes in our commission income.
Previous report — wording carried elsewhere
EBITDA is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.