TWFG Reports Strong Q3 2026 Financial Results
News related to:TWFG, Inc · 3 min read
THE WOODLANDS, Texas, Nov. 04, 2026 /CourierPR/ -- TWFG, Inc., a high-growth insurance distribution company, reported strong financial results for the third quarter of 2026. Total revenues for the quarter increased by 24.6% to $79.9 million, compared to $64.1 million in the same period of the prior year. Commission income also saw a significant rise, growing by 25.9% to $73.4 million, from $58.3 million in the previous year.
The company's net income for the quarter was $9.0 million, marking a decrease from the $9.6 million reported in the prior year. However, the net income margin improved to 11.3%, up from 15.0% in the same period last year. Adjusted diluted earnings per share for the quarter stood at $0.09, while adjusted earnings per share was $0.28.
Total written premium for the quarter increased by 18.5% to $554.2 million, compared to $467.7 million in the prior year. This growth was primarily driven by volume rather than rate increases, reflecting the moderating rate environment. The company noted that the growth was supported by organic and inorganic growth across its Agency-in-a-Box, Corporate Stores, and MGA operations.
Organic revenue, which excludes contingent income, non-policy fee income, other income, and revenue from recently acquired businesses, grew by 16.6% to $68.7 million, compared to $58.9 million in the prior year. This growth was attributed to increased renewal and new business growth across all offerings.
Commission expenses increased by 20.9% to $41.9 million, growing approximately 500 basis points slower than commission income. This was mainly due to a favorable shift towards higher commission-rate business and lower commission expense associated with corporate store acquisitions. Salaries and employee benefits increased by 19.3% to $11.8 million, driven by incremental headcount associated with the company's continued acquisition strategy. Other administrative expenses rose by 85.8% to $9.7 million, primarily due to increased professional and legal fees related to capital markets and credit facility expansion, as well as continued investments to support the company's growth initiatives.
Adjusted net income for the quarter increased by 16.3% to $15.1 million, with an adjusted net income margin of 18.9%, compared to 20.2% in the prior year. Adjusted EBITDA grew by 15.0% to $19.5 million, supported by the higher-margin profile of MGA operations and contributions from recent acquisitions. The adjusted EBITDA margin was 24.4%, down from 26.5% in the third quarter of 2025.
Cash flow from operating activities was $10.6 million, compared to $15.0 million in the same period of the prior year. Adjusted free cash flow was $7.5 million, down from $12.3 million in the prior year, primarily driven by working capital impacts, including higher commission receivables and lower commission payables and other liabilities. These impacts, along with lower net income, were partially offset by higher amortization.
As of September 30, 2026, the company had unrestricted cash and cash equivalents of $77.8 million. It had full unused capacity on its revolving credit facility of $125.0 million and a total outstanding term notes payable balance of $2.5 million.
During the third quarter, TWFG Insurance Services completed the branch conversion acquisition of Select Insurance Solutions, Inc. This transaction, along with other corporate store and MGA acquisitions, including Loften Wells, Fortress Insurance Services, and APIA, further expanded the company's operations.
Based on year-to-date performance and current business trends, the company updated its full-year 2026 guidance, reflecting stronger-than-expected performance across core businesses and subsequent acquisitions.