Tue, May 13, 8:49 PM (67 days ago)
**TWFG, Inc. (TWFG) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $53.8M (up 16.6% YoY), driven by a 14.7% increase in commission income and growth in fee and contingent income. - **Profit Margins:** Net income margin was 12.7%, with an adjusted net income margin of 17.1%. - **Cash Flow:** Operating cash flow was $15.6M, with adjusted free cash flow at $13.6M. - **Earnings:** Earnings per share (EPS) was $0.09, with adjusted diluted EPS at $0.16. - **Debt:** Total debt was $7.0M, with $2.5M due within the next 12 months. **Key Metrics & Trends:** - **Total Written Premium:** $371M (up 15.5% YoY), with growth in both new and renewal business. - **Organic Revenue Growth:** 14.3%, reflecting underlying business growth and healthy economic conditions. - **Adjusted EBITDA Margin:** 22.6%, indicating strong operating profitability. **Uncertainties & Future Operations:** - **Market Risks:** Exposure to cyclical insurance market conditions and interest rate fluctuations. - **Growth Strategy:** Continued focus on organic growth, acquisitions, and strategic partnerships. - **Liquidity:** Sufficient financial resources to meet business requirements, with access to credit facilities and potential capital markets. **Notable Changes:** - **Interest Expense:** Decreased by 90.14% due to the repayment of the revolving facility. - **Income Tax Expense:** $0.7M, reflecting the company's taxable status post-IPO. - **Stock-Based Compensation:** $1.2M, related to equity awards under the 2024 Incentive Plan. **Outlook:** - TWFG expects to maintain its growth trajectory, driven by its unique agency model and strategic initiatives. - The company remains focused on expanding its book of business, enhancing its technology platform, and pursuing accretive acquisitions.