TWFG, Inc. Class A (TWFG)
NASDAQ:TWFG
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TWFG, Inc. Class A
(NASDAQ:TWFG)
Select Model
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Rating:68Neutral
Price Target:
$20.00
▲(6.50% Upside)
Action:Downgraded
Date:05/29/26
The score is primarily driven by strengthening financial performance (higher margins, growing cash flows, and currently low leverage) and a supportive earnings outlook with reaffirmed growth and margin guidance. These positives are tempered by weak technicals (price below key moving averages with negative MACD) and a relatively high P/E without a dividend, which reduces valuation support.
Positive Factors
Robust revenue growth (organic + acquisitions)
Sustained double-digit top-line growth driven by both organic revenue (+10.1% organic in Q1) and targeted acquisitions increases scale and market reach. This growth supports underwriting leverage, funds tech and M&A strategy, and underpins management's reaffirmed FY26 guidance, making revenue expansion durable over the next several quarters.
Negative Factors
Reliance on acquisitions for retention and growth
A material portion of headline retention and revenue gains derive from acquired books, which can mask weaker organic retention. Continued reliance on M&A raises integration risk, contingent liabilities and creates variability in future organic growth rates; sustaining long-term performance requires improving core retention and organic sales.
Read all positive and negative factors
Positive Factors
Negative Factors
Robust revenue growth (organic + acquisitions)
Sustained double-digit top-line growth driven by both organic revenue (+10.1% organic in Q1) and targeted acquisitions increases scale and market reach. This growth supports underwriting leverage, funds tech and M&A strategy, and underpins management's reaffirmed FY26 guidance, making revenue expansion durable over the next several quarters.
Read all positive factors
TWFG, Inc. Class A (TWFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.03B
Dividend YieldN/A
Average Volume (3M)87.68K
Price to Earnings (P/E)33.7
Beta (1Y)0.37
Revenue Growth24.76%
EPS Growth-27.04%
CountryUS
Employees293
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)0.56
Shares Outstanding12,997,112
10 Day Avg. Volume73,283
30 Day Avg. Volume87,679
Financial Highlights & Ratios
PEG Ratio0.30
Price to Book (P/B)5.20
Price to Sales (P/S)1.85
P/FCF Ratio8.13
Enterprise Value/Market Cap0.12
Enterprise Value/Revenue0.50
Enterprise Value/Gross Profit1.70
Enterprise Value/Ebitda1.75
Forecast
1Y Price Target
$25.00Price Target Upside33.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)1.01
Revenue Forecast (FY)$299.79M
TWFG, Inc. Class A Business Overview & Revenue Model
Company Description
TWFG, Inc. operates an independent distribution platform for personal and commercial insurance products in the United States. Its personal and commercial insurance products include auto, home, renters, life, health, motorcycle, umbrella, boat, rec...
How the Company Makes Money
null...
TWFG, Inc. Class A Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Sep 01, 2026
Earnings Call Sentiment Positive
The call highlighted strong top-line and bottom-line performance (35.3% revenue growth, 23.5% written premium growth, 73.9% adjusted EBITDA growth and 650 bps margin expansion), healthy cash and balance sheet metrics, strategic acquisitions and sizeable technology/AI investments. Management acknowledged market softening, temporary margin tailwinds from Florida takeouts that will normalize, elevated operating expenses tied to M&A and technology, and some uncertainty around contingents and AI cost realization. On balance, the positives (robust growth, margin expansion, cash generation, disciplined capital allocation and strategic investments) materially outweigh the transitory and manageable challenges discussed.Positive Updates
Strong Revenue Growth
Total revenues rose 35.3% year-over-year to $72.8 million, driven by organic growth and acquisitions.
Negative Updates
Softening Market and Pricing Pressure
Management acknowledged a softening market environment with moderating pricing trends and property/auto rate pressure (particularly in Florida), creating headwinds even as new business and capacity improve.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Total revenues rose 35.3% year-over-year to $72.8 million, driven by organic growth and acquisitions.
Read all positive updates
Company Guidance
TWFG reaffirmed full‑year 2026 guidance calling for total revenues to grow 15–20% to $285–$300 million, organic revenue growth of 10–15%, and adjusted EBITDA margins of 22–25%. Management cited Q1 results that support the outlook: total revenues up 35.3% to $72.8M, written premiums +23.5% to $458.2M, organic revenues $54.3M (organic growth 10.1%), consolidated retention 92% (underlying ~88%), commission income $67.1M, adjusted EBITDA $21.2M (margin 29.1%, +650 bps), adjusted net income $16.2M (margin 22.2%), net income $13.1M (margin 18%), operating cash flow $22.7M, adjusted free cash flow $15.2M, $124.8M in unrestricted cash, an undrawn $50M revolver, $3.5M term debt, and $40M of $50M buybacks executed (≈$10M remaining). Management also warned that near‑term MGA/Florida takeout economics provided incremental margin that will decline as policies renew, but expects structural Q2 tailwinds (renewals and voluntary new business) and continued M&A and technology investments to support the reaffirmed guidance.TWFG, Inc. Class A Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
77
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 255.00M | 233.96M | 193.72M | 166.99M | 147.78M |
| Gross Profit | 74.49M | 62.81M | 46.57M | 36.17M | 30.63M |
| EBITDA | 72.58M | 63.09M | 44.33M | 31.13M | 27.05M |
| Net Income | 8.38M | 7.96M | 2.75M | 0.00 | 0.00 |
Balance Sheet | |||||
| Total Assets | 371.18M | 370.91M | 323.43M | 115.44M | 114.15M |
| Cash, Cash Equivalents and Short-Term Investments | 124.84M | 155.93M | 195.77M | 39.30M | 22.33M |
| Total Debt | 7.56M | 11.12M | 10.30M | 51.76M | 13.31M |
| Total Liabilities | 64.74M | 55.59M | 48.14M | 84.39M | 56.37M |
| Stockholders Equity | 69.18M | 83.09M | 73.88M | 31.05M | 57.79M |
Cash Flow | |||||
| Free Cash Flow | 45.26M | 53.15M | 37.28M | 14.51M | 13.48M |
| Operating Cash Flow | 60.58M | 53.50M | 40.48M | 30.15M | 25.75M |
| Investing Cash Flow | -87.55M | -70.38M | -25.05M | -14.65M | -14.50M |
| Financing Cash Flow | -37.65M | -20.55M | 143.43M | -9.70M | -15.26M |
TWFG, Inc. Class A Technical Analysis
Positive
18.78
Price Trends
18.82
Positive
20.52
Negative
23.76
Negative
Market Momentum
-0.03
Negative
52.45
Neutral
51.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TWFG, the sentiment is Positive. The current price of 18.78 is below the 20-day moving average (MA) of 18.83, below the 50-day MA of 18.82, and below the 200-day MA of 23.76, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 52.45 is Neutral, neither overbought nor oversold. The STOCH value of 51.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TWFG.
TWFG, Inc. Class A Risk Analysis
TWFG, Inc. Class A disclosed 78 risk factors in its most recent earnings report. TWFG, Inc. Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TWFG, Inc. Class A Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.03B | 33.71 | 10.80% | ― | 24.76% | -27.04% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $181.64M | 2.08 | 15.28% | ― | 10.29% | ― | |
59 Neutral | $49.20M | 1.43 | 3.57% | ― | -4.28% | -1.93% | |
55 Neutral | $516.15M | 29.81 | 10.01% | 2.47% | -3.23% | -41.71% | |
53 Neutral | $516.15M | 29.81 | 10.01% | 2.47% | -3.23% | -41.71% | |
40 Underperform | $21.71M | -0.04 | -135.15% | ― | -81.69% | -9884.70% |
* Financial Sector Average
TWFG
TWFG, Inc. Class A
19.10
-16.06
-45.68%
CRD.A
Crawford & Company A
10.92
0.83
8.22%
EHTH
Ehealth
1.55
-2.85
-64.77%
CRD.B
Crawford & Company B
10.07
0.52
5.49%
SLQT
SelectQuote
1.03
-1.16
-52.97%
GOCO
GoHealth
0.74
-5.12
-87.35%
TWFG, Inc. Class A Corporate Events
Executive/Board ChangesShareholder Meetings
TWFG Stockholders Approve Directors and Auditor at Meeting
Positive
May 28, 2026
TWFG, Inc. held its 2026 Annual Meeting of Stockholders on May 27, 2026, with approximately 85.15% of total voting power represented in person or by proxy across its Class A, Class B and high‑vote Class C shares. Stockholders elected six dir...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.