Want to see TWFG full AI Analyst Report?
Top Page
TWFG, Inc. Class A
(NASDAQ:TWFG)
Select Model
Select Model
Rating:73Outperform
Price Target:
$34.00
▲(29.38% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by improving financial performance (strong growth and rising margins) and a bullish earnings-call setup (raised guidance and strong Q2 execution). Technicals are supportive but mixed near-term, while valuation is a meaningful constraint due to the high P/E and lack of dividend yield.
Positive Factors
Sustained Revenue and Profitability Growth
Strong organic growth, operating leverage, and higher guidance indicate expanding scale and improving earnings capacity. If execution remains consistent, the profitability ramp can support durable internal funding and strengthen TWFG’s competitive position.
Negative Factors
Weaker Recent Free Cash Flow Conversion
Recent cash conversion has weakened despite positive operating cash flow, limiting the portion of reported earnings available for reinvestment, acquisitions, or capital returns. Continued acquisition spending and distributions could prolong this volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue and Profitability Growth
Strong organic growth, operating leverage, and higher guidance indicate expanding scale and improving earnings capacity. If execution remains consistent, the profitability ramp can support durable internal funding and strengthen TWFG’s competitive position.
Read all positive factors
TWFG, Inc. Class A (TWFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.64B
Dividend YieldN/A
Average Volume (3M)87.68K
Price to Earnings (P/E)50.5
Beta (1Y)0.38
Revenue Growth33.12%
EPS Growth45.43%
CountryUS
Employees400
SectorGeneral
Sector StrengthN/A
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)0.24
Shares Outstanding12,880,333
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$30.17Price Target Upside14.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)1.14
Revenue Forecast (FY)$313.88M
TWFG, Inc. Class A Business Overview & Revenue Model
Company Description
Established in 2001 and based in The Woodlands, Texas, TWFG, Inc. serves as an independent intermediary for a broad spectrum of personal and commercial insurance offerings throughout the United States. A subsidiary of Bunch Family Holdings, LLC, t...
How the Company Makes Money
TWFG primarily makes money by earning commissions and fees tied to insurance policies it places and services for customers. When a customer purchases or renews an insurance policy through a TWFG-affiliated independent agent, the insurance carrier ...
TWFG, Inc. Class A Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
The call showcased substantial top-line growth, strong margin expansion, and notable progress scaling the higher-margin MGA business, supported by raised guidance and solid liquidity. Management acknowledged expense increases tied to acquisitions and technology investments and highlighted timing-related headwinds from MGA Florida takeout runoff and softening personal auto pricing. Contingent income and renewal timing introduce some uncertainty, but upside from an active M&A pipeline and contingency updates exists. Overall, positives (revenue, margins, cash/liquidity, strategic progress) materially outweigh the operational and timing cautions discussed.Positive Updates
Record Top-Line Growth
Total revenues grew 45.1% year-over-year to $87.5 million, driven by strong MGA and Insurance Services performance.
Negative Updates
Rising Operating Expenses from Scale and M&A
Salaries and employee benefits increased 24.1% to $11.8 million; other administrative expenses rose 59% to $8.6 million; depreciation & amortization increased 81.1% to $7.1 million, driven by acquisitions and tech/public-company infrastructure.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Top-Line Growth
Total revenues grew 45.1% year-over-year to $87.5 million, driven by strong MGA and Insurance Services performance.
Read all positive updates
Company Guidance
TWFG raised 2026 guidance to total revenues of $300–$320 million (up from $285–$300M), organic revenue growth of 13%–17% (up from 10%–15%) and adjusted EBITDA margins of 23%–27% (up from 22%–25%). The upgrade is supported by Q2 results — total revenues +45.1% to $87.5M, adjusted EBITDA +75.8% to $26.6M with a 30.4% margin (+530 bps), organic revenue growth of 37%, total written premium +26.6% to $569.9M, consolidated retention 93% (vs. 89% prior year), adjusted net income $20.3M (margin 23.2%), adjusted diluted EPS $0.38 — and strong MGA momentum (commission income +290% to $27.3M, now 35% of revenues). The company also highlights healthy liquidity and capital deployment: H1 operating cash flow $32.5M (+29% YoY), $73.7M unrestricted cash + $19M restricted, $50M revolver fully available, ~$3M term debt, ~ $142.7M total liquidity, and ~$42.9M of $50M buybacks completed (retiring ~15% of pre‑program Class A shares); management noted the near‑term margin boost from MGA Florida takeouts will normalize on renewals and that upside to revenue/margin from contingent income and any incremental M&A is not included in the base guide (Q3 update pending).TWFG, Inc. Class A Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 284.63M | 233.96M | 193.72M | 166.99M | 147.78M |
| Gross Profit | 91.14M | 62.81M | 46.57M | 36.17M | 30.63M |
| EBITDA | 84.28M | 63.09M | 44.33M | 31.13M | 27.05M |
| Net Income | 8.80M | 7.96M | 2.75M | 0.00 | 0.00 |
Balance Sheet | |||||
| Total Assets | 358.35M | 370.91M | 323.43M | 115.44M | 114.15M |
| Cash, Cash Equivalents and Short-Term Investments | 73.75M | 155.93M | 195.77M | 39.30M | 22.33M |
| Total Debt | 7.64M | 11.12M | 10.30M | 51.76M | 13.31M |
| Total Liabilities | 71.33M | 55.59M | 48.14M | 84.39M | 56.37M |
| Stockholders Equity | 46.15M | 83.09M | 73.88M | 31.05M | 57.79M |
Cash Flow | |||||
| Free Cash Flow | 45.00M | 53.15M | 37.28M | 14.51M | 13.48M |
| Operating Cash Flow | 60.78M | 53.50M | 40.48M | 30.15M | 25.75M |
| Investing Cash Flow | -77.00M | -70.38M | -25.05M | -14.65M | -14.50M |
| Financing Cash Flow | -62.03M | -20.55M | 143.43M | -9.70M | -15.26M |
TWFG, Inc. Class A Technical Analysis
Positive
26.28
Price Trends
25.93
Positive
22.54
Positive
23.42
Positive
Market Momentum
0.98
Negative
71.46
Negative
96.64
Negative
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 26.28 is below the 20-day moving average (MA) of 27.85, above the 50-day MA of 25.93, and above the 200-day MA of 23.42, indicating a bullish trend. The MACD of 0.98 indicates Negative momentum. The RSI at 71.46 is Negative, neither overbought nor oversold. The STOCH value of 96.64 is Negative, 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.64B | 50.45 | 12.67% | ― | 33.12% | 45.43% | |
65 Neutral | $614.20M | 27.98 | 13.01% | 2.73% | -4.12% | -20.24% | |
59 Neutral | $39.40M | -1.45 | 3.23% | ― | -8.37% | -220.33% | |
59 Neutral | $136.85M | 7.85 | 7.83% | ― | 6.02% | -144.93% | |
56 Neutral | $614.20M | 27.98 | 13.01% | 2.97% | -4.12% | -20.24% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
TWFG
TWFG, Inc. Class A
31.15
3.18
11.37%
CRD.A
Crawford & Company A
13.19
2.33
21.41%
EHTH
Ehealth
1.20
-2.69
-69.15%
CRD.B
Crawford & Company B
11.78
1.18
11.09%
SLQT
SelectQuote
0.55
-1.86
-77.26%
TWFG, Inc. Class A Corporate Events
Business Operations and StrategyPrivate Placements and Financing
TWFG Expands and Extends Revolving Credit Facility
Positive
Aug 13, 2026
On August 12, 2026, TWFG, Inc. entered into an amended and restated credit agreement that expands its revolving credit facility to $125 million and extends the facility’s maturity to August 12, 2031. The agreement, led by PNC Bank as adminis...
Business Operations and StrategyExecutive/Board Changes
TWFG, Inc. Consolidates Financial Leadership After Officer Resignation
Neutral
Jul 24, 2026
On July 21, 2026, TWFG, Inc. announced that Chief Accounting Officer Eugene N. Padgett resigned effective the same day, with the company stating his departure did not stem from any disagreement over accounting practices, financial reporting, or op...
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.