TWFG, Inc. Class A (TWFG)
NASDAQ:TWFG
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TWFG, Inc. Class A
(NASDAQ:TWFG)
Select Model
Select Model
Rating:66Neutral
Price Target:
$20.00
▲(11.61% Upside)
Action:ReiteratedDate:04/01/26
The score is driven primarily by solid financial performance (growth, cash generation, and conservative leverage) and a constructive earnings outlook with buyback support. These positives are tempered by weak technical trends and a high P/E valuation that leaves less room for execution missteps.
Positive Factors
Revenue Growth
Sustained double‑digit top‑line growth (21.3% in 2025) reflects strong organic demand, effective distribution and successful acquisitions. Over a 2–6 month horizon this underpins revenue visibility, fuels scale benefits and supports continued investment in margin expansion and product reach.
Negative Factors
Low Net Income Conversion
Gap between strong operating margins and weak net margins indicates recurring non‑operating costs, interest/tax impacts or one‑offs that limit bottom‑line durability. If persistent, low net conversion constrains retained earnings, shareholder returns and reduces cushion versus underwriting volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained double‑digit top‑line growth (21.3% in 2025) reflects strong organic demand, effective distribution and successful acquisitions. Over a 2–6 month horizon this underpins revenue visibility, fuels scale benefits and supports continued investment in margin expansion and product reach.
Read all positive factors
TWFG, Inc. Class A (TWFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.01B
Dividend YieldN/A
Average Volume (3M)87.68K
Price to Earnings (P/E)54.3
Beta (1Y)0.34
Revenue Growth18.54%
EPS Growth-67.02%
CountryUS
Employees293
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)0.30
Shares Outstanding15,028,681
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)1.74
P/FCF Ratio8.13
Enterprise Value/Market Cap0.13
Enterprise Value/Revenue0.56
Enterprise Value/Gross Profit1.67
Enterprise Value/Ebitda2.12
Forecast
1Y Price Target
$25.83Price Target Upside44.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.95
Revenue Forecast (FY)$296.24M
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:Mar 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: double-digit top-line and written premium growth, substantial profitability gains, a fortress balance sheet, disciplined accretive M&A and significant investments in technology and AI. Management acknowledged near-term headwinds from a softening rate environment, regional hard-market pockets (notably California wildfire exposure), higher operating and public-company costs, and valuation uncertainty in larger M&A. On balance, positive growth, cash strength, margin expansion (historical) and strategic positioning for AI and scale outweigh the flagged risks and conservatism in guidance.Positive Updates
Strong Full-Year Revenue Growth
Total revenue for full year 2025 increased 21.3% to $247.1 million, driven by double-digit organic growth, retail and MGA performance, and accretive acquisitions.
Negative Updates
Softening Rate Environment and Competitive Shopping
Management noted a moderating/softening rate environment that increases customer shopping and could pressure pricing and contingencies; commentary anticipates some loss-ratio pressure in 2026 versus 2025.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Revenue Growth
Total revenue for full year 2025 increased 21.3% to $247.1 million, driven by double-digit organic growth, retail and MGA performance, and accretive acquisitions.
Read all positive updates
Company Guidance
TWFG guided 2026 total revenues to grow 15%–20% to $285–$300 million, with an adjusted EBITDA margin of 22%–25% and organic revenue growth of 10%–15%, while reiterating expectations for continued double‑digit organic growth, expanding margins and strong free cash flow; management also announced a share repurchase program of up to $50 million. For context, FY2025 total revenue was $247.1 million (up 21.3%), total written premium was $443.4 million (up 22.7%), organic revenue for the year was ~11.6%–11.7%, retention was 92%, adjusted EBITDA was $21.7 million (31.6% margin), adjusted net income was $16.7 million (24.3% margin), net income was $14.4 million (21% margin), and the balance sheet closed with $155.9 million of unrestricted cash, no borrowings on a $50 million revolver and only $4 million of term debt.TWFG, Inc. Class A Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 248.33M | 193.72M | 166.99M | 147.78M |
| Gross Profit | 78.11M | 46.57M | 36.17M | 30.63M |
| EBITDA | 63.09M | 44.33M | 31.13M | 27.05M |
| Net Income | 7.96M | 2.75M | 0.00 | 0.00 |
Balance Sheet | ||||
| Total Assets | 370.91M | 323.43M | 115.44M | 114.15M |
| Cash, Cash Equivalents and Short-Term Investments | 155.93M | 195.77M | 39.30M | 22.33M |
| Total Debt | 11.12M | 10.30M | 51.76M | 13.31M |
| Total Liabilities | 55.59M | 48.14M | 84.39M | 56.37M |
| Stockholders Equity | 83.09M | 73.88M | 31.05M | 57.79M |
Cash Flow | ||||
| Free Cash Flow | 53.15M | 37.28M | 14.51M | 13.48M |
| Operating Cash Flow | 53.50M | 40.48M | 30.15M | 25.75M |
| Investing Cash Flow | -70.38M | -25.05M | -14.65M | -14.50M |
| Financing Cash Flow | -20.55M | 143.43M | -9.70M | -15.26M |
TWFG, Inc. Class A Technical Analysis
Negative
17.92
Price Trends
19.97
Negative
23.85
Negative
26.04
Negative
Market Momentum
-0.47
Negative
42.15
Neutral
47.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TWFG, the sentiment is Negative. The current price of 17.92 is below the 20-day moving average (MA) of 18.66, below the 50-day MA of 19.97, and below the 200-day MA of 26.04, indicating a bearish trend. The MACD of -0.47 indicates Negative momentum. The RSI at 42.15 is Neutral, neither overbought nor oversold. The STOCH value of 47.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $1.01B | 54.27 | 8.79% | ― | 18.54% | -67.02% | |
58 Neutral | $502.43M | -19.26 | 11.25% | 2.47% | 4.39% | 61.61% | |
58 Neutral | $115.58M | 0.95 | 13.52% | ― | 13.16% | ― | |
55 Neutral | $41.02M | 3.50 | 4.33% | ― | 16.79% | ― | |
53 Neutral | $502.43M | 28.40 | 11.25% | 2.47% | 4.39% | 61.61% | |
43 Neutral | $30.14M | -0.21 | -158.66% | ― | 7.56% | -344.04% |
* Financial Sector Average
TWFG
TWFG, Inc. Class A
17.92
-14.49
-44.71%
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2.43%
SLQT
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GOCO
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TWFG, Inc. Class A Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
TWFG Announces Buyback Program Amid Strong 2025 Results
Positive
Feb 25, 2026
TWFG, Inc. reported strong fourth-quarter and full-year 2025 results on February 25, 2026, with quarterly revenue up 33% to $68.8 million and net income rising to $14.4 million, while full-year revenue climbed 21.3% to $247.1 million and net incom...
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.