Revenue
$249Mlow FY2022
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TWFG, TWFG Inc.
Insurance Brokers financial
We are We are a leading, high-growth, independent distribution platform for personal and commercial insurance in the U.S.
We provide TWFG Agencies with resources, technology, training and insurance carrier access to succeed in an increasingly complex market.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
$249M
+22.0% YoY · 17% 3-yr CAGR
Vital signs · TTM, with 4-yr average
Revenue $268M 4-yr avg $195M
Net margin 3.1% 4-yr avg 1.1%
Revenue $73M +35.3% vs yr-ago qtr
Operating margin 17.0% yr-ago 10.6%
Net income $13M yr-ago $7M
Net margin 18.0% yr-ago 12.7%
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What moves the needle
- Commissions on the premiums it places, and organic growth. What decides it: insurance prices in the market, since it earns a slice of them; new business won and kept; and a capital-light fee stream that carries none of the underwriting risk of the insurers it sells for. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Operating margin has been modest for a fee business (median 15%). It earns this on little capital, so return on equity has run near 4%, the leverage of a model that needs almost no plant to grow. A high return that does not fade can mark a moat, but whether the commissions keep renewing as rates turn is what the 10-K settles, not the multiple.
Every line is arithmetic on the company's filings, shown in full in the sections below.
The record
Ten years of arithmetic, read across the cycle.
The record, 2022–2025
realized figures from each filing · older years to the left| 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMMar 2026 | |
|---|---|---|---|---|---|
| Income statement | |||||
| $154M | $172M | $204M | $249M | $268M | RevenueRevenue |
| 15.4% | 14.8% | 13.7% | 14.9% | 16.3% | Operating marginOp. mgn |
| 0.0% | 0.0% | 1.3% | 3.2% | 3.1% | Net marginNet mgn |
| $0 | $0 | $3M | $8M | $8M | Net incomeNet inc. |
| — | — | 35% | 29% | 31% | Effective tax rateTax rate |
| Cash flow & returns | |||||
| $26M | $30M | $37M | $53M | $60M | Owner earningsOwner earn. |
| — | 0% | 4% | 10% | 12% | Return on equityROE |
| — | 0% | 4% | 10% | 12% | Retained to equityRetained/eq |
| Balance sheet | |||||
| — | $115M | $323M | $372M | $371M | Total assetsAssets |
| $22M | $39M | $196M | $156M | $125M | Cash & investmentsCash+inv |
| — | $31M | $74M | $83M | $69M | Shareholders’ equityEquity |
| Per share | |||||
| — | — | 15.0M | 15.1M | 14.9M | Shares out (diluted)Shares |
| — | — | $13.60 | $16.46 | $17.96 | Revenue / shareRev/sh |
| — | — | $0.18 | $0.53 | $0.56 | EPS (diluted)EPS |
| — | — | $2.49 | $3.52 | $4.02 | Owner earnings / shareOE/sh |
| — | — | $4.93 | $5.52 | $4.64 | Book value / shareBVPS |
Per-share growththe realized rate an owner's share compounded
| 3-yr | 5-yr | |
|---|---|---|
| Revenue / share | +21.0%/yr (1-yr) | +21.0%/yr (1-yr) |
| Owner earnings / share | +41.5%/yr (1-yr) | +41.5%/yr (1-yr) |
| EPS | +187.8%/yr (1-yr) | +187.8%/yr (1-yr) |
| Capital spending / share | −89.0%/yr (1-yr) | −89.0%/yr (1-yr) |
| Book value / share | +12.0%/yr (1-yr) | +12.0%/yr (1-yr) |
The record, charted
FY2022–2025Each measure over its full record; the current point and the worst year marked.
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 10-K · source on SEC EDGAR →
Is it a good business?
- Operating margin 14.9%Modest fee marginOperating income $37M ÷ revenue $249MIndustry peers: median 11%
What this means
The heart of a insurance broker: how much of each fee dollar survives the cost of running the business. Commissions are a slice of the premiums it places, earned without taking the underwriting risk itself, so it is a capital-light fee stream that rises with new business, retention and the price of insurance. A high margin held for years, through a market it does not control, is the operational mark of a real franchise.
- Net margin 3.2%SlimNet income $8M ÷ revenue $249M
What this means
What reaches the owner after tax and interest. For a capital-light fee business this should be a wide share of revenue; when it is thin despite a high operating margin, debt taken on for acquisitions is usually the reason, so read it next to the balance sheet.
- Return on equity 10%Below the cost of equityNet income $8M ÷ equity $83MIndustry peers: median 26%
What this means
Because the business ties up little capital, a healthy fee stream throws off a high return on the equity behind it. Read it with the buyback record: returning capital lifts this ratio honestly, but heavy debt taken to do so can flatter it.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
In its own filing A competitive risk, new this year
Its FY2025 10-K names artificial intelligence as a competitive threat, in language that was not in the prior year's filing.
“In addition, our competitors may have greater financial, technical and personnel resources that allow them to enjoy technological advantages and that may in the future allow them to implement Artificial Intelligence ("AI") or other new or emerging technologies prior to us.”
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of the latest quarter, Mar 31, 2026Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assets$201M
- Cash & short-term investments$125M
- Receivables$8M
- Other current assets$68M
Current liabilities$59M
- Debt due within a year$2M
- Accounts payable$2M
- Other current liabilities$55M
Current ratio3.42×all current assets ÷ what's due · Graham looked for 2×
Quick ratio3.42×stricter: inventory excluded
Cash ratio2.12×strictest: cash alone against what's due
Working capital$143Mthe cushion left after near-term bills
Debt due this year vs. cash$2M due · $125M cash
covered by cash on hand, no refinancing forced · both figures from the Mar 31, 2026 balance sheet
Revenue, latest quarter vs. a year ago+35.3%the freshest read on whether the business is still growing
Current ratio, recent quarters1.8× → 3.4×
Deeper floors
Tangible book value($92M)equity stripped of goodwill & intangibles
Net current asset value$137MGraham's net-net: current assets less all liabilities
Debt incl. operating leases$8M$4M of it operating leases
From the company's latest filing.
Management, ownership & pay
read the proxy →From the proxy: how much of the business the people running it own, and how they are paid.
- Insider ownership15.4%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
- Stock-based compensation$5M
The slice of the business handed to employees in shares this year, 2% of revenue, equal to 12% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.
What an owner would ask, FY2025
read the 10-K →- Which reported numbers are a judgment call?Management names Revenue recognition, Income taxes, Contingencies as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →
The questions the record and the charts do not answer on their own; each carries the figure and the place to look.
Peers, Insurance Brokers
The same industry, side by side on fee margins. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Op. margin | Net margin | ROE |
|---|---|---|---|---|
| BWINThe Baldwin Insurance Group Inc. | $1.5B | -3.2% | -4.3% | -6% |
| CRVLCorVel Corp. | $959M | 11.2% | 8.8% | 26% |
| ARXAccelerant Holdings Class A | $913M | -8.3% | -14.2% | -204% |
| HGTYHagerty Inc. | $678M | 4.0% | 7.2% | 52% |
| LIFEEthos Technologies Inc. | $388M | 18.8% | 18.4% | — |
| GSHDGoosehead Insurance | $365M | 17.0% | 3.6% | 51% |
| TWFGTWFG Inc. | $249M | 14.8% | 0.7% | 4% |
| NPNeptune Insurance Holdings Inc. | $160M | 53.5% | 23.4% | — |
| Group median | — | 13.0% | 5.4% | 15% |
The price
What a price has to assume.
What the price implies
reverse-DCFType today's close and see the owner-earnings growth you'd have to believe to justify it, beside what TWFG Inc. has delivered.
TWFG Inc.’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.
$
Through the cycle, TWFG Inc. earns about $44M on its 17.8% median owner-earnings margin. This year’s 21.4% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.
Base
—
The assumptions
9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.
Enter a price above to run it.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Implied by the price—
Owner-earnings growth · ’22→’25+18%/yr
Owner-earnings growth · ’22→’25+18%/yr
Owner-earnings yield—
What a growth belief costs, in multiples
The growth each return requires, at your price
P/E (3-yr earnings ’23–’25)—
P/B—
Graham’s price gate—
Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.
Against a high-grade bond: Graham’s yardstick bond yield%
Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.
Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.
Owner-earnings yield—
High-grade bond yield—
Margin over the bond—
Free cash flow $60M on 15M shares outstanding (a weighted basic average, the only count this filer tags); net cash $121M. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. Capex ($633K) runs well above depreciation ($21M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $60M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.
Cite: Owner Scorecard, "TWFG Inc. (TWFG), the owner's record," https://ownerscorecard.com/c/TWFG, data as of 2026-07-09.
Manual order: ← TW its page in the Manual TWI →
Industry order: ← RYAN the Insurance Brokers chapter WDH →