TWFG stock falls as Q4 earnings miss estimates despite revenue beat

Published 20/03/2025, 16:08
TWFG stock falls as Q4 earnings miss estimates despite revenue beat

THE WOODLANDS, Texas - TWFG , Inc. (NASDAQ:TWFG), a high-growth insurance distribution company, reported fourth quarter earnings that fell short of expectations, despite beating revenue estimates. The company’s stock dropped 5% following the announcement.

For the fourth quarter ended December 31, 2024, TWFG reported earnings per share of $0.11. Revenue came in at $51.74 million, surpassing expectations and representing a 30.8% increase from $39.6 million in the same quarter last year.

The company saw strong growth across key metrics, with total written premium rising 20% YoY to $361.4 million. Organic revenue growth rate, a key measure of the company’s performance, stood at 20.5% for the quarter.

"Our fourth quarter results demonstrate the continued success of our agents, carriers, employees, and business model with total revenues increasing by 30.8% over the prior year period and Adjusted EBITDA increasing by 91.7%," said Gordy Bunch, Founder, Chairman, and CEO of TWFG.

Adjusted EBITDA for the quarter increased 91.7% to $13.8 million, with adjusted EBITDA margin expanding to 26.8% from 18.3% in the prior year period.

Looking ahead, TWFG provided guidance for the full year 2025, projecting organic revenue growth rate between 11% and 16%, and adjusted EBITDA margin in the range of 19% to 21%. The company expects total revenues to be between $235 million and $250 million.

Despite the positive revenue growth and outlook, the stock’s decline suggests investors may have been focusing on potential concerns about the earnings miss, profitability, and margin growth amid the company’s rapid expansion.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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