TWFG, Inc.TWFG

TWFG, Inc. Revenue Disclosure

10-KFiled Mar 10, 20262 min read
REVENUES
The following table presents the disaggregation of revenues by major source (in thousands):
Years Ended December 31,
202520242023
Commission income$220,968 $183,158 $158,679 
Contingent income13,111 8,722 4,085 
Fee income
Policy fees4,392 3,538 2,100 
Branch fees5,276 4,736 2,982 
License fees2,719 1,895 2,695 
TPA fees605 393 534 
Other income1,441 1,318 968 
Total revenues
$248,512 $203,760 $172,043 
The Company operates through two primary offerings, which are Insurance Services and TWFG MGA. The following table presents the disaggregation of revenues by offerings (in thousands):
Years Ended December 31,
202520242023
Insurance Services
Agency-in-a-box$152,831 $135,166 $132,350 
Corporate Branches43,230 33,367 6,873 
TWFG MGA50,763 33,719 31,184 
Other1,688 1,508 1,636 
Total revenues
$248,512 $203,760 $172,043 
As of December 31, 2025 and December 31, 2024, the Commissions receivable reported in the Consolidated Balance Sheets had a balance of $37.3 million and $27.1 million, respectively, and had an opening balance of $19.1 million as of January 1, 2024. The change in the Commission receivable balance was due to increased revenue for the year ended December 31, 2025. The Company has no contract liabilities as of December 31, 2025, December 31, 2024, and January 1, 2024.
The following table provides a summary of changes in the Company’s allowance for expected credit losses (in thousands):
Years Ended December 31,
20252024
Beginning of period$415 $312 
Write-offs— — 
Increase in provision473 103 
End of period$888 $415 
The Progressive Corporation accounted for 11% and 13% of total revenues for the year ended December 31, 2025 and December 31, 2024, respectively. The Travelers Companies, Inc. accounted for 10% of total revenue for the year ended December 31, 2023. No other customers individually accounted for 10% or more of the Company’s total revenues for the years ended December 31, 2025, 2024, and 2023.

Historical Timeline

Fiscal YearFiled
2025Mar 10, 2026Showing above
2024Mar 27, 2025

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

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