SEGMENT

The Company operates as a single operating and reportable segment, which reflects its business as an independent distribution platform for personal and commercial insurance in the U.S. All business activities and operations are reported in the one reportable segment, which applies accounting policies consistent with the consolidated entity. The Company’s Chief Executive Office (“CEO”) is the chief operating decision maker (“CODM”) and, manages the business on a consolidated basis for purposes of evaluating financial performance and allocating resources.

Revenues are generated primarily from the placement of insurance contracts between insurance carriers and insureds. The CODM evaluates performance and allocates resources based on consolidated net income, which is also the measure used in the Company’s annual operating budget, strategic planning, and management incentive compensation process. Total segment assets are represented by total consolidated assets as reported on the Consolidated Balance Sheets. See Note 3, Revenues, for entity-wide disclosures related to products and major customers, and Note 4 Intangibles Assets and Acquisitions, for information on capital expenditures on an entity wide basis.

The following table provides a summary of the segment revenue, segment profit or loss, and significant segment expenses (in thousands):


	Years Ended December 31,
	2025		2024		2023
Total revenues	$	248,512	$	203,760	$	172,043
Less:
Commission expense	133,518		118,086		116,847
Salaries and employee benefits	37,636		29,064		13,970
Technology expense	5,985		4,246		2,483
Consultant and other professional fees	3,783		3,527		1,497
Depreciation and amortization	18,353		12,020		4,862
Other segment items (1)	12,252		8,892		6,993
Interest expense	287		2,223		1,003
Interest income	(6,607)		(4,376)		(891)
Other non-operating (income) expense, net	(1,140)		(9)		17
Income tax expense	3,279		1,495		—
Net income from continuing operations	41,166		28,592		25,262
Net Income from discontinued operation, net of tax	—		—		834
Segment and consolidated net income	$	41,166	$	28,592	$	26,096

(1)Other segment items included in segment net income include marketing expenses, survey expenses, office expenses, and certain administrative expenses.

Historical Timeline

Fiscal Year	Filed
2025	Mar 10, 2026	Showing above
2024	Mar 27, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

TWFG, Inc. Segments Disclosure

Historical Timeline

About Segments Disclosures

Other Available Disclosures