TWFG, Inc. Files Q2 2024 10-Q Report

TL;DR

**TWFG Q2 10-Q FILED: Financials and operations detailed for period ending June 30, 2024.**

AI Summary

TWFG, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter. Specific financial figures and segment performance are outlined within the report.

Why It Matters

This filing provides investors with a detailed look at TWFG, Inc.'s financial health and operational performance during the second quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: medium — The filing is a standard quarterly report, but the specific financial details and any forward-looking statements within the full report could indicate higher risk.

Key Players & Entities

• TWFG, Inc. (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period
• 20240830 (date) — Date the report was filed

FAQ

Key Financial Figures

• $0.01 — which registered Class A Common Stock, $0.01 par value per share TWFG The Nasdaq S

Filing Documents

• twfg-20240630.htm (10-Q) — 1829KB
• exhibit311certificationofp.htm (EX-31.1) — 10KB
• exhibit312certificationofp.htm (EX-31.2) — 10KB
• exhibit321certificationofp.htm (EX-32.1) — 5KB
• exhibit322certificationofp.htm (EX-32.2) — 5KB
• 0002007596-24-000008.txt ( ) — 7995KB
• twfg-20240630.xsd (EX-101.SCH) — 45KB
• twfg-20240630_cal.xml (EX-101.CAL) — 82KB
• twfg-20240630_def.xml (EX-101.DEF) — 309KB
• twfg-20240630_lab.xml (EX-101.LAB) — 634KB
• twfg-20240630_pre.xml (EX-101.PRE) — 480KB
• twfg-20240630_htm.xml (XML) — 1061KB

- Financial Information

Part I - Financial Information

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 1 Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023 1 Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2024 and 2023 2 Condensed Consolidated Statements of Financial Position as of June 30, 2024 and December 31, 2023 3 Condensed Consolidated Statements of Members' Equity for the three and six months ended June 30, 2024 and 2023 4 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 5 Notes to the Condensed Consolidated Financial Statements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 48

Controls and Procedures

Item 4. Controls and Procedures 48

- Other Information

Part II - Other Information

Legal Proceedings

Item 1. Legal Proceedings 49

Risk Factors

Item 1A. Risk Factors 49

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 49

Other Information

Item 5. Other Information 49

Exhibits

Item 6. Exhibits 50

Signatures

Signatures 52 Table of Contents Cautionary Note Regarding Forward-Looking Statements We have made statements in this Quarterly Report on Form 10-Q that are forward-looking statements. In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue," the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including those factors discussed under the captions entitled "Risk factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our prospectus (the "IPO Prospectus") relating to our Registration Statement on Form S-1, as amended (Registration No. 333-280439), filed with the U.S. Securities and Exchange Commission (the "SEC") pursuant to Rule 424(b) under the Securities Act of 1933, as amended (the "Securities Act"). You should specifically consider the numerous risks outlined under "Risk factors" in the IPO Prospectus. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. We undertake no obligation to publicly

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements TWFG Holding Company, LLC Condensed Consolidated Statements of Operations (Amounts in thousands, except unit and per unit data) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenues Commission income (related party of $ 1,912 and $ 947 for the three months ended and $ 3,021 and $ 1,897 for the six months ended June 30, 2024 and 2023, respectively) $ 48,662 $ 41,771 $ 91,207 $ 78,458 Contingent income 1,258 1,003 2,334 1,988 Fee income (related party of $ 561 and $ 411 for the three months ended and $ 915 and $ 839 for the six months ended June 30, 2024 and 2023, respectively) 2,689 2,208 4,921 4,236 Other income 657 394 1,117 550 Total revenues 53,266 45,376 99,579 85,232 Expenses Commission expense 31,962 30,896 58,405 58,392 Salaries and employee benefits 6,816 3,370 13,070 6,706 Other administrative expenses (related party of $ 382 and $ 99 for the three months ended and $ 783 and $ 92 for the six months ended June 30, 2024 and 2023, respectively) 3,744 2,736 6,874 5,231 Depreciation and amortization 2,968 1,134 5,981 2,195 Total operating expenses 45,490 38,136 84,330 72,524 Operating income 7,776 7,240 15,249 12,708 Interest expense ( 872 ) ( 173 ) ( 1,714 ) ( 258 ) Other non-operating income (expense), net 14 — 12 ( 11 ) Net income from continuing operations 6,918 7,067 13,547 12,439 Net income from discontinued operation, net of tax — — — 834 Net income $ 6,918 $ 7,067 $ 13,547 $ 13,273 Weighted average units used in the computation of net income per unit (see Note 10): Basic 659,439 631,750 659,439 631,750 Diluted 659,439 631,750 659,439 631,750 Net income per unit: Net income from continuing operations per unit - basic $ 10.49 $ 11.19 $ 20.54 $ 19.69 Net income from continuing operations per unit - diluted $ 10.49 $ 11.19 $ 20.54 $ 19.69 Net income from discontinued operation per unit - basic $ — $ — $ — $ 1.32 Net income from

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View this 10-Q filing on SEC EDGAR