TWFGTWFG +2.89%21 Gross Margin % is 33.34% as of Mar. 2026, which is 46% above its 10-year median of 22.85. GuruFocus rates TWFG with a GF Score™ of 21/100. Among 60 Insurance companies, TWFG ranks worse than 65% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. TWFG's Gross Profit for the
three
months ended in Mar. 2026 was $23.5 Mil. TWFG's Revenue for the
three
months ended in Mar. 2026 was $70.4 Mil. Therefore, TWFG's Gross Margin % for the quarter that ended in Mar. 2026 was 33.34%.
The historical rank and industry rank for TWFG's Gross Margin % or its related term are showing as below:
TWFG'
s Gross Margin % Range Over the Past 10 Years
Min: 20.73 Med: 22.85 Max: 29.49
Current: 29.49
During the past 4 years, the highestGross Margin % of TWFG was 29.49%. The lowest was 20.73%. And the median was 22.85%.
TWFG's Gross Margin % is ranked worse than 65% of 60
companies
in the Insurance industry
Industry Median: 42.375
vs TWFG: 29.49
TWFG had a gross margin of 33.34% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for TWFG was 0.00% per year.
TWFG (NAS:TWFG) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
TWFG had a gross margin of 33.34% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
TWFG Gross Margin % Related Terms
TWFG Gross Margin % Historical Data
* Premium members only.
The historical data trend for TWFG's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TWFG vs AIFU, SLQT, QDMI: Gross Margin % Comparison
For the Insurance Brokers subindustry, TWFG's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
TWFG Gross Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, TWFG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where TWFG's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
TWFG (TWFG) has a Gross Margin % of 33.34% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on TWFG and its competitors. This is 46% above median its historical median of 22.85. Over the past decade, TWFG's Gross Margin % has ranged from 20.73 to 29.49. According to the industry distribution chart, TWFG ranks #39 out of 60 companies in the Insurance industry, placing it in the top 65%.
Is TWFG's Gross Margin % too high?
TWFG's current Gross Margin % of 33.34% is 46% above median its 10-year median of 22.85. Over the past 10 years, this metric has ranged from a low of 20.73 to a high of 29.49. The Insurance industry median Gross Margin % is 42.38. TWFG's value of 33.34% is 21.3% below this industry median. Based on the distribution chart, TWFG ranks #39 out of 60 companies in the Insurance industry, which is below the industry midpoint. Overall, TWFG has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does TWFG's Gross Margin % compare to AIFU and SLQT?
According to the Insurance industry distribution chart, TWFG ranks #39 out of 60 companies for Gross Margin %. This places TWFG in the lower half of its industry. The industry median Gross Margin % is 42.38. TWFG's value of 33.34% is 21.3% below this benchmark. Historically, TWFG's own Gross Margin % has ranged from 20.73 to 29.49 over the past decade. While the company's 10-year median is 22.85 vs. the industry median of 42.38, TWFG has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Insurance company?
The median Gross Margin % among Insurance companies is 42.38, based on 60 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TWFG's current Gross Margin % of 33.34% is 21.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on TWFG and its competitors. For the Insurance industry, the median Gross Margin % is 42.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TWFG's current Gross Margin % is 33.34%, which is 46% above median its own 10-year median of 22.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TWFG stock overvalued right now?
TWFG (TWFG) has a current Gross Margin % of 33.34%. The current Gross Margin % is 33.34%, which is 46% above median its 10-year median of 22.85 and 21.3% below the Insurance industry median of 42.38. TWFG's overall GF Score™ is 21/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For TWFG (TWFG), the current Gross Margin % is 33.34% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
TWFG Inc is an independent distribution platform for personal and commercial insurance in the United States. It offers all lines of insurance, multiple distribution contract options, M&A services, proprietary virtual assistants, proprietary technology, proprietary premium financing, unlimited continuing education, recognition programs, co-op funding, marketing support and overall lower costs to operate.
21GF Score
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