10-Q: Brown & Brown Q1 2026 Financial Results

Brown & Brown reports strong Q1 2026 growth with $1.9 billion in revenue, driven by acquisitions and increased contingent commissions.

Summary

• Total revenue for Q1 2026 reached $1.901 billion, a 35.4% increase compared to $1.404 billion in Q1 2025.
• Net income attributable to the Company was $426 million, up 28.7% from $331 million in the prior year period.
• Diluted net income per share was $1.06, compared to $1.15 in Q1 2025.
• Organic Revenue growth rate was flat (0.0%), while Organic Revenue with Contingents growth rate was 2.2%.
• The company completed eight acquisitions during the first quarter of 2026.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a solid performance, demonstrating strong revenue growth and successful integration of acquisitions, despite flat organic growth.

Positives

• Significant revenue growth of 35.4% year-over-year.
• Profit-sharing contingent commissions increased by 125.6% to $97 million.
• EBITDAC-Adjusted increased 36.6% to $731 million.
• Successful integration of recent acquisitions contributing to top-line growth.
• Strong liquidity position with $1.003 billion in cash and cash equivalents.

Negatives

• Organic Revenue growth rate was flat at 0.0%.
• Interest expense rose 115.2% to $99 million due to higher debt levels.
• Amortization expense increased 118.9% to $116 million.
• Diluted EPS decreased to $1.06 from $1.15 in the prior year period.

Risks

• Integration risks associated with the acquisition of RSC Topco, Inc.
• Increased indebtedness resulting from financing the RSC transaction.
• Potential for cybersecurity attacks or IT interruptions.
• Sensitivity to fluctuations in commission revenue and premium rate levels.
• Exposure to adverse economic conditions and inflationary pressures.
• Regulatory changes impacting compensation arrangements or business practices.

Future Outlook

The company continues to focus on new business, customer retention, and strategic acquisitions. It expects to maintain a conservative balance sheet and believes existing cash and credit facilities are sufficient for liquidity needs.

Management Comments

• Management emphasizes a decentralized sales and service culture to drive accountability.
• The company views Organic Revenue and EBITDAC-Adjusted as key performance indicators for incentive compensation.

Industry Context

StockSavvy.ai notes that Brown & Brown's performance reflects broader insurance industry trends of consolidation and reliance on inorganic growth through M&A, while facing headwinds from slowing rate increases in certain property lines.

Comparison to Industry Standards

• Growth metrics are consistent with large-scale insurance intermediaries focusing on M&A-driven expansion.
• The company's use of EBITDAC-Adjusted aligns with standard reporting practices among major insurance brokers like Marsh & McLennan and Aon.

Corporate Governance

Legal Proceedings

• The company is involved in various ordinary course litigation matters, including a pending case involving a competitor and former employees.

Stakeholder Impact

• Shareholders benefit from continued dividend payments and share repurchases.
• Employees are subject to new performance-based stock incentive plans.

Next Steps

• Payment of quarterly cash dividend on May 20, 2026.
• Continued integration of acquired businesses.
• Ongoing monitoring of litigation-related impacts.

Key Dates

Recommendation

The company shows strong top-line growth but faces flat organic growth and increased debt, suggesting a balanced outlook for investors.

Keywords

insurance brokerage, Brown & Brown, Q1 2026 earnings, insurance programs, wholesale brokerage, organic growth, acquisitions