Core Insights - The Baldwin Insurance Group reported a revenue of $338.94 million for Q3 2024, marking a year-over-year increase of 10.7% and an EPS of $0.33, up from $0.29 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $341.95 million, resulting in a surprise of -0.88%, while the EPS also missed the consensus estimate of $0.34 by -2.94% [1] Financial Performance Metrics - Organic Revenue Growth was reported at 14%, slightly below the four-analyst average estimate of 14.6% [3] - Revenue from Investment Income was $3.73 million, exceeding the average estimate of $2.23 million based on two analysts [3] - Revenue from Commissions and Fees was $335.21 million, which was below the average estimate of $339.19 million based on two analysts [3] Stock Performance - Shares of The Baldwin Insurance Group have declined by -12.1% over the past month, contrasting with the Zacks S&P 500 composite's increase of +0.4% [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

Core Insights - The Baldwin Insurance Group reported quarterly earnings of $0.33 per share, missing the Zacks Consensus Estimate of $0.34 per share, but showing an increase from $0.29 per share a year ago, resulting in an earnings surprise of -2.94% [1] - The company posted revenues of $338.94 million for the quarter, which was below the Zacks Consensus Estimate by 0.88%, but an increase from $306.27 million year-over-year [2] - The stock has gained approximately 88.6% since the beginning of the year, significantly outperforming the S&P 500's gain of 20.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.31 on revenues of $322.34 million, and for the current fiscal year, it is $1.55 on revenues of $1.39 billion [7] - The estimate revisions trend for the company is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Insurance - Life Insurance industry is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Primerica, is expected to report quarterly earnings of $4.78 per share, reflecting a year-over-year change of +11.7%, with revenues anticipated to be $740.09 million, up 3.8% from the previous year [9][10]

Financial Position - Total assets increased to $3,539,040 thousand as of September 30, 2024, compared to $3,501,937 thousand at December 31, 2023, reflecting a growth of approximately 1.06%[10] - Current assets rose to $1,014,281 thousand, up from $925,905 thousand, marking an increase of about 9.5%[10] - Total liabilities amounted to $2,502,431 thousand, a slight increase from $2,483,055 thousand, indicating a growth of approximately 0.78%[10] - Cash and cash equivalents increased to $181,759 thousand from $116,209 thousand, representing a significant rise of about 56.4%[10] - Total stockholders' equity attributable to Baldwin increased to $595,350 thousand from $560,412 thousand, showing a growth of about 6.2%[10] Revenue and Income - Total revenues for Q3 2024 reached $338,938,000, a 10.6% increase from $306,270,000 in Q3 2023[12] - Commissions and fees for the nine months ended September 30, 2024, were $1,050,409,000, up 13.0% from $929,306,000 in the same period of 2023[12] - Operating income for Q3 2024 was $15,406,000, compared to an operating income of $86,000 in Q3 2023[12] - Net loss attributable to Baldwin for Q3 2024 was $8,377,000, an improvement from a net loss of $17,629,000 in Q3 2023[12] - Basic and diluted loss per share for Q3 2024 was $0.13, compared to $0.29 in Q3 2023[12] Cash Flow and Expenditures - Cash provided by operating activities for the nine months ended September 30, 2024, was $85,708,000, compared to $22,799,000 in 2023, reflecting a substantial increase[18] - The company incurred capital expenditures of $28,897,000 for the nine months ended September 30, 2024, compared to $14,157,000 in 2023[18] - The company paid $73,417,000 in interest during the nine months ended September 30, 2024, compared to $77,455,000 in 2023[20] - The company had a net cash increase of $117,753,000 for the nine months ended September 30, 2024, compared to a decrease of $36,077,000 in 2023[20] Debt and Financing - The company has a revolving credit facility with commitments totaling $600 million, maturing on May 24, 2029[7] - The term loan facility under the 2024 Credit Facility has a principal amount of $840 million, maturing on May 24, 2031[7] - The outstanding borrowings on the 2024 Term Loan were $837.9 million with an applicable interest rate of 8.10% as of September 30, 2024[60] - The 2024 Term Loan requires quarterly principal payments of $2.1 million, with the balance payable in full on the maturity date[63] Legal and Compliance - The Company is involved in various legal claims, but management believes the ultimate resolution will not materially affect its financial position[98] - The Company was in compliance with all covenants under the 2024 Credit Agreement at September 30, 2024[69] Shareholder Information - The balance of Class A common stock shares increased to 67,536,347 as of September 30, 2024, from 66,544,590 as of June 30, 2024[13] - The total number of shares authorized for issuance under the Omnibus Plan and the Inducement Plan was 10,793,035 and 3,000,000, respectively, at September 30, 2024[78] - Non-vested awards outstanding increased from 3,521,590 shares at December 31, 2023 to 3,720,279 shares at September 30, 2024, with a weighted-average grant-date fair value per share of $30.49[80] Operating Groups Performance - The Insurance Advisory Solutions Operating Group generated revenues of $549.810 million for the nine months ended September 30, 2024, with net income of $55.619 million[105] - The Underwriting, Capacity & Technology Solutions Operating Group reported revenues of $356.176 million and net income of $70.470 million for the same period[105] - The UCTS Operating Group recorded commissions revenue shared within the same group of $10.3 million for the nine months ended September 30, 2024[111] Other Financial Metrics - The company recognized a gain on divestitures of $38,953,000 for the nine months ended September 30, 2024, with no such gain reported in 2023[18] - The estimated fair value of long-term debt as of September 30, 2024 was $1,466.4 million, compared to an estimated fair value of $997.5 million as of December 31, 2023[96] - The fair value of contingent earnout liabilities decreased by $1.0 million for the three months ended September 30, 2024, while it increased by $17.3 million for the nine months ended September 30, 2024, with a maximum estimated exposure of $329.2 million[92]

Financial Performance - Total revenue increased by 11% year-over-year to $338.9 million, with organic revenue growth of 14%[2] - GAAP net loss was $14.5 million, resulting in a diluted loss per share of $0.13[2] - Adjusted net income reached $38.5 million, with adjusted diluted EPS growing 14% year-over-year to $0.33[2] - Adjusted EBITDA grew 14% year-over-year to $72.8 million, with an adjusted EBITDA margin of 21.5%, a 60 basis point expansion compared to the prior-year period[2] - For the nine months ended September 30, 2024, revenue increased by 13% year-over-year to $1.1 billion, with organic revenue growth of 16%[4] - Adjusted EBITDA for the nine months grew 22% year-over-year to $249.3 million, with an adjusted EBITDA margin of 23.5%[4] - Adjusted diluted EPS for Q3 2024 was $0.33, compared to $0.29 in Q3 2023, reflecting a 13.8% increase[38] - Pro forma revenue for Q3 2024 reached $338,938,000, up from $306,270,000 in Q3 2023, representing a growth of 10.7%[36] - Adjusted EBITDA for Q3 2024 was $72,751,000, compared to $64,009,000 in Q3 2023, indicating a 13.6% increase[36] - Organic revenue growth for Q3 2024 was $40,672,000, with an organic revenue growth rate of 14% compared to 19% in Q3 2023[37] - Adjusted net income for Q3 2024 was $38,528,000, up from $33,756,000 in Q3 2023, marking an increase of 14.5%[38] - Total revenues for the nine months ended September 30, 2024, were $1,059,145,000, compared to $933,907,000 for the same period in 2023, a growth of 13.4%[36] - The company reported a net loss of $14,475,000 for Q3 2024, an improvement from a net loss of $32,006,000 in Q3 2023[36] - The company reported a net loss of $6,242 thousand for the nine months ended September 30, 2024, a substantial improvement from a net loss of $101,523 thousand in 2023[20] Cash Flow and Liquidity - As of September 30, 2024, cash and cash equivalents were $181.8 million, with a borrowing capacity of $600.0 million under the revolving credit facility[3] - Adjusted free cash flow grew 31% year-over-year to $99.2 million[4] - The company reported a net cash provided by operating activities of $85.7 million for the nine months[4] - Cash and cash equivalents, along with restricted cash, totaled $344,716 thousand at the end of the period, compared to $194,394 thousand at the end of September 30, 2023, indicating a year-over-year increase of 77.4%[20] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $85,708 thousand, significantly higher than $22,799 thousand in the same period of 2023[41] - Adjusted free cash flow for the nine months ended September 30, 2024, was $99,235 thousand, up from $76,012 thousand in 2023, indicating a growth of 30.5%[41] Assets and Liabilities - Total assets increased to $3,539,040 thousand as of September 30, 2024, compared to $3,501,937 thousand at December 31, 2023, reflecting a growth of 1.06%[19] - Current assets rose to $1,014,281 thousand, up from $925,905 thousand, marking an increase of 9.5%[19] - Long-term debt increased to $1,399,010 thousand from $968,183 thousand, representing a rise of 44.5%[19] - Total liabilities stood at $2,502,431 thousand, up from $2,483,055 thousand, reflecting a slight increase of 0.8%[19] - The company’s additional paid-in capital increased to $785,931 thousand from $746,671 thousand, an increase of 5.3%[19] - The accumulated deficit grew to $(191,261) thousand from $(186,905) thousand, indicating a decline in retained earnings[19] Operational Effectiveness - The CEO highlighted the company's strong operational effectiveness and efficiency, positioning it well for sustained long-term growth[2] - The company generated $56,977 thousand from divestitures during the nine months ended September 30, 2024, with no comparable figure for 2023[20] - Interest expense for Q3 2024 was $31,329 thousand, slightly up from $30,580 thousand in Q3 2023, indicating a year-over-year increase of 2.4%[40] - Share-based compensation for the nine months ended September 30, 2024, totaled $46,764 thousand, compared to $46,637 thousand in the same period of 2023, showing a marginal increase[40] Guidance and Variability - The company is currently unable to provide guidance on adjusted EBITDA and other non-GAAP measures due to high variability and complexity[34]