Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ...

Core Insights - Ryan Specialty Group reported revenue of $751.21 million for the quarter ended December 2025, marking a year-over-year increase of 13.2% [1] - The earnings per share (EPS) for the same period was $0.45, unchanged from the previous year [1] - The reported revenue fell short of the Zacks Consensus Estimate of $777.88 million, resulting in a surprise of -3.43% [1] - The company experienced an EPS surprise of -9.4%, with the consensus EPS estimate being $0.50 [1] Revenue Breakdown - Fiduciary investment income was reported at $13.17 million, below the estimated $14.25 million [4] - Net commissions and fees totaled $738.05 million, compared to the estimated $771.1 million [4] - Binding Authority revenue was $84.05 million, slightly below the two-analyst average estimate of $85.81 million [4] - Underwriting Management revenue reached $268.31 million, compared to the average estimate of $276.94 million [4] - Wholesale Brokerage revenue was reported at $385.69 million, below the estimated $406.7 million [4] Stock Performance - Ryan Specialty's shares have returned -14.2% over the past month, contrasting with the Zacks S&P 500 composite's -0.3% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

分组1 - Ryan Specialty Group reported quarterly earnings of $0.45 per share, missing the Zacks Consensus Estimate of $0.50 per share, representing an earnings surprise of -9.40% [1] - The company posted revenues of $751.21 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 3.43%, compared to year-ago revenues of $663.53 million [2] - Ryan Specialty shares have declined approximately 16.6% since the beginning of the year, while the S&P 500 has gained 1.4% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.47 on revenues of $817.46 million, and for the current fiscal year, it is $2.38 on revenues of $3.57 billion [7] - The Zacks Industry Rank for Insurance - Brokerage is currently in the bottom 7% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

Financial Data and Key Metrics Changes - For Q4 2025, total revenue grew 13% to $751 million, with organic growth of 6.6% and M&A contributing over five percentage points to the top line [31] - Full year 2025 revenues surpassed $3 billion, up 21% year-over-year, driven by organic growth of 10.1% and significant contributions from M&A [4][32] - Adjusted EBITDA for 2025 grew 19.2% to $967 million, with an adjusted EBITDA margin of 31.7%, slightly down from 32.2% in the prior year [4][32] - Adjusted earnings per share increased by 9.5% to $1.96 [4][32] Business Line Data and Key Metrics Changes - The property business experienced a modest decline, particularly in Q4 where pricing dropped by 25%-35% on large accounts [16][17] - The casualty practice had a strong year, with significant price increases in high-hazard lines exceeding 10% [18] - Delegated authority revenue doubled over the last two years to $1.4 billion, now representing 47% of total revenue [8] Market Data and Key Metrics Changes - The insurance market is currently experiencing significant volatility, with rapid shifts in pricing and market sentiment [6][7] - The company noted a trend of admitted carriers re-entering certain segments, particularly on smaller accounts, but this has not significantly impacted overall rates [25] - The construction segment remains strong, although macroeconomic pressures have delayed project timelines [53][56] Company Strategy and Development Direction - The company is launching Project Empower, a three-year restructuring program aimed at improving efficiency and creating headroom for additional investment [10][36] - A $300 million share repurchase program has been authorized, reflecting confidence in the company's valuation and long-term outlook [12][34] - The focus remains on strategic investments in growth, talent acquisition, and innovation, particularly in AI and technology [29][35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth in property despite near-term pricing pressures, citing factors like increased demand for E&S solutions [17] - The company anticipates high single-digit organic revenue growth for 2026, reflecting current market conditions and continued property pricing pressures [37] - Management emphasized the importance of maintaining strong relationships with clients and adapting to market changes to capture new business opportunities [49] Other Important Information - The company completed five acquisitions in 2025, contributing to a diversified platform with over 300 products [9][25] - The adjusted effective tax rate was 26% for both the quarter and the full year, with expectations for a similar rate in 2026 [33] Q&A Session Summary Question: Can you elaborate on the organic growth guidance for 2026? - Management noted that property pricing declines are expected to continue, impacting overall growth expectations, which are now set at high single digits for 2026 [41][43] Question: How does the company view AI's impact on the brokerage sector? - Management views AI as an ally that will enhance efficiency and client service, emphasizing the importance of relationships and expertise over technology alone [48][50] Question: What is the outlook for the construction segment? - The construction segment remains strong, with a robust pipeline, although macroeconomic pressures have caused delays in project timelines [52][56] Question: How does the share repurchase program fit into the company's M&A strategy? - Management clarified that the share repurchase program does not diminish the commitment to M&A, which remains a top priority for capital allocation [59][60] Question: What are the expectations for client demand in the current environment? - Management indicated that while there are no measurable trends of clients buying less coverage, the structure of demands is changing, with higher retention levels in certain accounts [62][63]

Financial Data and Key Metrics Changes - For Q4 2025, total revenue grew 13% to $751 million, with organic growth of 6.6% and M&A contributing over five percentage points to the top line [31] - Full year 2025 revenues surpassed $3 billion, up 21% year over year, driven by organic growth of 10.1% and significant contributions from M&A [4][32] - Adjusted EBITDA grew 19.2% to $967 million, with an adjusted EBITDA margin of 31.7%, slightly down from 32.2% in the prior year [4][32] - Adjusted earnings per share increased by 9.5% to $1.96 [4][32] Business Line Data and Key Metrics Changes - The property business experienced a modest decline, particularly in Q4 where pricing dropped 25%-35% for large accounts [16][17] - The casualty practice had a strong year, with significant price increases in high-hazard lines exceeding 10% [18] - The delegated authority business generated $1.4 billion in revenue, accounting for 47% of total revenue, up from $700 million and 35% two years ago [8] Market Data and Key Metrics Changes - The insurance market is currently experiencing significant volatility, with rapid shifts in market sentiment [6][7] - The company noted a trend of admitted carriers stepping back into certain segments, particularly on smaller accounts [16] - The overall market conditions are expected to lead to continued pricing declines in property for 2026 [17] Company Strategy and Development Direction - The company is focused on a diversified platform to deliver innovative solutions, emphasizing the importance of specialized expertise and top talent [7][8] - A three-year restructuring program called "Empower" is being launched to improve efficiency and create headroom for additional investment [10][36] - The company has authorized a $300 million share repurchase program, reflecting confidence in its long-term outlook [12][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth in property despite near-term pricing pressures, citing factors like increasing populations in cat-affected areas [17] - The company anticipates high single-digit organic revenue growth for 2026, reflecting current market conditions and continued property pricing pressures [37] - Management emphasized the importance of AI as an enabler to improve efficiency and client relationships [47][49] Other Important Information - The company completed five acquisitions in 2025, contributing to its growth strategy [5][25] - The Empower program is expected to incur a cumulative special charge of approximately $160 million through 2028, with anticipated annual savings of $80 million by 2029 [11][37] Q&A Session Summary Question: Can you elaborate on the organic growth guidance for 2026? - Management noted that property pricing declines are expected to continue, impacting overall growth guidance, which is now set at high single digits for 2026 [41][42] Question: How does the company view AI's impact on the brokerage sector? - Management views AI as an ally that will enhance efficiency and client service, emphasizing the importance of relationships and trust in the brokerage business [46][48] Question: What is the outlook for the construction segment? - The construction segment remains strong, with a robust pipeline, although macroeconomic pressures have caused delays in project timelines [51][54]

Financial Data and Key Metrics Changes - For Q4 2025, total revenue grew 13% to $751 million, with organic growth of 6.6% and contributions from M&A adding over five percentage points to the top line [31] - Full year 2025 revenues surpassed $3 billion, up 21% year over year, driven by organic growth of 10.1% and strong M&A contributions [4][32] - Adjusted EBITDA grew 19.2% to $967 million, with an adjusted EBITDA margin of 31.7%, slightly down from 32.2% in the prior year [4][32] - Adjusted earnings per share increased 9.5% to $1.96 [4][32] Business Line Data and Key Metrics Changes - The property business experienced a modest decline, particularly in Q4 where pricing dropped 25%-35% on large accounts [16][17] - The casualty practice had a strong year, with significant price increases in high-hazard lines exceeding 10% [18] - Delegated authority revenue doubled over the last two years to $1.4 billion, now representing 47% of total revenue [8] Market Data and Key Metrics Changes - The insurance market is currently experiencing significant volatility, with rapid shifts in pricing and market sentiment [5][6] - The company noted a trend of admitted carriers stepping back into certain segments, particularly on smaller accounts [16] - The overall market conditions are expected to lead to continued pricing pressures in property for 2026 [17][36] Company Strategy and Development Direction - The company is focused on a diversified platform to deliver innovative solutions, emphasizing the importance of specialized expertise and top talent [6][10] - A three-year restructuring program, Project Empower, is being launched to improve efficiency and create headroom for additional investment [10][35] - The company has authorized a $300 million share repurchase program, reflecting confidence in its long-term outlook and addressing current valuation dislocation [12][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth in property despite near-term pricing pressures, citing factors like increased demand for E&S solutions [17] - The company anticipates high single-digit organic revenue growth for 2026, reflecting current market conditions and continued investment in talent and technology [36] - Management emphasized the importance of AI as an enabler to improve client service and operational efficiency [46][47] Other Important Information - The company completed five acquisitions in 2025, contributing to significant diversification and expansion of its product offerings [9][25] - The board approved an 8% increase in the quarterly dividend for Class A stockholders, now at $0.13 per share [33][34] Q&A Session Summary Question: What is the driver behind the organic growth guidance for 2026? - Management noted that continued property pricing declines and moderating casualty growth are expected to impact organic growth, leading to a high single-digit guidance for 2026 [40][41] Question: How does the company view AI's impact on the brokerage sector? - Management views AI as an ally that will enhance efficiency and client service, emphasizing the importance of relationships and expertise over technology alone [46][47] Question: Can you discuss the share repurchase program and its relation to M&A? - Management clarified that the share repurchase program does not diminish their commitment to M&A, which remains a top priority for capital allocation [56][58]

Revenue Performance - Total revenue for Q4 2025 increased by 13.2% year-over-year to $751.2 million, compared to $663.5 million in Q4 2024[4] - Full year 2025 total revenue grew by 21.3% to $3,051.1 million, compared to $2,515.7 million in 2024[4] - Total revenue for Q4 2025 was $751,213,000, an increase from $663,529,000 in Q4 2024, representing a growth of 13.2%[51] - Total revenue for the year ended December 31, 2025, was $3,051,126, representing a 21.2% increase from $2,515,710 in 2024[68] Net Income and Earnings - Net income for Q4 2025 decreased by 26.6% year-over-year to $31.2 million, compared to $42.6 million in Q4 2024[4] - Full year 2025 net income decreased by 6.9% to $214.2 million, compared to $229.9 million in 2024[4] - Adjusted net income for the year 2025 was $548,219,000, compared to $493,521,000 in 2024, reflecting a year-over-year increase of 11.1%[52] - Net income for 2025 was $214,157,000, a decrease from $229,913,000 in 2024[56] - Net income margin for Q4 2025 was 4.2%, down from 6.4% in Q4 2024, while the full year net income margin was 7.0%, compared to 9.1% in 2024[51] Earnings Per Share - Adjusted diluted earnings per share for Q4 2025 remained flat at $0.45, compared to $0.45 in Q4 2024[17] - Adjusted diluted earnings per share for the year 2025 was $1.96, an increase from $1.79 in 2024[52] - Adjusted diluted earnings per share for the year ended December 31, 2025, was $1.96, an increase of 9.5% from $1.79 in 2024[70] Operating Performance - Adjusted EBITDAC for Q4 2025 grew by 2.9% to $222.3 million, with an adjusted EBITDAC margin of 29.6%[4][16] - Adjusted EBITDAC for Q4 2025 was $222,302,000, with an adjusted EBITDAC margin of 29.6%, compared to $216,049,000 and 32.6% in Q4 2024[52] - Adjusted EBITDAC for 2025 was $966,742,000, compared to $811,223,000 in 2024, indicating a strong performance[66] - Adjusted EBITDAC for the year ended December 31, 2025, was $966,742, reflecting a growth from the previous year[73] - Credit adjusted EBITDAC for the year ended December 31, 2025, reached $1,002,197, indicating strong operational performance[73] Cash Flow and Capital Management - The company reported cash and cash equivalents of $158.3 million and outstanding debt of $3.4 billion as of December 31, 2025[21] - The company reported cash and cash equivalents of $158,322,000 as of December 31, 2025, a decrease from $540,203,000 in 2024[54] - Total cash flows provided by operating activities increased to $643,667,000 in 2025 from $514,868,000 in 2024[57] - Total cash flows used in investing activities were $834,013,000 in 2025, a decrease from $1,755,738,000 in 2024[57] - The company experienced a net change in cash of $(96,335,000) in 2025, compared to $(75,527,000) in 2024[57] Expenses and Ratios - Total operating expenses for Q4 2025 were $659,651,000, up from $554,211,000 in Q4 2024, indicating a rise of 19.0%[51] - Compensation and benefits expense ratio for Q4 2025 was 59.6%, a decrease from 61.8% in Q4 2024, while the full year ratio was 59.1%, down from 63.2% in 2024[51] - The company reported a compensation and benefits expense ratio of 59.6% for 2025, down from 61.8% in 2024[61] - The adjusted general and administrative expense ratio for 2025 was 14.0%, compared to 11.8% in 2024[64] Acquisitions and Shareholder Returns - The company executed five high-quality acquisitions in 2025, expected to add over $125 million in annualized revenue[5] - A $300 million share repurchase program was authorized to enhance shareholder returns[6] - The board declared a quarterly dividend of $0.13 per share, an increase of 8.3%, payable on March 10, 2026[22] Future Projections - The company projects an organic revenue growth rate in the high single digits for 2026[24] - The adjusted EBITDAC margin is expected to be flat to moderately down for 2026 compared to the prior year[24] - The Empower Program is expected to incur approximately $160 million in one-time charges through 2028, with anticipated annual savings of $80 million starting in 2029[23] Commissions and Fees - Total net commissions and fees for Q4 2025 reached $738,045 thousand, a 13.6% increase from $649,407 thousand in Q4 2024[19] - For the year ended December 31, 2025, total net commissions and fees were $2,994,582 thousand, reflecting a 21.9% growth compared to $2,455,671 thousand in 2024[20] - Supplemental and contingent commissions increased by 52.4% to $46,052 thousand in Q4 2025 from $30,224 thousand in Q4 2024[20] - Underwriting management revenue grew by 34.2% to $268,314 thousand in Q4 2025, up from $199,953 thousand in Q4 2024[19] - Binding authority revenue increased by 12.6% to $84,045 thousand in Q4 2025 compared to $74,617 thousand in Q4 2024[19]

Core Insights - Cooper Investors Global Equities Fund reported a portfolio return of -3.3% in Q4 2025, resulting in an annual return of 2.6% for the year, impacted by approximately 5% currency fluctuations [1] - The fund achieved an annualized return of 14.2% over the past three years, while the MSCI AC World Index had an annualized return of 21.3% during the same period [1] - The firm emphasizes a long-term investment strategy aimed at delivering risk-adjusted returns above the market [1] Company Focus: Ryan Specialty Holdings, Inc. - Ryan Specialty Holdings, Inc. (NYSE:RYAN) is highlighted as a key stock in the fund's portfolio, providing specialty products and solutions for insurance brokers, agents, and carriers [2] - As of February 10, 2026, Ryan Specialty's stock closed at $44.88 per share, with a one-month return of -10.54% and a three-month decline of 33.15% [2] - The market capitalization of Ryan Specialty Holdings, Inc. is reported at $11.868 billion [2] - The company is navigating a soft pricing environment in the property insurance sector but is expected to achieve organic revenue growth of close to 10% and EBITDA growth of over 20% in 2025, factoring in completed acquisitions [3]

Core Viewpoint - Ryan Specialty has appointed Stephen Stewart as the Chief Executive Officer of Ryan Specialty Canada Limited, expanding his role from President & CEO of Stewart Specialty Risk Underwriting [1] Group 1: Company Developments - Stephen Stewart will lead the newly formed Canadian operating and holding entity for Ryan Specialty's underwriting management businesses in Canada [1]

Group 1: Investment Performance - Vulcan Value Partners' strategies delivered positive results in 2025, with the Large Cap Composite returning -1.5% in Q4 and 7.9% YTD, and the Small Cap Composite gaining 3.2% in Q4 and 9.5% YTD [1] - The Focus Composite and Focus Plus Composite both returned 0.1% in Q4, with YTD returns of 7.1% and 6.2% respectively, while the All-Cap Composite returned 1.3% in Q4 and 10.7% YTD [1] Group 2: Market Context and Strategy - Despite overvalued markets, the firm improved its price-to-value ratios, prioritizing safety and long-term gains over short-term performance, reminiscent of the late 1990s dot-com bubble [1] - The firm is maintaining its investment discipline in light of potential overvaluation in AI-related businesses [1] Group 3: Company Focus - Ryan Specialty Holdings, Inc. - Ryan Specialty Holdings, Inc. is a specialty products and solutions provider for insurance brokers, with shares trading between $48.90 and $77.16 over the past 52 weeks, closing at $50.40 on January 22, 2026 [2] - The company generates approximately 55% of its revenue from brokerage and 45% from delegated authority businesses, with the excess and surplus brokerage market representing 26% of commercial property and casualty premiums [3] - The excess and surplus market has grown at an 11% CAGR over the past 25 years, while the admitted market has grown at a 4% CAGR, indicating a favorable growth outlook for Ryan Specialty [3] - Ryan Specialty's delegated authority business does not retain balance sheet risk, and the company has experienced organic growth at a double-digit rate for the past 15 years [3] - Current pricing headwinds in the commercial property sector are viewed as a short-term issue, with the stock price currently below its long-term intrinsic value, presenting an investment opportunity [3]