Ryan Specialty (US:RYAN)2025-05-01 20:06Revenue Performance - Total revenue for Q1 2025 increased by 25.0% year-over-year to $690.2 million, compared to $552.0 million in the prior-year period[1] - Total revenue for the three months ended March 31, 2025, was $690,166,000, a 25% increase from $552,046,000 in the same period of 2024[56] - For the twelve months ended March 31, 2025, total revenue reached $2,653,830,000, with a net income of $184,847,000[63] Organic Revenue Growth - Organic revenue growth rate was 12.9% for the quarter, down from 13.7% in the prior-year period[4] - Organic revenue growth rate for the three months ended March 31, 2025, was 12.9%, compared to 13.7% in the same period of 2024[45] - Full year 2025 outlook for organic revenue growth rate is between 11.0% – 13.0%[22] Income and Earnings - Net income decreased to a loss of $(4.4) million, compared to a profit of $40.7 million in the prior-year period[9] - Net income (loss) for the three months ended March 31, 2025, was $(4,389,000), compared to a net income of $40,677,000 in 2024, resulting in a net income margin of (0.6)%[58] - Adjusted net income increased by 13.0% to $107.8 million, with an adjusted net income margin of 15.6%[11] - Adjusted net income for the three months ended March 31, 2025, was $107,839,000, representing a margin of 15.6%[58] Earnings Per Share - Adjusted diluted earnings per share rose by 11.4% to $0.39, compared to $0.35 in the prior-year period[11] - Adjusted diluted earnings per share for the three months ended March 31, 2025, was $0.39, compared to $0.35 in the same period of 2024[45] Operating Expenses - Total operating expenses increased by 23.1% to $589.9 million, primarily due to higher compensation and benefits expenses[7] - Compensation and benefits expense ratio for the three months ended March 31, 2025, was 62.3%, down from 67.7% in the same period of 2024[44] - General and administrative expense ratio for the three months ended March 31, 2025, was 15.4%, up from 13.7% in the same period of 2024[44] EBITDAC Performance - Adjusted EBITDAC grew by 27.5% to $200.5 million, with an adjusted EBITDAC margin of 29.1%[10] - Adjusted EBITDAC for the three months ended March 31, 2025, was $200,501,000, up from $157,222,000 in 2024, with an adjusted EBITDAC margin of 29.1%[57] - Full year 2025 adjusted EBITDAC margin guidance is between 32.5% – 33.5%[22] Cash Flow and Assets - The company incurred cash flows used in operating activities of $142,825 thousand in Q1 2025, compared to $116,539 thousand in Q1 2024[47] - Cash and cash equivalents decreased from $540,203 thousand as of December 31, 2024, to $203,549 thousand as of March 31, 2025, a decline of approximately 62.3%[46] - Total current assets decreased from $4,788,858 thousand as of December 31, 2024, to $4,609,110 thousand as of March 31, 2025, a decline of approximately 3.8%[46] Liabilities and Equity - Total liabilities increased from $8,551,633 thousand as of December 31, 2024, to $8,832,726 thousand as of March 31, 2025, representing a rise of approximately 3.3%[46] - Total stockholders' equity attributable to Ryan Specialty Holdings, Inc. decreased from $627,662 thousand as of December 31, 2024, to $542,518 thousand as of March 31, 2025, a decline of approximately 13.6%[46] Interest Expense - Interest expense for the three months ended March 31, 2025, was $54.508 million, compared to $29.400 million in the same period of 2024[44] - Interest expense, net for the three months ended March 31, 2025, was $54,508,000, compared to $29,400,000 in 2024[56] Acquisition-Related Expenses - The company incurred acquisition-related expenses of $17,302,000 for the three months ended March 31, 2025, compared to $8,437,000 in 2024[58] Dividend Declaration - The company declared a regular quarterly dividend of $0.12 per share, payable on May 27, 2025[16]