BRP Group, Inc.(BWIN) - 2025 Q1 - Quarterly Results

Financial Performance - Total revenue increased by 9% year-over-year to $413.4 million, with organic revenue growth of 10%[1] - Net income for the quarter was $24.9 million, with diluted earnings per share of $0.20; adjusted diluted EPS grew by 16% to $0.65[1][4] - Adjusted EBITDA rose by 12% year-over-year to $113.8 million, resulting in an adjusted EBITDA margin of 27.5%, an expansion of 80 basis points compared to the prior-year period[1][4] - Adjusted free cash flow increased by 6% year-over-year to $25.8 million[4] - Operating income for the quarter was $56.0 million, compared to $34.3 million in the prior-year period[4] - Adjusted net income for Q1 2025 was $76,558,000, an increase of 17.2% from $65,315,000 in Q1 2024[33] - Adjusted diluted EPS for Q1 2025 was $0.65, up 16.1% from $0.56 in Q1 2024[33] - Adjusted pre-tax income for Q1 2025 was $84,970,000, compared to $72,492,000 in Q1 2024, reflecting a growth of 17.2%[33] Cash Flow and Liquidity - As of March 31, 2025, cash and cash equivalents were $81.8 million, with a borrowing capacity of $586 million under the revolving credit facility[5] - Net cash used in operating activities was $(63,983,000) for Q1 2025, a significant decline from $3,007,000 in Q1 2024[18] - Cash and cash equivalents at the end of the period were $299,061,000, down from $234,317,000 at the end of Q1 2024[18] - Adjusted free cash flow for Q1 2025 was $25,809,000, a slight increase from $24,299,000 in Q1 2024[37] Strategic Outlook - The company has reached a significant inflection point with the majority of earnout obligations behind, allowing for increased financial flexibility[3] - The company plans to accelerate momentum across its strategic priorities moving forward[3] - The company expects continued focus on organic revenue growth and strategic partnerships moving forward[28] Client and Market Presence - Baldwin represents over three million clients across the United States and internationally, indicating strong market presence[8] Other Financial Metrics - The company reported adjusted net income of $76.6 million for the quarter[4] - Net income for the three months ended March 31, 2025, was $24,898,000, a decrease of 36.3% compared to $39,100,000 in 2024[18] - Adjusted EBITDA for the same period was $113,795,000, representing an increase of 11.9% from $101,686,000 in 2024[29] - Revenues increased to $413,405,000 in Q1 2025, up 8.7% from $380,367,000 in Q1 2024[29] - Organic revenue growth for the three months ended March 31, 2025, was $38,219,000, with a growth rate of 10% compared to $51,051,000 and 16% in 2024[31] - Adjusted EBITDA margin improved to 27.5% in Q1 2025, compared to 26.7% in Q1 2024[29] - The company incurred $78,193,000 in contingent earnout consideration payments in Q1 2025, significantly higher than $16,318,000 in Q1 2024[37] - The company reported a loss on divestitures of $(1,401,000) in Q1 2025, compared to $(36,516,000) in Q1 2024[29] - Capital expenditures for Q1 2025 were $(8,933,000), slightly higher than $(8,146,000) in Q1 2024[18] - The company reported a loss on extinguishment and modification of debt amounting to $2,394,000 in Q1 2025[33] - Amortization expense for Q1 2025 was $25,882,000, compared to $24,041,000 in Q1 2024[33] - The effective tax rate applied to adjusted pre-tax income was assumed to be 9.9%[34] - Weighted-average shares of Class A common stock outstanding - diluted increased to 69,328,000 in Q1 2025 from 65,314,000 in Q1 2024[33]