Brown & Brown(BRO) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenues for Q3 2025 were $1.6 billion, an increase of 35.4% year-over-year[2] - Organic revenue growth for Q3 2025 was 3.5%, with commissions and fees increasing by 34.2%[2] - Diluted net income per share for Q3 2025 decreased to $0.68, a decline of 16.0% compared to the previous year, while adjusted diluted net income per share increased to $1.05, up 15.4%[2][8] - Income before income taxes for Q3 2025 was $311 million, down 1.9% from the prior year, with a margin decrease to 19.4%[2][10] - EBITDAC - Adjusted for Q3 2025 was $587 million, an increase of 41.8% year-over-year, with an adjusted margin of 36.6%[2][10] - For the nine months ended September 30, 2025, total revenues were $4.3 billion, an increase of 18.6% compared to the same period in 2024[3] - Net income attributable to the Company for Q3 2025 was $227 million, a decrease of $7 million or 3.0% year-over-year[2][14] - Net income before non-controlling interests for the nine months ended September 30, 2025, was $799 million, slightly up from $791 million in the same period of 2024[20] Cash Flow and Assets - Net cash provided by operating activities reached $1.006 billion for the nine months ended September 30, 2025, compared to $813 million in 2024, indicating a 23.8% increase[20] - Cash, cash equivalents, and restricted cash at the end of the period totaled $3.724 billion, up from $2.701 billion a year earlier, marking a 37.8% increase[20] - The company reported a significant increase in fiduciary cash, rising to $2.271 billion in 2025 from $1.827 billion in 2024, a growth of 24.3%[17] - Total assets increased to $29.354 billion as of September 30, 2025, compared to $17.612 billion on December 31, 2024, reflecting a growth of 67.5%[17] Debt and Equity - Long-term debt increased to $7.653 billion as of September 30, 2025, compared to $3.599 billion at the end of 2024, representing a 112.5% increase[17] - Total equity rose to $12.407 billion in 2025, up from $6.437 billion in 2024, reflecting a 92.5% increase[17] Acquisitions and Growth Strategy - The company made payments for businesses acquired totaling $7.659 billion in 2025, a significant increase from $118 million in 2024[20] - The company anticipates continued growth and expansion, focusing on strategic acquisitions and innovative insurance solutions[23] - The Company welcomed over 5,000 new teammates in Q3 2025, enhancing its global capabilities[4] Key Metrics and Definitions - Organic Revenue is a key performance indicator that excludes revenues from newly acquired operations, divested businesses, and foreign currency translation[27] - Diluted Net Income Per Share - Adjusted provides a meaningful representation of operating performance by excluding certain non-recurring items[26] - EBITDAC is defined as income before interest, taxes, depreciation, amortization, and changes in estimated acquisition earn-out payables[32] - EBITDAC Margin is calculated as EBITDAC divided by total revenues, providing insight into operating margins[32] - The company uses Organic Revenue growth, Diluted Net Income Per Share - Adjusted, and EBITDAC Margin - Adjusted as key metrics for executive compensation plans[26] Conference Call - The conference call to discuss Q3 2025 results is scheduled for October 28, 2025, at 8:00 AM (EDT)[21]