Brown & Brown(US:BRO)2025-10-27 21:40Financial Performance - Total revenues for Q3 2025 reached $1,606 million, a 35.3% increase from $1,186 million in Q3 2024[14] - Net income attributable to the Company for Q3 2025 was $227 million, compared to $234 million in Q3 2024, reflecting a decrease of 3%[14] - Comprehensive income attributable to the Company for Q3 2025 was $165 million, down from $406 million in Q3 2024, indicating a significant decline[17] - Net income for the nine months ended September 30, 2025, was $799 million, compared to $791 million for the same period in 2024, reflecting a growth of 1%[26] - Total revenues for the nine months ended September 30, 2025, were $4,295 million, a 19% increase from $3,622 million in the same period of 2024[41] - Total consolidated revenues for the three months ended September 30, 2025, were $1,606 million, an increase from $1,186 million in the same period of 2024, representing a growth of approximately 35.4%[94] - Total segment revenues for the nine months ended September 30, 2025, reached $4,295 million, compared to $3,731 million for the same period in 2024, indicating a year-over-year increase of about 15.1%[97] Assets and Liabilities - Total assets increased to $29,354 million as of September 30, 2025, compared to $17,612 million at December 31, 2024, representing a growth of 66.7%[20] - Current liabilities totaled $6,890 million as of September 30, 2025, compared to $6,314 million at December 31, 2024, an increase of 9.1%[20] - Long-term debt increased to $7,653 million as of September 30, 2025, compared to $3,599 million at December 31, 2024, reflecting a 112.5% increase[20] - The company’s total liabilities increased due to higher payments on acquisition earn-outs, totaling $77 million in 2025 compared to $100 million in 2024[26] - The estimated acquisition earn-out payables totaled $575 million, with $262 million recorded as accounts payable and $313 million as other non-current liabilities[69] Cash Flow and Investments - Cash flows from operating activities increased to $1,006 million in 2025 from $813 million in 2024, representing a growth of 23.8%[26] - The company reported a net cash used in investing activities of $7,701 million in 2025, significantly higher than $119 million in 2024, primarily due to payments for businesses acquired[26] - Cash dividends paid increased to $137 million in 2025 from $111 million in 2024, indicating a rise of 23.4%[26] - The total cash, cash equivalents, and restricted cash at the end of the period was $3,724 million, up from $2,701 million at the end of the previous year[26] - Significant non-cash investing activities included $699 million in other payables issued for agency acquisitions and purchased customer accounts during the nine months ended September 30, 2025[84] Revenue Segments - Retail segment revenues reached $883 million, while Specialty Distribution segment revenues were $681 million for the three months ended September 30, 2025[40] - Base commissions for the Retail segment increased to $623 million, up from $444 million in the same quarter of 2024, representing a 40% growth[40] - Profit-sharing contingent commissions for the Specialty Distribution segment were $55 million for the three months ended September 30, 2025, up from $19 million in the same period of 2024[40] - The U.S. market contributed $1,410 million in revenues for the three months ended September 30, 2025, compared to $1,031 million in 2024[42] - International operations generated total revenues of $196 million for the three months ended September 30, 2025, compared to $155 million in the same period of 2024, representing a growth of approximately 26.5%[91] Acquisitions - The company completed 37 acquisitions during the nine months ended September 30, 2025, including 13 insurance intermediaries and 16 insurance intermediaries' assets[51] - The total purchase price for the acquisition of Accession Risk Management Group was $9,598 million, funded by cash and common stock[54] - Total revenues from acquisitions completed through September 30, 2025, were $318 million, with income before income taxes of $34 million[66] - If the 2025 acquisitions had occurred at the beginning of 2024, total revenues for the nine months ended September 30, 2025, would have been $5,316 million, compared to $4,972 million in 2024[68] - As of September 30, 2025, the total balance of the escrow liability related to the Accession acquisition was $676 million, comprising $414 million in escrowed shares and $263 million in cash[59] Expenses - Employee compensation and benefits for Q3 2025 were $793 million, up from $607 million in Q3 2024, marking a rise of 30.6%[14] - Amortization expenses increased to $196 million in 2025 from $131 million in 2024, reflecting a rise of 49.6%[26] - Amortization expense for intangible assets is estimated to be $261 million for 2025, with a gradual increase to $446 million in 2026[72] - Operating lease cost for the three months ended September 30, 2025, was $19 million, slightly up from $18 million in the same period of 2024, reflecting a growth of about 5.6%[81] Compliance and Financial Ratios - The company was in compliance with all financial ratios and covenants as of September 30, 2025[76] - The maximum future acquisition contingency payments totaled $353 million as of September 30, 2025, excluding uncapped earn-out payables[69] - The one-month term SOFR Rate for loans was 4.263% as of September 30, 2025, reflecting the current interest environment[77] Stock and Dividends - The Company has an outstanding approval to purchase up to approximately $249 million of its common stock[115] - A quarterly cash dividend of $0.165 per share was approved on October 22, 2025, to be paid on November 12, 2025[119] - The maximum dividend payout that WNFIC can make in 2025 without prior approval is $9 million[111]