BRP Group, Inc.(BWIN) - 2025 Q3 - Quarterly Results

Revenue Performance - Total revenue for Q3 2025 increased by 8% year-over-year to $365.4 million, with organic revenue growth of 5%[1] - Year-to-date total revenue grew by 9% to $1.158 billion, with organic revenue growth also at 9%[11] - Total revenues for Q3 2025 were $365,389,000, an increase from $338,938,000 in Q3 2024, with total revenues for the nine months reaching $1,157,605,000 compared to $1,059,145,000 in the prior year[37] - Organic revenue for Q3 2025 reached $350,095,000, reflecting a growth of 5% year-over-year, while organic revenue growth for the nine months ended September 30, 2025, was 9%[39] - Organic revenue growth for the nine months ended September 30, 2025, was $91,369,000, down from $144,844,000 in the same period of 2024, indicating a slowdown in growth[39] Net Loss and Earnings - Q3 2025 net loss was $30.2 million, resulting in a diluted loss per share of $0.27; adjusted diluted EPS was $0.31, a decrease of 6% year-over-year[5] - Year-to-date net loss amounted to $10.5 million, with a diluted loss per share of $0.12; adjusted diluted EPS increased by 11% year-over-year to $1.37[11] - The company reported a net loss of $30,237,000 for Q3 2025, compared to a net loss of $14,475,000 in Q3 2024, resulting in a net loss margin of -8%[37] - Net loss for the nine months ended September 30, 2025, was $10,480, compared to a loss of $6,242 in the same period of 2024, reflecting a deterioration of 68.0%[23] Adjusted EBITDA and Cash Flow - Adjusted EBITDA for Q3 2025 was $72.5 million, maintaining the same level year-over-year, with an adjusted EBITDA margin of 19.8%[5] - Year-to-date adjusted EBITDA grew by 9% to $271.8 million, with an adjusted EBITDA margin of 23.5%[11] - Adjusted EBITDA for Q3 2025 was $72,520,000, slightly down from $72,751,000 in Q3 2024, with an adjusted EBITDA margin of 19.8% compared to 21.5% in the previous year[37] - Adjusted free cash flow for Q3 2025 increased by 26% year-over-year to $41.8 million[5] - Adjusted free cash flow for the three months ended September 30, 2025, was $41,810,000, up from $33,180,000 in 2024, indicating a growth of 26%[47] - Adjusted free cash flow for the nine months ended September 30, 2025, was $76,257,000, down from $86,043,000 in 2024, reflecting a decline of 11%[47] Financial Position - As of September 30, 2025, cash and cash equivalents were $89.7 million, with a borrowing capacity of $524 million under the revolving credit facility[6] - Total assets increased to $3,793,774, up from $3,534,731, representing a growth of 7.3%[21] - Current liabilities decreased to $959,713 from $1,056,434, a reduction of 9.2%[21] - Total stockholders' equity increased to $1,127,680 from $1,008,344, a rise of 11.8%[21] - Cash and cash equivalents at the end of the period were $325,944, down from $344,716, a decrease of 5.0%[23] Capital Expenditures and Contingent Payments - The company reported capital expenditures of $29,174 for the nine months ended September 30, 2025, compared to $28,897 in 2024, indicating a slight increase of 1.0%[23] - The company reported a significant payment of $85,090 for contingent earnout consideration, compared to $21,145 in the previous year, reflecting an increase of 302.5%[23] - Payment of contingent earnout consideration in excess of purchase price accrual for the nine months ended September 30, 2025, was $85,090,000, compared to $21,145,000 in 2024[47] - Payment of colleague earnout incentives for the nine months ended September 30, 2025, was $30,854,000, up from $11,144,000 in 2024[47] Future Reporting Changes - The company plans to present fiduciary assets and liabilities separately on the consolidated balance sheets starting January 1, 2025, which will affect the calculation of adjusted free cash flow[35] - Adjusted free cash flow is now impacted by changes in fiduciary cash presentation, which may affect previously reported figures for prior periods[35] Management Insights - The CEO highlighted ongoing optimization of the capital stack and continued de-levering as key drivers for long-term shareholder value[4] - The company highlighted the importance of organic revenue growth as a key metric for assessing financial performance, although specific figures were not provided[28]