BRP(US:BRP)2025-11-04 21:42Financial Performance - Total revenues for Q3 2025 reached $365.4 million, a 7.5% increase from $338.9 million in Q3 2024[22]. - Commissions and fees contributed $362.3 million to total revenues in Q3 2025, up from $335.2 million in Q3 2024, reflecting an 8.1% growth[22]. - Operating income for Q3 2025 was $3.2 million, a significant decrease from $15.4 million in Q3 2024, indicating a decline of 79.1%[22]. - Net loss attributable to Baldwin for Q3 2025 was $18.7 million, compared to a loss of $8.4 million in Q3 2024, representing a 123.5% increase in losses[22]. - Basic and diluted loss per share for Q3 2025 was $0.27, compared to $0.13 in Q3 2024, reflecting a 107.7% increase in loss per share[22]. - Total operating expenses for Q3 2025 were $362.2 million, up from $323.5 million in Q3 2024, marking a 12.0% increase[22]. - The company reported a comprehensive loss of $29.2 million for Q3 2025, compared to a comprehensive loss of $14.5 million in Q3 2024[22]. - For the nine months ended September 30, 2025, total revenues were $1.16 billion, an increase of 9.3% from $1.06 billion in the same period of 2024[22]. - The company experienced a net loss of $10.5 million for the nine months ended September 30, 2025, compared to a loss of $6.2 million for the same period in 2024[22]. Assets and Liabilities - Total assets increased to $3.794 billion as of September 30, 2025, up from $3.535 billion at December 31, 2024, representing a growth of 7.36%[15]. - Current liabilities decreased to $959.7 million from $1.056 billion, a reduction of 9.15%[15]. - Cash and cash equivalents slightly decreased to $89.7 million from $90.0 million, a decline of 0.38%[15]. - Intangible assets increased to $1.017 billion from $953.5 million, reflecting a growth of 6.69%[15]. - Goodwill rose to $1.516 billion from $1.412 billion, an increase of 7.36%[15]. - The current portion of contingent earnout liabilities decreased significantly from $142.9 million to $17.1 million, a drop of 88.01%[15]. - Total stockholders' equity attributable to Baldwin increased to $619.7 million from $583.2 million, a growth of 6.24%[15]. - The Baldwin Insurance Group's total stockholders' equity increased to $1,036,234,000 as of September 30, 2024, from $1,018,488,000 at December 31, 2023[29]. Cash Flow and Expenditures - Cash flows from operating activities resulted in a net cash used of $39,687,000 for the nine months ended September 30, 2025, compared to net cash provided of $53,754,000 in 2024[32]. - The company incurred capital expenditures of $29,174,000 for the nine months ended September 30, 2025, compared to $28,897,000 in 2024[32]. - Cash and cash equivalents at the end of the period were $325,944,000 for September 30, 2025, down from $344,716,000 at the same time in 2024[32]. - The company reported capital expenditures of $29,174,000 for the nine months ended September 30, 2025, compared to $28,897,000 in 2024, showing a slight increase[155]. Business Combinations and Acquisitions - The Company completed two business combinations for a total purchase price of $129.1 million during the nine months ended September 30, 2025[72]. - The Company acquired assets and equity interests from MultiStrat Group to enhance its reinsurance underwriting capabilities effective April 1, 2025[75]. - The Company acquired Hippo's Homebuilder Distribution Network to improve property and casualty insurance solutions for homebuilder clients effective July 1, 2025[75]. - Total revenues from business combinations for the three months ended September 30, 2025, were $12.2 million, with net income of $2.7 million[77]. - For the nine months ended September 30, 2025, total revenues from business combinations were $14.2 million, with net income of $2.7 million[77]. - The total consideration for Hippo's Homebuilder Distribution Network acquisition was $129.078 million, including cash consideration of $87.399 million[80]. - Recognized amounts of identifiable net assets acquired totaled $122.879 million, with goodwill recognized at $104.119 million[80]. Debt and Financing - The company has a revolving credit facility with commitments totaling $600 million, maturing on May 24, 2029[13]. - The company's long-term debt as of December 31, 2024 was $1.44 billion, which included a term loan facility of $840 million and a revolving credit facility of $600 million[96]. - As of September 30, 2025, the outstanding borrowings under the 2025 Term Loans were $1.004 billion with an interest rate of 6.64%[101]. - The Company provided for $75.0 million of incremental term B loans as part of the amendments to the 2024 Credit Agreement[285]. - The aggregate principal amount of the 2025 Term Loans was increased to $1.006 billion following the amendments to the 2024 Credit Agreement[288]. Shareholder Information - The company reported a total of 71,416,940 Class A common shares issued and outstanding as of September 30, 2025, compared to 67,979,419 shares at December 31, 2024[15]. - The weighted-average shares of Class A common stock outstanding increased to 68.6 million in Q3 2025 from 64.0 million in Q3 2024[22]. - Share-based compensation expense for the nine months ended September 30, 2025, was $51,772,000, up from $46,764,000 in 2024[32]. - Share-based compensation expense for the three months ended September 30, 2025 was $22.0 million, compared to $17.9 million for the same period in 2024, representing a year-over-year increase of approximately 22.9%[115]. - The total fair value of shares that vested and settled under the Plans was $52.0 million for the nine months ended September 30, 2025, compared to $36.7 million for the same period in 2024[114]. Market and Risk Management - The company is exposed to market risk through investments and borrowings, utilizing derivative instruments to mitigate risks related to rising interest rates[283]. - A floating-to-fixed interest rate swap agreement was entered into with a notional amount of $500.0 million, converting variable rate cash flows into fixed rate payments at 3.244%[286]. - The objective of the interest rate swap is to manage exposure to interest rate risk and provide predictability in interest expense[286]. - An increase of 100 basis points on the SOFR rate would have increased annual interest expense under the 2024 Credit Facility by $5.7 million[287]. - There have been no material changes in market risk from the information presented in the Annual Report on Form 10-K for the year ended December 31, 2024[288].