Brown & Brown(US:BRO)2026-01-26 22:03Financial Performance - Total revenues for Q4 2025 reached $1.6 billion, an increase of 35.7% year-over-year, while organic revenue decreased by 2.8%[2] - Net income attributable to the Company for Q4 2025 was $264 million, a 25.7% increase compared to the same quarter last year[2] - Diluted net income per share for Q4 2025 was $0.59, a decrease of 19.2%, while adjusted diluted net income per share increased to $0.93, an 8.1% rise[2] - For the full year 2025, total revenues were $5.9 billion, up 22.8% from 2024, with organic revenue growth of 2.8%[2] - Income before income taxes for Q4 2025 was $321 million, a 16.7% increase, with a margin of 20.0% compared to 23.2% in Q4 2024[2] - EBITDAC - Adjusted for Q4 2025 was $529 million, a 35.6% increase, with an adjusted margin of 32.9%[2] Assets and Liabilities - Total assets increased to $29,991 million in 2025, up from $17,612 million in 2024, representing a growth of 70.0%[15] - Total current liabilities increased to $8,294 million in 2025 from $6,314 million in 2024, a rise of 31.4%[15] - Goodwill increased significantly to $15,087 million in 2025, compared to $7,970 million in 2024, indicating a growth of 89.5%[15] - The total equity of the company rose to $12,573 million in 2025, up from $6,437 million in 2024, reflecting a growth of 95.5%[15] Cash Flow - Net cash provided by operating activities rose to $1,450 million in 2025, up from $1,174 million in 2024, marking a growth of 23.5%[18] - Cash, cash equivalents, and restricted cash at the end of 2025 totaled $3,815 million, an increase from $2,502 million at the end of 2024, representing a growth of 52.5%[18] Acquisitions and Investments - The Company completed the acquisition of Accession in 2025, contributing to strong revenue growth and margin expansion[2] - Payments for businesses acquired in 2025 amounted to $7,854 million, a substantial increase from $890 million in 2024[18] - The company issued common stock, generating proceeds of $4,315 million in 2025, compared to no proceeds in 2024[18] Employee Compensation - Employee compensation and benefits for Q4 2025 totaled $819 million, an increase from $582 million in Q4 2024[12] - Interest expenses for Q4 2025 were $100 million, compared to $46 million in Q4 2024[12] - The Company reported a total of 339 million diluted shares outstanding for Q4 2025, compared to 284 million in Q4 2024[12] Strategic Focus - The company anticipates continued growth and expansion, focusing on strategic acquisitions and innovative solutions in the insurance brokerage sector[21] - The company emphasizes the importance of Organic Revenue and Organic Revenue growth as key indicators for assessing performance on a consolidated basis and across segments[24] Definitions and Metrics - Organic Revenue is defined as core commissions and fees, excluding contributions from newly acquired operations, divested businesses, and foreign currency translation[25] - EBITDAC is defined as income before interest, income taxes, depreciation, amortization, and changes in estimated acquisition earn-out payables[30] - EBITDAC Margin is calculated as EBITDAC divided by total revenues, providing insight into operating margins[30] - Diluted Net Income Per Share - Adjusted excludes the after-tax impact of various non-recurring items, enhancing comparability of results[30] - The company uses Organic Revenue growth, Diluted Net Income Per Share - Adjusted, and EBITDAC Margin - Adjusted as key performance metrics for incentive compensation plans[24] - The impact of foreign currency translation is calculated by applying current-year exchange rates to prior year functional currencies, affecting revenue comparisons[30] - Acquisition/Integration Costs include expenses related to regulatory filings, professional services, and integration processes, which are not part of ongoing operations[30] - The company provides non-GAAP financial measures to offer additional insights into operating performance that may not be apparent under GAAP[24] - Comparability of non-GAAP measures may be limited as industry peers may use different terminology and adjustments[29]