Ryan Specialty (RYAN) Q2 Revenue Up 23%

Core Insights - Ryan Specialty reported Q2 2025 GAAP revenue of $855.2 million, exceeding analyst expectations of $832.0 million, with adjusted diluted EPS of $0.66, slightly above the consensus of $0.65 [1][2] - Organic revenue growth rate was 7.1%, down from 14.2% in Q2 2024, and below the company's guidance for FY2025 of 9.0%–11.0% [1][2] - Management lowered full-year 2025 guidance for organic revenue growth and adjusted EBITDAC margin due to ongoing softness in the property insurance market [1][9] Financial Performance - Adjusted diluted EPS increased by 13.8% year-over-year from $0.58 in Q2 2024 to $0.66 in Q2 2025 [2] - GAAP revenue rose 23.0% year-over-year from $695.4 million in Q2 2024 to $855.2 million in Q2 2025 [2] - Adjusted EBITDAC increased by 24.5% year-over-year, reflecting strong operating profitability [2] Business Overview - Ryan Specialty operates as a specialized intermediary in the excess and surplus (E&S) insurance market, providing coverage for complex or high-risk situations [3] - The company's strategy focuses on expanding its E&S market presence through organic initiatives and strategic acquisitions [4] Segment Performance - Wholesale Brokerage remained the largest revenue unit with a 7.4% year-over-year increase [6] - Binding Authorities revenue grew by 17.2%, while Underwriting Management revenue surged by 73.1% year-over-year [6] - Property-focused lines experienced a modest decline, while casualty lines grew due to increased demand in various sectors [7] Strategic Initiatives - The company emphasizes strong relationships with retail brokers and insurance carriers, investment in technology, and targeted acquisitions as key success factors [4] - Supplemental and contingent commissions rose to $35.6 million, nearly quadrupling year-over-year, supported by technology investments [8] Future Outlook - Management revised full-year organic revenue growth guidance to 9.0%–11.0% from the previous 11.0%–13.0% [9] - Adjusted EBITDAC margin expectations were tightened to 32.5%–33.0% for FY2025 [9] - The company declared a quarterly dividend of $0.12 per share, payable August 26, 2025, and will focus on organic revenue growth and integration of acquired businesses [10]