Brown & Brown Q3 Earnings & Revenues Beat Estimates, Dividend Raised

Core Insights - Brown & Brown, Inc. (BRO) reported third-quarter 2025 adjusted earnings of $1.05 per share, exceeding the Zacks Consensus Estimate by 16.6% and reflecting a year-over-year increase of 15.4% [1][9] - Total revenues reached $1.6 billion, surpassing the Zacks Consensus Estimate by 6.6% and showing a year-over-year growth of 35.4% [2][9] - The growth in revenue was primarily driven by a 34.2% increase in commission and fees, which amounted to $1.5 billion, along with higher investment and other income [2][9] Revenue and Income Details - Organic revenues improved by 3.5% to $1.2 billion during the quarter [2] - Investment and other income surged by 80.6% year over year to $56 million, significantly above the estimate of $36.4 million [3] - Adjusted EBITDAC rose to $587 million, marking a 41.8% increase year over year, with the EBITDAC margin expanding by 170 basis points to 36.6% [3] Expense Overview - Total expenses increased by 49% to $1.3 billion, driven by higher employee compensation, operating expenses, and interest [4] Financial Position - As of September 30, 2025, Brown & Brown had cash and cash equivalents of $1.2 billion, a 76.2% increase from the end of 2024 [5] - Long-term debt stood at $7.6 billion, more than double the level at the end of 2024 [5] - Net cash provided by operating activities for the first nine months of 2025 was $1 billion, reflecting a year-over-year increase of 23.7% [5] Capital Deployment - The board declared a 10% increase in the quarterly dividend to 16.5 cents per share, marking the 32nd consecutive annual dividend increase [6] - An additional share repurchase authorization of up to $1.25 billion was approved, bringing the total authorization to approximately $1.5 billion [7]