Core Insights - The company reported strong financial performance for the fourth quarter, with revenue of $1.6 billion, a 35.7% increase year over year, although organic revenue declined by 2.8% due to prior-year flood claims processing revenue [2][3][4] - The effective tax rate decreased to 21% from 24.9% a year earlier, attributed to international operations and end-of-year adjustments [1] - The company faced employee departures to a startup competitor, with approximately 275 former employees leaving, impacting known annual client revenue of $23 million [5][21] Financial Performance - For the fourth quarter, adjusted diluted earnings per share rose more than 8% to $0.93, while adjusted EBITDAC margin remained flat at 32.9% [2][4] - Full-year revenue reached $5.9 billion, up 23% overall and 2.8% organically, with adjusted diluted EPS increasing more than 10% to $4.26 [7][8] - Cash from operations increased by 23.5% to $1.45 billion, representing 24.6% of revenue [8][9] Acquisition and Integration - The Accession acquisition contributed approximately $405 million in Q4, below the guidance of $430–$450 million, which reduced adjusted EPS by about $0.05 and company margins by roughly 200 basis points [6][10][11] - Integration of Accession is expected to be completed by the end of 2028, targeting $30–$40 million in EBITDA synergies for 2026 [12][20] Segment Performance - Retail segment organic growth was 1.1% in Q4, with total revenue rising 44.4% year over year, primarily due to acquisitions [13] - Specialty Distribution experienced a 7.8% decline in organic revenue, attributed to prior-year flood claims processing revenue, while total revenue rose 27% [14] Market Conditions and Outlook - The company anticipates a modest improvement in organic growth for Retail in 2026, with expectations of flat growth in Specialty Distribution for Q1 due to prior-year flood claims [19][17] - Management expects casualty rates to continue increasing, while cat property rates may decline modestly [22]