10-KPeriod: FY2025

BROWN & BROWN, INC. Annual Report, Year Ended Dec 31, 2025

Filed February 12, 2026For Securities:BRO

Summary

Brown & Brown, Inc. reported robust performance for the fiscal year ended December 31, 2025, with total revenues reaching $5.902 billion, a significant increase of 22.8% over the prior year. This growth was largely driven by strong core commissions and fees, which rose by 21.3%, fueled by both organic growth and strategic acquisitions, most notably the significant acquisition of Accession Risk Management Group, Inc. The company's business segments, Retail and Specialty Distribution, both demonstrated growth, with the Retail segment contributing 58.7% of total revenues and the Specialty Distribution segment accounting for 41.3%. Despite increased expenses, particularly related to acquisitions and integration, the company maintained healthy profitability and expanded its EBITDAC - Adjusted margin, indicating efficient operations. The company's strategic focus on growth through acquisitions remains a key driver of its financial results. The significant increase in debt to finance these acquisitions is a notable factor for investors to consider, alongside the company's ongoing efforts to manage its capital structure and operational efficiency. Brown & Brown's commitment to its "teammate" culture and investment in employee development and well-being continue to support its decentralized operational model, which has historically contributed to its success.

Financial Highlights

25 data points
Beta

Revenue

$5.90B

Net Income

$1.07B

18.1% Net Margin

EPS (Diluted)

$3.16

Free Cash Flow

$1.38B

Financial Statements
Beta
Revenue$5.90B
Net Income$1.07B
EPS (Basic)$3.37
EPS (Diluted)$3.16
Shares Outstanding (Basic)310.00M
Shares Outstanding (Diluted)313.00M

Key Highlights

  • 1Total revenues increased by 22.8% to $5.902 billion in 2025, driven by acquisitions and organic growth.
  • 2Core commissions and fees grew by 21.3% to $5.508 billion, demonstrating strong underlying business performance.
  • 3The company completed 43 acquisitions in 2025, including the significant acquisition of Accession Risk Management Group, Inc., for $9.608 billion, expanding its market reach and service offerings.
  • 4EBITDAC - Adjusted increased by 25.6% to $2.121 billion, while EBITDAC Margin - Adjusted improved to 35.9%, reflecting operational leverage and efficiency.
  • 5The Retail segment generated $3.406 billion in total revenues, and the Specialty Distribution segment generated $2.409 billion, both showing substantial year-over-year growth.
  • 6Employee compensation and benefits, while increasing by 22.0% due to acquisitions, remained a manageable 49.7% of total revenues.
  • 7The company repurchased $100 million of its common stock in 2025 and maintained a substantial remaining repurchase authorization of $1.4 billion.

Frequently Asked Questions

The primary driver of Brown & Brown's revenue growth in 2025 was a combination of organic revenue growth, primarily in core commissions and fees, and the impact of strategic acquisitions. The significant acquisition of Accession Risk Management Group, Inc. in the third quarter of 2025 was a major contributor to the overall revenue increase.

The acquisition of Accession Risk Management Group, Inc. significantly impacted the company's financial structure by increasing total debt to $7.613 billion as of December 31, 2025. This was due to the financing of the acquisition through debt issuance. The company also issued common stock as part of the consideration for the transaction. While this increased leverage, the company's liquidity remained strong, supported by its credit facilities.

Both the Retail and Specialty Distribution segments showed strong performance in 2025. The Retail segment reported total revenues of $3.406 billion, driven by 24.8% growth, with an EBITDAC Margin - Adjusted of 30.0%. The Specialty Distribution segment generated $2.409 billion in total revenues, reflecting 19.5% growth and a higher EBITDAC Margin - Adjusted of 43.1%. This indicates continued strength and strategic importance for both segments within the company's overall business model.

Key risks highlighted include challenges related to realizing the full benefits of acquisitions, increased indebtedness impacting financial flexibility, potential cybersecurity threats, the company's reliance on hiring and retaining qualified employees, and the inherent competitive nature of the insurance intermediary industry. Additionally, risks related to economic conditions, regulatory changes, and international operations are also noted.