10-QPeriod: Q1 FY2025

BROWN & BROWN, INC. Quarterly Report for Q1 Ended Mar 31, 2025

Filed April 28, 2025For Securities:BRO

Summary

Brown & Brown, Inc. (BRO) reported strong financial results for the first quarter of 2025, demonstrating robust revenue growth and improved profitability. Total revenues increased by 11.6% year-over-year, driven primarily by a significant 12.7% rise in core commissions and fees. This growth was fueled by a combination of organic revenue expansion of 6.5% and contributions from recent acquisitions. The company effectively managed its expenses, leading to a 17.3% increase in income before income taxes and a 13.0% rise in net income attributable to the Company, reaching $331 million. Profitability metrics like EBITDAC - Adjusted also showed healthy growth, up 14.8%, with an improved EBITDAC Margin - Adjusted of 38.1%. The company's strategic focus on acquisitions and organic growth continues to yield positive results, evident in the diversified performance across its Retail, Programs, and Wholesale Brokerage segments. Brown & Brown's solid liquidity position and ongoing share repurchase program further underscore its financial strength and commitment to shareholder value.

Financial Highlights

50 data points
Beta

Revenue

$1.26B

Net Income

$294.00M

23.4% Net Margin

EPS (Diluted)

$1.02

Total Assets

$14.81B

Cash & Equivalents

$2.15B

Free Cash Flow

$0.00

Financial Statements
Beta
Revenue$1.26B
Operating Expenses$894.00M
Interest Expense$48.00M
Net Income$294.00M
EPS (Basic)$1.03
EPS (Diluted)$1.02
Shares Outstanding (Basic)281.00M
Shares Outstanding (Diluted)283.00M

Key Highlights

  • 1Total revenues grew 11.6% to $1.404 billion in Q1 2025 compared to $1.258 billion in Q1 2024.
  • 2Core commissions and fees increased by 12.7% to $1.342 billion, indicating strong underlying business momentum.
  • 3Organic Revenue growth was 6.5%, demonstrating the company's ability to expand its business organically.
  • 4Income before income taxes rose 17.3% to $427 million, reflecting effective cost management and revenue growth.
  • 5Net income attributable to the Company increased 13.0% to $331 million, with diluted earnings per share of $1.15.
  • 6The company completed 13 acquisitions in Q1 2025, deploying $67 million in cash, demonstrating an active M&A strategy.
  • 7EBITDAC - Adjusted increased by 14.8% to $535 million, highlighting operational efficiency and profitability.

Frequently Asked Questions

Brown & Brown's revenue growth in Q1 2025 was primarily driven by a 12.7% increase in core commissions and fees, which benefited from both organic growth of 6.5% and contributions from recent acquisitions. The company successfully expanded its client base and service offerings across its Retail, Programs, and Wholesale Brokerage segments.

Brown & Brown demonstrated effective expense management. While revenues grew significantly, total expenses increased by 9.3%, which is less than the revenue growth rate. This leverage contributed to a substantial 17.3% increase in income before income taxes and an improved EBITDAC Margin - Adjusted of 38.1%.

Acquisitions remain a key part of Brown & Brown's growth strategy. In Q1 2025, the company completed 13 acquisitions, deploying $67 million. These acquisitions contributed to revenue growth and expanded the company's market presence, although they also led to an increase in amortization expense due to the related intangible assets.

Brown & Brown maintains a strong liquidity position. As of March 31, 2025, cash and cash equivalents totaled $669 million. The company also has access to a $400 million revolving credit facility and believes its existing cash, cash equivalents, and internally generated funds are sufficient to meet its liquidity needs for the next 12 months and beyond.