10-QPeriod: Q2 FY2025

BROWN & BROWN, INC. Quarterly Report for Q2 Ended Jun 30, 2025

Filed July 28, 2025For Securities:BRO

Summary

Brown & Brown, Inc. reported solid financial performance for the six months ended June 30, 2025, with total revenues increasing by 10.4% to $2.69 billion compared to the prior year. Net income attributable to the Company grew by 2.4% to $563 million, while diluted earnings per share were $1.93. The company continues its aggressive acquisition strategy, completing 29 acquisitions in the first half of the year and announcing a significant pending acquisition of Accession Risk Management Group for approximately $9.8 billion, which is expected to close in Q3 2025. This acquisition is being financed through a combination of a substantial equity offering, senior notes issuance, and cash on hand. Operationally, all three segments—Retail, Programs, and Wholesale Brokerage—demonstrated revenue growth. The Retail segment saw a 10.5% revenue increase driven by acquisitions and organic growth, while the Programs segment grew revenue by 7.9%, supported by strong retention and new business. The Wholesale Brokerage segment also experienced robust growth of 13.3%, boosted by acquisitions and increased profit-sharing commissions. Despite increased expenses, particularly employee compensation and other operating expenses, partly due to acquisition-related costs and integration efforts, the company managed to improve its adjusted EBITDAC margin. The significant debt issuance to fund the Accession acquisition is a key factor to monitor going forward.

Financial Highlights

51 data points
Beta

Revenue

$1.18B

Net Income

$258.00M

21.9% Net Margin

EPS (Diluted)

$0.90

Total Assets

$15.94B

Cash & Equivalents

$2.97B

Free Cash Flow

$334.00M

Financial Statements
Beta
Revenue$1.18B
Operating Expenses$832.00M
Interest Expense$49.00M
Net Income$258.00M
EPS (Basic)$0.90
EPS (Diluted)$0.90
Shares Outstanding (Basic)282.00M
Shares Outstanding (Diluted)283.00M

Key Highlights

  • 1Total revenues increased by 10.4% to $2.69 billion for the first six months of 2025.
  • 2Net income attributable to the Company increased by 2.4% to $563 million for the first six months of 2025.
  • 3Announced a major acquisition of Accession Risk Management Group for approximately $9.8 billion, expected to close in Q3 2025, funded by equity, debt, and cash.
  • 4Completed 29 acquisitions in the first half of 2025, demonstrating continued M&A activity.
  • 5All three operating segments (Retail, Programs, Wholesale Brokerage) reported revenue growth.
  • 6Significant increase in long-term debt, reaching $7.55 billion post-issuance for acquisition financing.
  • 7Cash and cash equivalents significantly increased to $10.92 billion due to proceeds from equity and debt offerings.

Frequently Asked Questions

For the six months ended June 30, 2025, Brown & Brown reported total revenues of $2.69 billion, a 10.4% increase year-over-year. Net income attributable to the Company grew by 2.4% to $563 million, and diluted earnings per share were $1.93. All three business segments—Retail, Programs, and Wholesale Brokerage—showed revenue growth.

Revenue growth was driven by a combination of factors including net new and renewal business (organic growth), contributions from recent acquisitions, and in some segments, an increase in profit-sharing contingent commissions and foreign currency translation. Acquisitions were a significant contributor, accounting for a substantial portion of the revenue increase across segments.

Brown & Brown announced a definitive agreement to acquire Accession Risk Management Group for approximately $9.8 billion, expected to close in the third quarter of 2025, subject to customary closing conditions and regulatory approvals. The transaction is being financed through a combination of a substantial equity offering ($4.3 billion net proceeds), senior notes issuance ($4.2 billion), and cash on hand. This transaction represents a significant strategic move for the company.

The company's total debt significantly increased to $7.55 billion as of June 30, 2025, from $3.82 billion at December 31, 2024. This increase is primarily due to the issuance of new senior notes totaling $4.2 billion to fund the cash portion of the Accession acquisition, alongside other debt activities. While this increases leverage, it provides the capital necessary for a transformative acquisition.