01—Abstract
Summary
Summary of the 10-Q filed July 28, 2025. Cited figures are marked; the original filing is the authoritative source.
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 billiona compared to the prior year.
Net income attributable to the Company grew by 2.4% to $563 millionb, 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%c 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.
02—Key points
Key Highlights
- Total revenues increased by 10.4% to $2.69 billion for the first six months of 2025.
- Net income attributable to the Company increased by 2.4% to $563 million for the first six months of 2025.
- Announced 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.
- Completed 29 acquisitions in the first half of 2025, demonstrating continued M&A activity.
- All three operating segments (Retail, Programs, Wholesale Brokerage) reported revenue growth.
- Significant increase in long-term debt, reaching $7.55 billion post-issuance for acquisition financing.
- Cash and cash equivalents significantly increased to $10.92 billion due to proceeds from equity and debt offerings.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 28, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $1.18B$1.05B | +12.5% |
| Operating Expenses | $832.00M$793.00M | +4.9% |
| Interest Expense | $49.00M$48.00M | +2.1% |
| Net Income | $258.00M$190.00M | +35.8% |
| EPS (Basic) | $0.90$0.67 | +34.3% |
| EPS (Diluted) | $0.90$0.67 | +34.3% |
| Shares Outstanding (Basic) | 282.00M279.00M | +1.1% |
| Shares Outstanding (Diluted) | 283.00M280.00M | +1.1% |
05—Questions
Frequently Asked Questions
What is the financial performance of Brown & Brown for the six months ended June 30, 2025?
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.
What are the key drivers of the 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.
What is the status of the pending acquisition of Accession Risk Management Group?
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.
How has the company's debt position changed?
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.
06—Continue