01—Abstract
Summary
Summary of the 10-Q filed October 28, 2025. Cited figures are marked; the original filing is the authoritative source.
Brown & Brown, Inc. reported solid financial results for the nine months ended September 30, 2025.
Total revenues increased by 18.6% to $4,295 milliona, primarily driven by a substantial increase in commissions and fees, which rose by 18.0% to $4,183 million. This growth was fueled by both organic revenue increases of 4.6% and significant contributions from acquisitions, most notably the acquisition of Accession Risk Management Group for $9.6 billion. Net income attributable to the Company for the nine-month period remained stable at $790 million, while diluted earnings per share slightly decreased to $2.57 from $2.73 in the prior year, influenced by a larger share count following the equity offering.
The company's balance sheet reflects substantial growth, with total assets increasing significantly to $29,354 millionb from $17,612 million at year-end 2024, largely due to acquisitions and a substantial increase in goodwill and amortizable intangible assets. Long-term debt also increased significantly to fund acquisitions. Despite higher interest expenses, the company generated strong operating cash flows of $1,006 million for the nine months, enabling it to manage its increased debt levels and fund its operations and investments.
02—Key points
Key Highlights
- Total revenues grew 18.6% year-over-year to $4.3 billion for the nine months ended September 30, 2025, driven by strong commission and fee income.
- The company completed a significant acquisition of Accession Risk Management Group for $9.6 billion, funded through a combination of equity and debt, which substantially increased assets and goodwill.
- Net income attributable to the Company was stable at $790 million for the nine months, though diluted EPS decreased to $2.57 due to a higher share count.
- Operating cash flow remained robust at $1,006 million for the nine months, indicating strong operational performance despite increased debt.
- Employee compensation and benefits increased by 16.1% year-over-year for the nine months, largely due to integration costs from recent acquisitions.
- Interest expense more than doubled for the nine months, reflecting the higher debt levels incurred to finance acquisitions.
- The company's balance sheet expanded significantly, with total assets reaching $29.4 billion, primarily driven by acquisitions and resulting in a substantial increase in goodwill and intangible assets.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 28, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $1.19B$1.07B | +11.0% |
| Operating Expenses | $869.00M$826.00M | +5.2% |
| Net Income | $239.00M$176.00M | +35.8% |
| EPS (Basic) | $0.82$0.62 | +32.3% |
| EPS (Diluted) | $0.81$0.62 | +30.6% |
| Shares Outstanding (Basic) | 282.00M280.00M | +0.7% |
| Shares Outstanding (Diluted) | 284.00M281.00M | +1.1% |
05—Questions
Frequently Asked Questions
What was the primary driver of revenue growth for Brown & Brown in the first nine months of 2025?
The primary driver of revenue growth was the substantial increase in commissions and fees, up 18.0% to $4,183 million. This growth was a combination of organic revenue increases (4.6%) and significant contributions from acquisitions, particularly the large acquisition of Accession Risk Management Group.
How did the acquisition of Accession Risk Management Group impact the company's financial statements?
The acquisition of Accession Risk Management Group for $9.6 billion significantly increased Brown & Brown's total assets to $29.4 billion, up from $17.6 billion at the end of 2024. This also led to a substantial increase in goodwill and amortizable intangible assets. The acquisition was funded through a combination of equity and debt, resulting in higher interest expenses and a larger share count impacting earnings per share.
What is the company's outlook on its debt levels following the recent acquisitions?
Brown & Brown has significantly increased its total debt to $7.7 billion as of September 30, 2025, to finance its acquisitions. Despite this increase, the company generated strong operating cash flow of $1,006 million for the nine months, which is expected to support its liquidity needs and debt servicing. The company also has access to substantial borrowing capacity under its credit facilities.
How did profit-sharing contingent commissions perform in the first nine months of 2025?
Profit-sharing contingent commissions increased significantly by 46.4% to $161 million for the nine months ended September 30, 2025. This growth was attributed to improved underwriting results, increased premium volume, qualifying for new profit-sharing commissions, and contributions from recent acquisitions.
06—Continue