01—Abstract
Summary
Summary of the 10-Q filed April 27, 2026. Cited figures are marked; the original filing is the authoritative source.
Brown & Brown, Inc. (BRO) reported a strong first quarter for 2026, demonstrating significant growth driven by strategic acquisitions and robust performance in its core operations.
Total revenues surged by 35.4% to $1.901 billiona, fueled by a substantial increase in commissions and fees, which rose by 35.7% to $1.880 billion. This growth was partially bolstered by a significant 125.6% increase in profit-sharing contingent commissions, reflecting improved underwriting results for their carrier partners and increased premium volume. Net income attributable to the Company grew by an impressive 28.7% to $426 million, translating to diluted earnings per share of $1.06, up from $1.15 in the prior year, though slightly down from $1.15 in Q1 2025, highlighting the impact of a large non-cash mark-to-market gain on escrow liability.
The company's strategic acquisitions continue to be a major growth driver, contributing significantly to revenue and expense increases across both the Retail and Specialty Distribution segments. Despite these investments, expense management and operational efficiencies appear to be well-controlled, as demonstrated by the stable EBITDAC Margin - Adjusted.
02—Key points
Key Highlights
- Total revenues increased by 35.4% to $1.901 billion in Q1 2026 compared to Q1 2025.
- Net income attributable to the Company grew by 28.7% to $426 million, with diluted EPS at $1.06.
- Commissions and fees revenue saw a substantial 35.7% increase, driven by both organic growth and acquisitions.
- Profit-sharing contingent commissions more than doubled, increasing by 125.6%, indicating improved underwriting performance for partners.
- The company completed eight acquisitions during the quarter, contributing to revenue growth across both segments.
- EBITDAC - Adjusted increased by 36.6% to $731 million, demonstrating strong operational performance.
- Shareholder returns remain a focus, with the company repurchasing $250 million in common stock via an accelerated share repurchase program and declaring a quarterly dividend of $0.165 per share.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2027filed April 27, 2026Financial Statements
Q1 FY2027 against Q1 FY2026
| Line item | Q1 FY2027Q1 FY2026 | Change |
|---|---|---|
| Revenue | $1.90B$1.40B | +35.4% |
| Net Income | $427.00M$334.00M | +27.8% |
| EPS (Basic) | $1.27$1.16 | +9.5% |
| EPS (Diluted) | $1.06$1.15 | −7.8% |
| Shares Outstanding (Basic) | 331.00M283.00M | +17.0% |
| Shares Outstanding (Diluted) | 337.00M285.00M | +18.2% |
05—Questions
Frequently Asked Questions
How did Brown & Brown's revenue perform in the first quarter of 2026?
Brown & Brown reported a significant increase in total revenues, which grew by 35.4% to $1.901 billion for the three months ended March 31, 2026, compared to $1.404 billion in the same period of 2025. This growth was primarily driven by a 35.7% increase in commissions and fees.
What was the primary driver of the increase in profit-sharing contingent commissions?
The substantial 125.6% increase in profit-sharing contingent commissions was attributed to improved underwriting results for their carrier partners, growth in premium volume, and qualifying for certain contingent commissions that were not met in the prior year. Recent acquisitions also contributed to this increase.
How did the company manage its expenses in light of increased revenues and acquisitions?
While employee compensation and benefits and other operating expenses increased due to acquisitions, the company managed its overall expense ratio. Employee compensation and benefits as a percentage of total revenues decreased slightly to 47.7% from 48.6%. The company's EBITDAC Margin - Adjusted remained strong and slightly increased to 38.5% from 38.1% year-over-year, indicating effective management of operational costs relative to revenue.
What is the company's outlook on liquidity and capital resources?
Brown & Brown maintains a conservative balance sheet and strong liquidity. The company believes its existing cash, cash equivalents, investment portfolio, and available credit facilities are sufficient to meet its liquidity needs for the next twelve months and beyond. They also have substantial incremental borrowing capacity through expansion options on their credit agreements.
06—Continue