10-QPeriod: Q1 FY2027

BROWN & BROWN, INC. Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 27, 2026For Securities:BRO

Summary

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 billion, 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.

Financial Highlights

48 data points
Beta

Revenue

$1.90B

Net Income

$427.00M

22.5% Net Margin

EPS (Diluted)

$1.06

Total Assets

$29.70B

Cash & Equivalents

$1.00B

Free Cash Flow

$241.00M

Financial Statements
Beta
Revenue$1.90B
Net Income$427.00M
EPS (Basic)$1.27
EPS (Diluted)$1.06
Shares Outstanding (Basic)331.00M
Shares Outstanding (Diluted)337.00M

Key Highlights

  • 1Total revenues increased by 35.4% to $1.901 billion in Q1 2026 compared to Q1 2025.
  • 2Net income attributable to the Company grew by 28.7% to $426 million, with diluted EPS at $1.06.
  • 3Commissions and fees revenue saw a substantial 35.7% increase, driven by both organic growth and acquisitions.
  • 4Profit-sharing contingent commissions more than doubled, increasing by 125.6%, indicating improved underwriting performance for partners.
  • 5The company completed eight acquisitions during the quarter, contributing to revenue growth across both segments.
  • 6EBITDAC - Adjusted increased by 36.6% to $731 million, demonstrating strong operational performance.
  • 7Shareholder 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.

Frequently Asked Questions

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.

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.

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.

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.