10-QPeriod: Q2 FY2027

BROWN & BROWN, INC. Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 27, 2026For Securities:BRO

Summary

Brown & Brown, Inc. (BRO) reported a strong second quarter for 2026, demonstrating robust revenue growth and improved profitability. Total revenues increased by 30.4% year-over-year to $1,676 million, driven primarily by a significant 32.4% surge in commissions and fees. This growth was fueled by contributions from recent acquisitions, a notable increase in profit-sharing contingent commissions, and solid performance in both the Retail and Specialty Distribution segments. Net income attributable to the Company rose by 24.7% to $288 million for the quarter, translating to diluted earnings per share of $0.84, up from $0.78 in the prior year. The company also continued its strategic acquisition activities, completing 14 transactions during the first half of the year, while managing its capital effectively through share repurchases and dividend payments. The balance sheet remains strong, with total assets of $29.9 billion and total equity of $12.6 billion, indicating continued financial stability and capacity for future growth.

Key Highlights

  • 1Total revenues grew 30.4% to $1,676 million in Q2 2026 compared to Q2 2025.
  • 2Commissions and fees increased by 32.4% to $1,654 million, driven by acquisitions and a 88.9% surge in contingent commissions.
  • 3Net income attributable to the Company increased by 24.7% to $288 million for the quarter.
  • 4Diluted earnings per share (EPS) rose to $0.84 from $0.78 in the prior year's second quarter.
  • 5The company completed 14 acquisitions in the first six months of 2026, demonstrating ongoing strategic growth initiatives.
  • 6Employee compensation and benefits increased by 30.9% but remained stable as a percentage of revenue at 50.0%, indicating efficient cost management relative to revenue growth.
  • 7The company maintained a strong liquidity position with $918 million in cash and cash equivalents as of June 30, 2026.

Frequently Asked Questions

Revenue growth was primarily driven by a substantial increase in commissions and fees, up 32.4% year-over-year. This was significantly boosted by contributions from recent acquisitions, a strong performance in profit-sharing contingent commissions (up 88.9%), and solid underlying growth from both the Retail and Specialty Distribution segments. Acquisitions accounted for a significant portion of the core commission and fee increase.

Profitability improved significantly. Net income attributable to the Company increased by 24.7% to $288 million. Diluted earnings per share (EPS) rose to $0.84 from $0.78 in the prior year's second quarter. The income before income taxes margin was 22.9%, a slight decrease from 24.2% in the prior year, but adjusted EBITDAC margin remained strong at 35.7%.

Brown & Brown continues an active acquisition strategy, completing 14 acquisitions in the first six months of 2026. These acquisitions are a key driver of revenue growth, contributing significantly to the increase in core commissions and fees. While acquisitions increase expenses like employee compensation and amortization, the company appears to be effectively integrating them, as evidenced by stable employee compensation as a percentage of revenue and continued profitability.

The company maintains a strong financial position. Total assets were $29.9 billion and total equity was $12.6 billion as of June 30, 2026. Liquidity remains robust, with $918 million in cash and cash equivalents. The company also has significant borrowing capacity under its revolving credit facility, indicating ample resources to meet its obligations and fund future growth.