How strong was Brown & Brown's underlying organic growth in Q1 2025?

Organic Revenue grew 6.5% to $1.263 billion, compared with $1.186 billion in the prior-year quarter. This non-GAAP measure strips out acquired revenue (the first 12 months of newly acquired operations), divested business, and foreign currency translation, so it better reflects the performance of the existing book. Total revenue growth of 11.6% was therefore substantially supported by acquisitions.

Did profitability improve in the quarter?

Yes. Income before income taxes grew 17.3% to $427 million, and the pre-tax margin widened to 30.4% from 28.9%. EBITDAC - Adjusted rose 14.8% to $535 million, with the margin up about 110 basis points to 38.1%. Net income attributable to the company increased 13.0% to $331 million.

Are these results final?

Not necessarily. The press release describes unaudited results, and the forward-looking statements list as a risk that the company's determination, while finalizing first-quarter 2025 results, could cause them to differ from the preliminary unaudited figures disclosed here. Investors should watch for the final figures in the quarterly report on Form 10-Q.

What is the dividend and when is it paid?

The Board declared a regular quarterly cash dividend of $0.15 per share, payable May 21, 2025, to shareholders of record as of May 12, 2025. The company paid $43 million in cash dividends during the quarter.

Why did operating cash flow and balance sheet items change so much?

Operating cash flow was $213 million, up from $13 million, but the swing reflects large working-capital movements. Reinsurance recoverables fell from $1.527 billion to $447 million, and losses and loss adjustment reserves dropped from $1.543 billion to $462 million, largely offsetting each other. Goodwill rose to $8.111 billion from $7.970 billion, consistent with acquisition activity, and total debt was reduced by roughly $169 million in payments on long-term debt during the quarter.

BRO 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed April 28, 2025. Cited figures are marked; the original filing is the authoritative source.

Brown & Brown, Inc. (NYSE: BRO) reported first quarter 2025 results on April 28, 2025, showing strong top-line and earnings growth.

Total GAAP revenues rose 11.6% to $1.4 billion^a, commissions and fees grew 12.0%, and Organic Revenue increased 6.5% to $1.263 billion, a key indicator of underlying growth excluding acquisitions, dispositions, and currency effects. Income before income taxes increased 17.3% to $427 million, with the pre-tax margin expanding to 30.4% from 28.9%. Net income attributable to the company rose 13.0% to $331 million, and diluted EPS was $1.15 (up 12.7%), while non-GAAP Diluted EPS - Adjusted reached $1.29 (up 13.2%).

Profitability metrics also improved. EBITDAC - Adjusted grew 14.8% to $535 million^b, and its margin expanded to 38.1% from 37.0%. Management, through CEO J.

Powell Brown, characterized the quarter as in line with the company's plan. The Board declared a regular quarterly dividend of $0.15^c per share, payable May 21, 2025, to holders of record on May 12, 2025. Operating cash flow improved to $213 million from $13 million a year earlier, though this figure is affected by large swings in reinsurance recoverables and loss reserves, which fell sharply during the quarter.

Investors should note that the press release contains preliminary, unaudited figures, and the forward-looking statements explicitly flag the possibility that the company's final first-quarter results may differ from these numbers. Balance sheet changes, including a drop in reinsurance recoverables and losses reserves and an increase in goodwill to $8.1 billion^d following acquisitions, are also relevant. The results are furnished under Item 2.02 and are not deemed filed for Section 18 purposes.

02—Key points

Key Highlights

Total revenues increased 11.6% year over year to $1.404 billion, with commissions and fees up 12.0%.
Organic Revenue grew 6.5% to $1.263 billion, indicating solid underlying growth excluding acquisitions, dispositions, and FX.
Income before income taxes rose 17.3% to $427 million; pre-tax margin expanded to 30.4% from 28.9%.
EBITDAC - Adjusted increased 14.8% to $535 million, with the margin improving to 38.1% from 37.0%.
Diluted EPS was $1.15 (up 12.7%); Diluted EPS - Adjusted was $1.29 (up 13.2%).
Quarterly dividend of $0.15 per share declared, payable May 21, 2025 to holders of record on May 12, 2025.
Operating cash flow of $213 million versus $13 million a year earlier, though heavily influenced by reinsurance and loss reserve movements; goodwill rose to $8.1 billion.

03—Questions

Frequently Asked Questions

How strong was Brown & Brown's underlying organic growth in Q1 2025?
Organic Revenue grew 6.5% to $1.263 billion, compared with $1.186 billion in the prior-year quarter. This non-GAAP measure strips out acquired revenue (the first 12 months of newly acquired operations), divested business, and foreign currency translation, so it better reflects the performance of the existing book. Total revenue growth of 11.6% was therefore substantially supported by acquisitions.
Did profitability improve in the quarter?
Yes. Income before income taxes grew 17.3% to $427 million, and the pre-tax margin widened to 30.4% from 28.9%. EBITDAC - Adjusted rose 14.8% to $535 million, with the margin up about 110 basis points to 38.1%. Net income attributable to the company increased 13.0% to $331 million.
Are these results final?
Not necessarily. The press release describes unaudited results, and the forward-looking statements list as a risk that the company's determination, while finalizing first-quarter 2025 results, could cause them to differ from the preliminary unaudited figures disclosed here. Investors should watch for the final figures in the quarterly report on Form 10-Q.
What is the dividend and when is it paid?
The Board declared a regular quarterly cash dividend of $0.15 per share, payable May 21, 2025, to shareholders of record as of May 12, 2025. The company paid $43 million in cash dividends during the quarter.
Why did operating cash flow and balance sheet items change so much?
Operating cash flow was $213 million, up from $13 million, but the swing reflects large working-capital movements. Reinsurance recoverables fell from $1.527 billion to $447 million, and losses and loss adjustment reserves dropped from $1.543 billion to $462 million, largely offsetting each other. Goodwill rose to $8.111 billion from $7.970 billion, consistent with acquisition activity, and total debt was reduced by roughly $169 million in payments on long-term debt during the quarter.

04—Continue

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