BRO · Brown & Brown, Inc.

Brown & Brown, Inc. delivered first quarter 2026 results reflecting robust top-line growth primarily from acquisitions, with total revenues surging 35.4% to $1.901 billion, including $435 million contribution from recent deals offsetting flat core organic revenue of $1.348 billion. Organic revenue with contingents grew modestly 2.2% to $1.422 billion, indicating steady underlying demand amid a 'challenging growth environment' as noted by CEO J. Powell Brown. GAAP profitability showed mixed results: income before taxes rose 24.8% to $533 million but margin compressed to 28.0% from 30.4% due to elevated expenses, including employee compensation up to $907 million from acquisition integration and amortization doubling to $116 million. Net income attributable to the Company increased 28.7% to $426 million, though diluted EPS dipped 7.8% to $1.06, impacted by ASC 260 adjustments for escrowed shares; adjusted EPS rose 7.8% to $1.39, highlighting operational strength post normalizing for $26 million acquisition/integration costs, $5 million earn-out changes, and a $64 million escrow liability gain. Adjusted EBITDAC expanded 36.6% to $731 million with slight margin improvement to 38.5%, underscoring earnings power. Balance sheet remains solid with $1.003 billion cash equivalents and total debt at $7.822 billion supporting M&A strategy. Operating cash flow of $262 million funded $150 million earn-out payments, $250 million treasury repurchases, and $57 million dividends. The board's $0.165 quarterly dividend declaration signals confidence in cash generation, payable May 20 to May 11 record holders. No forward guidance provided, but results affirm acquisition-driven scale amid flat organics.