Brown & Brown Inc.

04/27/2026 | Press release | Distributed by Public on 04/27/2026 15:09

Press Release dated April 27, 2026 (Form 8-K)

Brown & Brown, Inc. announces first quarter 2026 results,

including total revenues of $1.9 billion, an increase of 35.4%; flat Organic Revenue;

growth of Organic Revenue with Contingents of 2.2%; diluted net income per share of $1.06;

Diluted Net Income Per Share - Adjusted of $1.39; and a quarterly dividend of $0.165 per share

DAYTONA BEACH, Fla., April 27, 2026 - Brown & Brown, Inc. (NYSE:BRO) (the "Company") announced its unaudited financial results for the first quarter of 2026.

For the first quarter ended March 31, 2026, the Company achieved:

•
Total revenues of $1.9 billion, increasing $497 million, or 35.4%, compared to the first quarter of the prior year, with flat Organic Revenue and Organic Revenue with Contingents increasing 2.2%.
•
Income before income taxes of $533 million, increasing 24.8%, with Income Before Income Taxes Margin of 28.0%, compared to 30.4% in the first quarter of the prior year.
•
EBITDAC - Adjusted of $731 million, increasing 36.6%, with EBITDAC Margin - Adjusted of 38.5%, compared to 38.1% in the first quarter of the prior year.
•
Net income attributable to the Company of $426 million, increasing $95 million, or 28.7%, compared to the first quarter of the prior year.
•
Diluted net income per share of $1.06, a decrease of 7.8%, with Diluted Net Income Per Share - Adjusted increasing to $1.39, or 7.8%, each compared to the first quarter of the prior year.

J. Powell Brown, president and chief executive officer of the Company, noted, "Our teammates continue to deliver for our customers in a challenging growth environment."

In addition, the Company today announced that the Board of Directors has declared a regular quarterly cash dividend of $0.165 per share. The dividend is payable on May 20, 2026, to shareholders of record on May 11, 2026.

1

Reconciliation of Commissions and Fees

to Organic Revenue and Organic Revenue with Contingents

(in millions, unaudited)

Three Months Ended March 31,

2026

2025

Commissions and fees

$

1,880

$

1,385

Contingents

(97

)

(43

)

Core commissions and fees

$

1,783

$

1,342

Acquisitions

(435

)

Dispositions

(3

)

Foreign Currency Translation

19

Litigation-Related Impact

(10

)

Organic Revenue

$

1,348

$

1,348

Organic Revenue growth

-

Organic Revenue growth %

0.0

%

Organic Contingents

$

74

$

43

Organic Revenue with Contingents

1,422

1,391

Organic Revenue with Contingents growth

$

31

Organic Revenue with Contingents growth %

2.2

%

See information regarding non-GAAP measures presented later in this press release.

Reconciliation of Diluted Net Income Per Share to

Diluted Net Income Per Share - Adjusted

(unaudited)

Three Months Ended March 31,

Change

2026

2025

$

%

Diluted net income per share(1)

$

1.06

$

1.15

$

(0.09

)

(7.8

%)

Change in estimated acquisition earn-out payables

0.01

(0.01

)

0.02

(Gain)/loss on disposal

-

-

-

Acquisition/Integration Costs

0.06

-

0.06

Amortization

0.26

0.15

0.11

Mark-to-market of escrow liability(2)

-

-

-

Diluted Net Income Per Share - Adjusted

$

1.39

$

1.29

$

0.10

7.8

%

(1)
The calculation of diluted net income per share for the three months ended March 31, 2026 (a) excludes the mark-to-market of escrow liability and (b) includes the escrowed shares within the Company's diluted weighted average number of shares, in each case in accordance with Accounting Standards Codification Topic 260 - Earnings Per Share ("ASC 260"), which requires this treatment in periods where the combined effect of these adjustments is accretive to earnings.
(2)
No adjustment for the mark-to-market of escrow liability was made to Diluted Net Income Per Share - Adjusted for the three months ended March 31, 2026 as the calculation of diluted net income per share for these periods already excludes the mark-to-market of escrow liability in accordance with ASC 260.

See information regarding non-GAAP measures presented later in this press release.

2

Reconciliation of Income Before Income Taxes to EBITDAC and

EBITDAC - Adjusted and Income Before Income Taxes Margin(1) to

EBITDAC Margin and EBITDAC Margin - Adjusted

(in millions, unaudited)

Three Months Ended March 31,

2026

2025

Total revenues

$

1,901

$

1,404

Income before income taxes

$

533

$

427

Income Before Income Taxes Margin(1)

28.0

%

30.4

%

Amortization

116

53

Depreciation

17

11

Interest

99

46

Change in estimated acquisition earn-out payables

5

(4

)

EBITDAC

$

770

$

533

EBITDAC Margin

40.5

%

38.0

%

(Gain)/loss on disposal

(1

)

2

Acquisition/Integration Costs

26

-

Mark-to-market of escrow liability

(64

)

-

EBITDAC - Adjusted

$

731

$

535

EBITDAC Margin - Adjusted

38.5

%

38.1

%

(1)
"Income Before Income Taxes Margin" is defined as income before income taxes divided by total revenues.

See information regarding non-GAAP measures presented later in this press release.

3

Brown & Brown, Inc.

Consolidated Statements of Income

(in millions, except per share data; unaudited)

Three Months Ended March 31,

2026

2025

REVENUES

Commissions and fees

$

1,880

$

1,385

Investment and other income

21

19

Total revenues

1,901

1,404

EXPENSES

Employee compensation and benefits

907

683

Other operating expenses

289

186

(Gain)/loss on disposal

(1

)

2

Amortization

116

53

Depreciation

17

11

Interest

99

46

Change in estimated acquisition earn-out payables

5

(4

)

Mark-to-market of escrow liability

(64

)

-

Total expenses

1,368

977

Income before income taxes

533

427

Income taxes

106

93

Net income before non-controlling interests

427

334

Less: Net income attributable to non-controlling interests

1

3

Net income attributable to the Company

$

426

$

331

Net income per share:

Basic

$

1.27

$

1.16

Diluted

$

1.06

$

1.15

Weighted average number of shares outstanding:

Basic

331

283

Diluted

337

285

4

Brown & Brown, Inc.

Consolidated Balance Sheets

(in millions, except per share data, unaudited)

March 31,
2026

December 31,
2025

ASSETS

Current assets:

Cash and cash equivalents

$

1,003

$

1,079

Fiduciary cash

2,387

2,471

Commission, fees, and other receivables

1,576

1,438

Fiduciary receivables

1,574

1,515

Reinsurance recoverable

590

647

Prepaid reinsurance premiums

869

980

Other current assets

456

484

Total current assets

8,455

8,614

Fixed assets, net

370

367

Operating lease assets

263

269

Goodwill

15,076

15,087

Amortizable intangible assets, net

4,782

4,906

Other assets

754

748

Total assets

$

29,700

$

29,991

LIABILITIES AND EQUITY

Current liabilities:

Fiduciary liabilities

$

3,961

$

3,986

Losses and loss adjustment reserve

611

671

Unearned premiums

938

1,053

Accounts payable

873

990

Accrued expenses and other liabilities

695

875

Current portion of long-term debt

1,238

719

Total current liabilities

8,316

8,294

Long-term debt less unamortized discount and debt issuance costs

6,584

6,894

Operating lease liabilities

238

243

Deferred income taxes, net

899

815

Other liabilities

1,050

1,172

Equity:

Common stock, par value $0.10 per share; authorized 560 shares; issued 359 shares and outstanding 335 shares at 2026, issued 357 shares and outstanding 336 shares at 2025, respectively

36

36

Additional paid-in capital

6,165

6,160

Treasury stock, at cost 24 shares at 2026 and 21 shares at 2025, respectively

(1,098

)

(848

)

Accumulated other comprehensive income

128

210

Non-controlling interests

24

26

Retained earnings

7,358

6,989

Total equity

12,613

12,573

Total liabilities and equity

$

29,700

$

29,991

5

Brown & Brown, Inc.

Consolidated Statements of Cash Flows

(in millions, unaudited)

Three Months Ended March 31,

2026

2025

Cash flows from operating activities:

Net income before non-controlling interests

$

427

$

334

Adjustments to reconcile net income before non-controlling interests to net cash provided by operating activities:

Amortization

116

53

Depreciation

17

11

Non-cash stock-based compensation

26

29

Change in estimated acquisition earn-out payables

5

(4

)

Mark-to-market of escrow liability

(64

)

-

Deferred income taxes

80

(10

)

Net (gain)/loss on sales/disposals of investments, businesses, fixed assets and customer accounts

(1

)

2

Payments on acquisition earn-outs in excess of original estimated payables

(15

)

-

Other

3

2

Changes in operating assets and liabilities, net of effect from acquisitions and divestitures:

Commissions, fees and other receivables (increase)/decrease

(142

)

(180

)

Reinsurance recoverable (increase)/decrease

57

1,080

Prepaid reinsurance premiums (increase)/decrease

110

40

Other assets (increase)/decrease

25

35

Losses and loss adjustment reserve increase/(decrease)

(60

)

(1,081

)

Unearned premiums increase/(decrease)

(116

)

(35

)

Accounts payable increase/(decrease)

(29

)

126

Accrued expenses and other liabilities increase/(decrease)

(184

)

(195

)

Other liabilities increase/(decrease)

7

6

Net cash provided by operating activities

262

213

Cash flows from investing activities:

Additions to fixed assets

(21

)

(17

)

Payments for businesses acquired, net of cash acquired

(17

)

(67

)

Proceeds from sales of businesses, fixed assets and customer accounts

-

9

Other investing activities

-

(4

)

Net cash used in investing activities

(38

)

(79

)

Cash flows from financing activities:

Fiduciary receivables and liabilities, net

(76

)

(90

)

Payments on acquisition earn-outs

(150

)

(26

)

Payments on long-term debt

(19

)

(169

)

Borrowings on revolving credit facility

225

150

Repurchase shares to fund tax withholdings for non-cash stock-based compensation

(26

)

(40

)

Purchase of treasury stock

(250

)

-

Cash dividends paid

(57

)

(43

)

Other financing activities

(1

)

-

Net cash used in financing activities

(354

)

(218

)

Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash inclusive of fiduciary cash

(27

)

22

Net decrease in cash, cash equivalents and restricted cash inclusive of fiduciary cash

(157

)

(62

)

Cash, cash equivalents and restricted cash inclusive of fiduciary cash at beginning of period

3,815

2,502

Cash, cash equivalents and restricted cash inclusive of fiduciary cash at end of period

$

3,658

$

2,440

Conference call, webcast and slide presentation

A conference call to discuss the results of the first quarter of 2026 will be held on Tuesday, April 28, 2026, at 8:00 AM (EDT). The Company may refer to a slide presentation during its conference call. You can access the webcast and the slides from the "Investor Relations" section of the Company's website at BBrown.com.

6

About Brown & Brown

Brown & Brown, Inc. (NYSE: BRO) is a leading insurance brokerage firm delivering comprehensive and customized insurance solutions and specialization since 1939. With a global presence spanning 700+ locations and a team of approximately 23,000 professionals, we are dedicated to delivering scalable, innovative strategies for our customers at every step of their growth journey. Learn more at BBrown.com.

Brown & Brown Inc. published this content on April 27, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on April 27, 2026 at 21:09 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]