Brown & Brown, Inc. announces first quarter 2025 results, including total revenues of $1.4 billion, an increase of 11.6%

Brown & Brown, Inc. (NYSE: BRO) (the "Company") announced its unaudited financial results for the first quarter 2025. Revenues for the first quarter of 2025 under U.S. generally accepted accounting principles ("GAAP") were $1.4 billion, increasing $146 million, or 11.6%, compared to the first quarter of the prior year, with commissions and fees increasing by 12.0% and Organic Revenue increasing by 6.5%. Income before income taxes was $427 million, increasing 17.3% from the first quarter of the prior year with Income Before Income Taxes Margin increasing to 30.4% from 28.9%. EBITDAC - Adjusted was $535 million, increasing 14.8% from the first quarter of the prior year with EBITDAC Margin - Adjusted increasing to 38.1% from 37.0%. Net income attributable to the Company was $331 million, increasing $38 million, or 13.0%, and diluted net income per share increased to $1.15, or 12.7%, with Diluted Net Income Per Share - Adjusted increasing to $1.29, or 13.2%, each as compared to the first quarter of the prior year. J. Powell Brown, president and chief executive officer of the Company, noted, “We continue to execute our plan and are pleased with our performance for the quarter.” In addition, the Company today announced that the Board of Directors has declared a regular quarterly cash dividend of $0.15 per share. The dividend is payable on May 21, 2025, to shareholders of record on May 12, 2025. Reconciliation of Commissions and Fees
to Organic Revenue
(in millions, unaudited)

Three Months Ended March 31,
2025 2024
Commissions and fees $ 1,385 $ 1,237
Profit-sharing contingent commissions (43 ) (46 )
Core commissions and fees $ 1,342 $ 1,191
Acquisitions (79 )
Dispositions (3 )
Foreign Currency Translation (2 )
Organic Revenue $ 1,263 $ 1,186
Organic Revenue growth $ 77
Organic Revenue growth % 6.5 %

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

2025
2024
$
%

Diluted net income per share $ 1.15 $ 1.02 $ 0.13 12.7 %
Change in estimated acquisition earn-out payables (0.01 ) (0.01 ) —
(Gain)/loss on disposal — 0.01 (0.01 )
Amortization 0.15 0.12 0.03
Diluted Net Income Per Share - Adjusted $ 1.29 $ 1.14 $ 0.15 13.2 %

See information regarding non-GAAP measures presented later in this press release. 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,
2025
2024

Total revenues $ 1,404 $ 1,258
Income before income taxes $ 427 $ 364
Income Before Income Taxes Margin(1) 30.4 % 28.9 %
Amortization 53 43
Depreciation 11 11
Interest 46 48
Change in estimated acquisition earn-out payables (4 ) (2 )
EBITDAC $ 533 $ 464
EBITDAC Margin 38.0 % 36.9 %
(Gain)/loss on disposal 2 2
EBITDAC - Adjusted $ 535 $ 466
EBITDAC Margin - Adjusted 38.1 % 37.0 %

(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. Brown & Brown, Inc.
Consolidated Statements of Income
(in millions, except per share data; unaudited)

Three Months Ended March 31,
2025 2024
REVENUES
Commissions and fees $ 1,385 $ 1,237
Investment and other income 19 21
Total revenues 1,404 1,258
EXPENSES
Employee compensation and benefits 683 631
Other operating expenses 186 161
Loss on disposal 2 2
Amortization 53 43
Depreciation 11 11
Interest 46 48
Change in estimated acquisition earn-out payables (4 ) (2 )
Total expenses 977 894
Income before income taxes 427 364
Income taxes 93 71
Net income before non-controlling interests 334 293
Less: Net income attributable to non-controlling interests 3 —
Net income attributable to the Company $ 331 $ 293
Net income per share:
Basic $ 1.16 $ 1.03
Diluted $ 1.15 $ 1.02
Weighted average number of shares outstanding:
Basic 283 281
Diluted 285 283


Brown & Brown, Inc.
Consolidated Balance Sheets
(in millions, except per share data, unaudited)

March 31,
2025 December 31,
2024
ASSETS
Current assets:
Cash and cash equivalents $ 669 $ 675
Fiduciary cash 1,771 1,827
Commission, fees, and other receivables 1,083 895
Fiduciary receivables 1,136 1,116
Reinsurance recoverable 447 1,527
Prepaid reinsurance premiums 480 520
Other current assets 331 364
Total current assets 5,917 6,924
Fixed assets, net 327 319
Operating lease assets 197 200
Goodwill 8,111 7,970
Amortizable intangible assets, net 1,821 1,814
Other assets 387 385
Total assets $ 16,760 $ 17,612
LIABILITIES AND EQUITY
Current liabilities:
Fiduciary liabilities $ 2,907 $ 2,943
Losses and loss adjustment reserve 462 1,543
Unearned premiums 542 577
Accounts payable 481 373
Accrued expenses and other liabilities 463 653
Current portion of long-term debt 75 225
Total current liabilities 4,930 6,314
Long-term debt less unamortized discount and debt issuance costs 3,731 3,599
Operating lease liabilities 186 189
Deferred income taxes, net 701 711
Other liabilities 371 362
Equity:
Common stock, par value $0.10 per share; authorized 560 shares; issued 306 shares and outstanding 287 shares at 2025, issued 306 shares and outstanding 286 shares at 2024, respectively 31 31
Additional paid-in capital 1,107 1,118
Treasury stock, at cost 20 shares at 2025 and 2024 (748 ) (748 )
Accumulated other comprehensive loss 15 (109 )
Non-controlling interests 20 17
Retained earnings 6,416 6,128
Total equity 6,841 6,437
Total liabilities and equity $ 16,760 $ 17,612


Brown & Brown, Inc.
Consolidated Statements of Cash Flows
(in millions, unaudited)

Three Months Ended March 31,
2025
2024

Cash flows from operating activities:
Net income before non-controlling interests $ 334 $ 293
Adjustments to reconcile net income before non-controlling interests to net cash provided by operating activities:
Amortization 53 43
Depreciation 11 11
Non-cash stock-based compensation 29 29
Change in estimated acquisition earn-out payables (4 ) (2 )
Deferred income taxes (10 ) (1 )
Net loss on sales/disposals of investments, businesses, fixed assets and customer accounts 2 2
Payments on acquisition earn-outs in excess of original estimated payables — (13 )
Other 2 —
Changes in operating assets and liabilities, net of effect from acquisitions and divestitures:
Commissions, fees and other receivables (increase)/decrease (180 ) (142 )
Reinsurance recoverable (increase)/decrease 1,080 60
Prepaid reinsurance premiums (increase)/decrease 40 33
Other assets (increase)/decrease 35 —
Losses and loss adjustment reserve increase/(decrease) (1,081 ) (59 )
Unearned premiums increase/(decrease) (35 ) 25
Accounts payable increase/(decrease) 126 (86 )
Accrued expenses and other liabilities increase/(decrease) (195 ) (186 )
Other liabilities increase/(decrease) 6 6
Net cash provided by operating activities 213 13
Cash flows from investing activities:
Additions to fixed assets (17 ) (13 )
Payments for businesses acquired, net of cash acquired (67 ) (76 )
Proceeds from sales of businesses, fixed assets and customer accounts 9 —
Other investing activities (4 ) 1
Net cash used in investing activities (79 ) (88 )
Cash flows from financing activities:
Fiduciary receivables and liabilities, net (90 ) (26 )
Payments on acquisition earn-outs (26 ) (39 )
Payments on long-term debt (169 ) (13 )
Borrowings on revolving credit facility 150 150
Payments on revolving credit facility — (50 )
Repurchase shares to fund tax withholdings for non-cash stock-based compensation (40 ) (54 )
Cash dividends paid (43 ) (38 )
Other financing activities — 3
Net cash used in financing activities (218 ) (67 )
Effect of foreign exchange rate changes in cash and cash equivalents inclusive of fiduciary cash 22 (11 )
Net decrease in cash and cash equivalents inclusive of fiduciary cash (62 ) (153 )
Cash and cash equivalents inclusive of fiduciary cash at beginning of period 2,502 2,303
Cash and cash equivalents inclusive of fiduciary cash at end of period $ 2,440 $ 2,150

Conference call, webcast and slide presentation A conference call to discuss the results of the first quarter of 2025 will be held on Tuesday, April 29, 2025, 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.... Read more

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