Ryan Specialty Group (RYAN) investor relations material

Executive summary

• Q3 revenue rose 4.7% to $790.0M, with 4.0% organic growth; adjusted EBITDAC increased 3.8% to $244.4M and adjusted diluted EPS rose 8.5% to $0.51.

• Results reflected challenging pricing and a 15.0% prior-year organic-growth comparison; retention, new business wins and cost discipline supported performance.

• 9M organic revenue growth was 7.3%, adjusted EBITDAC growth 7.9% and adjusted EPS growth 15.1%.

Financial highlights

• Q3 net income increased 40.6% to $88.0M; GAAP diluted EPS was $0.29 versus $0.20, while adjusted net income rose 4.1% to $137.1M.

• Q3 operating income rose 27.1% to $140.8M; net commissions and fees increased 4.8% to $775.1M, while fiduciary investment income declined 1.0% to $14.9M.

• Adjusted EBITDAC margin was 30.9%, down 30 bps YoY; 9M margin was 32.1% versus 32.4%.

• 9M revenue grew 8.8% to $2,501.8M; adjusted EBITDAC increased 7.9% to $803.4M and adjusted diluted EPS was $1.75 versus $1.52.

Outlook and guidance

• FY 2026 organic revenue growth remains guided toward the higher end of the mid-single-digit range; adjusted EBITDAC margin is expected to decline ~50 bps, improved from prior guidance of down 50–100 bps.

• Q4 outlook reflects continued property pricing declines and competition, more normalized construction growth, binding-authority pressure, moderate transactional-liability growth and builders-risk softness.

• Q4 GAAP interest expense, net of interest income on operating funds, is expected to be ~$59M; the adjusted tax rate is expected to remain near 26%.

• Empower is expected to incur $160M of cumulative restructuring charges through 2028 and generate $80M of annual savings in 2029; actions are expected to conclude by end-2028.

• No specific 2027 guidance; talent investment, delegated-authority expansion, and data-center and technology-infrastructure demand were cited as growth supports.