Brown & Brown (BRO) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues reached $1.9 billion, up 35.4% year-over-year, driven by acquisitions, higher contingent commissions, and stable organic revenue.

• Adjusted diluted net income per share rose 7.8% to $1.39, while net income attributable to the company increased 28.7% to $426 million.

• Cash flow from operations was $262 million, up 23% year-over-year, reflecting robust operational performance.

• Eight acquisitions completed in Q1, with integration progressing and expected EBITDA synergies of $30–$40 million in 2026.

• Technology and AI investments are driving efficiency, underwriting capacity, and customer experience improvements.

Financial highlights

• Adjusted EBITDAC grew 36.6% to $731 million, with an adjusted margin of 38.5%, up 40 bps year-over-year.

• Income before income taxes increased 24.8% to $533 million; adjusted income before income taxes rose 28.7% to $615 million.

• Core commissions and fees grew 32.9% to $1,783 million; profit-sharing contingent commissions surged 125.6% to $97 million.

• Diluted net income per share was $1.06; dividends per share increased 10% to $0.165.

• Cash flow to revenue ratio at 14%; total assets stood at $29.7 billion as of March 31, 2026.

Outlook and guidance

• Sequential organic growth improvement expected each quarter in 2026, with upper bound of 2.5% by year-end.

• Contingent commissions anticipated to be higher for the full year, following a strong Q1.

• Management expects continued growth from acquisitions and disciplined expense management, with sufficient liquidity to support operations.

• Catastrophe property rates expected to remain under pressure; Q2 is a heavy property quarter.