Ryan Specialty Group (RYAN) Q1 2025 earnings summary

Executive summary

• Total revenue for Q1 2025 increased 25% year-over-year to $690.2 million, driven by 12.9% organic growth and significant M&A contributions, including Velocity Risk Underwriters and USQ Risk.

• Adjusted EBITDAC/EBITDA rose 27.5% to $200.5 million, with margin expanding to 29.1%.

• Adjusted EPS increased 11.4% to $0.39, while adjusted net income grew 13% to $107.8 million.

• Net income turned negative, with a GAAP net loss of $4.4 million to $27.6 million, primarily due to a $48.1 million non-recurring, non-cash tax expense from the Velocity acquisition reorganization.

• Strong performance attributed to new client wins, expanded relationships, and E&S market growth.

Financial highlights

• Net commissions and fees rose 25.7% to $676.1 million; fiduciary investment income was $14.0 million.

• Operating income increased 38% to $100.2 million year-over-year.

• Adjusted EBITDAC/EBITDA margin improved to 29.1% from 28.5% year-over-year.

• Adjusted net income margin was 15.6%, down from 17.3% year-over-year.

• Net income margin dropped to (0.6)% from 7.4% year-over-year, impacted by non-cash tax expense.

Outlook and guidance

• Full-year 2025 guidance maintained: organic revenue growth of 11–13% and adjusted EBITDA/EBITDAC margin of 32.5–33.5%.

• Management expects continued growth through strategic acquisitions, broker relationship expansion, and delegated authority business.

• Investments in technology and talent are planned to support long-term growth and innovation.

• Expect continued modest growth in property and strong growth in casualty for the remainder of the year.

• M&A remains a top capital allocation priority, with a robust pipeline of deals.