Baldwin Insurance Group (BWIN) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $532.2 million, up 29% year-over-year, with adjusted EBITDA of $137.2 million, up 21% year-over-year, and adjusted EPS of $0.63.

• Organic revenue growth was 2%, impacted by Medicare, QBE builder book transition, and IAS revenue recognition changes; normalized organic growth, including new partnerships, was up to 9%.

• Net loss was $1.9 million, or $0.02 per share, primarily due to higher operating expenses and a significant Tax Receivable Agreement liability.

• Three major partnerships/acquisitions (CAC, Obie, Capstone) closed in January, collectively growing 27% year-over-year and driving significant synergy realization.

• CAC Group integration is ahead of schedule, with 80% of targeted expense synergies actioned and $1 million in revenue synergies realized in Q1.

Financial highlights

• Adjusted EBITDA margin was 25.8%–26%, down 170 bps year-over-year, due to CAC consolidation and UCTS profit-sharing contract.

• Adjusted free cash flow was $(0.2) million, impacted by working capital use and partnership costs.

• Net leverage at quarter-end was 4.3x, reflecting share repurchases, partnership activity, and increased debt.

• Operating expenses rose to $633.5 million, with a $128.8 million Tax Receivable Agreement expense.

• Cash and cash equivalents at quarter-end were $146 million, with $393 million available on the revolving facility.

Outlook and guidance

• Full-year 2026 revenue guidance is $2.01B–$2.05B, with organic growth expected to accelerate to double digits by Q4.

• Q2 2026 revenue guidance is $485–$495 million, with mid-single-digit organic growth and adjusted EPS of $0.44–$0.48.

• Management expects to exit 2026 with a double-digit organic growth run rate as headwinds subside.

• Rate and exposure headwinds in property expected to be 400–500 bps in Q2, moderating in the second half.

• Interest expense projected to rise due to higher borrowings, partially offset by lower expected rates.