Brown & Brown (BRO) Q4 2025 earnings summary

Executive summary

• Achieved strong top and bottom line growth, with Q4 revenue up 35.7% to $1.6B and full year revenue up 22.8% to $5.9B.

• Adjusted diluted EPS rose 8.1% in Q4 to $0.93 and 10.9% for the year to $4.26, while reported EPS declined.

• Completed the largest acquisition in company history (Accession), adding over 5,000 teammates and driving revenue and margin expansion.

• Faced a significant team lift by a competitor, resulting in the departure of 275 employees and $23 million in associated revenue at risk.

• Acquisitions contributed $1.8B in annual revenue, with 43 deals closed during the year.

Financial highlights

• Q4 organic revenue decreased 2.8%, while full-year organic revenue increased 2.8%.

• Q4 adjusted EBITDAC margin was flat at 32.9%; full year margin improved 70bps to 35.9%.

• Q4 adjusted net income attributable to the company increased 28.6% year-over-year; full year adjusted net income grew 22.3% to $1.35B.

• Cash flow from operations was $1.45B, up 23.5% year-over-year, representing 24.6% of total revenues.

• Dividends per share increased 10% in Q4 and up to 13.9% for the year.

Outlook and guidance

• Expect modest improvement in Retail organic growth over 2.8% in 2026, excluding the impact of the team lift.

• Specialty Distribution organic growth anticipated to be flat in Q1 due to prior year flood claims and cat property rate declines, with improvement expected later in the year.

• Projecting lower investment income and flat underlying margins in 2026; long-term adjusted EBITDAC margin target raised to 32%-37%.

• Effective tax rate expected to be 24%-25% in 2026.

• Economic backdrop remains positive, with inflation and labor markets as key focus areas.