Baldwin Insurance Group (BWIN) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 29% year-over-year to $532.2 million, with adjusted EBITDA of $137.2 million, and adjusted EPS of $0.63; organic revenue growth was 2%, impacted by Medicare, QBE, and accounting changes, but normalized organic growth would have been higher.

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

• Major partnerships and acquisitions (CAC, Obie, Capstone) closed in January 2026, contributing significantly to revenue and synergy realization, with CAC integration ahead of plan and 80% of targeted expense synergies actioned.

• AI initiatives and the Catalyst program are driving operational efficiency, productivity gains, and are expected to deliver over $50 million in savings by 2028.

• Embedded mortgage business launched with Fairway Independent Mortgage, and strong cross-sell momentum observed.

Financial highlights

• Adjusted EBITDA margin was 25.8%–26%, down from 27.5%–28% year-over-year, due to CAC consolidation and UCTS profit-sharing contract.

• Adjusted free cash flow was roughly flat or slightly negative, impacted by working capital use and partnership costs.

• Net leverage increased to 4.3x, with $50 million in share repurchases (2.2 million shares) in Q1.

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

• Cash and cash equivalents at quarter-end were $146–$146.4 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 and double-digit organic growth run rate by year-end.

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

• Management expects continued revenue growth from partnerships and organic initiatives, with sufficient liquidity for operations and investments.