BRO earnings analysis
What we found in BRO's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Brown & Brown posted strong acquisition-led Q2 growth, with revenue up 30.4% to $1.676 billion and diluted GAAP EPS up to $0.84 from $0.78. Underlying momentum weakened: consolidated Organic Revenue fell 0.7%, driven by a 3.5% organic decline in Specialty Distribution, and consolidated adjusted EBITDAC margin declined to 35.7% from 36.7%. Cash generation was sound, with six-month operating cash flow of $608 million, but debt rose to $7.759 billion and interest expense nearly doubled year over year.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and diluted EPS increased YoY
- Q2 revenue rose $391 million, or 30.4%, to $1.676 billion from $1.285 billion. Diluted GAAP EPS increased $0.06 to $0.84 from $0.78.
- Retail delivered positive organic growth
- Retail revenue increased 35.9%, or $250 million, to $947 million. Retail organic revenue grew 1.5%, while Organic Revenue with Contingents grew 2.5%.
- Specialty Distribution revenue expanded
- Specialty Distribution revenue increased 28.1%, or $158 million, to $721 million. Its adjusted EBITDAC was $308 million, up $45 million or 17.1%.
- Operating cash flow improved with low capex
- Six-month operating cash flow increased $70 million to $608 million. Capital expenditures were $38 million, equal to approximately 1.1% of $3.577 billion of six-month revenue.
- Liquidity profile remains solid
- Liquidity remained substantial: cash and cash equivalents were $918 million and available revolver capacity was $975 million at June 30. The current ratio improved to 1.13 from 1.04 at December 31.
- Acquisitions drove reported growth
- The company completed 14 acquisitions in the first six months and generated $829 million of acquired core commissions and fees with no comparable prior-year revenue.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Organic revenue turned negative
- Consolidated Organic Revenue declined 0.7% in Q2, versus 3.6% growth a year earlier. The $393 million acquisition contribution to core commissions and fees exceeded the $365 million reported core-commission-and-fee increase.
- Specialty organic growth and margin weakened
- Specialty Distribution Organic Revenue declined 3.5%, and its adjusted EBITDAC margin fell 400 basis points to 42.7% from 46.7%, reflecting declining CAT-property rates and investments in European capabilities.
- Higher leverage and financing burden
- Total debt increased $146 million from December 31 to $7.759 billion, while Q2 interest expense rose $49 million, or 96.1%, year over year. Estimated acquisition earn-out payables were another $310 million at June 30.
- No formal risk-factor update; deal exposures remain
- Management reported no material changes to the risk factors disclosed in its 2025 Form 10-K. Nonetheless, the filing identifies $552 million of escrow liability and $190 million of uncapped recorded acquisition earn-out obligations as transaction-related uncertainty.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.84
- Gross margin
- 100.0%
- Segment
- Retail revenue: $947 million (+35.9% YoY); Organic Revenue growth: 1.5%; Organic Revenue with Contingents growth: 2.5%.
- Segment
- Specialty Distribution revenue: $721 million (+28.1% YoY); Organic Revenue growth: -3.5%; Organic Revenue with Contingents growth: -1.6%.
What they said about what is next.
The 10-Q provides no quantitative revenue or EPS outlook. Management states that existing cash, operating cash generation and revolving-credit availability should satisfy normal liquidity needs over the next 12 months and long term.
The filing reads about the same as the one before it.
What came before.
- 10-Q · April 27, 2026
- Brown & Brown reported Q1 2026 commissions and fees-driven revenues of $1,901.0 million, up 35.4% versus Q1 2025 ($1,404.0 million). GAAP diluted EPS was $1.06, down from $1.15 in Q1 2025, while operating performance…
- 10-K · February 12, 2026
- Brown & Brown reports multi-year revenue growth driven by acquisitions and stronger Specialty Distribution performance: total commissions and fees rose to $5,763 million in 2025 from $4,705 million in 2024 and $4,199…
- 10-Q · July 28, 2025
- Brown & Brown reported quarterly revenue of $1,285.0 million (up $107.0M or 9.1% vs. $1,178.0M in Q2 2024) while diluted EPS declined to $0.78 from $0.90 a year ago. Operating profitability compressed: income before…
- 10-Q · April 28, 2025
- Brown & Brown reported Q1 revenues of $1,404.0M, up $146.0M (11.6%) versus Q1 2024, with diluted EPS of $1.15 versus $1.02 in the prior year. Operating income improved to $473M (33.7% of revenue) from $412M (32.8%), and…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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