Baldwin Insurance Group, Inc. (BWIN): Results of Operations and Financial Condition
Baldwin Insurance Group, Inc. (BWIN) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 THE BALDWIN GROUP ANNOUNCES SECOND QUARTER 2026 RESULTS — Second Quarter Total Revenue Growth of 30% to $492.9 Million — — Second Quarter Net Loss of $56.0 Million; Adjusted EBITDA (1) Growth of 37% to $116.7 Million — — Second Quarter Diluted Loss Per Share of $0.42
How this was made
The 30-second read
Why it matters
Traders can update near-term expectations using the disclosed revenue growth, adjusted profitability, and cash-flow improvements, and reassess the gap between GAAP losses and adjusted earnings.
Market read
Fresh quarterly numbers and cash-flow metrics are likely to influence valuation and positioning ahead of subsequent quarters.
What to watch
Organic revenue growth is only 2% YoY (with organic growth adjustments), so investors may focus on whether the 30% total growth is sustainable and how much is driven by partnerships versus organic momentum.
Second Quarter Total Revenue Growth of 30% to $492.9 Million; Second Quarter Net Loss of $56.0 Million; Adjusted EBITDA Growth of 37% to $116.7 Million
Revenue, adjusted EBITDA, adjusted diluted EPS and adjusted free cash flow increased year-over-year, but the Company reported a GAAP net loss and an operating loss for the quarter.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $ 492,939 (in thousands) | – | 30% |
| Commissions and feesGAAP | $ 488,789 (in thousands) | – | – |
| Investment incomeGAAP | $ 4,150 (in thousands) | – | – |
| Organic revenue growthnon-GAAP | 2% | – | 2% year-over-year |
| CAC Group total revenue growthother | 23% | – | 23% year-over-year |
| Colleague compensation and benefitsGAAP | $ 264,323 (in thousands) | – | – |
| Outside commissionsGAAP | $ 71,798 (in thousands) | – | – |
| Other operating expensesGAAP | $ 94,058 (in thousands) | – | – |
| Amortization expenseGAAP | $ 56,027 (in thousands) | – | – |
| Change in fair value of contingent considerationGAAP | $ 12,303 (in thousands) | – | – |
| Depreciation expenseGAAP | $ 2,773 (in thousands) | – | – |
| Total operating expensesGAAP | $ 501,282 (in thousands) | – | – |
| Operating income (loss)GAAP | $ (8,343) (in thousands) | – | – |
| Interest expense, netGAAP | $ (45,666) (in thousands) | – | – |
| Loss on extinguishment and modification of debtGAAP | $ (129) (in thousands) | – | – |
| Net income (loss)GAAP | $ (55,981) (in thousands) | – | – |
| Net income (loss) attributable to BaldwinGAAP | $ (38,995) (in thousands) | – | – |
| Diluted earnings (loss) per shareGAAP | $ (0.42) | – | – |
| Adjusted net incomenon-GAAP | $68.5 million | – | – |
| Adjusted diluted EPSnon-GAAP | $0.48 | – | 14% year-over-year |
| Adjusted EBITDAnon-GAAP | $116.7 million | – | 37% |
| Net loss marginGAAP | 11% | – | – |
| Adjusted EBITDA marginnon-GAAP | 23.7% | – | 110 basis point expansion |
| Net cash provided by operating activitiesGAAP | $45.6 million | – | – |
| Adjusted free cash flownon-GAAP | $46.4 million | – | 437% year-over-year |
| Six months total revenuesGAAP | $ 1,025,174 (in thousands) | – | 29% |
| Six months net income (loss)GAAP | $ (57,877) (in thousands) | – | – |
| Six months diluted earnings (loss) per shareGAAP | $ (0.39) | – | – |
| Six months adjusted EBITDAnon-GAAP | $254.0 million | – | 27% year-over-year |
| Six months adjusted EBITDA marginnon-GAAP | 24.8% | – | – |
| Six months net cash provided by operating activitiesGAAP | $39.5 million | – | – |
| Six months adjusted free cash flownon-GAAP | $46.2 million | – | 34% year-over-year |
What drove it
- Total revenue increased 30% year-over-year to $492.9 million.
- Organic revenue growth was 2% year-over-year.
- CAC Group total revenue growth was 23% year-over-year.
- Management cited strong contribution from recent partnerships.
- Management cited sales velocity of 30% in its combined IAS business and normalized organic growth of 8%.
Concerns
- GAAP net loss was $56.0 million and GAAP diluted loss per share was $0.42.
- Operating income (loss) was $ (8,343) (in thousands), compared with operating income of $ 27,940 (in thousands) in the prior-year period.
- Interest expense, net was $ (45,666) (in thousands), compared with $ (31,320) (in thousands) in the prior-year period.
- Other operating expenses were $ 94,058 (in thousands), compared with $ 56,119 (in thousands) in the prior-year period.
- Six months adjusted EBITDA margin was 24.8%, compared to 25.2% in the prior-year period.
What to watch
- Management expects previously cited idiosyncratic, one-time headwinds to transition into tailwinds in the back half of 2026.
- Organic revenue growth and normalized organic growth.
- The contribution from recent partnerships and CAC Group total revenue growth.
- Adjusted EBITDA margin following the 110 basis point expansion to 23.7%.
- Interest expense and the path from operating loss to GAAP profitability.
Balance sheet and cash flow
- As of June 30, 2026, cash and cash equivalents were $184.5 million.
- The Company had $259.4 million of borrowing capacity under its revolving credit facility.
- Second quarter net cash provided by operating activities was $45.6 million.
- Second quarter adjusted free cash flow was $46.4 million.
- Year-to-date net cash provided by operating activities was $39.5 million.
- Year-to-date adjusted free cash flow was $46.2 million.
Analysis
Baldwin reported second-quarter total revenue of $492.9 million, up 30% year-over-year, with commissions and fees of $ 488,789 (in thousands) and investment income of $ 4,150 (in thousands). Organic revenue growth was 2% year-over-year, while CAC Group total revenue growth was 23% year-over-year. Management attributed momentum to recent partnerships and cited sales velocity of 30% in its combined IAS business and normalized organic growth of 8%.
Profitability was mixed. Adjusted EBITDA increased 37% to $116.7 million and adjusted EBITDA margin expanded 110 basis points to 23.7% from 22.6% in the prior-year period. Adjusted net income was $68.5 million and adjusted diluted EPS increased 14% year-over-year to $0.48. However, total operating expenses were $ 501,282 (in thousands), exceeding total revenues of $ 492,939 (in thousands), producing an operating loss of $ (8,343) (in thousands), versus operating income of $ 27,940 (in thousands) a year earlier.
GAAP results remained negative. Net income (loss) was $ (55,981) (in thousands), and net income (loss) attributable to Baldwin was $ (38,995) (in thousands). Diluted earnings (loss) per share was $ (0.42), compared with $ (0.05) in the prior-year period. Interest expense, net increased to $ (45,666) (in thousands) from $ (31,320) (in thousands), while other operating expenses increased to $ 94,058 (in thousands) from $ 56,119 (in thousands).
Cash generation improved materially on the reported non-GAAP measure. Net cash provided by operating activities was $45.6 million and adjusted free cash flow increased 437% year-over-year to $46.4 million. At June 30, 2026, cash and cash equivalents were $184.5 million and borrowing capacity under the revolving credit facility was $259.4 million. No capital-return activity was reported in the supplied filing text.
For the first six months, revenue increased 29% year-over-year to $1.0 billion, adjusted EBITDA grew 27% year-over-year to $254.0 million, and adjusted free cash flow increased 34% year-over-year to $46.2 million. The six-month adjusted EBITDA margin was 24.8%, compared with 25.2% in the prior-year period, and the Company reported a GAAP net loss of $57.9 million. The release did not provide forward financial guidance; management instead stated that it believes one-time headwinds have largely been lapped and will transition into tailwinds in the back half of 2026.
Management, verbatim
We are thrilled with our momentum as reflected in our strong second quarter results. Total revenue grew 30% to $492.9 million, adjusted EBITDA grew 37% to $116.7 million, and adjusted free cash flow increased 437% to $46.4 million.
Trevor Baldwin, Chief Executive Officer of The Baldwin Group
As we previously highlighted, we have largely lapped the idiosyncratic, one-time headwinds that we believe will transition into tailwinds for our business in the back half of 2026. When combined with the strong contribution from our recent partnerships, we continue to win market share at an outsized rate, evidenced by sales velocity of 30% in our combined IAS business and normalized organic growth of 8%.
Trevor Baldwin, Chief Executive Officer of The Baldwin Group
Not in the filing
stated, not guessed- Forward financial guidance for revenue, gross margin, operating expenses, tax rate, EPS, adjusted EBITDA, cash flow, or other metrics.
- Previous outlook section and prior-guidance comparison.
- Gross profit and gross margin.
- Total debt and debt maturities.
- Capital returns, including share repurchases and dividends.
- Segment revenue figures.
- Quarter-over-quarter comparisons.
- Prior-year values for adjusted net income, adjusted EBITDA, adjusted free cash flow, and adjusted diluted EPS.
- Full balance-sheet figures beyond cash and revolving-credit-facility borrowing capacity in the supplied filing text.
- Complete cash-flow statement and capital-expenditure figures in the supplied filing text.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K with Exhibit 99.1 announcing Baldwin’s second quarter 2026 operating results and liquidity position.
Ticker impact
Baldwin reported Q2 2026 results with 30% revenue growth to $492.9M, GAAP net loss of $56.0M, and adjusted EBITDA up 37% to $116.7M.
Likely upside bias versus GAAP due to strong adjusted EBITDA and sharply higher adjusted free cash flow, but GAAP losses may cap the move.
Key disclosed datapoints include revenue growth, adjusted profitability expansion (110 bps EBITDA margin expansion), and a 437% jump in adjusted free cash flow, all of which are actionable for earnings-model updates.
Market effects
Independent insurance distribution firms may see read-across on demand and margin durability from adjusted EBITDA and cash-flow trends.
No specific regional catalyst beyond company-level performance.
Limited global spillover; primarily a US-listed small-cap earnings update.
Counterpoint
GAAP net loss of $56.0M and 11% net loss margin suggest underlying earnings quality may remain weaker than adjusted metrics imply.
Key entities
- public_companyBaldwin Insurance Group, Inc.
NASDAQ-listed independent insurance distribution firm reporting Q2 2026 results on Form 8-K.
- executiveTrevor Baldwin
CEO quoted emphasizing momentum, lapped headwinds, and partnership contribution.
