third quarter 2026
Filed Oct 26, 2026Third-quarter total revenues were $1.7 billion, up 7.4%, while Organic Revenue growth was 1.2%, net income attributable to the Company increased 5.7% to $240 million, and Diluted Net Income Per Share - Adjusted increased 1.9% to $1.07.
Reported revenue and net income increased, but organic growth was 1.2%, Income Before Income Taxes Margin declined to 18.6% from 19.4%, and EBITDAC Margin - Adjusted declined to 34.6% from 36.6%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Three Months Ended September 30 - Commissions and feesGAAP | $1.7B | – | – |
| Three Months Ended September 30 - Investment and other incomeGAAP | $25M | – | – |
| Three Months Ended September 30 - Total revenuesGAAP | $1.73B | – | 7.4% |
| Three Months Ended September 30 - Organic Revenuenon-GAAP | $1.46B | – | 1.2% |
| Three Months Ended September 30 - Organic Revenue with Contingentsnon-GAAP | $1.54B | – | 1.5% |
| Three Months Ended September 30 - Employee compensation and benefitsGAAP | $857M | – | – |
| Three Months Ended September 30 - Other operating expensesGAAP | $307M | – | – |
| Three Months Ended September 30 - AmortizationGAAP | $110M | – | – |
| Three Months Ended September 30 - DepreciationGAAP | $18M | – | – |
| Three Months Ended September 30 - InterestGAAP | $100M | – | – |
| Three Months Ended September 30 - Change in estimated acquisition earn-out payablesGAAP | $27M | – | – |
| Three Months Ended September 30 - Mark-to-market of escrow liabilityGAAP | −$14M | – | – |
| Three Months Ended September 30 - Total expensesGAAP | $1.41B | – | – |
| Three Months Ended September 30 - Income before income taxesGAAP | $320M | – | 2.9% |
| Three Months Ended September 30 - Income Before Income Taxes MarginGAAP | 18.6% | – | – |
| Three Months Ended September 30 - EBITDACnon-GAAP | $575M | – | – |
| Three Months Ended September 30 - EBITDAC Marginnon-GAAP | 33.3% | – | – |
| Three Months Ended September 30 - EBITDAC - Adjustednon-GAAP | $597M | – | 1.7% |
| Three Months Ended September 30 - EBITDAC Margin - Adjustednon-GAAP | 34.6% | – | – |
| Three Months Ended September 30 - Income taxesGAAP | $79M | – | – |
| Three Months Ended September 30 - Net income attributable to the CompanyGAAP | $240M | – | 5.7% |
| Three Months Ended September 30 - Basic net income per shareGAAP | $0.73 | – | – |
| Three Months Ended September 30 - Diluted net income per shareGAAP | $0.67 | – | (1.5%) |
| Three Months Ended September 30 - Diluted Net Income Per Share - Adjustednon-GAAP | $1.07 | – | 1.9% |
| Nine Months Ended September 30 - Total revenuesGAAP | $5.30B | – | 23.4% |
| Nine Months Ended September 30 - Organic Revenuenon-GAAP | $3.99B | – | 0.3% |
| Nine Months Ended September 30 - Organic Revenue with Contingentsnon-GAAP | $4.2B | – | 1.5% |
| Nine Months Ended September 30 - Income before income taxesGAAP | $1.24B | – | 17.6% |
| Nine Months Ended September 30 - Income Before Income Taxes MarginGAAP | 23.3% | – | – |
| Nine Months Ended September 30 - EBITDACnon-GAAP | $1.92B | – | – |
| Nine Months Ended September 30 - EBITDAC - Adjustednon-GAAP | $1.93B | – | 20.9% |
| Nine Months Ended September 30 - EBITDAC Margin - Adjustednon-GAAP | 36.3% | – | – |
| Nine Months Ended September 30 - Net income attributable to the CompanyGAAP | $954M | – | 20.8% |
| Nine Months Ended September 30 - Diluted net income per shareGAAP | $2.57 | – | flat |
| Nine Months Ended September 30 - Diluted Net Income Per Share - Adjustednon-GAAP | $3.52 | – | 5.7% |
| Nine Months Ended September 30 - Net cash provided by operating activitiesGAAP | $1.14B | – | – |
| Nine Months Ended September 30 - Additions to fixed assetsGAAP | −$77M | – | – |
| Nine Months Ended September 30 - Net cash used in investing activitiesGAAP | −$125M | – | – |
| Nine Months Ended September 30 - Net cash used in financing activitiesGAAP | −$989M | – | – |
Capital returns
- Purchase of treasury stock of $(750) million for the nine months ended September 30, 2026.
- Cash dividends paid of $(169) million for the nine months ended September 30, 2026.
- Repurchase shares to fund tax withholdings for non-cash stock-based compensation of $(30) million for the nine months ended September 30, 2026.
What drove it
- Organic Revenue increased $17 million, or 1.2%, to $1,464 million for the three months ended September 30, 2026.
- Organic Revenue with Contingents increased $23 million, or 1.5%, to $1,543 million for the three months ended September 30, 2026.
- Acquisitions were $(156) million in the three-month reconciliation from core commissions and fees to Organic Revenue.
- J. Powell Brown cited efforts to win more customers in a challenging rate environment.
- The Company stated that its capabilities were broadly enhanced by the addition of approximately 5,000 new teammates from Accession.
Concerns
- Third-quarter Organic Revenue growth was 1.2%, and Organic Revenue with Contingents growth was 1.5%.
- Income Before Income Taxes Margin was 18.6%, compared to 19.4% in the third quarter of the prior year.
- EBITDAC Margin - Adjusted was 34.6%, compared to 36.6% in the third quarter of the prior year.
- Diluted net income per share decreased 1.5% to $0.67.
- Investment and other income was $25 million, compared to $56 million in the third quarter of 2025.
What to watch
- Organic Revenue growth and Organic Revenue with Contingents growth in the challenging rate environment.
- Income Before Income Taxes Margin and EBITDAC Margin - Adjusted following their third-quarter declines.
- The effect of acquisition, integration, amortization and acquisition earn-out items on adjusted and GAAP earnings.
- Long-term debt, which was $7,346 million less unamortized discount and debt issuance costs at September 30, 2026.
- Capital deployment following $750 million of treasury stock purchases and $(41) million of payments for businesses acquired, net of cash acquired, during the nine months ended September 30, 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $1,099 million at September 30, 2026, compared to $1,079 million at December 31, 2025.
- Fiduciary cash was $2,442 million at September 30, 2026, compared to $2,471 million at December 31, 2025.
- Current portion of long-term debt was $413 million at September 30, 2026, compared to $719 million at December 31, 2025.
- Long-term debt less unamortized discount and debt issuance costs was $7,346 million at September 30, 2026, compared to $6,894 million at December 31, 2025.
- Net cash provided by operating activities was $1,140 million for the nine months ended September 30, 2026, compared to $1,006 million for the same period in 2025.
- Payments for businesses acquired, net of cash acquired, were $(41) million for the nine months ended September 30, 2026, compared to $(7,659) million for the same period in 2025.
- Cash, cash equivalents and restricted cash inclusive of fiduciary cash at end of period were $3,812 million, compared to $3,724 million.
Analysis
Brown & Brown reported third-quarter total revenues of $1,725 million, compared with $1,606 million in the prior-year quarter. Growth on the Company’s non-GAAP organic measures was more modest: Organic Revenue increased 1.2% to $1,464 million and Organic Revenue with Contingents increased 1.5% to $1,543 million. The reconciliation identifies $(156) million of acquisitions in the three-month bridge from core commissions and fees to Organic Revenue, while management described a challenging rate environment.
Profit growth lagged revenue growth. Income before income taxes increased 2.9% to $320 million, while Income Before Income Taxes Margin declined to 18.6% from 19.4%. EBITDAC - Adjusted increased 1.7% to $597 million, but EBITDAC Margin - Adjusted declined to 34.6% from 36.6%. Employee compensation and benefits were $857 million versus $793 million, other operating expenses were $307 million versus $276 million, and amortization was $110 million versus $93 million.
Net income attributable to the Company increased 5.7% to $240 million. Diluted net income per share declined 1.5% to $0.67, while Diluted Net Income Per Share - Adjusted increased 1.9% to $1.07. The adjusted EPS reconciliation includes $0.09 of Acquisition/Integration Costs and $0.25 of amortization for the third quarter. For the nine months ended September 30, total revenues increased 23.4% to $5,302 million and net income attributable to the Company increased 20.8% to $954 million, but diluted net income per share was flat at $2.57.
Cash flow remained positive, with net cash provided by operating activities of $1,140 million for the nine months ended September 30, 2026, compared with $1,006 million in the prior-year period. The Company used $(750) million to purchase treasury stock, paid $(169) million in cash dividends, and made $(41) million of payments for businesses acquired, net of cash acquired. Cash and cash equivalents were $1,099 million at September 30, 2026, while long-term debt less unamortized discount and debt issuance costs was $7,346 million. The release did not provide forward guidance.
Management, verbatim
The third quarter reflected the incredible efforts of our teammates to win more customers in spite of a challenging rate environment. Our capabilities were broadly enhanced by the addition of approximately 5,000 new teammates from Accession, just over a year ago.
J. Powell Brown, president and chief executive officer
Not in the filing
stated, not guessed- Forward guidance for revenue, gross margin, operating expenses, tax rate and other metrics.
- Previous-release outlook for comparison with reported results.
- Segment revenue, segment profitability and segment organic growth.
- GAAP operating income.
- Gross profit and gross margin.
- Free cash flow.
- A reported tax rate.
- Third-quarter operating cash flow and free cash flow.
- Prior-quarter comparisons for reported metrics.
AlphAI 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.