Second Quarter 2026
Filed Jul 30, 2026Total Revenue grew 7.2% year-over-year to $916.6 million; Adjusted EBITDAC grew 6.0% year-over-year to $326.9 million; Adjusted Diluted Earnings Per Share grew 12.1% to $0.74.
Revenue, organic growth, Adjusted EBITDAC, adjusted net income and adjusted diluted earnings per share increased year-over-year, while GAAP operating income, net income and diluted earnings per share declined as operating expenses increased faster than revenue.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $916.6 million | – | 7.2% |
| Net commissions and feesGAAP | $902,728 (in thousands) | – | 7.4% |
| Compensation and benefitsGAAP | $531,617 (in thousands) | – | 9.6% |
| General and administrativeGAAP | $118,643 (in thousands) | – | 10.8% |
| Total operating expensesGAAP | $736.3 million | – | 10.9% |
| Operating incomeGAAP | $180,316 (in thousands) | – | (5.6%) |
| Net incomeGAAP | $108.4 million | – | (13.1%) |
| Net income attributable to Ryan Specialty Holdings, Inc.GAAP | $42,315 (in thousands) | – | (18.6%) |
| Earnings per shareGAAP | $0.34 | – | – |
| Diluted earnings per shareGAAP | $0.33 | – | – |
| Compensation and benefits expense ratioGAAP | 58.0% | – | – |
| General and administrative expense ratioGAAP | 12.9% | – | – |
| Net income marginGAAP | 11.8% | – | – |
| Organic revenue growth ratenon-GAAP | 6.7% | – | – |
| Adjusted compensation and benefits expensenon-GAAP | $494,946 (in thousands) | – | 9.2% |
| Adjusted compensation and benefits expense rationon-GAAP | 54.0% | – | – |
| Adjusted general and administrative expensenon-GAAP | $94,797 (in thousands) | – | 1.6% |
| Adjusted general and administrative expense rationon-GAAP | 10.3% | – | – |
| Adjusted EBITDACnon-GAAP | $326.9 million | – | 6.0% |
| Adjusted EBITDAC marginnon-GAAP | 35.7% | – | – |
| Adjusted net incomenon-GAAP | $198.7 million | – | 7.6% |
| Adjusted net income marginnon-GAAP | 21.7% | – | – |
| Adjusted diluted earnings per sharenon-GAAP | $0.74 | – | 12.1% |
| Net commissions and policy feesGAAP | $852,385 (in thousands) | – | 8.3% |
| Supplemental and contingent commissionsGAAP | $32,168 (in thousands) | – | (9.7%) |
| Loss mitigation and other feesGAAP | $18,175 (in thousands) | – | 0.1% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Wholesale BrokerageGrowth in Net commissions and fees in all specialties was primarily driven by solid organic growth. | $498,802 (in thousands) | – | 4.5% |
| Binding AuthorityGrowth in Net commissions and fees in all specialties was primarily driven by solid organic growth. | $100,170 (in thousands) | – | 6.0% |
| Underwriting ManagementGrowth in Net commissions and fees in all specialties was primarily driven by solid organic growth. | $303,756 (in thousands) | – | 12.8% |
Capital returns
- Returned approximately $284.5 million to shareholders through $260.0 million of Class A common stock repurchases, representing 8.1 million shares, and $24.5 million in dividends and distributions.
- As of June 30, 2026, the Company had $300.0 million of remaining authorization under its share repurchase authorization.
- Expanded its repurchase authorization by an additional $300 million.
What drove it
- Total revenue growth was driven by continued organic revenue growth of 6.7%, new client wins, strong renewal retention, expanded relationships with existing clients, continued flow into the specialty and E&S markets, and modest amounts of revenue from acquisitions completed within the trailing twelve months ended June 30, 2026.
- The Company experienced growth across the majority of its casualty lines, offset by a moderate decline in its property portfolio.
- Adjusted EBITDAC growth was driven primarily by strong revenue growth, partially offset by higher Adjusted compensation and benefits expense and Adjusted general and administrative expense.
- Net commissions and policy fees increased 8.3%, while supplemental and contingent commissions declined 9.7%.
Concerns
- Total operating expenses increased 10.9%, exceeding total revenue growth of 7.2%.
- GAAP operating income decreased 5.6%, net income decreased 13.1%, and net income attributable to Ryan Specialty Holdings, Inc. decreased 18.6%.
- Net income declined primarily because of higher Total operating expenses and higher Income tax expense, partially offset by strong revenue growth.
- Adjusted EBITDAC margin declined to 35.7% from 36.1%, while the compensation and benefits expense ratio increased to 58.0% from 56.7%.
- The Company reported a moderate decline in its property portfolio.
What to watch
- Organic revenue growth rate was 6.7%, compared to 7.1% in the prior-year period.
- Underwriting Management net commissions and fees grew 12.8%, compared with 4.5% for Wholesale Brokerage and 6.0% for Binding Authority.
- Costs linked to headcount and revenue growth, Restructuring and related expense due to the Empower Program, change in contingent consideration, and Income tax expense.
- Use of the remaining $300.0 million share repurchase authorization and the impact of capital returns alongside $3.6 billion of outstanding debt principal.
Balance sheet and cash flow
- As of June 30, 2026, Cash and cash equivalents were $140.1 million.
- As of June 30, 2026, outstanding debt principal was $3.6 billion.
Analysis
Ryan Specialty reported second-quarter total revenue of $916.6 million, up 7.2% year-over-year, supported by 6.7% organic revenue growth. Management attributed growth to new client wins, strong renewal retention, expanded existing-client relationships, continued flow into specialty and E&S markets, and modest revenue from trailing-twelve-month acquisitions. Growth occurred across the majority of casualty lines, while the property portfolio recorded a moderate decline.
Specialty mix favored Underwriting Management, where net commissions and fees increased 12.8% to $303,756 (in thousands). Binding Authority increased 6.0% to $100,170 (in thousands), and Wholesale Brokerage increased 4.5% to $498,802 (in thousands). Revenue by type showed net commissions and policy fees up 8.3%, while supplemental and contingent commissions declined 9.7%.
Profitability was pressured on a GAAP basis. Total operating expenses rose 10.9% to $736.3 million, outpacing revenue growth, as compensation and benefits, general and administrative expense, restructuring and related expense due to the Empower Program, and change in contingent consideration increased. GAAP operating income declined 5.6%, net income declined 13.1% to $108.4 million, and diluted earnings per share was $0.33. The reported net income decline also reflected higher Income tax expense.
Non-GAAP results remained positive but showed modest margin pressure. Adjusted EBITDAC increased 6.0% to $326.9 million, while Adjusted EBITDAC margin declined to 35.7% from 36.1%. Adjusted net income increased 7.6% to $198.7 million and Adjusted diluted earnings per share increased 12.1% to $0.74. The difference between GAAP and adjusted earnings outcomes makes operating-expense and tax items central to the period's result.
Capital allocation was substantial during the quarter, with approximately $284.5 million returned to shareholders, including $260.0 million of Class A common stock repurchases representing 8.1 million shares and $24.5 million in dividends and distributions. Cash and cash equivalents were $140.1 million and outstanding debt principal was $3.6 billion as of June 30, 2026. The filing did not provide forward guidance, so the next reported evidence on organic growth, property trends, expense growth, margins and repurchase deployment will be important.
Management, verbatim
We grew total revenue 7.2%, driven primarily by organic growth of 6.7%. We grew Adjusted EBITDAC by 6.0% and Adjusted Diluted EPS by 12.1%.
Patrick G. Ryan, Founder and Executive Chairman of Ryan Specialty
We also continued to return capital to shareholders through our dividend, repurchasing shares worth $260 million during the quarter, and expanding our repurchase authorization by an additional $300 million.
Patrick G. Ryan, Founder and Executive Chairman of Ryan Specialty
Positioned at the top of both specialty distribution and underwriting, the platform we've built over the past 16 years enables us to anticipate, identify, and meet the most pressing needs of our clients, even in the most challenging environments.
Timothy W. Turner, Chief Executive Officer of Ryan Specialty
Not in the filing
stated, not guessed- Forward revenue guidance
- Forward gross margin guidance
- Forward operating expenses guidance
- Forward tax rate guidance
- Other forward guidance
- Previous-period outlook for comparison
- Gross profit
- Gross margin
- Operating cash flow
- Free cash flow
- Prior-quarter comparisons for reported metrics
- GAAP diluted earnings per share year-over-year change
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.