AI Takeaway
In Q2 FY2026, Brown & Brown (BRO) delivered 30.4% revenue growth to $1.676B and 24.7% net-income growth to $288M, driven primarily by acquisitions and sharply higher contingent commissions, while underlying Organic Revenue declined 0.7%.
Revenue
$1.68B
++30.43% YoY
EPS (Basic)
$0.86
++8.86% YoY
Filed · Source: SEC EDGAR 10-Q filing
Brown & Brown (BRO) reported Q2 FY2026 revenue of $1.68B, up 30.4% year over year. The company posted net income of $288M, up 24.7% from a year earlier, with diluted EPS of $0.84.
Commissions and fees increased $405M, or 32.4%, to $1.654B in Q2 FY2026. Management attributed $393M of the increase in core commissions and fees to acquisitions without comparable prior-year revenue, while reported Organic Revenue declined 0.7%.
Source: Source: 10-Q Item 2 MD&A, p.29-30
Profit-sharing contingent commissions rose $40M, or 88.9%, to $85M in Q2 FY2026. Management attributed the increase primarily to improved carrier underwriting results, premium-volume growth, qualifying for contingents not earned in the prior year, recent acquisitions, and its enhanced carrier-engagement model.
Source: Source: 10-Q Item 2 MD&A, p.29-30
Income before income taxes increased $72M, or 23.2%, to $383M, and net income attributable to the Company increased 24.7% to $288M. Results included a $40M credit from changes in estimated acquisition earn-out payables, principally due to revised estimates for companies acquired in the Accession transaction.
Source: Source: 10-Q Item 2 MD&A, p.29-31
Employee compensation and benefits increased $198M, including $203M from acquired operations without comparable prior-year costs; amortization increased $60M, or 120.0%, due to acquired intangible assets. Interest expense rose $49M, or 96.1%, to $100M, reflecting higher debt issued in Q2 2025 to fund the Accession transaction, partly offset by lower floating-rate benchmarks.
Source: Source: 10-Q Item 2 MD&A, p.29-31
Adjusted EBITDAC increased 27.0% to $598M, but Adjusted EBITDAC Margin declined to 35.7% from 36.7% in the prior-year period. Management cited expense-base leverage and Accession synergies as positive contributors, while acquisition/integration costs were a partial offset.
Source: Source: 10-Q Item 2 MD&A, p.26, p.29
Cash and equivalents were $918M, down 89.7% year over year, while current liabilities increased 46.7% to $7.713B. The current ratio was 1.13x, indicating current assets only modestly exceeded current obligations at period end.
Source: Source: 10-Q Balance Sheet (XBRL)
Long-term debt was $7.759B, up 2.8% year over year. Interest expense was $100M in Q2 FY2026, up 96.1% from the prior-year period, which could constrain earnings if borrowing costs remain elevated or debt increases further.
Source: Source: 10-Q Balance Sheet and Income Statement (XBRL)
Revenue increased 30.4% to $1.676B, but Organic Revenue declined 0.7% according to management's non-GAAP measure. This indicates that acquisition-related revenue rather than underlying same-business growth was the main contributor to reported expansion.
Source: Source: 10-Q Income Statement (XBRL)
Year-to-date operating cash flow was $608M, while the Company paid $112M in dividends and repurchased $500M of shares. These capital-return outflows totaled $612M, slightly exceeding year-to-date operating cash generation before considering investing cash flows.
Source: Source: 10-Q Cash Flow Statement (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.68B | $1.28B | +30.43% |
Net Income | $288M | $231M | +24.68% |
EPS (Basic) | $0.86 | $0.79 | +8.86% |
EPS (Diluted) | $0.84 | $0.78 | +7.69% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $29.89B | $25.64B | +16.58% |
Current Assets | $8.69B | $14.44B | -39.82% |
Current Liabilities | $7.71B | $5.26B | +46.72% |
Cash & Equivalents | $918M | $8.89B | -89.68% |
Long-Term Debt | $7.76B | $7.54B | +2.84% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $608M | $538M | +13.01% |
Investing Cash FlowYTD | $-71M | $-187M | +62.03% |
Financing Cash FlowYTD | $-526M | $7.98B | -106.59% |
Dividends PaidYTD | $112M | $86M | +30.23% |
Share BuybacksYTD | $500M | $0 | — |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 17.2% | — | — |
ROA | 1.0% | — | — |
Current Ratio | $1.127 | — | — |
Expected release date, analyst estimates & what to watch
BRO (Brown & Brown) delivered strong Q1 FY2026 results with revenue surging 35.4% YoY to $1.90B, driven by what appears to be significant acquisition activity, while net income rose 28.7% to $426M and long-term debt more than doubled to $7.82B.
BRO (Brown & Brown) delivered strong FY2025 revenue growth of 22.8% to $5.90B, driven largely by acquisition activity that nearly doubled long-term debt to $7.61B, while net income rose modestly 6.1% to $1.05B and diluted EPS declined 8.7% to $3.16 amid higher share count and integration costs.
Other companies in Insurance Brokers
BRO reported Q2 FY2026 revenue of $1.676B, up 30.4% year over year. Commissions and fees increased 32.4% to $1.654B, with $393M of core-commission growth coming from acquisitions without comparable prior-year revenue; Organic Revenue declined 0.7%. Source: 10-Q Item 2 MD&A, p.29-30.
Net income attributable to BRO increased 24.7% to $288M and diluted EPS rose 7.7% to $0.84. Key drivers included acquisition revenue, an $40M increase in contingent commissions, and a $40M credit from lower estimated acquisition earn-out payables, while interest expense nearly doubled to $100M. Source: 10-Q Item 2 MD&A, p.29-31.
Management reported a 0.7% decline in Organic Revenue despite 30.4% total revenue growth. Core commissions and fees were lifted mainly by $393M from acquisitions, while net new and renewal business contributed $8M after considering dispositions, foreign-currency translation, and litigation-related impacts. Source: 10-Q Item 2 MD&A, p.30.
BRO generated $608M of year-to-date operating cash flow, up 13.0%, and had a current ratio of 1.13x. However, cash and equivalents fell to $918M from $8.893B a year earlier, current liabilities rose to $7.713B, and long-term debt was $7.759B. Source: 10-Q Balance Sheet and Cash Flow Statement (XBRL).
On a year-to-date basis through Q2 FY2026, BRO paid $112M of dividends, up 30.2% year over year, and repurchased $500M of shares compared with no buybacks in the comparable prior-year period. Together, those outflows totaled $612M versus $608M of year-to-date operating cash flow. Source: 10-Q Cash Flow Statement (XBRL).