Brown & Brown’s recent pullback reflects short-term headwinds in non-recurring items and declining catastrophe rate renewals, yet it presents an opportunity for value-oriented investors to accumulate a consistently profitable insurance broker with over two decades of positive organic revenue growth. Management emphasizes that the temporary softness primarily stems from timing of contingent commissions and lower CAT rates, and expects a return to mid-single-digit organic growth once these factors normalize.

In the quarter ended December 31, 2025, Brown & Brown reported total revenues of $1.6 billion, up 35.7% year-over-year driven by the Accession acquisition, while organic revenue dipped 2.8%. Adjusted EBITDAC reached $529 million, flat on margin at 32.9%, and adjusted diluted EPS rose 8.1% to $0.93. Investment income improved by 17% and core commissions and fees grew 34.5%, offsetting lower organic commissions related to prior-period items.

For full year 2025, total revenues climbed 22.8% to $5.9 billion, with organic revenue up 2.8%. Adjusted EBITDAC expanded by 25.6% to $2.1 billion, lifting adjusted margin to 35.9%. Adjusted diluted EPS increased 10.9% to $4.26, reflecting disciplined cost control, integration of three bolt-on acquisitions and higher interest income on capital raised for the Accession deal. Net income attributable to shareholders rose 6.1% to $1.1 billion.

Management projects free cash flow per share of $2.08 in 2025, supported by scale-driven working capital improvements and higher deferred revenue capture. The firm’s deep acquisition funnel, with over 300 active targets screened, underpins a strategy of organic and inorganic growth. Continued disciplined deployment of capital into mid-market brokers and technology platforms is expected to drive another year of double-digit adjusted EPS growth in 2026.