Brown & Brown — Income Statement, Cash Flows & Balance Sheet

Is Brown & Brown profitable?

Brown & Brown delivered strong profit growth in 2025, though a surge in debt and acquisitions meaningfully lifted costs.

Revenue grew by nearly a quarter, and net income climbed, but the headline numbers understate the cost of growth: the Accession acquisition brought a wave of amortization (intangible assets being expensed over time) and higher interest on new debt, which compressed the bottom line. Diluted earnings per share actually fell because Brown & Brown issued tens of millions of new shares to fund the deal, spreading earnings across a larger share count.

Stripping out one-time items reveals a cleaner profit picture.

In prior years, gains from selling businesses inflated reported profits. In 2025 those are gone, replaced by a non-cash $54 million benefit from the mark-to-market of escrowed shares tied to the Accession deal — which accounting rules require to be excluded from diluted EPS. The underlying operating business is solidly profitable; these items just make year-to-year comparisons noisy.

Where does Brown & Brown's revenue come from?

Both segments grew meaningfully, but Retail accelerated sharply thanks to the Accession acquisition.

Retail's jump reflects the addition of Risk Strategies (a retail brokerage acquired as part of Accession), while Specialty Distribution absorbed One80 Intermediaries. Both segments are now meaningfully larger, though it is worth noting that acquired revenue — not purely organic growth — is doing much of the heavy lifting.

Does Brown & Brown generate cash?

Brown & Brown's core business generates healthy operating cash flow, which grew steadily even before the acquisition.

Operating cash conversion is strong — free cash flow (cash left after maintaining and investing in the physical business) grew faster than net income, a positive sign. Capital spending is modest relative to the size of the business, reflecting its asset-light brokerage model.

Nearly $8 billion went out the door for acquisitions in 2025, funded by a major equity offering and new debt.

The Accession deal was the defining event of the year financially. Brown & Brown raised capital through both a large stock offering and significant new senior notes (fixed-rate bonds) to fund the purchase — a deliberate, if substantial, bet on growth.

How strong is Brown & Brown's balance sheet?

Debt more than doubled in 2025 and will require careful monitoring as interest costs rise.

Brown & Brown took on significant leverage to fund Accession, and annual interest costs already reflect only a partial year of that new debt — they will be higher in 2026. The company was in compliance with all debt covenants at year-end, and it does have meaningful cash on hand.

Goodwill and intangibles now dominate the asset base, a common feature of acquisition-driven insurance brokers.

Goodwill (the premium paid above the fair value of acquired assets, reflecting brand and customer relationships) nearly doubled. These assets are not amortized but are tested annually for impairment; no impairment was recorded. Investors should understand that if acquired businesses underperform, write-downs are possible.