Brown & Brown — Financial Results
Revenue Surged 22.8% in 2025, Mostly Driven by the Accession Acquisition
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Total Revenues | $4,805M | $5,902M | +22.8% |
| Core Commissions & Fees | $4,539M | $5,508M | +21.3% |
| Organic Revenue Growth | 10.4% | 2.8% | -7.6 pp |
Total revenues crossed $5.9 billion, but the headline growth figure is misleading without context. Of the $969 million increase in core commissions and fees, $836 million came from acquisitions — primarily Accession — with only $126 million from genuine underlying business growth. That 2.8% Organic Revenue growth rate (growth from the existing business, stripping out deals) is a sharp step down from 10.4% in 2024, signalling that the base business is growing at a more modest pace.
The Accession Deal Transformed the Company's Scale — and Its Debt Load
Brown & Brown spent $7,463 million (net of cash) to acquire Accession in 2025, making it by far the largest deal in the company's history. To fund it, the company raised $4.3 billion in a new stock offering and issued $4.2 billion in senior notes at rates between 4.6% and 6.25%. Total debt nearly doubled, rising from $3.8 billion to $7.6 billion. Interest expense jumped 53.9% to $297 million for the year as a result, and the company also incurred $113 million in one-time Acquisition/Integration Costs that weighed on reported earnings.
Net Income Topped $1 Billion, But Profit Margin Compressed
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Net Income (attributable to company) | $993M | $1,054M | +6.1% |
| Income Before Tax Margin | 27.1% | 23.2% | -3.9 pp |
| EBITDAC Margin - Adjusted | 35.2% | 35.9% | +0.7 pp |
Net income grew only 6.1% despite revenues growing 22.8% — the gap largely explained by the surge in interest expense, amortization (up 75.3% to $312 million from new acquisition intangibles), and integration costs. The reported profit margin fell from 27.1% to 23.2%. On a cleaner EBITDAC - Adjusted basis (which strips out interest, taxes, depreciation, amortization, and one-time costs), margins actually improved slightly to 35.9%, suggesting the underlying operating business remains healthy.
Profit-Sharing Contingent Commissions Had a Standout Year
Profit-sharing contingent commissions — bonuses paid by insurers when the policies Brown & Brown places perform well (i.e., few claims) — jumped 53.6% to $255 million. This was driven by favorable loss ratios across the industry, higher premium volumes, and qualifying for programs the company missed out on in 2024. These commissions are inherently variable and not guaranteed year to year, so investors should note they averaged about 4.4% of total commissions and fees over the prior three years.
Operating Cash Flow Is Strong, But the Balance Sheet Carries More Risk
Operating cash flow grew to $1,450 million in 2025 from $1,174 million in 2024, a healthy 23.5% increase that reflects the earnings power of the business. However, total contractual obligations now stand at nearly $14 billion, including $7.7 billion in long-term debt and $4.2 billion in future interest payments. A $400 million tranche of senior notes matures in 2026, and the company's revolving credit facility also expires in 2026 — both flagged as short-term liabilities. Management states it intends to refinance, but no agreements were in place at year-end.