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Get filing alertsBrown & Brown reports 30% revenue growth driven by acquisitions, organic revenue flat
Filed July 27, 2026 · Period ending July 27, 2026 · ~1 min read
Key Changes
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high
Q2 2026 total revenues rose 30.4% to $1.7B, but organic revenue declined 0.7% (up 0.7% with contingent commissions), indicating core business contraction offset by profit-sharing.
Exhibit 99.1 view on EDGAR → -
high
Adjusted EBITDAC margin compressed from 36.7% to 35.7% despite 27% earnings growth, suggesting integration costs or operating leverage challenges from rapid M&A.
Exhibit 99.1 view on EDGAR → -
high
Diluted EPS fell 1.6% to $1.90 for the first half despite 24% pre-tax income growth, reflecting dilution from prior equity issuance; adjusted EPS rose 6.0% to $2.46.
Exhibit 99.1 view on EDGAR → -
medium
Company repurchased $500M of stock in H1 2026, partially offsetting dilution while maintaining acquisition capacity.
Exhibit 99.1 view on EDGAR → -
medium
Long-term debt increased to $7.3B from $6.9B at year-end 2025, with net $175M drawn on revolving credit facility to fund acquisitions and working capital.
Exhibit 99.1 view on EDGAR →
Summary
Brown & Brown delivered strong headline growth in Q2 2026, with total revenues up 30% to $1.7 billion, but the results reveal a business in transition. Organic revenue—the core metric excluding acquisitions—declined 0.7%, indicating the existing book of business contracted. The company offset this with contingent commissions (profit-sharing arrangements), bringing organic growth with contingents to 0.7%.
The 30% top-line expansion came entirely from M&A, not underlying momentum. Margin compression is the second concern. Adjusted EBITDAC margins fell 100 basis points year-over-year to 35.7%, and pre-tax margins dropped 130 basis points to 22.9%, despite strong absolute earnings growth. This suggests integration costs or operating leverage challenges as the company digests acquisitions.
Diluted EPS fell 1.6% in the first half even as pre-tax income rose 24%, reflecting dilution from prior equity issuance. The $500 million share repurchase partially offsets this, but the company is balancing capital return against a $7.3 billion debt load that supports its acquisition engine. Investors should watch whether organic growth stabilizes and margins recover as integration progresses.
Section-by-Section Diff
Event · Exhibit 99.1
Brown & Brown reported Q2 2026 results: total revenues up 30.4% to $1.7B, organic revenue down 0.7%, diluted EPS $0.84, adjusted EPS $1.07.
Added in current filing · view on EDGAR →
Income before income taxes of $383 million, increasing 23.2%, with Income Before Income Taxes Margin of 22.9%, compared to 24.2% in the second quarter of the prior year. ... EBITDAC - Adjusted of $598 million, increasing 27.0%, with EBITDAC Margin - Adjusted of 35.7%, compared to 36.7% in the second quarter of the prior year. ... Diluted net income per share of $0.84, an increase of 7.7%, with Diluted Net Income Per Share - Adjusted increasing to $1.07, or 3.9%, each compared to the second quarter of the prior year.
Pre-tax income rose 23.2% to $383 million, though the pre-tax margin compressed from 24.2% to 22.9%. Adjusted EBITDAC grew 27.0% to $598 million, but the adjusted EBITDAC margin fell from 36.7% to 35.7%. Diluted EPS increased 7.7% to $0.84, and adjusted diluted EPS rose 3.9% to $1.07. The margin compression suggests integration costs or operating leverage challenges despite strong top-line growth.
Added in current filing · view on EDGAR →
Total revenues of $3.6 billion, increasing $888 million, or 33.0%, compared to the same period in 2025, with Organic Revenue decreasing 0.3% and Organic Revenue with Contingents increasing 1.6%. ... Income before income taxes of $915 million, increasing 24.0%, with Income Before Income Taxes Margin of 25.6%, compared to 27.4% in the same period in 2025. ... Diluted net income per share of $1.90, a decrease of 1.6%, with Diluted Net Income Per Share - Adjusted increasing to $2.46, or 6.0%, each compared to the same period in 2025.
For the first half of 2026, total revenues grew 33.0% to $3.6 billion, while organic revenue declined 0.3% (or grew 1.6% with contingents). Pre-tax income rose 24.0% to $915 million, but the pre-tax margin fell from 27.4% to 25.6%. Diluted EPS decreased 1.6% to $1.90, though adjusted diluted EPS increased 6.0% to $2.46. The EPS decline reflects higher share count from equity issuance, while adjusted EPS growth shows underlying operational improvement.
Added in current filing · view on EDGAR →
Purchase of treasury stock
(500
The company repurchased $500 million of its common stock during the first half of 2026, as shown in the cash flow statement. This represents a significant capital return to shareholders and may partially offset dilution from the prior year's equity offering.
Added in current filing · view on EDGAR → · paraphrased
Long-term debt less unamortized discount and debt issuance costs 7,346 ... Borrowings on revolving credit facility 225 ... Payments on revolving credit facility (50)
Long-term debt stood at $7.3 billion as of June 30, 2026, up from $6.9 billion at year-end 2025. The company drew $225 million on its revolving credit facility during the first half and repaid $50 million, indicating active management of short-term liquidity. The debt increase supports the company's acquisition strategy and working capital needs.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 28, 2026 · How we verify