Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

741bddbff5d2ed0230cbc3f61b1fee0ee5630d54d88acdb9387650a396e91c35

2907f71fcfae1d92840b3a161cb16af5d78a292926c6d4e940496308fa0f6acf

3ee742a871e020aa1537fd63657c3f9ffd64a0abd57c8b4aeb390ade4bc9354d

United States

United Kingdom

Republic of Ireland

Canada

Other

Total Revenue

2e0b655873bde8aa98bd8ab1cea4e21cbd22eb487aceba79baf81e16a1b3d6bc

Number of insurance intermediary operations acquired (count)

Organic Revenue growth rate - Consolidated (percentage)

Organic Revenue growth rate - Retail (percentage)

Organic Revenue growth rate - Programs (percentage)

Organic Revenue growth rate - Wholesale Brokerage (percentage)

87d09f2baeb598eec59f76ead75c25ccfd6dc5b139cca4002416b5808a6fcb04

Retail

- Core Commissions and Fees

- Profit-sharing Contingent Commissions

- Investment Income

- Other Income, Net

Programs

Wholesale Brokerage

Services

2ec4f68da7aa50ed0e602fdee8502f87e1157fb94b71e1a1daf1d13f03dd10a3

Commissions and Fees (USD, millions)

Total Revenues (USD, millions)

Employee Compensation and Benefits (USD, millions)

Other Operating Expenses (USD, millions)

Gain on Disposal (USD, millions)

Amortization (USD, millions)

Depreciation (USD, millions)

Interest Expense (USD, millions)

Change in Estimated Acquisition Earn-Out Payables (USD, millions)

Total Expenses (USD, millions)

Income Before Income Taxes (USD, millions)

Income Taxes (USD, millions)

Net Income Before Non-Controlling Interests (USD, millions)

Net Income Attributable to Non-Controlling Interests (USD, millions)

Net Income Attributable to the Company (USD, millions)

Basic Net Income per Share (USD)

Diluted Net Income per Share (USD)

2afa659ab53bccb052fdd285f76601e039c51a37a8a27cf67baf2e7cf4758c15

Cash and cash equivalents (USD, millions)

Fiduciary cash (USD, millions)

Commission, fees and other receivables (USD, millions)

Fiduciary receivables (USD, millions)

Reinsurance recoverable (USD, millions)

Prepaid reinsurance premiums (USD, millions)

Other current assets (USD, millions)

Total current assets (USD, millions)

Fixed assets, net (USD, millions)

Operating lease assets (USD, millions)

Goodwill (USD, millions)

Amortizable intangible assets, net (USD, millions)

Other assets (USD, millions)

Total assets (USD, millions)

Fiduciary liabilities (USD, millions)

Losses and loss adjustment reserve (USD, millions)

Unearned premiums (USD, millions)

Accounts payable (USD, millions)

Accrued expenses and other liabilities (USD, millions)

Current portion of long-term debt (USD, millions)

Total current liabilities (USD, millions)

Long-term debt less unamortized discount and debt issuance costs (USD, millions)

Operating lease liabilities (USD, millions)

Deferred income taxes, net (USD, millions)

Other liabilities (USD, millions)

Common stock, par value $ 0.10 per share (USD, millions)

Additional paid-in capital (USD, millions)

Treasury stock, at cost (USD, millions)

Accumulated other comprehensive loss (USD, millions)

Non-controlling interests (USD, millions)

Retained earnings (USD, millions)

Total liabilities and shareholders’ equity (USD, millions)

d2b8dc6b8a4e234fb59eb6150a0a72d015227ea43be2f35121c81c4963500925

Investment Income nearly doubled in Q3 2025, rising from **$16.50 million** in Q3 2024 to **$31.00 million**, primarily due to two main factors. **Higher interest rates** provided increased returns on cash and investments, and the company temporarily held proceeds from a **$600 million bond issuance** until the September bond repayment, which added an incremental **$6–$7 million** to the quarter’s investment income.  **[0000950170-24-117782_bro-20240930.htm:31]** **[BRO_3404330_18]** 

Why did Investment Income nearly double in Q3 2025?

The documents do not indicate any details regarding a decline in Gain on Disposal for Q2 2025. In fact, the gain increased from **$0 million** in Q2 2024 to **$31 million** in Q2 2025, and while this is a significant change, there is no explanation given—only that the figure is considered **"Not a Meaningful Figure" (NMF)**, which suggests it lacks sufficient context for analysis.  **[0000950170-24-085353_bro-20240630.htm:30]** **[0000950170-24-085353_bro-20240630.htm:4]** **[0000950170-24-085352_bro-ex99_1.htm:1]** 

What caused the sharp decline in Gain on Disposal in Q2 2025?

The documents do not provide any specific reasons for the significant increase in Other Operating Expenses in **Q4 2025**.  **[0000950170-25-019039_bro-20241231.htm:75]** **[0000950170-25-009270_bro-ex99_1.htm:2]**  They only offer detailed explanations for **Q4 2024** and the full year 2024, where the increase was attributed to costs related to stand-alone acquisitions, higher information technology-related expenses, and greater variable costs associated with revenue growth, among other factors.  **[0000950170-25-009270_bro-ex99_1.htm:2]** **[0000950170-25-019039_bro-20241231.htm:60]** 

Why did Other Operating Expenses increase significantly in Q4 2025?

The provided documents only report that the **Basic EPS for Q4 2025 was 0.73**  **[0000950170-25-019039_bro-20241231.htm:75]** , but they do not offer any specific explanation for the drop in Q4 2025. The details on the factors contributing to the decline are only given for Q4 2024, not Q4 2025.  **[0000950170-25-009270_bro-ex99_1.htm:0]** 

What contributed to the drop in Basic EPS in Q4 2025?

d50158b0262f0b178dcf9875f03f8ae936562d91018f1141fc72f1f534846047

The spike in **Cash and cash equivalents** in Q2 2025 was primarily driven by a strong inflow of cash from operating activities, which generated **$373 million**, combined with net cash inflows from financing activities amounting to **$375 million**. These inflows significantly outweighed the **$77 million** used in investing activities, resulting in a net increase of **$671 million** in cash and cash equivalents during the period.  **[0000950170-24-085352_bro-ex99_1.htm:3]** 

Why did Cash and cash equivalents spike in Q2 2025?

The increase in total assets in Q3 2025 was driven by a **significant rise in current assets**—including higher levels of cash and receivables—and an **increase in goodwill** from acquisitions, while improved **fiduciary cash** levels supported by business growth and seasonality also played a key role.  **[0000950170-24-117782_bro-20240930.htm:31]** 

What drove the increase in Total assets in Q3 2025?

The jump in the current portion of long-term debt in Q1 2025 is primarily due to **three factors**. First, there was the addition of a **3-year term loan facility maturing in 2025**, which contributed a **$300 million current portion** that had not been present previously. Second, the current portion of the **5-year term loan facility maturing in 2027** increased from **$44 million to $50 million**. Lastly, there was **no change in the $500 million current portion** of the 4.200% senior notes maturing in 2024. These adjustments collectively explain the significant increase in the current portion of long-term debt in Q1 2025.  **[0000950170-24-047140_bro-20240331.htm:14]** 

What caused the jump in the current portion of long-term debt in Q1 2025?

The documents indicate that the **Reinsurance recoverable** surged significantly, increasing from **$125 million** as of December 31, 2023, to **$2,036 million** as of September 30, 2024.  **[0000950170-24-117782_bro-20240930.htm:5]** **[0000950170-24-117780_bro-ex99_1.htm:2]**  However, the documents do not provide a specific reason for this change. They note that such big changes can typically be attributed to factors such as **increased claims activity**, **changes in reinsurance contracts**, or **adjustments in the estimation of recoverable amounts**, but without more detailed information, the exact reason for the surge in Q3 2025 cannot be determined.  **[0000950170-24-117782_bro-20240930.htm:5]** **[0000950170-24-117780_bro-ex99_1.htm:2]** 

Why did Reinsurance recoverable surge in Q3 2025?

f70caab5c2926f056be1e9c51dde67ab7d7b84e27004b16a33b5da7d851b2ec3

Net income before non-controlling interests (USD, millions)

Non-cash stock-based compensation (USD, millions)

Change in estimated acquisition earn-out payables (USD, millions)

Deferred income taxes (USD, millions)

Net gain on sales/disposals of investments, businesses, fixed assets and customer accounts (USD, millions)

Payments on acquisition earn-outs in excess of original estimated payables (USD, millions)

Other adjustments to net income (USD, millions)

Changes in Commissions, fees and other receivables (USD, millions)

Changes in Reinsurance recoverable (USD, millions)

Changes in Prepaid reinsurance premiums (USD, millions)

Changes in Other assets (increase) decrease (USD, millions)

Changes in Losses and loss adjustment reserve (USD, millions)

Changes in Unearned premiums (USD, millions)

Changes in Accounts payable (USD, millions)

Changes in Accrued expenses and other liabilities (USD, millions)

Changes in Other liabilities (USD, millions)

Net cash provided by operating activities (USD, millions)

Additions to fixed assets (USD, millions)

Payments for businesses acquired, net of cash acquired (USD, millions)

Proceeds from sales of businesses, fixed assets and customer accounts (USD, millions)

Net cash used in investing activities (USD, millions)

Payments on acquisition earn-outs (USD, millions)

Payments on long-term debt (USD, millions)

Borrowings on revolving credit facility (USD, millions)

Payments on revolving credit facility (USD, millions)

Repurchase shares to fund tax withholdings for non-cash stock-based compensation (USD, millions)

Cash dividends paid (USD, millions)

Other financing activities (USD, millions)

Net cash (used in) provided by financing activities (USD, millions)

Effect of foreign exchange rate changes on cash and cash equivalents inclusive of fiduciary cash (USD, millions)

Net increase (decrease) in cash and cash equivalents inclusive of fiduciary cash (USD, millions)

Fiduciary receivables and liabilities, net (USD, millions)

Cash and cash equivalents inclusive of fiduciary cash at beginning of period (USD, millions)

Cash and cash equivalents inclusive of fiduciary cash at end of period (USD, millions)

86043d4252db7e9a5c92a921c0ceb3c8544ddbb2a340ae8a157bfec6dcdcfe2e

Brown & Brown Inc (BRO)

Financials