Executive Summary

Q1 2024 delivered broad-based growth and margin expansion: Revenue $380.4M (+15% YoY), Organic Revenue Growth 16%, Adjusted EBITDA $101.7M (+29% YoY) with margin 27% (+280 bps) .
GAAP diluted EPS was $0.33; Adjusted diluted EPS $0.56 (+33% YoY), supported by cost rationalization and operational scale .
Management kept FY 2024 guidance unchanged; commentary flagged margin accretion weighted to Q1 and Q4, and continued deleveraging with net leverage “less than 4.5x” exiting Q1 and sub-4x targeted by year end .
Corporate catalysts: rebrand to The Baldwin Group and Nasdaq ticker change to BWIN effective May 20, 2024; strategic sale of Connected Risk Solutions ($59M cash) to streamline portfolio and support margin/organic growth .

What Went Well and What Went Wrong

What Went Well

Strong top-line and organic growth: Total revenue $380.4M (+15% YoY) and organic revenue growth 16% . “We are thrilled with our start to 2024…double-digit organic growth and significantly expanded…margin, profitability and free cash flow generation” — CEO Trevor Baldwin .
Material margin expansion and FCF: Adjusted EBITDA $101.7M (+29% YoY), margin 27% (+280 bps YoY); free cash flow $53.3M (+51% YoY) .
Portfolio and technology positioning: Announced rebrand and ticker change; Juniper Re entered a multi-year flood/wildfire data collaboration with ICEYE to enhance event response analytics (carrier clients gain near real-time insights) .

What Went Wrong

Profit commission timing/mix headwinds: CFO noted profit commissions within UCTS were down due to umbrella product changes and renter portfolio timing effects, impacting segment margins intra-quarter .
Rate/exposure normalization: Retail rate/exposure contribution to organic growth was ~4.5% vs a 10% tailwind in Q1 last year; tailwinds moderating reduce easy comps and require continued net new client growth .
Cash earnout obligations and liquidity uses: Q1 paid ~$54M cash earnouts; through April paid ~$89M cash earnouts and ~$21M bonuses, with remaining undiscounted earnout obligations ~ $222M — manageable but a use of cash that investors track alongside deleveraging .

Financial Results

Metric	Q3 2023	Q4 2023	Q1 2024
Revenue ($USD Millions)	$306.3	$284.6	$380.4
GAAP Diluted EPS ($)	$(0.29)	$(0.56)	$0.33
Adjusted Diluted EPS ($)	$0.29	$0.14	$0.56
Adjusted EBITDA ($USD Millions)	$64.0	$45.6	$101.7
Adjusted EBITDA Margin (%)	21%	16%	27%
Organic Revenue Growth (%)	19%	15%	16%

Segment organic growth (call commentary):

Segment	Q1 2024 Organic Revenue Growth (%)
IS	11%
UCTS	21%
MIS	24%

KPIs and cash metrics:

KPI	Q1 2024
Free Cash Flow ($USD Millions)	$53.3
Net cash provided by operating activities ($USD Millions)	$2.9
Cash and equivalents ($USD Millions)	$112.1
Restricted cash ($USD Millions)	$122.2
Borrowing capacity (Revolver) ($USD Millions)	$266.0

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
FY 2024 guidance (overall)	FY 2024	Not disclosed in reviewed filings	Unchanged per management commentary	Maintained
Margin accretion timing	FY 2024 (intra-year)	Not disclosed	Weighted to Q1 and Q4	Maintained narrative

Note: The Q1 8‑K and press release did not include specific numeric ranges for FY 2024 guidance, and reconciliation of forward-looking non-GAAP guidance to GAAP was stated as not reasonably practicable .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2023)	Previous Mentions (Q4 2023)	Current Period (Q1 2024)	Trend
Margin expansion	+480 bps YoY margin accretion, leverage down to 4.8x, focus on FCF	Emphasis on expense rationalization; set up for accelerating margins/FCF in 2024	27% adj. EBITDA margin (+280 bps YoY); margin accretion weighted to Q1/Q4	Improving; seasonally weighted
Rate/exposure dynamics	Tailwinds aided growth in 2023	Entering 2024 with normalization commentary	Retail rate/exposure ~4.5% of organic growth; down vs Q1 2023 tailwind	Normalizing
Profit commissions (UCTS)	Strong UCTS contribution	Mixed contingents expected in 2024	UCTS profit commissions down due to product mix/timing; expected Q4 uplift	Variable intra-year
M&A/portfolio actions	Ongoing partnerships	Focus on selective, episodic M&A	Sold Connected Risk Solutions (wholesale) for ~$59M; M&A selective/cultural fit	Streamlining; selective
Technology/analytics	Building platform capabilities	Integration largely complete	ICEYE–Juniper Re data collaboration for near real-time event insights	Enhancing analytics stack
Leverage/earnouts	Leverage 4.8x (Q3)	Balance sheet strengthening into 2024	Net leverage <4.5x; sub-4x targeted; ~$222M remaining earnouts; significant cash earnout payments	Deleveraging progressing

Management Commentary

“We are thrilled with our start to 2024, as we delivered another quarter of strong, double-digit organic growth and significantly expanded our adjusted EBITDA margin, profitability and free cash flow generation…” — Trevor Baldwin, CEO .
“We expect the margin accretion implied in our full‑year guidance to be more heavily weighted towards the first and fourth quarters.” — Brad Hale, CFO .
“Our first‑quarter 2024 results represented one of the most complete performances we’ve seen across the business since going public…” — Trevor Baldwin (prepared remarks) .

Q&A Highlights

Rate/exposure contribution: Retail rate/exposure was ~4.5% of organic growth (vs a 10% tailwind last year), indicating normalized pricing backdrop and reliance on net new client wins .
UCTS contingents and margins: Profit commissions in UCTS were down due to umbrella product changes and renter portfolio timing; management expects stronger margin contribution later in the year, especially Q4 .
Colleague earnout incentives: New line item reflects geography shift of earnout allocations to non‑selling shareholders; net‑income neutral but recognized in compensation expense .
Deleveraging path: Ended Q1 at <4.5x net leverage; plan to be <4.0x by YE 2024 despite substantial earnout and bonus cash payments .
Portfolio actions: Connected Risk Solutions sale ($59M) expected to be neutral to 2024 adjusted EPS and accretive to organic growth and margins .

Estimates Context

S&P Global (Capital IQ) consensus data for Q1 2024 was unavailable via our SPGI tool at the time of analysis; we anchor estimate comparisons on SPGI when accessible and note unavailability here.
Third‑party report (Yahoo/Insider Monkey) indicated Q1 EPS expectations of ~$0.51 vs reported GAAP diluted EPS $0.33, implying an EPS miss on that reference set; use with caution as it is not SPGI consensus .

Metric	Actual Q1 2024	SPGI Consensus	Surprise
GAAP Diluted EPS ($)	$0.33	Unavailable (SPGI)	N/A
Revenue ($USD Millions)	$380.4	Unavailable (SPGI)	N/A

Key Takeaways for Investors

Strong execution: Double‑digit organic growth and substantial margin expansion underpin improved earnings quality and FCF; cost actions from 2023 continue to flow through .
Seasonal cadence matters: Margin accretion is expected to be more pronounced in Q1 and Q4; monitor contingent commissions and rate/exposure normalization intra‑year .
Balance sheet trajectory is constructive: Net leverage <4.5x exiting Q1 with goal <4x by YE; continued deleveraging should support equity narrative despite earnout cash uses .
Portfolio optimization supports fundamentals: Connected Risk Solutions divestiture and tech/data partnerships (ICEYE) aim to lift organic growth and margins while sharpening strategic focus .
Watch UCTS contingent dynamics: Timing/mix can swing quarterly margins; Q4 expected uplift implies potential year‑end outperformance vs mid‑year run rate .
Brand/ticker transition: Rebrand to The Baldwin Group and ticker change to BWIN may broaden investor awareness; no fundamental impact, but supports unified market identity .
Trading lens: Near‑term, stock may react to margin cadence and evidence of deleveraging; medium‑term, thesis rests on sustained organic growth, expanding adj. EBITDA margins, and disciplined capital allocation .

Baldwin Insurance Group, Inc. (BRP)·Q1 2024 Earnings Summary