Executive Summary

Solid top-line and margin execution against a difficult property backdrop: total revenue +23.0% YoY to $855.2M, adjusted EBITDAC +24.5% to $308.4M, and adjusted diluted EPS $0.66 (+13.8% YoY). Organic revenue growth slowed to 7.1% on steep property price declines; casualty remained strong .
Modest beats versus S&P Global consensus: adjusted/“Primary” EPS $0.66 vs $0.65* and net commissions & fees $840.9M vs $830.2M*, while EBITDA (S&P basis) trailed $273.0M* vs $301.8M* (definitions differ from company’s EBITDAC) .
Guidance trimmed: FY25 organic growth to 9–11% (from 11–13%) and adjusted EBITDAC margin to 32.5–33.0% (from 32.5–33.5%), reflecting 20–30% property rate declines seen in June and cautious macro for construction; CFO still targets 35% margin in 2027 .
Strategic catalysts: expanded Nationwide alliance and delegated authority on Markel reinsurance renewal rights via Ryan Re; near-term margin headwind from talent ramp in 2H25, expected to be accretive starting 2026 .
Portfolio implications: Property softness was the swing factor; casualty strength and M&A contributions cushioned growth. Watch cat season/property pricing inflection and execution on the Nationwide/Markel opportunity as stock catalysts .

Note: Consensus figures marked with * are Values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well
- Strong execution and resilience: “We grew total revenue 23% … Adjusted EBITDAC 24.5% … expanded our margins” (Patrick G. Ryan) .
- Casualty momentum across all specialties offset property headwinds; high renewal retention and share gains continued .
- Strategic expansion: Nationwide alliance broadened (Ryan Re to underwrite Markel reinsurance renewal rights), and alternative risk build-out advancing; accretive from 2026 per management .
What Went Wrong
- Organic growth decelerated to 7.1% (vs 14.2% LY) on rapid property price declines (accelerated to 20–30% down in June), pressuring 2Q growth .
- FY25 guidance lowered on property and macro (construction) softness; margin range narrowed to account for 2H talent investments and rate backdrop .
- On S&P EBITDA basis, Q2 was below consensus (definitions differ from company’s EBITDAC), reflecting higher operating expenses (G&A +29% YoY) and amortization from M&A .

Financial Results

Quarterly performance (oldest → newest)

Metric	Q4 2024	Q1 2025	Q2 2025
Total Revenue ($USD Millions)	$663.5	$690.2	$855.2
Net Commissions & Fees ($USD Millions)	$649.4	$676.1	$840.9
GAAP Diluted EPS ($)	$0.10	$(0.22)	$0.38
Adjusted Diluted EPS ($)	$0.45	$0.39	$0.66
Net Income ($USD Millions)	$42.6	$(4.4)	$124.7
Net Income Margin (%)	6.4%	(0.6)%	14.6%
Adjusted EBITDAC ($USD Millions)	$216.0	$200.5	$308.4
Adjusted EBITDAC Margin (%)	32.6%	29.1%	36.1%
Organic Revenue Growth Rate (%)	11.0%	12.9%	7.1%

Consensus vs. actuals (Q2 2025)

Metric	Consensus	Actual	Surprise
Primary EPS ($)	0.6513*	0.66	+$0.01
Revenue – Net Commissions & Fees ($USD Millions)	830.2*	840.9	+$10.7 (+1.3%)
EBITDA ($USD Millions, S&P basis)	301.8*	273.0*	−$28.8 (−9.5%)

Note: Consensus metrics marked with * are Values retrieved from S&P Global. S&P “Revenue” basis aligns to net commissions & fees; EBITDA basis differs from company’s EBITDAC.

Segment breakdown – Net commissions & fees (Q2 2025 vs Q2 2024)

Specialty ($USD Millions)	Q2 2024	Q2 2025	YoY $	YoY %
Wholesale Brokerage	$444.1	$477.2	$33.0	7.4%
Binding Authorities	$80.6	$94.5	$13.9	17.2%
Underwriting Management	$155.5	$269.2	$113.7	73.1%
Total Net Commissions & Fees	$680.2	$840.9	$160.6	23.6%

Revenue by type (Q2 2025 vs Q2 2024)

Type ($USD Millions)	Q2 2024	Q2 2025	YoY $	YoY %
Net Commissions & Policy Fees	$656.9	$787.1	$130.1	19.8%
Supplemental & Contingent Commissions	$8.9	$35.6	$26.7	299.1%
Loss Mitigation & Other Fees	$14.4	$18.2	$3.8	26.2%

Key ratios and KPIs (Q2 2025 vs Q2 2024)

KPI	Q2 2024	Q2 2025
Compensation & Benefits Expense Ratio	59.5%	56.7%
G&A Expense Ratio	11.9%	12.5%
Adjusted Comp & Benefits Ratio	55.2%	53.0%
Adjusted G&A Ratio	9.2%	10.9%
Adjusted Net Income Margin	23.1%	21.6%
Adjusted EBITDAC Margin	35.6%	36.1%
Organic Revenue Growth	14.2%	7.1%

Balance sheet and cash/dividends

Cash & cash equivalents $172.6M; debt principal $3.5B as of 6/30/25 .
Quarterly dividend $0.12 per share declared, payable Aug 26, 2025 (record date Aug 12) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Organic Revenue Growth	FY 2025	11.0% – 13.0%	9.0% – 11.0%	Lowered
Adjusted EBITDAC Margin	FY 2025	32.5% – 33.5%	32.5% – 33.0%	Lowered (tightened)
Adjusted Effective Tax Rate	FY 2025	~26% (Q1 commentary)	~26% remainder of 2025	Maintained
GAAP Interest Expense	FY 2025	~$217M (Q1)	~$223M; ~$57M in Q3	Raised
Dividend per Share (Quarterly)	Ongoing	$0.12 (Q1)	$0.12 (Q2 declared)	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2: Q4’24)	Previous Mentions (Q-1: Q1’25)	Current Period (Q2’25)	Trend
Property pricing/cycle	Growth across most P&C; entering softer phase	Modest property growth amid rate deceleration; strong flow, high retention	Rapid rate declines accelerated to −20–30% in June; expect near-term softness; potential rebound if losses rise	Negative near term; medium-term cyclical upside possible
Casualty momentum	Growth across property & casualty	Strong new business and retention across casualty lines	“Another great quarter” in casualty; multiple niches firming (transportation, habitational, public entity, energy)	Positive and durable
Strategic alliances / reinsurance	—	Building alternative risk with USQ; Nationwide relationship emphasized	Expanded Nationwide alliance; Ryan Re delegated authority on Markel reinsurance renewal rights; accretive from 2026	Positive structural
AI / technology	—	Digitizing workflows; experimenting with AI to improve efficiency	Continued investments; some AI spend reflected in higher G&A	Positive LT productivity, ST margin drag
Macro (construction; tariffs/trade)	—	Cautious on trade/economy	Macro uncertainty and tariffs impacting construction; longer quote-to-bind cycles	Headwind near term
M&A integration	Large FY24/early-25 deals; TAM expansion	Robust pipeline; closed USQRisk	Closed 360° Underwriting, JM Wilson, USQRisk; strong contribution to Underwriting Mgmt growth	Positive inorganic driver

Management Commentary

“We grew total revenue 23%, supported by excellent contributions from our recent M&A cohort and organic growth in a very tough climate… We remain relentless in our goal to yet again deliver double-digit organic growth for the full year” — Patrick G. Ryan, Founder & Executive Chairman .
“June really accelerated [property rate declines]… last quarter we saw 10–20% reductions… this quarter, 20–30%. We’re offsetting with very strong casualty performance… professional liability has come back very strong” — Tim Turner, CEO .
“We are in the process of renewing our strategic alliance with Nationwide for a fresh 10-year commitment… Ryan Re will be Nationwide’s exclusive reinsurance MGU in their reinsurance renewal rights deal with Markel… temporary impact to margins in 2025; benefit beginning Q1 2026” — Jeremiah Bickham, President .
“For the full year 2025, we are now guiding to organic revenue growth of 9% to 11%… and adjusted EBITDAC margins of 32.5% to 33.0%… investments in Ryan Re and alternative risk will generate significant new business and margin benefits in the near, medium, and long term” — Janice (Janice) Hamilton, CFO .

Q&A Highlights

Property dynamics and guidance: June’s property pricing declines accelerated to −20–30%; guidance assumes those conditions persist through year-end; property expected to decline modestly for FY25 .
Margin puts/takes: Midpoint moved down 25 bps mainly due to property decline and construction macro; incremental 2H25 staffing and AI/talent investments weigh near term, expected to be accretive thereafter .
Nationwide/Markel reinsurance renewal rights: Management would not size revenue; highlighted possible attrition typical of renewal rights deals and first-half seasonality; positioned to renew and grow with added talent .
Construction: Strong quoting and pipelines, but extended quote-to-bind cycles due to rates/financing; many renewable policies remain resilient .
Capital/leverage: Credit net leverage ~3.5x; ample capacity for M&A; FY25 GAAP interest expense now ~$223M, $57M in Q3 .

Estimates Context

Q2 2025 performance vs S&P Global consensus: slight beat on Primary EPS ($0.66 vs $0.65*) and net commissions & fees ($840.9M vs $830.2M*), while EBITDA missed on S&P basis ($273.0M* vs $301.8M*), noting definition differences vs company’s EBITDAC .
Forward estimates likely adjust lower for FY25 organic growth and margin given reduced guidance and property outlook; interest expense now higher at ~$223M for 2025, impacting EPS models .