Brown & Brown's Third-Quarter Organic Revenue Grows Just 1.2% as Revenue Rises 7.4% to $1.73 Billion, While Diluted EPS Slips to $0.67 and the Adjusted EBITDAC Margin Falls Two Points

Brown & Brown, one of the largest independent insurance brokers in the United States, has reported its results for the third quarter and the first nine months of 2026. The figures below come from the company's results release, filed as Exhibit 99.1 to a Form 8-K. The release states that final third-quarter results may differ from these preliminary, unaudited figures. It gives consolidated numbers only: segment-level organic growth for retail, programs, wholesale brokerage and services is not in it, and neither is any forward guidance. Where this article calculates a figure, it says so.

Revenue: strong headline, weak underlying growth

Total revenues for the quarter were $1,725 million, compared with $1,606 million a year earlier, an increase of $119 million, or 7.4%. Commissions and fees, the largest part of revenue, were $1,700 million against $1,550 million, up 9.7%. Those headline numbers include revenue from acquired businesses. The company's organic revenue measure, which excludes contingent commissions, operations acquired in the last 12 months, divested business, foreign currency translation and litigation-related effects, was $1,464 million against $1,447 million. That is an increase of $17 million, or 1.2%. Including contingent commissions, which are bonuses paid by insurers depending on volume or results, organic revenue was $1,543 million against $1,520 million, up $23 million, or 1.5%. The company reports that acquisitions added $156 million of commissions and fees in the quarter, which are excluded from the organic figure.

The gap between 9.7% growth in commissions and fees and 1.2% organic growth is the main point of the quarter. Most of the reported increase came from businesses bought rather than from selling more to existing clients. The release's description of the chief executive's comment is that the third quarter reflected the efforts of teammates to win more customers, and that about 5,000 teammates joined from Accession just over a year ago.

Profit and margins

Income before income taxes was $320 million against $311 million, up 2.9%, and the pre-tax margin was 18.6% against 19.4%, a decline of 0.8 percentage points. Net income attributable to the company was $240 million against $227 million, up 5.7%. Diluted earnings per share were $0.67 against $0.68, a decrease of 1.5%, which is lower even though net income rose, because the number of shares was larger after the 2025 offering. The release does not itemize the share count in the portion reviewed, so that explanation is an inference from the figures. Adjusted diluted EPS, which excludes items such as earn-out changes, disposal gains or losses, acquisition and integration costs and amortization, was $1.07 against $1.05, up 1.9%.

EBITDAC means earnings before interest, taxes, depreciation, amortization and changes in estimated acquisition earn-out payables. It was $575 million against $529 million, with a margin of 33.3% against 32.9%. Adjusted EBITDAC, which also excludes disposal gains or losses, acquisition and integration costs and an escrow mark-to-market item, was $597 million against $587 million, up 1.7%, and its margin fell to 34.6% from 36.6%, a decline of 2.0 points. The two margins therefore moved in opposite directions. The release does not explain why the two diverged; the difference lies in the size of the items each measure excludes. The release also notes that the 2025 quarter includes about $29 million of interest income from offering and notes proceeds that were held for the Accession purchase, which inflates the prior-year base against which this year's profit is compared.

Nine months

For the first nine months, total revenues were $5,302 million against $4,295 million, up 23.4%, and commissions and fees were $5,234 million against $4,183 million. Organic revenue was $3,987 million against $3,977 million, up only 0.3%, and with contingents it was $4,200 million against $4,138 million, up 1.5%. Acquisitions contributed $985 million of the revenue. Net income attributable to the company was $954 million against $790 million, up 20.8%, yet diluted EPS was flat at $2.57, and adjusted diluted EPS rose 5.7% to $3.52 from $3.33. Adjusted EBITDAC was $1,927 million against $1,594 million, up 20.9%, with an adjusted margin of 36.3% against 37.1%.

Cash flow and the balance sheet

Operating cash flow for the nine months was $1,140 million against $1,006 million. Cash spent on acquisitions was $41 million, compared with $7,659 million in the same period of 2025, which reflects the absence of a deal on the scale of Accession this year. The company bought back $750 million of its own stock. At September 30, 2026, total assets were $29,448 million and total equity was $12,601 million.

How to read it

Three points stand out. Organic growth near 1% means that, apart from acquisitions, revenue is barely growing, which is consistent with a softening insurance market in which lower premiums reduce commissions. The margin decline suggests costs are rising faster than underlying revenue. And the year-over-year profit growth leans on acquired earnings and a comparison period that includes unusual interest income. The release provides no outlook, so there is no company statement about whether organic growth will improve.

Limits

This article summarizes a company release containing unaudited figures and does not include analyst estimates or the share-price reaction. The explanation of the EPS decline is an inference. It is general information, not investment advice.