- Total Revenue grew 24.8% year-over-year to $754.6 million -
- Organic Revenue Growth Rate* of 15.0% year-over-year -
- Net Income of $62.6 million, or $0.20 per diluted share -
- Adjusted EBITDAC* grew 23.8% year-over-year to $235.5 million -
- Adjusted Net Income increased 15.9% year-over-year to $131.7 million -
- Adjusted Diluted Earnings Per Share grew 14.6% or $0.47 per diluted share -
CHICAGO--(BUSINESS WIRE)--October 30, 2025--
Ryan Specialty Holdings, Inc. (NYSE: RYAN) ("Ryan Specialty" or the "Company"), a leading international specialty insurance firm, today announced results for the third quarter ended September 30, 2025.
Third Quarter 2025 Highlights
-- Revenue grew 24.8% year-over-year to $754.6 million, compared to $604.7
million in the prior-year period
-- Organic Revenue Growth Rate* was 15.0% for the quarter, compared to
11.8% in the prior-year period
-- Net Income increased 118.6% year-over-year to $62.6 million, compared
to $28.6 million in the prior-year period. Diluted Earnings Per Share was
$0.20
-- Adjusted EBITDAC* increased 23.8% to $235.5 million, compared to $190.3
million in the prior-year period
-- Adjusted EBITDAC Margin* of 31.2%, compared to 31.5% in the prior-year
period
-- Adjusted Net Income* increased 15.9% to $131.7 million, compared to
$113.6 million in the prior-year period
-- Adjusted Diluted Earnings Per Share* increased 14.6% to $0.47, compared
to $0.41 in the prior-year period
-- Capital return to stockholders and LLC unit holders was $22.1 million
of regular dividends and distributions
"It was a strong quarter for Ryan Specialty, demonstrating the strength and resilience of our firm throughout a challenging insurance and macro environment," said Patrick G. Ryan, Founder and Executive Chairman of Ryan Specialty. "We grew total revenue 25%, supported by strong organic growth of 15%, and another quarter of excellent contributions from our recent M&A transactions. We grew Adjusted EBITDAC 23.8% and Adjusted Diluted EPS by 14.6%. I am especially proud of what we've achieved while making substantial strategic investments during the quarter to capitalize on excellent opportunities to add broking and underwriting talent to our world-class team, as well as making continued investments in technology. We are well positioned to strengthen our position as an international leader in the specialty lines industry for years to come."
"Our team's relentless execution this quarter underscores the power of our platform, the depth of our expertise, and our unwavering commitment to serving our clients and trading partners," added Timothy W. Turner, Chief Executive Officer of Ryan Specialty. "We are navigating this challenging and transitioning market with confidence, driven by our diverse product offerings, durable business model, and a culture that continues to attract talented professionals. The runway ahead of us is significant, and we remain focused on delivering industry-leading organic growth and long-term value for our shareholders."
Summary of Third Quarter 2025 Results
Three Months Ended Nine Months Ended
September 30, Change September 30, Change
-------------------------- ------------------- ------------------------------ --------------------
(in thousands,
except percentages
and per share
data) 2025 2024 $ % 2025 2024 $ %
------- ------- -------- --------- --------- --------- --------- ---------
GAAP financial
measures
Total revenue $754,577 $604,694 $149,883 24.8% $2,299,913 $1,852,181 $447,732 24.2%
Net commissions
and fees 739,552 588,129 151,423 25.7 2,256,537 1,806,264 450,273 24.9
Compensation
and benefits 440,434 393,249 47,185 12.0 1,355,995 1,180,825 175,170 14.8
General and
administrative 117,589 88,684 28,905 32.6 330,698 247,518 83,180 33.6
Total operating
expenses 643,786 523,217 120,569 23.0 1,897,835 1,533,687 364,148 23.7
Operating
income 110,791 81,477 29,314 36.0 402,078 318,494 83,584 26.2
Net income 62,603 28,643 33,960 118.6 182,919 187,358 (4,439) (2.4)
Net income
attributable
to Ryan
Specialty
Holdings,
Inc. 31,085 17,589 13,496 76.7 55,419 80,911 (25,492) (31.5)
Compensation
and benefits
expense ratio
(1) 58.4% 65.0% 59.0% 63.8%
General and
administrative
expense ratio
(2) 15.6% 14.7% 14.4% 13.4%
Net income
margin (3) 8.3% 4.7% 8.0% 10.1%
Earnings per
share (4) $ 0.24 $ 0.15 $ 0.44 $ 0.67
Diluted
earnings per
share (4) $ 0.20 $ 0.09 $ 0.41 $ 0.59
Non-GAAP financial
measures*
Organic revenue
growth rate 15.0% 11.8% 11.4% 13.3%
Adjusted
compensation
and benefits
expense $417,217 $343,442 $ 73,775 21.5% $1,268,059 $1,057,424 $210,635 19.9%
Adjusted
compensation
and benefits
expense ratio 55.3% 56.8% 55.1% 57.1%
Adjusted
general and
administrative
expense $101,827 $ 70,991 $ 30,836 43.4% $ 287,414 $ 199,583 $ 87,831 44.0%
Adjusted
general and
administrative
expense ratio 13.5% 11.7% 12.5% 10.8%
Adjusted
EBITDAC $235,533 $190,261 $ 45,272 23.8% $ 744,440 $ 595,174 $149,266 25.1%
Adjusted
EBITDAC
margin 31.2% 31.5% 32.4% 32.1%
Adjusted net
income $131,704 $113,633 $ 18,071 15.9% $ 424,225 $ 369,604 $ 54,621 14.8%
Adjusted net
income margin 17.5% 18.8% 18.4% 20.0%
Adjusted
diluted
earnings per
share $ 0.47 $ 0.41 $ 0.06 14.6% $ 1.52 $ 1.34 $ 0.18 13.4%
* For a definition and a reconciliation of Organic revenue growth rate,
Adjusted compensation and benefits expense, Adjusted compensation and
benefits ratio, Adjusted general and administrative expense, Adjusted
general and administrative expense ratio, Adjusted EBITDAC, Adjusted
EBITDAC margin, Adjusted net income, Adjusted net income margin, and
Adjusted diluted earnings per share to the most directly comparable
GAAP measure, see "Non-GAAP Financial Measures and Key Performance
Indicators" below.
(1) Compensation and benefits expense ratio is defined as Compensation
and benefits divided by Total revenue.
(2) General and administrative expense ratio is defined as General and
administrative expense divided by Total revenue.
(3) Net income margin is defined as Net income divided by Total revenue.
(4) See "Note 9, Earnings Per Share" of the unaudited quarterly
consolidated financial statements.
Third Quarter 2025 Review*
Total revenue for the third quarter of 2025 was $754.6 million, an increase of 24.8% compared to $604.7 million in the prior-year period. This increase was primarily due to continued organic revenue growth of 15.0%, driven by new client wins and expanded relationships with existing clients, coupled with continued expansion of the specialty and E&S markets, revenue from acquisitions completed within the trailing twelve months ended September 30, 2025, changes in contingent commissions, and the impact of foreign exchange rates. We experienced growth across the majority of our casualty lines and modest growth in property lines across all three specialties.
Total operating expenses for the third quarter of 2025 were $643.8 million, a 23.0% increase compared to $523.2 million in the prior-year period. This increase was primarily due to higher Compensation and benefits expenses compared to the prior-year period resulting from higher compensation due to growth in headcount and revenue, partially offset by a decrease in Restructuring and related expenses due to the completion of the ACCELERATE 2025 program, lower Equity-based compensation, and lower Acquisition related long-term incentive compensation. General and administrative expense also increased compared to the prior-year period due to an increase in professional services and IT charges associated with ongoing technology and data initiatives as well as costs directly linked to revenue growth, recruiter fees, and higher expenses to accommodate both organic and inorganic revenue growth, partially offset by lower Restructuring and related expenses due to the completion of the ACCELERATE 2025 program.
(MORE TO FOLLOW) Dow Jones Newswires
October 30, 2025 16:05 ET (20:05 GMT)