Ryan Specialty Reports First Quarter 2025 Results

- Total Revenue grew 25.0% year-over-year to $690.2 million -

- Organic Revenue Growth Rate* of 12.9% year-over-year -

- Net Income of $(4.4) million, or $(0.22) per diluted share -

- Adjusted EBITDAC* grew 27.5% year-over-year to $200.5 million -

- Adjusted Net Income increased 13.0% year-over-year to $107.8 million -

- Adjusted Diluted Earnings Per Share grew 11.4% or $0.39 per diluted share -

CHICAGO--(BUSINESS WIRE)--May 01, 2025-- 

Ryan Specialty Holdings, Inc. $(RYAN)$ ("Ryan Specialty" or the "Company"), a leading international specialty insurance firm, today announced results for the first quarter ended March 31, 2025.

First Quarter 2025 Highlights

   -- Revenue grew 25.0% year-over-year to $690.2 million, compared to $552.0 
      million in the prior-year period 
   -- Organic Revenue Growth Rate* was 12.9% for the quarter, compared to 13.7% 
      in the prior-year period 
   -- Net Income decreased $45.1 million year-over-year to $(4.4) million, 
      compared to $40.7 million in the prior-year period. Diluted Loss Per 
      Share was $(0.22) 
   -- Adjusted EBITDAC* increased 27.5% to $200.5 million, compared to $157.2 
      million in the prior-year period 
   -- Adjusted EBITDAC Margin* of 29.1%, compared to 28.5% in the prior-year 
      period 
   -- Adjusted Net Income* increased 13.0% to $107.8 million, compared to $95.4 
      million in the prior-year period 
   -- Adjusted Diluted Earnings Per Share* increased 11.4% to $0.39, compared 
      to $0.35 in the prior-year period 
   -- Capital return to shareholders and LLC unit holders was $21.9 million of 
      regular dividends and distributions 

"It was a strong start to 2025 for Ryan Specialty as we continue to deliver the innovative solutions our clients and trading partners have come to expect," said Patrick G. Ryan, Founder and Executive Chairman of Ryan Specialty. "We grew total revenue 25%, supported by organic growth of nearly 13% and excellent contributions from M&A, which also added 13% to our top line, partially offset by a slight decline in fiduciary investment income. We grew Adjusted EBITDAC 27.5% while continuing to expand our margins and grew Adjusted Diluted EPS by 11.4%. We believe we remain well positioned to deliver another strong year across the firm."

"We picked up nicely from the close of 2024, leveraging our differentiated talent to win additional new business and gain market share," added Tim Turner, Chief Executive Officer of Ryan Specialty. "We remain confident that we will be able to navigate through the current challenging macro environment given our diverse product and services offering, durable business model, and the resiliency of the specialty and E&S markets. As a result, we continue to believe we have a tremendous runway to deliver sustainable growth over the long term, and to create additional value for our shareholders."

Summary of First Quarter 2025 Results

 
                       Three Months Ended 
                            March 31,                Change 
                   --------------------------  ------------------- 
(in thousands, 
except 
percentages and 
per share data)        2025          2024          $         % 
                   ------------  ------------  ---------  -------- 
GAAP financial 
measures 
  Total revenue    $690,166      $552,046      $138,120   25.0% 
  Net commissions 
   and fees         676,128       537,887       138,241   25.7 
  Compensation 
   and benefits     430,289       373,527        56,762   15.2 
  General and 
   administrative   106,060        75,867        30,193   39.8 
  Total operating 
   expenses         589,931       479,397       110,534   23.1 
  Operating 
   income           100,235        72,649        27,586   38.0 
  Net income 
   (loss)            (4,389)       40,677       (45,066)    NM 
  Net income 
   (loss) 
   attributable 
   to Ryan 
   Specialty 
   Holdings, 
   Inc.             (27,642)       16,535       (44,177)    NM 
  Compensation 
   and benefits 
   expense ratio 
   (1)                 62.3%         67.7% 
  General and 
   administrative 
   expense ratio 
   (2)                 15.4%         13.7% 
  Net income 
   (loss) margin 
   (3)                 (0.6)%         7.4% 
  Earnings (loss) 
   per share (4)   $  (0.22)     $   0.14 
  Diluted 
   earnings 
   (loss) per 
   share (4)       $  (0.22)     $   0.13 
Non-GAAP 
financial 
measures* 
  Organic revenue 
   growth rate         12.9%         13.7% 
  Adjusted 
   compensation 
   and benefits 
   expense         $397,428      $330,022      $ 67,406   20.4% 
  Adjusted 
   compensation 
   and benefits 
   expense ratio       57.6%         59.8% 
  Adjusted 
   general and 
   administrative 
   expense         $ 92,237      $ 64,802      $ 27,435   42.3% 
  Adjusted 
   general and 
   administrative 
   expense ratio       13.4%         11.7% 
  Adjusted 
   EBITDAC         $200,501      $157,222      $ 43,279   27.5% 
  Adjusted 
   EBITDAC 
   margin              29.1%         28.5% 
  Adjusted net 
   income          $107,839      $ 95,417      $ 12,422   13.0% 
  Adjusted net 
   income margin       15.6%         17.3% 
  Adjusted 
   diluted 
   earnings per 
   share           $   0.39      $   0.35      $   0.04   11.4% 
 
 
*      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. 
 
 NM    Not Meaningful 
 
(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 (Loss) Per Share" of the unaudited quarterly 
       consolidated financial statements. 
 
 

First Quarter 2025 Review*

Total revenue for the first quarter of 2025 was $690.2 million, an increase of 25.0% compared to $552.0 million in the prior-year period. This increase was primarily due to continued solid Organic revenue growth of 12.9%, driven by new client wins and expanded relationships with existing clients, coupled with continued expansion of the E&S market, revenue from acquisitions completed within the trailing twelve months ended March 31, 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.

Total operating expenses for the first quarter of 2025 were $589.9 million, a 23.1% increase compared to the prior-year period. This increase was primarily due to an increase in Compensation and benefits expense compared to the prior-year period resulting from higher compensation due to growth in headcount and revenue growth, and an increase in Acquisition related long-term incentive compensation, partially offset by lower Change in contingent consideration due to a downward adjustment on the US Assure earn-out, and lower Restructuring and related expenses due to the completion of the ACCELERATE 2025 program. General and administrative expense also increased compared to the prior-year period due to an increase in IT and professional services, higher expenses to accommodate revenue growth, and higher travel and entertainment expense.

Net income for the first quarter of 2025 decreased $45.1 million to a loss of $(4.4) million, compared to $40.7 million of income in the prior-year period. The decrease was mainly due to higher Income tax expense during the period related to the legal entity reorganization associated with and subsequent to the Velocity acquisition, which is non-recurring and non-cash, partially offset by stronger year-over-year revenue growth.

Adjusted EBITDAC grew 27.5% to $200.5 million from $157.2 million in the prior-year period. Adjusted EBITDAC margin for the quarter was 29.1%, compared to 28.5% in the prior-year period. The increase in Adjusted EBITDAC was driven primarily by solid revenue growth, partially offset by higher Adjusted compensation and benefits expense, as well as higher Adjusted general and administrative expense.

Adjusted net income for the first quarter of 2025 increased 13.0% to $107.8 million, compared to $95.4 million in the prior-year period. Adjusted net income margin was 15.6%, compared to 17.3% in the prior-year period. Adjusted diluted earnings per share for the first quarter of 2025 increased 11.4% to $0.39, compared to $0.35 in the prior-year period.

 
*    For the definition of each of the non-GAAP measures referred to above, as 
     well as a reconciliation of such non-GAAP measures to their most directly 
     comparable GAAP measures, see "Non-GAAP Financial Measures and Key 
     Performance Indicators" below. 
 

First Quarter 2025 Net Commissions and Fees by Specialty and Revenue by Type

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