Research · Sep 3, 2026
[BRO] Brown & Brown Thesis 2026: Accession Acquisition Drives Revenue to Record Scale
Brown & Brown Inc. FY25 revenue $5.96B (+23%); op income $1.70B (+24%); NI $1.05B; EPS $3.16. Q4 revenue $1.6B (+35.7% YoY). Adj EBITDAC margin 35.9% (+70bp). Cash flow from operations $1.45B (+23.5% YoY). 43 acquisitions FY25 added ~$1.8B annualized revenue, including Accession (largest acquisition in BRO history) which contributed $405M Q4 (slightly below $430-$450M guide; ~200bp Q4 margin impact). 6 acquisitions in Q4 alone ($29M annualized). Q4 retail organic +1.1%; full-year retail organic +2.8%. Q4 Specialty Distribution organic -7.8% (flood claims revenue + CAT property rate declines); full-year Specialty +2.8% organic. Loss of 275 teammates with $23M revenue (talent war). Long-term adj EBITDAC margin target raised to 32-37%. FY26: Accession EBITDA synergies $30-$40M anticipated; Specialty Distribution contingents -$15M; retail organic modest improvement; effective tax 24-25%.