$BRO · BROWN & BROWN, INC.

Brown & Brown filed its Q3 FY2026 10-Q, reporting revenue of $1.725B (+7.4% YoY) and net income attributable to the Company of $240M ($0.67 diluted EPS, flat vs $0.68 a year ago). The headline growth was acquisition-driven: core commissions and fees rose 9.7% to $1.62B, but organic revenue growth was just 1.2%, down sharply from 3.5% in Q3 2025. EBITDAC Margin - Adjusted compressed to 34.6% from 36.6%. Investment and other income fell 55.4% to $25M. For the nine months, organic revenue growth was only 0.3% versus 4.6% in the prior-year period.

Stock down 2.59% in regular session to $71.08; extended-hours last trade $71.00 (-0.12% vs close). The market is reacting to the sharp organic growth deceleration — 1.2% in Q3 vs 3.5% a year ago — and margin compression, which undercut the headline acquisition-fueled revenue beat.

The 1.2% organic growth rate exposes a $23.8B insurance broker whose top-line expansion is almost entirely M&A-dependent, with margins now eroding.

Insurance brokers have relied on M&A to sustain growth; BRO's 1.2% organic rate trails peers like AON and MMC who have reported stronger organic figures. The sharp drop in investment income also stands out in a sector where float income has been a tailwind for others.

Organic revenue growth fell to 1.2% (Q3) and 0.3% (nine months), signaling the core business is barely growing absent M&A. Investment income halved YoY. The Accession acquisition integration risk is explicitly flagged, along with elevated debt from financing that deal — interest expense flat at $100M quarterly but up 51.8% for the nine-month period.