The Baldwin Group Announces Second Quarter 2026 Results

— Second Quarter Total Revenue Growth of 30% to $492.9 Million — — Second Quarter Net Loss of $56.0 Million; Adjusted EBITDA(1) Growth of 37% to $116.7 Million — — Second Quarter Diluted Loss Per Share of $0.42; Adjusted Diluted EPS(2) of $0.48 — — Second Quarter Net Loss Margin of 11%; Adjusted EBITDA Margin(1) of 24% — — Second Quarter Net Cash Provided by Operating Activities of $45.6 Million; Adjusted Free Cash Flow(3) Increased 437% to $46.4 Million — — Year-to-Date Net Cash Provided by Operating Activities of $39.5 Million; Adjusted Free Cash Flow Increased 34% to $46.2 Million — TAMPA, Fla.--(BUSINESS WIRE)--Jul. 30, 2026-- The Baldwin Group, the brand name for The Baldwin Insurance Group, Inc. (“Baldwin” or the “Company”) (NASDAQ: BWIN), an independent insurance distribution firm delivering tailored insurance solutions to a wide range of personal and commercial clients, today announced its results for the second quarter ended June 30, 2026. SECOND QUARTER 2026 HIGHLIGHTS Total revenue increased 30% year-over-year to $492.9 million Organic revenue growth(4) of 2% year-over-year CAC Group total revenue growth(5) of 23% year-over-year GAAP net loss of $56.0 million and GAAP diluted loss per share of $0.42 Adjusted net income(2) of $68.5 million Adjusted diluted EPS increased 14% year-over-year to $0.48 Adjusted EBITDA grew 37% to $116.7 million Net loss margin of 11% Adjusted EBITDA margin of 23.7%, a 110 basis point expansion compared to 22.6% in the prior-year period Net cash provided by operating activities of $45.6 million Adjusted free cash flow increased 437% year-over-year to $46.4 million “We are thrilled with our momentum as reflected in our strong second quarter results. Total revenue grew 30% to $492.9 million, adjusted EBITDA grew 37% to $116.7 million, and adjusted free cash flow increased 437% to $46.4 million,” said Trevor Baldwin, Chief Executive Officer of The Baldwin Group. “As we previously highlighted, we have largely lapped the idiosyncratic, one-time headwinds that we believe will transition into tailwinds for our business in the back half of 2026. When combined with the strong contribution from our recent partnerships, we continue to win market share at an outsized rate, evidenced by sales velocity of 30% in our combined IAS business and normalized organic growth of 8%. This is a testament to the depth of expertise, value delivered to clients, and commitment from our dedicated colleagues.” Baldwin added, “We remain excited for the opportunities we have ahead of us and what we can achieve in the coming year for shareholders, clients and colleagues.” LIQUIDITY AND CAPITAL RESOURCES As of June 30, 2026, cash and cash equivalents were $184.5 million and the Company had $259.4 million of borrowing capacity under its revolving credit facility. SIX MONTHS 2026 RESULTS Revenue increased 29% year-over-year to $1.0 billion Organic revenue growth of 2% year-over-year CAC Group total revenue growth of 25% year-over-year GAAP net loss of $57.9 million and GAAP diluted loss per share of $0.39 Adjusted net income of $157.8 million Adjusted diluted EPS grew 5% year-over-year to $1.11 Adjusted EBITDA grew 27% year-over-year to $254.0 million Net loss margin of 6% Adjusted EBITDA margin was 24.8% compared to 25.2% in the prior-year period Net cash provided by operating activities of $39.5 million Adjusted free cash flow increased 34% year-over-year to $46.2 million WEBCAST AND CONFERENCE CALL INFORMATION Baldwin will host a live audio webcast today at 5:00 PM Eastern Time to discuss the Company’s second quarter 2026 performance, including management’s perspectives on the business. The live audio webcast will be accessible via Baldwin’s investor relations website at ir.baldwin.com and a replay of the webcast will be available at ir.baldwin.com for approximately one year. ABOUT THE BALDWIN GROUP The Baldwin Group, the brand name for The Baldwin Insurance Group, Inc. ("Baldwin") (NASDAQ: BWIN) and its affiliates, is an independent insurance distribution firm providing indispensable expertise and insights that strive to give our clients the confidence to pursue their purpose, passion and dreams. As a team of dedicated entrepreneurs and insurance professionals, we have come together to help protect the possible for our clients. We do this by delivering bespoke client solutions, services, and innovation through our comprehensive and tailored approach to risk management, insurance, and employee benefits. We support our clients, colleagues, insurance company partners, and communities through the deployment of vanguard resources and capital to drive our organic and inorganic growth. The Baldwin Group proudly represents more than three million clients across the United States and internationally. For more information, please visit www.baldwin.com. FOOTNOTES (1) Adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures. Reconciliation of adjusted EBITDA and adjusted EBITDA margin to net income (loss), the most directly comparable GAAP financial measure, is set forth in the reconciliation table accompanying this release. (2) Adjusted net income and adjusted diluted EPS are non-GAAP measures. Reconciliation of adjusted net income to net income attributable to Baldwin and reconciliation of adjusted diluted EPS to diluted earnings (loss) per share, the most directly comparable GAAP financial measures, is set forth in the reconciliation table accompanying this release. (3) Adjusted free cash flow is a non-GAAP measure. Reconciliation of adjusted free cash flow to net cash provided by (used in) operating activities, the most directly comparable GAAP financial measure, is set forth in the reconciliation table accompanying this release. (4) Organic revenue for the three and six months ended June 30, 2025 used to calculate organic revenue growth for the three and six months ended June 30, 2026 was $376.3 million and $786.8 million, respectively, which is adjusted to exclude commissions and fees from divestitures that occurred during 2025. Organic revenue is also adjusted to exclude the first 12 months of commissions and fees generated from new partners during the three and six months ended June 30, 2026. Organic revenue and organic revenue growth are non-GAAP measures. Reconciliation of organic revenue and organic revenue growth to commissions and fees, the most directly comparable GAAP financial measure, is set forth in the reconciliation table accompanying this release. (5) CAC Group total revenue growth is calculated as standalone CAC Group GAAP revenue for the three and six months ended June 30, 2026 compared to CAC Group GAAP revenue for the three and six months ended June 30, 2025. NOTE REGARDING FORWARD-LOOKING STATEMENTS This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which represent Baldwin’s expectations or beliefs concerning future events. Forward-looking statements are statements other than historical facts and may include statements that address Baldwin's future operating, financial or business performance or Baldwin’s strategies or expectations. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” “outlook” or “continue,” or the negative of these terms or other comparable terminology. Forward-looking statements are based on management’s current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements. Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, those described under the caption “Risk Factors” in Baldwin’s Annual Report on Form 10-K for the year ended December 31, 2025 and in Baldwin’s other filings with the SEC, which are available free of charge on the SEC's website at: www.sec.gov, including those risks and other factors relevant to Baldwin's business, financial condition and results of operations. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All forward-looking statements and all subsequent written and oral forward-looking statements attributable to Baldwin or to persons acting on Baldwin's behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and Baldwin does not undertake any obligation to update them in light of new information, future developments or otherwise, except as may be required under applicable law. THE BALDWIN INSURANCE GROUP, INC. Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) For the Three Months Ended June 30, For the Six Months Ended June 30, (in thousands, except per share data) 2026 2025 2026 2025 Revenues: Commissions and fees $ 488,789 $ 376,249 $ 1,017,650 $ 786,780 Investment income 4,150 2,562 7,524 5,436 Total revenues 492,939 378,811 1,025,174 792,216 Operating expenses: Colleague compensation and benefits 264,323 195,471 547,935 393,491 Outside commissions 71,798 73,586 138,477 139,409 Other operating expenses 94,058 56,119 318,221 114,138 Amortization expense 56,027 26,010 111,074 51,892 Change in fair value of contingent consideration 12,303 (1,957 ) 14,272 6,104 Depreciation expense 2,773 1,642 4,804 3,225 Total operating expenses 501,282 350,871 1,134,783 708,259 Operating income (loss) (8,343 ) 27,940 (109,609 ) 83,957 Other income (expense): Interest expense, net (45,666 ) (31,320 ) (84,566 ) (61,296 ) Gain (loss) on divestitures — (1,111 ) — 290 Loss on extinguishment and modification of debt (129 ) — (7,538 ) (2,394 ) Other income (expense), net (2,423 ) 35 (1,776 ) (115 ) Total other expense, net (48,218 ) (32,396 ) (93,880 ) (63,515 ) Income (loss) before income taxes and share of net earnings of equity method investee (56,561 ) (4,456 ) (203,489 ) 20,442 Share of net earnings of equity method investee 664 — 1,175 — Income (loss) before income taxes (55,897 ) (4,456 ) (202,314 ) 20,442 Less: income tax expense (benefit) 84 685 (144,437 ) 685 Net income (loss) (55,981 ) (5,141 ) (57,877 ) 19,757 Less: net income (loss) attributable to noncontrolling interests (16,986 ) (1,977 ) (21,223 ) 8,982 Net income (loss) attributable to Baldwin $ (38,995 ) $ (3,164 ) $ (36,654 ) $ 10,775 Basic earnings (loss) per share $ (0.42 ) $ (0.05 ) $ (0.39 ) $ 0.16 Diluted earnings (loss) per share $ (0.42 ) $ (0.05 ) $ (0.39 ) $ 0.15 Weighted-average shares of Class A common stock outstanding - basic 92,761 68,010 93,278 67,045 Weighted-average shares of Class A common stock outstanding - diluted 92,761 68,010 93,278 70,393 Net income (loss) $ (55,981 ) $ (5,141 ) $ (57,877 ) $ 19,757 Other comprehensive income 3,343 — 6,635 — Comprehensive income (loss) (52,638 ) (5,141 ) (51,242 ) 19,757 Less: comprehensive income (loss) attributable to noncontrolling interests (15,932 ) (1,977 ) (19,123 ) 8,982 Comprehensive income (loss) attributable to Baldwin $ (36,706 ) $ (3,164 ) $ (32,119 ) $ 10,775 THE BALDWIN INSURANCE GROUP, INC. Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except share and per share data) June 30, 2026 December 31, 2025 Assets Current assets: Cash and cash equivalents $ 184,499 $ 123,669 Fiduciary cash 426,189 223,228 Assumed premiums, commissions and fees receivable, net 433,617 342,136 Fiduciary receivables 782,194 497,035 Prepaid expenses and other current assets 19,592 13,650 Total current assets 1,846,091 1,199,718 Property and equipment, net 33,377 22,502 Right-of-use assets 81,552 61,976 Other assets 111,257 82,419 Intangible assets, net 1,450,040 978,434 Goodwill 2,652,407 1,517,171 Total assets $ 6,174,724 $ 3,862,220 Liabilities, Mezzanine Equity and Stockholders’ Equity Current liabilities: Fiduciary liabilities $ 1,208,383 $ 720,263 Commissions payable 97,040 50,933 Accrued expenses and other current liabilities 294,241 252,560 Current portion of contingent earnout liabilities 120,901 9,004 Total current liabilities 1,720,565 1,032,760 Revolving line of credit 302,000 107,000 Long-term debt, less current portion 2,150,725 1,566,122 Contingent earnout liabilities, less current portion 225,923 14,289 Operating lease liabilities, less current portion 75,128 57,651 Tax Receivable Agreement liabilities 144,570 — Deferred tax liabilities 4,650 — Other liabilities 129,376 — Total liabilities 4,752,937 2,777,822 Commitments and contingencies Mezzanine equity: Redeemable noncontrolling interest 614 519 Stockholders’ equity: Class A common stock, par value $0.01 per share, 300,000,000 shares authorized; 96,368,518 and 71,779,608 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively 964 718 Class B common stock, par value $0.0001 per share, 100,000,000 shares authorized; 43,059,762 and 46,703,818 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively 4 5 Additional paid-in capital 1,246,901 844,236 Accumulated deficit (368,468 ) (245,236 ) Accumulated other comprehensive income 5,027 492 Total stockholders’ equity attributable to Baldwin 884,428 600,215 Noncontrolling interest 536,745 483,664 Total stockholders’ equity 1,421,173 1,083,879 Total liabilities, mezzanine equity and stockholders’ equity $ 6,174,724 $ 3,862,220 THE BALDWIN INSURANCE GROUP, INC. Condensed Consolidated Statements of Cash Flows (Unaudited) For the Six Months Ended June 30, (in thousands) 2026 2025 Cash flows from operating activities: Net income (loss) $ (57,877 ) $ 19,757 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 115,878 55,117 Change in fair value of contingent consideration 14,272 6,104 Share-based compensation expense 33,519 29,755 Deferred taxes (14,873 ) — Payment of contingent earnout consideration in excess of purchase price accrual (6,739 ) (85,090 ) Gain on divestitures — (290 ) Amortization of deferred financing costs 8,633 2,843 Other operating activity (2,602 ) 766 Changes in operating assets and liabilities: Assumed premiums, commissions and fees receivable, net (46,138 ) (53,896 ) Prepaid expenses and other current assets (6,866 ) (4,916 ) Right-of-use assets 13,531 7,950 Accounts payable, accrued expenses and other current liabilities (3,731 ) (19,727 ) Colleague earnout incentives — (31,824 ) Operating lease liabilities (7,521 ) (7,253 ) Net cash provided by (used in) operating activities 39,486 (80,704 ) Cash flows from investing activities: Cash consideration paid for business combinations, net of cash received (447,503 ) (11,699 ) Capital expenditures (27,848 ) (20,310 ) Deferred payments for business combinations (25,000 ) — Cash consideration paid for asset acquisitions (12,052 ) (460 ) Investments in and loans for business ventures (8,465 ) (15,633 ) Proceeds from divestitures, net of cash transferred — 1,901 Net cash used in investing activities (520,868 ) (46,201 ) Cash flows from financing activities: Change in fiduciary receivables and liabilities, net 98,968 55,283 Repurchase of common stock (126,833 ) — Proceeds from revolving line of credit 371,000 121,000 Payments on revolving line of credit (176,000 ) (9,000 ) Proceeds from refinancing of long-term debt 600,000 935,800 Payments relating to extinguishment and modification of long-term debt — (835,800 ) Payments on long-term debt (10,561 ) (4,679 ) Payments of deferred financing costs (4,040 ) — Payment of contingent earnout consideration up to amount of purchase price accrual — (64,256 ) Other financing activity (7,361 ) (510 ) Net cash provided by financing activities 745,173 197,838 Net increase in cash and cash equivalents and fiduciary cash 263,791 70,933 Cash and cash equivalents and fiduciary cash at beginning of period 346,897 312,769 Cash and cash equivalents and fiduciary cash at end of period $ 610,688 $ 383,702 NON-GAAP FINANCIAL MEASURES Adjusted EBITDA, adjusted EBITDA margin, organic revenue, organic revenue growth, adjusted net income, adjusted diluted earnings per share (“EPS”), and adjusted net cash provided by operating activities (“adjusted free cash flow”) are not measures of financial performance under GAAP and should not be considered substitutes for GAAP measures, including commissions and fees (for organic revenue and organic revenue growth), net income (loss) (for adjusted EBITDA and adjusted EBITDA margin), net income (loss) attributable to Baldwin (for adjusted net income), diluted earnings (loss) per share (for adjusted diluted EPS) or net cash provided by (used in) operating activities (for adjusted free cash flow), which we consider to be the most directly comparable GAAP measures. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, you should not consider these non-GAAP financial measures in isolation or as substitutes for commissions and fees, net income (loss), net income (loss) attributable to Baldwin, diluted earnings (loss) per share, net cash provided by (used in) operating activities or other consolidated income statement data prepared in accordance with GAAP. Other companies in our industry may define or calculate these non-GAAP financial measures differently than we do, and accordingly, these measures may not be comparable to similarly titled measures used by other companies. We define adjusted EBITDA as net income (loss) before interest, taxes, depreciation, amortization, change in fair value of contingent consideration and certain items of income and expense, including share-based compensation expense, transaction-related partnership and integration expenses, transformation costs, severance, and certain non-recurring items, including those related to raising capital. We believe that adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of income and expenses that do not relate to business performance, and that the presentation of this measure enhances an investor’s understanding of our financial performance. Adjusted EBITDA margin is adjusted EBITDA divided by total revenues. Adjusted EBITDA margin is a key metric used by management and our board of directors to assess our financial performance. We believe that adjusted EBITDA margin is an appropriate measure of operating performance because it eliminates the impact of income and expenses that do not relate to business performance, and that the presentation of this measure enhances an investor’s understanding of our financial performance. We believe that adjusted EBITDA margin is helpful in measuring profitability of operations on a consolidated level. Adjusted EBITDA and adjusted EBITDA margin have important limitations as analytical tools. For example, adjusted EBITDA and adjusted EBITDA margin: do not reflect any cash capital expenditure requirements for the assets being depreciated and amortized that may have to be replaced in the future; do not reflect changes in, or cash requirements for, our working capital needs; do not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations; do not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our debt; do not reflect share-based compensation expense and other non-cash charges; and exclude certain tax payments that may represent a reduction in cash available to us. We calculate organic revenue based on commissions and fees for the relevant period by excluding (i) the first 12 months of commissions and fees generated from new partners and (ii) commissions and fees from divestitures. Organic revenue growth is the change in organic revenue period-to-period, with prior period results adjusted to (i) include commissions and fees that were excluded from organic revenue in the prior period because the relevant partners had not yet reached the 12-month owned mark, but which have reached the 12-month owned mark in the current period, and (ii) exclude commissions and fees related to divestitures from organic revenue. For example, commissions and fees from a partner acquired on June 1, 2025 are excluded from organic revenue for 2025. However, after June 1, 2026, results from June 1, 2025 to December 31, 2025 for such partners are compared to results from June 1, 2026 to December 31, 2026 for purposes of calculating organic revenue growth in 2026. Organic revenue growth is a key metric used by management and our board of directors to assess our financial performance. We believe that organic revenue and organic revenue growth are appropriate measures of operating performance as they allow investors to measure, analyze and compare growth in a meaningful and consistent manner. We define adjusted net income as net income (loss) attributable to Baldwin adjusted for depreciation, amortization, change in fair value of contingent consideration and certain items of income and expense, including share-based compensation expense, transaction-related partnership and integration expenses, transformation costs, severance, and certain non-recurring costs that, in the opinion of management, significantly affect the period-over-period assessment of operating results, and the related tax effect of those adjustments. We believe that adjusted net income is an appropriate measure of operating performance because it eliminates the impact of income and expenses that do not relate to business performance. Adjusted diluted EPS measures our per share earnings excluding certain expenses as discussed above for adjusted net income and assuming all shares of Class B common stock were exchanged for Class A common stock on a one-for-one basis. Adjusted diluted EPS is calculated as adjusted net income divided by adjusted diluted weighted-average shares outstanding. We believe adjusted diluted EPS is useful to investors because it enables them to better evaluate per share operating performance across reporting periods. We calculate adjusted free cash flow because we incur substantial earnout liabilities in conjunction with our partnership strategy. Adjusted free cash flow is calculated as net cash provided by (used in) operating activities excluding the impact of: (i) the payment of contingent earnout consideration in excess of purchase price accrual, and (ii) the payment of colleague earnout incentives. We believe that adjusted free cash flow is an important measure of our ability to generate cash from our business operations. Reconciliation of guidance regarding adjusted EBITDA, organic revenue growth and adjusted diluted EPS to the most directly comparable GAAP measures is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity, and low visibility with respect to commissions and fees, net income (loss), diluted earnings (loss) per share or other consolidated income statement data prepared in accordance with GAAP. The Company is currently unable to predict with a reasonable degree of certainty the type and extent of items that would be expected to impact these GAAP financial measures for these periods. The unavailable information could have a significant impact on the non-GAAP measures. Adjusted EBITDA and Adjusted EBITDA Margin The following table reconciles adjusted EBITDA and adjusted EBITDA margin to net income (loss), which we consider to be the most directly comparable GAAP financial measure: For the Three Months Ended June 30, For the Six Months Ended June 30, (in thousands, except percentages) 2026 2025 2026 2025 Revenues $ 492,939 $ 378,811 $ 1,025,174 $ 792,216 Net income (loss) $ (55,981 ) $ (5,141 ) $ (57,877 ) $ 19,757 Adjustments to net income (loss): Amortization expense 56,027 26,010 111,074 51,892 Interest expense, net(1) 46,140 31,320 85,347 61,296 Share-based compensation 20,701 16,952 33,519 29,755 Transaction-related partnership and integration expenses 14,695 3,985 22,868 5,518 Transaction closing costs — — 17,668 — Change in fair value of contingent consideration 12,303 (1,957 ) 14,272 6,104 Income and other taxes(2) 1,084 1,348 (13,064 ) 2,819 Transformation costs(3) 6,441 227 9,500 772 Loss on extinguishment and modification of debt 129 — 7,538 2,394 Severance 3,874 1,618 5,689 2,825 Depreciation expense 2,773 1,642 4,804 3,225 Colleague earnout incentives — 1,490 — (1,779 ) Impairment of right-of-use assets — 1,188 — 1,188 Loss (gain) on divestitures — 1,111 — (290 ) Other(4) 8,554 5,719 12,650 13,831 Adjusted EBITDA $ 116,740 $ 85,512 $ 253,988 $ 199,307 Net income (loss) margin (11 )% (1 )% (6 )% 2 % Adjusted EBITDA margin 23.7 % 22.6 % 24.8 % 25.2 % ____________________ (1) Interest expense, net does not include interest income on surplus notes. (2) Income and other taxes include income tax expense/benefit, Tax Receivable Agreement expense and other operating tax expense, such as state taxes, under GAAP. (3) Transformation costs represent certain non-recurring colleague compensation and technology-related expenses related to our $3B/30 Catalyst Program, which is designed to accelerate the infusion of automation, business process optimization and artificial intelligence to transform and elevate our workforce and unlock new avenues for growth. (4) Other addbacks to adjusted EBITDA include certain income and expenses that are considered to be non-recurring or non-operational, including certain recruiting costs, professional fees, litigation costs and bonuses. Organic Revenue and Organic Revenue Growth The following table reconciles organic revenue and organic revenue growth to commissions and fees, which we consider to be the most directly comparable GAAP financial measure: For the Three Months Ended June 30, For the Six Months Ended June 30, (in thousands, except percentages) 2026 2025 2026 2025 Commissions and fees $ 488,789 $ 376,249 $ 1,017,650 $ 786,780 Partnership commissions and fees(1) (106,755 ) (1,980 ) (218,240 ) (1,980 ) Organic revenue $ 382,034 $ 374,269 $ 799,410 $ 784,800 Organic revenue growth(2) $ 5,697 $ 37,973 $ 12,630 $ 76,192 Organic revenue growth %(2) 2 % 11 % 2 % 11 % ____________________ (1) Includes the first 12 months of such commissions and fees generated from newly acquired partners. (2) Organic revenue for the three and six months ended June 30, 2025 used to calculate organic revenue growth for the three and six months ended June 30, 2026 was $376.3 million and $786.8 million, respectively, which is adjusted to exclude commissions and fees from divestitures that occurred during 2025. Adjusted Net Income and Adjusted Diluted EPS The following table reconciles adjusted net income to net income attributable to Baldwin and reconciles adjusted diluted EPS to diluted earnings (loss) per share, which we consider to be the most directly comparable GAAP financial measures: For the Three Months Ended June 30, For the Six Months Ended June 30, (in thousands, except per share data) 2026 2025 2026 2025 Net income (loss) attributable to Baldwin $ (38,995 ) $ (3,164 ) $ (36,654 ) $ 10,775 Net income (loss) attributable to noncontrolling interests (16,986 ) (1,977 ) (21,223 ) 8,982 Amortization expense 56,027 26,010 111,074 51,892 Share-based compensation 20,701 16,952 33,519 29,755 Transaction-related partnership and integration expenses 14,695 3,985 22,868 5,518 Transaction closing costs — — 17,668 — Change in fair value of contingent consideration 12,303 (1,957 ) 14,272 6,104 Income tax expense(1) 84 685 (14,110 ) 1,885 Transformation costs(2) 6,441 227 9,500 772 Loss on extinguishment and modification of debt 129 — 7,538 2,394 Other amortization/accretion, net 6,406 1,421 7,509 2,843 Severance 3,874 1,618 5,689 2,825 Depreciation 2,773 1,642 4,804 3,225 Colleague earnout incentives — 1,490 — (1,779 ) Impairment of right-of-use assets — 1,188 — 1,188 Loss (gain) on divestitures — 1,111 — (290 ) Other(3) 8,554 5,719 12,650 13,831 Adjusted pre-tax income 76,006 54,950 175,104 139,920 Adjusted income taxes(4) 7,524 5,440 17,335 13,852 Adjusted net income $ 68,482 $ 49,510 $ 157,769 $ 126,068 Weighted-average shares of Class A common stock outstanding - diluted 92,761 68,010 93,278 70,393 Dilutive weighted-average shares of Class A common stock 4,189 3,436 3,614 — Exchange of Class B common stock(5) 44,373 47,717 45,163 48,377 Adjusted diluted weighted-average shares outstanding 141,323 119,163 142,055 118,770 Diluted earnings (loss) per share $ (0.42 ) $ (0.05 ) $ (0.39 ) $ 0.15 Effect of exchange of Class B common stock and net income (loss) attributable to noncontrolling interests per share 0.02 0.01 (0.02 ) 0.02 Other adjustments to earnings (loss) per share 0.93 0.51 1.64 1.01 Adjusted income taxes per share (0.05 ) (0.05 ) (0.12 ) (0.12 ) Adjusted diluted EPS $ 0.48 $ 0.42 $ 1.11 $ 1.06 ___________ (1) Income tax expense includes income tax expense/benefit and Tax Receivable Agreement expense. (2) Transformation costs represent certain non-recurring colleague compensation and technology-related expenses related to our $3B/30 Catalyst Program, which is designed to accelerate the infusion of automation, business process optimization and artificial intelligence to transform and elevate our workforce and unlock new avenues for growth. (3) Other addbacks to adjusted net income include certain income and expenses that are considered to be non-recurring or non-operational, including certain recruiting costs, professional fees, litigation costs and bonuses. (4) Represents corporate income taxes at an assumed effective tax rate of 9.9% applied to adjusted pre-tax income. (5) Assumes the full exchange of Class B common stock for Class A common stock pursuant to the Amended LLC Agreement. Adjusted Net Cash Provided by Operating Activities (“Adjusted Free Cash Flow”) The following table reconciles adjusted free cash flow to net cash provided by (used in) operating activities, which we consider to be the most directly comparable GAAP financial measure: For the Three Months Ended June 30, For the Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Net cash provided by (used in) operating activities $ 45,559 $ (16,721 ) $ 39,486 $ (80,704 ) Adjustments to net cash provided by (used in) operating activities: Payment of contingent earnout consideration in excess of purchase price accrual 863 6,897 6,739 85,090 Payment of colleague earnout incentives — 18,462 — 30,061 Adjusted free cash flow $ 46,422 $ 8,638 $ 46,225 $ 34,447 COMMONLY USED DEFINED TERMS The following terms have the following meanings throughout this press release unless the context indicates or requires otherwise: Amended LLC Agreement Third Amended and Restated Limited Liability Company Agreement of The Baldwin Insurance Group Holdings, LLC (formerly Baldwin Risk Partners, LLC), as amended clients Our insureds colleagues Our employees GAAP Accounting principles generally accepted in the United States of America insurance company partners Insurance companies with which we have a contractual relationship partners Companies that we have acquired, or in the case of asset acquisitions, the producers partnerships Strategic acquisitions made by the Company SEC U.S. Securities and Exchange Commission View source version on businesswire.com: https://www.businesswire.com/news/home/20260730967948/en/ MEDIA RELATIONS Anna Rozenich, Senior Director, Enterprise Communications The Baldwin Group 630.561.5907 | anna.rozenich@baldwin.com INVESTOR RELATIONS Bonnie Bishop, Executive Director, Investor Relations The Baldwin Group 813.259.8032 | IR@baldwin.com Source: The Baldwin Group