8-K
RYAN SPECIALTY HOLDINGS, INC. (RYAN)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
____________________
FORM 8-K
____________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 1, 2025
____________________
RYAN SPECIALTY HOLDINGS, INC.
(Exact name of Registrant as Specified in Its Charter)
____________________
| Delaware | 001-40645 | 86-2526344 |
|---|---|---|
| (State or Other Jurisdiction<br><br>of Incorporation) | (Commission File Number) | (IRS Employer<br><br>Identification No.) |
| 155 North Wacker Drive, Suite 4000 | ||
| Chicago, Illinois | 60606 | |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s Telephone Number, Including Area Code: 312 784-6001
(Former Name or Former Address, if Changed Since Last Report)
____________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions:
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br><br>Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Class A Common Stock, $0.001 par value | RYAN | The New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act
of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition
period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the
Exchange Act. o
Item 2.02 Results of Operations and Financial Condition.
On May 1, 2025, Ryan Specialty Holdings, Inc. (the “Company”) issued a press release announcing its results of operations
for the first quarter ended March 31, 2025. A copy of the press release is furnished as Exhibit 99.1 hereto and is
incorporated herein by reference.
The information furnished herewith pursuant to Item 2.02 of this Current Report, including Exhibit 99.1, shall not be
deemed to be filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject
to the liabilities of that section. The information in this current report shall not be incorporated by reference into any
registration statement or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly
set forth by specific reference in such filing.
Item 8.01 Other Events.
On May 1, 2025, the Company's board of directors (the "Board") declared a regular quarterly dividend of $0.12 per share
on the outstanding Class A common stock. The regular quarterly dividend will be payable on May 27, 2025, to
stockholders of record as of the close of business on May 13, 2025.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits.
The following exhibits are furnished herewith:
| Exhibit No. | Description of Exhibit |
|---|---|
| 99.1 | Press Release dated May 1, 2025 |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL) |
Cautionary Note Regarding Forward-Looking Statements
This report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of
1995 that involve substantial risks and uncertainties. All statements, other than statements of historical fact included in this
report, are forward-looking statements. Forward-looking statements give our current expectations relating to our financial
condition, results of operations, plans, objectives, future performance, and business. You can identify forward-looking
statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such
as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “can have,” “likely,”
and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating
or financial performance or other events. For example, all statements we make relating to our estimated costs, expenditures,
financial results, any future dividends, our plans, and anticipated cost savings relating to the restructuring plan and the
amount and timing of delivery of annual cost savings are forward-looking statements. All forward-looking statements are
subject to risks and uncertainties that may cause actual results to differ materially from those that we expected, These
forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties,
including, but not limited to, those relating to whether the Company will achieve the associated objectives with its
Program, whether the costs and charges associated with restructuring initiatives will exceed current estimates and forecasts,
its ability to realize expected savings and benefits in the amounts and at the times anticipated, changes in management’s
assumptions, its ability to achieve anticipated financial results, risks associated with acquisitions, divestitures, joint
ventures and strategic investments, outcomes of legal and regulatory matters, and changes in legislation or regulations.
These and other risks, assumptions and uncertainties are described in Item 1A (Risk Factors) of the Company’s most recent
Annual Report on Form 10-K and in other documents that the Company files or furnishes with the Securities and Exchange
Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements.
Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of
the date they are made. Except to the extent required by law, the Company does not undertake, and expressly disclaims,
any duty or obligation to update publicly any forward-looking statement after the date of this report, whether as a result of
new information, future events, changes in assumptions or otherwise.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
| RYAN SPECIALTY HOLDINGS, INC. (Registrant) | |||
|---|---|---|---|
| Date: | April 30, 2025 | By: | /s/ Janice M. Hamilton |
| Janice M. Hamilton<br><br>Executive Vice President and Chief Financial Officer |
RYAN-2025.03.31-EX 99.1 1
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 -
May 1, 2025 | CHICAGO, IL — Ryan Specialty Holdings, Inc. (NYSE: 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.”
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Summary of First Quarter 2025 Results
| Three Months Ended<br><br>March 31, | |||
|---|---|---|---|
| (in thousands, except percentages and per share data) | 2025 | 2024 | % |
| GAAP financial measures | |||
| Total revenue | $690,166 | 552,046 | 25.0% |
| Net commissions and fees | 676,128 | 537,887 | 25.7 |
| Compensation and benefits | 430,289 | 373,527 | 15.2 |
| General and administrative | 106,060 | 75,867 | 39.8 |
| Total operating expenses | 589,931 | 479,397 | 23.1 |
| Operating income | 100,235 | 72,649 | 38.0 |
| Net income (loss) | (4,389) | 40,677 | NM |
| Net income (loss) attributable to Ryan Specialty Holdings, Inc. | (27,642) | 16,535 | 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 | 20.4% |
| Adjusted compensation and benefits expense ratio | 57.6% | 59.8% | |
| Adjusted general and administrative expense | $92,237 | 64,802 | 42.3% |
| Adjusted general and administrative expense ratio | 13.4% | 11.7% | |
| Adjusted EBITDAC | $200,501 | 157,222 | 27.5% |
| Adjusted EBITDAC margin | 29.1% | 28.5% | |
| Adjusted net income | $107,839 | 95,417 | 13.0% |
| Adjusted net income margin | 15.6% | 17.3% | |
| Adjusted diluted earnings per share | $0.39 | 0.35 | 11.4% |
All values are in US Dollars.
* 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.
NMNot 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.
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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.
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First Quarter 2025 Net Commissions and Fees by Specialty and Revenue by Type
Growth in Net commissions and fees in all specialties was primarily driven by solid organic growth.
| Three Months Ended March 31, | ||||
|---|---|---|---|---|
| (in thousands, except percentages) | 2025 | 2024 | Change | |
| Wholesale Brokerage | 360,788 | 323,445 | $37,343 | 11.5% |
| Binding Authorities | 101,950 | 88,635 | 13,315 | 15.0 |
| Underwriting Management | 213,390 | 125,807 | 87,583 | 69.6 |
| Total net commissions and fees | 676,128 | 537,887 | $138,241 | 25.7% |
All values are in US Dollars.
The following tables sets forth our revenue by type of commission and fees:
| Three Months Ended March 31, | ||||
|---|---|---|---|---|
| (in thousands, except percentages) | 2025 | 2024 | Change | |
| Net commissions and policy fees | 623,966 | 494,445 | $129,521 | 26.2% |
| Supplemental and contingent<br><br>commissions | 37,773 | 29,256 | 8,517 | 29.1 |
| Loss mitigation and other fees | 14,389 | 14,186 | 203 | 1.4 |
| Total net commissions and fees | 676,128 | 537,887 | $138,241 | 25.7% |
All values are in US Dollars.
Liquidity and Financial Condition
As of March 31, 2025, the Company had Cash and cash equivalents of $203.5 million and outstanding debt
principal of $3.7 billion.
Quarterly Dividend
On May 1, 2025, the Company's board of directors declared a regular quarterly dividend of $0.12 per share on
the outstanding Class A common stock. The regular quarterly dividend will be payable on May 27, 2025 to
stockholders of record as of the close of business on May 13, 2025. A portion of the dividend, $0.05 per share,
will be funded by free cash flow from Ryan Specialty, LLC and will be paid to all holders of the Company's Class
A common stock and the holders of the LLC Common Units (as defined below).
Full Year 2025 Outlook*
The Company is maintaining its full year 2025 outlook for Organic Revenue Growth Rate and Adjusted EBITDAC
Margin as follows:
•Organic Revenue Growth Rate guidance for full year 2025 is between 11.0% – 13.0%
•Adjusted EBITDAC Margin guidance for full year 2025 is between 32.5% – 33.5%
The Company is unable to provide a comparable outlook for, or a reconciliation to, Total revenue growth rate
or Net income margin because it cannot provide a meaningful or accurate calculation or estimation of certain
reconciling items without unreasonable effort. Its inability to do so is due to the inherent difficulty in
forecasting the timing of items that have not yet occurred and quantifying certain amounts that are necessary
for such reconciliation, including variations in effective tax rate, expenses to be incurred for acquisition
activities, and other one-time or exceptional items.
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*For a definition of Organic revenue growth rate and Adjusted EBITDAC margin, see “Non-GAAP Financial Measures and
Key Performance Indicators” below.
Conference Call Information
Ryan Specialty will hold a conference call to discuss the financial results at 4:45pm Eastern Time on May 1,
- Interested parties may access the conference call through the live webcast, which can be accessed at
https://ryan-specialty-q1-2025-earnings-call.open-exchange.net/welcome or by visiting the Company’s
Investor Relations website. Please join the live webcast at least 10 minutes prior to the scheduled start time.
A webcast replay of the call will be available on the Company’s website at ryanspecialty.com in its Investors
section for one year following the call.
About Ryan Specialty
Founded in 2010, Ryan Specialty (NYSE: RYAN) is a service provider of specialty products and solutions for
insurance brokers, agents, and carriers. Ryan Specialty provides distribution, underwriting, product
development, administration, and risk management services by acting as a wholesale broker and a managing
underwriter with delegated authority from insurance carriers. Our mission is to provide industry-leading
innovative specialty insurance solutions for insurance brokers, agents, and carriers. Learn more at
ryanspecialty.com.
Forward-Looking Statements
All statements in this release and in the corresponding earnings call that are not historical are “forward-
looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve
substantial risks and uncertainties. For example, all statements the Company makes relating to its estimated
and projected costs, expenditures, cash flows, growth rates and financial results, its plans, anticipated amount
and timing of cost savings relating to the restructuring plan, or its plans and objectives for future operations,
growth initiatives, or strategies and the statements under the caption “Full Year 2025 Outlook” are forward-
looking statements. Words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,”
“may,” “will,” “should,” “can have,” “likely” and variations of such words and similar expressions are intended
to identify such forward-looking statements. All forward-looking statements are subject to risks and
uncertainties, known and unknown, that may cause actual results to differ materially from those that the
Company expected. Specific factors that could cause such a difference include, but are not limited to, those
disclosed previously in the Company’s filings with the Securities and Exchange Commission (“SEC”).
For more detail on the risk factors that may affect the Company’s results, see the section entitled ‘‘Risk
Factors’’ in our most recent annual report on Form 10-K filed with the SEC, and in other documents filed with,
or furnished to, the SEC. Should one or more of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such
forward-looking statements. Given these factors, as well as other variables that may affect the Company’s
operating results, you are cautioned not to place undue reliance on these forward-looking statements, not to
assume that past financial performance will be a reliable indicator of future performance, and not to use
historical trends to anticipate results or trends in future periods. The forward-looking statements included in
this press release and on the related earnings call relate only to events as of the date hereof. The Company
does not undertake, and expressly disclaims, any duty or obligation to update publicly any forward-looking
statement after the date of this release, whether as a result of new information, future events, changes in
assumptions, or otherwise.
Non-GAAP Financial Measures and Key Performance Indicators
In assessing the performance of the Company’s business, non-GAAP financial measures are used that are
derived from the Company’s consolidated financial information, but which are not presented in the Company’s
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consolidated financial statements prepared in accordance with GAAP. The Company considers these non-
GAAP financial measures to be useful metrics for management and investors to facilitate operating
performance comparisons from period to period by excluding potential differences caused by variations in
capital structures, tax positions, depreciation, amortization, and certain other items that the Company
believes are not representative of its core business. The Company uses the following non-GAAP measures for
business planning purposes, in measuring performance relative to that of its competitors, to help investors to
understand the nature of the Company's growth, and to enable investors to evaluate the run-rate
performance of the Company. Non-GAAP financial measures should be viewed as supplementing, and not as
an alternative or substitute for, the consolidated financial statements prepared and presented in accordance
with GAAP. The footnotes to the reconciliation tables below should be read in conjunction with the unaudited
consolidated quarterly financial statements in the Company's Quarterly Report on form 10-Q filed with the
SEC. Industry peers may provide similar supplemental information but may not define similarly-named metrics
in the same way and may not make identical adjustments.
Organic revenue growth rate: Organic revenue growth rate represents the percentage change in Net
commissions and fees, as compared to the same period for the prior year, adjusted to eliminate revenue
attributable to acquisitions for the first twelve months of ownership, revenue attributable to sold businesses
for the subsequent twelve months after the sale, and other items such as contingent commissions and the
impact of changes in foreign exchange rates.
Adjusted compensation and benefits expense: Adjusted compensation and benefits expense is defined as
Compensation and benefits expense adjusted to reflect items such as (i) equity-based compensation, (ii)
acquisition and restructuring related compensation expenses, and (iii) other exceptional or non-recurring
compensation expenses, as applicable. The most directly comparable GAAP financial metric is Compensation
and benefits expense.
Adjusted general and administrative expense: Adjusted general and administrative expense is defined as
General and administrative expense adjusted to reflect items such as (i) acquisition and restructuring related
general and administrative expenses, and (ii) other exceptional or non-recurring general and administrative
expenses, as applicable. The most directly comparable GAAP financial metric is General and administrative
expense.
Adjusted compensation and benefits expense ratio: Adjusted compensation and benefits expense ratio is
defined as the Adjusted compensation and benefits expense as a percentage of Total revenue. The most
directly comparable GAAP financial metric is Compensation and benefits expense ratio.
Adjusted general and administrative expense ratio: Adjusted general and administrative expense ratio is
defined as the Adjusted general and administrative expense as a percentage of Total revenue. The most
directly comparable GAAP financial metric is General and administrative expense ratio.
Adjusted EBITDAC: Adjusted EBITDAC is defined as Net income (loss) before Interest expense, net, Income tax
expense, Depreciation, Amortization, and Change in contingent consideration, adjusted to reflect items such
as (i) equity-based compensation, (ii) acquisition-related expenses, and (iii) other exceptional or non-recurring
items, as applicable. Acquisition-related expense includes one-time diligence, transaction-related, and
integration costs. Acquisition-related expense includes a $2.5 million charge for the three months ended
March 31, 2024, related to a deal-contingent foreign exchange forward contract associated with the Castel
acquisition. The remaining charges in both years represent typical one-time diligence, transaction-related, and
integration costs. Acquisition-related long-term incentive compensation arises from changes to long-term
incentive plans associated with acquisitions. Restructuring and related expense consists of compensation and
benefits, occupancy, contractors, professional services, and license fees related to the ACCELERATE 2025
program. The compensation and benefits expense included severance as well as employment costs related to
services rendered between the notification and termination dates and other termination payments.
Amortization and expense is composed of charges related to discontinued prepaid incentive programs. For the
7
three months ended March 31, 2025, Other non-operating loss (income) was composed of $0.3 million income
from seller reimbursement of acquisition-related retention incentives and $0.1 million sublease income. For
the three months ended March 31, 2024, Other non-operating loss (income) included $1.9 million of expense
related to fees associated with our term loan repricing offset by $0.1 million of sublease income. Equity-based
compensation reflects non-cash equity-based expense. Initial Public Offering (the "IPO") related expenses
include compensation-related expense primarily related to the expense for new awards issued at IPO as well
as expense related to the revaluation of existing equity awards at IPO. Total revenue less Adjusted
compensation and benefits expense and Adjusted general and administrative expense is equivalent to
Adjusted EBITDAC. For a breakout of compensation and general and administrative costs for each addback
refer to the Adjusted compensation and benefits expense and Adjusted general and administrative expense
tables below. The most directly comparable GAAP financial metric to Adjusted EBITDAC is Net income (loss).
Adjusted EBITDAC margin: Adjusted EBITDAC margin is defined as Adjusted EBITDAC as a percentage of Total
revenue. The most directly comparable GAAP financial metric is Net income (loss) margin.
Adjusted net income: Adjusted net income is defined as tax-effected earnings before amortization and certain
items of income and expense, gains and losses, equity-based compensation, acquisition related long-term
incentive compensation, acquisition-related expenses, costs associated with our IPO, and certain exceptional
or non-recurring items. The Company will be subject to United States federal income taxes, in addition to
state, local, and foreign taxes, with respect to its allocable share of any net taxable income of Ryan Specialty,
LLC (together with its parent New Ryan Specialty, LLC and their subsidiaries, the “LLC”). For comparability
purposes, this calculation incorporates the impact of federal and state statutory tax rates on 100% of the
Company's adjusted pre-tax income as if the Company owned 100% of Ryan Specialty, LLC. The most directly
comparable GAAP financial metric is Net income (loss).
Adjusted net income margin: Adjusted net income margin is defined as Adjusted net income as a percentage
of Total revenue. The most directly comparable GAAP financial metric is Net income (loss) margin.
Adjusted diluted earnings per share: Adjusted diluted earnings per share is defined as Adjusted net income
divided by diluted shares outstanding after adjusting for the effect if 100% of the outstanding LLC Common
Units (“LLC Common Units”), together with the shares of Class B common stock, vested Class C Incentive Units,
and unvested equity awards were exchanged into shares of Class A common stock as if 100% of unvested
equity awards were vested. The most directly comparable GAAP financial metric is Diluted earnings per share.
Credit Adjusted EBITDAC: Credit Adjusted EBITDAC is defined as Adjusted EBITDAC as further adjusted without
duplication for: acquired EBITDAC from the beginning of the applicable twelve month reference period
through the acquisition close date, certain annualized run rate expected cost savings and initiatives, and
certain other adjustments as permitted in calculating leverage ratios under our debt agreements. The
Company presents Credit Adjusted EBITDAC as an additional measure of liquidity and leverage. The calculation
of Credit Adjusted EBITDAC pursuant to our debt agreements permits certain estimates and assumptions that
may differ from actual results.
The summary unaudited consolidated financial data for the twelve months ended March 31, 2025, presented
was derived by adding the consolidated financial data of the Company for the year ended December 31, 2024,
to the consolidated financial data of the Company for the three months ended March 31, 2025, and
subtracting the consolidated financial data of the Company for the three months ended March 31, 2024. The
summary unaudited consolidated financial data for the twelve months ended March 31, 2025, has been
prepared for illustrative purposes only and is not necessarily representative of our results of operations for
any future period or our financial condition at any future date.
The reconciliation of the above non-GAAP measures to each of their most directly comparable GAAP financial
measure is set forth in the reconciliation table accompanying this release.
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With respect to the Organic revenue growth rate and Adjusted EBITDAC margin outlook presented in the “Full
Year 2025 Outlook” section of this press release, the Company is unable to provide a comparable outlook for,
or a reconciliation to, Total revenue growth rate or Net income (loss) margin because it cannot provide a
meaningful or accurate calculation or estimation of certain reconciling items without unreasonable effort. Its
inability to do so is due to the inherent difficulty in forecasting the timing of items that have not yet occurred
and quantifying certain amounts that are necessary for such reconciliation, including variations in effective tax
rate, expenses to be incurred for acquisition activities, and other one-time or exceptional items.
Contacts:
| Investor Relations<br><br>Nicholas Mezick<br><br>VP, Investor Relations<br><br>Ryan Specialty<br><br>IR@ryanspecialty.com<br><br>Phone: (312) 784-6152 | Media Relations<br><br>Alice Phillips Topping<br><br>SVP, Chief Marketing & Communications Officer<br><br>Ryan Specialty<br><br>Alice.Topping@ryanspecialty.com<br><br>Phone: (312) 635-5976 |
|---|
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Consolidated Statements of Income (Unaudited)
| Three Months Ended<br><br>March 31, 2025 | ||
|---|---|---|
| (in thousands, except percentages and per share data) | 2025 | 2024 |
| Revenue | ||
| Net commissions and fees | $676,128 | $537,887 |
| Fiduciary investment income | 14,038 | 14,159 |
| Total revenue | $690,166 | $552,046 |
| Expenses | ||
| Compensation and benefits | 430,289 | 373,527 |
| General and administrative | 106,060 | 75,867 |
| Amortization | 64,985 | 27,988 |
| Depreciation | 2,639 | 2,080 |
| Change in contingent consideration | (14,042) | (65) |
| Total operating expenses | $589,931 | $479,397 |
| Operating income | $100,235 | $72,649 |
| Interest expense, net | 54,508 | 29,400 |
| (Income) from equity method investment in related party | (4,937) | (5,606) |
| Other non-operating loss (income) | (377) | 1,752 |
| Income before income taxes | $51,041 | $47,103 |
| Income tax expense | 55,430 | 6,426 |
| Net income (loss) | $(4,389) | $40,677 |
| GAAP financial measures | ||
| Total revenue | $690,166 | $552,046 |
| Net commissions and fees | 676,128 | 537,887 |
| Compensation and benefits | 430,289 | 373,527 |
| General and administrative | 106,060 | 75,867 |
| Net income (loss) | (4,389) | 40,677 |
| 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 (Unaudited)
| Three Months Ended<br><br>March 31, 2025 | ||
|---|---|---|
| (in thousands, except percentages and per share data) | 2025 | 2024 |
| Non-GAAP financial measures* | ||
| Organic revenue growth rate | 12.9 % | 13.7 % |
| Adjusted compensation and benefits expense | $397,428 | $330,022 |
| Adjusted compensation and benefits expense ratio | 57.6 % | 59.8 % |
| Adjusted general and administrative expense | $92,237 | $64,802 |
| Adjusted general and administrative expense ratio | 13.4 % | 11.7 % |
| Adjusted EBITDAC | $200,501 | $157,222 |
| Adjusted EBITDAC margin | 29.1 % | 28.5 % |
| Adjusted net income | $107,839 | $95,417 |
| Adjusted net income margin | 15.6 % | 17.3 % |
| Adjusted diluted earnings per share | $0.39 | $0.35 |
10
Consolidated Balance Sheets (Unaudited)
| (in thousands, except share and per share data) | March 31,<br><br>2025 | December 31,<br><br>2024 |
|---|---|---|
| ASSETS | ||
| CURRENT ASSETS | ||
| Cash and cash equivalents | $203,549 | $540,203 |
| Commissions and fees receivable – net | 432,476 | 389,758 |
| Fiduciary cash and receivables | 3,888,694 | 3,739,727 |
| Prepaid incentives – net | 9,248 | 9,219 |
| Other current assets | 75,143 | 109,951 |
| Total current assets | $4,609,110 | $4,788,858 |
| NON-CURRENT ASSETS | ||
| Goodwill | 3,024,348 | 2,646,676 |
| Customer relationships | 1,554,690 | 1,392,048 |
| Other intangible assets | 97,993 | 83,674 |
| Prepaid incentives – net | 15,824 | 17,442 |
| Equity method investment in related party | 72,443 | 70,877 |
| Property and equipment – net | 60,396 | 50,209 |
| Lease right-of-use assets | 131,585 | 133,256 |
| Deferred tax assets | 308,862 | 448,289 |
| Other non-current assets | 14,788 | 18,589 |
| Total non-current assets | $5,280,929 | $4,861,060 |
| TOTAL ASSETS | $9,890,039 | $9,649,918 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| CURRENT LIABILITIES | ||
| Accounts payable and accrued liabilities | $197,177 | $249,200 |
| Accrued compensation | 229,821 | 486,322 |
| Operating lease liabilities | 22,297 | 22,107 |
| Tax Receivable Agreement liabilities | 24,411 | — |
| Short-term debt and current portion of long-term debt | 36,208 | 51,732 |
| Fiduciary liabilities | 3,888,694 | 3,739,727 |
| Total current liabilities | $4,398,608 | $4,549,088 |
| NON-CURRENT LIABILITIES | ||
| Accrued compensation | 57,558 | 49,362 |
| Operating lease liabilities | 155,735 | 159,231 |
| Long-term debt | 3,652,783 | 3,231,128 |
| Tax Receivable Agreement liabilities | 422,975 | 436,296 |
| Deferred tax liabilities | 38,943 | 39,922 |
| Other non-current liabilities | 106,124 | 86,606 |
| Total non-current liabilities | $4,434,118 | $4,002,545 |
| TOTAL LIABILITIES | $8,832,726 | $8,551,633 |
| STOCKHOLDERS’ EQUITY | ||
| Class A common stock ($0.001 par value; 1,000,000,000 shares authorized,<br><br>126,032,889 and 125,411,089 shares issued and outstanding at March 31, 2025 and<br><br>December 31, 2024, respectively) | 126 | 125 |
| Class B common stock ($0.001 par value; 1,000,000,000 shares authorized,<br><br>135,957,649 and 135,456,313 shares issued and outstanding at March 31, 2025 and<br><br>December 31, 2024, respectively) | 136 | 136 |
| Class X common stock ($0.001 par value; 10,000,000 shares authorized, 640,784<br><br>shares issued and 0 outstanding at March 31, 2025 and December 31, 2024) | — | — |
| Preferred stock ($0.001 par value; 500,000,000 shares authorized, 0 shares issued<br><br>and outstanding at March 31, 2025 and December 31, 2024) | — | — |
| Additional paid-in capital | 458,446 | 506,258 |
| Retained earnings | 79,338 | 122,939 |
| Accumulated other comprehensive income (loss) | 4,472 | (1,796) |
| Total stockholders’ equity attributable to Ryan Specialty Holdings, Inc. | $542,518 | $627,662 |
| Non-controlling interests | 514,795 | 470,623 |
| Total stockholders’ equity | $1,057,313 | $1,098,285 |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $9,890,039 | $9,649,918 |
11
Consolidated Statements of Cash Flows (Unaudited)
| Three Months Ended<br><br>March 31, | ||
|---|---|---|
| (in thousands) | 2025 | 2024 |
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Net income (loss) | $(4,389) | $40,677 |
| Adjustments to reconcile net income (loss) to cash flows provided by operating<br><br>activities: | ||
| Income from equity method investment in related party | (4,937) | (5,606) |
| Amortization | 64,985 | 27,988 |
| Depreciation | 2,639 | 2,080 |
| Prepaid and deferred compensation expense | 10,799 | 918 |
| Non-cash equity-based compensation | 19,873 | 17,310 |
| Amortization of deferred debt issuance costs | 2,374 | 3,409 |
| Amortization of interest rate cap premium | 1,739 | 1,739 |
| Deferred income tax expense | 2,720 | 2,139 |
| Deferred income tax expense from common control reorganization | 48,115 | — |
| Changes in operating assets and liabilities, net of acquisitions: | ||
| Commissions and fees receivable – net | (17,088) | (4,751) |
| Accrued interest liability | (11,801) | 5,958 |
| Other current and non-current assets | 41,130 | 2,061 |
| Other current and non-current accrued liabilities | (298,984) | (210,461) |
| Total cash flows used in operating activities | $(142,825) | $(116,539) |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Business combinations – net of cash acquired and cash held in a fiduciary capacity | (555,641) | — |
| Capital expenditures | (16,730) | (7,628) |
| Asset acquisitions | (664) | — |
| Total cash flows used in investing activities | $(573,035) | $(7,628) |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Borrowings on Revolving Credit Facility | 574,056 | — |
| Repayments on Revolving Credit Facility | (150,000) | — |
| Debt issuance costs paid | (1,548) | — |
| Repayment of term debt | (4,250) | — |
| Receipt of contingently returnable consideration | 1,927 | — |
| Payment of contingent consideration | (25,150) | — |
| Receipt of taxes related to net share settlement of equity awards | 1,569 | 130 |
| Taxes paid related to net share settlement of equity awards | (1,700) | (130) |
| Class A common stock dividends and Dividend Equivalents paid | (15,074) | (40,021) |
| Distributions and Declared Distributions paid to non-controlling LLC Unitholders | (6,796) | (5,617) |
| Payment of accrued return on Ryan Re preferred units | (85) | (1,883) |
| Net change in fiduciary liabilities | (36,109) | 37,326 |
| Total cash flows provided by (used in) financing activities | $336,840 | $(10,195) |
| Effect of changes in foreign exchange rates on cash, cash equivalents, and cash and<br><br>cash equivalents held in a fiduciary capacity | 10,081 | (657) |
| NET CHANGE IN CASH, CASH EQUIVALENTS, AND CASH AND CASH EQUIVALENTS HELD<br><br>IN A FIDUCIARY CAPACITY | $(368,939) | $(135,019) |
| CASH, CASH EQUIVALENTS, AND CASH AND CASH EQUIVALENTS HELD IN A FIDUCIARY<br><br>CAPACITY—Beginning balance | 1,680,805 | 1,756,332 |
| CASH, CASH EQUIVALENTS, AND CASH AND CASH EQUIVALENTS HELD IN A FIDUCIARY<br><br>CAPACITY—Ending balance | $1,311,866 | $1,621,313 |
| Reconciliation of cash, cash equivalents, and cash and cash equivalents held in a<br><br>fiduciary capacity | ||
| Cash and cash equivalents | $203,549 | $665,420 |
| Cash and cash equivalents held in a fiduciary capacity | 1,108,317 | 955,893 |
| Total cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity | $1,311,866 | $1,621,313 |
12
Reconciliation of Organic Revenue Growth Rate
| Three Months Ended<br><br>March 31, | ||
|---|---|---|
| (in thousands, except percentages) | 2025 | 2024 |
| Current period Net commissions and fees revenue | $676,128 | $537,887 |
| Less: Current period contingent commissions | (30,463) | (24,503) |
| Less: Revenue attributable to sold businesses | (146) | — |
| Net Commissions and fees revenue<br><br>excluding contingent commissions | $645,519 | $513,385 |
| Prior period Net commissions and fees revenue | $537,887 | $447,513 |
| Less: Prior year contingent commissions | (24,503) | (21,635) |
| Less: Revenue attributable to sold businesses | (539) | — |
| Prior period Net commissions and fees revenue<br><br>excluding contingent commissions | $512,845 | $425,878 |
| Change in Net commissions and fees revenue excluding contingent commissions | $132,674 | $87,507 |
| Less: Mergers and acquisitions Net commissions and fees revenue excluding contingent<br><br>commissions | (67,155) | (28,539) |
| Impact of change in foreign exchange rates | 430 | (323) |
| Organic revenue growth (Non-GAAP) | $65,949 | $58,644 |
| Net commissions and fees revenue growth rate (GAAP) | 25.7% | 20.2% |
| Less: Impact of contingent commissions (1) | 0.2 | 0.3 |
| Net commissions and fees revenue<br><br>excluding contingent commissions growth rate (2) | 25.9% | 20.5% |
| Less: Mergers and acquisitions Net commissions and fees revenue excluding contingent<br><br>commissions (3) | (13.1) | (6.7) |
| Impact of change in foreign exchange rates (4) | 0.1 | (0.1) |
| Organic Revenue Growth Rate (Non-GAAP) | 12.9% | 13.7% |
(1)Calculated by subtracting Net commissions and fees revenue growth rate from net commissions and fees revenue
excluding contingent commissions growth rate and revenue from sold businesses.
(2)Calculated by dividing the change in Total net commissions & fees revenue excluding contingent commissions by
prior year net commissions and fees excluding contingent commissions and revenue from sold businesses.
(3)Calculated by taking the mergers and acquisitions net commissions and fees revenue excluding contingent
commissions, representing the first 12 months of net commissions and fees revenue generated from acquisitions,
divided by prior period net commissions and fees revenue excluding contingent commissions and revenue from
sold businesses.
(4)Calculated by taking the change in foreign exchange rates divided by prior period net commissions and fees
revenue excluding contingent commissions and revenue from sold businesses.
13
Reconciliation of Adjusted Compensation and Benefits Expense to Compensation and Benefits Expense
| Three Months Ended<br><br>March 31, | ||
|---|---|---|
| (in thousands, except percentages) | 2025 | 2024 |
| Total revenue | $690,166 | $552,046 |
| Compensation and benefits expense | $430,289 | $373,527 |
| Acquisition-related expense | (3,479) | (226) |
| Acquisition related long-term incentive compensation | (8,331) | 1,627 |
| Restructuring and related expense | — | (26,184) |
| Amortization and expense related to discontinued prepaid incentives | (1,178) | (1,412) |
| Equity-based compensation | (14,569) | (9,515) |
| Initial public offering related expense | (5,304) | (7,795) |
| Adjusted compensation and benefits expense (1) | $397,428 | $330,022 |
| Compensation and benefits expense ratio | 62.3% | 67.7% |
| Adjusted compensation and benefits expense ratio | 57.6% | 59.8% |
(1)Adjustments made to Compensation and benefits expense are described in the definition of Adjusted EBITDAC in
“Non-GAAP Financial Measures and Key Performance Indicators.”
Reconciliation of Adjusted General and Administrative Expense to General and Administrative Expense
| Three Months Ended<br><br>March 31, | ||
|---|---|---|
| (in thousands, except percentages) | 2025 | 2024 |
| Total revenue | $690,166 | $552,046 |
| General and administrative expense | $106,060 | $75,867 |
| Acquisition-related expense | (13,823) | (8,211) |
| Restructuring and related expense | — | (2,854) |
| Adjusted general and administrative expense (1) | $92,237 | $64,802 |
| General and administrative expense ratio | 15.4% | 13.7% |
| Adjusted general and administrative expense ratio | 13.4% | 11.7% |
(1)Adjustments made to General and administrative expense are described in the definition of Adjusted EBITDAC in
“Non-GAAP Financial Measures and Key Performance Indicators.”
14
Reconciliation of Adjusted EBITDAC to Net Income (Loss)
| Three Months Ended<br><br>March 31, | ||
|---|---|---|
| (in thousands, except percentages) | 2025 | 2024 |
| Total revenue | $690,166 | $552,046 |
| Net income (loss) | $(4,389) | $40,677 |
| Interest expense, net | 54,508 | 29,400 |
| Income tax expense | 55,430 | 6,426 |
| Depreciation | 2,639 | 2,080 |
| Amortization | 64,985 | 27,988 |
| Change in contingent consideration (1) | (14,042) | (65) |
| EBITDAC | $159,131 | $106,506 |
| Acquisition-related expense | 17,302 | 8,437 |
| Acquisition related long-term incentive compensation | 8,331 | (1,627) |
| Restructuring and related expense | — | 29,038 |
| Amortization and expense related to discontinued prepaid incentives | 1,178 | 1,412 |
| Other non-operating loss (income) | (377) | 1,752 |
| Equity-based compensation | 14,569 | 9,515 |
| IPO related expenses | 5,304 | 7,795 |
| (Income) from equity method investments in related party | (4,937) | (5,606) |
| Adjusted EBITDAC | $200,501 | $157,222 |
| Net income (loss) margin | (0.6)% | 7.4% |
| Adjusted EBITDAC margin | 29.1% | 28.5% |
(1)For the three months ended March 31, 2025, Change in contingent consideration included a $12.4 million decrease
in valuation of the US Assure contingent consideration as a result of increased loss ratios impacting projected profit
commissions.
15
Reconciliation of Adjusted Net Income to Net Income (Loss)
| Three Months Ended<br><br>March 31, | ||
|---|---|---|
| (in thousands, except percentages) | 2025 | 2024 |
| Total revenue | $690,166 | $552,046 |
| Net income (loss) | $(4,389) | $40,677 |
| Income tax expense | 55,430 | 6,426 |
| Amortization | 64,985 | 27,988 |
| Amortization of deferred debt issuance costs (1) | 2,374 | 3,409 |
| Change in contingent consideration | (14,042) | (65) |
| Acquisition-related expense | 17,302 | 8,437 |
| Acquisition related long-term incentive compensation | 8,331 | (1,627) |
| Restructuring and related expense | — | 29,038 |
| Amortization and expense related to discontinued prepaid incentives | 1,178 | 1,412 |
| Other non-operating loss (income) | (377) | 1,752 |
| Equity-based compensation | 14,569 | 9,515 |
| IPO related expenses | 5,304 | 7,795 |
| (Income) from equity method investments in related party | (4,937) | (5,606) |
| Adjusted income before income taxes (2) | $145,728 | $129,151 |
| Adjusted income tax expense (3) | (37,889) | (33,734) |
| Adjusted net income | $107,839 | $95,417 |
| Net income (loss) margin | (0.6)% | 7.4% |
| Adjusted net income margin | 15.6% | 17.3% |
(1)Interest expense, net includes amortization of deferred debt issuance costs.
(2)Adjustments made to Net income (loss) are described in the definition of Adjusted EBITDAC in “Non-GAAP
Financial Measures and Key Performance Indicators.”
(3)The Company is subject to United States federal income taxes, in addition to state, local, and foreign taxes, with
respect to our allocable share of any net taxable income of the LLC. For the three months ended March 31, 2025,
this calculation of adjusted income tax expense is based on a federal statutory rate of 21% and a combined state
income tax rate net of federal benefits of 5.00% on 100% of our adjusted income before income taxes as if the
Company owned 100% of the LLC. For the three months ended March 31, 2024, this calculation of adjusted income
tax expense is based on a federal statutory rate of 21% and a combined state income tax rate net of federal
benefits of 5.12% on 100% of our adjusted income before income taxes as if the Company owned 100% of the LLC.
16
Reconciliation of Adjusted Diluted Earnings per Share to Diluted Earnings per Share
| Three Months Ended<br><br>March 31, | ||
|---|---|---|
| 2025 | 2024 | |
| Earnings (loss) per share of Class A common stock – diluted | $(0.22) | $0.13 |
| Less: Net income attributed to dilutive shares and substantively vested RSUs (1) | — | (0.07) |
| Plus: Impact of all LLC Common Units exchanged for Class A shares (2) | 0.20 | 0.09 |
| Plus: Adjustments to Adjusted net income (3) | 0.43 | 0.20 |
| Plus: Dilutive impact of unvested equity awards (4) | (0.02) | — |
| Adjusted diluted earnings per share | $0.39 | $0.35 |
| (Share count in ’000) | ||
| Weighted-average shares of Class A common stock outstanding – diluted | 125,420 | 269,922 |
| Plus: Impact of all LLC Common Units exchanged for Class A shares (2) | 136,064 | — |
| Plus: Dilutive impact of unvested equity awards (4) | 17,783 | 4,854 |
| Adjusted diluted earnings per share diluted share count | 279,267 | 274,776 |
(1)Adjustment removes the impact of Net income (loss) attributed to dilutive awards and substantively vested RSUs
to arrive at Net income (loss) attributable to Ryan Specialty Holdings, Inc. For the three months ended March 31,
2025 and 2024, this removes $0 million and $17.7 million of Net income (loss), respectively, on 125.4 million and
269.9 million Weighted-average shares of Class A common stock outstanding - diluted, respectively. See “Note 9,
Earnings (Loss) Per Share” of the unaudited quarterly consolidated financial statements.
(2)For comparability purposes, this calculation incorporates the Net income (loss) that would be distributable if all LLC
Common Units (together with shares of Class B common stock). For the three months ended March 31, 2025 and
2024, this includes $23.3 million and $24.1 million of Net income (loss), respectively, on 261.5 million and 269.9
million Weighted-average shares of Class A common stock outstanding - diluted, respectively. For the three
months ended March 31, 2024, 140.4 million weighted average outstanding LLC Common Units were considered
dilutive and included in the 269.9 million Weighted-average shares of Class A common stock outstanding - diluted
within Diluted EPS. See “Note 9, Earnings (Loss) Per Share” of the unaudited quarterly consolidated financial
statements.
(3)Adjustments to Adjusted net income are described in the footnotes of the reconciliation of Adjusted net income to
Net income (loss) in “Adjusted Net Income and Adjusted Net Income Margin” on 261.5 million and 269.9 million
Weighted-average shares of Class A common stock outstanding - diluted for the three months ended March 31,
2025 and 2024, respectively.
(4)For comparability purposes and to be consistent with the treatment of the adjustments to arrive at Adjusted net
income, the dilutive effect of unvested equity awards as well as outstanding vested options and vested Class C
Incentive Units is calculated using the treasury stock method as if the weighted-average unrecognized cost
associated with the awards was $0 over the period, less any unvested equity awards determined to be dilutive
within the Diluted EPS calculation disclosed in “Note 9, Earnings (Loss) Per Share” of the unaudited quarterly
consolidated financial statements. For the three months ended March 31, 2025 and 2024, 17.8 million and 4.9
million shares were added to the calculation, respectively.
17
Reconciliation of Credit Adjusted EBITDAC to Net Income (Loss)
| (in thousands) | Twelve Months Ended<br><br>March 31, 2025 |
|---|---|
| Total Revenue | $2,653,830 |
| Net Income | $184,847 |
| Interest expense, net | 183,556 |
| Income tax expense | 91,645 |
| Depreciation | 10,344 |
| Amortization | 194,842 |
| Change in contingent consideration (1) | (36,836) |
| EBITDAC | $628,398 |
| Acquisition-related expense | 78,707 |
| Acquisition related long-term incentive compensation | 34,904 |
| Restructuring and related expense | 30,659 |
| Amortization and expense related to discontinued prepaid incentives | 4,926 |
| Other non-operating loss | 12,912 |
| Equity-based compensation | 57,092 |
| IPO related expenses | 24,466 |
| (Income) from equity method investments in related party | (17,562) |
| Adjusted EBITDAC (2) | $854,502 |
| Credit adjustments (3) | 77,923 |
| Credit Adjusted EBITDAC | $932,425 |
(1)For the twelve months ended March 31, 2025, Change in contingent consideration included a $37.9 million
decrease in valuation of the US Assure contingent consideration as a result of increased loss ratios impacting
projected profit commissions.
(2)Adjustments made to Net income (loss) are described in the definition of Adjusted EBITDAC in “Non-GAAP
Financial Measures and Key Performance Indicators.”
(3)Adjustments made to Adjusted EBITDAC represent (without duplication) additional adjustments permitted under
our debt agreements.