Summary of BWIN Q1 2026 Earnings Call

1Key Financial Results and Metrics

Total Revenue: $532 million

Adjusted EBITDA: $137 million (up 21% year-over-year)

Adjusted EBITDA Margin: 26% (down 170 basis points from the prior year)

Adjusted Diluted EPS: $0.63

Organic Revenue Growth: 2% overall; 3% in commissions and fees; 4% in Insurance Advisory Solutions (IAS); 3% in Underwriting, Capacity and Technology Solutions (UCTS); down 5% in Main Street Insurance Solutions (MIS).

GAAP Net Loss: $1.9 million, or $0.20 per diluted share.

Adjusted Free Cash Flow: Flat at approximately $26 million, impacted by working capital timing and CAC-related cash outlays.

Net Leverage Ratio: Approximately 4.3 times.

2Strategic Updates and Business Highlights

Successful integration of partnerships with CAC, Ovi, and Capstone, contributing to 27% growth year-over-year.

CAC generated $38 million in new business, with a sales velocity of 61%.

Cost synergies from CAC integration are ahead of schedule, with $34 million realized against a target of $43 million.

The Catalyst program is underway, focusing on AI integration to enhance operational efficiency, with early productivity gains of up to 80%.

Launch of new proprietary insurance products is anticipated, including a builder program with Hippo and Spinnaker.

3Forward Guidance and Outlook

Q2 2026 Revenue Guidance: Expected between $485 million and $490 million, with mid-single-digit organic revenue growth.

Adjusted EBITDA Guidance for Q2: Between $113 million and $118 million.

Adjusted Diluted EPS Guidance for Q2: Between $0.44 and $0.48.

Full-year guidance remains unchanged, with expectations for total organic growth to accelerate throughout the year.

4Bad News, Challenges, or Points of Concern

Headwinds: Continued softness in the Medicare business and a procedural change affecting revenue recognition in IAS.

E&S Homeowners Business: Experienced a significant revenue decline (down 30% in Q1) due to a soft property market, although new product variants are being rolled out to counter this.

Adjusted EBITDA Margin Decline: The margin decreased due to the consolidation of CAC and a profit-sharing contract in UCTS.

Market Conditions: The property market is experiencing aggressive pricing declines, with expectations of a 400 to 500 basis point headwind in Q2.

5Notable Q&A Insights

Management expressed optimism about the underlying momentum in UCTS, expecting recovery to high single digits in organic growth for Q2.

The CAC partnership is exceeding expectations, with significant early contributions to both revenue and expense synergies.

Concerns were raised regarding the Medicare business, but management anticipates resolution of these headwinds by next quarter.

Competitive pressures in the E&S homeowners market were acknowledged, with plans to enhance product offerings to regain market share.

Management remains committed to share buybacks but is cautious about timing and pricing, prioritizing organic investments and M&A opportunities. This summary encapsulates the key points from BWIN's Q1 2026 earnings call, highlighting financial performance, strategic initiatives, future outlook, and challenges faced by the company.