RYAN — Ryan Specialty Holdings, Inc.

Summary of Ryan Specialty Holdings Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Q4 2025 Revenue: $751 million, up 13% year-over-year.
• Organic Growth: 6.6% for Q4; 10.1% for the full year, maintaining double-digit growth for the 15th consecutive year.
• Full Year Revenue: Surpassed $3 billion, a 21% increase from 2024.
• Adjusted EBITDAC: Grew 2.9% to $222 million in Q4; full year adjusted EBITDAC reached $967 million, up 19.2%.
• Adjusted EBITDAC Margin: 29.6% for Q4 (down from 32.6% YoY); 31.7% for the full year (down from 32.2% YoY).
• Adjusted EPS: Increased 9.5% to $1.96 for the full year.
• Debt Levels: Ended Q4 with a total net leverage of 3.2x.

2. Strategic Updates and Business Highlights

• Acquisitions: Completed 5 acquisitions in 2025 with trailing revenue of over $125 million, contributing significantly to growth.
• Delegated Authority Revenue: Doubled to $1.4 billion, now 47% of total revenue.
• Project Empower: Launched a three-year restructuring program aimed at improving efficiency and creating room for further investment, with an anticipated cumulative charge of $160 million through 2028 and expected annual savings of $80 million by 2029.
• Share Repurchase Program: Authorized a $300 million share repurchase program, reflecting confidence in the company's valuation and outlook.

3. Forward Guidance and Outlook

• 2026 Organic Revenue Growth: Expected in the high single digits, reflecting continued property pricing pressures and moderating casualty growth.
• Adjusted EBITDAC Margin Guidance: Anticipated to be flat to moderately down compared to the prior year.
• Market Conditions: Anticipate continued challenges in property pricing, with potential declines similar to those seen in Q4 2025.

4. Bad News, Challenges, or Points of Concern

• Property Market Decline: Significant pricing declines observed, particularly in large accounts (25%-35% in December), with expectations for continued softening in 2026.
• Competitive Pressures: Increased competition in casualty lines, with some carriers tightening distribution and raising prices.
• Project Delays: Continued delays in project-based business, particularly in construction, affecting growth.
• Margin Pressures: Investments in talent and technology have impacted margins, with expectations of continued pressure in the near term.

5. Notable Q&A Insights

• AI Impact: Management views AI as an ally to enhance efficiency and client service rather than a threat to disintermediate brokers.
• Client Demand: No significant trend of clients buying less coverage; however, higher retention levels and alternative risk solutions are becoming more common.
• Market Share: Management remains confident in their ability to capture market share despite competitive pressures, particularly in high-hazard casualty lines.
• Contingent Commissions: Expected to stabilize in 2026 after a strong performance in 2025, with a normal cat season anticipated.
• M&A Strategy: While share repurchases are a new tool, M&A remains the top priority for capital allocation, with a disciplined approach to evaluating potential acquisitions.

Overall, Ryan Specialty Holdings demonstrated resilience in a challenging market, with strong financial performance and strategic initiatives aimed at sustaining growth, despite facing headwinds in the property market and competitive pressures in casualty lines.