Baldwin Group (NASDAQ: BWIN) Q1 2026 revenue jumps 29% on deals
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
The Baldwin Insurance Group, Inc. reported strong top-line growth for the first quarter of 2026, with total revenue rising 29% year-over-year to $532.2 million, driven largely by contributions from recent partnerships including CAC Group.
The company recorded a small GAAP net loss of $1.9 million, compared with a prior-year profit, while adjusted EBITDA increased 21% to $137.2 million, yielding an adjusted EBITDA margin of 25.8% versus 27.5% a year earlier. Organic revenue grew 2% year-over-year, and adjusted net income was $89.3 million, or adjusted diluted EPS of $0.63, down 3%.
Cash and cash equivalents were $146 million as of March 31, 2026, with $393 million of remaining borrowing capacity on the revolving credit facility. Net cash used in operating activities was $6.1 million, and adjusted free cash flow was essentially breakeven at $(0.2) million, reflecting integration costs and significant acquisition activity.
Positive
- None.
Negative
- None.
Insights
Strong revenue and EBITDA growth are offset by higher leverage, thin GAAP profitability, and modest organic expansion.
The Baldwin Group delivered first-quarter 2026 revenue of $532.2M, up 29%, with adjusted EBITDA up 21% to $137.2M. Growth is heavily partnership-driven, as organic revenue increased only 2%, while normalized organic growth including January partnerships is cited at approximately 9%.
GAAP results show an operating loss of $101.3M and a net loss of $1.9M, shaped by higher amortization, interest, and transaction costs from the CAC Group and other partnerships. Adjusted net income of $89.3M and adjusted diluted EPS of $0.63 (down 3%) highlight solid earnings power but also compression in adjusted EBITDA margin from 27.5% to 25.8%.
The balance sheet expanded significantly, with total assets rising to $5.94B and long-term debt (including the revolver) climbing above $2.34B. Liquidity remains sizable with $146M in cash and $393M of revolver capacity as of March 31, 2026. Future disclosures in company filings may provide additional clarity on how integration progress and the $3B/30 Catalyst transformation program affect organic growth and leverage metrics over subsequent quarters.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Total revenue: $532.2M
GAAP net income (loss): -$1.9M
Adjusted EBITDA: $137.2M
+5 more
8 metrics
Total revenue
$532.2M
Q1 2026, up 29% year-over-year
GAAP net income (loss)
-$1.9M
Q1 2026 net loss
Adjusted EBITDA
$137.2M
Q1 2026, up 21% year-over-year
Adjusted EBITDA margin
25.8%
Q1 2026 vs 27.5% prior-year period
Adjusted diluted EPS
$0.63
Q1 2026, down 3% year-over-year
Organic revenue growth
2%
Q1 2026 year-over-year organic revenue growth
Cash and cash equivalents
$146M
Balance as of March 31, 2026
Net cash from operating activities
-$6.1M
Net cash used in operating activities in Q1 2026
Key Terms
Adjusted EBITDA, organic revenue growth, Adjusted diluted EPS, Adjusted free cash flow, +2 more
6 terms
Adjusted EBITDA financial
"First Quarter Net Loss of $1.9 Million; Adjusted EBITDA(2) Growth of 21% to $137.2 Million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
organic revenue growth financial
"Organic revenue growth of 2% year-over-year"
Organic revenue growth is the increase in a company's sales that comes from its existing products and services, without including any gains from acquisitions or selling off parts of the business. It reflects the company’s ability to attract more customers or encourage existing customers to buy more over time. For investors, it indicates the company's underlying strength and efficiency in expanding its core operations.
Adjusted diluted EPS financial
"Adjusted diluted EPS decreased 3% year-over-year to $0.63"
Adjusted diluted EPS is a company’s profit per share after adding back or removing one-time items (like restructuring costs or gains) and dividing by the number of shares including potential shares from options and convertible securities. Investors use it as a cleaner view of ongoing earnings—like looking at a car’s regular fuel efficiency rather than a trip boosted by downhill coasting—to judge underlying performance and compare companies without temporary distortions.
Adjusted free cash flow financial
"Adjusted free cash flow(4) of $(0.2) million"
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
contingent earnout liabilities financial
"Current portion of contingent earnout liabilities"
Tax Receivable Agreement financial
"Tax Receivable Agreement liabilities"
A contract in which a company agrees to pay a specified party (often former owners after a spinoff or IPO) a share of future tax savings the company realizes. Think of it like agreeing to share a future tax refund with someone who helped create the conditions for that refund. For investors it matters because those payments reduce the cash the company can use for dividends, buybacks, or reinvestment, and therefore affect valuation and returns.
Earnings Snapshot
Revenue: $532.2M
Q1 2026
Revenue
$532.2M
+29% YoY
GAAP net income (loss)
-$1.9M
vs $24.9M prior-year profit
Adjusted EBITDA
$137.2M
+21% YoY
Adjusted net income
$89.3M
up from $76.6M
Organic revenue growth
2%
vs 10% prior-year
Adjusted diluted EPS
$0.63
-3% YoY
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 4, 2026
______________________________
(Exact name of registrant as specified in its charter)
______________________________
| (State or other jurisdiction of | (Commission | (I.R.S. Employer | ||||||||||||||||||
| incorporation or organization) | File No.) | Identification No.) | ||||||||||||||||||
(Address of principal executive offices) (Zip code)
(Registrant's telephone number, including area code): (866 ) 279-0698
Not Applicable
(Former Name, former address and former fiscal year, 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: | ||||||||
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
| Pre-commencement communications pursuant to Rule 14d-2 (b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||
| 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 Symbol(s) | Name of each exchange on which registered | ||||||||||||
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 | ||||||||
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. ☐
Item 2.02 Results of Operations and Financial Condition.
On May 4, 2026, The Baldwin Insurance Group, Inc. issued a press release announcing its financial results for the quarter ended March 31, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information contained in this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | |||||||
| 99.1 | Press release issued by The Baldwin Insurance Group, Inc. on May 4, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the inline XBRL document) | |||||||
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.
| The Baldwin Insurance Group, Inc. | |||||||||||
| Date: May 4, 2026 | By: | /s/ Bradford L. Hale | |||||||||
| Name: | Bradford L. Hale | ||||||||||
| Title: | Chief Financial Officer | ||||||||||
Exhibit 99.1
THE BALDWIN GROUP ANNOUNCES FIRST QUARTER 2026 RESULTS
— First Quarter Total Revenue Growth of 29% to $532.2 Million; Organic Revenue Growth(1) of 2% —
— First Quarter Net Loss of $1.9 Million; Adjusted EBITDA(2) Growth of 21% to $137.2 Million —
— First Quarter Diluted Earnings Per Share of $0.02; Adjusted Diluted EPS(3) of $0.63 —
— First Quarter Net Loss Margin of 0%; Adjusted EBITDA Margin(2) of 26% —
TAMPA, FLORIDA - May 4, 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 first quarter ended March 31, 2026.
FIRST QUARTER 2026 HIGHLIGHTS
•Total revenue increased 29% year-over-year to $532.2 million
•Organic revenue growth of 2% year-over-year
•GAAP net loss of $1.9 million and GAAP diluted earnings per share of $0.02
•Adjusted net income(3) of $89.3 million
•Adjusted diluted EPS decreased 3% year-over-year to $0.63
•Adjusted EBITDA grew 21% to $137.2 million
•Net loss margin of 0%
•Adjusted EBITDA margin of 25.8% compared to 27.5% in the prior-year period
•Net cash used in operating activities of $6.1 million
•Adjusted free cash flow(4) of $(0.2) million
"Our first quarter results demonstrate the durability and accelerating earnings power of our differentiated platform," said Trevor Baldwin, Chief Executive Officer of The Baldwin Group. "Total revenue grew 29% to $532.2 million and adjusted EBITDA grew 21% to $137.2 million, reflecting strong early contributions from our January partnerships—led by CAC Group—alongside continued execution across our core operating groups. CAC Group integration is meaningfully ahead of plan, with approximately 80% of targeted three-year expense synergies already actioned and revenue cross-sell wins materializing at scale more quickly than anticipated. Normalized organic growth of approximately 9%(5) inclusive of new partnerships underscores the trajectory of the business. We remain firmly on track to deliver accelerating organic growth through the year, exiting 2026 on a double-digit organic growth run rate and to continue advancing our $3B/30 Catalyst transformation program."
1
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 2026, cash and cash equivalents were $146 million and the Company had $393 million of borrowing capacity under its revolving credit facility.
WEBCAST AND CONFERENCE CALL INFORMATION
Baldwin will host a webcast and conference call to discuss first quarter 2026 results today at 5:00 PM ET. A live webcast and a slide presentation of the conference call will be available on Baldwin’s investor relations website at ir.baldwin.com. The dial-in number for the conference call is (877) 451-6152 (toll-free) or (201) 389-0879 (international). Please dial the number 10 minutes prior to the scheduled start time.
A webcast replay of the call will be available at ir.baldwin.com for one year following the call.
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) Organic revenue for the three months ended March 31, 2025 used to calculate organic revenue growth for the three months ended March 31, 2026 was $410.4 million, 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 months ended March 31, 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.
(2) 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.
(3) 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 per share, the most directly comparable GAAP financial measures, is set forth in the reconciliation table accompanying this release.
(4) Adjusted free cash flow is a non-GAAP measure. Reconciliation of adjusted free cash flow to net cash used in operating activities, the most directly comparable GAAP financial measure, is set forth in the reconciliation table accompanying this release.
(5) Refer to our first quarter 2026 earnings supplement, available on our website at ir.baldwin.com, for a reconciliation of normalized organic growth inclusive of January 2026 partnerships.
2
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.
CONTACTS
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
3
THE BALDWIN INSURANCE GROUP, INC.
Condensed Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
| For the Three Months Ended March 31, | ||||||||||||||
| (in thousands, except per share data) | 2026 | 2025 | ||||||||||||
| Revenues: | ||||||||||||||
| Commissions and fees | $ | 528,861 | $ | 410,531 | ||||||||||
| Investment income | 3,374 | 2,874 | ||||||||||||
| Total revenues | 532,235 | 413,405 | ||||||||||||
| Operating expenses: | ||||||||||||||
| Colleague compensation and benefits | 283,612 | 198,020 | ||||||||||||
| Outside commissions | 66,679 | 65,823 | ||||||||||||
| Other operating expenses | 224,163 | 58,019 | ||||||||||||
| Amortization expense | 55,047 | 25,882 | ||||||||||||
| Change in fair value of contingent consideration | 1,969 | 8,061 | ||||||||||||
| Depreciation expense | 2,031 | 1,583 | ||||||||||||
| Total operating expenses | 633,501 | 357,388 | ||||||||||||
Operating income (loss) | (101,266) | 56,017 | ||||||||||||
| Other income (expense): | ||||||||||||||
| Interest expense, net | (38,900) | (29,976) | ||||||||||||
| Gain on divestitures | — | 1,401 | ||||||||||||
| Loss on extinguishment and modification of debt | (7,409) | (2,394) | ||||||||||||
| Other income (expense), net | 647 | (150) | ||||||||||||
| Total other expense, net | (45,662) | (31,119) | ||||||||||||
Income (loss) before income taxes and share of net earnings of equity method investee | (146,928) | 24,898 | ||||||||||||
| Share of net earnings of equity method investee | 511 | — | ||||||||||||
Income (loss) before income taxes | (146,417) | 24,898 | ||||||||||||
| Less: income tax benefit | (144,521) | — | ||||||||||||
Net income (loss) | (1,896) | 24,898 | ||||||||||||
Less: net income (loss) attributable to noncontrolling interests | (4,237) | 10,959 | ||||||||||||
| Net income attributable to Baldwin | $ | 2,341 | $ | 13,939 | ||||||||||
Basic earnings per share | $ | 0.02 | $ | 0.21 | ||||||||||
| Diluted earnings per share | $ | 0.02 | $ | 0.20 | ||||||||||
| Weighted-average shares of Class A common stock outstanding - basic | 93,798 | 66,067 | ||||||||||||
| Weighted-average shares of Class A common stock outstanding - diluted | 96,828 | 69,328 | ||||||||||||
Net income (loss) | $ | (1,896) | $ | 24,898 | ||||||||||
| Other comprehensive income | 3,292 | — | ||||||||||||
| Comprehensive income | 1,396 | 24,898 | ||||||||||||
Less: comprehensive income (loss) attributable to noncontrolling interests | (3,191) | 10,959 | ||||||||||||
| Comprehensive income attributable to Baldwin | $ | 4,587 | $ | 13,939 | ||||||||||
4
THE BALDWIN INSURANCE GROUP, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
| (in thousands, except share and per share data) | March 31, 2026 | December 31, 2025 | ||||||||||||
| Assets | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 146,409 | $ | 123,669 | ||||||||||
| Fiduciary cash | 309,712 | 223,228 | ||||||||||||
| Assumed premiums, commissions and fees receivable, net | 447,619 | 342,136 | ||||||||||||
| Fiduciary receivables | 669,960 | 497,035 | ||||||||||||
| Prepaid expenses and other current assets | 20,778 | 13,650 | ||||||||||||
| Total current assets | 1,594,478 | 1,199,718 | ||||||||||||
| Property and equipment, net | 31,498 | 22,502 | ||||||||||||
| Right-of-use assets | 83,409 | 61,976 | ||||||||||||
| Other assets | 96,373 | 82,419 | ||||||||||||
| Intangible assets, net | 1,484,739 | 978,434 | ||||||||||||
| Goodwill | 2,652,131 | 1,517,171 | ||||||||||||
| Total assets | $ | 5,942,628 | $ | 3,862,220 | ||||||||||
Liabilities, Mezzanine Equity and Stockholders’ Equity | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Fiduciary liabilities | $ | 979,672 | $ | 720,263 | ||||||||||
| Commissions payable | 93,438 | 50,933 | ||||||||||||
| Accrued expenses and other current liabilities | 285,867 | 252,560 | ||||||||||||
| Current portion of contingent earnout liabilities | 115,468 | 9,004 | ||||||||||||
| Total current liabilities | 1,474,445 | 1,032,760 | ||||||||||||
| Revolving line of credit | 191,000 | 107,000 | ||||||||||||
| Long-term debt, less current portion | 2,153,414 | 1,566,122 | ||||||||||||
| Contingent earnout liabilities, less current portion | 219,916 | 14,289 | ||||||||||||
| Operating lease liabilities, less current portion | 74,578 | 57,651 | ||||||||||||
| Tax Receivable Agreement liabilities | 144,570 | — | ||||||||||||
| Deferred tax liabilities | 4,650 | — | ||||||||||||
| Other liabilities | 128,400 | — | ||||||||||||
| Total liabilities | 4,390,973 | 2,777,822 | ||||||||||||
| Commitments and contingencies | ||||||||||||||
| Mezzanine equity: | ||||||||||||||
| Redeemable noncontrolling interest | 537 | 519 | ||||||||||||
| Stockholders’ equity: | ||||||||||||||
Class A common stock, par value $0.01 per share, 300,000,000 shares authorized; 96,647,096 and 71,779,608 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively | 966 | 718 | ||||||||||||
Class B common stock, par value $0.0001 per share, 100,000,000 shares authorized; 45,213,446 and 46,703,818 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively | 5 | 5 | ||||||||||||
| Additional paid-in capital | 1,235,101 | 844,236 | ||||||||||||
| Accumulated deficit | (274,870) | (245,236) | ||||||||||||
| Accumulated other comprehensive income | 2,738 | 492 | ||||||||||||
| Total stockholders’ equity attributable to Baldwin | 963,940 | 600,215 | ||||||||||||
| Noncontrolling interest | 587,178 | 483,664 | ||||||||||||
| Total stockholders’ equity | 1,551,118 | 1,083,879 | ||||||||||||
| Total liabilities, mezzanine equity and stockholders’ equity | $ | 5,942,628 | $ | 3,862,220 | ||||||||||
5
THE BALDWIN INSURANCE GROUP, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| For the Three Months Ended March 31, | ||||||||||||||
| (in thousands) | 2026 | 2025 | ||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income (loss) | $ | (1,896) | $ | 24,898 | ||||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||||||||
Depreciation and amortization | 57,078 | 27,465 | ||||||||||||
| Change in fair value of contingent consideration | 1,969 | 8,061 | ||||||||||||
| Share-based compensation expense | 12,818 | 12,803 | ||||||||||||
| Payment of contingent earnout consideration in excess of purchase price accrual | (5,876) | (78,193) | ||||||||||||
| Gain on divestitures | — | (1,401) | ||||||||||||
| Amortization of deferred financing costs | 1,665 | 1,422 | ||||||||||||
| Other operating activity | (1,160) | 726 | ||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||
| Assumed premiums, commissions and fees receivable, net | (55,666) | (47,789) | ||||||||||||
| Prepaid expenses and other current assets | (6,627) | (6,708) | ||||||||||||
| Right-of-use assets | 8,811 | 3,775 | ||||||||||||
| Accounts payable, accrued expenses and other current liabilities | 2,423 | 9,892 | ||||||||||||
| Colleague earnout incentives | — | (14,854) | ||||||||||||
| Operating lease liabilities | (4,739) | (4,080) | ||||||||||||
| Deferred taxes | (14,873) | — | ||||||||||||
| Net cash used in operating activities | (6,073) | (63,983) | ||||||||||||
Cash flows from investing activities: | ||||||||||||||
| Cash consideration paid for business combinations, net of cash received | (452,377) | — | ||||||||||||
| Deferred payments for business combinations | (25,000) | — | ||||||||||||
| Capital expenditures | (12,664) | (8,933) | ||||||||||||
| Investments in and loans for business ventures | (87) | (620) | ||||||||||||
| Proceeds from divestitures, net of cash transferred | — | 1,401 | ||||||||||||
| Cash consideration paid for asset acquisitions | (1,076) | (460) | ||||||||||||
| Net cash used in investing activities | (491,204) | (8,612) | ||||||||||||
| Cash flows from financing activities: | ||||||||||||||
| Change in fiduciary receivables and liabilities, net | (17,509) | (5,444) | ||||||||||||
| Repurchase of common stock | (46,966) | — | ||||||||||||
Proceeds from revolving line of credit | 245,000 | 9,000 | ||||||||||||
| Payments on revolving line of credit | (161,000) | (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 | (6,538) | (2,340) | ||||||||||||
| Payments of deferred financing costs | (4,040) | — | ||||||||||||
| Payment of contingent earnout consideration up to amount of purchase price accrual | — | (32,841) | ||||||||||||
| Other financing activity | (2,446) | (488) | ||||||||||||
| Net cash provided by financing activities | 606,501 | 58,887 | ||||||||||||
| Net increase (decrease) in cash and cash equivalents and fiduciary cash | 109,224 | (13,708) | ||||||||||||
| 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 | $ | 456,121 | $ | 299,061 | ||||||||||
6
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.
7
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.
8
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 March 31, | ||||||||||||||
| (in thousands, except percentages) | 2026 | 2025 | ||||||||||||
| Revenues | $ | 532,235 | $ | 413,405 | ||||||||||
Net income (loss) | $ | (1,896) | $ | 24,898 | ||||||||||
Adjustments to net income (loss): | ||||||||||||||
| Amortization expense | 55,047 | 25,882 | ||||||||||||
| Interest expense, net | 39,207 | 29,976 | ||||||||||||
| Transaction closing costs | 17,668 | — | ||||||||||||
Income and other taxes(1) | (14,148) | 1,471 | ||||||||||||
| Share-based compensation | 12,818 | 12,803 | ||||||||||||
| Transaction-related partnership and integration expenses | 8,173 | 1,533 | ||||||||||||
| Loss on extinguishment and modification of debt | 7,409 | 2,394 | ||||||||||||
Transformation costs(2) | 3,059 | 545 | ||||||||||||
| Depreciation expense | 2,031 | 1,583 | ||||||||||||
| Change in fair value of contingent consideration | 1,969 | 8,061 | ||||||||||||
| Severance | 1,815 | 1,207 | ||||||||||||
| Colleague earnout incentives | — | (3,269) | ||||||||||||
| Gain on divestitures | — | (1,401) | ||||||||||||
Other(3) | 4,096 | 8,112 | ||||||||||||
| Adjusted EBITDA | $ | 137,248 | $ | 113,795 | ||||||||||
| Net income (loss) margin | — | % | 6 | % | ||||||||||
| Adjusted EBITDA margin | 25.8 | % | 27.5 | % | ||||||||||
__________
(1) Income and other taxes include income tax benefit, Tax Receivable Agreement expense and other operating tax expense, such as state taxes, under GAAP.
(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 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.
9
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 March 31, | ||||||||||||||
| (in thousands, except percentages) | 2026 | 2025 | ||||||||||||
Commissions and fees | $ | 528,861 | $ | 410,531 | ||||||||||
Partnership commissions and fees(1) | (111,485) | — | ||||||||||||
| Organic revenue | $ | 417,376 | $ | 410,531 | ||||||||||
Organic revenue growth(2) | $ | 6,933 | $ | 38,219 | ||||||||||
Organic revenue growth %(2) | 2 | % | 10 | % | ||||||||||
__________
(1) Includes the first 12 months of such commissions and fees generated from newly acquired partners.
(2) Organic revenue for the three months ended March 31, 2025 used to calculate organic revenue growth for the three months ended March 31, 2026 was $410.4 million, which is adjusted to exclude commissions and fees from divestitures that occurred during 2025.
10
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 per share, which we consider to be the most directly comparable GAAP financial measures:
| For the Three Months Ended March 31, | ||||||||||||||
| (in thousands, except per share data) | 2026 | 2025 | ||||||||||||
| Net income attributable to Baldwin | $ | 2,341 | $ | 13,939 | ||||||||||
| Net income (loss) attributable to noncontrolling interests | (4,237) | 10,959 | ||||||||||||
| Amortization expense | 55,047 | 25,882 | ||||||||||||
| Transaction closing costs | 17,668 | — | ||||||||||||
Income tax expense(1) | (14,194) | 1,200 | ||||||||||||
| Share-based compensation | 12,818 | 12,803 | ||||||||||||
| Transaction-related partnership and integration expenses | 8,173 | 1,533 | ||||||||||||
| Loss on extinguishment and modification of debt | 7,409 | 2,394 | ||||||||||||
Transformation costs(2) | 3,059 | 545 | ||||||||||||
| Depreciation | 2,031 | 1,583 | ||||||||||||
| Change in fair value of contingent consideration | 1,969 | 8,061 | ||||||||||||
| Severance | 1,815 | 1,207 | ||||||||||||
| Other amortization/accretion, net | 1,103 | 1,422 | ||||||||||||
| Colleague earnout incentives | — | (3,269) | ||||||||||||
| Gain on divestitures | — | (1,401) | ||||||||||||
Other(3) | 4,096 | 8,112 | ||||||||||||
| Adjusted pre-tax income | 99,098 | 84,970 | ||||||||||||
Adjusted income taxes(4) | 9,811 | 8,412 | ||||||||||||
| Adjusted net income | $ | 89,287 | $ | 76,558 | ||||||||||
| Weighted-average shares of Class A common stock outstanding - diluted | 96,828 | 69,328 | ||||||||||||
Exchange of Class B common stock(5) | 45,963 | 49,045 | ||||||||||||
| Adjusted diluted weighted-average shares outstanding | 142,791 | 118,373 | ||||||||||||
Diluted earnings per share | $ | 0.02 | $ | 0.20 | ||||||||||
Effect of exchange of Class B common stock and net income (loss) attributable to noncontrolling interests per share | (0.03) | 0.01 | ||||||||||||
| Other adjustments to earnings per share | 0.71 | 0.51 | ||||||||||||
| Adjusted income taxes per share | (0.07) | (0.07) | ||||||||||||
| Adjusted diluted EPS | $ | 0.63 | $ | 0.65 | ||||||||||
___________
(1) Income tax expense includes income tax 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.
11
Adjusted Net Cash Provided by Operating Activities (“Adjusted Free Cash Flow”)
The following table reconciles adjusted free cash flow to net cash used in operating activities, which we consider to be the most directly comparable GAAP financial measure:
| For the Three Months Ended March 31, | ||||||||||||||
| (in thousands) | 2026 | 2025 | ||||||||||||
| Net cash used in operating activities | $ | (6,073) | $ | (63,983) | ||||||||||
| Adjustments to net cash used in operating activities: | ||||||||||||||
| Payment of contingent earnout consideration in excess of purchase price accrual | 5,876 | 78,193 | ||||||||||||
| Payment of colleague earnout incentives | — | 11,599 | ||||||||||||
| Adjusted free cash flow | $ | (197) | $ | 25,809 | ||||||||||
12
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 | |||||||
13
FAQ
How did The Baldwin Insurance Group (BWIN) perform in Q1 2026?
The Baldwin Group delivered strong Q1 2026 revenue growth but modest GAAP profitability. Total revenue rose 29% year-over-year to $532.2 million, while the company reported a small GAAP net loss of $1.9 million and adjusted EBITDA of $137.2 million with a 25.8% margin.
What was Baldwin Insurance Group’s Q1 2026 adjusted EPS and net income?
Baldwin reported solid adjusted earnings despite a GAAP net loss. Adjusted net income for Q1 2026 was $89.3 million, and adjusted diluted EPS was $0.63, a 3% year-over-year decline, reflecting higher amortization, interest, and transaction-related costs tied to recent partnerships.
How fast did Baldwin Insurance Group’s revenue grow in Q1 2026?
Revenue growth was robust in the first quarter of 2026. Total revenue increased 29% year-over-year to $532.2 million, supported by recent partnerships. Organic revenue growth, which excludes new partners’ first-year contributions and divestitures, was 2% compared with 10% organic growth in the prior-year period.
What were Baldwin Insurance Group’s Q1 2026 margins and cash flow?
Margins narrowed and operating cash flow was slightly negative in Q1 2026. Net loss margin was reported at 0%, while adjusted EBITDA margin declined to 25.8% from 27.5%. Net cash used in operating activities was $6.1 million, and adjusted free cash flow was approximately negative $0.2 million.
How did recent partnerships like CAC Group affect Baldwin Insurance Group in Q1 2026?
Recent partnerships significantly influenced Baldwin’s Q1 2026 results. Management highlighted strong contributions from January partnerships, led by CAC Group, helping drive 29% total revenue growth and 21% adjusted EBITDA growth, while also noting that CAC integration is ahead of plan with most targeted expense synergies already actioned.
What is Baldwin Insurance Group’s liquidity and debt position as of March 31, 2026?
Baldwin ended Q1 2026 with substantial liquidity but higher leverage. Cash and cash equivalents totaled $146 million, and the company had $393 million of available borrowing capacity under its revolving credit facility, alongside total long-term debt including the revolver exceeding $2.3 billion.