Brown & Brown (BRO) Financials

Brown & Brown, Inc. (NYSE: BRO) has demonstrated steady financial growth over the past four years, supported by consistent revenue expansion and profitability improvements. Here’s a summary analysis based on the income statements, cash flow statements, and balance sheets from 2022 through Q1 2025.

• Revenue Growth: Total revenue increased steadily from about $1.00 billion in Q4 2022 to $1.40 billion in Q1 2025, reflecting growing service charges and diversified non-interest income.
• Net Income Growth: Net income attributable to common shareholders rose from $145.4 million in Q4 2022 to $331 million in Q1 2025, signaling improved profitability.
• Strong Non-Interest Income: Other service charges, a key component of revenue, increased significantly from approximately $896 million in Q4 2022 to over $1.4 billion by Q1 2025, highlighting robust fee-based earnings.
• Operating Efficiency Gains: Although total non-interest expenses increased, the rise in revenue outpaced expense growth, improving pre-tax income from $194 million in Q4 2022 to $427 million in Q1 2025.
• Healthy Cash Flow from Operations: Net cash from operating activities remains strong, with $213 million generated in Q1 2025, supporting ongoing investments and financial flexibility.
• Controlled Capital Expenditures: Capital expenditures related to property and equipment were moderate around $13–$31 million quarterly, supporting asset base without excessive cash drain.
• Debt Management: Despite fluctuations, the company has managed long-term debt prudently, with a slight increase to $3.73 billion by Q1 2025, balanced by active issuance and repayments.
• Fluctuating Exchange Rate Effects: Currency exchange effects added volatility to net cash changes in several quarters, notably the positive $22 million in Q1 2025 and negative impacts in prior periods.
• Share Outstanding Stability: Weighted average shares outstanding remained relatively stable around 285-286 million shares over the periods, suggesting limited dilution or buyback activity recently.
• Rising Accrued Interest and Payables: Accrued interest payable increased from about $415 million in Q1 2023 to $463 million by Q1 2025, indicating growing obligations that may impact liquidity.

Overall, Brown & Brown shows a solid upward trajectory in key financial metrics, with expanding revenues, increasing profitability, and consistent operational cash flow. While the company faces some liabilities growth such as accrued interest, its ability to generate cash and manage expenses indicates positive business momentum. Investors may find these trends attractive due to the consistent earnings growth and effective balance sheet management evidenced over the recent years.