Revenue and Market Exposure - Approximately 6% of the company's revenues for the years ended December 31, 2025, and 5% for 2024 were generated outside of the United States, exposing the company to currency risk from fluctuations in exchange rates [219]. - The company is experiencing substantial geopolitical and regulatory changes that could adversely impact revenue streams and increase compliance costs [244]. - The company’s entry into new markets and service offerings increases the complexity of legal and regulatory compliance, particularly in the insurance sector [249]. Cybersecurity and Technology Risks - The company has experienced cybersecurity incidents, including security breaches, but these have not had a material impact on its business strategy or financial condition to date [227]. - The company may face challenges in maintaining and upgrading its information technology systems, which could lead to vulnerabilities and increased operational costs [230]. - The company’s reliance on third-party vendors for information technology systems exposes it to additional risks related to cybersecurity and operational disruptions [229]. Regulatory and Compliance Challenges - The company is subject to various legal and regulatory frameworks globally, which could increase compliance costs and limit growth opportunities [242]. - The implementation of the EU GDPR has introduced significant compliance obligations and potential financial penalties for noncompliance, which could adversely affect the company's operations [244]. - The U.K. GDPR and Data Protection Act 2018 impose fines of up to £17.5 million or 4% of the company's worldwide annual turnover, emphasizing the importance of compliance in the U.K. market [245]. - The California Consumer Privacy Act (CCPA) requires increased transparency and data subject rights, impacting operational practices and compliance costs in the U.S. [246]. - The company faces increased regulatory scrutiny regarding the use of AI and automated decision-making, with potential implications for compliance and operational costs [251]. - The evolving landscape of data localization laws may complicate cross-border data transfers, impacting operational efficiency [248]. - The company is affected by regulatory oversight regarding the handling and investment of client funds, which could lead to fines and sanctions if mishandled [263]. Financial Obligations and Debt Management - The company’s ability to generate sufficient cash flow to service its debt is a critical factor for its financial flexibility and operational management [20]. - As of December 31, 2025, the company had a consolidated outstanding indebtedness of $3,356 million, including $400 million related to 4.375% Senior Secured Notes and $1,683 million under a Term Loan with JPMorgan Chase Bank [269]. - The company expects to use cash flow from operations to meet current and future financial obligations, including funding operations and acquisitions, dividend payments, and capital expenditures [270]. - The company may incur additional indebtedness in the future, which could exacerbate risks associated with its substantial indebtedness [273]. - The company may not be able to generate sufficient cash flow to service all of its indebtedness, which could force it to take actions such as selling assets or reducing capital expenditures [274]. - Credit rating downgrades could increase financing costs and limit access to financing sources, adversely impacting competitive position [280]. Taxation and Legal Liabilities - Changes in tax laws or regulations could materially affect the company's business, cash flow, financial condition, or results of operations [264]. - The company is subject to ongoing tax audits and disputes, which could result in higher tax costs and adversely affect financial condition [264]. - The company has recorded Tax Receivable Agreement liabilities of $459.0 million as of December 31, 2025, associated with payments to current and certain former LLC Unitholders [289]. - The Tax Receivable Agreement requires the company to make cash payments equal to 85% of the tax benefits realized, which may significantly exceed actual tax savings [294]. - The company may need to incur debt to finance payments under the Tax Receivable Agreement if cash resources are insufficient [297]. - Future tax benefits from the Tax Receivable Agreement depend on sufficient taxable income and may be impacted by changes in tax laws [300]. - The company may face adverse outcomes from tax audits, which could negatively affect operating results and financial condition [306]. Corporate Governance and Ownership Structure - The Ryan Parties control 83% of the shares of the outstanding Class B common stock, allowing them to influence significant corporate transactions [292]. - The company's ability to make distributions may be restricted by debt agreements and applicable laws, potentially affecting liquidity [291]. - As of December 31, 2025, the Ryan Parties control approximately 77% of the voting power of the outstanding capital stock, significantly influencing corporate decisions [310]. - The dual-class structure allows Class B common stockholders to have 10 votes per share, while Class A common stockholders have one vote per share, concentrating voting control [310]. - The Director Nomination Agreement allows the Ryan Parties to designate nominees for the Board based on their ownership percentage, potentially leading to disproportionate representation [311]. - Provisions in the corporate governance documents could make it more difficult for stockholders to replace current management or initiate changes [315]. Market Performance and Stock Price Volatility - The company's operating results and stock price may experience significant volatility due to various factors, including market conditions and fluctuations in financial results [328]. - Factors influencing the company's stock price include market conditions, new product introductions, sales of large stock blocks, and regulatory developments [329]. - Future sales of a substantial number of Class A common stock could adversely affect the market price, as significant amounts are held by pre-IPO equity holders [323]. - The company has a share repurchase program authorized by the Board of Directors, but it does not guarantee the repurchase of a specific number of shares [324]. - The company has the authority to issue preferred stock, which could adversely affect holders of Class A common stock and potentially depress its market price [327]. Dividends and Distributions - The company announced its first cash dividend on February 27, 2024, and has paid a dividend every quarter since then, but future dividends are subject to various conditions and may be discontinued or reduced at any time [326].

Core Insights - Ryan Specialty Group reported revenue of $751.21 million for the quarter ended December 2025, marking a year-over-year increase of 13.2% [1] - The earnings per share (EPS) for the same period was $0.45, unchanged from the previous year [1] - The reported revenue fell short of the Zacks Consensus Estimate of $777.88 million, resulting in a surprise of -3.43% [1] - The company experienced an EPS surprise of -9.4%, with the consensus EPS estimate being $0.50 [1] Revenue Breakdown - Fiduciary investment income was reported at $13.17 million, below the estimated $14.25 million [4] - Net commissions and fees totaled $738.05 million, compared to the estimated $771.1 million [4] - Binding Authority revenue was $84.05 million, slightly below the two-analyst average estimate of $85.81 million [4] - Underwriting Management revenue reached $268.31 million, compared to the average estimate of $276.94 million [4] - Wholesale Brokerage revenue was reported at $385.69 million, below the estimated $406.7 million [4] Stock Performance - Ryan Specialty's shares have returned -14.2% over the past month, contrasting with the Zacks S&P 500 composite's -0.3% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

分组1 - Ryan Specialty Group reported quarterly earnings of $0.45 per share, missing the Zacks Consensus Estimate of $0.50 per share, representing an earnings surprise of -9.40% [1] - The company posted revenues of $751.21 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 3.43%, compared to year-ago revenues of $663.53 million [2] - Ryan Specialty shares have declined approximately 16.6% since the beginning of the year, while the S&P 500 has gained 1.4% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.47 on revenues of $817.46 million, and for the current fiscal year, it is $2.38 on revenues of $3.57 billion [7] - The Zacks Industry Rank for Insurance - Brokerage is currently in the bottom 7% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

Financial Data and Key Metrics Changes - For Q4 2025, total revenue grew 13% to $751 million, with organic growth of 6.6% and M&A contributing over five percentage points to the top line [31] - Full year 2025 revenues surpassed $3 billion, up 21% year-over-year, driven by organic growth of 10.1% and significant contributions from M&A [4][32] - Adjusted EBITDA for 2025 grew 19.2% to $967 million, with an adjusted EBITDA margin of 31.7%, slightly down from 32.2% in the prior year [4][32] - Adjusted earnings per share increased by 9.5% to $1.96 [4][32] Business Line Data and Key Metrics Changes - The property business experienced a modest decline, particularly in Q4 where pricing dropped by 25%-35% on large accounts [16][17] - The casualty practice had a strong year, with significant price increases in high-hazard lines exceeding 10% [18] - Delegated authority revenue doubled over the last two years to $1.4 billion, now representing 47% of total revenue [8] Market Data and Key Metrics Changes - The insurance market is currently experiencing significant volatility, with rapid shifts in pricing and market sentiment [6][7] - The company noted a trend of admitted carriers re-entering certain segments, particularly on smaller accounts, but this has not significantly impacted overall rates [25] - The construction segment remains strong, although macroeconomic pressures have delayed project timelines [53][56] Company Strategy and Development Direction - The company is launching Project Empower, a three-year restructuring program aimed at improving efficiency and creating headroom for additional investment [10][36] - A $300 million share repurchase program has been authorized, reflecting confidence in the company's valuation and long-term outlook [12][34] - The focus remains on strategic investments in growth, talent acquisition, and innovation, particularly in AI and technology [29][35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth in property despite near-term pricing pressures, citing factors like increased demand for E&S solutions [17] - The company anticipates high single-digit organic revenue growth for 2026, reflecting current market conditions and continued property pricing pressures [37] - Management emphasized the importance of maintaining strong relationships with clients and adapting to market changes to capture new business opportunities [49] Other Important Information - The company completed five acquisitions in 2025, contributing to a diversified platform with over 300 products [9][25] - The adjusted effective tax rate was 26% for both the quarter and the full year, with expectations for a similar rate in 2026 [33] Q&A Session Summary Question: Can you elaborate on the organic growth guidance for 2026? - Management noted that property pricing declines are expected to continue, impacting overall growth expectations, which are now set at high single digits for 2026 [41][43] Question: How does the company view AI's impact on the brokerage sector? - Management views AI as an ally that will enhance efficiency and client service, emphasizing the importance of relationships and expertise over technology alone [48][50] Question: What is the outlook for the construction segment? - The construction segment remains strong, with a robust pipeline, although macroeconomic pressures have caused delays in project timelines [52][56] Question: How does the share repurchase program fit into the company's M&A strategy? - Management clarified that the share repurchase program does not diminish the commitment to M&A, which remains a top priority for capital allocation [59][60] Question: What are the expectations for client demand in the current environment? - Management indicated that while there are no measurable trends of clients buying less coverage, the structure of demands is changing, with higher retention levels in certain accounts [62][63]

Financial Data and Key Metrics Changes - For Q4 2025, total revenue grew 13% to $751 million, with organic growth of 6.6% and M&A contributing over five percentage points to the top line [31] - Full year 2025 revenues surpassed $3 billion, up 21% year over year, driven by organic growth of 10.1% and significant contributions from M&A [4][32] - Adjusted EBITDA grew 19.2% to $967 million, with an adjusted EBITDA margin of 31.7%, slightly down from 32.2% in the prior year [4][32] - Adjusted earnings per share increased by 9.5% to $1.96 [4][32] Business Line Data and Key Metrics Changes - The property business experienced a modest decline, particularly in Q4 where pricing dropped 25%-35% for large accounts [16][17] - The casualty practice had a strong year, with significant price increases in high-hazard lines exceeding 10% [18] - The delegated authority business generated $1.4 billion in revenue, accounting for 47% of total revenue, up from $700 million and 35% two years ago [8] Market Data and Key Metrics Changes - The insurance market is currently experiencing significant volatility, with rapid shifts in market sentiment [6][7] - The company noted a trend of admitted carriers stepping back into certain segments, particularly on smaller accounts [16] - The overall market conditions are expected to lead to continued pricing declines in property for 2026 [17] Company Strategy and Development Direction - The company is focused on a diversified platform to deliver innovative solutions, emphasizing the importance of specialized expertise and top talent [7][8] - A three-year restructuring program called "Empower" is being launched to improve efficiency and create headroom for additional investment [10][36] - The company has authorized a $300 million share repurchase program, reflecting confidence in its long-term outlook [12][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth in property despite near-term pricing pressures, citing factors like increasing populations in cat-affected areas [17] - The company anticipates high single-digit organic revenue growth for 2026, reflecting current market conditions and continued property pricing pressures [37] - Management emphasized the importance of AI as an enabler to improve efficiency and client relationships [47][49] Other Important Information - The company completed five acquisitions in 2025, contributing to its growth strategy [5][25] - The Empower program is expected to incur a cumulative special charge of approximately $160 million through 2028, with anticipated annual savings of $80 million by 2029 [11][37] Q&A Session Summary Question: Can you elaborate on the organic growth guidance for 2026? - Management noted that property pricing declines are expected to continue, impacting overall growth guidance, which is now set at high single digits for 2026 [41][42] Question: How does the company view AI's impact on the brokerage sector? - Management views AI as an ally that will enhance efficiency and client service, emphasizing the importance of relationships and trust in the brokerage business [46][48] Question: What is the outlook for the construction segment? - The construction segment remains strong, with a robust pipeline, although macroeconomic pressures have caused delays in project timelines [51][54]

Financial Data and Key Metrics Changes - For Q4 2025, total revenue grew 13% to $751 million, with organic growth of 6.6% and contributions from M&A adding over five percentage points to the top line [31] - Full year 2025 revenues surpassed $3 billion, up 21% year over year, driven by organic growth of 10.1% and strong M&A contributions [4][32] - Adjusted EBITDA grew 19.2% to $967 million, with an adjusted EBITDA margin of 31.7%, slightly down from 32.2% in the prior year [4][32] - Adjusted earnings per share increased 9.5% to $1.96 [4][32] Business Line Data and Key Metrics Changes - The property business experienced a modest decline, particularly in Q4 where pricing dropped 25%-35% on large accounts [16][17] - The casualty practice had a strong year, with significant price increases in high-hazard lines exceeding 10% [18] - Delegated authority revenue doubled over the last two years to $1.4 billion, now representing 47% of total revenue [8] Market Data and Key Metrics Changes - The insurance market is currently experiencing significant volatility, with rapid shifts in pricing and market sentiment [5][6] - The company noted a trend of admitted carriers stepping back into certain segments, particularly on smaller accounts [16] - The overall market conditions are expected to lead to continued pricing pressures in property for 2026 [17][36] Company Strategy and Development Direction - The company is focused on a diversified platform to deliver innovative solutions, emphasizing the importance of specialized expertise and top talent [6][10] - A three-year restructuring program, Project Empower, is being launched to improve efficiency and create headroom for additional investment [10][35] - The company has authorized a $300 million share repurchase program, reflecting confidence in its long-term outlook and addressing current valuation dislocation [12][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth in property despite near-term pricing pressures, citing factors like increased demand for E&S solutions [17] - The company anticipates high single-digit organic revenue growth for 2026, reflecting current market conditions and continued investment in talent and technology [36] - Management emphasized the importance of AI as an enabler to improve client service and operational efficiency [46][47] Other Important Information - The company completed five acquisitions in 2025, contributing to significant diversification and expansion of its product offerings [9][25] - The board approved an 8% increase in the quarterly dividend for Class A stockholders, now at $0.13 per share [33][34] Q&A Session Summary Question: What is the driver behind the organic growth guidance for 2026? - Management noted that continued property pricing declines and moderating casualty growth are expected to impact organic growth, leading to a high single-digit guidance for 2026 [40][41] Question: How does the company view AI's impact on the brokerage sector? - Management views AI as an ally that will enhance efficiency and client service, emphasizing the importance of relationships and expertise over technology alone [46][47] Question: Can you discuss the share repurchase program and its relation to M&A? - Management clarified that the share repurchase program does not diminish their commitment to M&A, which remains a top priority for capital allocation [56][58]

Revenue Performance - Total revenue for Q4 2025 increased by 13.2% year-over-year to $751.2 million, compared to $663.5 million in Q4 2024[4] - Full year 2025 total revenue grew by 21.3% to $3,051.1 million, compared to $2,515.7 million in 2024[4] - Total revenue for Q4 2025 was $751,213,000, an increase from $663,529,000 in Q4 2024, representing a growth of 13.2%[51] - Total revenue for the year ended December 31, 2025, was $3,051,126, representing a 21.2% increase from $2,515,710 in 2024[68] Net Income and Earnings - Net income for Q4 2025 decreased by 26.6% year-over-year to $31.2 million, compared to $42.6 million in Q4 2024[4] - Full year 2025 net income decreased by 6.9% to $214.2 million, compared to $229.9 million in 2024[4] - Adjusted net income for the year 2025 was $548,219,000, compared to $493,521,000 in 2024, reflecting a year-over-year increase of 11.1%[52] - Net income for 2025 was $214,157,000, a decrease from $229,913,000 in 2024[56] - Net income margin for Q4 2025 was 4.2%, down from 6.4% in Q4 2024, while the full year net income margin was 7.0%, compared to 9.1% in 2024[51] Earnings Per Share - Adjusted diluted earnings per share for Q4 2025 remained flat at $0.45, compared to $0.45 in Q4 2024[17] - Adjusted diluted earnings per share for the year 2025 was $1.96, an increase from $1.79 in 2024[52] - Adjusted diluted earnings per share for the year ended December 31, 2025, was $1.96, an increase of 9.5% from $1.79 in 2024[70] Operating Performance - Adjusted EBITDAC for Q4 2025 grew by 2.9% to $222.3 million, with an adjusted EBITDAC margin of 29.6%[4][16] - Adjusted EBITDAC for Q4 2025 was $222,302,000, with an adjusted EBITDAC margin of 29.6%, compared to $216,049,000 and 32.6% in Q4 2024[52] - Adjusted EBITDAC for 2025 was $966,742,000, compared to $811,223,000 in 2024, indicating a strong performance[66] - Adjusted EBITDAC for the year ended December 31, 2025, was $966,742, reflecting a growth from the previous year[73] - Credit adjusted EBITDAC for the year ended December 31, 2025, reached $1,002,197, indicating strong operational performance[73] Cash Flow and Capital Management - The company reported cash and cash equivalents of $158.3 million and outstanding debt of $3.4 billion as of December 31, 2025[21] - The company reported cash and cash equivalents of $158,322,000 as of December 31, 2025, a decrease from $540,203,000 in 2024[54] - Total cash flows provided by operating activities increased to $643,667,000 in 2025 from $514,868,000 in 2024[57] - Total cash flows used in investing activities were $834,013,000 in 2025, a decrease from $1,755,738,000 in 2024[57] - The company experienced a net change in cash of $(96,335,000) in 2025, compared to $(75,527,000) in 2024[57] Expenses and Ratios - Total operating expenses for Q4 2025 were $659,651,000, up from $554,211,000 in Q4 2024, indicating a rise of 19.0%[51] - Compensation and benefits expense ratio for Q4 2025 was 59.6%, a decrease from 61.8% in Q4 2024, while the full year ratio was 59.1%, down from 63.2% in 2024[51] - The company reported a compensation and benefits expense ratio of 59.6% for 2025, down from 61.8% in 2024[61] - The adjusted general and administrative expense ratio for 2025 was 14.0%, compared to 11.8% in 2024[64] Acquisitions and Shareholder Returns - The company executed five high-quality acquisitions in 2025, expected to add over $125 million in annualized revenue[5] - A $300 million share repurchase program was authorized to enhance shareholder returns[6] - The board declared a quarterly dividend of $0.13 per share, an increase of 8.3%, payable on March 10, 2026[22] Future Projections - The company projects an organic revenue growth rate in the high single digits for 2026[24] - The adjusted EBITDAC margin is expected to be flat to moderately down for 2026 compared to the prior year[24] - The Empower Program is expected to incur approximately $160 million in one-time charges through 2028, with anticipated annual savings of $80 million starting in 2029[23] Commissions and Fees - Total net commissions and fees for Q4 2025 reached $738,045 thousand, a 13.6% increase from $649,407 thousand in Q4 2024[19] - For the year ended December 31, 2025, total net commissions and fees were $2,994,582 thousand, reflecting a 21.9% growth compared to $2,455,671 thousand in 2024[20] - Supplemental and contingent commissions increased by 52.4% to $46,052 thousand in Q4 2025 from $30,224 thousand in Q4 2024[20] - Underwriting management revenue grew by 34.2% to $268,314 thousand in Q4 2025, up from $199,953 thousand in Q4 2024[19] - Binding authority revenue increased by 12.6% to $84,045 thousand in Q4 2025 compared to $74,617 thousand in Q4 2024[19]

Core Insights - Cooper Investors Global Equities Fund reported a portfolio return of -3.3% in Q4 2025, resulting in an annual return of 2.6% for the year, impacted by approximately 5% currency fluctuations [1] - The fund achieved an annualized return of 14.2% over the past three years, while the MSCI AC World Index had an annualized return of 21.3% during the same period [1] - The firm emphasizes a long-term investment strategy aimed at delivering risk-adjusted returns above the market [1] Company Focus: Ryan Specialty Holdings, Inc. - Ryan Specialty Holdings, Inc. (NYSE:RYAN) is highlighted as a key stock in the fund's portfolio, providing specialty products and solutions for insurance brokers, agents, and carriers [2] - As of February 10, 2026, Ryan Specialty's stock closed at $44.88 per share, with a one-month return of -10.54% and a three-month decline of 33.15% [2] - The market capitalization of Ryan Specialty Holdings, Inc. is reported at $11.868 billion [2] - The company is navigating a soft pricing environment in the property insurance sector but is expected to achieve organic revenue growth of close to 10% and EBITDA growth of over 20% in 2025, factoring in completed acquisitions [3]

Core Viewpoint - Ryan Specialty has appointed Stephen Stewart as the Chief Executive Officer of Ryan Specialty Canada Limited, expanding his role from President & CEO of Stewart Specialty Risk Underwriting [1] Group 1: Company Developments - Stephen Stewart will lead the newly formed Canadian operating and holding entity for Ryan Specialty's underwriting management businesses in Canada [1]

Group 1: Investment Performance - Vulcan Value Partners' strategies delivered positive results in 2025, with the Large Cap Composite returning -1.5% in Q4 and 7.9% YTD, and the Small Cap Composite gaining 3.2% in Q4 and 9.5% YTD [1] - The Focus Composite and Focus Plus Composite both returned 0.1% in Q4, with YTD returns of 7.1% and 6.2% respectively, while the All-Cap Composite returned 1.3% in Q4 and 10.7% YTD [1] Group 2: Market Context and Strategy - Despite overvalued markets, the firm improved its price-to-value ratios, prioritizing safety and long-term gains over short-term performance, reminiscent of the late 1990s dot-com bubble [1] - The firm is maintaining its investment discipline in light of potential overvaluation in AI-related businesses [1] Group 3: Company Focus - Ryan Specialty Holdings, Inc. - Ryan Specialty Holdings, Inc. is a specialty products and solutions provider for insurance brokers, with shares trading between $48.90 and $77.16 over the past 52 weeks, closing at $50.40 on January 22, 2026 [2] - The company generates approximately 55% of its revenue from brokerage and 45% from delegated authority businesses, with the excess and surplus brokerage market representing 26% of commercial property and casualty premiums [3] - The excess and surplus market has grown at an 11% CAGR over the past 25 years, while the admitted market has grown at a 4% CAGR, indicating a favorable growth outlook for Ryan Specialty [3] - Ryan Specialty's delegated authority business does not retain balance sheet risk, and the company has experienced organic growth at a double-digit rate for the past 15 years [3] - Current pricing headwinds in the commercial property sector are viewed as a short-term issue, with the stock price currently below its long-term intrinsic value, presenting an investment opportunity [3]