Ryan Specialty — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue grew 4.7% year-over-year to $790.0 million for the quarter, compared to $754.6 million in the prior-year period; nine-month revenue was $2,501.8 million, up 8.8% year-over-year.
• Organic revenue growth rate was 4.0% for the quarter, down from 15.0% in the prior-year period; nine-month organic growth was 7.3%, down from 11.4%.
• Net income increased 40.6% year-over-year to $88.0 million for the quarter, compared to $62.6 million; nine-month net income was $237.0 million, up 29.6%.
• Diluted earnings per share (GAAP) was $0.29 for the quarter, compared to $0.20; nine-month diluted EPS was $0.74, compared to $0.41.
• Adjusted EBITDAC grew 3.8% year-over-year to $244.4 million for the quarter, compared to $235.5 million; nine-month Adjusted EBITDAC was $803.4 million, up 7.9%.
• Adjusted EBITDAC margin was 30.9% for the quarter, down from 31.2%; nine-month margin was 32.1%, down from 32.4%.
• Adjusted net income increased 4.1% year-over-year to $137.1 million for the quarter, compared to $131.7 million; nine-month Adjusted net income was $466.6 million, up 10.0%.
• Adjusted diluted earnings per share grew 8.5% to $0.51 for the quarter, compared to $0.47; nine-month Adjusted diluted EPS was $1.75, up 15.1%.
• Compensation and benefits expense was $484.2 million (61.3% ratio) for the quarter, compared to $440.4 million (58.4% ratio); nine-month expense was $1,511.0 million (60.4% ratio).
• General and administrative expense was $107.0 million for the quarter, down 9.0% year-over-year; nine-month expense was $334.4 million, up 1.1%.
• As of September 30, 2026, cash and cash equivalents were $168.8 million, and outstanding debt principal was $3.7 billion.

Guidance and Future Outlook:

• The Company is maintaining full-year 2026 guidance for an Organic Revenue Growth Rate in the mid-single digits.
• The Company is updating full-year 2026 guidance to reflect an Adjusted EBITDAC margin that is down modestly compared to the prior year.

Business Segments and Product Lines:

• Growth in Net commissions and fees was driven by solid organic growth across all specialties, including new client wins, strong renewal retention, and expanded relationships with existing clients.
• Wholesale Brokerage revenue was $394.3 million for the quarter (50.9% of total), up 4.6% year-over-year.
• Binding Authority revenue was $93.0 million for the quarter (12.0% of total), up 3.8% year-over-year.
• Underwriting Management revenue was $287.8 million for the quarter (37.1% of total), up 5.4% year-over-year.
• The Company experienced growth across the majority of its casualty lines, offset by a moderate decline in its property portfolio.
• Revenue growth included modest amounts from acquisitions completed within the trailing twelve months ended September 30, 2026.

Market and Competitive Landscape:

• The Company operated in an increasingly challenging market environment during the third quarter.
• Management noted the quarter represented the toughest year-over-year comparison to date.
• The Company retained high levels of existing business and won significant new business despite market challenges.
• The Company continues to invest in talent, technology, AI, and data to widen its competitive moat.

Risks and Challenges:

• The Company faces a challenging market environment with tough year-over-year comparisons.
• The property portfolio experienced a moderate decline.
• Restructuring and related expenses associated with the "Empower Program" contributed to higher compensation and benefits expenses and general and administrative expenses.
• Forward-looking statements involve substantial risks and uncertainties, including variations in effective tax rates, acquisition activity expenses, and other one-time or exceptional items.

Management Commentary and Tone:

• Patrick G. Ryan, Founder and Executive Chairman, expressed pride in the performance despite the challenging market, citing disciplined expense management and the strength of the broker and underwriter team.
• Timothy W. Turner, Chief Executive Officer, highlighted the team's ability to deliver in a challenging market, retain business, and build pipelines while focusing on controlling controllable factors.
• Management emphasized continued investment in the business, including the second-largest hiring class in late 2025.
• Management stated confidence that the team will continue to perform throughout the cycle and emerge stronger.

Other Key Points:

• The Company returned $173.7 million to shareholders in the third quarter, consisting of $150.0 million in share repurchases (3.5 million shares) and $23.7 million in dividends and distributions.
• As of September 30, 2026, $150.0 million remained authorized under the share repurchase program.
• On October 29, 2026, the Board declared a quarterly dividend of $0.13 per share on Class A common stock, payable November 24, 2026, to stockholders of record as of November 10, 2026.
• A portion of the dividend ($0.06 per share) will be funded by free cash flow from Ryan Specialty, LLC.
• The Company reported $1.0 million in proceeds from the sales of a small non-subscription workers compensation book of business and a small MGU during the quarter.
• The Company incurred $23.9 million in restructuring and related expenses for the quarter, primarily related to the Empower Program.
• The Company reported $11.7 million in impairment of internally-developed software for the nine-month period.