The Baldwin Group — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue increased 31% year-over-year to $480.3 million, compared to $365.4 million in the prior-year period.
• Organic revenue growth was 6% year-over-year.
• GAAP net loss was $81.6 million, representing a net loss margin of 17%, compared to a net loss of $30.2 million (8% margin) in the prior-year period.
• Adjusted EBITDA grew 47% year-over-year to $106.9 million.
• Adjusted EBITDA margin expanded 240 basis points to 22.2% from 19.8% in the prior-year period.
• Net cash provided by operating activities was $54.2 million.
• Adjusted free cash flow increased 33% year-over-year to $55.6 million.
• For the nine months ended September 30, 2026, total revenue was $1.505 billion and Adjusted EBITDA was $360.8 million.

Guidance and Future Outlook:

• The press release does not provide specific forward guidance or future growth targets beyond the completion of the proposed merger.
• The company notes that actual results for the quarter may differ materially from the preliminary financial information presented.

Business Segments and Product Lines:

• The Baldwin Group operates as an independent insurance distribution firm serving personal and commercial clients.
• The company represents more than three million clients across the United States and internationally.
• The company utilizes a partnership strategy involving acquisitions and strategic partnerships to drive organic and inorganic growth.

Market and Competitive Landscape:

• The document does not contain specific data regarding market share, specific competitors, or detailed market trend analysis.

Risks and Challenges:

• The financial results are preliminary, unaudited, and based on estimates prepared prior to the completion of the financial statement close process.
• Forward-looking statements involve significant risks and uncertainties, including the potential for actual results to differ materially from expectations.
• Specific risks include those related to the proposed go-private transaction, regulatory approvals, and shareholder approval.
• Risks are further detailed in the company's Annual Report on Form 10-K for the year ended December 31, 2025.

Management Commentary and Tone:

• Management highlights the 31% total revenue growth and 47% growth in Adjusted EBITDA as key performance indicators.
• The company emphasizes the expansion of Adjusted EBITDA margins and the increase in Adjusted free cash flow as indicators of operational performance.
• Management references the "$3B/30 Catalyst Program" designed to accelerate automation, business process optimization, and artificial intelligence.

Other Key Points:

• On September 14, 2026, the Company entered into a definitive merger agreement for an all-cash take-private transaction led by an investor group including Sequence Holdings and DFO Management, LLC.
• Under the agreement, stockholders will receive $32.50 per share in cash.
• The transaction is expected to close during the first quarter of 2027, subject to shareholder approval, regulatory approvals, and other customary closing conditions.
• Upon completion, the Company's common stock will cease trading on Nasdaq and the Company will become privately held.
• As of September 30, 2026, cash and cash equivalents were $188.6 million.
• The Company had $289.1 million of borrowing capacity under its revolving credit facility.
• Total debt stood at $2.465 billion as of September 30, 2026.