RYAN Ryan Specialty Holdings, Inc. - 10-K

ITEM 1A. RISK FACTORS

Our operating and financial results are subject to various risks and uncertainties. The risks and uncertainties

described below are not the only ones we face. Additional risks and uncertainties that we are unaware of, or that we

currently believe are not material, may also become important factors that affect us. If any of the following risks occur, our

business, financial condition, operating results, and prospects could be materially and adversely affected. Because of the

following factors, as well as other factors affecting our businesses, financial condition, operating results, and prospects,

past financial performance should not be considered a reliable indicator of future performance, and investors should not

rely on historical trends to anticipate trends or results in the future.

Risk Factors Summary

Our business is subject to numerous risks and uncertainties and you should carefully consider all the

information presented in the section entitled “Risk Factors” in this Annual Report. Some of the principal risks related to our

business include the following:

Risks Related to Our Business and Industry

• our failure to successfully recruit and retain our senior management team, revenue producers, or other key

employees and to successfully plan and prepare for the succession of our senior management team;

• the potential loss of our relationships with insurance carriers or our clients, failure to maintain good

relationships with insurance carriers or clients, becoming dependent upon a limited number of insurance

carriers or clients or the failure to develop new insurance carrier and client relationships;

• errors in, or ineffectiveness of, our underwriting models and the impact to our reputation and relationships

with insurance carriers, retail brokers, and agents;

• failure to maintain, protect, and enhance our brand or prevent damage to our reputation;

• the unsatisfactory evaluation of potential acquisitions or the failure to successfully integrate acquired

businesses and/or introduce new products, lines of business, and/or markets;

• our inability to successfully recover upon experiencing a disaster or other interruption in business

continuity;

• the impact of third parties that perform key functions of our business operations acting in ways that harm

our business;

• failure to maintain the valuable aspects of our Company’s culture;

• the cyclicality of, and the economic conditions in, the markets in which we operate and conditions that

result in reduced insurer capacity or a migration of business away from the E&S market and into the

Admitted market;

• a reduction in insurer capacity to adequately and appropriately underwrite risk and provide coverage;

• our international operations expose us to various international risks, including required compliance with

evolving legal and regulatory obligations, that are different, and at times more burdensome, than those set

forth in the United States;

• changes in interest rates and deterioration of credit quality could reduce the value of our cash balances or

interest income;

• significant competitive pressures in each of our businesses;

• decreases in premiums or commission rates set by insurers, or actions by insurers seeking repayment of

commissions;

• the impact if the contracts that govern our MGAs or MGUs are terminated or changed;

• a decrease in the amount of supplemental or contingent commissions we receive;

• our inability to collect our receivables;

• disintermediation within the insurance industry and shifts away from traditional insurance markets;

• impairment of goodwill and intangibles;

Table of Contents

• the challenges with properly assessing, adapting to, and managing the adoption and use of artificial

intelligence and other evolving technologies;

• the inability to maintain strong growth and generate sufficient revenue to maintain profitability;

• the loss of clients or business as a result of consolidation within the retail insurance brokerage industry;

• the inability to achieve the intended results of our restructuring program;

• significant investment in our growth strategy and whether expectation of internal efficiencies are realized;

• the unavailability or inaccuracy of our clients’ and third parties’ data for pricing and underwriting insurance

policies;

• the competitiveness and cyclicality of the reinsurance industry;

• the occurrence of natural or man-made disasters;

• the impact on our operations and financial condition from the effects of a pandemic or the outbreak of a

contagious disease and resulting governmental and societal responses;

• the economic and political conditions of the countries and regions in which we operate;

• the failure, or take-over by the FDIC, of one of the financial institutions that we use;

• our inability to respond quickly to operational or financial problems or promote the desired level of

cooperation and interaction among our offices;

• our international operations expose us to various international risks, including exchange rate fluctuations;

• changing expectations over corporate responsibility and stakeholder interests;

Risks Related to Intellectual Property, Data Privacy, and Cybersecurity

• the impact of breaches in security that cause significant system or network disruption or business

interruption;

• the impact of improper disclosure of confidential, personal, or proprietary data, misuse of information by

employees or counterparties, or as a result of cyber incidents and cyberattacks;

• our inability to gain internal efficiencies through the application of technology, or effectively apply

technology in driving value for our clients, or the failure of technology and automated systems to function

or perform as expected;

• the impact of infringement, misappropriation, or dilution of our intellectual property;

• the impact of the failure to protect our intellectual property rights, or allegations that we have infringed on

the intellectual property rights of others;

Risks Related to Legal and Regulatory Issues

• the impact of evolving governmental regulations, legal proceedings, and governmental inquiries related to

our business;

• being subject to E&O claims, as well as other contingencies and legal proceedings;

• our handling of client funds and surplus lines taxes that exposes us to complex fiduciary regulations;

• changes in tax laws or regulations;

• decreased commission revenues due to proposed tort reform legislation;

• the impact of regulations affecting insurance carriers;

Risks Related to Our Indebtedness

• our outstanding debt potentially adversely affecting our financial flexibility and subjecting us to contractual

restrictions and limitations that could significantly affect our ability to operate and manage our business;

• not being able to generate sufficient cash flow to service all of our indebtedness and being forced to take

other actions to satisfy our obligations under such indebtedness;

• being affected by further changes in the U.S. based credit markets;

Table of Contents

• changes in our credit ratings;

Risks Related to Our Organizational Structure and our Class A Common Stock

• risks related to the payments required by our Tax Receivable Agreement;

• risks relating to our organizational structure that could result in conflicts of interests between the LLC

Unitholders, the Ryan Parties, and the holders of our Class A common stock; and

• risks relating to our share repurchase program.

These and other risks are more fully described below. If any of these risks actually occurs, our business,

financial condition, results of operations, cash flows, and prospects could be materially and adversely affected.

Risks Related to Our Business and Industry

If we fail to successfully recruit and retain our management team, revenue producers, including wholesale brokers and

underwriters, and other key employees, and plan and prepare for the succession of our senior management, we may not

be able to execute our business strategy.

Our success depends on our ability to attract, retain, and develop skilled and experienced personnel. There is

significant competition within the insurance industry and from businesses outside the industry for exceptional employees,

especially in key positions. If we are not able to successfully attract, retain, develop, and motivate our employees, and plan

and prepare for the succession of our senior management, our business, financial results, and reputation could be materially

and adversely affected. Our success and future performance depend in part upon the continued services of our executive

officers, senior management, and other highly skilled personnel. In 2024, we effectuated our management transition plan

involving our Chief Executive Officer, President, and Chief Financial Officer. Effective management of future succession

planning, including succession plans for our current CEO and other senior management positions, is important for the

continued success of the Company. Inadequate succession planning, and the execution thereof, could have an adverse

effect on our business, results of operations, financial condition, and liquidity.

The loss of personnel who manage important client and carrier relationships for our products could adversely

affect our operations and execution of our future growth strategies. Competition for revenue producers including wholesale

brokers and underwriters is intense. Our ability to recruit and retain these professionals is critical to the success of our

business. We cannot provide assurance that any of the wholesale brokers or underwriters who leave our firm will comply

with the provisions of their employment and stock grant agreements that preclude them from competing with us or

soliciting our clients and employees, or that these provisions will be enforceable under applicable law or sufficient to

protect us from the loss of any business.

The law governing non-compete agreements and other forms of restrictive covenants varies from state to state

with some states permitting very limited use of non-compete and other restrictive covenants and others allowing greater

degrees of enforceability of the types of restrictive covenants, and forfeiture and clawback clauses, we utilize. At the

federal level, the future legal landscape regarding non-competes is uncertain. In April 2024, the Federal Trade Commission

(“FTC”) finalized a rule broadly prohibiting the use of non-compete clauses, with limited exceptions for existing non-

competes for senior executives. Although the rule was set to take effect in September 2024, federal courts enjoined its

enforcement shortly before implementation. Following the 2024 U.S. presidential election, the new presidential

administration halted appeals of these rulings and signaled a departure from the prior administration’s position. As a result,

the FTC’s finalized rule broadly prohibiting most non-compete clauses is not currently in effect, and its future remains

uncertain. As a result, there is ongoing uncertainty regarding the future enforceability of non-compete agreements with

employees in the United States. If future legislation, judicial decisions, or regulatory actions further limit or invalidate the

use of non-compete agreements, our ability to prevent former employees from using their knowledge of our business and

operations to compete with us could be limited.

Our business may be harmed if we lose our relationships with retail brokers, insurance carriers, or other trading

partners, we fail to maintain good relationships with retail brokers, insurance carriers, or other trading partners, we

become dependent upon a limited number of retail brokers, insurance carriers, or other trading partners or we fail to

develop new retail broker, insurance carrier, or other trading partner relationships.

Our business typically enters into contractual relationships with insurance carriers, retail brokers, and other

trading partners that are sometimes unique to us, but nonexclusive and terminable on short notice by either party for any

reason. In many cases, insurance carriers also have the ability to amend the terms of our agreements unilaterally on short

notice.

Table of Contents

Insurance carriers may be unwilling to allow us to sell their existing or new insurance products or may amend

our agreements with them, for a variety of reasons, including for competitive or regulatory reasons or because of a

reluctance to distribute their products through our platform. Insurance carriers may decide to rely on their own internal

distribution channels, choose to exclude us from their most profitable or popular products, or decide not to distribute

insurance products in individual markets in certain geographies or altogether. The termination or amendment of our

relationship with an insurance carrier could reduce the variety of insurance products we offer or our ability to place

coverage for certain risks for which we do not have alternative markets. We also could lose a source of, or be paid reduced

commissions for, future sales and could lose renewal commissions for past sales. Our business could also be harmed if we

fail to develop new insurance carrier relationships.

Similarly, retail brokers and other trading partners could develop their own wholesale distribution channels or

choose to work with wholesale distributors other than us. This could reduce the number of submissions we receive which

could result in reduced commissions. Our business could also be harmed if we fail to develop relationships with new retail

brokers or other sources of business.

Historically, wholesale brokers and other wholesale distributors have been involved in a very high percentage

of risks placed in the E&S market. In addition to the potential for retail brokers developing their own wholesale distribution

channels or choosing to work with wholesale distributors other than us, retail brokers often might prefer to place business

directly with insurance carriers, without the involvement of a wholesaler. There is a risk to our business that insurance

carriers will accommodate the retail broker’s preference to place business directly with the E&S insurer rather than through

a wholesale broker or other wholesale distributor.

In the future, we may have a reduced number of insurance carriers or retail brokers with which we trade or

derive a greater portion of our commissions and fees from a more concentrated number of insurance carriers, retail brokers

or other trading partners as our business and the insurance industry evolve. The top five insurance carriers (excluding all

Lloyd’s syndicates combined) for which we place business represented an aggregate of 20.6% and 20.9% of our revenues

for the years ended December 31, 2025 and 2024, respectively. The top five retail brokers with which we place business

represented 25.2% and 26.9% of our revenues for the years ended December 31, 2025 and 2024, respectively. Should our

dependence on a smaller number of insurance carriers, retail brokers or other trading partners increase, whether as a result

of the termination of relationships, consolidation or otherwise, we may become more vulnerable to adverse changes in our

relationships with these counterparties, particularly in states where we offer insurance products from a relatively small

number of insurance carriers or where a small number of insurance companies or retail brokers dominate a geographic area,

lines of business, or market segment. The termination, amendment or consolidation of our relationships with our insurance

carriers could harm our business, financial condition, and results of operations.

We depend, to a large extent, on our relationships with all of our trading partners and our reputation for high-

quality advice and solutions. If a trading partner is not satisfied with our services, it could cause us to incur additional costs

and impair profitability. Many of our clients are businesses that band together in industry groups or trade associations and

actively share information among themselves about the quality of service they receive from their vendors. Accordingly,

poor service to one client may negatively impact our relationships with multiple other clients or potential clients.

Moreover, if we fail to meet our contractual obligations, we could be subject to legal liability or loss of client relationships.

If our underwriting models contain errors or are otherwise ineffective or our underwriters do not demonstrate sufficient

skill, our reputation and relationships with insurance carriers, retail brokers, and agents could be harmed.

Our ability to attract insurance carriers, retail brokers, and agents to our MGAs and MGUs, programs, and

binding authority operations is significantly dependent on our ability to effectively evaluate risks in accordance with

insurer underwriting guidelines. Our business depends significantly on the accuracy and success of our underwriting

models and the skill of our underwriters. To conduct this evaluation, we use proprietary underwriting models and third-

party tools. If our underwriters do not perform with the expected level of skill, any of the models or tools that we use are

ineffective or contain programming or other errors, the data provided by clients or third parties is incorrect or stale, or if we

are unable to obtain accurate data from clients or third parties our pricing and approval process could be negatively

affected, resulting in potential violations of underwriting authority and loss of business. This could damage our reputation

and relationships with insurance carriers, retail brokers, and agents which could harm our business, financial condition, and

results of operations.

Table of Contents

Damage to our reputation could have a material adverse effect on our business and we are subject to economic and

reputational harm if companies with which we do business engage in negligent, grossly negligent, misleading, or

fraudulent behavior.

Our ability to attract and retain clients, employees, investors, insurer trading partners, and other capital is highly

dependent upon the subjective external perceptions of our level of service, trustworthiness, business practices, financial

condition, and other qualities. Negative perceptions or publicity regarding these matters could erode trust and confidence

and damage our reputation among existing and potential clients, which in turn could make it difficult for us to maintain

existing clients and attract new ones. Damage to our reputation due to a failure to proactively communicate to stakeholders

changes in strategy and business plans could further affect the confidence that our clients, regulators, creditors, investors,

insurer trading partners, and other parties that are important to our business have in us, which could have a material adverse

effect on our business, ability to raise capital, financial condition, and results of operations.

As part of our role in distributing insurance products and services, we rely upon trusted trading partners to

provide risk-bearing insurance capital, collect and transmit funds, and to provide other products and services. If one or

more of these trading partners, whether negligently or intentionally, fails to provide the risk-bearing insurance capital as

agreed, mishandles or misappropriates funds, or otherwise fails to properly provide products and services as expected, we

face potential liability for damages, and reputational harm, which could harm our business, financial condition, and results

of operations. During 2022, the Company placed certain insurance policies through a trading partner with the

understanding that the policies were underwritten by highly rated insurance capital. The policies were instead underwritten

by an insurance carrier that was not considered satisfactory by the Company or the insureds. The Company committed to

securing replacement coverage, to the extent commercially available, from highly rated insurance companies on terms

substantially similar to the insurance coverage originally agreed upon. As a result of this unusual circumstance, the

Company incurred losses arising from the original placements. For additional discussion, see “ Note 15 , Commitments and

Contingencies ” in the footnotes to the consolidated financial statements in this Annual Report.

Our business depends on a strong brand, and any failure to maintain, protect, and enhance our brand would hurt our

ability to grow our business, particularly in new markets where we have limited brand recognition.

We have developed a strong brand that we believe has contributed significantly to the success of our business.

Maintaining, protecting, and enhancing the Ryan Specialty brand is critical to growing our business, particularly in new

markets where we have limited brand recognition. If we do not successfully build and maintain a strong brand, our business

could be materially harmed. Maintaining and enhancing the quality of our brand may require us to make substantial

investments in areas such as marketing, community relations, outreach, and employee training. We actively engage in

advertisements, targeted promotional mailings and email communications, and engage on a regular basis in public relations

and sponsorship activities. These investments may be substantial and may fail to encompass the optimal range of

traditional, online, and social advertising media to achieve maximum exposure and benefit to the brand.

Our business strategy includes plans to continue to make acquisitions and we face risks associated with the evaluation

of potential acquisitions, the integration of acquired businesses, and the introduction of new products, lines of business,

geographies, and markets.

As part of our business strategy, we have made, and intend to continue to make, acquisitions, including

acquisitions in lines of business that are natural adjacencies. The success of our acquisition strategy is dependent upon our

ability to identify appropriate acquisition targets, negotiate transactions on favorable terms, complete transactions, have

adequate access to financing on acceptable terms, and successfully integrate them into our existing businesses.

If acquisitions are made, we may not realize the anticipated benefits of such acquisitions, including, but not

limited to, revenue growth, operational efficiencies, or expected synergies. Many of the businesses and assets that we have

acquired or may acquire have unaudited historical financial statements or records that have been, or will be, prepared by

the management of such companies and have not been, or will not be, independently reviewed or audited. We cannot be

certain that the financial statements or records of companies or assets we have acquired or may acquire would not, or will

not, be materially different if such statements were independently reviewed or audited. If such statements were to be

materially different, the tangible and intangible assets we acquire may be more susceptible to impairment charges, which

could have a material adverse effect on us.

In addition, many of the businesses that we acquire and develop will likely have smaller scales of operations

prior to integration into the Company. If we are not able to manage the growing complexity of these businesses, including

improving, refining, or revising our systems and operational practices, enlarging the scale and scope of the businesses, and

integrating the new business into our culture and operations, our business may be adversely affected. Many of these

Table of Contents

companies may not have robust controls, procedures, and policies typical of a U.S. based public company, in particular,

with respect to the effectiveness of cyber and information security practices and incident response plans, which creates a

risk following acquisition and prior to the completion of integration.

From time to time, either through acquisitions or internal development, we enter new distribution channels,

geographies, or lines of business or offer new products and services within existing lines of business. These new

distribution channels, lines of business, or new products and services present additional risks, particularly in instances

where the markets are not fully developed. Such risks include the investment of significant time and resources to recruit,

hire, and retain personnel and develop the products, the risks involved with the management of the integration process and

development of new processes and systems to accommodate complex programs, and the risk of financial guarantees and

additional liabilities associated with these efforts.

Failure to manage these risks arising from acquisitions or development of new businesses could materially and

adversely affect our business, results of operations, and financial condition.

Our inability to successfully recover should we experience a disaster or other business continuity problem could cause

material financial loss, loss of human capital, regulatory actions, reputational harm, or legal liability.

Our operations are dependent upon our ability to protect our personnel, offices, and technology infrastructure

against damage from business continuity events that could have a significant disruptive effect on our operations. Should we

experience a local or regional disaster or other business continuity problem, such as a security incident or attack, a natural

disaster, climate event, terrorist attack, civil unrest, pandemic, power loss, telecommunications failure, or other natural or

man-made disaster, our continued success will depend, in part, on the availability of our personnel and office facilities, and

the proper functioning of computer systems, telecommunications, and other related systems and operations. In events like

these, while our operational size, the multiple locations from which we operate, and our existing backup systems provide us

with some degree of flexibility, we still can experience near-term operational challenges in particular areas of our

operations. We could potentially lose access to key executives, personnel, or client data or experience material adverse

interruptions to our operations or delivery of services to our clients in a disaster recovery scenario. A disaster on a

significant scale or affecting certain of our key operating areas within or across regions, or our inability to successfully

recover should we experience a disaster or other business continuity problem, could materially interrupt our business

operations and cause material financial loss, loss of human capital, regulatory actions, reputational harm, damaged client

relationships, or legal liability. We have certain disaster recovery procedures in place and insurance to protect against such

contingencies. However, such procedures may not be effective and any insurance or recovery procedures may not continue

to be available at reasonable prices and may not address all such losses.

We rely on third parties to perform key functions of our business operations enabling our provision of services to our

clients. These third parties may act in ways that could harm our business.

We rely on third parties, and in some cases subcontractors, to provide services, data, and information, such as

technology, information security, funds transfers, data processing, support functions, and administration that are critical to

the operations of our business. These third parties include correspondents, agents and other brokerage and intermediaries,

insurance markets, data providers, plan trustees, transaction processors, IT service providers, payroll service providers,

benefits administrators, software and system vendors, health plan providers, and providers of human resources, among

others. As we do not fully control the actions of these third parties, we are subject to the risk that their decisions, actions, or

inactions may adversely impact us, and replacing these service providers could create significant delay and expense. A

failure by third parties to comply with service-level agreements or regulatory or legal requirements in a high-quality and

timely manner, particularly during periods of our peak demand for their services, could result in economic and reputational

harm to us. In addition, we face risks when we transition from in-house functions to third-party support functions and

providers that there may be disruptions in service or other unintended results that may adversely affect our business

operations. These third parties face their own technology, operating, business, and economic risks, and any significant

failures by them, including the improper use or disclosure of our confidential client, employee, or company information,

could cause harm to our business and reputation. An interruption in or the cessation of service by any service provider as a

result of systems failures, cybersecurity incidents, capacity constraints, financial difficulties, or for any other reason could

disrupt our operations, impact our ability to offer certain products and services, and result in contractual or regulatory

penalties, liability claims from clients or employees, damage to our reputation, and harm to our business.

If we cannot maintain the valuable aspects of our Company’s culture as we grow, our business may be harmed.

We believe that our Company’s culture, including our management philosophy, has been a critical component

of our success and that our culture creates an environment that drives and perpetuates our overall business strategy. We

Table of Contents

have invested substantial time and resources in building our team and we expect to continue to hire aggressively and

increase our employee population as we expand in both the United States and internationally. As we grow and mature as a

public company and internationally, we may find it difficult to maintain valuable aspects of our Company’s culture.

Failure to preserve the valuable aspects of our culture could harm our future success, including our ability to

retain and recruit personnel, innovate and operate effectively, and execute on our business strategy. If we are unsuccessful

in recruiting, hiring, training, managing and integrating new employees, or retaining our existing employees or if we fail to

preserve the valuable aspects of our Company’s culture, it could materially impair our ability to service and attract new

clients, all of which would materially and adversely affect our business, financial condition, and results of operations.

We may be negatively affected by the cyclicality of and the economic conditions in the markets in which we operate.

Premium pricing within the commercial property and casualty insurance markets in which we operate has

historically been cyclical based on the underwriting capacity of the insurance carriers operating in this market, general

economic conditions, and other social, economic, and business factors. In a period of decreasing insurance capacity or

higher than typical loss ratios across an insurance segment or segments, insurance carriers may raise premium rates. This

type of market frequently is referred to as a “hard” market. In a period of increasing insurance capacity or lower than

typical loss ratios across an insurance segment or segments, insurance carriers may reduce premium rates and business

might migrate away from the E&S market (where we conduct most of our business) and into the Admitted market. This

type of market frequently is referred to as a “soft” market. Because our commissions usually are calculated as a percentage

of the gross premium charged for the insurance products that we place, and most of our business is transacted in the E&S

market, our revenues are affected by the cyclicality of the market. The frequency and severity of natural disasters, other

catastrophic events (such as hurricanes, wildfires, and pandemics), social inflation, and reductions or increases in insurance

capacity can affect the timing, duration, and extent of industry cycles for many of the product lines we distribute. It is very

difficult to predict the severity, timing, or duration of these cycles.

Economic downturns, volatility, or uncertainty in some markets may cause changes to insurance coverage

decisions by our clients, which may result in reductions in the growth of new business or reductions in existing business. If

our clients become financially less stable, enter bankruptcy, liquidate their operations, or consolidate our revenues and

collectability of receivables could be adversely affected. An increase in the number of insolvencies associated with an

economic downturn, especially insolvencies in the insurance industry, could adversely affect our business through the loss

of clients and insurance markets and by hampering our ability to place insurance business or by exposing us to E&O

claims.

If insurance intermediaries or insurance companies experience liquidity problems or other financial difficulties,

we could encounter delays in payments owed to us, which could harm our business, financial condition, and results of

operations.

Our business, and therefore our results of operations and financial condition, may be adversely affected by conditions

that result in reduced insurer capacity.

Our results of operations depend on the continued capacity of insurance carriers to adequately and appropriately

underwrite risk and provide coverage, which depends in turn on those insurance companies’ ability to procure reinsurance.

Capacity could also be reduced by insurance companies failing or withdrawing from writing certain coverages that we offer

to our clients. We have no control over these matters. To the extent that reinsurance becomes less widely available or

significantly more expensive, we may not be able to procure the amount or types of coverage that our clients desire and the

coverage we are able to procure for our clients may be too expensive or more limited than is acceptable.

Our international operations expose us to various international risks that could adversely affect our business.

Our operations are conducted in numerous locations and geographies including the United States, the United

Kingdom, Europe, Canada, India, and Singapore. Accordingly, we are subject to regulatory, legal, economic, and market

risks associated with operating in, and sourcing from, foreign countries, including the potential for:

• difficulties in staffing and managing our foreign offices, including due to unexpected wage inflation or job

turnover, and the increased travel, infrastructure, legal, regulatory, and compliance costs and risks

associated with multiple international locations;

• extensive and conflicting regulations in the countries in which we do business;

• imposition of investment requirements or other restrictions by foreign governments;

Table of Contents

• longer payment cycles;

• greater difficulties in collecting accounts receivable;

• insufficient demand for our services in foreign jurisdictions;

• our ability to execute effective and efficient cross-border sourcing of services on behalf of our clients;

• the reliance on or use of third parties to perform services on our behalf;

• disparate tax regimes;

• more expansive legal rights of employees, including specifically those applicable to our international

operations;

• variations in protection of intellectual property and other legal rights;

• restrictions on the import and export of technologies; and

• trade tariffs and/or barriers.

Our performance can be affected by global economic conditions, as well as geopolitical tensions and other

circumstances with global reach. In recent years, concerns about the global economic outlook have adversely affected

economic markets and business conditions in general. Geopolitical tensions, such as Russia’s incursion into Ukraine,

tension among the United States, China, and other trading partners, conflict in the Middle East, supply chain issues,

economic sanctions, the volatility of oil prices, and heightened concerns about cyberattacks have, in general, adversely

affected economic markets and business conditions. Inflation and hyper-inflation have resulted in market volatility and

variable interest rates, increasing global tensions and uncertainty for global commerce, and instability in the global capital

markets and evolving U.S. tariff policy on goods imported from many countries have the potential to do the same.

Sustained or worsening of these and other global economic conditions and increasing geopolitical tensions may negatively

impact our business, financial condition, and results of operations.

Changes in interest rates and deterioration of credit quality could reduce the value of our cash balances or interest

income and adversely affect our financial condition or results.

Operating funds available for corporate use were $158.3 million and $540.2 million at December 31, 2025 and

2024, respectively, and are reported in Cash and cash equivalents. Funds held on behalf of clients and insurers were

$1,426.1 million and $1,140.6 million at December 31, 2025 and 2024, respectively, are reported in Fiduciary cash and

receivables on the Consolidated Balance Sheets, and are held in fiduciary bank accounts. We may experience reduced

investment earnings on our cash and short-term investments of fiduciary and operating funds within Fiduciary investment

income and Interest expense, net, respectively, if the yields on investments deemed to be low risk fall below their current

levels. On the other hand, higher interest rates could result in a higher discount rate used by investors to value our future

cash flows thereby resulting in a lower valuation of the Company. In addition, during times of stress in the banking

industry, counterparty risk can quickly escalate, potentially resulting in substantial losses for us as a result of our cash or

other investments with such counterparties, as well as substantial losses for our clients and the insurance companies with

which we work

We face significant competitive pressures in our business.

Wholesale brokerage, binding authority, underwriting management, and other intermediary and underwriting

and claims administration specialties are highly competitive. We believe that our ability to compete is dependent on the

quality of our people, service, product features, price, commission structure, financial strength, and the ability to access

certain insurance markets. We compete with a large number of national, regional, and local organizations. Additionally, the

industry in which we operate is dynamic and creates opportunities for, and pressure from, our competitors and trading

partners. For example, certain emerging industry trends in 2025 created additional opportunities for retail brokers to place

property coverage directly. New or increased competition as a result of these matters or regulatory or other industry

developments could harm our business, financial condition, and results of operations.

Underwriting Management and Binding Authority are dependent upon contracts between us and the insurance

carriers. Those contracts can, in many cases, be terminated by the insurance carrier with minimal advance notice.

Moreover, upon expiration of the contract term, insurance carriers may choose to let those agreements lapse or request

changes in the terms of the program, including the scope of our delegated authority or the amount of commission we

receive, which could reduce our revenues from the program.

Table of Contents

Poor risk selection, failure to maintain robust pricing models, and failure to monitor claims activity could

adversely affect our ability to renew contracts or have the opportunity to develop new products with new or existing

insurance carriers. The termination of the services of our Specialties, or a change in the terms of any of these programs,

could harm our business and operating results, including the opportunity to receive contingent commissions.

Because the revenue we earn on the sale of certain insurance products is based on premiums and commission rates set

by insurers, any decreases in these premiums or commission rates, or actions by insurers seeking repayment of

commissions, could result in revenue decreases or expenses to us.

We derive revenue from commissions on the sale of insurance products to our retail and wholesale broker

clients that are paid by the insurance carriers from whom the insureds purchase insurance. In certain circumstances,

payments for the sale of insurance products are processed directly by insurance carriers, and therefore we may not receive a

payment that is otherwise expected in any particular period until after the end of that period, which can adversely affect our

ability to budget for significant future expenditures. Additionally, insurance carriers or their affiliates may under certain

circumstances seek the chargeback or repayment of commissions as a result of policy lapse, surrender, cancellation,

rescission, default, or upon other specified circumstances. As a result of the chargeback or repayment of commissions, we

may incur a reduction in revenue in a particular period related to revenue previously recognized in a prior period and

reflected in our financial statements. Such a reduction could have a material adverse effect on our results of operations and

financial condition, particularly if the reduction in revenue is greater than the amount of related revenue retained by us.

The commission rates are set by insurance carriers and are based on the premiums that the insurers charge. The

potential for changes in premium rates is significant, due to competition and pricing cyclicality in the insurance market. In

addition, the insurance industry has been characterized by periods of intense price competition due to excessive

underwriting capacity and periods of favorable premium levels due to shortages of capacity. Capacity could also be

reduced by insurers failing or withdrawing from writing certain coverages that we offer our clients. Commission rates and

premiums can change based on prevailing legislative, economic, and competitive factors that affect insurance carriers and

brokers. These factors, which are not within our control, include the capacity of insurance carriers to place new business,

competition from other brokers or distribution channels, underwriting and non-underwriting profits of insurance carriers,

consumer demand for insurance products, the availability of comparable products from other insurance carriers at a lower

cost and the availability of alternative insurance products, such as government benefits and self-insurance products, to

consumers. We cannot predict the timing or extent of future changes in commission rates or premiums or the effect any of

these changes will have on our business, financial condition, and results of operations.

If the contracts that govern our MGAs or MGUs are terminated or changed, our business and operating results could be

harmed.

In our Underwriting Management Specialty, we act as an MGA or an MGU for insurance carriers that have

given us authority to underwrite and bind coverage on their behalf. Our Underwriting Management Specialty generated

34.2 % and 26.3 % of our consolidated total net commissions and fees for the years ended December 31, 2025 and 2024,

respectively. Our MGAs and MGUs are governed by contracts between us and the insurance carriers. These contracts

establish, among other things, the underwriting and pricing guidelines for the programs, the scope of our authority, and our

commission rates for policies that we underwrite under the programs. Some of these contracts can be terminated by the

insurance carrier with minimal advance notice. Moreover, upon expiration of the contract term, insurance carriers may

request changes in the terms of the programs, including the commissions we receive, which could reduce our revenues

from the programs. The termination of any of the contracts that govern our MGAs or MGUs, or a change in the terms of

any of these programs, could harm our business and operating results. We cannot be assured that lost insurance capacity

can be replaced or that the contracts that govern our MGAs or MGUs will not be terminated or modified in the future.

Moreover, we cannot be assured that we will be able to replace any of the capacity of our MGAs or MGUs that are

terminated with a similar program with other insurance carriers.

Supplemental and contingent commissions we receive from insurance carriers are less predictable than standard

commissions, and any decrease in the amount of these kinds of commissions we receive could adversely affect our

results of operations.

Approximately five percent of our Net commissions and fees consists of supplemental and contingent

commissions we receive from insurance carriers. Supplemental and contingent commissions are paid by insurance carriers

based upon the profitability, volume, and/or growth of the business placed with such companies during the prior year. If,

due to the current economic environment, or for any other reason, we are unable to meet insurance carriers’ profitability,

volume, or growth thresholds, or insurance carriers increase their estimate of loss reserves (over which we have no

Table of Contents

control), actual supplemental and contingent commissions we receive could be less than anticipated, which could adversely

affect our business, financial condition, and results of operations.

If we are unable to collect our receivables, our results of operations and cash flows could be adversely affected.

Our business depends on our ability to obtain payment from our clients or insurer trading partners of the

amounts they owe us for the work we perform. As of December 31, 2025, our receivables for our commissions and fees

were approximately $489.0 million , or approximately 16.0% of our total annual revenues, and portions of our receivables

are increasingly concentrated in certain businesses and geographies.

Macroeconomic or political conditions could result in financial difficulties for our clients and insurer trading

partners, which could cause clients to delay payments to us, request modifications to their payment arrangements that could

increase our receivables balance or default on their payment obligations to us.

Our current market share may decrease as a result of disintermediation within the insurance industry, including

increased competition from insurance companies, technology companies, and the financial services industry, as well as

the shift away from traditional insurance markets.

The insurance intermediary business is highly competitive and we actively compete with numerous firms for

clients and insurance company trading partners, many of which have relationships with insurance companies or have a

significant presence in niche insurance markets that may give them an advantage over us. Other competitive concerns may

include the quality of our products and services, our pricing and the ability of some of our clients to self-insure, and the

entrance of technology companies into the insurance intermediary business. A number of insurance companies are engaged

in the direct sale of insurance, primarily to individuals, and do not pay commissions to agents or brokers. In addition, the

financial services industry may experience further consolidation, and we therefore may experience increased competition

from insurance companies and the financial services industry, as a growing number of larger financial institutions

increasingly, and aggressively, offer a wider variety of financial services, including insurance intermediary services.

In addition, there has been an increase in alternative insurance markets, such as self-insurance, captives, risk

retention groups, parametric insurance, and non-insurance capital markets. While we collaborate and compete in these

segments on a fee-for-service basis, we cannot be certain that such alternative markets will provide the same level of

insurance coverage or profitability as traditional insurance markets.

We are exposed to risk of impairment of goodwill and intangibles; specifically, our goodwill may become impaired in

the future.

As of December 31, 2025, we had $3.2 billion of goodwill recorded on our Consolidated Balance Sheets. We

perform a goodwill impairment test on an annual basis and whenever events or changes in circumstances indicate that the

carrying value of our goodwill may not be recoverable from estimated future cash flows. We review goodwill for

impairment at the reporting unit level, which coincides with the operating business. The determinations of impairment

indicators and the fair value are based on estimates and assumptions related to the amount and timing of future cash flows

and future interest rates. Such estimates and assumptions could change in the future as more information becomes

available, which could impact the amounts reported and disclosed. We completed our most recent evaluation of impairment

for goodwill as of October 1, 2025, and determined that the fair value of goodwill is not less than its carrying value. We

also consider qualitative and quantitative developments between the date of the goodwill impairment review, October 1,

and December 31 to determine if an impairment may be present. No impairments were recorded for the years ended

December 31, 2025 or 2024. A significant and sustained decline in our stock price and market capitalization, a significant

decline in our expected future cash flows, a significant adverse change in the business climate, or slower growth rates could

result in the need to perform an additional impairment analysis prior to the next annual goodwill impairment test. If we

were to conclude that a future impairment of our goodwill is necessary, we would then record the appropriate charge,

which could result in material charges that are adverse to our operating results and financial position. For additional

discussion, see “ Note 2 , Summary of Significant Accounting Policies ” and “ Note 6 , Goodwill and Other Intangible Assets ”

in the footnotes to the consolidated financial statements in this Annual Report.

As of December 31, 2025, we had $1,616.5 million of amortizable intangible assets, primarily consisting of

customer relationship intangibles acquired in connection with our acquisition of US Assure Insurance Services of Florida,

Inc. and various other acquisitions. The carrying value of these intangible assets is periodically reviewed by management to

determine if there are events or changes in circumstances that would indicate that the carrying amount may not be

recoverable. Accordingly, if there are any such circumstances that occur during the year, we assess the carrying value of

our amortizable intangible assets by considering the estimated future undiscounted cash flows generated by the

Table of Contents

corresponding business or asset group. Any impairment identified through this assessment may require that the carrying

value of related amortizable intangible assets be adjusted; however, no impairments were recorded for the years ended

December 31, 2025 or 2024.

We may use artificial intelligence in our business, and challenges with properly adopting and managing its use could

result in reputational harm, competitive harm, legal liability, and could adversely affect our results of operations.

We have begun to incorporate and intend to expand our use of artificial intelligence (“AI”) solutions into our

platform, offerings, services, and features, and these AI applications may become important in our operations over time.

For example, we are currently using generative AI to automate certain aspects of insurance submission intake and analysis

for our underwriters. Our competitors or other third parties may incorporate AI into their products and services more

quickly or more successfully than us, which could impair our ability to compete effectively and adversely affect our results

of operations.

Additionally, if the content, analyses, or recommendations that AI applications assist in producing are, or are

alleged to be, deficient, inaccurate, or biased, our business, financial condition, and results of operations may be adversely

affected and we may be subject to legal liability claims. The development of AI applications will require additional

investment in the development of proprietary systems, models, or datasets, which are complex, costly, and could impact the

results of our operations. In addition, there is no guarantee that we will be able to develop such applications and execute on

the longer-term aspects of our business strategy.

AI also presents emerging ethical issues and if our use of AI becomes controversial, we may experience brand

or reputational harm, competitive harm, or legal liability. The rapid evolution of AI, including potential government

regulation of AI, will require significant resources to develop, test, and maintain our platform, offerings, services, and

features to help us implement AI ethically in order to minimize unintended, harmful impacts.

We have experienced strong growth in recent years, and our recent growth rates may not be indicative of our future

growth. As our costs increase, we may not be able to generate sufficient revenue to achieve and, if achieved, maintain

profitability.

We have experienced strong revenue growth in recent years. In future periods, we may not be able to sustain

revenue growth consistent with recent history, or at all. We believe our revenue growth depends on a number of factors,

including, but not limited to, market factors (such as flow of business into the E&S market and insurance rates) and our

ability to:

• price our products effectively so that we are able to attract and retain clients without compromising our

profitability;

• attract new clients, successfully deploy and implement our products, obtain client renewals, and provide our

clients with excellent client support;

• attract and retain talented Producers, managers, executives, and other employees;

• increase our network of insurer trading partners;

• adequately expand, train, integrate and retain our wholesale brokers and underwriters and other new

employees, and maintain or increase our sales force’s productivity;

• enhance our information, training, and communication systems to ensure that our employees are well

coordinated and can effectively communicate with each other and clients;

• effectively integrate AI into our workstreams and operations to enhance our productivity and training;

• improve our internal control over financial reporting and disclosure controls and procedures to ensure

timely and accurate reporting of our operational and financial results;

• successfully create new distribution channels;

• successfully introduce new products and enhance existing products;

• successfully introduce our products to new markets inside and outside of the United States;

• successfully compete against larger companies and new market entrants; and

• increase awareness of our brand.

Table of Contents

We may not successfully accomplish any of these objectives and as a result, it is difficult for us to forecast our

future results of operations. Our historical growth rate should not be considered indicative of our future performance and

may decline in the future. In future periods, our revenue could grow more slowly than in recent years or decline for any

number of reasons, including those outlined above. We also expect our operating expenses to increase in future periods,

particularly as we continue to operate as a public company, continue to invest in talent and technology infrastructure, and

expand our operations internationally. If our revenue growth does not increase to offset these anticipated increases in our

operating expenses, our business, financial position, and results of operations will be harmed, and we may not be able to

achieve or maintain profitability. Furthermore, the additional expenses we will incur may not lead to sufficient additional

revenue to maintain historical revenue growth rates and profitability.

As we expand our business, it is important that we continue to maintain a high level of client service and

satisfaction. If we are not able to continue to provide high levels of client service, our reputation, as well as our business,

results of operations, and financial condition, could be adversely affected.

We may lose clients or business as a result of consolidation within, or the expansion of specialty services provided by,

the retail insurance brokerage industry.

We derive a substantial portion of our business from our relationships with retail insurance brokerage firms.

There has been considerable consolidation in the retail insurance brokerage industry, driven primarily by the acquisition of

small- and mid-size retail insurance brokerage firms by larger brokerage firms, financial institutions, or other organizations.

We expect this trend to continue. As a result, we may lose all or a substantial portion of the business we obtain from retail

insurance brokerage firms that are acquired by other firms who have their own wholesale insurance brokerage operations or

established relationships with other wholesale insurance brokerage firms. In addition, retail insurance brokerages may

decide to create or expand their ability to provide specialty services. To date, our business has not been materially affected

by consolidation among retail insurance brokers or by the specialty services currently provided directly by certain of the

retail brokers with which we do business. However, we cannot be assured that we will not be affected by industry

consolidation or specialty expansion at the retail level that occurs in the future, particularly if any of our significant retail

insurance brokerage clients are acquired by retail insurance brokers with their own wholesale insurance brokerage

operations or preferred relationships with wholesalers other than Ryan Specialty.

Our inability to achieve the intended results of our restructuring program, Empower, could impact our businesses,

financial condition, and results of operations.

As part of our corporate restructuring plans, we expect to incur one-time write-offs and other restructuring

charges and generate annual benefits in the future. There can be no assurance that any restructuring activities that we

undertake will achieve the cost savings, operating efficiencies, or other expected benefits. Our ability to successfully

manage and execute the Empower program and realize the expected savings and benefits in the amounts and at the times

anticipated is important to our business success. Failure to achieve the goals of our plans, which could result from our

inability to successfully execute organizational change and business transformation plans, changes in global or regional

economic conditions, changes in the insurance markets in which we compete, unanticipated costs or charges, and loss of

key or other personnel, could have a material adverse effect on our businesses, financial condition, and results of

operations. Internal restructurings come with an inherent amount of transition risk and can require a significant amount of

time and focus from management and other employees, which may divert attention from our normal operations and could

have a material adverse effect on our business, results of operations and financial condition.

Our growth strategy may involve opening new offices, entering new product lines or establishing new distribution

channels, and will involve hiring new brokers and underwriters, which will require substantial investment by us and

may adversely affect our results of operations and cash flows in a particular period.

Our ability to grow organically depends in part on our ability to open new offices, enter new product lines,

establish new distribution channels, and recruit new wholesale brokers and underwriters. We can provide no assurances

that we will be successful in any efforts to open new offices, develop de novo product lines, establish new distribution

channels, or hire new wholesale brokers or underwriters. The costs of opening a new office, entering a new product line,

establishing a new distribution channel, and hiring the necessary personnel to staff the office can be substantial, and we

often are required to commit to multi-year, non-cancellable lease agreements. The cost of investing in new offices, brokers,

and underwriters may affect our results of operations and cash flows in a particular period. Moreover, we cannot assure you

that we will be able to recover our investment in new offices, brokers, or underwriters or that these offices, brokers, and

underwriters will achieve profitability.

Table of Contents

We rely on data from our clients and third parties for pricing and underwriting insurance policies, the unavailability or

inaccuracy of which could limit the functionality of our products and disrupt our business.

We use data, technology, and intellectual property licensed from unaffiliated third parties in certain of our

products, including insurance industry proprietary information that we license from third parties, and we may license

additional third-party technology and intellectual property in the future. Any errors or defects in this third-party technology

and intellectual property could result in errors that could harm our brand and business. In addition, licensed technology and

intellectual property may not continue to be available on commercially reasonable terms, or at all. Also, should any third-

party refuse to license its proprietary information to us on the same terms that it offers to our competitors, we could be

placed at a significant competitive disadvantage.

Further, although we believe that there are currently adequate replacements for the third-party technology and

intellectual property we presently use, the loss of our right to use any of this technology and intellectual property could

result in delays in producing or delivering affected products until equivalent technology or intellectual property is

identified, licensed or otherwise procured, and integrated. Our business would be disrupted if any technology and

intellectual property we license from others or functional equivalents of this software were either no longer available to us

or no longer offered to us on commercially reasonable terms. In either case, we would be required either to attempt to

redesign our products to function with technology and intellectual property available from other parties or to develop these

components ourselves, which would result in increased costs and could result in delays in product sales and the release of

new product offerings. Alternatively, we might be forced to limit the features available in affected products. Any of these

results could harm our business, results of operations, and financial condition.

The reinsurance industry is highly competitive and cyclical and certain subsidiaries and entities in which we have

invested may not be able to compete effectively in the future.

The reinsurance industry is highly competitive and has historically been cyclical. Through our indirect

investment in Geneva Re, Ltd. (“Geneva Re”), we compete with numerous reinsurance companies throughout the world.

Many of these competitors may have greater financial, marketing, and management resources available to them, including

greater revenue and scale, have established long-term and continuing business relationships throughout the reinsurance

industry and may have higher financial strength ratings, which can be a significant competitive advantage for them.

Soft market conditions could lead to a significant reduction in reinsurance premium rates and less favorable

contract terms which could negatively affect the return on our investment in Geneva Re and the commissions earned by

Ryan Re. The supply of reinsurance is also related to the level of reinsured losses and the level of industry capital which, in

turn, may fluctuate in response to changes in rates of return earned in the reinsurance industry. As a result, the reinsurance

business historically has been a cyclical industry characterized by periods of intense price competition due to excess

underwriting capacity, as well as periods when shortages of capacity permitted improvements in reinsurance rate levels and

terms and conditions.

The low interest rate environment observed in previous years and ease of entry into the reinsurance sector has

led to increased competition from non-traditional sources of capital, such as insurance-linked funds or collateralized special

purpose insurers, predominantly in the property catastrophe excess reinsurance market. This alternative capital provides

collateralized property catastrophe protection in the form of catastrophe bonds, parametric reinsurance, industry loss

warranties and other risk-linked products that facilitate the ability of non-reinsurance entities, such as hedge funds and

pension funds, to compete for property catastrophe excess reinsurance business outside of the traditional treaty market.

This alternative capacity is also expanding into lines of business other than property catastrophe reinsurance.

The occurrence of natural or man-made disasters could result in declines in business and increases in claims that could

adversely affect our financial condition, results of operations, and cash flows.

We are exposed to various risks arising out of natural disasters, including earthquakes, hurricanes, fires, floods,

landslides, tornadoes, typhoons, tsunamis, hailstorms, climate related events or weather patterns, and pandemic health

events, as well as man-made disasters, including acts of terrorism, military actions, cyberterrorism, explosions, and

biological, chemical, or radiological events. The continued threat of terrorism and ongoing military actions may cause

significant volatility in global financial markets, and a natural or man-made disaster could trigger an economic downturn in

the areas directly or indirectly affected by the disaster. These consequences could, among other things, result in a decline in

business and increased claims from those areas. They could also result in reduced underwriting capacity of our insurance

carriers, making it more difficult for our agents to place business. Disasters also could disrupt public and private

infrastructure, including communications and financial services, which could disrupt our normal business operations. Any

increases in loss ratios due to natural or man-made disasters could impact our supplemental or contingent commissions,

Table of Contents

which are primarily driven by growth and profitability metrics. A natural or man-made disaster also could disrupt the

operations of our counterparties or result in increased prices for the products and services they provide to us. Finally, a

natural or man-made disaster could increase the incidence or severity of E&O claims against us.

Pandemics or other outbreaks of contagious diseases and measures undertaken to mitigate their spread could materially

adversely affect our business, financial condition, and results of operations and those of our customers, suppliers, and

other trading partners.

The global outbreak of the COVID-19 pandemic and measures to mitigate the spread of COVID-19 caused

unprecedented disruptions to the global and U.S. economies and significantly impacted the global supply chain. Future

pandemics and other outbreaks of contagious diseases could result in similar or worse impacts and significant business and

operational disruptions, including business closures, supply chain disruptions, travel restrictions, stay-at-home orders, and

limitations on the availability of workforces. If significant portions of our workforce are unable to work effectively,

including because of illness or quarantines or from the impacts of any potential future pandemics and other outbreaks of

contagious diseases, our business could be materially adversely affected. It is possible that future pandemics and other

outbreaks of contagious diseases could cause disruption in our customers’ businesses and cause delay or limit the ability of

our customers to perform, including in making timely payments. Future pandemics and other outbreaks of contagious

diseases could impact capital markets, which may impact our, and our customers’, financial position. Future pandemics and

other outbreaks of contagious diseases may also have the effect of exacerbating several of the other risks we face as

discussed in this Annual Report on Form 10-K.

The economic and political conditions of the countries and regions in which we operate could have an adverse impact

on our business, financial condition, operating results, liquidity, and prospects for growth.

Our operations in countries undergoing political change or experiencing economic instability are subject to

uncertainty and risks that could materially adversely affect our business. These risks include the possibility we would be

subject to unstable governments and economies and potential governmental actions affecting the flow of goods, services,

and currency.

We could incur substantial losses from our cash and investment accounts if one of the financial institutions that we use

fails or is taken over by the U.S. Federal Deposit Insurance Corporation (“FDIC”).

We maintain cash and investment balances, including funds held in a fiduciary capacity, held in premium trust

accounts, at numerous depository institutions in amounts that are significantly in excess of the limits insured by the FDIC.

If one or more of the depository institutions with which we maintain significant cash balances were to fail or be taken over

by the FDIC, our ability to access these funds might be temporarily or permanently limited, and we could face material

liquidity problems and potential material financial losses.

Our offices are geographically dispersed across the United States, the United Kingdom, Europe, Canada, India,

Australia, the United Arab Emirates, and Singapore, and we may not be able to respond quickly to operational or

financial problems or promote the desired level of cooperation and interaction among our offices, which could harm

our business and operating results.

As of December 31, 2025, we had 129 offices across the United States, the United Kingdom, Europe, Canada,

Australia, the United Arab Emirates, India, and Singapore. Some of these offices are under the day-to-day management of

individuals who previously owned an acquired business or played a key role in the development of an office. These

individuals may not report negative developments that occur in their businesses to management on a timely basis because

of, among other things, the potential damage to their reputation, the risk that they may lose all or some of their operational

control, the risk that it could impair financial earnouts or incentive compensation, or the risk that they may be personally

liable to us under the indemnification provisions of the agreements pursuant to which their businesses were acquired.

Moreover, there can be no assurances that management will be able to independently detect adverse developments that

occur in particular offices. We review the performance of our offices on a monthly basis, maintain frequent contact with all

of our offices and work with our offices on an annual basis to prepare a detailed operating budget for revenue production

by office. Although we believe that these and other measures have allowed us generally to detect and address known

operational issues that might have a material effect on our operating results, they may not detect all issues in time to permit

us to take appropriate corrective action. Our business and operating results may be harmed if our management does not

become aware, on a timely basis, of negative business developments, such as the possible loss of an important client,

threatened litigation or regulatory action, or other developments.

Table of Contents

In addition, our ability to grow organically will require the cooperation of the individuals who manage our

offices. We cannot provide assurance that these individuals will cooperate with our efforts to improve the operating results

in offices for which they are not directly responsible. Our dispersed operations may impede our integration efforts and

organic growth, which could harm our business and operating results.

Our non-U.S. operations expose us to exchange rate fluctuations and various risks that could impact our business.

Approximately 6% and 5% of our revenues for the years ended December 31, 2025 and 2024, respectively,

were generated outside of the United States. We are exposed to currency risk from the potential changes between the

exchange rates of the US Dollar, British Pound, Euro, Swedish Krona, Canadian Dollar, Indian Rupee, Singapore Dollar ,

and other currencies. Exchange rate movements may change over time, and could have an adverse impact on our financial

results and cash flows reported in U.S. dollars. Our U.S. operations earn revenue and incur expenses primarily in U.S.

dollars. Due to fluctuations in foreign exchange rates, we are subject to economic exposure, as well as currency translation

exposure on the net operating results of our operations. Because our non-U.S. based revenue is exposed to foreign

exchange fluctuations, exchange rate movement can have an impact on our business, financial condition, results of

operations, and cash flow. For additional discussion, see “ Quantitative and Qualitative Disclosures about Market Risk ”

included elsewhere in this Annual Report.

Scrutiny and changing expectations from the federal and state governments, governmental organizations, investors,

clients, and our employees with respect to our corporate responsibility and stakeholder interest practices may impose

additional costs on us or expose us to new or additional risks.

There is ongoing focus, including from the federal and state governments, governmental organizations,

investors, employees, and clients, on corporate responsibility and stakeholder interest issues such as environmental

stewardship, climate change, diversity and workplace inclusion, pay equity, racial justice, workplace conduct,

cybersecurity, and data privacy. There are divergent views on these topics which increase the risk that any action or lack

thereof with respect to our perceived corporate responsibility and stakeholder interest practices will be viewed negatively.

In March 2025, the federal government issued an executive order titled “Ending Illegal Discrimination and

Restoring Merit-Based Opportunity,” rescinding prior directives that promoted diversity, equity, and inclusion (“DEI”)

initiatives. This order signals a shift in regulatory priorities, directing agencies to evaluate DEI practices for consistency

with federal nondiscrimination laws. The evolving regulatory environment could materially affect us, though the scope and

approach to enforcement remains uncertain.

There can be no certainty that we will manage such issues successfully, or that we will successfully meet

governmental or societal expectations as to the proper approach to corporate responsibility. Negative public perception,

adverse publicity, or negative comments in social media, including as a result of actions taken by companies we acquire

before the acquisition, could damage our reputation or harm our relationships with regulators and the communities in

which we operate if we do not, or are not perceived to, adequately address these issues. Any harm to our reputation could

impact employee engagement and retention and the willingness of our trading partners to do business with us. If we do not

successfully manage expectations across these varied interests, it could erode trust, generate litigation, and impact our

reputation, which could result in harm to our business, results of operations, and financial condition.

In addition, a variety of organizations have developed ratings to measure the performance of companies on

topics of corporate responsibility or stakeholder interests, and the results of these assessments are widely publicized.

Investments in funds that specialize in companies that perform well in such assessments remain popular, and major

institutional investors have publicly emphasized the importance of such measures to their investment decisions.

Unfavorable ratings of our Company or our industry, as well as omission of inclusion of our stock into investment funds

oriented toward various corporate responsibility and stakeholder interests may lead to negative investor sentiment and the

diversion of investment to other companies or industries, which could have a negative impact on our stock price.

Risks Related to Intellectual Property, Data Privacy, and Cybersecurity

We rely on the efficient, uninterrupted, and secure operation of complex information technology systems and networks

to operate our business. Any significant system or network disruption due to a breach in the security of our information

technology systems could have a negative impact on our reputation, regulatory compliance status, operations, sales, and

operating results.

While we manage some of our information technology systems and some are outsourced to third parties, all

information technology systems are potentially vulnerable to damage, breakdown, or interruption from a variety of sources,

Table of Contents

including but not limited to cyberattacks, ransomware, malware, security breaches, theft or misuse, unauthorized access or

improper actions by insiders or employees, sophisticated nation-state and nation-state-supported actors, natural disasters,

terrorism, war, telecommunication, and electrical failures or other compromise. We are at risk of attack by a growing list of

adversaries through increasingly sophisticated methods. Because the techniques used to infiltrate or sabotage systems

change frequently, we may be unable to anticipate these techniques or implement adequate preventative measures.

We have experienced, and may in the future experience, whether directly or indirectly through third parties,

cybersecurity incidents. We have been, and expect to continue to be, the target of fraudulent calls, emails, and other forms

of fraudulent activities and have experienced security breaches. However, to date, such security breaches have not had a

material impact on our business strategy, results of operations, or financial condition. The use of AI applications may result

in cybersecurity incidents that implicate the personal data of end users of such applications. Furthermore, any confidential

information, including sensitive information, that is disclosed to a third-party generative AI platform could be leaked or

disclosed to others. Any such cybersecurity incidents could adversely affect our reputation and results of operations.

If we fail to make requisite notifications within the timelines required under applicable laws it could result in

violations, fines, penalties, litigation, proceedings, or enforcement action. In addition, it is possible that state regulators

may initiate investigations of the Company in connection with a breach, that the Company could be subject to civil

penalties, resolution agreements, monitoring or similar agreements, or third-party claims against the Company, including

class-action lawsuits. Moreover, incidents could occur with respect to our systems or the systems of our third-party service

providers, as well as any other data breaches or other misuse or disclosure of our participant or other data, could lead to

improper use or disclosure of Company information, including personally identifiable information or protected health

information obtained from our participants, and information from employees. Any such breach or misuse of data could

harm our reputation, lead to legal exposure, divert management attention and resources, increase our operating expenses

due to the employment of consultants and third-party experts and the purchase of additional security infrastructure, and/or

subject us to liability, resulting in increased costs and loss of revenue. In addition, any remediation efforts we undertake

may not be successful. The perception that we do not adequately protect the privacy of information of our employees or

clients could inhibit our growth and damage our reputation.

If we are unable to maintain and upgrade our system safeguards, we may incur unexpected costs and certain

aspects of our systems may become more vulnerable to unauthorized access. While we select our clients and third-party

vendors carefully, cyberattacks and security breaches at a client or vendor could adversely affect our ability to deliver

products and services to its customers and otherwise conduct its business and could put our systems at risk. Additionally,

we are an acquisitive organization and the process of integrating the information systems of the businesses we acquire is

complex and exposes us to additional risk as we might not adequately identify weaknesses in an acquisition targets’

information systems, which has in the past and could in the future expose us to costs and/or unexpected liabilities or make

our own systems more vulnerable to attack. Additionally, our public announcement of the signing or closing of an

acquisition could increase the possibility of threat actors targeting the companies that we will or have acquired. These types

of breaches affecting us, our clients, or our third-party vendors could result in intellectual property or other confidential

information being lost or stolen, including client, employee, or company data. In addition, we may not be able to detect

breaches in our information technology systems or assess the severity or impact of a breach in a timely manner.

We have implemented various measures to manage our risks related to system and network security and

disruptions, but a security breach or a significant and extended disruption in the functioning of our information technology

systems could damage our reputation and cause us to lose clients, adversely impact our operations and operating results,

and require us to incur significant expense to address and remediate or otherwise resolve such issues. In order to maintain

the level of security, service, compliance, and reliability that our clients and laws of various jurisdictions require, we will

be required to make significant additional investments in our information technology systems on an ongoing basis.

Improper disclosure of confidential, personal, or proprietary data, whether due to human error, misuse of information

by employees or counterparties, or as a result of cyberattacks, could result in regulatory scrutiny, legal liability or

reputation damage, which in turn could have an adverse effect on our reputation, regulatory compliance status,

operations, sales, and operating results.

We maintain confidential, personal, and proprietary information relating to our Company, our employees, and

our clients. This information includes personally identifiable information, protected health information, and financial

information. We are subject to data privacy laws and regulations relating to the collection, use, retention, security, and

transfer of this information. The inability to adhere to or to successfully implement processes and controls in response to

these laws, rules, and regulations could impair our reputation, restrict our ability to operate in certain jurisdictions, or result

Table of Contents

in additional legal liability, which in turn could adversely impact our reputation, regulatory compliance status, operations,

and operating results.

Our business performance and growth plans could be negatively affected if we are not able to gain internal efficiencies

through the application of technology or effectively apply technology in facilitating operations and driving value for our

clients through innovation and technology-based solutions. Conversely, investments in internal systems or innovative

product offerings may fail to yield sufficient return to cover their investments and the attention of the management team

could be diverted.

Our success depends, in part, on our ability to develop and implement technology-based solutions, including AI

applications, that anticipate or keep pace with rapid and continuing changes in technology, operational needs, industry

standards, and client preferences. We may not be successful in anticipating or responding to these developments on a

timely and cost-effective basis. The effort to gain technological expertise, develop new technologies in our business, keep

pace with insurtech, and achieve internal efficiencies through technology require us to incur significant expenses and

attract talent with the necessary skills. There is no assurance that our technological investments in internal systems and

digital distribution platforms will achieve the intended efficiencies, and such unrealized savings or benefits could affect our

results of operations. There is no assurance that our technological investments will properly facilitate our operational needs,

and any failure of technology and automated systems to function or perform as expected could harm our operations,

business, and financial condition. Additionally, if we cannot offer new technologies as quickly as our competitors, if our

competitors develop more cost-effective technologies, or if our ideas are not accepted in the marketplace, it could have a

material adverse effect on our ability to obtain and complete client engagements. Innovations in software, cloud computing,

or other technologies that alter how our services are delivered could significantly undermine our investment decisions if we

are slow to innovate or unable to take advantage of these developments.

We are continually developing and investing in innovative and novel service offerings that we believe will

address needs that we identify in the markets. Nevertheless, for those efforts to produce meaningful value, we are reliant on

a number of other factors, some of which are outside of our control. For example, starting a de novo MGU or insurance

program takes a certain amount of investment before we are able to secure insurance carriers to support the underwriting,

which is a precursor to entering the marketplace. Even after securing insurance carriers, we may not be able to compete

effectively with other products in the marketplace on pricing, terms, and conditions in order to be successful. The

development and implementation of these offerings also may divert the attention of our management team.

Infringement, misappropriation, or dilution of our intellectual property could harm our business.

We believe our trademarks have significant value and that these and other intellectual property are valuable

assets that are critical to our success. Unauthorized uses or other infringement of our trademarks or service marks could

diminish the value of our brand and may adversely affect our business. Effective intellectual property protection may not

be available in every market. Failure to adequately protect our intellectual property rights could damage our brand and

impair our ability to compete effectively. Some of our brand names are not registered, and we rely on common-law

trademark protection to protect this intellectual property. Even where we have effectively secured statutory protection for

our trademarks and other intellectual property, our competitors and other third parties may misappropriate our intellectual

property, and in the course of litigation, such competitors and other third parties might attempt to challenge the breadth of

our ability to prevent others from using similar marks or designs. If such challenges were to be successful, less ability to

prevent others from using similar marks or designs may ultimately result in a reduced distinctiveness of our brand in the

minds of consumers. Defending or enforcing our trademark rights, branding practices, and other intellectual property could

result in the expenditure of significant resources and divert the attention of management, which in turn may materially and

adversely affect our business and operating results, even if such defense or enforcement is ultimately successful. Even

though competitors occasionally may attempt to challenge our ability to prevent infringers from using our marks, we are

not aware of any challenges to our right to use any of our brand names or trademarks.

Failure to protect our intellectual property rights, or allegations that we have infringed on the intellectual property

rights of others, could harm our reputation, ability to compete effectively, and financial condition.

To protect our intellectual property rights, we rely on a combination of trademark laws, copyright laws, trade

secret protection, confidentiality agreements, and other contractual arrangements with our affiliates, employees, clients,

strategic partners, and others, as well as internal policies and procedures regarding our management of intellectual

property. However, the protective steps that we take may be inadequate to deter misappropriation of our proprietary

information. In addition, we may be unable to detect the unauthorized use of, or take appropriate steps to enforce, our

intellectual property rights. Further, we operate in many foreign jurisdictions and effective trademark, copyright, and trade

Table of Contents

secret protection may not be available in every country or jurisdiction in which we offer our services. Additionally, our

competitors may develop products similar to our products that do not conflict with our related intellectual property rights.

Failure to protect our intellectual property adequately could harm our reputation and affect our ability to compete

effectively.

In addition, to protect or enforce our intellectual property rights, we may initiate litigation against third parties,

such as infringement suits or interference proceedings. Third parties may assert intellectual property rights claims against

us, which may be costly to defend, could require the payment of damages, and could limit our ability to use or offer certain

technologies, products, or other intellectual property. Any intellectual property claims, with or without merit, could be

expensive, take significant time, and divert management’s attention from other business concerns. Successful challenges

against us could require us to modify or discontinue our use of technology or business processes where such use is found to

infringe or violate the rights of others, or require us to purchase licenses from third parties, any of which could adversely

affect our business, financial condition, and operating results.

Risks Related to Legal and Regulatory Issues

Our businesses are subject to governmental regulation, which could reduce our profitability, limit our growth, or

increase competition.

Our businesses are subject to legal and regulatory oversight throughout the world, including by U.S. state

regulators and under the U.K. Companies Act and the rules and regulations promulgated by the Financial Conduct

Authority (“FCA”), the Foreign Corrupt Practices Act, the Bribery Act of 2010 in the U.K., the U.K. Economic Crime and

Corporate Transparency Act 2023, and a variety of other laws, rules, and regulations addressing, among other things,

licensing, data privacy and protection, anti-money laundering, sanctions, wage and hour standards, employment and labor

relations, anti-competition, fraud prevention, and anti-corruption. This legal and regulatory oversight could reduce our

profitability or limit our growth by: increasing the costs of legal and regulatory compliance; limiting or restricting the

products or services we sell, the markets we serve or enter, the methods by which we sell our products and services, the

prices we can charge for our services, or the form of compensation we can accept from our clients, insurance carriers, and

third parties; or by subjecting our businesses to the possibility of legal and regulatory actions or proceedings.

We are experiencing and reacting to substantial geopolitical and regulatory changes on a real-time basis, and the

extent of such changes is not currently known. Changes in the regulatory scheme, or even changes in how existing

regulations are interpreted, could have an adverse impact on our results of operations by limiting revenue streams or

increasing costs of compliance. For instance, the European Union’s General Data Protection Regulation (the “EU GDPR”)

imposes a range of compliance obligations and increased financial penalties for noncompliance. Accordingly, we may

experience significant fines and penalties if we fail to comply with the EU GDPR. Following the implementation of the EU

GDPR, other jurisdictions have sought to amend, or propose legislation to amend, their existing data protection laws to

align with the requirements of the EU GDPR with the aim of obtaining an adequate level of data protection to facilitate the

transfer of personal data to most jurisdictions from the EU. Additionally, some countries have also proposed sweeping new

data protection laws. For example, Canada is proposing significant changes to its federal privacy law. Accordingly, the

challenges we face in the EU also apply to other jurisdictions that adopt laws similar to the EU GDPR or regulatory

frameworks of equivalent complexity. On November 19, 2025, the EU Commission released a Digital Omnibus Package

which is intended to amend the EU GDPR and other EU legislation. If the proposals are adopted, the rules concerning

topics such as data breach notification and online cookie tracking will be amended. Compliance and operational costs

associated with the implementation of any changes to the existing EU data protection regime may be significant.

The U.K. has implemented legislation focusing on data protection and privacy, including the U.K. GDPR and

Data Protection Act 2018, which provides for fines of up to the greater of 17.5 million British Pounds or 4% of a

company’s worldwide annual turnover from the preceding year. On June 28, 2021, the European Commission announced a

decision of adequacy concluding that the U.K. ensures an equivalent level of data protection to the EU GDPR, which

provides some relief regarding the legality of continued personal data flows from the European Economic Area (the

“EEA”) to the U.K. The EU-UK adequacy decision was extended in late 2025 to be effective until December 27, 2031. On

June 19, 2025, the Data Use and Access Act 2025 (“DUAA”) received royal assent and updated existing laws including the

U.K. GDPR, the Data Protection Act 2018, and the Privacy and Electronic Communications Regulations (“PECR”). The

changes in the DUAA are intended to simplify compliance obligations for organizations. The law, however, creates a

divergent approach to the EU GDPR on areas such as automated decision making which might increase compliance and

non-compliance costs. We cannot fully predict how the Data Protection Act and other U.K. data protection laws or

regulations might develop in the medium to longer term, nor the effects of divergent laws and guidance regarding how data

transfers to and from the U.K. will be regulated.

Table of Contents

In the United States, the California Consumer Privacy Act (the “CCPA”) came into effect in January 2020 and

has been amended several times. The CCPA, as amended by the California Privacy Rights Act, requires increased

transparency and data subject rights such as access and deletion, an ability to opt out of the “sale” or “sharing” of personal

information, and the ability to limit the disclosure of “sensitive” personal information. Following the expiration of the

CCPA’s previous business to business and employment exemptions, personal information relating to employees and

business representatives is now in scope. The CCPA also created the California Privacy Protection Agency, which is

proposing extensive new regulations concerning such matters as risk assessments, cybersecurity audits, and artificial

intelligence. Following the passage of the CCPA, multiple other U.S. states have passed their own privacy laws, although

to date most of these do not apply to the financial services industry. This, along with a growing number of other U.S. states

that are proposing new privacy laws, has created the need for multi-state compliance. We continue to monitor and adapt to

this evolving privacy landscape. There also remains the possibility that a federal privacy law will be implemented. In

addition, the National Association of Insurance Commissioners is working on a revised model privacy law that, if adopted

by the states, would further expand consumer privacy rights and regulatory requirements applicable to the insurance

industry.

In addition to data protection laws, certain countries and U.S. states are enacting cybersecurity laws and

regulations. For example, in 2017 the New York State Department of Financial Services issued cybersecurity regulations

which imposed an array of detailed security measures on covered entities. These regulations have now been amended to

add additional data security requirements on entities licensed to conduct financial services business in New York,

including, among other requirements, independent audits, annual risk assessments, reporting of all ransomware attacks, and

management’s allocation of appropriate resources to cybersecurity programs. Many other states have also adopted laws

covering data collected by insurance licensees that include security and breach notification requirements. The EU has

adopted the Digital Operations Resilience Act (“DORA”), which requires procedures to be in place to assess and oversee

information and communications technology (“ICT”) risk, protect ICT assets, report incidents, and oversee third parties.

The FCA has also recently introduced rules relating to operational resilience. All of these evolving compliance and

operational requirements impose significant costs and other burdens that are likely to increase over time, might divert

resources from other initiatives and projects, and could restrict the way services involving data are offered, all of which

may adversely affect our results of operations. In addition, the risk of noncompliance poses significant regulatory exposure,

including the potential for fines and penalties.

Certain jurisdictions have enacted data localization laws and cross-border personal data transfer laws, which

could make it more difficult to transfer information across jurisdictions (such as transferring or receiving personal data that

originates in the EU). Existing mechanisms that may facilitate cross-border personal data transfers may change or be

invalidated. For example, absent appropriate safeguards or other circumstances, the EU GDPR generally restricts the

transfer of personal data to countries outside of the EEA, such as the United States, which the European Commission does

not consider to provide an adequate level of data privacy and security. On July 10, 2023, the European Commission

adopted its adequacy decision for the EU-US Data Privacy Framework (“EU-US DPF”). The EU-US DPF imposes new

requirements and obligations on private companies and governmental agencies. The EU-US DPF was subject to a legal

challenge in September 2025, which was dismissed by the General Court of the European Union. The dismissal has

subsequently been appealed to the European Court of Justice, which demonstrates that the legal landscape applicable to

data privacy continues to remain in flux. We will need to continue to carefully monitor developments in this area to help

facilitate compliance. The risk of noncompliance poses significant regulatory risk, including the potential for fines and

penalties.

Our acquisitions of new businesses and our continued operational changes and entry into new jurisdictions and

new service offerings increase our legal and regulatory compliance complexity, as well as the type of governmental

oversight to which we may be subject. With our entry into distributing employee benefits insurance products and services,

compliance with the Health Insurance Portability and Accountability Act of 1996 has become a more significant factor for

our business.

Our continuing ability to provide insurance broking and underwriting services in the jurisdictions in which we

operate depends on our compliance with the rules and regulations promulgated from time to time by the regulatory

authorities in each of these jurisdictions. Also, we can be affected indirectly by the governmental regulation and

supervision of insurance companies. For instance, if we are providing our managing general underwriting services for an

insurer, we may have to contend with regulations that the insurer expects us to comply with.

It is expected that the insurance and financial services industries will face greater regulation regarding the use of

AI and automated decision-making that affects individual consumers. For example, the National Association of Insurance

Commissioners has proposed a model bulletin for states to adopt that would guide the insurance industry towards assuring

Table of Contents

that the use of such technologies does not cause unfair discrimination. This bulletin has been adopted by almost half of the

states in the U.S. Some states have adopted new statutes or issued their own bulletins or circular letters addressing these

risks. In addition, the EU Artificial Intelligence Act (“EU AI Act”) became effective in 2024. The EU AI Act regulates the

placing on the market, putting into service, and use of artificial intelligence systems within the EU. Certain provisions of

the EU AI Act became applicable in February 2025 and other provisions are being phased-in through August 2027. We

will need to continue to carefully monitor developments in this area to help facilitate compliance. The risk of

noncompliance poses significant regulatory exposure, including the potential for fines and penalties.

Our business is subject to risks related to legal proceedings and governmental inquiries.

We are subject to litigation, regulatory, and other governmental investigations and claims arising in the ordinary

course of our business operations. The risks associated with these matters often may be difficult to assess or quantify and

the existence and magnitude of potential claims often remain unknown for substantial periods of time. While we have

insurance coverage for some of these potential claims, others may not be covered by insurance, insurers may dispute

coverage, or any ultimate liabilities may exceed our coverage. We may be subject to actions and claims relating to the sale

of insurance or our other operations, including the suitability of such products and services. Actions and claims may result

in the rescission of such sales; consequently, our trading partners may seek to recoup commissions or other compensation

paid to us, which may lead to legal action against us. The outcome of such actions cannot be predicted and such claims or

actions could have a material adverse effect on our business, financial condition, and results of operations.

We must comply with and are affected by various laws and regulations, as well as regulatory and other

governmental investigations, that impact our operating costs, profit margins, and our internal organization and operation of

our business. The insurance industry, including the premium finance business, has been subject to a significant level of

scrutiny by various regulatory and governmental bodies, including state attorneys general offices and state departments of

insurance, concerning certain practices within the insurance industry. These practices include, without limitation, the

receipt of supplemental and contingent commissions by insurance brokers and agents from insurance companies and the

extent to which such compensation has been disclosed, the collection of broker fees, which we define as fees separate from

commissions charged directly to clients for efforts performed in the issuance of new insurance policies, bid rigging and

related matters. From time to time, our subsidiaries receive informational requests from governmental authorities.

There have been a number of revisions to existing, or proposals to modify or enact new, laws and regulations

regarding insurance agents and brokers. These actions have imposed, or could impose, additional obligations on us with

respect to our products sold. Some insurance companies have agreed with regulatory authorities to end the payment of

supplemental or contingent commissions on insurance products, which could impact our commissions that are based on the

volume, consistency, and profitability of business generated by us.

In the past, state regulators have scrutinized the manner in which insurance brokers are compensated. These

actions have created uncertainty concerning long-standing methods of compensating insurance brokers. Given that the

insurance brokerage industry has faced scrutiny from regulators in the past over its compensation practices, and the

transparency and discourse to clients regarding brokers’ compensation, it is possible that regulators may choose to revisit

the same or other practices in the future. If they do so, compliance with new regulations along with any sanctions that

might be imposed for past practices deemed improper could have an adverse impact on our future results of operations and

inflict significant reputational harm on our business.

We cannot predict the impact that any new laws, rules, or regulations may have on our business, financial

condition, and results of operations. Given the current regulatory environment and the number of our subsidiaries operating

in local markets throughout the country, it is possible that we will become subject to further governmental inquiries and

subpoenas and have lawsuits filed against us. Regulators may raise issues during investigations, examinations, or audits

that could, if determined adversely, have a material impact on us. The interpretations of regulations by regulators may

change and statutes may be enacted with retroactive impact. We could also be materially adversely affected by any new

industry-wide regulations or practices that may result from these proceedings.

Our involvement in any investigations and lawsuits would cause us to incur additional legal and other costs and,

if we were found to have violated any laws, we could be required to pay fines, damages, and other costs, perhaps in

material amounts. Regardless of final costs, these matters could have a material adverse effect on us by exposing us to

negative publicity, reputational damage, harm to client relationships, or diversion of personnel and management resources.

Table of Contents

We are subject to a number of, or may become subject to, E&O claims, as well as other contingencies and legal

proceedings which, if resolved unfavorably to us, could have an adverse effect on our results of operations.

We assist our clients with various matters, including placing insurance, advocating with respect to claims,

handling related claims, and facilitating premium financing. E&O claims against us may result in potential liability for

damages arising from these services. E&O claims could include, for example, the failure of our employees or sub-agents,

whether negligently or intentionally, to place coverage correctly or notify insurance carriers of claims on behalf of clients,

provide insurance carriers with complete and accurate information relating to the risks being insured, or properly exercise

our delegated authority to underwrite or bind coverage, issue policies or other documents, or provide proper notices to

insureds. In addition, we are subject to other types of claims, litigation, and proceedings in the ordinary course of business,

which along with E&O claimants may seek damages, including punitive damages, in amounts that could, if awarded, have

a material adverse impact on our financial position, results of operations, and cash flows. In addition to potential liability

for monetary damages, such claims or outcomes could harm our reputation or divert management resources away from

operating our business.

We have historically purchased, and continue to purchase, insurance to cover E&O claims to provide protection

against certain losses that arise in such matters. As of December 31, 2025, our E&O insurance policy tower has a $150.0

million limit per occurrence and in the aggregate, and our E&O coverage is subject to a self-insured retention of $5 million

per claim. If we exhaust or materially deplete our coverage under our E&O policy, it could have a significant adverse

financial impact. Accruals for these exposures, when applicable, have been recorded to the extent that losses are deemed

probable and are reasonably estimable. These accruals are adjusted from time to time as developments warrant and may

also be adversely affected by disputes we may have with our insurers over coverage.

Our handling of client funds and surplus lines taxes exposes us to complex fiduciary regulations.

We collect premiums from insureds and, after deducting our commissions and fees, remit the premiums to

insurers or other third-party insurance markets. We also collect funds for claims or refunds from insurers on behalf of

insureds, which are remitted to those insureds. We also collect surplus line taxes for remittance to state taxing authorities.

Consequently, at any given time, we may hold funds of our clients, insurer trading partners, or for taxes, and we are subject

to various laws, regulations, and contractual arrangements governing the holding, management, and investing of these

funds. Any loss, theft, or misappropriation of these funds, caused by employee or third-party fraud, execution of

unauthorized transactions, errors relating to transaction processing, or other events could subject us to claims brought by

insureds, insurers, and insurance intermediaries, as well as to fines, penalties, and reputational risk as a result of an alleged

fiduciary breach and adversely affect our results of operations.

While we are in possession of client, insurer trading partner, and tax funds, we may invest those funds in certain

short-term high-quality securities, such as AAA-rated money market funds as rated by Moody’s. If the institution holding

these funds experiences any illiquidity or insolvency event, we may not be able to access client funds timely, if at all,

which could significantly affect our results of operations and financial condition and expose us to additional legal and

regulatory fines or sanctions. Our handling and investment of client, insurer trading partner, and tax funds held in a

fiduciary capacity is subject to regulatory oversight and contractual agreements and the mishandling of such funds could

subject us to fines and sanctions which could significantly affect our results of operations and financial condition.

Changes in tax laws or regulations that are applied adversely to us or our clients may have a material adverse effect on

our business, cash flow, financial condition, or results of operations.

We are subject to taxation at the federal, state, and local levels in the United States and various other countries

and jurisdictions. Our future effective tax rate and cash flows could be affected by changes in the composition of earnings

in jurisdictions with differing tax rates, changes in statutory rates and other legislative changes, changes in the valuation of

our deferred tax assets and liabilities, changes in determinations regarding the jurisdictions in which we are subject to tax,

and our ability to repatriate earnings from foreign jurisdictions. From time to time, U.S. federal, state, and local and foreign

governments make substantive changes to tax rules and their application, which could result in materially higher corporate

taxes than would be incurred under existing tax law and could adversely affect our financial condition or results of

operations. We are subject to ongoing and periodic tax audits and disputes in U.S. federal and various state, local, and

foreign jurisdictions. An unfavorable outcome from any tax audit could result in higher tax costs, penalties, and interest,

thereby adversely affecting our financial condition or results of operations.

In addition, we are directly and indirectly affected by new tax legislation and regulation and the interpretation

of tax laws and regulations worldwide. Changes in such legislation, regulation, or interpretation could increase our taxes

and have an adverse effect on our operating results and financial condition. This includes potential changes in tax laws or

Table of Contents

the interpretation of tax laws arising out of the Base Erosion Profit Shifting project (“BEPS”) initiated by the Organization

for Economic Co-operation and Development (“OECD”). In July and October of 2021, the OECD/G-20 Inclusive

Framework on BEPS released statements outlining a political agreement on the general rules to be adopted for taxing the

digital economy, specifically with respect to nexus and profit allocation (Pillar One) and rules for a global minimum tax

(Pillar Two). Further details regarding implementation of these rules are expected to be finalized in the near future. These

rules, should they implemented via domestic legislation of countries or via international treaties, could have a material

impact on our effective tax rate or result in higher cash tax liabilities. There can be no assurance that our tax payments, tax

credits, or incentives will not be adversely affected by these or other initiatives.

Proposed tort reform legislation, if enacted, could decrease demand for casualty insurance, thereby reducing our

commission revenues.

Legislation concerning tort reform has been considered, from time to time, in the United States Congress and in

several state legislatures. Among the provisions considered in such legislation have been limitations on damage awards,

including punitive damages, and various restrictions applicable to class action lawsuits. Enactment of these or similar

provisions by Congress, or by states in which we sell insurance, could reduce the demand for casualty insurance policies or

lead to a decrease in policy limits of such policies sold, thereby reducing our commission revenues.

Regulations affecting insurance carriers with whom we place business affect how we conduct our operations.

Insurers are also regulated by state insurance departments for solvency issues and are subject to reserve

requirements. We cannot guarantee that all insurance carriers with which we do business comply with regulations instituted

by state insurance departments. We may need to expend resources to address questions or concerns regarding our

relationships with these insurers, diverting management resources away from operating our business.

Risks Related to Our Indebtedness

Our substantial indebtedness could adversely affect our financial flexibility and our competitive position and subject us

to contractual restrictions and limitations that could significantly affect our ability to operate.

We have a substantial amount of indebtedness under our Credit Facilities, which requires significant interest

and principal payments. As of December 31, 2025, we had, on a consolidated basis, $3,356 million aggregate principal

amount of outstanding indebtedness, including $400 million related to the 4.375% Senior Secured Notes issued under an

indenture dated February 3, 2022, an aggregate of $1,200 million related to the 5.875% Senior Secured Notes issued under

an indenture dated September 19, 2024, as supplemented on December 9, 2024, and $1,683 million of borrowings under

our Term Loan with JPMorgan Chase Bank, N.A., as administrative agent (the “Administrative Agent”) and $73 million

b orrowings under our Revolving Credit Facility. We have commitments available to be borrowed under the Revolving

Credit Facility of $1,327 million , subject to customary conditions, all of which would be secured on a first-priority basis if

borrowed. Our substa ntial indebtedness could have significant effects on our business and consequences to holders of our

debt. For example, it could:

• make it more difficult for us to satisfy our obligations with respect to our current and future indebtedness,

including the Senior Secured Notes and the indebtedness governed by our Credit Agreement;

• increase our vulnerability to adverse changes in prevailing economic, industry, and competitive conditions,

including recessions and periods of significant inflation, rising interest rate environments, and financial

market volatility;

• require us to dedicate a substantial portion of our cash flow from operations to make payments on our

indebtedness, thereby reducing the availability of our cash flow to fund working capital, capital

expenditures, acquisitions, the execution of our business strategy, and other general corporate purposes;

• limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we

operate;

• increase our cost of borrowing;

• restrict us from capitalizing on business opportunities;

• place us at a disadvantage compared to our competitors that have less indebtedness; and

Table of Contents

• limit our ability to borrow additional funds for working capital, capital expenditures, acquisitions,

indebtedness service requirements, execution of our business strategy, and other general corporate

purposes.

We expect to use cash flow from operations to meet our current and future financial obligations, including

funding our operations and acquisitions, dividend payments, indebtedness service requirements (including payments on the

Senior Secured Notes), and capital expenditures. A portion of our indebtedness is floating rate. We have experienced

significant interest rate changes, variability, and volatility in the past. Should interest rates increase in the future, we could

incur increased interest expense. The ability to make these payments depends on our financial and operating performance,

which is subject to prevailing economic, industry, and competitive conditions and to certain financial, business, economic,

and other factors beyond our control.

We are required to regularly pay interest on our debt, and to pay down debt principal, and we bear risk

associated with retiring or refinancing principal as our debt matures. Our ability to make interest and principal payments, to

refinance our debt obligations, and to fund acquisitions, internal investments, and capital expenditures is determined by our

ability to generate cash from operations, which in turn is subject to general economic, industry, financial, business,

competitive, legislative, regulatory, and other factors that are beyond our control. Interest and principal obligations reduce

our ability to use that cash for other purposes, including working capital, distributions, acquisitions, capital expenditures,

and general corporate purposes. If we cannot service our debt obligations, we may have to take actions such as selling

assets, raising equity on terms dilutive to existing stockholders, or reducing or delaying acquisitions, capital expenditures,

or investments, any of which could limit our ability to execute our business strategy.

If we cannot make scheduled payments on our indebtedness, we will be in default and holders of the Senior

Secured Notes could declare all outstanding principal and interest to be due and payable, the lenders under the Credit

Agreement governing our Term Loan and Revolving Credit Facility could foreclose against the assets securing their

borrowings, and we could be forced into bankruptcy or liquidation. Additionally, we may need to refinance all or a portion

of our indebtedness before maturity. It cannot be assured that we will be able to refinance any of our indebtedness on

commercially reasonable terms or at all. There can be no assurance that we will be able to obtain sufficient funds to enable

us to repay or refinance our debt obligations on commercially reasonable terms, or at all.

Despite current indebtedness levels, we may incur substantially more indebtedness, which could further exacerbate the

risks associated with our substantial indebtedness.

We may be able to incur significantly more indebtedness in the future, resulting in higher leverage. The

indentures that govern the Senior Secured Notes and the Credit Agreement governing our Term Loan and Revolving Credit

Facility allow us to incur additional indebtedness, including secured debt. Such additional indebtedness may be substantial.

Our ability to recapitalize, incur additional debt and take a number of other actions that are not prohibited by the terms of

the Senior Secured Notes or the Credit Agreement could have the effect of exacerbating the risks associated with our

substantial indebtedness or diminishing our ability to make payments on our debt when due, and may also require us to

dedicate a substantial portion of our cash flow from operations to payments on our other indebtedness, which would reduce

the availability of cash flow to fund our operations, working capital, acquisitions, and capital expenditures.

We may not be able to generate sufficient cash flow to service all of our indebtedness and may be forced to take other

actions to satisfy our obligations under such indebtedness, which may not be successful.

Our ability to make scheduled payments or to refinance outstanding debt obligations depends on our financial

and operating performance, which will be affected by general economic, industry, financial, business, competitive,

legislative, regulatory, and other factors beyond our control. We may not be able to maintain a sufficient level of cash flow

from operating activities to permit us to pay the principal, premium, if any, and interest on our indebtedness. Any failure to

make payments of interest and principal on our outstanding indebtedness on a timely basis would likely result in a

reduction of our credit worthiness, which would also harm our ability to incur additional indebtedness.

If our cash flows and capital resources are insufficient to fund our debt service obligations, we may be forced to

reduce or delay capital expenditures and acquisitions, sell assets, seek additional capital, or seek to restructure or refinance

our indebtedness. Any refinancing of our indebtedness could be at higher interest rates and may require us to comply with

more onerous covenants. Refinancings may not be successful and may not permit us to meet our scheduled debt service

obligations. In the absence of such cash flows and resources, we could face substantial liquidity problems and might be

required to sell material assets or operations to attempt to meet our debt service obligations. If we cannot meet our debt

Table of Contents

service obligations, the holders of our indebtedness may accelerate such indebtedness and, to the extent such indebtedness

is secured, foreclose on our assets. In such an event, we may not have sufficient assets to repay all of our indebtedness.

Our business, and therefore our results of operations and financial condition, may be adversely affected by further

changes in the U.S.-based credit markets.

Although we are not currently experiencing any limitation of access to our Revolving Credit Facility and are not

aware of any issues impacting the ability or willingness of our lenders under such Revolving Credit Facility to honor their

commitments to extend us credit, the failure of a lender could adversely affect our ability to borrow on that Revolving

Credit Facility, which over time could negatively impact our ability to consummate acquisitions or make other capital

expenditures. Tightening conditions in the credit markets could adversely affect the availability and terms of future

borrowings or renewals or refinancing.

Credit ratings downgrades would increase our financing costs and could subject us to operational risk.

If we need to raise capital in the future (for example, in order to maintain adequate liquidity, fund maturing debt

obligations, or finance acquisitions or other initiatives), credit rating downgrades would increase our financing costs, and

could limit our access to financing sources. We would also face the risk of a credit rating downgrade if we do not retire or

refinance our debt to levels acceptable to the credit rating agencies in a timely manner. Real or anticipated changes in our

credit ratings will generally affect any trading market for, or trading value of, our securities. Such changes could result

from any number of factors, including the modification by a credit rating agency of the criteria or methodology it applies to

particular issuers, a change in the agency ’ s view of us or our industry, or as a consequence of actions we take to implement

our corporate strategies. A change in our credit rating could also adversely impact our competitive position.

Our failure to raise additional capital or generate cash flows necessary to expand our operations and invest in new

technologies in the future could reduce our ability to compete successfully and harm our competitive position and

results of operations.

We may need to raise additional funds, and we may not be able to obtain additional debt or equity financing on

favorable terms or at all. If we raise additional equity financing, our security holders may experience significant dilution of

their ownership interests. If we raise additional debt financing, we may be required to accept terms that restrict our ability

to incur additional indebtedness, force us to maintain specified liquidity or other ratios, or restrict our ability to pay

dividends or make acquisitions. If we need additional capital and cannot raise it on acceptable terms, or at all, we may not

be able to, among other things:

• develop and enhance our product offerings;

• continue to expand our organization;

• hire, train, and retain employees;

• respond to competitive pressures or unanticipated working capital requirements; or

• pursue acquisition opportunities.

The agreements governing our debt, including the Senior Secured Notes, contain various covenants that impose

restrictions on us that may affect our ability to operate our business and to make payments on the Senior Secured Notes.

The indentures that govern the Senior Secured Notes and the Credit Agreement that governs our Term Loan and

Revolving Credit Agreement impose, and future financing agreements may impose, operating and financial restrictions on

our activities. In particular, the agreements limit or prohibit our ability to, among other things:

• incur additional debt and guarantees;

• pay distributions or dividends and repurchase stock;

• make other restricted payments, including, without limitation, certain restricted investments and certain

repayments of other debt;

• change the composition of our business;

• create liens;

• enter into agreements that restrict dividends from subsidiaries;

Table of Contents

• issue certain types of equity which have debt-like features;

• engage in transactions with affiliates; and

• enter into mergers, consolidations, or sales of substantially all of our assets.

The Credit Agreement also requires us to comply with a leverage-based financial maintenance covenant

applicable when our borrowings under the Revolving Credit Facility exceed 35% of the corresponding commitments from

lenders. These restrictions on our ability to operate our business could seriously harm our business by, among other things,

limiting our ability to take advantage of financing, merger and acquisition, and other corporate opportunities.

Further, various risks, uncertainties, and events beyond our control could affect our ability to comply with these

covenants. Failure to comply with any of the covenants in our existing or future financing agreements could result in a

default under those agreements and under other agreements containing cross-default or cross-acceleration provisions. Such

a default would permit lenders to accelerate the maturity of the debt under these agreements and to foreclose upon any

collateral securing the debt. Under these circumstances, we might not have sufficient funds or other resources to satisfy all

of our obligations. In addition, the limitations imposed by financing agreements on our ability to incur additional debt and

to take other actions might significantly impair our ability to obtain other financing. We cannot assure you that we will be

granted waivers or amendments to these agreements if for any reason we are unable to comply with these agreements or

that we will be able to refinance our debt on terms acceptable to us or at all. The occurrence of a default that remains

uncured or the inability to secure a necessary consent or waiver could cause our obligations with respect to our debt to be

accelerated and have a material adverse effect on our financial condition and results of operations.

Risks Related to Our Organizational Structure

We are a holding company and our sole material asset is our ownership of LLC Common Units of the LLC, and,

accordingly, we depend on distributions from the LLC to pay our taxes, satisfy our obligations under the Tax Receivable

Agreement, pay our expenses, and declare and pay dividends. The LLC’s ability to make such distributions may be

subject to various limitations and restrictions.

We are a holding company and have no material assets other than our ownership of LLC Common Units of the

LLC. As such, we have no independent means of generating revenue or cash flow, and our ability to pay our taxes, satisfy

our obligations under the Tax Receivable Agreement, pay operating expenses, or declare and pay dividends in the future

depends on the financial results and cash flows of the LLC and its subsidiaries and distributions we receive from the LLC.

There can be no assurance that the LLC and its subsidiaries will generate sufficient cash flow to distribute funds to us in the

future or that applicable state law and contractual restrictions, including negative covenants in debt instruments of the LLC

and its subsidiaries, will permit such distributions.

The LLC is treated as a partnership for U.S. federal income tax purposes and, as such, is not subject to any

entity-level U.S. federal income tax. Instead, for U.S. federal income tax purposes, taxable income of the LLC is allocated

to the LLC Unitholders, including us. Accordingly, we incur income taxes on our distributive share of any net taxable

income of the LLC. Under the terms of the LLC Operating Agreement, the LLC is obligated to make tax distributions to

the LLC Unitholders, including us. In addition to tax and dividend payments, we also incur expenses related to our

operations, including obligations to make payments under the Tax Receivable Agreement. Due to the uncertainty of various

factors, we cannot precisely quantify the likely tax benefits we will realize as a result of the LLC Common Unit exchanges

and the resulting amounts we are likely to pay out to the current or certain former LLC Unitholders, collectively, pursuant

to the Tax Receivable Agreement; however, as of December 31, 2025, the Company has recorded Tax Receivable

Agreement liabilities on the Consolidated Balance Sheets for the amount of $459.0 million associated with the payments to

be made to current and certain former LLC Unitholders subject to the Tax Receivable Agreement. Under the LLC

Operating Agreement, tax distributions shall be made on a pro rata basis among the LLC Unitholders and will be calculated

without regard to any applicable basis adjustment from which we may benefit under Section 743(b) of the U.S. Internal

Revenue Code of 1986, as amended (the “Code”).

We intend to cause the LLC to make cash distributions to the owners of LLC Common Units in amounts

sufficient to (i) fund all or part of their tax obligations in respect of taxable income allocated to them, (ii) fund our dividend

and distribution policy as approved by our Board, and (iii) cover our operating expenses, including payments under the Tax

Receivable Agreement.

However, the LLC’s ability to make such distributions may be subject to various limitations and restrictions,

such as restrictions on distributions that would violate either any contract or agreement to which the LLC or its subsidiaries

is then a party, including debt agreements, or any applicable law, or that would have the effect of rendering the LLC or its

Table of Contents

subsidiaries insolvent. For instance, the Credit Agreement and the indentures which govern the Senior Secured Notes

restrict certain of our subsidiaries’ ability to pay dividends to us, subject to certain exceptions, including if such

distributions meet certain requirements such as caps on amounts, pro forma leverage ratios, and absence of defaults

applicable to certain types of distributions, among others. If we do not have sufficient funds to pay tax or other liabilities or

to fund our operations, we may have to borrow funds, which could materially adversely affect our liquidity and financial

condition and subject us to various restrictions imposed by any such lenders. To the extent that we are unable to make

payments under the Tax Receivable Agreement, such payments generally will be deferred and will accrue interest until

paid. Nonpayment for a specified period, however, may constitute a breach of a material obligation under the Tax

Receivable Agreement and therefore accelerate payments due under the Tax Receivable Agreement, unless, generally, such

nonpayment is due to a lack of sufficient funds.

The Ryan Parties control us and their interests may conflict with or differ from the interests of our stockholders.

Each LLC Unitholder, other than the Company, has an equivalent number of shares of our Class B common

stock which are entitled to 10 votes per share. As of December 31, 2025, the Ryan Parties owned 83% of the shares of our

outstanding Class B common stock, thereby giving the Ryan Parties the ability to control the outcome of matters requiring

the approval of our stockholders, including the election of directors and significant corporate transactions, such as a merger

or other sale of our company or its assets. Even if the Ryan Parties own significantly less than a majority of the shares of

our outstanding Class A and Class B common stock, they will still have the ability to control the outcome of matters

requiring the approval of our stockholders. Because the Ryan Parties hold most of their economic ownership interest in our

business through the LLC, rather than through the public company, the Ryan Parties may have conflicting interests with

holders of shares of our Class A common stock. For example, the Ryan Parties may have different tax positions from us

which could influence their decisions regarding whether and when to dispose of assets and whether and when to incur new

or refinance existing indebtedness, especially in light of the existence of the Tax Receivable Agreement. In addition, the

structuring of future transactions may take into consideration these tax considerations or other considerations even where

no similar benefit would accrue to us.

Conflicts of interest could arise between our stockholders and the LLC Unitholders, which may impede business

decisions that could benefit our stockholders.

The LLC Unitholders, other than the Company, have the right to consent to certain amendments to the LLC

Operating Agreements, as well as to certain other matters. The LLC Unitholders may exercise these voting rights in a

manner that conflicts with the interests of our stockholders. Circumstances may arise in the future when the interests of the

LLC Unitholders conflict with the interests of our stockholders. As we control the LLC, we have certain obligations to the

LLC Unitholders that may conflict with fiduciary duties our officers and directors owe to our stockholders. These conflicts

may result in decisions that are not in the best interests of stockholders.

The Tax Receivable Agreement requires us to make cash payments to the current and certain former LLC Unitholders

in respect of certain tax benefits to which we may become entitled, and we expect that the payments we will be required

to make may be substantial.

In connection with the consummation of our IPO, we entered into a Tax Receivable Agreement with the current

and certain former LLC Unitholders. Pursuant to the Tax Receivable Agreement, we may be required to make cash

payments to the current and certain former LLC Unitholders, collectively, equal to 85% of the tax benefits, if any, that we

actually realize, or, in some circumstances, are deemed to realize, as a result of (i) certain increases in the tax basis of assets

of the LLC and its subsidiaries resulting from purchases or exchanges of LLC Common Units, (ii) certain tax attributes of

the LLC and subsidiaries of the LLC that existed prior to the IPO, (iii) certain favorable “remedial” partnership tax

allocations to which we become entitled (if any), and (iv) certain other tax benefits related to our entering into the Tax

Receivable Agreement, including tax benefits attributable to payments that we make under the Tax Receivable Agreement.

Due to the uncertainty of various factors, we cannot precisely quantify the likely tax benefits we will realize as a result of

the LLC Common Unit exchanges and the resulting amounts we are likely to pay out to the current or certain former LLC

Unitholders, collectively, pursuant to the Tax Receivable Agreement; however, as of December 31, 2025, the Company has

recorded Tax Receivable Agreement liabilities on the Consolidated Balance Sheets for the amount of $459.0 million

associated with the payments to be made to current and certain former LLC Unit holders subject to the TRA. Payments

under the Tax Receivable Agreement will be based on the tax reporting positions that we determine, which tax reporting

positions will be based on the advice of our tax advisors. Any payments made by us to the current and certain former LLC

Unitholders under the Tax Receivable Agreement will generally reduce the amount of overall cash flow that might have

otherwise been available to us. Furthermore, our future obligation to make payments under the Tax Receivable Agreement

could make us a less attractive target for an acquisition, particularly in the case of an acquirer that cannot use some or all of

Table of Contents

the tax benefits that may be deemed realized under the Tax Receivable Agreement. The payments under the Tax

Receivable Agreement are also not conditioned upon the LLC Unitholders maintaining a continued ownership interest in

the LLC.

The actual amount and timing of any payments under the Tax Receivable Agreement will vary depending upon

a number of factors, including the timing of any future exchanges, the price of shares of our Class A common stock at the

time of any future exchanges, the extent to which such exchanges are taxable, the amount and timing of our income, and

applicable tax rates.

The amounts that we may be required to pay to the current and certain former LLC Unitholders under the Tax

Receivable Agreement may be accelerated in certain circumstances and may also significantly exceed the actual tax

benefits that we ultimately realize.

The Tax Receivable Agreement provides that if (i) certain mergers, asset sales, other forms of business

combination or other changes of control were to occur or (ii) we breach any of our material obligations under the Tax

Receivable Agreement, then the Tax Receivable Agreement will terminate and our obligations, or our successor’s

obligations, to make payments under the Tax Receivable Agreement would accelerate and become immediately due and

payable. The amount due and payable in that circumstance is based on certain assumptions, including an assumption that

we would have sufficient taxable income to fully utilize all potential future tax benefits that are subject to the Tax

Receivable Agreement. We may need to incur debt to finance payments under the Tax Receivable Agreement to the extent

our cash resources are insufficient to meet our obligations under the Tax Receivable Agreement as a result of timing

discrepancies or otherwise.

As a result of a change in control or a material breach of the Tax Receivable Agreement, (i) we could be

required to make cash payments to the current and certain former LLC Unitholders that are greater than the specified

percentage of the actual benefits we ultimately realize in respect of the tax benefits that are subject to the Tax Receivable

Agreement and (ii) we would be required to make an immediate cash payment equal to the anticipated future tax benefits

that are the subject of the Tax Receivable Agreement discounted in accordance with the Tax Receivable Agreement, which

payment may be made significantly in advance of the actual realization, if any, of such future tax benefits. In these

situations, our obligations under the Tax Receivable Agreement could have a substantial negative impact on our liquidity

and could have the effect of delaying, deferring, or preventing certain mergers, asset sales, other forms of business

combination, or other changes of control. There can be no assurance that we will be able to finance our obligations under

the Tax Receivable Agreement.

Our organizational structure, including the Tax Receivable Agreement, confers certain benefits upon the current and

certain former LLC Unitholders that do not benefit the other common stockholders to the same extent as they will

benefit the current and certain former LLC Unitholders.

Our organizational structure, including the Tax Receivable Agreement, confers certain benefits upon the current

and certain former LLC Unitholders that do not benefit the holders of our common stock to the same extent. We have

entered into a Tax Receivable Agreement with the current and certain former LLC Unitholders, which provides for the

payment by us to the current and certain former LLC Unitholders, collectively, of 85% of the amount of tax benefits, if

any, that we actually realize, or in some circumstances are deemed to realize, as a result of the Tax Attributes. Due to the

uncertainty of various factors, we cannot precisely quantify the likely tax benefits we will realize as a result of future

purchases of LLC Common Units and LLC Common Unit exchanges and the resulting amounts we are likely to pay out to

the current and certain former LLC Unitholders pursuant to the Tax Receivable Agreement. Although we will retain 15%

of the amount of such tax benefits that are actually realized, this and other aspects of our organizational structure may

adversely impact the future trading market for the Class A common stock.

We may not be able to realize all or a portion of the tax benefits that are currently expected to result from the Tax

Attributes covered by the Tax Receivable Agreement and from payments made under the Tax Receivable Agreement.

Our ability to realize the tax benefits that we currently expect to be available as a result of the Tax Attributes,

the payments made pursuant to the Tax Receivable Agreement, and the interest deductions imputed under the Tax

Receivable Agreement all depend on a number of assumptions, including that we earn sufficient taxable income each year

during the period over which such deductions are available and that there are no adverse changes in applicable law or

regulations. Additionally, if our actual taxable income were insufficient or there were additional adverse changes in

applicable law or regulations, we may be unable to realize all or a portion of the expected tax benefits and our cash flows

and stockholders’ equity could be negatively affected.

Table of Contents

We will not be reimbursed for any payments made to the beneficiaries under the Tax Receivable Agreement in the event

that any purported tax benefits are subsequently disallowed by the IRS.

If the IRS or a state or local taxing authority challenges the tax basis adjustments and/or deductions that give

rise to payments under the Tax Receivable Agreement and the tax basis adjustments and/or deductions are subsequently

disallowed, the recipients of payments under the agreement will not reimburse us for any payments we previously made to

them. Any such disallowance would be taken into account in determining future payments under the Tax Receivable

Agreement and may, therefore, reduce the amount of any such future payments. Nevertheless, if the claimed tax benefits

from the tax basis adjustments and/or deductions are disallowed, our payments under the Tax Receivable Agreement could

exceed our actual tax savings, and we will not be able to recoup payments under the Tax Receivable Agreement that were

calculated on the assumption that the disallowed tax savings were available.

In certain circumstances, the LLC will be required to make distributions to the LLC Unitholders and the distributions

may be substantial.

The LLC is treated as a partnership for U.S. federal income tax purposes and, as such, is not subject to U.S.

federal income tax. Instead, taxable income is allocated to its members. The LLC is obligated to make tax distributions

quarterly to the LLC Unitholders (including us), in each case on a pro rata basis based on the LLC’s net taxable income and

without regard to any applicable basis adjustment under Section 743(b) of the Code and based on an assumed tax rate.

Funds used by the LLC to satisfy its tax distribution obligations will not be available for reinvestment in our business.

Moreover, these tax distributions may be substantial, and will likely exceed (as a percentage of the LLC’s income) the

overall effective tax rate applicable to a similarly situated corporate taxpayer. As a result, it is possible that we will receive

distributions significantly in excess of our tax liabilities and obligations to make payments under the Tax Receivable

Agreement. While our Board has approved the distribution of such cash balances as dividends on our Class A common

stock, it is not be required to do so, and may in its sole discretion choose to use such excess cash for other purposes

depending upon the facts and circumstances at the time of determination.

Unanticipated changes in effective tax rates or adverse outcomes resulting from examination of our income or other tax

returns could adversely affect our operating results and financial condition.

We are subject to income taxes in the United States, and our tax liabilities are subject to the allocation of

expenses in differing jurisdictions. Our future effective tax rates could be subject to volatility or adversely affected by a

number of factors, including:

• changes in the valuation of our deferred tax assets and liabilities;

• expected timing and amount of the release of any tax valuation allowances;

• expiration of, or detrimental changes in, research and development tax credit laws; or

• changes in tax laws, regulations, or interpretations thereof.

In addition, we may be subject to audits of our income, sales, and other transaction taxes by U.S. federal and

state authorities. Outcomes from these audits could have an adverse effect on our operating results and financial condition.

If we were deemed to be an investment company under the Investment Company Act of 1940, as amended (the “1940

Act”), applicable restrictions could make it impractical for us to continue our business as contemplated and could have

a material adverse effect on our business, financial condition, results of operations, cash flows, and prospects.

Interests in the LLC could be deemed to be “investment securities” under the 1940 Act. We conduct our

operations in a manner such that we believe we will not be deemed to be an investment company. However, if we were

deemed to be an investment company, restrictions imposed by the 1940 Act, including limitations on our capital structure

and our ability to transact with affiliates, could make it impractical for us to continue our business as contemplated and

could have a material adverse effect on our business, financial condition, results of operations, cash flows, and prospects.

Risks Related to Our Class A Common Stock

The dual-class structure of our common stock has the effect of concentrating voting control with the Ryan Parties,

which includes our founder and Executive Chairman, which limits your ability to influence the outcome of important

Table of Contents

transactions, including a change in control, and the Ryan Parties interests’ may conflict with ours or yours in the

future.

Our Class B common stock has 10 votes per share, and our Class A common stock has one vote per share. As of

December 31, 2025, the Ryan Parties, which include our founder and Executive Chairman, control approximately 77% of

the voting power of our outstanding capital stock, which means that, based on their percentage voting power the Ryan

Parties control the vote of all matters submitted to a vote of our stockholders. This control enables the Ryan Parties to

control the election of the members of the Board and all other corporate decisions. Even when the Ryan Parties cease to

control a majority of the total voting power, for so long as the Ryan Parties continue to own a significant percentage of our

common stock, the Ryan Parties will still be able to significantly influence the composition of our Board and the approval

of actions requiring stockholder approval as set forth in a Director Nomination Agreement. Accordingly, for such period of

time, the Ryan Parties will have significant influence with respect to our management, business plans and policies,

including the appointment and removal of our officers, decisions on whether to raise future capital, and amending our

charter and bylaws which govern the rights attached to our common stock. In particular, for so long as the Ryan Parties

continue to own a significant percentage of our common stock, the Ryan Parties will be able to cause or prevent a change

of control of us or a change in the composition of our Board and could preclude any unsolicited attempt to acquire us. The

concentration of ownership could deprive you of an opportunity to receive a premium for your shares of Class A common

stock as part of a sale of the Company and ultimately might affect the market price of our Class A common stock.

In addition, we entered into a Director Nomination Agreement with the Ryan Parties and one of our pre-IPO

significant equity holders that provides the Ryan Parties the right to designate (in each instance, rounded up to the nearest

whole number if necessary): (i) all of the nominees for election to our Board for so long as the Ryan Parties control, in the

aggregate, 50% or more of the total number of shares of our common stock beneficially owned by the Ryan Parties upon

completion of our IPO, as adjusted for any reorganization, recapitalization, stock dividend, stock split, reverse stock split,

or similar changes in our capitalization (the “ Original Amount ”); (ii) 50% of the nominees for election to our Board for so

long as the Ryan Parties control, in the aggregate, more than 40%, but less than 50% of the Original Amount; (iii) 40% of

the nominees for election to our Board for so long as the Ryan Parties control, in the aggregate, more than 30%, but less

than 40% of the Original Amount; (iv) 30% of the nominees for election to our Board for so long as the Ryan Parties

control, in the aggregate, more than 20%, but less than 30% of the Original Amount; and (v) 20% of the nominees for

election to our Board for so long as the Ryan Parties control, in the aggregate, more than 10%, but less than 20% of the

Original Amount, which could result in representation on our Board that is disproportionate to the Ryan Parties’ beneficial

ownership. Upon the death or disability of Patrick G. Ryan, or at such time that he is longer on the Board or actively

involved in the operations of the Company, the Ryan Parties will no longer hold the nomination rights specified in (i)

through (v); however, the Ryan Parties will have the right to designate one nominee for so long as the Ryan Parties control,

in the aggregate, 10% or more of the Original Amount. In addition, for so long as the Ryan Parties hold the nomination

rights specified in (i) through (v), the Ryan Parties have the right to nominate the chairman of the Board. The Director

Nomination Agreement also provides that the Ryan Parties may assign such rights to an affiliate. The Director Nomination

Agreement prohibits us from increasing or decreasing the size of our Board without the prior written consent of the Ryan

Parties.

The Ryan Parties and their affiliates engage in a broad spectrum of activities, including investments in our

industry generally. In the ordinary course of their business activities, the Ryan Parties and their affiliates may engage in

activities where their interests conflict with our interests or those of our other stockholders, such as investing in or advising

businesses that directly or indirectly compete with certain portions of our business or are suppliers or clients of ours. Our

certificate of incorporation provides that none of the Ryan Parties, any of their affiliates or any director who is not

employed by us or our affiliates will have any duty to refrain from engaging, directly or indirectly, in the same business

activities or similar business activities or lines of business in which we operate. The Ryan Parties also may pursue

acquisition opportunities that may be complementary to our business, and, as a result, those acquisition opportunities may

not be available to us. In addition, the Ryan Parties may have an interest in pursuing acquisitions, divestitures, and other

transactions that, in their judgment, respectively, could enhance their investment, respectively, even though such

transactions might involve risks to you or may not prove beneficial.

Future transfers by the holders of LLC Common Units (who own an equal number of 10 votes per share Class B

common stock related thereto) will generally result in those shares converting into shares of Class A common stock and the

cancellation of the related Class B common stock, subject to limited exceptions, such as certain transfers effected for estate

planning or charitable purposes. For a description of the dual-class structure, see Exhibit 4.7 to this Annual Report.

Table of Contents

Provisions of our corporate governance documents could make an acquisition of us more difficult and may prevent

attempts by our stockholders to replace or remove our current management, even if beneficial to our stockholders.

Our certificate of incorporation and bylaws and the Delaware General Corporation Law (the “DGCL”) contain

provisions that could make it more difficult for a third-party to acquire us, even if doing so might be beneficial to our

stockholders. Among other things:

• our dual-class common stock structure provides our holders of Class B common stock with the ability to

control the outcome of matters requiring stockholder approval;

• our certificate of incorporation allows us to authorize the issuance of undesignated preferred stock, the

terms of which may be established and the shares of which may be issued without stockholder approval,

and which may include supermajority voting, special approval, dividend, or other rights or preferences

superior to the rights of stockholders;

• our certificate of incorporation provides for a classified board of directors with staggered three-year terms,

which pursuant to a proposal that was approved at the Company’s 2025 annual meeting of stockholders, is

being phased out, such that the Class II directors who stand for election at our 2026 annual meeting of

stockholders will be elected for one-year terms, the Class III directors and the prior Class II directors will

stand for election for one-year terms at the 2027 annual meeting of stockholders, and all directors will stand

for election for one-year terms at the 2028 annual meeting of stockholders and at each annual meeting of

stockholders thereafter. Until declassification is complete, the Company’s classified Board could serve to

make it more difficult for a third-party to acquire us; and

• our bylaws establish advance notice requirements for nominations for elections to our Board or for

proposing matters that can be acted upon by stockholders at stockholder meetings; provided, however, at

any time when the Ryan Parties control, in the aggregate, at least 10% voting power of the common stock,

such advance notice procedure does not apply to the Ryan Parties.

We have opted out of Section 203 of the DGCL, which generally prohibits a Delaware corporation from

engaging in any of a broad range of business combinations with any interested stockholder for a period of three years

following the date on which the stockholder became an interested stockholder. However, our certificate of incorporation

contains a provision that provides us with protections similar to Section 203, and prevents us from engaging in a business

combination with a person (excluding the Ryan Parties and any of their direct or indirect transferees and any group as to

which such persons are a party) who acquires at least 15% of our common stock for a period of three years from the date

such person acquired such common stock, unless board or stockholder approval is obtained prior to the acquisition. These

provisions could discourage, delay, or prevent a transaction involving a change in control of our company. These

provisions could also discourage proxy contests and make it more difficult for you and other stockholders to elect directors

of your choosing and cause us to take other corporate actions you desire, including actions that you may deem

advantageous, or negatively affect the trading price of our Class A common stock. In addition, because our Board is

responsible for appointing the members of our management team, these provisions could in turn affect any attempt by our

stockholders to replace current members of our management team.

These and other provisions in our certificate of incorporation, bylaws, and Delaware law could make it more

difficult for stockholders or potential acquirers to obtain control of our Board or initiate actions that are opposed by our

then-current Board, including actions to delay or impede a merger, tender offer, or proxy contest involving our company.

The existence of these provisions could negatively affect the price of our Class A common stock and limit opportunities for

you to realize value in a corporate transaction.

For information regarding these and other provisions, see Exhibit 4.7 to this Annual Report.

Our certificate of incorporation designates the Court of Chancery of the State of Delaware as the exclusive forum for

certain litigation that may be initiated by our stockholders and the federal district courts of the United States as the

exclusive forum for litigation arising under the Securities Act, which could limit our stockholders’ ability to obtain a

favorable judicial forum for disputes with us.

Pursuant to our certificate of incorporation, unless we consent in writing to the selection of an alternative forum,

the Court of Chancery of the State of Delaware (or, if the Court of Chancery does not have jurisdiction, the United States

District Court for the District of Delaware) will, to the fullest extent permitted by law, be the sole and exclusive forum for

(i) any derivative action or proceeding brought on behalf of us, (ii) any action asserting a claim of breach of a fiduciary

duty owed by, or other wrongdoing by, any current or former director, officer, employee, or agent of ours owed to us or our

Table of Contents

stockholders, or a claim of aiding and abetting any such breach of fiduciary duty, (iii) any action asserting a claim against

the Company or any director, officer, employee, or agent of ours arising pursuant to any provision of the DGCL, the

certificate of incorporation or the bylaws (as either may be amended, restated, modified, supplemented, or waived from

time to time) (iv) any action to interpret, apply, enforce, or determine the validity of the certificate of incorporation or the

bylaws (as either may be amended), (v) any action asserting a claim against the us or any director, officer, employee, or

agent of ours that is governed by the internal affairs doctrine, or (vi) any action asserting an “internal corporate claim” as

that term is defined in Section 115 of the DGCL. This provision would not apply to any action or proceeding asserting a

claim under the Securities Act or the Exchange Act for which the federal courts have exclusive jurisdiction or any other

claim for which the federal courts have exclusive jurisdiction. Furthermore, our certificate of incorporation also provides

that, unless we consent in writing to the selection of an alternative forum, the federal district courts of the United States

will be the sole and exclusive forum for the resolution of any complaint asserting a cause of action arising under the

Securities Act of 1933, against us or any director, officer, employee, or agent of ours. However, Section 22 of the

Securities Act creates concurrent jurisdiction for federal and state courts over all suits brought to enforce a duty or liability

created by the Securities Act or the rules and regulations thereunder; accordingly, we cannot be certain that a court would

enforce such provision. Our certificate of incorporation further provides that any person or entity purchasing or otherwise

acquiring any interest in shares of our capital stock is deemed to have notice of and consented to the provisions of our

certificate of incorporation described above; however, our stockholders will not be deemed to have waived our compliance

with the federal securities laws and the rules and regulations thereunder. The forum selection provisions in our certificate

of incorporation may have the effect of discouraging lawsuits against us or our directors and officers and may limit our

stockholders’ ability to obtain a favorable judicial forum for disputes with us. If the enforceability of our forum selection

provision were to be challenged, we may incur additional costs associated with resolving such a challenge. While we

currently have no basis to expect any such challenge would be successful, if a court were to find our forum selection

provision to be inapplicable or unenforceable, we may incur additional costs associated with having to litigate in other

jurisdictions, which could have an adverse effect on our business, financial condition, and results of operations and result in

a diversion of the time and resources of our employees, management, and Board.

Future sales, or the possibility of future sales, of a substantial number of our shares of Class A common stock could

adversely affect the price of our shares of Class A common stock.

Future sales of a substantial number of our shares of Class A common stock, or the perception that such sales

will occur, could cause a decline in the market price of our shares of Class A common stock. As of December 31, 2025, a

significant number of Class A common stock (or LLC Common Units exchangeable for Class A common stock) were held

by certain of our pre-IPO equity holders which are not otherwise, or are no longer, subject to either vesting or other sales

restrictions imposed by the Company. If these stockholders sell substantial amounts of shares of Class A common stock in

the public market (including any shares of Class A common stock issued upon the exchange of LLC Common Units), or

the market perceives that such sales may occur, the market price of our shares of Class A common stock could be adversely

affected. We have also entered into the registration rights agreement pursuant to which we have agreed under certain

circumstances to file a registration statement to register the resale of shares of our Class A commons stock held by the

Ryan Parties, as well as to cooperate in certain public offerings of such shares. We have also filed registration statements to

register all shares of Class A common stock and other equity securities that we have issued, or may issue, under the

Company ’ s 2021 Omnibus Incentive Plan. These shares of Class A common stock may be freely sold in the public market

upon issuance, subject to vesting and certain limitations imposed by us and as applicable to affiliates. If a large number of

our shares of Class A common stock are sold in the public market, the sales could reduce the trading price of shares of

Class A common stock.

We cannot guarantee that our share repurchase program will be fully consummated or that it will enhance long-term

shareholder value. Share repurchases could also affect the trading price of our Class A stock, increase volatility of our

stock and diminish our cash reserves.

Although our Board of Directors has authorized a share repurchase program that does not have an expiration

date, the program does not obligate us to repurchase any specific number of shares of our Class A common stock. We

cannot guarantee that the program will be fully consummated or that it will enhance long-term stockholder value. The

timing and number of shares repurchased under the program will depend on a variety of factors, including the Company’s

stock price, trading volume, working capital or other liquidity requirements, and market conditions, and may be suspended

or discontinued at any time without notice. The program could affect the trading price of our Class A common stock,

increase volatility and diminish our cash balance. Our Board of Directors will review the program periodically and may

Table of Contents

authorize adjustments of its terms if appropriate. Any announcement of a suspension or termination of this program may

result in a decrease in the trading price of our Class A stock.

There can be no assurance that we will declare additional cash dividends.

On February 27, 2024, we announced our first cash dividend and have paid a dividend every quarter since then.

The payment of any cash dividends in the future is subject to continued capital availability, market conditions, applicable

laws and agreements, and our Board continuing to determine that the declaration of dividends is in the best interests of our

stockholders. The declaration and payment of any dividend may be discontinued or reduced at any time, and there can be

no assurance that we will declare additional cash dividends in the future in any particular amounts, or at all.

We may issue shares of preferred stock in the future, which could make it difficult for another company to acquire us or

could otherwise adversely affect holders of our Class A common stock, which could depress the price of our Class A

common stock.

Our certificate of incorporation authorizes us to issue one or more series of preferred stock. Our Board has the

authority to determine the preferences, limitations, and relative rights of the shares of preferred stock and to fix the number

of shares constituting any series and the designation of such series, without any further vote or action by our stockholders.

Our preferred stock could be issued with voting, liquidation, dividend, and other rights superior to the rights of our Class A

common stock. The potential issuance of preferred stock may delay or prevent a change in control of us, discouraging bids

for our Class A common stock at a premium to the market price, and materially adversely affect the market price and the

voting and other rights of the holders of our Class A common stock.

Our operating results and stock price may be volatile.

Our quarterly operating results are likely to fluctuate in the future. In addition, securities markets worldwide

have experienced, and are likely to continue to experience, significant price and volume fluctuations. Our operating results

and the trading price of our Class A common stock may fluctuate in response to various factors, including:

• market conditions in our industry or the broader stock market;

• actual or anticipated fluctuations in our quarterly financial and operating results;

• introduction of new products or services by us or our competitors;

• issuance of new or changed securities analysts’ reports or recommendations;

• sales, or anticipated sales, of large blocks of our stock;

• additions or departures of key personnel;

• regulatory or political developments;

• litigation and governmental investigations;

• changing economic conditions (including inflationary pressures and any related interest rate volatility);

• investors’ perception of us;

• events beyond our control such as weather, war, and health crises; and

• any default on our indebtedness.

These and other factors, many of which are beyond our control, may cause our operating results and the market

price and demand for our Class A common stock to fluctuate substantially. Fluctuations in our quarterly operating results

could limit or prevent investors from readily selling their shares of Class A common stock and may otherwise negatively

affect the market price and liquidity of our shares of Class A common stock. In addition, in the past, when the market price

of a stock has been volatile, holders of that stock have sometimes instituted securities class action litigation against the

company that issued the stock. If any of our shareholders brought a lawsuit against us, we could incur substantial costs

defending the lawsuit. Such a lawsuit could also divert the time and attention of our management from our business, which

could significantly harm our profitability and reputation.

Table of Contents

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS

The following discussion and analysis summarizes the significant factors affecting the consolidated operating

results, financial condition, liquidity, and cash flows of the Company as of and for the periods presented below. The

following discussion and analysis should be read in conjunction with our Consolidated Financial Statements and the

related notes included elsewhere in this Annual Report on Form 10-K. The discussion contains forward-looking statements

that are based on the beliefs of management, as well as assumptions made by, and information currently available to, our

management. Actual results could differ materially from those discussed in or implied by forward-looking statements as a

result of various factors, including those discussed below and in the sections entitled “Risk Factors” and “Information

Concerning Forward-Looking Statements”.

The following discussion provides commentary on the financial results derived from our audited financial

statements for the years ended December 31, 2025 , 2024 , and 2023 , prepared in accordance with U.S. GAAP. In addition,

we regularly review the following Non-GAAP measures when assessing performance: Organic revenue growth rate,

Adjusted compensation and benefits expense, Adjusted compensation and benefits expense ratio, Adjusted general and

administrative expense, Adjusted general and administrative expense ratio, Adjusted EBITDAC, Adjusted EBITDAC

margin, Adjusted net income, Adjusted net income margin, and Adjusted diluted earnings per share. See “Non-GAAP

Financial Measures and Key Performance Indicators” for further information.

Overview

Founded by Patrick G. Ryan in 2010, we are a service provider of specialty products and solutions for insurance

brokers, agents, and carriers. We provide distribution, underwriting, product development, administration, and risk

management services by acting predominantly as a wholesale broker and a managing underwriter or a program

administrator with delegated authority from insurance carriers. Our mission is to provide industry-leading innovative

specialty insurance solutions for insurance brokers, agents, and carriers.

For retail insurance agents and brokers, we assist in the placement of complex or otherwise hard-to-place risks.

For insurance and reinsurance carriers, we predominantly work with retail and wholesale insurance brokers to source,

onboard, underwrite, and service these same types of risks. A significant majority of the premiums we place are bound in

the E&S market, which includes Lloyd’s of London. There is often significantly more flexibility in terms, conditions, and

rates in the E&S market relative to the Admitted or “standard” insurance market. We believe that the additional freedom to

craft bespoke terms and conditions in the E&S market allows us to best meet the needs of our trading partners, provide

unique solutions, and drive innovation. We believe our success has been achieved by providing best-in-class intellectual

capital, leveraging our trusted and long-standing relationships, and developing differentiated solutions at a scale unmatched

by many of our competitors.

Significant Events and Transactions

Corporate Structure

We are a holding company and our sole material asset is a controlling equity interest in New LLC, which is also

a holding company and its sole material asset is a controlling equity interest in the LLC. The Company operates and

controls the business and affairs of, and consolidates the financial results of, the LLC through New LLC. We conduct our

business through the LLC. As the LLC is substantively the same as New LLC, for the purpose of this discussion we will

refer to both New LLC and the LLC as the “LLC”.

The LLC is a limited liability company taxed as a partnership for income tax purposes, and its taxable income

or loss is passed through to its members, including the Company. The LLC is subject to income taxes on its taxable income

in certain foreign countries, in certain state and local jurisdictions that impose income taxes on partnerships, and on the

taxable income of its U.S. corporate subsidiaries. As a result of our ownership of LLC Common Units, we are subject to

U.S. federal, state, and local income taxes with respect to our allocable share of any taxable income of the LLC and are

taxed at the prevailing corporate tax rates. We intend to cause the LLC to make distributions in an amount that is at least

sufficient to allow us to pay our tax obligations and operating expenses, including distributions to fund any ordinary course

payments due under the Tax Receivable Agreement. See “Liquidity and Capital Resources - Tax Receivable Agreement”

for additional information about the TRA.

Table of Contents

Empower Program

In the first quarter of 2026 we are initiating a three-year restructuring program (the "Empower Program") that

will streamline our brokerage, binding, and underwriting operations, optimize our scale, accelerate our data and technology

strategies, and enhance efficiencies across all of our specialties. The program is estimated to result in approximately $160

million of cumulative one-time charges through 2028, and we expect it to generate annual savings of approximately $80

million in 2029. Actions taken under the Empower Program are expected to be completed by the end of 2028.

Acquisitions

On February 3, 2025, the Company completed the acquisition of Velocity Risk Underwriters, LLC

(“Velocity”), an MGU specializing in first-party insurance coverage for catastrophe exposed properties, based in Nashville,

Tennessee.

On May 1, 2025, the Company completed the acquisition of USQRisk Holdings, LLC, a company that

underwrites, structures, prices, and places specialty insurance for corporate clients seeking bespoke, multi-year risk

solutions based in New York and London.

On May 16, 2025, the Company completed the acquisition of 360° Underwriting, an MGU specializing in

commercial construction, based in Dublin and Galway, Ireland.

On July 1, 2025, the Company completed the acquisition of certain assets of J.M. Wilson Corporation (“JM

Wilson”), a binding authority and surplus lines broker specializing in transportation insurance, headquartered in Portage,

Michigan.

On December 1, 2025, the Company completed the acquisition of Stewart Specialty Risk Underwriting Ltd., an

MGU specializing in underwriting large-account, high-hazard property and casua lty solutions, based in Toronto, Canada.

We believe these acquisitions complement our product capabilities, enhance our human capital, expand our

total addressable market, and provide us access to new markets in new geographies. See “ Note 4 , Mergers and

Acquisitions ” in the footnotes to the consolidated financial statements in this Annual Report for further discussion.

Key Factors Affecting Our Performance

Our historical financial performance has been, and we expect our financial performance in the future to be,

driven by our ability to:

Pursue Strategic Acquisitions

We have successfully integrated businesses complementary to our own to increase both our distribution reach

and our product and service capabilities. We continuously evaluate acquisitions and intend to further pursue targeted

acquisitions that complement our product and service capabilities or provide us access to new markets. We have previously

made, and intend to continue to make, acquisitions with the objective of enhancing our human capital and product and

service capabilities, entering natural adjacencies, and expanding our geographic presence. Our ability to successfully

pursue strategic acquisitions is dependent upon a number of factors, including sustained execution of a disciplined and

selective acquisition strategy which requires acquisition targets to have a cultural and strategic fit, competition for these

assets, purchase price multiples that we deem appropriate and our ability to effectively integrate targeted companies or

assets and grow our business. We do not have agreements or commitments for any material acquisitions at this time.

Deepen and Broaden our Relationships with Retail Broker Trading Partners

We have deep engagement with our retail broker trading partners, and we believe we have the ability to transact

in even greater volume with nearly all of them. For example, in 2024, our revenue derived from the Top 100 firms (as

ranked by Business Insurance) expanded faster than our Organic revenue growth rate of 10.1%. Our ability to deepen and

broaden relationships with our retail broker trading partners and increase sales is dependent upon a number of factors,

including client satisfaction with our distribution reach and our product capabilities, retail brokers continuing to require or

desire our services, competition, pricing, economic conditions, and spending on our product offerings.

Table of Contents

Build Our Delegated Authority Business

We believe there is substantial opportunity to continue to grow our Delegated Authority business, which

includes both our Binding Authority Specialty and Underwriting Management Specialty. We believe that both M&A

consolidation and panel consolidation have a long runway. We believe that both M&A consolidation and the use and

reliance on scaled delegated Underwriting Management will continue to grow. Our ability to grow this business is

dependent upon a number of factors, including a continuing ability to secure sufficient capital support from insurers, the

quality of our services and product offerings, marketing and sales efforts to drive new business prospects and execution,

new product offerings, the pricing and quality of our competitors’ offerings, and the growth in demand for the insurance

products.

Invest in Operations and Growth

We have invested heavily in building a durable business that is able to adapt to the continuously evolving

specialty and E&S markets and intend to continue to do so. We are focused on enhancing the breadth of our product and

service offerings as well as developing and launching new solutions to address the evolving needs of the specialty

insurance industry and markets. Our future success is dependent upon a number of factors, including our ability to

successfully develop, market, and sell existing and new products and services to both new and existing trading partners.

We will continue to prioritize strategic investments that support revenue growth such as investments in talent, de novo

formations, product innovation and solutions, M&A, and technology in order to maximize long-term value creation, which

could have a short-term margin impact.

The Empower Program initiated in the first quarter of 2026 is designed to enhance efficiencies across all of our

specialties. The efficiencies we gain through the Empower Program are expected to allow us to continue making strategic

investments in growth, top-tier talent, de novo formations, and address the rapidly evolving needs of our clients.

Generate Commission Regardless of the State of the Specialty and E&S Markets

We earn commissions, which are calculated as a percentage of the total insurance policy premium, and fees.

Changes in the insurance market or specialty lines that are our focus, characterized by a period of increasing (or declining)

premium rates, could positively (or negatively) impact our profitability.

Managing Changing Macroeconomic Conditions

Growth in certain lines of business, such as project-based construction and M&A transactional liability

insurance, is partially dependent on a variety of macroeconomic factors inasmuch as binding the underlying insurance

coverage is subject to the underlying activity occurring. In periods of economic growth, liquid credit markets, and

favorable interest rates, this underlying activity can accelerate and provide tailwinds to our growth. In periods of economic

decline, tight credit markets, and unfavorable interest rates, this underlying activity can slow or be delayed and provide

headwinds to our growth. We believe over the long term these lines of business will continue to grow.

Leverage the Growth of the Specialty and E&S Markets

The growing relevance of the specialty and E&S markets has been driven by the rapid emergence and sustained

prevalence of large, complex, high-hazard, and otherwise hard-to-place risks across many lines of insurance. This trend

continued in 2025, with $125 billion of insured catastrophe losses, driven by $52 billion of insured losses related to severe

convective storms (“SCS”) with 19 SCS events that caused losses in excess of $1 billion, which together accounted for the

third-highest annual total for insured losses on record for SCS events and over $41 billion in losses generated from

California wildfires. The year also included floods in central Texas and the Mississippi valley, causing over 135 fatalities

and over $3 billion in insured losses. Additionally, these risks include the potential for more severe hurricanes that occur

with greater frequency, more devastating wildfires, more frequent flooding, escalating jury verdicts and social inflation,

geographic shifts in population density, a proliferation of cyber threats, novel health risks, risks associated with large sports

and entertainment venues, building and labor cost inflation relative to insured value, and the transformation of the economy

to a “digital first” mode of doing business. We believe that as the complexity of the specialty and E&S markets continues

to escalate, wholesale brokers and managing underwriters that do not have sufficient scale, or the financial and intellectual

capital to invest in the required specialty capabilities, will struggle to compete effectively. This will further the trend of

market share consolidation among the wholesale firms that do have these capabilities. We will continue to invest in our

intellectual capital to innovate and offer custom solutions and products to better address these evolving market

fundamentals.

Table of Contents

Although we believe this growth will continue, we recognize that the growth of the specialty and E&S markets

might not be linear as risks can and do shift between the E&S, including the specialty market, and non-E&S markets as

market factors change and evolve. For example, we benefited from a rapid increase in both the flow of property risks into

the wholesale channel and the premium rate charged for those risks in 2023 and the first half of 2024 as the frequency and

severity of catastrophe losses, attritional losses and secondary perils such as severe convective storms, economic inflation,

concentration of exposures, higher retentions of risk, and higher reinsurance costs applied pressure to insurers and capacity

tightened. In the second half of 2024 and throughout 2025, the specialty and E&S markets experienced a shift in these

trends as insurance capacity for these property risks increased, which resulted in a decline in property premium rates. We

believe these factors have created additional opportunities for retailers to place property coverage directly, and we believe

the market dynamics exist for these factors to potentially continue into 2026.

Components of Results of Operations

Revenue

Net Commissions and Fees

Net commissions and fees are derived primarily from our three Specialties and are paid for our role as an

intermediary in facilitating the placement of coverage in the insurance distribution chain. Net commissions and policy fees

are generally calculated as a percentage of the total insurance policy premium placed, although fees can often be a fixed

amount irrespective of the premium, and we also receive supplemental commissions based on the volume placed or

profitability of a book of business. We share a portion of these net commissions and policy fees with the retail insurance

broker and recognize revenue on a net basis. Additionally, carriers may also pay us a contingent commission or volume-

based commission, both of which represent forms of contingent or supplemental consideration associated with the

placement of coverage and are based primarily on underwriting results, but may also contain considerations for only

volume, growth, and/or retention. Although we have compensation arrangements called contingent commissions in all

three Specialties that are based in whole or in part on the underwriting performance, we do not take any direct insurance

risk other than through our equity method investments in Geneva Re through Ryan Investment Holdings, LLC and

Velocity Specialty Insurance Company (“VSIC”). We also receive loss mitigation and other fees, some of which are not

dependent on the placement of a risk.

In our Wholesale Brokerage and Binding Authority Specialties, we generally work with retail insurance brokers

to secure insurance coverage for their clients, who are the ultimate insured party. Our Wholesale Brokerage and Binding

Authority Specialties generate revenues through commissions and fees from clients, as well as through supplemental

commissions, which may be contingent commissions or volume-based commissions from carriers. Commission rates and

fees vary depending upon several factors, which may include the amount of premium, the type of insurance coverage

provided, the particular services provided to a client or carrier, and the capacity in which we act. Payment terms are

consistent with current industry practice.

In our Underwriting Management Specialty, we utilize delegated authority granted to us by carriers and we

work with retail insurance brokers or wholesale brokers to secure insurance coverage for the ultimate insured party. Our

Underwriting Management Specialty generates revenues through insurance and reinsurance commissions and fees from

clients and through contingent commissions from carriers. Commission rates and fees vary depending upon several factors

including the premium, the type of coverage, and additional services provided to the client. Payment terms are consistent

with current industry practice.

Fiduciary Investment Income

Fiduciary investment income consists of interest earned on insurance premiums and surplus lines taxes that are

held in a fiduciary capacity, in cash and cash equivalents, until disbursed.

Expenses

Compensation and Benefits

Compensation and benefits is our largest expense. It consists of (i) salary, incentives and benefits to employees,

and commissions to our producers and (ii) equity-based compensation associated with the grants of awards to employees,

executive officers, and directors. We operate in competitive markets for human capital and we need to maintain

competitive compensation levels in order to maintain and grow our talent base.

Table of Contents

General and Administrative

General and administrative expense includes travel and entertainment expenses, information technology,

occupancy-related expenses, foreign exchange, legal, insurance and other professional fees, and other costs associated with

our operations. In particular, our travel and entertainment expenses, information technology expenses, occupancy-related

expenses, and professional services expenses generally increase or decrease in relative proportion to the number of our

employees and the overall size and scale of our business operations.

Amortization

Amortization expense consists primarily of amortization related to intangible assets we acquired in connection

with our acquisitions. Intangible assets consist of customer relationships, trade names, assembled workforce, and internally

developed software .

Interest Expense, Net

Interest expense, net consists of interest payable on indebtedness, amortization of the Company’s interest rate

cap, imputed interest on contingent consideration, and amortization of deferred debt issuance costs, offset by interest

income on the Company’s Cash and cash equivalents balances and payments received in relation to the interest rate cap.

Other Non-Operating Loss (Income)

For year ended December 31, 2025, Other non-operating loss (income) consisted of seller reimbursement of

acquisition-related retention incentives, sublease income, and forfeitures of vested equity awards offset by TRA contractual

interest and related charges. For the year ended December 31, 2024, Other non-operating loss (income) included expense

related to Term Loan modifications and TRA contractual interest and related charges offset by income related to a decrease

in our blended state tax rates and foreign tax credit impact on the TRA remeasurement and sublease income. For the year

ended December 31, 2023, Other non-operating loss (income) included charges related to the change in the TRA liability

caused by a change in our blended state tax rates.

Income Tax Expense

Income tax expense includes tax on the Company’s allocable share of any net taxable income from the LLC,

from certain state and local jurisdictions that impose taxes on partnerships, as well as earnings from our foreign

subsidiaries and C-Corporations subject to entity level taxation, and income tax expense recognized as a result of the

Common Control Reorganization (“CCR”) subsequent to the Velocity acquisition in the first quarter of 2025.

Non-Controlling Interests

Net income and Other comprehensive income (loss) are attributed to the non-controlling interests based on the

weighted-average LLC Common Units outstanding during the period and is presented on the Consolidated Statements of

Income. Refer to “ Note 9 , Stockholders’ Equity ” of the audited consolidated financial statements in this Annual Report for

more information.

Table of Contents

Results of Operations

Below is a summary table of the financial results and Non-GAAP measures that we find relevant to our

business operations:

Year Ended December 31,

(in thousands, except percentages and per share data)

Revenue

Net commissions and fees

Fiduciary investment income

Total revenue

Expenses

Compensation and benefits

General and administrative

Amortization

Depreciation

Change in contingent consideration

Total operating expenses

Operating income

Interest expense, net

Income from equity method investments

Other non-operating loss (income)

Income before income taxes

Income tax expense

Net income

GAAP financial measures

Revenue

Net commissions and fees

Compensation and benefits

General and administrative

Net income

Compensation and benefits expense ratio (1)

General and administrative expense ratio (2)

Net income margin (3)

Earnings per share (4)

Diluted earnings per share (4)

Non-GAAP financial measures*

Organic revenue growth rate

Adjusted compensation and benefits expense

Adjusted compensation and benefits expense ratio

Adjusted general and administrative expense

Adjusted general and administrative expense ratio

Adjusted EBITDAC

Adjusted EBITDAC margin

Adjusted net income

Adjusted net income margin

Adjusted diluted earnings per share

(1) Compensation and benefits expense ratio is defined as Compensation and benefits expense divided by Total revenue.

(2) General and administrative expense ratio is defined as General and administrative expense divided by Total revenue.

Table of Contents

(3) Net income margin is defined as Net income divided by Total revenue.

(4) See “ Note 11 , Earnings Per Share ” in the footnotes to the consolidated financial statements in this Annual Report for

further discussion of how these metrics are calculated.

* These measures are Non-GAAP. Please refer to the section entitled “Non-GAAP Financial Measures and Key

Performance Indicators” below for definitions and reconciliations to the most directly comparable GAAP measure.

Comparison of the Years Ended December 31, 2025 and 2024

Revenue

Total Revenue

Total revenue increased by $535.4 million , or 21.3% , from $2,515.7 million to $3,051.1 million , for the year

ended December 31, 2025 , as compared to the prior year. The following were the drivers of the increase:

• $245.4 million, or 9.8%, of the period-over-period change in Total revenue was due to acquisitions during

their first twelve months of ownership by the Company. Acquisition revenue was offset by a $1.6 million

decline in revenue period-over-period relating to the sale of a small non-subscription workers compensation

book of business at the end of 2024;

• $240.3 million, or 9.5%, of the period-over-period change in Total revenue was due to organic revenue

growth in Net commissions and fees. Organic revenue growth represents the change in Net commissions

and fees revenue, as compared to the same period for the year prior, adjusted for Net commissions and fees

attributable to recent acquisitions during the first twelve months of Ryan Specialty’s ownership, and other

adjustments such as the removal of the impact of contingent commissions and the impact of changes in

foreign exchange rates. In aggregate, our net commission rates were consistent period-over-period. Also,

we grew our client relationships, in aggregate, within each of our three Specialties. The growth of these

relationships is due to the combination of growth in specialty and E&S markets and winning new business

from competitors. We experienced growth across the majority of our casualty lines, offset by a moderate

pullback across our property portfolio. The moderate pullback across our property portfolio was driven by a

continued decline in rates and retailers realizing additional opportunities to place coverage directly. This

decline was partially offset by new business generation. Growth in the period was balanced across our three

Specialties, driven by an increase in the flow of risks into the specialty and E&S markets;

• $53.2 million, or 2.1%, of the period-over-period change in Total revenue was due to contingent

commissions and the impact of foreign exchange rates on the Company’s Net commissions and fees; and

• $3.5 million, or 0.1%, of the period-over-period change in Total revenue was due to a decrease in Fiduciary

investment income, caused by a decline in interest rates compared to the prior-year period.

Year Ended December 31,

Period over Period

(in thousands, except

percentages)

total

total

Change

Wholesale Brokerage

Binding Authority

Underwriting Management

Total Net commissions

and fees

Wholesale Brokerage net commissions and fees increased by $111.4 million , or 7.5% , period-over-period,

primarily due to organic growth within the Specialty for the period as well as an increase in contingent commissions and

contributions from the JM Wilson acquisition.

Binding Authority net commissions and fees increased by $49.8 million , or 15.5% , period-over-period,

primarily due to strong organic growth within the Specialty for the period as well as an increase in contingent commissions

and contributions from the JM Wilson acquisition.

Table of Contents

Underwriting Management net commissions and fees increased by $377.8 million , or 58.5% , period-over-

period, primarily due to organic growth within the Specialty for the period, inclusive of an increase in transactional

business, contributions from recent acquisitions, and an increase in contingent commissions.

The following table sets forth our revenue by type of commission and fees:

Year Ended December 31,

Period over Period

(in thousands, except

percentages)

total

total

Change

Net commissions and

policy fees

Supplemental and

contingent commissions

Loss mitigation and other

fees

Total Net commissions

and fees

Net commissions and policy fees grew $449.2 million , or 19.4% , period-over-period, slightly lower than the

overall net commissions and fee revenue growth of 21.9% for the year ended December 31, 2025 , compared to the prior

year. The main drivers of this growth continue to be the acquisition of new business and expansion of ongoing client

relationships in response to the increasing demand for new E&S products as well as the inflow of risks from the Admitted

market into the specialty and E&S markets. In aggregate, we experienced stable commission rates period over period.

Supplemental and contingent commissions increased $60.4 million , or 68.0% , period-over-period, driven by the

performance of risks placed on eligible business earning profit-based or volume-based commissions as well as profit

commissions recognized from recent acquisitions.

Loss mitigation and other fees grew $29.3 million , or 51.9% , period-over-period, primarily due to increased

capital markets activity, captive management and other risk management services fees from the placement of alternative

risk insurance solutions, as well as contributions from recent acquisitions.

Expenses

Compensation and Benefits

Compensation and benefits expense increased by $212.3 million , or 13.3% , from $1,591.1 million to

$1,803.4 million for the year ended December 31, 2025 , compared to the prior year. The following were the drivers of this

increase:

• An increase of $196.0 million was driven by (i) the addition of 815 employees during the period, inclusive

of acquired employees, and (ii) growth in the business. Overall headcount increased to 6,110 full-time

employees as of December 31, 2025 , from 5,295 as of December 31, 2024 ;

• Commissions increased $68.5 million, or 9.6%, period-over-period, driven by the 7.5% increase in

Wholesale Brokerage and 15.5% increase in Binding Authority Net commissions and fees discussed above;

and

• An increase of $1.6 million was driven by Acquisition related long-term incentive compensation expense

associated with recent acquisitions.

• The increases were partially offset by a $39.9 million decline in Restructuring and related expense due to

the completion of the ACCELERATE 2025 program at the end of 2024;

• A decrease of $9.6 million in Equity-based compensation and Initial public offering related expense

associated with the reversal of certain executive performance-based awards’ expense in the period as well

as the natural runoff of Initial public offering related expense as awards continue to vest; and

• A decrease of $4.3 million was driven by Acquisition-related expense associated with recent acquisitions.

Table of Contents

The net impact of revenue growth and the factors above resulted in a Compensation and benefits expense ratio

decrease of 4.1% from 63.2% to 59.1% period-over-period.

In general, we expect to continue experiencing a rise in commissions, salaries, incentives, and benefits expense

commensurate with our expected growth in business volume, revenue, and headcount.

General and Administrative

General and administrative expense increased by $101.4 million , or 28.8% , from $352.1 million to

$453.5 million for the year ended December 31, 2025 , as compared to 2024 . The following were the drivers of this

increase:

• $78.6 million of increased professional services and IT charges associated with ongoing technology and

data initiatives, costs directly linked to organic and inorganic revenue growth in the period, and recruiter

fees;

• $36.0 million was driven by growth in the business. Such expenses incurred to accommodate both organic

and inorganic revenue growth include travel and entertainment, occupancy, insurance, and foreign

exchange; and

• $6.6 million was driven by an increase in Acquisition-related expense associated with one-time diligence,

transaction-related, and integration costs.

• The increase was partially offset by a $19.8 million decline in Restructuring and related expense due to the

completion of the ACCELERATE 2025 program at the end of 2024.

The net impact of revenue growth and the factors listed above resulted in a General and administrative expense ratio

increase of 0.9% from 14.0% to 14.9% period-over-period.

Amortization

Amortization expense increased by $116.6 million , or 73.9% , from $157.8 million to $274.4 million for the

year ended December 31, 2025 , compared to the prior year. The main driver of the increase was the amortization of

intangible assets from recent acquisitions. Our Customer relationships and Other intangible assets increased by

$140.8 million when comparing the balance as of December 31, 2025 , to the balance as of December 31, 2024 , due to

acquisition activity during the year.

Interest Expense, Net

Interest expense, net increased $63.9 million , or 40.4% , from $158.4 million to $222.4 million for the year

ended December 31, 2025 , compared to the prior year. The main driver of the increase in Interest expense, net for the year

ended December 31, 2025 , was an increase in debt from recent acquisition activity.

Other Non-Operating Loss (Income)

Other non-operating loss (income) increased by $15.7 million from $15.0 million of a loss in the prior year to

income of $0.7 million for the year ended December 31, 2025 . For the year ended December 31, 2025, Other non-operating

loss (income) consisted of $0.6 million of seller reimbursement of acquisition-related retention incentives, $0.6 million of

sublease income, and $0.4 million of forfeitures of vested equity awards offset by $1.1 million of TRA contractual interest

and related charges. For the year ended December 31, 2024, Other non-operating loss consisted of $18.1 million of expense

related to Term Loan modifications and $1.3 million of TRA contractual interest and related charges offset by $3.4 million

of income related to a decrease in our blended state tax rates and foreign tax credit impact on the TRA remeasurement and

$0.5 million of sublease income.

Income Before Income Taxes

Due to the factors above, Income before income taxes increased $20.6 million , or 7.6% , from $272.6 million to

$293.2 million for the year ended December 31, 2025 , compared to the prior year.

Table of Contents

Income Tax Expense

Income tax expense increased $36.4 million from $42.6 million to $79.0 million for the year ended

December 31, 2025 , as compared to the prior year primarily as a result of the $39.1 million increase in Deferred income tax

expense recognized as a result of the CCR subsequent to the Velocity acquisition in the first quarter of 2025 as compared to

the Deferred income tax expense recognized as a result of the CCR subsequent to the Innovisk acquisition in the fourth

quarter of 2024. The CCRs were one-time, non-cash income tax expenses incurred at Ryan Specialty Holdings, Inc., and

our federal and state tax rate, net of federal benefit, is unaffected.

Net Income

Net income decreased $15.8 million , or 6.9% , from $229.9 million to $214.2 million for the year ended

December 31, 2025 , compared to the prior year as a result of the factors described above.

Comparison of the Years Ended December 31, 2024 and 2023

Revenue

Total Revenue

Total revenue increased by $438.2 million, or 21.1%, from $2,077.5 million to $2,515.7 million, for the year

ended December 31, 2024, as compared to the prior year. The following were the drivers of the increase:

• $252.2 million, or 12.1%, of the period-over-period change in Total revenue was due to organic revenue

growth in Net commissions and fees. Organic revenue growth represents the change in Net commissions

and fees revenue, as compared to the same period for the year prior, adjusted for Net commissions and fees

attributable to recent acquisitions during the first twelve months of Ryan Specialty’s ownership, and other

adjustments such as the removal of the impact of contingent commissions and the impact of changes in

foreign exchange rates. In aggregate, our net commission rates were consistent period-over-period. Also,

we grew our client relationships, in aggregate, within each of our three Specialties. The growth of these

relationships is due to the combination of a growing specialty and E&S markets and winning new business

from competitors. Growth for the year was balanced across our property and casualty portfolios within our

three Specialties, driven by an increase in the flow of risks into the specialty and E&S markets. This growth

was partially offset by a number of factors, none of which were individually significant such as (i) a

continued decline throughout the year in Net commissions and fees generated from the placement of public

company D&O insurance policies, related to a slow-down in IPO activity and an associated rapid premium

rate decrease and (ii) in the second half of 2024 a shift in property trends as capacity become more readily

available, which resulted in a decline in property premium rates. We believe these factors have also created

opportunities for retailers to place some of these property risk coverages directly;

• $142.0 million, or 6.8%, of the period-over-period change in Total revenue was due to the 2023 and 2024

acquisitions related to our first twelve months of ownership;

• $34.9 million, or 1.7%, of the period-over-period change in Net commissions and fees was due to changes

in contingent commissions and the impact of foreign exchange rates on our Net commissions and fees; and

• $9.1 million, or 0.5%, of the period-over-period change in Total revenue was due to an increase in

Fiduciary investment income, caused by a rise in fiduciary cash balances compared to the prior year.

Year Ended December 31,

Period over Period

(in thousands, except

percentages)

total

total

Change

Wholesale Brokerage

Binding Authority

Underwriting Management

Total Net commissions

and fees

Wholesale Brokerage net commissions and fees increased by $170.0 million, or 12.9%, period-over-period,

primarily due to strong organic growth within the Specialty.

Table of Contents

Binding Authority net commissions and fees increased by $44.4 million, or 16.1%, period-over-period,

primarily due to strong organic growth within the Specialty.

Underwriting Management net commissions and fees increased by $214.6 million, or 49.7%, period-over-

period, primarily due to strong organic growth within the Specialty as well as contributions from the AccuRisk, Castel, US

Assure, Greenhill, Ethos P&C, EverSports, Geo, and Innovisk acquisitions.

The following table sets forth our revenue by type of commission and fees:

Year Ended December 31,

Period over Period

(in thousands, except

percentages)

total

total

Change

Net commissions and

policy fees

Supplemental and

contingent commissions

Loss mitigation and other

fees

Total Net commissions

and fees

Net commissions and policy fees grew $374.5 million, or 19.3%, period-over-period, slightly lower than the

overall net commissions and fee revenue growth of 21.2% for the year ended December 31, 2024, compared to the prior

year. The main drivers of this growth continue to be the acquisition of new business and expansion of ongoing client

relationships in response to the increasing demand for new E&S products as well as the inflow of risks from the Admitted

market into the specialty and E&S markets. In aggregate, we experienced stable commission rates period over period.

Supplemental and contingent commissions increased $32.5 million, or 57.6%, period-over-period, driven by the

performance of risks placed on eligible business earning profit-based or volume-based commissions as well as profit

commissions recognized from acquisitions completed in 2024.

Loss mitigation and other fees grew $22.1 million, or 64.2%, period-over-period, primarily due to increased

capital markets activity, additional captive management and other risk management services fees from the placement of

alternative risk insurance solutions as well as growth in certain fees related to the ACE, Point6, and AccuRisk acquisitions

completed in the second half of 2023.

Expenses

Compensation and Benefits

Compensation and benefits expense increased by $270.0 million, or 20.4%, from $1,321.0 million to $1,591.1

million for the year ended December 31, 2024, compared to the prior year. The following were the drivers of this increase:

• Commissions increased $91.1 million, or 14.7%, period-over-period, driven by the 21.2% increase in total

Net commissions and fees discussed above;

• An increase of $29.3 million was driven by Acquisition related long-term incentive compensation expense

associated with recent acquisitions;

• An increase of $17.3 million was driven by Restructuring and related expense associated with the

ACCELERATE 2025 program;

• An increase of $11.2 million was driven by Acquisition-related expense associated with recent acquisitions;

• A net increase of $9.3 million was driven by equity-based compensation, caused by an increase of $21.0

million in normal course equity-based compensation expense offset by a decrease of $11.7 million of IPO

related expenses; and

• An increase of $111.8 million was driven by (i) the addition of 938 employees compared to the prior year,

inclusive of acquired employees, and (ii) growth in the business. Overall headcount increased to 5,295 full-

time employees as of December 31, 2024, from 4,357 as of December 31, 2023.

Table of Contents

The net impact of revenue growth and the factors above resulted in a Compensation and benefits expense ratio

decrease of 0.4% from 63.6% to 63.2% period-over-period.

In general, we expect to continue experiencing a rise in commissions, salaries, incentives, and benefits expense

commensurate with our expected growth in business volume, revenue, and headcount.

General and Administrative

General and administrative expense increased by $75.9 million, or 27.5%, from $276.2 million to $352.1

million for the year ended December 31, 2024, as compared to 2023. The following were the drivers of this increase:

• $47.4 million was driven by growth in the business. Expenses incurred to accommodate both organic and

inorganic revenue growth include IT, travel and entertainment, occupancy, and insurance;

• $35.4 million of increased Acquisition-related expense associated with recent and prospective acquisitions;

and

• These increases were partially offset by a $6.9 million decrease compared to the prior year in Restructuring

and related expense associated with the ACCELERATE 2025 program.

The net impact of revenue growth and the factors listed above resulted in a General and administrative expense ratio

increase of 0.7% from 13.3% to 14.0% period-over-period.

Amortization

Amortization expense increased by $51.0 million, or 47.8%, from $106.8 million to $157.8 million for the year

ended December 31, 2024, compared to the prior year. The main driver of the increase was the amortization of intangible

assets from recent acquisitions. Our Customer relationships and Other intangible assets increased by $865.1 million when

comparing the balance as of December 31, 2024, to the balance as of December 31, 2023, with the largest individual

increase generated by the US Assure acquisition.

Interest Expense, Net

Interest expense, net increased $38.9 million, or 32.6%, from $119.5 million to $158.4 million for the year

ended December 31, 2024, compared to the prior year. The main driver of the increase in Interest expense, net for the year

ended December 31, 2024, was an increase in debt from recent acquisition activity. For the years ended December 31, 2024

and 2023, the reduction to Interest expense, net related to our interest rate cap was $17.8 million and $15.9 million,

respectively. Interest earned on the Company’s Cash and cash equivalents balances offsets Interest expense, net. For the

years ended December 31, 2024 and 2023, the Company earned interest income of $21.5 million and $32.0 million,

respectively.

Other Non-Operating Loss

Other non-operating loss increased by $4.6 million from $10.4 million in the prior year to $15.0 million for the

year ended December 31, 2024. For the year ended December 31, 2024, Other non-operating loss consisted of $18.1

million of expense related to Term Loan modifications and $1.3 million of TRA contractual interest and related charges

offset by $3.4 million of income related to a decrease in our blended state tax rates and foreign tax credit impact on the

TRA remeasurement and $0.5 million of sublease income. For the year ended December 31, 2023, Other non-operating

loss included a $10.4 million charge related to the change in the TRA liability caused by a change in our blended state tax

rates.

Income Before Income Taxes

Due to the factors above, Income before income taxes increased $34.6 million, or 14.6%, from $237.9 million

to $272.6 million for the year ended December 31, 2024, compared to the prior year.

Income Tax Expense

Income tax expense decreased $0.8 million from $43.4 million to $42.6 million for the year ended December

31, 2024, as compared to the prior year primarily due to a $13.9 million deferred tax benefit in 2024 from equity-based

compensation and a $8.8 million decrease in Deferred income tax expense recognized as a result of the CCR subsequent to

the Socius and AccuRisk acquisitions in the second half of 2023 and Innovisk in the fourth quarter of 2024. These CCRs

Table of Contents

were discrete, non-cash expenses incurred at Ryan Specialty Holdings, Inc., and the Company’s annual effective tax rate is

unaffected. The decrease was partially offset by an increase in pre-tax book income allocated to the Company for the year

ended December 31, 2024, and a decrease in the Company’s blended state tax rate during 2024 which resulted in increased

tax expense recognized related to the change in our Deferred tax assets.

Net Income

Net income increased $35.4 million, or 18.2%, from $194.5 million to $229.9 million for the year ended

December 31, 2024, compared to the prior year as a result of the factors described above.

Non-GAAP Financial Measures and Key Performance Indicators

In assessing the performance of our business, we use non-GAAP financial measures that are derived from our

consolidated financial information, but which are not presented in our consolidated financial statements prepared in

accordance with GAAP. We consider these non-GAAP financial measures to be useful metrics for management and

investors to facilitate operating performance comparisons from period to period by excluding potential differences caused

by variations in capital structures, tax positions, depreciation, amortization, and certain other items that we believe are not

representative of our core business. We use the following non-GAAP measures for business planning purposes, in

measuring our performance relative to that of our competitors, to help investors to understand the nature of our growth, and

to enable investors to evaluate the run-rate performance of the Company. Non-GAAP financial measures should be viewed

as supplementing, and not as an alternative or substitute for, the consolidated financial statements prepared and presented

in accordance with GAAP. The footnotes to the reconciliation tables below should be read in conjunction with the audited

consolidated financial statements in this Annual Report. Industry peers may provide similar supplemental information but

may not define similarly named metrics in the same way we do and may not make identical adjustments.

Organic Revenue Growth Rate

Organic Revenue Growth Rate is defined as the percentage change in Net commissions and fees, as compared

to the same period for the prior year, adjusted to eliminate revenue attributable to acquisitions for the first twelve months of

ownership, revenue attributable to sold businesses for the subsequent twelve months after a sale, and other items such as

contingent commissions and the impact of changes in foreign exchange rates.

Table of Contents

For the avoidance of doubt, prior period references in the tables below represent the same period in the prior

year. A reconciliation of Organic revenue growth rate to Net commissions and fees growth rate, the most directly

comparable GAAP measure, for each of the periods indicated is as follows (in percentages):

Year Ended December 31,

(in thousands, except percentages)

Current period Net commissions and fees revenue

Less: Current period contingent commissions

Less: Revenue attributable to sold businesses

Net commissions and fees revenue

excluding contingent commissions

Prior period Net commissions and fees revenue

Less: Prior period contingent commissions

Less: Revenue attributable to sold businesses

Prior period Net commissions and fees revenue

excluding contingent commissions

Change in Net commissions and fees revenue excluding

contingent commissions

Less: Mergers and acquisitions Net commissions and fees

revenue excluding contingent commissions

Impact of change in foreign exchange rates

Organic revenue growth (Non-GAAP)

Net commissions and fees revenue growth rate (GAAP)

Less: Impact of contingent commissions (1)

Net commissions and fees revenue

excluding contingent commissions growth rate (2)

Less: Mergers and acquisitions Net commissions and fees

revenue excluding contingent commissions (3)

Impact of change in foreign exchange rates (4)

Organic Revenue Growth Rate (Non-GAAP)

(1) Calculated by subtracting Net commissions and fees revenue growth rate from net commissions and fees revenue

excluding contingent commissions growth rate and revenue from sold businesses.

(2) Calculated by dividing the change in Total net commissions & fees revenue excluding contingent commissions by

prior year net commissions and fees excluding contingent commissions.

(3) Calculated by taking the mergers and acquisitions net commissions and fees revenue excluding contingent

commissions, representing the first 12 months of net commissions and fees revenue generated from acquisitions,

divided by prior period net commissions and fees revenue excluding contingent commissions.

(4) Calculated by taking the change in foreign exchange rates divided by prior period net commissions and fees revenue

excluding contingent commissions.

Adjusted Compensation and Benefits Expense and Adjusted Compensation and Benefits Expense Ratio

We define Adjusted compensation and benefits expense as Compensation and benefits expense adjusted to

reflect items such as (i) equity-based compensation, (ii) acquisition and restructuring related compensation expense, and

(iii) other exceptional or non-recurring items, as applicable. The most comparable GAAP financial metric is Compensation

and benefits expense. Adjusted compensation and benefits expense ratio is defined as Adjusted compensation and benefits

Table of Contents

expense as a percentage of Total revenue. The most comparable GAAP financial metric is Compensation and benefits

expense ratio.

A reconciliation of Adjusted compensation and benefits expense and Adjusted compensation and benefits

expense ratio to Compensation and benefits expense and Compensation and benefits expense ratio, the most directly

comparable GAAP measures, for each of the periods indicated, is as follows:

Year Ended December 31,

(in thousands, except percentages)

Total Revenue

Compensation and Benefits Expense

Acquisition-related expense

Acquisition related long-term incentive compensation (1)

Restructuring and related expense

Amortization and expense related to discontinued prepaid

incentives

Equity-based compensation (2)

IPO related expenses

Adjusted Compensation and Benefits Expense (3)

Compensation and Benefits Expense Ratio

Adjusted Compensation and Benefits Expense Ratio

(1) In 2023, Acquisition related long-term incentive compensation includes a $6.8 million expense reversal related to the

clawback of an All Risks LTIP payment from a terminated employee.

(2) In 2025, Equity-based compensation expense included $5.8 million of expense reversal associated with certain

executive performance-based awards on account of it becoming unlikely the performance targets would be achieved.

In 2024, Equity-based compensation included $4.6 million of expense associated with the removal of equity transfer

restrictions for an executive officer of the Company. See “ Note 10, Equity-Based Compensation ” of the audited

financial statements in this Annual Report for additional discussion on equity-based compensation.

(3) Adjustments to Compensation and benefits expense are described in the definition of Adjusted EBITDAC to Net

income in “ Adjusted EBITDAC and Adjusted EBITDAC Margin ”.

Adjusted General and Administrative Expense and Adjusted General and Administrative Expense Ratio

We define Adjusted general and administrative expense as General and administrative expense adjusted to

reflect items such as (i) acquisition and restructuring general and administrative related expense and (ii) other exceptional

or non-recurring items, as applicable. The most comparable GAAP financial metric is General and administrative expense.

Adjusted general and administrative expense ratio is defined as Adjusted general and administrative expense as a

percentage of Total revenue. The most comparable GAAP financial metric is General and administrative expense ratio.

Table of Contents

A reconciliation of Adjusted general and administrative expense and Adjusted general and administrative

expense ratio to General and administrative expense and General and administrative expense ratio, the most directly

comparable GAAP measures, for each of the periods indicated is as follows:

Year Ended December 31,

(in thousands, except percentages)

Total Revenue

General and Administrative Expense

Acquisition-related expense

Restructuring and related expense

Adjusted General and Administrative Expense (1)

General and Administrative Expense Ratio

Adjusted General and Administrative Expense Ratio

(1) Adjustments to General and administrative expense are described in the definition of Adjusted EBITDAC to Net

income in “ Adjusted EBITDAC and Adjusted EBITDAC Margin ”.

Adjusted EBITDAC and Adjusted EBITDAC Margin

We define Adjusted EBITDAC as Net income before Interest expense, net, Income tax expense, Depreciation,

Amortization, and Change in contingent consideration, adjusted to reflect items such as (i) equity-based compensation, (ii)

acquisition and restructuring related expenses, and (iii) other exceptional or non-recurring items, as applicable.

Acquisition-related expense includes one-time diligence, transaction-related, and integration costs. For the year

ended December 31, 2024, Acquisition-related expense included a $4.5 million charge related to a deal-contingent foreign

exchange forward contract associated with the Castel acquisition. The remaining charges in the three years presented

represent typical one-time diligence, transaction-related, and integration costs. Acquisition-related long-term incentive

compensation arises from long-term incentive plans associated with acquisitions. These plans require service requirements,

and in some cases performance targets, to be achieved in order to be earned. Restructuring and related expense for the years

ended December 31, 2024 and 2023, consisted of compensation and benefits, occupancy, contractors, professional services,

and license fees related to the ACCELERATE 2025 program, which concluded at the end of 2024. The compensation and

benefits expense included severance as well as employment costs related to services rendered between the notification and

termination dates and other termination payments. Amortization and expense is composed of charges related to

discontinued prepaid incentive programs. For the year ended December 31, 2025, Other non-operating loss (income)

consisted of $0.6 million of seller reimbursement of acquisition-related retention incentives, $0.6 million of sublease

income, and $0.4 million of forfeitures of vested equity awards offset by $1.1 million of TRA contractual interest and

related charges. For the year ended December 31, 2024, Other non-operating loss (income) consisted of $18.1 million of

expense related to Term Loan modifications and $1.3 million of TRA contractual interest and related charges offset by $3.4

million of income related to a decrease in our blended state tax rates and foreign tax credit impact on the TRA

remeasurement and $0.5 million of sublease income. For the year ended December 31, 2023, Other non-operating loss

(income) included a $10.4 million charge related to the change in the TRA liability caused by a change in our blended state

tax rates. Equity-based compensation reflects non-cash equity-based expense. IPO related expenses include compensation-

related expense primarily related to the expense for new awards issued at IPO as well as expense related to the revaluation

of existing equity awards at IPO.

Total revenue less Adjusted compensation and benefits expense and Adjusted general and administrative

expense is equivalent to Adjusted EBITDAC. For a breakout of compensation and general and administrative costs for each

addback, refer to the Adjusted compensation and benefits expense and Adjusted general and administrative expense tables

above. The most directly comparable GAAP financial metric to Adjusted EBITDAC is Net income. Adjusted EBITDAC

margin is defined as Adjusted EBITDAC as a percentage of Total revenue. The most comparable GAAP financial metric is

Net income margin.

Table of Contents

A reconciliation of Adjusted EBITDAC and Adjusted EBITDAC margin to Net income and Net income

margin, the most directly comparable GAAP measures, for each of the periods indicated is as follows:

Year Ended December 31,

(in thousands, except percentages)

Total Revenue

Net Income

Interest expense, net

Income tax expense

Depreciation

Amortization

Change in contingent consideration (1)

EBITDAC

Acquisition-related expense

Acquisition related long-term incentive compensation (2)

Restructuring and related expense

Amortization and expense related to discontinued prepaid incentives

Other non-operating loss (income)

Equity-based compensation

IPO related expenses

Income from equity method investments

Adjusted EBITDAC

Net Income Margin

Adjusted EBITDAC Margin

(1) For the year ended December 31, 2024, Change in contingent consideration included a $25.5 million decrease in

valuation of the US Assure contingent consideration as a result of increased loss ratios impacting projected profit

commissions.

(2) For the year ended December 31, 2023, Acquisition related long-term incentive compensation includes a $6.8 million

expense reversal related to the clawback of an All Risks LTIP payment from a terminated employee.

Adjusted Net Income and Adjusted Net Income Margin

We define Adjusted net income as tax-effected earnings before amortization and certain items of income and

expense, gains and losses, equity-based compensation, acquisition related long-term incentive compensation, acquisition-

related expenses, costs associated with the IPO, and certain exceptional or non-recurring items. The most comparable

GAAP financial metric is Net income. Adjusted net income margin is calculated as Adjusted net income as a percentage of

Total revenue. The most comparable GAAP financial metric is Net income margin.

Following the IPO, the Company is subject to United States federal income taxes, in addition to state, local, and

foreign taxes, with respect to our allocable share of any net taxable income of the LLC. For comparability purposes, this

calculation incorporates the impact of federal and state statutory tax rates on 100% of our adjusted pre-tax income as if the

Company owned 100% of the LLC.

Table of Contents

A reconciliation of Adjusted net income and Adjusted net income margin to Net income and Net income

margin, the most directly comparable GAAP measures, for each of the periods indicated is as follows:

Year Ended December 31,

(in thousands, except percentages)

Total Revenue

Net Income

Income tax expense

Amortization

Amortization of deferred debt issuance costs (1)

Change in contingent consideration

Acquisition-related expense

Acquisition related long-term incentive compensation

Restructuring and related expense

Amortization and expense related to discontinued prepaid incentives

Other non-operating loss (income)

Equity-based compensation

IPO related expenses

Income from equity method investments

Adjusted Income before Income Taxes (2)

Adjusted tax expense (3)

Adjusted Net Income

Net Income Margin

Adjusted Net Income Margin

(1) Interest expense, net includes amortization of deferred debt issuance costs.

(2) Adjustments to Net income are described in the definition of Adjusted EBITDAC to Net income in “Adjusted

EBITDAC and Adjusted EBITDAC Margin.”

(3) The Company is subject to United States federal income taxes, in addition to state, local, and foreign taxes, with

respect to our allocable share of any net taxable income of the LLC. For the years ended December 31, 2025 and 2024,

this calculation of adjusted tax expense is based on a federal statutory rate of 21% and a combined state income tax

rate net of federal benefits of 5.00% on 100% of our adjusted income before income taxes as if the Company owned

100% of the LLC. For the year ended December 31, 2023 , this calculation of adjusted tax expense is based on a federal

statutory rate of 21% and a combined state income tax rate net of federal benefits of 5.12% on 100% of our adjusted

income before income taxes as if the Company owned 100% of the LLC.

Adjusted Diluted Earnings Per Share

We define Adjusted diluted earnings per share as Adjusted net income divided by diluted shares outstanding

after adjusting for the effect if 100% of the outstanding LLC Common Units (together with the shares of Class B common

stock), vested Class C Incentive Units, vested but unexercised Options, and unvested equity awards were exchanged into

shares of Class A common stock as if 100% of unvested equity awards were vested. The most directly comparable GAAP

financial metric is Diluted earnings per share.

Table of Contents

A reconciliation of Adjusted diluted earnings per share to Diluted earnings per share, the most directly

comparable GAAP measure, for each of the periods indicated is as follows:

Year Ended December 31,

Earnings per share of Class A common stock – diluted

Less: Net income attributed to dilutive shares and substantively vested

RSUs (1)

Plus: Impact of all LLC Common Units exchanged for Class A shares

Plus: Adjustments to Adjusted net income (3)

Plus: Dilutive impact of unvested equity awards (4)

Adjusted diluted earnings per share

(Share count in ’000s)

Weighted-average shares of Class A common stock outstanding –

diluted

Plus: Impact of all LLC Common Units exchanged for Class A shares

Plus: Dilutive impact of unvested equity awards (4)

Adjusted diluted earnings per share diluted share count

(1) Adjustment removes the impact of Net income attributed to dilutive awards and substantively vested RSUs to arrive at

Net income attributable to Ryan Specialty Holdings, Inc. For the years ended December 31, 2025 , 2024 , and 2023 , this

removes $0.9 million , $0.3 million , and $4.2 million of Net income, respectively, on 138.2 million , 132.9 million , and

125.7 million Weighted-average shares of Class A common stock outstanding - diluted, respectively. See “ Note 11 ,

Earnings Per Share ” in the footnotes to the consolidated financial statements in this Annual Report.

(2) For comparability purposes, this calculation incorporates the Net income that would be outstanding if all LLC

Common Units (together with shares of Class B common stock) were exchanged for shares of Class A common stock.

For the years ended December 31, 2025 , 2024 , and 2023 , this includes $150.8 million , $135.2 million , and

$133.4 million of Net income, respectively, on 273.7 million , 271.9 million , and 268.1 million Weighted-average

shares of Class A common stock outstanding - diluted, respectively. See “ Note 11 , Earnings Per Share ” in the

footnotes to the consolidated financial statements in this Annual Report.

(3) Adjustments to Adjusted net income are described in the footnotes of the reconciliation of Adjusted net income to Net

income in “Adjusted Net Income and Adjusted Net Income Margin” on 273.7 million , 271.9 million , and 268.1 million

Weighted-average shares of Class A common stock outstanding - diluted years ended December 31, 2025 , 2024 , and

2023 , respectively.

(4) For comparability purposes and to be consistent with the treatment of the adjustments to arrive at Adjusted net income,

the dilutive effect of unvested equity awards as well as outstanding vested options and Class C Incentive Units is

calculated using the treasury stock method as if the weighted-average unrecognized cost associated with the awards

was $0 over the period, less any unvested equity awards determined to be dilutive within the Diluted EPS calculation

disclosed in “ Note 11 , Earnings Per Share ” of the audited consolidated financial statements. For the years ended

December 31, 2025 , 2024 , and 2023 , 5.4 million , 4.4 million , and 4.1 million shares were added to the calculation,

respectively.

Liquidity and Capital Resources

Liquidity describes the ability of a company to generate sufficient cash flows to meet the cash requirements of

its business operations. We believe that the balance sheet and strong cash flow profile of our business provides adequate

liquidity. The primary sources of liquidity are Cash and cash equivalents on the Consolidated Balance Sheets, cash flows

provided by operations, and debt capacity available under our Revolving Credit Facility, Term Loan, and Senior Secured

Notes. The primary uses of liquidity are operating expenses, seasonal working capital needs, business combinations, capital

expenditures, obligations under the TRA, taxes, distributions to LLC Unitholders, share repurchases, and dividends to

Table of Contents

Class A common stockholders. We believe that Cash and cash equivalents, cash flows from operations, and amounts

available under our Revolving Credit Facility will be sufficient to meet liquidity needs, including principal and interest

payments on debt obligations, capital expenditures, and anticipated working capital requirements, for the next 12 months

and beyond. Our future capital requirements will depend on many factors including continuance of historical working

capital levels and capital expenditure needs, investment in de novo offerings, and the flow of deals in our merger and

acquisition program.

On February 12, 2026 , our Board declared and increased the Company’s regular quarterly dividend by 8.3% to

$0.13 per share on the outstanding Class A common stock. With respect to this regular quarterly dividend, $0.07 of the

regular quarterly dividend is to be funded by current and prior tax distributions from the LLC that are in excess of both the

corporate income taxes payable by the Company as well as the Company’s obligations pursuant to the Tax Receivable

Agreement. The remaining $0.06 of the regular quarterly dividend is to be funded by free cash flow from the LLC and paid

to all holders of the Class A common stock and LLC Common Units.

On February 12, 2026, our Board approved a share repurchase program that authorizes the Company to

repurchase up to $300 million of its outstanding Class A common stock. Share repurchases may be made from time to time

on the open market, in privately negotiated transactions, using Rule 10b5-1 trading plans, as accelerated share repurchases,

or in any other manner that complies with the applicable securities law. The timing of purchases and number of shares

repurchased under the program will depend upon a variety of factors including the Company’s stock price, trading volume,

working capital or other liquidity requirements, and market conditions. The Company is not obligated to purchase any

shares under the program and the program may be suspended or discontinued at any time without notice.

We may be required to seek additional equity or debt financing. In the event that additional financing is

required from outside sources, we may not be able to raise it on terms acceptable to us or at all. If we are unable to raise

additional capital or generate cash flows necessary to expand our operations, this could reduce our ability to compete

successfully and harm the results of our operations.

Cash and cash equivalents on the Consolidated Balance Sheets include funds available for general corporate

purposes. Fiduciary cash and receivables cannot be used for general corporate purposes. Insurance premiums, claims funds,

and surplus lines taxes are held in a fiduciary capacity and the obligation to remit these funds are recorded as Fiduciary

liabilities on the Consolidated Balance Sheets. We recognize fiduciary amounts due to others as Fiduciary liabilities and

fiduciary amounts collectible and held on behalf of others, including insurance carriers, other insurance intermediaries,

surplus lines taxing authorities, clients, and insurance policy holders, as Fiduciary cash and receivables on the Consolidated

Balance Sheets.

In our capacity as an insurance broker or agent, we collect premiums from insureds and, after deducting our

commission, remit the premiums to the respective insurance markets and carriers. We also collect claims prefunding or

refunds from carriers on behalf of insureds, which are then returned to the insureds, and surplus lines taxes, which are then

remitted to surplus lines taxing authorities. Insurance premiums, claims funds, and surplus lines taxes are held in a

fiduciary capacity. The levels of Fiduciary cash and receivables and Fiduciary liabilities can fluctuate significantly

depending on when we collect the premiums, claims prefunding, and refunds, make payments to markets, carriers, surplus

lines taxing authorities, and insureds, and collect funds from clients and make payments on their behalf, and upon the

impact of foreign currency movements. Fiduciary cash, because of its nature, is held in very liquid securities with a focus

on preservation of principal. To minimize counterparty investment risk, we maintain cash holdings pursuant to an fiduciary

holdings policy which contemplates all relevant rules established by states with regard to fiduciary cash and is approved by

our Board of Directors. The policy requires broad diversification of holdings across a variety of counterparties utilizing

limits set by our Board of Directors, primarily based on credit rating and type of investment. Fiduciary cash and receivables

included cash of $1,426.1 million and $1,140.6 million as of December 31, 2025 and 2024 , respectively, and fiduciary

receivables of $2,872.8 million and $2,599.1 million as of December 31, 2025 and 2024 , respectively. While we may earn

interest income on fiduciary cash held in cash and investments, the fiduciary cash may not be used for general corporate

purposes. Of the $158.3 million of Cash and cash equivalents on the Consolidated Balance Sheet as of December 31, 2025 ,

$91.9 million was held in fiduciary accounts representing collected revenue and was available to be transferred to operating

accounts and used for general corporate purposes.

Credit Facilities

We expect to have sufficient financial resources to meet our business requirements for the next 12 months.

Although cash from operations is expected to be sufficient to service our activities, including servicing our debt and

contractual obligations, and financing capital expenditures, we have the ability to borrow under our Revolving Credit

Table of Contents

Facility to accommodate any timing differences in cash flows. Additionally, under current market conditions, we believe

that we could access capital markets to obtain debt financing for longer-term funding, if needed.

On February 3, 2022, the LLC issued $400.0 million of 8-year Senior Secured Notes. The notes have a 4.375%

interest rate and will mature on February 1, 2030.

On January 19, 2024, we entered into the Fifth Amendment to the Credit Agreement, which reduced the

applicable interest rate of the Term Loan from Adjusted Term SOFR + 3.00% to Adjusted Term SOFR + 2.75% and no

longer contains a credit spread adjustment. All other material provisions remain unchanged.

On July 30, 2024, the Company entered into the Sixth Amendment to the Credit Agreement, which provided for

an increase in borrowing capacity under the Revolving Credit Facility from $600.0 million to $1,400.0 million. The

amendment also extended the maturity date of the Revolving Credit Facility to July 30, 2029, and reduced the applicable

interest rate from Adjusted Term SOFR plus a margin of 2.50% to 3.00% to Adjusted Term SOFR plus a margin of 2.00%

to 2.50%, based on the first lien net leverage ratio defined in the Credit Agreement.

On September 13, 2024, the Company entered into the Seventh Amendment to the Credit Agreement, which

refinanced the existing Term Loan in the aggregate principal amount of $1,588.1 million outstanding as of June 30, 2024,

and increased the size of the Term Loan by $111.9 million to $1,700.0 million as of September 30, 2024. In addition to

increasing the size of the Term Loan, the Seventh Amendment reduced the applicable interest rate of the Term Loan from

Adjusted Term SOFR plus a margin of 2.75% to Adjusted Term SOFR plus a margin of 2.25% and lowered the 75 basis

point floor on Adjusted Term SOFR to a 0 basis point floor. In August 2025, Moody’s Ratings upgraded the Company’s

credit rating from B1 to Ba3. As a result, the applicable interest rate on the Company’s Term Loan decreased from

Adjusted Term SOFR + 2.25% to Adjusted Term SOFR + 2.00%.

On September 19, 2024, the LLC issued $600.0 million of 8-year Senior Secured Notes. On December 9, 2024,

the LLC issued an additional $600.0 million of its 2032 Senior Secured Notes as “additional notes” under a supplement to

the indenture dated as of September 2024. All of the 2032 Senior Secured Notes carry a 5.875% interest rate and will

mature on August 1, 2032.

As of December 31, 2025 , the interest rate on the Term Loan was 2.00% plus Adjusted Term SOFR.

As of December 31, 2025 , we were in compliance with all of the covenants under our debt facilities and there

were no events of default for the year ended December 31, 2025 .

Tax Receivable Agreement

The Company is party to a TRA with current and certain former LLC Unitholders. The TRA provides for the

payment by the Company, to current and certain former LLC Unitholders, of 85% of the net cash savings, if any, in U.S.

federal, state, and local income taxes that the Company realizes (or is deemed to realize in certain circumstances) as a result

of (i) certain increases in the tax basis of the assets of the LLC resulting from purchases or exchanges of LLC Common

Units (“Exchange Tax Attributes”), (ii) certain tax attributes of the LLC that existed prior to the IPO (“Pre-IPO M&A Tax

Attributes”), (iii) certain favorable “remedial” partnership tax allocations to which the Company becomes entitled to (if

any), and (iv) certain other tax benefits related to the Company entering into the TRA, including tax benefits attributable to

payments that the Company makes under the TRA (“TRA Payment Tax Attributes”). The Company recognizes a liability

on the Consolidated Balance Sheets based on the undiscounted estimated future payments under the TRA.

Due to the uncertainty of various factors, we cannot precisely quantify the likely tax benefits we will realize as

a result of the LLC Common Unit exchanges and the resulting amounts we are likely to pay out to current and certain

former LLC Unitholders pursuant to the TRA; however, we estimate that such tax benefits and the related TRA payments

may be substantial. As set forth in the table below, and assuming no changes in the relevant tax law and that we earn

sufficient taxable income to realize all cash tax savings that are subject to the TRA, we expect future payments under the

TRA to be $459.0 million in aggregate as of December 31, 2025 . Future payments in respect to subsequent exchanges

would be in addition to these amounts and are expected to be substantial. The foregoing amounts are merely estimates and

the actual payments could differ materially. In the highly unlikely event of an early termination of the TRA (e.g., a default

by the Company or a Change of Control) the Company is required to pay to each holder of the TRA an early termination

payment equal to the discounted present value of all unpaid TRA payments. The Company has not made, and is not likely

to make, an election for an early termination. We expect to fund future TRA payments with tax distributions from the LLC

that come from cash on hand and cash generated from operations.

Table of Contents

(in thousands)

Exchange Tax

Attributes

Pre-IPO M&A

Tax Attributes

TRA Payment

Tax Attributes

TRA

Liabilities

Balance at December 31, 2024

Exchange of LLC Common Units

Interest expense

Payments

Balance at December 31, 2025

Total expected estimated tax savings from each of the tax attributes associated with the TRA as of

December 31, 2025 were $540.0 million consisting of (i) Exchange Tax Attributes of $320.0 million , (ii) Pre-IPO M&A

Tax Attributes of $91.0 million , and (iii) TRA Payment Tax Attributes of $129.0 million . The Company will retain the

benefit of 15% of these cash savings.

Comparison of Cash Flows for the Year Ended December 31, 2025 and 2024

Cash and cash equivalents decreased $381.9 million from $540.2 million at December 31, 2024 , to $158.3

million at December 31, 2025 . A summary of our cash flows provided by and used for ongoing operations from operating,

investing, and financing activities is as follows:

Cash Flows From Operating Activities

Net cash provided by operating activities during the year ended December 31, 2025 , increased $128.8 million

from the year ended December 31, 2024 , to $643.7 million . This increase in cash flows provided by operating activities

was driven by increases of $116.6 million in Amortization, $39.1 million in Deferred income tax expense from common

control reorganizations, and $38.6 million related to Other current and non-current assets and Other current and non-

current liabilities. These increases were partially offset by the change in Commissions and fees receivable - net of $35.6

million , a decline in Net income of $15.8 million , and a decrease of Amortization of deferred debt issuance costs of $14.4

million .

Cash Flows From Investing Activities

Cash flows used in investing activities during the year ended December 31, 2025 , were $834.0 million , a

decrease of $921.7 million compared to the $1,755.7 million of cash flows used for investing activities during the year

ended December 31, 2024 . The main drivers of the cash flows used for investing activities for the year ended December 31,

2025 , were $746.5 million of Business combinations - net of cash acquired and cash held in a fiduciary capacity, Capital

expenditures of $68.0 million , $16.6 million of an Equity method investment in VSIC, and $3.0 million related to Asset

acquisitions. The main drivers of the cash flows used for investing activities for the year ended December 31, 2024, were

$1,708.7 million of Business combinations - net of cash acquired and cash held in a fiduciary capacity and $47.0 million of

capital expenditures.

Cash Flows From Financing Activities

Cash flows provided by financing activities during the year ended December 31, 2025 , were $78.1 million , a

decrease of $1,088.7 million compared to cash flows provided by financing activities of $1,166.9 million during the year

ended December 31, 2024 . The main drivers of cash flows provided by financing activities during the year ended

December 31, 2025 , were $237.6 million Net change in fiduciary liabilities, net Borrowings on Revolving Credit Facility

of $71.4 million, and $35.9 million of Receipt of taxes related to net share settlement of equity awards offset by $64.1

million of Tax distributions to non-controlling LLC Unitholders, $62.3 million of Class A common stock dividends and

Dividend Equivalents paid, $37.0 million of Taxes paid related to net share settlement of equity awards, $29.3 million of

Payment of contingent consideration, $27.2 million of Distributions and Declared Distributions paid to non-controlling

LLC Unitholders, $25.2 million of Payment of Tax Receivable Agreement liabilities during the year, and $17.0 million of

Repayment of term debt. The main drivers of cash flows provided by financing activities during the year ended December

31, 2024, were $1,187.4 million of Proceeds from Senior Secured Notes, $114.0 million Net change in fiduciary liabilities,

and $107.6 million of Proceeds from term debt offset by $82.7 million of Tax distributions to non-controlling LLC

Unitholders, $80.2 million of Class A common stock dividends and Dividend Equivalents paid, $25.5 million of Debt

issuance costs paid, $22.2 million of Distributions and Declared Distributions paid to non-controlling LLC Unitholders,

and $21.6 million of Payment of Tax Receivable Agreement liabilities during the year.

Table of Contents

Contractual Obligations and Commitments

Our principal commitments consist of contractual obligations in connection with investing and operating

activities. These obligations are described within “ Note 8 , Debt ” in the notes to our audited consolidated financial

statements in this Annual Report, where we provide further description on provisions that create, increase or accelerate

obligations, or other pertinent data to the extent necessary for an understanding of the timing and amount of the specified

contractual obligations.

The Company recognized a liability for employee deferrals, inclusive of changes in the value of deferred

amounts held, of $8.0 million and $50.8 million in Current accrued compensation and Non-current accrued compensation,

respectively, on the Consolidated Balance Sheets as of December 31, 2025 , and $5.2 million and $36.5 million in Current

accrued compensation and Non-current accrued compensation, respectively, on the Consolidated Balance Sheets as of

December 31, 2024 . The timing of when employees elect to make withdrawals from the deferred compensation plan is

uncertain, however employees are not allowed to make a withdrawal for three years from the deferral date and must

withdraw all deferred compensation balances within ten years of the deferral date.

Within Current accrued compensation and Non-current accrued compensation we have various long-term

incentive compensation agreements accrued for. These agreements are typically associated with an acquisition. Below we

have outlined the liabilities accrued as of December 31, 2025 , the projected future expense, and the projected timing of

future cash outflows associated with these arrangements.

Long-term Incentive Compensation Agreements

(in thousands)

December 31, 2025

Current accrued compensation

Non-current accrued compensation

Total liability

Projected future expense

Total projected future cash outflows

Projected Future Cash Outflows

(in thousands)

Thereafter

Table of Contents

Within “ Note 4 , Mergers and Acquisitions ” in the notes to our audited consolidated financial statements in this

Annual Report we outline various contingent consideration arrangements and their impact. Below we have outlined the

liabilities accrued as of December 31, 2025 , the projected future expense, and the projected timing of future cash outflows

associated with these contingent consideration agreements.

Contingent Consideration

(in thousands)

December 31, 2025

Current accounts payable and accrued liabilities

Other non-current liabilities

Total liability

Projected future expense

Total projected future cash outflows

Projected Future Cash Outflows

(in thousands)

Thereafter

Critical Accounting Policies and Estimates

The methods, assumptions, and estimates that we use in applying the accounting policies may require us to

apply judgments regarding matters that are inherently uncertain. We consider an accounting policy to be a critical estimate

if (i) the Company must make assumptions that were uncertain when the judgment was made and (ii) changes in the

estimate assumptions or selection of a different estimate methodology could have a significant impact on our financial

position and the results that we report in the consolidated financial statements. While we believe that the estimates,

assumptions, and judgments are reasonable, they are based on information available when the estimate was made. Refer to

“ Note 2 , Summary of Significant Accounting Policies ” in the consolidated financial statements in this Annual Report for

further information on the critical accounting estimates and policies.

Business Combinations

The Company accounts for transactions that represent business combinations under the acquisition method of

accounting, which requires us to allocate the total consideration transferred for each acquisition to the assets we acquire

and liabilities we assume based on their fair values as of the date of acquisition, including identifiable intangible assets.

The allocation of the consideration utilizes significant estimates in determining the fair values of identifiable assets

acquired, which mainly consist of customer relationship intangible assets. The significant assumptions used in determining

the fair value of customer relationships include estimated revenue growth, attrition rates, operating margins, and weighted-

average cost of capital. These estimates directly impact the amount of identified intangible assets recognized and the

related amortization expense in future periods. As of December 31, 2025 and 2024 , an aggregate of $1,496.9 million and

$1,392.0 million , respectively, of Customer relationships was recorded on the Consolidated Balance Sheets.

The excess of purchase price over the fair value of assets acquired and liabilities assumed is recorded as

goodwill. We may refine our estimates and make adjustments to the assets acquired and liabilities assumed over a

measurement period, not to exceed one year from the date of acquisition.

Acquired Customer Relationships

We review acquired intangible assets that are being amortized for impairment whenever events or changes in

circumstance indicate that their carrying amount may not be recoverable. We have not made any material changes in the

accounting methodology used to evaluate the impairment of goodwill or amortizable intangible assets during the last three

fiscal years. Qualitative factors considered include any adverse developments in regulation, unfavorable market conditions,

or the extent to which an asset will be utilized. As we continue to experience revenue growth driven by the increase in

complexity and inflow of risks into the specialty and E&S markets, we do not believe there is a reasonable likelihood there

Table of Contents

will be a material change in the estimates or assumptions used to calculate impairments or useful lives of amortizable

intangible assets. However, if actual results are not consistent with our estimates and assumptions, we may be exposed to

an acceleration of amortization or impairment losses that could be material.

Contingent Consideration

The Company recognizes contingent consideration liabilities and contingently returnable consideration resulting

from certain business combinations. We estimate the fair value of these contingent consideration arrangements using Level

3 inputs that require the use of numerous assumptions and Monte Carlo simulations, which may change based on the

occurrence of future events and lead to increased or decreased operating income in future periods. Estimating the fair value

at the acquisition date and in subsequent periods involves significant judgments, including projecting the future financial

performance of the acquired businesses. The Company updates its assumptions each reporting period based on new

developments and records such amounts at fair value based on the revised assumptions. For significant acquisitions we

may use independent third-party valuation specialists to assist us in determining the fair value of assets acquired and

liabilities assumed. Refer to “ Note 14 , Fair Value Measurements ” in the consolidated financial statements in this Annual

Report for further information on the assumptions used in the fair value of contingent consideration.

As of December 31, 2025 , the Company had nine contingent consideration liability arrangements outstanding,

with an aggregate fair value of $148.4 million . If remaining targets were to be met for these contingent consideration

arrangements, the maximum amount of the liability would be $597.4 million as of December 31, 2025 , and the additional

expense would be recorded over the next 4.3 years in Change in contingent consideration within the Consolidated

Statements of Income. As of December 31, 2025 , the Company had one contingently returnable consideration arrangement

outstanding for $6.6 million . The maximum amount of the asset would be $13.5 million as of December 31, 2025 , if certain

targets were not achieved, and the additional income would be recorded over the next 1.3 years in Change in contingent

consideration within the Consolidated Statements of Income. Refer to “ Note 4 , Mergers and Acquisitions ” in the

consolidated financial statements in this Annual Report for further information on business combinations and contingent

consideration.

Income Taxes

As of December 31, 2025 and 2024 , $310.1 million and $448.3 million , respectively, of Deferred tax assets

were recorded on the Consolidated Balance Sheets. Deferred income taxes are recognized for the expected future tax

consequences attributable to temporary differences between the carrying amount of the existing tax assets and liabilities

and their respective tax basis. The primary item giving rise to temporary differences is the Company’s investment in the

LLC. As of December 31, 2025 and 2024 , the Company’s deferred tax asset in the Company’s investment in the LLC was

$288.0 million and $429.9 million , respectively.

In determining the provision for income taxes, we make estimates and judgments which affect our evaluation of

the carrying value of our deferred tax assets as well as our calculation of certain tax liabilities. We evaluate these assets on

a quarterly basis to conclude whether they are more likely than not to be realized. In completing this evaluation related to

the Company’s deferred tax asset in the investment in the LLC, we consider all available positive and negative evidence,

including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning

strategies, carryback potential if permitted under the applicable tax law, and results of recent operations. Projected future

taxable income is based on Board-approved budgets and long-term assumptions, which include revenue growth and

operating margins, among other factors. Estimating future taxable income is inherently uncertain and requires judgment.

We exclude any projected M&A activity from this evaluation.

To the extent we do not generate sufficient federal taxable income to realize a deferred tax asset in any given

year, it would result in a federal net operating loss (“NOL”) that is available to us to utilize over an indefinite carryforward

period to fully realize the deferred tax assets. Given our historical ability to generate federal taxable income and our

projected future taxable income, and the indefinite carryforward period available for federal NOLs, we consider it more

likely than not that we will realize this deferred tax asset. If we determine in the future that we will not be able to fully

utilize all or part of this deferred tax asset, we would record a valuation allowance through earnings in the period the

determination was made, which would have an adverse effect on our results of operations and earnings in those future

periods.

Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. Other

than those potential impacts, we do not believe there is a reasonable likelihood there will be a material change in our tax

related balances or valuation allowances. However, due to the complexity of some of these uncertainties, the ultimate

resolution may result in a payment that is materially different from the current estimate of the tax liabilities.

Table of Contents

Tax Receivable Agreement Liabilities

In connection with the Organizational Transactions and IPO, the Company entered into a TRA with current and

certain former LLC Unitholders. Amounts payable under the TRA are contingent upon, among other things, (i) the

generation of future taxable income over the term of the TRA and (ii) future changes in tax laws, including tax rate

changes. If we do not generate sufficient taxable income in the aggregate over the term of the TRA to utilize the tax

benefits, then we would not be required to make the related TRA payments. Therefore, we only recognize a liability for

TRA payments if we determine it is probable that we will generate sufficient future taxable income over the term of the

TRA to utilize the related tax benefits. Projecting future taxable income is inherently uncertain and requires judgment. In

projecting future taxable income, we consider our historical results and incorporate assumptions from our Board-approved

budgets and longer-term assumptions, which include revenue growth and operating margins, among other factors. We

exclude any projected M&A activity from this evaluation.

As of December 31, 2025 and 2024 , we recognized $459.0 million and $436.3 million , respectively, of

liabilities relating to our obligations under the TRA, after concluding that it was probable that we would have sufficient

future taxable income to utilize the related tax benefits. There were no transactions subject to the TRA for which we did not

recognize the related liability, as we concluded that we would have sufficient future taxable income to utilize all of the

related tax benefits that have been generated since the IPO. If a valuation allowance is recorded against the deferred tax

assets subject to the TRA in a future period, the corresponding TRA liability may not be considered probable, resulting in

the liability being removed from the Consolidated Balance Sheets and recorded in Other non-operating loss (income) on

the Consolidated Statements of Income. Refer to “ Note 17 , Income Taxes ” in the consolidated financial statements in this

Annual Report for further information on the estimates involved in income taxes and the TRA liability.

Recent Accounting Pronouncements

For a description of recently issued accounting pronouncements see “ Note 2 , Summary of Significant

Accounting Policies ” in the footnotes to the consolidated financial statements in this Annual Report.

Table of Contents