Ryan Specialty Reports Revenue Growth Despite Net Loss in Q1 2025
Ryan Specialty Holdings, Inc., an international specialty insurance provider, reported a 25% increase in revenue for the first quarter of 2025, reaching $690.2 million, up from $552 million in the same period last year. Despite this significant revenue growth, the company reported a net loss of $4.4 million, compared to a net income of $40.7 million in the previous year.
The organic revenue growth for the quarter was 12.9%, slightly down from 13.7% in the first quarter of 2024. Operating expenses for Q1 2025 rose 23.1%, totaling $589.9 million, primarily due to increased compensation and benefits expenses associated with headcount growth and higher general and administrative costs.
On a positive note, adjusted earnings before interest, taxes, depreciation, amortization, and change in the fair value of contingent consideration (EBITDAC) increased by 27.5%, totaling $200.5 million, compared to $157.2 million in Q1 2024. Adjusted net income grew by 13%, reaching $107.8 million, while adjusted diluted earnings per share increased by 11.4%, to $0.39.
Ryan Specialty’s founder and executive chairman, Patrick G. Ryan, highlighted the company’s performance in the first quarter, driven by solid organic growth and contributions from recent mergers and acquisitions (M&A). He also noted a decline in fiduciary investment income as a partial offset. The company’s total net commissions and fees reached $676.1 million, reflecting a 25.7% year-over-year increase, driven by strong performance in wholesale brokerage, binding authorities, and underwriting management.
CEO Tim Turner expressed confidence in the company’s ability to navigate the current economic environment, citing the firm’s diverse range of products and the resilience of the specialty and excess & surplus (E&S) markets. As of March 31, Ryan Specialty had $203.5 million in cash and cash equivalents and outstanding debt of $3.7 billion. The company’s board declared a quarterly dividend of $0.12 per share, payable on May 27 to shareholders of record as of May 13.
The company also announced the completion of its acquisition of certain assets of USQRisk Holdings, which will be integrated into Ryan Specialty’s alternative risk business. Looking ahead, Ryan Specialty maintained its 2025 outlook, expecting organic revenue growth of 11% to 13% and an adjusted EBITDAC margin of between 32.5% and 33.5%.
