Ryan Specialty Revenue Growth Slows as Restructuring Costs Hit Income
The specialty insurance broker reported second-quarter net income of $108.4 million, a 13.1% decline from the prior-year period.
Ryan Specialty Holdings (RYAN) reported a deceleration in revenue growth and a decline in net income for the second quarter, as the company implemented a new restructuring initiative.
The insurance broker saw total revenue grow 7.2% year-over-year to $916.6 million. This represented a slowdown from the 15.2% growth rate reported in the first quarter. Organic revenue growth also cooled to 6.7% year-over-year, down from 11.8% in the previous quarter and 7.1% in the same period last year.
Net income decreased 13.1% year-over-year to $108.4 million, compared to $124.7 million in the prior-year period. Higher total operating expenses, which rose 10.9% year-over-year to $736.3 million, were due in part to a new "Empower Program" restructuring charge.
Despite the dip in net income, adjusted diluted EPS grew 12.1% year-over-year to $0.74, up from $0.66 a share in the prior-year period. The adjusted EBITDAC margin for the quarter was 35.7%, an increase from the 29.2% reported in the first quarter, though slightly lower than the 36.1% margin from the prior-year period.
Growth was uneven across business lines. Underwriting Management was the fastest-growing segment, with net commissions and fees increasing 12.8% year-over-year. This outperformed the Binding Authority segment, which grew 6.0%, and Wholesale Brokerage, which rose 4.5%.
Ryan Specialty maintained its full-year 2026 organic revenue growth guidance in the mid-single digits. However, the company updated its full-year adjusted EBITDAC margin guidance, projecting a decrease of 50 to 100 basis points compared to the prior year.
The company expanded its share repurchase authorization by an additional $300 million during the quarter. This follows a previous $300 million authorization announced in the fourth quarter of 2025.