BWIN

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the 2% organic revenue growth to 'idiosyncratic headwinds,' noting that normalized growth would be 8% when including recent partnerships and adjusting for accounting changes. The CAC merger is exceeding expectations, with management citing 'industrial logic' in combining complex risk expertise with Baldwin's broader distribution network to take market share from global brokers. A 240-basis-point headwind in client retention within the legacy Insurance Advisory Solutions (IAS) business resulted from structural changes and compensation alignment during the CAC integration. MGA/TPA growth of 56% was driven by strong performance in multifamily and admitted home products, though partially offset by softness in E&S home books and lower reinsurance brokerage revenue. The '3D30 Catalyst' program is utilizing AI to standardize complex workflows, with management reporting a reduction in run-rate costs for specific processes from $3 million to $1 million. Management views Q2 as the 'trough' for rate and exposure headwinds, primarily due to the timing of cat-exposed property renewals in a deeply soft property market. Full-year organic revenue growth is now anticipated in the mid-single digits, with an expected exit rate in Q4 of high-single digits or greater as transitory headwinds abate. The legacy IAS business faces a $4 million to $5 million revenue impact in the second half of the year due to attrition from structural integration changes, though this is expected to be offset by CAC outperformance. Management expects a 'step function increase' in organic growth for the IAS segment as the business moves past integration-related noise and laps procedural accounting changes. Future growth vectors include the launch of a second proprietary builder program with Hippo and Spinnaker by year-end and the continued expansion of the Brev reciprocal exchange into new states. The company maintains a leverage target range of 4x to 4.5x, which will inform the pace of future share repurchases once the firm is back in the market. Integration-related attrition resulted in approximately $8 million of annualized revenue loss tied to a small group of individuals who departed following compensation and redundancy alignments. A procedural accounting change in the IAS segment, which was fully lapped as of June 30, acted as a 150-basis-point headwind to organic growth in the quarter. The company deployed $80 million to repurchase 4 million shares in Q2, utilizing approximately half of its authorized $250 million buyback program to address perceived stock price dislocation. Management explicitly declined to comment on market rumors regarding potential exploration of capital structure alternatives or a leveraged buyout. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated the growth is driven by repeatable pipeline momentum in private equity and large public company mandates rather than idiosyncratic factors. While transactional lines like M&A solutions may have quarter-to-quarter variability, the underlying market share gains against global brokers are viewed as sustainable. The confidence stems from the portfolio's mix; Q2 contains the highest concentration of cat-exposed property renewals, which is the softest segment of the market. Management expects headwinds to abate as the mix shifts toward other lines in the back half of the year, even as the broader casualty market shows signs of ebbing. AI productivity gains are already embedded in the numbers, with 47,000 tasks completed via new models at a 99% quality rate in recent weeks. Specific labor costs for direct bill processing were reduced from $1.2 million to $400,000 through AI-driven optimization. Management believes the intrinsic value of the company is 'in excess of where shares trade today,' justifying the $80 million Q2 repurchase. Future buybacks will be balanced against the 4.5x leverage ceiling, noting they are not currently in the market to buy.

This article first appeared on GuruFocus. Total Revenue: $493 million for the second quarter. Adjusted EBITDA: $117 million, up 37% year-over-year. Adjusted EBITDA Margin: 23.7%, up approximately 110 basis points year-over-year. Adjusted Diluted EPS: $0.48 per share. GAAP Net Loss: $39 million, or $0.42 per diluted share. Adjusted Net Income: $68 million, or $0.48 per fully diluted share. Adjusted Free Cash Flow: $46 million, up 437% year-over-year. Total Organic Revenue Growth: 2% for the quarter; 8% when including the impact of January partnerships and normalizing for idiosyncratic headwinds. Insurance Advisory Solutions (IAS) Organic Revenue Growth: Down 2% in the quarter; 8% excluding the revenue recognition accounting change and integration-related revenue impacts. Underwriting Capacity and Technology Solutions (UCTS) Organic Revenue Growth: 6% in the quarter; 7% including OV as if owned in the prior year period. Main Street Insurance Solutions (MIS) Organic Revenue Growth: 4% in the quarter; approximately 10% normalizing for QBE and Medicare underperformance. CAC Revenue: $94 million in Q2, with growth of 23% compared to the second quarter of 2025. Net Leverage: Approximately 4.5 times at the end of the quarter. Share Repurchases: Deployed an additional $80 million to repurchase approximately 4 million shares. Warning! GuruFocus has detected 6 Warning Signs with BWIN. Is BWIN fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Total revenue grew to $493 million with adjusted EBITDA up 37% year-over-year to $117 million, and adjusted free cash flow surged 437% to $46 million. CAC Group delivered exceptional performance with 23% revenue growth in Q2, 43% year-to-date increase in booked new business, and strong sales velocity of 59%. Underlying organic revenue growth, excluding one-time headwinds and including new partnerships, was 8%, indicating strong momentum in the core business. The company is making significant progress with AI initiatives, converting over 47,000 tasks at a 98%+ quality rate, leading to cost reductions and productivity gains. Main Street Insurance Solutions organic growth improved to 4% in Q2, with normalized growth of approximately 10% excluding QBE and Medicare impacts, driven by strong mortgage and homebuilder momentum. The company repurchased approximately 4 million shares for $80 million, demonstrating confidence in intrinsic value and capital allocation discipline. Organic revenue growth was only 2% in Q2, impacted by a 240 basis point headwind from rate and exposure and a 150 basis point headwind from a procedural accounting change. Legacy IAS organic revenue declined 2% due to integration-related attrition of approximately $8 million in annualized revenue, with an expected $4-5 million impact in the back half of 2026. UCTS organic growth was impacted by a $4 million year-over-year revenue reduction at Juniper Re due to softer reinsurance pricing and a one-time stub cover. Net leverage increased to approximately 4.5 times, at the top end of the company's target range, limiting near-term buyback capacity. The company faces ongoing headwinds from a softening insurance market, particularly in property and casualty lines, which could pressure future rate and exposure growth. GAAP net loss attributable to Baldwin was $39 million in Q2, reflecting significant non-cash charges and one-time expenses. Q: Can you provide an update on the performance of the CAC Group, the sustainability of its strong first-half growth, and the potential for headwinds from tough comps next year? A: Trevor Baldwin (CEO) stated that CAC's extraordinary performance is driven by the industrial logic of the merger, combining expertise in large and complex end-client markets (natural resources, public companies, transaction liability, private equity) with Baldwin's broader distribution network. Growth is broad-based, including over 130 new private equity client accounts and multiple large IPO mandates. While quarter-to-quarter variability is expected due to transactional product lines, the underlying pipeline and new business momentum are repeatable, giving confidence for the back half of the year. Q: Is the $8 million annualized revenue attrition from eliminated redundancies the full extent of the "dissynergies" from the CAC transaction, and will it lap by the end of the year? A: Trevor Baldwin (CEO) confirmed this is the full extent of the impact. The attrition results from aligning practice and product group leaders and compensation models, where some individuals did not receive the same opportunities. He clarified that this is not a true dissynergy, as the revenue is simply showing up in the CAC P&L instead of the legacy IAS P&L. Aggregate revenue across IAS inclusive of CAC is exactly where expected. Q: What gives you confidence that the rate and exposure headwind has troughed, given the softening market? A: Trevor Baldwin (CEO) explained that confidence is less about the rate of travel of underlying insurance rates and more about the composition of the portfolio. Q2 is when the preponderance of cat-exposed property and largest cat property reinsurance renewals occur, and this part of the market is deeply soft. As the mix of business changes going forward, the headwinds are expected to abate. Q: Given the recent share price move and the elevated $80 million buyback in Q2, how should we think about buybacks from here? A: Brad Hale (CFO) stated that the company took advantage of the dislocation in price to repurchase 4 million shares for $80 million. While they continue to see dislocation, they are currently not able to be in the market buying. Future buyback decisions will be balanced against the leverage profile and the communicated range of 4x to 4.5x. Q: Can you elaborate on the UCTS segment's performance, the bounce-back expected in the back half, and the momentum in the renters book? A: Trevor Baldwin (CEO) noted that Q2 was impacted by a $4 million year-over-year reduction at Juniper Re due to risk-adjusted rate decreases and a stub cover. Despite this, Juniper is expected to grow over 20% for the year. The company benefits from lower reinsurance pricing through increased ceding commissions. The renters portfolio continues to perform well with double-digit organic growth, a new large property management software partner going live, and a new co-developed group renters product. Q: Can you break down the expected organic acceleration in the MIS segment, including the homebuilder, mortgage servicer, and Medicare businesses? A: Trevor Baldwin (CEO) stated that the vast majority of Medicare slowdown impacts are behind them, with the impact expected to be close to neutral in the back half. Momentum in the mortgage origination market is incredibly strong, with the Fairway partnership tracking ahead of plan. The integration of the Hippo acquisition is driving margin accretion. Normalized for Medicare and QBE headwinds, organic growth for the segment was 10% in the quarter and year-to-date. Q: Can you give a sense of the magnitude of the uplift from the AIF economics for Bree and where those economics stand today? A: Trevor Baldwin (CEO) explained that the impact is de minimis year-to-date. The AIF fees are roughly 5% of premium, earned ratably over the policy period. As Bree renews more policies, this will grow. As the majority owner, about two-thirds of that 5% inures to Baldwin's benefit, but it is not coming through the top line due to equity method accounting treatment. Q: Are the internal AI productivity gains, previously cited at upwards of 80%, embedded in the current numbers, or are they not showing up in the P&L yet? A: Trevor Baldwin (CEO) confirmed the gains are very much embedded in the numbers. The Catalyst program has converted over 47,000 tasks in the past 17 weeks at a 98%+ quality rate. AI solutions deployed in direct bill processing have improved monthly reconciliation from 90% to 98% and reduced run-rate costs from $3 million to $1 million a year. These are early days, but confidence is growing in the profound impact AI will have. Q: Given the strong sales velocity and retention, are there headwinds to retention from pricing pressures, and what are the drivers of the new business trends? A: Trevor Baldwin (CEO) stated that retention at the legacy IAS business is hovering around 90%, impacted by onetime integration-related revenue impacts. Retention has improved year-over-year for multiple quarters. CAC retention is in excess of 92%. Sales velocity is driven by depth of capability and unique product expertise. The company is taking meaningful share in M&A and private equity sectors, competing and winning against bulge bracket global brokers. Q: Can you provide an update on the 3B/30 program, your ability to reach the goals, and the key initiatives to get there? A: Trevor Baldwin (CEO) stated the company feels good about the path to 3B/30. They will finish the year around $2 billion in revenue, two-thirds of the way there. The path is expected to be equal parts organic and inorganic. Normalized organic growth year-to-date is roughly 10%, in line with expectations. Early AI impacts and market share gains give growing confidence in achieving the aspirational goal. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Thursday, July 30, 2026 at 5:00 p.m. ET Executive Director of Investor Relations - Bonnie Bishop Chief Executive Officer - Trevor Lowry Baldwin Chief Financial Officer - Bradford Lenzie Hale Operator: Good day, and thank you for standing by. Welcome to the Baldwin Group Second Quarter 26 Earnings Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press *11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press *11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Bonnie Bishop, Executive Director of Investor Relations. Please go ahead. Bonnie Bishop: Thank you. Welcome to the Baldwin Group Second Quarter 26 Earnings Call. Today's call is being recorded. Second quarter financial results, supplemental information, and the company's Form 10 Q were issued earlier this afternoon and are available on the company's website at ir.baldwin.com. Please note that remarks made today may include forward looking statements subject to various assumptions risks and uncertainties. Including, for example, our strategy with respect to our capital allocation in the future. The company's actual results may differ materially from those contemplated by such statements. For a more detailed discussion, please refer to the note regarding forward looking statements the company's earnings release and our most recent Form 10 Q both of which are available on the Baldwin website. During the call today, the company may also discuss certain non GAAP financial measures. For a more detailed discussion of these non GAAP financial measures, and historical reconciliation to the most closely comparable GAAP measures, please refer to the company's earnings release and supplemental information both of which have been posted on the company's website at ir.baldwin.com. I will now turn the call over to Trevor Lowry Baldwin, chief executive officer of The Baldwin Group. Trevor Lowry Baldwin: Good afternoon, and thank you for joining us to discuss our second quarter results reported earlier today. I am joined by Bradford L. Hale, Chief Financial Officer and Bonnie Bishop, Executive Director of Investor Relations. We saw continued momentum into the second quarter from the strong start to the year. We delivered total revenue of $493 million adjusted EBITDA of $117 million adjusted EBITDA margin of 24% and adjusted diluted earnings per share of $0.48 Total organic revenue growth was 2%. Layering in the impact of the 3 January partnerships as if they had been owned by the Baldwin Group in the prior comparable period and normalizing to the idiosyncratic headwinds which were largely passed as of the end of the quarter, total organic revenue growth would have been 8%. Collectively, the 3 partnerships grew 25% in the second quarter and 34% through the first 6 months of the year. A truly remarkable performance. Adjusted free cash flow of $46 million was up 437% year over year. In insurance advisory solutions, overall organic revenue growth was down 2%. Deconstructing that figure, sales velocity in the legacy IS business accelerated in the quarter to 19%, bringing year to date sales velocity to 16%. Combined sales velocity, including CAC and Capstone, was 30% for the quarter and 27% year to date. Rate and exposure was a 240 basis point headwind in line with our expectations. As we have shared previously, we expect Q2 to be at or near the trough for rate and exposure headwinds. The procedural accounting change which we fully lapped on sixthirty, was a 150-basis-point headwind. With respect to client retention, we experienced a 240 basis point headwind in the quarter as a result of structural changes we have executed in the legacy IS business as a part of our CAC integration work to align compensation plans, go to market capabilities, and eliminate redundancies across our platform. These changes have resulted in approximately $8 million of annualized revenue attrition, tied to a small group of individuals who were impacted and are no longer with the firm. We anticipate that these changes will impact revenue and organic growth for the legacy IS business in the back half of the year by approximately $4 million to $5 million This is more than offset by the realized outperformance across CAC as a result of the go to market structural alignment. In Q2, CAC generated total revenue of $94 million continuing the strong momentum from the first quarter with growth of 23% in relation to the second quarter of 25. Year to date, CAC has delivered over $80 million in booked new business. up 43% compared to the same period in the prior year. Closed 1 new business, including future effective dates, is over $100 million. sales velocity in the quarter was 59% across all product lines, and 19% for recurring lines of business. While retention was north of 92%. Net growth of transaction related product lines, consist primarily of our transaction liability and certain project specific lines of business, was 44%. Our integration work and synergy captures continues to track ahead of schedule and we remain confident in our ability to deliver the synergy targets laid out. On Slide 14 of our earnings supplement. Taking a step back to look at the underlying momentum in the IS business, including the contribution from our new partnerships, and excluding the idiosyncratic noise associated with the revenue recognition accounting change, and integration related revenue impacts, organic revenue growth would have been 8% in the second quarter. We believe this is far more indicative of the organic growth momentum of our franchise. We continue to see impressive trends in new business in IAS and the thesis supporting the CAC merger is playing out in a faster, and more meaningful way than we anticipated. IS poised for a step function increase in organic growth. MGA/TPA organic revenue growth was 56% in the quarter. Including OVI, as if that business had been owned in the prior year period, organic revenue growth was 7%. We saw strong performance across our multifamily, admitted home and real estate investor products. Partially offset by continued softness in our E and S home book and lower reinsurance brokerage revenue at Juniper Re tied to a softer 6/1 renewal pricing environment which also drove improved commission rates for MSI's E and S homeowners programs that will benefit organic revenue in the back half of the year. Our inaugural reciprocal insurance exchange, Brev, is now licensed in 13 states. And we have begun migrating business in several states outside of Texas. We are making great progress on our second proprietary builder program, with Hippo and Spinnaker and currently expect that to launch in select states by the end of the year. Serving as an exciting growth vector for the business heading into 2027. In our Main Street Insurance Solutions segment, organic revenue growth was 4% in the quarter, improving from a decline of roughly 5% in the first quarter as we lapped the QBE commission rate reduction headwind on May 1. Normalizing to the impacts of QBE and Medicare underperformance, overall organic revenue growth was approximately 10%. Our embedded mortgage business continues to ramp with Fairway Independent Mortgage, our most recent top-10 independent mortgage originator embedded partner, tracking ahead of plan in its first 3 months on the platform. Execution of our 3D30 Catalyst program remains on track, and we are beginning to see the flow through impact associated with the Phase I actions taken in the first quarter. You can find additional information on Slide 13 of our earnings supplement. We believe the timing of this program aligns nicely with the evolution of AI tools and expect AI to be a meaningful driver of reaching our 3D30 aspirational goal. In May, we announced our expanded enterprise relationship with Anthropic, and our firm wide rollout of Claude to enhance colleague productivity, streamline complex workflows, and ultimately drive considerable client impact. While we are still in early innings here, we are already beginning to see measurable results and firmly believe the use of these tools will have profound impacts on our business over the long term. In summary, we are pleased with our second quarter results and the growing momentum that is building in the business as we move past the idiosyncratic headwinds that persisted over the past 12 months. We are confident that the underlying fundamentals of the business, when combined with what are now tailwinds, will accelerate our performance in the back half of 26 and beyond. As the insurance market evolves at a rapid pace, we want to thank our nearly 5 thousand colleagues for adapting and embracing new technologies as we build a dynamic workplace designed to maximize outcomes for our colleagues, clients, and stakeholders. Before I turn it over to Bradford, I wanna acknowledge the rumors in the marketplace around our potential exploration of capital structure alternatives. Consistent with how we have operated in the past we do not comment on market rumors or speculation, and will not be addressing related questions today. With that, I will now turn it over to Bradford who will detail our financial results. Bradford Lenzie Hale: Thanks, Trevor, and good afternoon, everyone. For the second quarter, we generated organic revenue growth of 2%, and total revenue of $493 million Looking at the segment level, organic revenue growth was down 2% in IAS, up 6% in UCTS, and up 4% in MIS. Adjusting for the transitory items Trevor walked through, along with layering in the impact of the 1 partnerships on an as if basis, underlying organic revenue growth would have been 8%. We recorded GAAP net loss attributable to Baldwin for the second quarter of $39 million or GAAP diluted loss per share of $0.42 Adjusted net income for the second quarter which excludes share based compensation, amortization and other onetime expenses, was $68 million or $0.48 per fully diluted share. A table reconciling GAAP net loss attributable to Baldwin to adjusted net income can be found in our earnings release and our 10 Q filed with the SEC. Adjusted EBITDA for the second quarter grew 37% to $117 million compared to $86 million in the prior year period. Adjusted EBITDA margin increased approximately 110 basis points year over year to 23.7% for the quarter. Compared to 22.6% in the prior year period. The approximately 110 basis point margin increase can be attributed to the accretive contribution from CAC inclusive of the cost synergies realized to date and strong margin expansion at MIS as we lap the QBE commission reset and benefited from the Hippo homebuilder distribution network partnership. Adjusted free cash flow for the second quarter was $46 million compared to $9 million in Q2 25, driven by growth in adjusted EBITDA and favorable working capital dynamics. In relation to our guidance of double digit growth for the full year, adjusted free cash flow is up 34% year to date. CAC benefited from an $11 million working capital tailwind in the quarter, a reversal of the roughly $30 million headwind in the first quarter that resulted from assumed bonus and commissions liabilities in the merger. Our full year cash flow trajectory remains on track for double digit growth in 2026. We ended the quarter with net leverage at approximately 4.5x, as we deployed an additional $80 million to repurchase approximately 4 million shares. Therefore, as of the end of Q2, approximately half of our authorized $250 million buyback program has been deployed. Moving on to our third quarter guide, We expect revenue of $485 million to $495 million and organic revenue growth in the mid single digits. We anticipate adjusted EBITDA between $105 million and $110 million and adjusted diluted EPS of $0.42 to $0.46 per share. Looking ahead, our full year consolidated guidance remains largely unchanged, We now anticipate organic revenue growth in the mid single digits for the full year, and exiting the year with Q4 at high single digits or greater. This update to organic growth expectations is tied to the revenue impacts from the structural changes at legacy IS as part of our CAC integration work. To conclude, we are encouraged by the growing momentum we see across the business and the meaningful contribution from our recent partner firms. As we have lapped the idiosyncratic headwinds that persisted over the last 12 months, we anticipate a natural inflection in the second half of 26. Our focus remains on accelerating execution across the platform. Integrating our recent partnerships, and leveraging innovative technology and AI driven solutions to enhance client outcomes and drive long term shareholder value. Trevor Lowry Baldwin: We will now take questions. Operator? Operator: Thank you. Press *11 on your telephone and wait for your name to be announced. And our first question comes from Tommy McJoynt of KBW. Your line is open. Tommy McJoynt-Griffith: Hey, good evening. Thanks for taking our questions. The first 1 here is on the CAC Group performance there. The growth rate has been incredibly strong in the first half of the year. First off, could you just remind us what industries JAC Group is most focused on? And then help us think about the sustainability of the strength in the first half of the year and using that to help us frame, should we expect a potential headwind from that business normalizing like next year? Just against tough comps? Thanks. Trevor Lowry Baldwin: Hey, Tommy, this is Trevor. Yes, I mean, CAC is having an extraordinary start to the year. And there is a number of things that are ultimately driving that. First, I would just point to the industrial logic that we and the leaders across CAC saw when we brought these businesses together in the merger. Combining the depth breadth of expertise in large and complex end client markets, including industries like natural resources, large and complex public companies, transaction liability solutions, private equity, and large risk management oriented accounts. And then plugging that into the broader distribution network and sales organization that we have here at Baldwin and it is an incredible combination. We have done a tremendous amount of work very quickly to bring these business together in a thoughtful manner where we have aligned around go to market, We have organized around end-client capability and risk product solution. And the results have been profound. So as we look at, you know, what is driving the growth across CAC, it is broad based. In the quarter, the private equity team won over 130 new client accounts. Our financial lines team successfully won multiple large new IPO mandates, including a couple of the largest IPOs of the year. And we successfully won a number of all lines large complex public company accounts through combined Baldwin and CAC team engagement. So it is the core CAC business is performing incredibly well. it is a group of colleagues and professionals that are just incredibly talented. And then you combine that with the broader sales organization and resources here at Baldwin and how that enables us to project the broader organization into the market and we are out successfully taking share at a really meaningful clip. Relative to overall kind of trajectory, it is there is undoubtedly going to be some kind of some variability quarter to quarter in the business because the nature of some of the transactional, product lines, that they play in around private equity M&A solutions, tax solutions, But more broadly, as we look at the pipeline, as we look at closed-won future effective date business, we are feeling really confident about the continued momentum heading into the back half of the year. As we looked at 2027, I would say it is early to know, for us to begin commenting on how we think about overall performance, and there is lots of factors that come into that. But I would say, you know, broadly, the success at CAC is not driven because of, some kind of outside, you know, idiosyncratic factors. it is a result of underlying pipeline and new business momentum, and that is repeatable. Tommy McJoynt-Griffith: Thanks for that explanation. And then just 1 more. You called out a new performance headwind, that $8 million of annualized eliminated redundancies Do you guys have confidence that is the extent of the, you know, what I will call dis synergies from the CAC Group transaction? And will that lap at the end of the year or will that extend into the first quarter of next year? Thanks. Trevor Lowry Baldwin: Yes, Tommy, we feel like that is the extent of, you know, what I would call it, dyssynergies would be. And it is a function of we have moved very quickly to align around practice leaders, product group leaders, you know, combined business structures, We are not gonna have multiple practice groups in the same industry. We are not gonna have multiple product groups in the same product line. And so we aligned around our best out front. We have built the team. We have aligned compensation models. And when you do that, you know, certain people are not gonna necessarily get, you know, the same opportunity that they want, and that is normal. I would not, though I would say I would not characterize it as a dis synergy per se. it is just it is revenue that is not showing up in the legacy IS P&L but that is more than kind of showing up inside the CAC P and L. And so if you look at aggregate revenue across IES inclusive of CAC, it is exactly where we would have expected it to be. it is just what is showing up and what part of the P and L. James sense. Thanks. Operator: Thank you. And our next question comes from Hristian Getsov of Wells Fargo. Your line is open. Hristian Getsov: Hi, good afternoon. Thank you for taking my question. My first question is on the rate and exposure. And I am just trying to gauge your confidence that the rate and exposure headwind has troughed because it seems like across the industry, it seems like the rate and exposure piece could actually get softer from here, but everybody's portfolio is a bit different. But maybe you could kind of just walk me through what you are expecting in the second half that gives you that confidence. Trevor Lowry Baldwin: Yeah. Hey, Hristian. This is Trevor. So I would say broadly, the market is softening. And while casualty rates on an absolute basis are positive, they are ebbing. Property is very deeply soft. And our confidence around Q2 being the trough is less about the rate of travel of underlying insurance rate and more a reflection of the composition of our portfolio on a quarter to quarter basis. So the second quarter is when you know, we renew the preponderance of our cat exposed property, our largest cat property reinsurance renewals, And so that, you know, aspect, the cat property part of the market is very clearly, you know, deeply soft. Far more so than any other part of the insurance market today. And so as we look at mix of business going forward, that gives us a strong degree of confidence around those headwinds abating. Hristian Getsov: Got it. Thank you. And then for my second question, totally understand you cannot comment on the rumors, but given the move in shares in the last, you know, month and a half, how should we kind of think about buybacks from here just given versus the More elevated $80 million in the Q2? Bradford Lenzie Hale: Yeah. Thanks, Hristian. it is Bradford. So we took the opportunity given what we saw as dislocation in the price to repurchase about 4 million shares for about $80 million in Q2. As we have said previously, we are not just an indiscriminate buyer. But we do continue to see dislocation in our stock price. That being said, we are not able to be in the market buying currently. And we will balance that future buyback decision against the leverage profile and the leverage range of 4 to 4.5x that we have communicated. Hristian Getsov: Great. Thank you, guys. Operator: Thank you. Thank you. And our next question comes from Charles Lederer of BMO. Your line is open. Hey, thanks. Charles Lederer: Good evening. On the UCTS business, it sounds like even though the second quarter organic came in a little below where you had guided that you think you have a bounce back in the back half of the year because of the lower reinsurance costs for the E and S home book. Did I understand that correctly? And, I guess, how should we think about the renter's book in the back half of the year? I think 3Q is, you know, a seasonally strong quarter there. Thanks. Trevor Lowry Baldwin: Yes. Charles, yes, overall, pleased with the momentum and the trajectory we are seeing out of UCTS. Second quarter was impacted by about $4 million of year-over-year decline in revenue at Juniper, tied to, you know, risk adjusted rate decreases in excess of 20% on some of our largest property placements. And as well as a stub cover that we had placed on behalf of Brev in the second quarter of last year that, you know, will be a calendar year renewal going forward. So that both impacted, organic as well as absolute EBITDA dollars to the tune of about $4 million. Now just to be clear, the momentum at Juniper is incredibly strong. We expect organic growth from Juniper for the year in excess of 20%. And so this is really more of a timing dynamic. And as I mentioned earlier in my prepared remarks, you know, we do meaningfully benefit from the reduction in risk adjusted reinsurance pricing as it enables us to increase the ceding commission on those programs where we were able to realize the reinsurance savings. Specific to renters, the renters portfolio continues to perform quite well, double digit organic growth in the quarter, strong momentum, you know, a new large property management software provider. Recently went live, you know, with us on the platform and is driving pretty meaningful growth trajectory. And our largest software partner, we have recently rolled out a new co-developed group renters product that we are incredibly excited about. So I would say, you know, our strategic and competitive position and renters and the underlying momentum in that portfolio continues to be quite strong. Charles Lederer: And then maybe moving over to the MIS business. You know, the QBE impact rolled off. In the middle of the quarter. I guess as we think about organic accelerating from here in the back half, can you kind of break that down between the homebuilder business, you know, the mortgage servicer business, or, and, you know, what kind of impacts you are thinking from the Medicare business in the back half of the year? Thanks. Trevor Lowry Baldwin: Yeah. So we think we have got the, you know, vast majority of the impacts from the Medicare slowdown behind us, and anticipate, you know, the Medicare impact to be kind of close to neutral. In the back half of the year, not something that you know, arises to the scale where it is worth you know, I would say calling out on a go forward basis. We continue to have incredibly strong momentum in the mortgage origination market. You know, we called out the success we are seeing with our most recent large partner, Fairway. And the momentum that they are carrying. And you are seeing, you know, both the momentum and operating leverage in the mortgage business as well as the continued growth and success from integrating the Hippo acquisition into Westwood show up in you know, real margin accretion. In that segment as well. So we are super pleased with how performance continues to track there. We continue to think that, you know, it is a winner takes most type opportunity in both the mortgage and the builder space, and we are really excited about how we are positioned as a as a winner there. So normalized for the, you know, Medicare and the QBE commission reduction headwinds, organic for the segment would have been 10% in the quarter and 10% year to date. You know, we are not going to provide segment-level guidance, and, you know, there can be kind of quarter-to-quarter timing differences, but overall feeling good about the overall trajectory of that business. Bradford Lenzie Hale: And 1 piece to remember, Charles, is the Fairway relationship included the purchase of a small agency that was their agency. So it is a bit of a nuance, but the Fairway relationship that started in April actually does not hit organic throughout the balance of this year until we lap that 4/1/2026 start date. So, while we are seeing a lot of momentum there, it is not giving us an organic lift in year, just a total revenue lift. Charles Lederer: Okay. Thank you. Operator: Thank you. And our next question comes from Mitch Rubin of Raymond James. Your line is open. Mitch: Hey. Good afternoon, guys. This is Mitch on for Greg. I appreciated the commentary on the licensing progress of Brev. On Slide 7 of the presentation, you mentioned expectations for an uplift from AIF economics over time. Can you give us a sense of the magnitude of that uplift and where those economics stand today? Trevor Lowry Baldwin: So the impact from the AIF economics is relatively de minimis year to date. But what we would say is, you know, the AIF fees are roughly 5% of premium. as that premium is earned ratably over the policy period. And so as Brex continues to renew more in, that will begin to grow and trickle in As a reminder, the AIF entity we are the majority owner of. So you can think about 2/3 of that overall 5% inuring to the benefit of the Baldwin Group. And you know, I would say the other point to just note is it is not coming in through the top line because of the equity method accounting treatment. With which it is being booked. Mitch: Got it. Thanks for the color. For my follow-up, this quarter, you attributed the 110 basis points of margin expansion to CAC and MIS with no explicit mention of AI. Though last quarter, you talked about internal AI productivity gains running upwards of 80%. Is that benefit embedded in the numbers, or is it just not showing up in the P&L yet? Trevor Lowry Baldwin: Oh, it is very much embedded in the numbers. We are continuing to see really exciting momentum and progress across our AI efforts and the Catalyst transformation program. Specific to the Catalyst program, and you know, the role transformation and AI deployments that we have been executing on, you know, since the beginning of the year. We now have converted over 47 thousand tasks which have been completed in the past 17 weeks at a 98%+ quality rate, which has gone to over 99% in recent weeks. So the model's running at production scale, not pilot scale. We have got 27 processes that we have optimized and standardized across our commercial and benefit service lines. This quarter alone, and we have been deploying AI into those capabilities to continue to enhance and optimize on a recursive basis. You know, another example is we have deployed some AI solutions into our direct fill processing. Part of, you know, that change is tied to the procedural accounting change that we have been talking about for the past 12 months in IES. that is enabled us to improve monthly reconciliation on direct bill from roughly 90% in month to a sustained 98%. And we have been able to reduce run rate costs from $3 million to $1 million a year to execute on that and cut our own internal labor cost on the process from $1.2 million to roughly $400 thousand. So those are just a handful of examples, but we are seeing really exciting gains from the AI solutions we have been deploying We are still very early days, and, you know, have growing confidence around the broad based profound impact that it is gonna have on our business and for the benefit of both our clients and our colleagues. that is really helpful. Thanks again. Thanks again. Operator: Absolutely. Thank you. And if you have a question, please press 11. And our next question comes from Andrew Kligerman of TD Cowen. Your line is open. Andrew: Hey. Good early evening. I wanted to talk about net new business. The generation was super strong this quarter with sales velocity of 30% versus IAS' previous high teens run rate. So maybe you could-- well, let me even throw in retention. To that equation. And, you know, so the part A of it would be you know, are there headwinds to retention given the pricing pressures out there? And then with regard to the new business trends, maybe you could talk about the drivers there that may or may not be getting you excited. This was a big number in the quarter. Trevor Lowry Baldwin: Yeah. Yeah. Thanks, Andrew. So retention at legacy IS business has been hovering around 90%. Now that was impacted by the onetime integration related revenue impacts that I mentioned earlier in the call. And so bringing that down to, call it, mid to high eighties for the quarter, on a onetime basis. But we have seen multiple quarters now in a row of year over year rescension improvement. So we are feeling really good about the momentum there. And at CAC, as I mentioned on the call, you know, client retention and excess of 92%. So, seeing good success there. On the sales velocity, it is a function of depth of capability, unique product expertise, and, real awareness and recognition across our end client industry sectors that we are deep in. And the risk product lines that we have depths in. And so we are in the market We are winning business, you know, business is being referred. And in sectors like M&A, private equity, transaction related solutions, we are taking meaningful share. While the M&A market is up, our M&A business is up dramatically more than the broader market is. And so it is indicative of, you know, the market share that we are taking and the wins that we are putting on the board. And I would say, as I look at where we are competing, it is against, you know, all of the bulge-bracket global brokers that you would recognize and we are competing and we are winning. And so the franchise is really healthy. And, it is showing up in those new business results. Andrew: that is pretty exciting. So, Trevor, team, I-- you know, the elephant in the room question is what we have been hearing in the media about leveraged buyout. I know you cannot specifically address that. We had a great share repurchase in the quarter. Say whatever you can about a potential LBO, but maybe tell us a little bit about how you are thinking about the stock, how it is valued right now, you know, where you think it should be. So I have kind of open-ended it and we would love to hear your thoughts. Trevor Lowry Baldwin: Yeah, Andrew. So we are not gonna comment on market rumors and speculation, but when we think about the business and the share price, I would say we believe that intrinsic value is in excess of where shares trade today. And, you know, you saw us put our money to work, in the quarter repurchasing, you know, roughly $80 million worth or 4 million shares At the current time, we are not in a position to continue that repurchase program. As you have heard Bradford say in the past, we are not indiscriminate buyers. And, you know, we have taken leverage up to the top end of what we would communicated at 4.5x. So at the point-- at a point in time where we are able to be back in the market, if, you know, our exit level of activity would be informed by where leverage sits and where the shares are trading. But to be very clear, view intrinsic value to be in excess of where the shares trade today. Andrew: Thanks for that. Operator: Thank you. And our next question comes from Pablo Singzon of JPMorgan. Your line is open. Pablo, your line is open. Please check your mute. Pablo Singzon: Pablo, can you hear us? Hello? Hello? Hello? I hear you now. Go ahead. Hey. Sorry about that. So yeah, actually, just had 1 question. Just wanted to step back from the call to ask about, you know, I suppose, you know, the big program, right, 3D30? I guess, can you give us your updated thoughts on your ability to reach the goals that you had laid out there just given the current market environment and what are the sort of key initiatives that you have to execute in order to get there? And I guess, you know, related to that, just how are you feeling about those goals, and, you know, what timeline do you have in mind? Thank you. Trevor Lowry Baldwin: Yeah. Hey, Pablo. I would say we continue to feel really good about the path to 3 b 30. As you heard in my prepared remarks, you know, what we are seeing early days from AI is super encouraging around productivity gains, you know, throughput and cycle time compression of complex knowledge work, and the ability to drive more to the top of the funnel from a revenue generation standpoint. And we have got a lot of early proof points around that. That are quite compelling. You know, from a revenue perspective, you know, we will, you know, we will finish the year around $2 billion of revenue. And so kind of 2/3 of our way there at the time we announced the program, we thought, you know, we thought about the path there to being kind of equal parts organic and inorganic. You know, the partnerships that we completed earlier this year are a big step forward in that. And if you look at the normalized organic growth of the business, year to date, inclusive of the partnerships that we have completed, it is roughly 10%. So kind of right in line with the level of organic growth that we had penciled in over the time period to be able to get there. So I would say we are feeling good. We are we are tracking in line to expectations. And, you know, if anything, you know, the growing impacts from AI, from the Catalyst program, and, frankly, the building momentum around new business and the market share gains that we are seeing you know, give us growing confidence. Pablo Singzon: Thank you. Operator: I am showing no further questions at this time. Trevor Lowry Baldwin: I would like to turn it back to Trevor Lowry Baldwin for closing remarks. Thank you all for joining us this evening. As I noted at the open, we are pleased with our second quarter and confident in our trajectory through the balance of the year. The momentum we have built is real in our advisory businesses, our embedded distribution, and our recent partnerships. And it is a direct reflection of our colleagues who show up every day for our clients for 1 another, and for the firm that we are building together. To our clients and insurance company partners, thank you for your continued trust And to our shareholders, thank you for your support as we continue to deliver against our Catalyst 3B30 goals. Thank you. Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect. Before you buy stock in Baldwin Insurance Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Baldwin Insurance Group wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,081!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,166,221!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of July 30, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Baldwin (BWIN) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

The Baldwin Insurance Group (BWIN) came out with quarterly earnings of $0.48 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.35%. A quarter ago, it was expected that this company would post earnings of $0.64 per share when it actually produced earnings of $0.63, delivering a surprise of -1.56%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. The Baldwin Insurance Group, which belongs to the Zacks Insurance - Life Insurance industry, posted revenues of $492.94 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.11%. This compares to year-ago revenues of $378.81 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. The Baldwin Insurance Group shares have added about 17.4% since the beginning of the year versus the S&P 500's gain of 6.9%. While The Baldwin Insurance Group has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for The Baldwin Insurance Group was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.43 on $490.26 million in revenues for the coming quarter and $1.99 on $2 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Life Insurance is currently in the bottom 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Voya Financial (VOYA), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This retirement, investment and insurance company is expected to post quarterly earnings of $1.88 per share in its upcoming report, which represents a year-over-year change of -21.7%. The consensus EPS estimate for the quarter has been revised 3.4% higher over the last 30 days to the current level. Voya Financial's revenues are expected to be $281.99 million, down 20.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Baldwin Insurance Group, Inc. (BWIN) : Free Stock Analysis Report Voya Financial, Inc. (VOYA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

— Second Quarter Total Revenue Growth of 30% to $492.9 Million — — Second Quarter Net Loss of $56.0 Million; Adjusted EBITDA(1) Growth of 37% to $116.7 Million — — Second Quarter Diluted Loss Per Share of $0.42; Adjusted Diluted EPS(2) of $0.48 — — Second Quarter Net Loss Margin of 11%; Adjusted EBITDA Margin(1) of 24% — — Second Quarter Net Cash Provided by Operating Activities of $45.6 Million; Adjusted Free Cash Flow(3) Increased 437% to $46.4 Million — — Year-to-Date Net Cash Provided by Operating Activities of $39.5 Million; Adjusted Free Cash Flow Increased 34% to $46.2 Million — TAMPA, Fla., July 30, 2026--(BUSINESS WIRE)--The Baldwin Group, the brand name for The Baldwin Insurance Group, Inc. ("Baldwin" or the "Company") (NASDAQ: BWIN), an independent insurance distribution firm delivering tailored insurance solutions to a wide range of personal and commercial clients, today announced its results for the second quarter ended June 30, 2026. SECOND QUARTER 2026 HIGHLIGHTS Total revenue increased 30% year-over-year to $492.9 million Organic revenue growth(4) of 2% year-over-year CAC Group total revenue growth(5) of 23% year-over-year GAAP net loss of $56.0 million and GAAP diluted loss per share of $0.42 Adjusted net income(2) of $68.5 million Adjusted diluted EPS increased 14% year-over-year to $0.48 Adjusted EBITDA grew 37% to $116.7 million Net loss margin of 11% Adjusted EBITDA margin of 23.7%, a 110 basis point expansion compared to 22.6% in the prior-year period Net cash provided by operating activities of $45.6 million Adjusted free cash flow increased 437% year-over-year to $46.4 million "We are thrilled with our momentum as reflected in our strong second quarter results. Total revenue grew 30% to $492.9 million, adjusted EBITDA grew 37% to $116.7 million, and adjusted free cash flow increased 437% to $46.4 million," said Trevor Baldwin, Chief Executive Officer of The Baldwin Group. "As we previously highlighted, we have largely lapped the idiosyncratic, one-time headwinds that we believe will transition into tailwinds for our business in the back half of 2026. When combined with the strong contribution from our recent partnerships, we continue to win market share at an outsized rate, evidenced by sales velocity of 30% in our combined IAS business and normalized organic growth of 8%. This is a testament to the depth of expertise, value delivered to clients, and commitment from our dedicated colleagues." Baldwin added, "We remain excited for the opportunities we have ahead of us and what we can achieve in the coming year for shareholders, clients and colleagues." LIQUIDITY AND CAPITAL RESOURCES As of June 30, 2026, cash and cash equivalents were $184.5 million and the Company had $259.4 million of borrowing capacity under its revolving credit facility. SIX MONTHS 2026 RESULTS Revenue increased 29% year-over-year to $1.0 billion Organic revenue growth of 2% year-over-year CAC Group total revenue growth of 25% year-over-year GAAP net loss of $57.9 million and GAAP diluted loss per share of $0.39 Adjusted net income of $157.8 million Adjusted diluted EPS grew 5% year-over-year to $1.11 Adjusted EBITDA grew 27% year-over-year to $254.0 million Net loss margin of 6% Adjusted EBITDA margin was 24.8% compared to 25.2% in the prior-year period Net cash provided by operating activities of $39.5 million Adjusted free cash flow increased 34% year-over-year to $46.2 million WEBCAST AND CONFERENCE CALL INFORMATION Baldwin will host a live audio webcast today at 5:00 PM Eastern Time to discuss the Company’s second quarter 2026 performance, including management’s perspectives on the business. The live audio webcast will be accessible via Baldwin’s investor relations website at ir.baldwin.com and a replay of the webcast will be available at ir.baldwin.com for approximately one year. ABOUT THE BALDWIN GROUP The Baldwin Group, the brand name for The Baldwin Insurance Group, Inc. ("Baldwin") (NASDAQ: BWIN) and its affiliates, is an independent insurance distribution firm providing indispensable expertise and insights that strive to give our clients the confidence to pursue their purpose, passion and dreams. As a team of dedicated entrepreneurs and insurance professionals, we have come together to help protect the possible for our clients. We do this by delivering bespoke client solutions, services, and innovation through our comprehensive and tailored approach to risk management, insurance, and employee benefits. We support our clients, colleagues, insurance company partners, and communities through the deployment of vanguard resources and capital to drive our organic and inorganic growth. The Baldwin Group proudly represents more than three million clients across the United States and internationally. For more information, please visit www.baldwin.com. FOOTNOTES NOTE REGARDING FORWARD-LOOKING STATEMENTS This press release may contain various "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which represent Baldwin’s expectations or beliefs concerning future events. Forward-looking statements are statements other than historical facts and may include statements that address Baldwin's future operating, financial or business performance or Baldwin’s strategies or expectations. In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "projects," "potential," "outlook" or "continue," or the negative of these terms or other comparable terminology. Forward-looking statements are based on management’s current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements. Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, those described under the caption "Risk Factors" in Baldwin’s Annual Report on Form 10-K for the year ended December 31, 2025 and in Baldwin’s other filings with the SEC, which are available free of charge on the SEC's website at: www.sec.gov, including those risks and other factors relevant to Baldwin's business, financial condition and results of operations. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All forward-looking statements and all subsequent written and oral forward-looking statements attributable to Baldwin or to persons acting on Baldwin's behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and Baldwin does not undertake any obligation to update them in light of new information, future developments or otherwise, except as may be required under applicable law. NON-GAAP FINANCIAL MEASURES Adjusted EBITDA, adjusted EBITDA margin, organic revenue, organic revenue growth, adjusted net income, adjusted diluted earnings per share ("EPS"), and adjusted net cash provided by operating activities ("adjusted free cash flow") are not measures of financial performance under GAAP and should not be considered substitutes for GAAP measures, including commissions and fees (for organic revenue and organic revenue growth), net income (loss) (for adjusted EBITDA and adjusted EBITDA margin), net income (loss) attributable to Baldwin (for adjusted net income), diluted earnings (loss) per share (for adjusted diluted EPS) or net cash provided by (used in) operating activities (for adjusted free cash flow), which we consider to be the most directly comparable GAAP measures. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, you should not consider these non-GAAP financial measures in isolation or as substitutes for commissions and fees, net income (loss), net income (loss) attributable to Baldwin, diluted earnings (loss) per share, net cash provided by (used in) operating activities or other consolidated income statement data prepared in accordance with GAAP. Other companies in our industry may define or calculate these non-GAAP financial measures differently than we do, and accordingly, these measures may not be comparable to similarly titled measures used by other companies. We define adjusted EBITDA as net income (loss) before interest, taxes, depreciation, amortization, change in fair value of contingent consideration and certain items of income and expense, including share-based compensation expense, transaction-related partnership and integration expenses, transformation costs, severance, and certain non-recurring items, including those related to raising capital. We believe that adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of income and expenses that do not relate to business performance, and that the presentation of this measure enhances an investor’s understanding of our financial performance. Adjusted EBITDA margin is adjusted EBITDA divided by total revenues. Adjusted EBITDA margin is a key metric used by management and our board of directors to assess our financial performance. We believe that adjusted EBITDA margin is an appropriate measure of operating performance because it eliminates the impact of income and expenses that do not relate to business performance, and that the presentation of this measure enhances an investor’s understanding of our financial performance. We believe that adjusted EBITDA margin is helpful in measuring profitability of operations on a consolidated level. Adjusted EBITDA and adjusted EBITDA margin have important limitations as analytical tools. For example, adjusted EBITDA and adjusted EBITDA margin: do not reflect any cash capital expenditure requirements for the assets being depreciated and amortized that may have to be replaced in the future; do not reflect changes in, or cash requirements for, our working capital needs; do not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations; do not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our debt; do not reflect share-based compensation expense and other non-cash charges; and exclude certain tax payments that may represent a reduction in cash available to us. We calculate organic revenue based on commissions and fees for the relevant period by excluding (i) the first 12 months of commissions and fees generated from new partners and (ii) commissions and fees from divestitures. Organic revenue growth is the change in organic revenue period-to-period, with prior period results adjusted to (i) include commissions and fees that were excluded from organic revenue in the prior period because the relevant partners had not yet reached the 12-month owned mark, but which have reached the 12-month owned mark in the current period, and (ii) exclude commissions and fees related to divestitures from organic revenue. For example, commissions and fees from a partner acquired on June 1, 2025 are excluded from organic revenue for 2025. However, after June 1, 2026, results from June 1, 2025 to December 31, 2025 for such partners are compared to results from June 1, 2026 to December 31, 2026 for purposes of calculating organic revenue growth in 2026. Organic revenue growth is a key metric used by management and our board of directors to assess our financial performance. We believe that organic revenue and organic revenue growth are appropriate measures of operating performance as they allow investors to measure, analyze and compare growth in a meaningful and consistent manner. We define adjusted net income as net income (loss) attributable to Baldwin adjusted for depreciation, amortization, change in fair value of contingent consideration and certain items of income and expense, including share-based compensation expense, transaction-related partnership and integration expenses, transformation costs, severance, and certain non-recurring costs that, in the opinion of management, significantly affect the period-over-period assessment of operating results, and the related tax effect of those adjustments. We believe that adjusted net income is an appropriate measure of operating performance because it eliminates the impact of income and expenses that do not relate to business performance. Adjusted diluted EPS measures our per share earnings excluding certain expenses as discussed above for adjusted net income and assuming all shares of Class B common stock were exchanged for Class A common stock on a one-for-one basis. Adjusted diluted EPS is calculated as adjusted net income divided by adjusted diluted weighted-average shares outstanding. We believe adjusted diluted EPS is useful to investors because it enables them to better evaluate per share operating performance across reporting periods. We calculate adjusted free cash flow because we incur substantial earnout liabilities in conjunction with our partnership strategy. Adjusted free cash flow is calculated as net cash provided by (used in) operating activities excluding the impact of: (i) the payment of contingent earnout consideration in excess of purchase price accrual, and (ii) the payment of colleague earnout incentives. We believe that adjusted free cash flow is an important measure of our ability to generate cash from our business operations. Reconciliation of guidance regarding adjusted EBITDA, organic revenue growth and adjusted diluted EPS to the most directly comparable GAAP measures is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity, and low visibility with respect to commissions and fees, net income (loss), diluted earnings (loss) per share or other consolidated income statement data prepared in accordance with GAAP. The Company is currently unable to predict with a reasonable degree of certainty the type and extent of items that would be expected to impact these GAAP financial measures for these periods. The unavailable information could have a significant impact on the non-GAAP measures. Adjusted EBITDA and Adjusted EBITDA Margin The following table reconciles adjusted EBITDA and adjusted EBITDA margin to net income (loss), which we consider to be the most directly comparable GAAP financial measure: Organic Revenue and Organic Revenue Growth The following table reconciles organic revenue and organic revenue growth to commissions and fees, which we consider to be the most directly comparable GAAP financial measure: Adjusted Net Income and Adjusted Diluted EPS The following table reconciles adjusted net income to net income attributable to Baldwin and reconciles adjusted diluted EPS to diluted earnings (loss) per share, which we consider to be the most directly comparable GAAP financial measures: Adjusted Net Cash Provided by Operating Activities ("Adjusted Free Cash Flow") The following table reconciles adjusted free cash flow to net cash provided by (used in) operating activities, which we consider to be the most directly comparable GAAP financial measure: COMMONLY USED DEFINED TERMS The following terms have the following meanings throughout this press release unless the context indicates or requires otherwise: View source version on businesswire.com: https://www.businesswire.com/news/home/20260730967948/en/ Contacts MEDIA RELATIONS Anna Rozenich, Senior Director, Enterprise CommunicationsThe Baldwin Group630.561.5907 | [email protected] INVESTOR RELATIONS Bonnie Bishop, Executive Director, Investor RelationsThe Baldwin Group813.259.8032 | [email protected]

Interested in Baldwin Insurance Group, Inc.? Here are five stocks we like better. Baldwin Insurance Group reported mixed but improving second-quarter results: revenue reached $493 million, adjusted EBITDA rose 37% to $117 million, and adjusted diluted EPS was $0.48, despite a GAAP net loss of $39 million. Adjusted free cash flow increased to $46 million from $9 million a year earlier. CAC partnership performance helped offset integration-related weakness in legacy Insurance Advisory Solutions. CAC revenue rose 23% to $94 million, while IAS organic revenue declined 2% amid rate pressure, accounting changes and client-retention impacts from integration efforts. Management maintained its broad 2026 outlook and expects improving growth: third-quarter guidance calls for $485 million–$495 million in revenue, mid-single-digit organic growth and adjusted EPS of $0.42–$0.46. The company also said its AI initiative is producing cost savings and improving operational efficiency. Congress Is Dumping These 5 Stocks—Should You Follow? Baldwin Insurance Group (NASDAQ:BWIN) reported second-quarter 2026 revenue of $493 million, adjusted EBITDA of $117 million and adjusted diluted earnings per share of $0.48, as the company said momentum from recent partnerships and its CAC integration helped offset several transitory headwinds. Chief Executive Officer Trevor Baldwin said total organic revenue growth was 2% in the quarter. However, he said growth would have been 8% after treating three January partnerships as if they had been owned during the comparable prior-year period and excluding revenue-recognition and integration-related effects. The three partnerships collectively grew 25% during the quarter and 34% in the first half, according to the company. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now These Are the Most Active Congressional Trades This Quarter The company recorded a GAAP net loss attributable to Baldwin of $39 million, or $0.42 per diluted share. Chief Financial Officer Brad Hale said adjusted net income, which excludes share-based compensation amortization and other one-time expenses, was $68 million, or $0.48 per diluted share. Adjusted EBITDA rose 37% from the prior-year quarter to $117 million. Adjusted EBITDA margin increased about 110 basis points year over year to 23.7%, which Hale attributed to the contribution from CAC, including realized cost synergies, and margin expansion in the Mainstreet Insurance Solutions, or MIS, business. → 3 Value ETFs to Consider as Growth Stocks Lag Behind Adjusted free cash flow rose to $46 million from $9 million a year earlier, aided by EBITDA growth and working-capital dynamics. Hale said CAC benefited from an $11 million working-capital tailwind during the quarter, reversing an approximately $30 million headwind in the first quarter related to assumed bonus and commission liabilities from the merger. The company ended the period with net leverage of roughly 4.5 times after spending $80 million to repurchase approximately 4 million shares. About half of its authorized $250 million repurchase program had been used by the end of the second quarter, Hale said. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Management declined to address market speculation surrounding possible capital-structure alternatives. Baldwin said the company does not comment on market rumors, while Hale said future repurchase decisions would be weighed against its stated leverage range of four to 4.5 times. Insurance Advisory Solutions posted a 2% organic revenue decline. Baldwin said the legacy IAS business experienced a 240-basis-point rate-and-exposure headwind, a 150-basis-point impact from a procedural accounting change that was fully lapped at June 30, and a 240-basis-point client-retention impact tied to CAC integration efforts. The integration changes included aligning compensation plans, go-to-market capabilities and business structures, as well as eliminating redundancies. Baldwin said the actions resulted in approximately $8 million of annualized revenue attrition associated with a small group of departing employees and are expected to affect legacy IAS revenue by $4 million to $5 million in the second half. He added that the revenue impact in legacy IAS has been more than offset by CAC’s performance. CAC generated $94 million of revenue, up 23% from the second quarter of 2025. It booked more than $80 million of new business year to date, up 43%, while closed-won business including future effective dates exceeded $100 million. CAC’s sales velocity was 59% across all product lines and 19% for recurring business, while retention was above 92%. Baldwin cited demand across private equity, financial lines, public-company accounts and transaction-related products. Net growth in transaction-related product lines was 44%. Management said it expects rate-and-exposure pressure to ease in the second half, largely because the second quarter includes a significant concentration of catastrophe-exposed property and property reinsurance renewals. Baldwin acknowledged that the broader insurance market is softening, particularly in property lines. Organic revenue growth in Underwriting Capacity and Technology Solutions, or UCTS, was 6%, or 7% including Obie on an as-if owned basis. The segment benefited from multifamily, admitted-home and real-estate-investor products, partly offset by softness in excess-and-surplus home business and lower reinsurance brokerage revenue at Juniper Re. Baldwin said Juniper Re’s quarterly results were affected by about $4 million of lower year-over-year revenue, tied to risk-adjusted rate decreases on major property placements and a prior-year stub cover. He said the company still expects Juniper Re to produce organic growth above 20% for the full year. The company’s reciprocal insurance exchange, BRE, is licensed in 13 states and has begun migrating business in states outside Texas. Baldwin also said a second proprietary builder program with Hippo and Spinnaker is expected to launch in select states by year-end. MIS delivered 4% organic growth, improving from an approximately 5% decline in the first quarter as the company lapped a QBE commission-rate reduction on May 1. Excluding QBE and Medicare underperformance, management said MIS organic growth would have been approximately 10% in both the second quarter and year to date. The company said its embedded mortgage relationship with Fairway Independent Mortgage is ahead of plan in its first three months on the platform. However, Hale noted that the relationship will not contribute to organic growth until the company laps its April 1, 2026 start date because it included the purchase of Fairway’s legacy agency. For the third quarter, Baldwin forecast revenue of $485 million to $495 million, mid-single-digit organic growth, adjusted EBITDA of $105 million to $110 million, and adjusted diluted EPS of $0.42 to $0.46. The company maintained most of its full-year outlook, now expecting mid-single-digit organic growth for 2026 and high-single-digit growth or better in the fourth quarter. Hale said the change reflects the revenue effects of structural changes in legacy IAS. Baldwin said execution of the company’s $3B/30 Catalyst Transformation Program remains on track. The company has expanded its relationship with Anthropic and rolled out Claude across the organization. He said Baldwin has converted more than 47,000 tasks over 17 weeks at a quality rate above 98%, and recently above 99%. Among other examples, Baldwin said AI-supported direct-bill processing improved monthly reconciliation rates from about 90% to a sustained 98%, while reducing annual run-rate costs from $3 million to $1 million and internal labor costs from $1.2 million to roughly $400,000. Baldwin Insurance Group, Inc (NASDAQ: BWIN) is a specialty insurance and surety firm that underwrites contract bonds, commercial insurance policies and related risk-management services. Its core offerings include contract and commercial surety, which provide performance and payment guarantees to obligees in construction, service and public-sector projects. In addition, the company delivers complementary commercial lines coverages designed to mitigate liability, property and workers' compensation exposures. Through a network of regional agency offices primarily across the Midwestern United States, Baldwin Insurance Group serves contractors, developers, small and mid-sized businesses as well as municipal and public-sector clients. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Baldwin Insurance Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.