Ryan Specialty net income jumps 40.6% to $88.0 million in third quarter
Key Facts
Ryan Specialty increased net income 40.6% year over year to $88.0 million in the third quarter of 2026, compared with $62.6 million in the same period last year, according to results published on October 29. Revenue was $790.0 million, up 4.7% from $754.6 million a year earlier. But organic revenue growth slowed to 4.0% from 15.0% in the third quarter of 2025, indicating slower growth in the underlying business despite the increase in net income. Diluted earnings per share were $0.29. The company said growth spanned most liability insurance lines, partly offset by a moderate decline in its property portfolio.
The slowdown in organic growth came against a strong year-earlier comparison: third-quarter 2025 revenue increased 24.8% to $754.6 million, with organic revenue growth of 15.0%. In the second quarter of 2026, revenue rose 7.2% to $916.6 million, and organic growth was 6.7%. Organic revenue growth in the third quarter was therefore below its level in the two preceding periods cited in the results. The company attributed organic growth to winning new clients, strong renewal retention and expanding relationships with existing clients. It added that business flowing into specialty insurance and excess and surplus markets contributed to growth, while acquisitions completed during the twelve months ended September 30 made a limited contribution.
On operating profitability, Adjusted EBITDAC rose 3.8% to $244.4 million from $235.5 million in the year-earlier period. But the measure's margin fell to 30.9% from 31.2% a year earlier, despite revenue growth during the quarter. Adjusted net income increased 4.1% to $137.1 million, compared with $131.7 million. Adjusted diluted earnings per share also rose 8.5% to $0.51 from $0.47 a year earlier. The comparison between 3.8% growth in Adjusted EBITDAC and 4.7% revenue growth shows adjusted operating profit growing more slowly than sales, alongside an annual contraction in margin.
Operating expenses increased 0.8% to $649.1 million in the third quarter from $643.8 million a year earlier. The company said higher compensation and benefits and restructuring expenses were partly offset by lower acquisition expenses. Patrick Ryan described the quarter as the company's toughest year-over-year comparison and said it continued to invest in its business while managing expenses with discipline. He said the adjusted margin had declined 30 basis points year to date, linking that to investment and expense discipline. The company carried out its second-largest hiring class in late 2025, Ryan said, as it continued to invest in its operating capabilities.
The company returned $173.7 million to shareholders during the quarter, including $150.0 million to repurchase 3.5 million Class A shares and $23.7 million in dividends and dividend equivalents. On October 29, the board declared a quarterly dividend of $0.13 per share. It is payable on November 24 to shareholders of record at the close of November 10. The stock closed at $42.62 on October 28, according to EL7 data. In the October 29 session, MarketScreener data showed it closing at $43.28, up 1.55%.
Ryan Specialty maintained its 2026 guidance for organic revenue growth in the mid-single digits and expects Adjusted EBITDAC margin to decline modestly compared with the prior year. The guidance puts expected revenue growth alongside the continued margin pressure seen in the third-quarter results. The company scheduled its third-quarter 2026 financial results call for October 29, 2026, at 4:45 p.m. Eastern Time. Founded in 2010 by Patrick G. Ryan, the company provides specialty insurance products and solutions to insurance brokers, agents and carriers. Its businesses include wholesale brokerage and underwriting management.