Ryan Specialty's Revenue Growth Amid Challenges in Profits
Ryan Specialty reported a remarkable revenue increase to $751.2 million for the fourth quarter ending December 31, 2025, reflecting a 13.2% rise from the $663.5 million reported in the same quarter of the previous year. However, this revenue growth was accompanied by a decrease in profit margins, primarily due to costs associated with technology initiatives and acquisitions.
The company faced a 26.6% decline in net income for the quarter, dropping to $31.2 million from $42.6 million in the fourth quarter of 2024. This net income reduction stemmed from elevated total operating expenses and increased interest costs, despite the revenue surge.
Impact of Technology Investments and Acquisitions on Financials
Higher general and administrative expenses during this period were driven by professional services and IT expenses tied to ongoing technology and data projects. Additionally, costs were incurred to support organic growth and acquisitions, as highlighted by recruiter fees, according to the company's statements.
Adjusted EBITDAC saw an increase of 2.9% to $222.3 million, compared with $216.0 million in the prior year’s fourth quarter. Despite this, the adjusted EBITDAC margin experienced a decline to 29.6% from 32.6%, while adjusted diluted earnings per share held steady at $0.45.
Strategic Growth Initiatives and Market Integration
The company reported a 6.6% organic revenue growth for the quarter, which decreased from the 11.0% recorded in the same period the prior year. CEO Timothy W. Turner noted that the company is strategically integrating significant investments in talent and technology as it progresses into 2026.
Throughout 2025, Ryan Specialty achieved a full-year revenue of $3.05 billion, marking a 21.3% increase from $2.52 billion in 2024. This growth included a 10.1% organic revenue boost for the year, down from 12.8% in 2024. The firm's adjusted EBITDAC for the year rose by 19.2% to $966.7 million, while adjusted diluted earnings per share grew by 9.5% to $1.96.
Expansion and Shareholder Returns
Patrick G. Ryan, the founder and executive chairman, emphasized the company's seventh consecutive year of 20% or higher total revenue growth, with five acquisitions in 2025 contributing over $125 million in annual revenue. In December 2025, the company rebranded its North American Professional Liability team as Ryan Financial Lines, establishing a presence in London to enhance its financial lines offerings.
During 2025, Ryan Specialty returned $88.1 million to shareholders and LLC unit holders through dividends and distributions, while the board sanctioned a $300 million share repurchase program. For fiscal 2026, Ryan Specialty anticipates organic revenue growth in the high single digits and expects its adjusted EBITDAC margin to remain steady or slightly decrease compared to 2025.