Ryan Specialty Holdings Reports 25% Revenue Growth but Faces Net Loss in Q1 2025

Ryan Specialty Holdings, Inc. reported a significant increase in financial performance for the first quarter of 2025, with total revenue reaching $690.2 million, a 25% increase from $552.0 million in the same period last year. The growth was primarily driven by a 25.7% rise in net commissions and fees, which amounted to $676.1 million, up from $537.9 million. However, the company experienced a net loss of $4.4 million, a stark contrast to the net income of $40.7 million reported in the prior year, largely due to increased expenses and a substantial income tax expense related to the Common Control Reorganization following the acquisition of Velocity Risk Underwriters.

Operating expenses also rose significantly, totaling $589.9 million, compared to $479.4 million in the previous year, marking a 23.1% increase. This rise was attributed to higher compensation and benefits expenses, which increased by 15.2% to $430.3 million, and general and administrative expenses, which surged by 39.8% to $106.1 million. The company’s amortization expenses also saw a notable increase, reflecting the impact of recent acquisitions.

Strategically, Ryan Specialty completed the acquisition of Velocity Risk Underwriters for $548.6 million in cash and contingent consideration, which is expected to enhance its capabilities in first-party insurance coverage for catastrophe-exposed properties. The company also reported a 12.9% organic revenue growth rate, indicating strong performance across its three specialties: Wholesale Brokerage, Binding Authority, and Underwriting Management. The Underwriting Management segment, in particular, saw a 69.6% increase in net commissions and fees, bolstered by contributions from recent acquisitions.

Operationally, Ryan Specialty's employee headcount increased to 5,556 as of March 31, 2025, up from 4,401 a year earlier, reflecting the company's growth strategy and expansion efforts. The company also reported a significant increase in fiduciary cash and receivables, which totaled $1.1 billion, indicating robust operational activity. Looking ahead, Ryan Specialty remains focused on pursuing strategic acquisitions and deepening relationships with retail broker trading partners, while navigating the evolving landscape of the excess and surplus lines market.