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    RYAN
    Earnings call· Jun 2026(Q2 FY26)

    RYAN SPECIALTY HOLDINGS Q2 FY26 earnings call RYAN

    Jul 30, 2026 Source

    Executive summary

    Ryan Specialty Holdings, Inc. Q2 FY26 — Strong Performance Amidst Challenging Market Conditions

    Ryan Specialty delivered a strong Q2 FY26, with robust organic revenue growth and adjusted EPS expansion, despite significant property pricing declines and increased competition in certain casualty and binding authority segments. The company's differentiated platform, talent, and innovation, including strategic AI adoption, enabled it to outperform expectations in key areas like property and transactional liability. Management remains focused on disciplined capital allocation and operational efficiencies to drive future growth and modest margin expansion.

    Highlights

    9

    • Total revenue grew 7.2% to $917 million.

    • Organic revenue growth of 6.7% in Q2 FY26.

    • Adjusted EBITDAC grew 6% to $327 million.

    • Adjusted earnings per share grew 12.1% to $0.74.

    • Repurchased 8.1 million shares for $260 million, with an additional $300 million authorization.

    • Wholesale brokerage property book declined only modestly, better than expectations, notably in June.

    • Casualty had a very strong quarter, driven by construction and data center activity.

    • Underwriting management delivered excellent performance across transactional liability, transportation, international specialty, casualty, and reinsurance.

    • Transactional liability delivered exceptional results, topping expectations, supported by a more constructive global M&A environment.

    Concerns

    6

    • Adjusted EBITDAC margin declined 40 basis points to 35.7%.

    • Property pricing in many CAT-exposed and large accounts declined materially (as much as 25% to 35%).

    • Casualty competition picking up in certain pockets beyond small commercial and middle markets.

    • Continued headwinds in builder's risk businesses.

    • Binding authority specialty saw heightened competition and softer growth, with new facilities competing aggressively.

    • Full-year adjusted EBITDAC margins now guided to be down approximately 50 to 100 basis points year-over-year.

    Guidance & targets

    8
    CategoryTargetConfidence
    Organic revenue growth
    towards the higher end of mid-single digits
    high materiality
    Medium
    Adjusted EBITDAC margins
    down approximately 50 basis points to 100 basis points year-over-year
    high materiality
    High
    Adjusted effective tax rate
    approximately 26%
    medium materiality
    High
    GAAP interest expense, net of interest income
    approximately $226 million
    medium materiality
    High
    GAAP interest expense, net of interest income
    $58 million
    medium materiality
    High
    Meaningful acquisition closure
    unlikely
    medium materiality
    High
    M&A focus
    looking towards 2027
    medium materiality
    High
    Ryan Re reinsurance premium placement
    $2 billion
    medium materiality
    High

    Segment performance

    1
    SegmentRevenueYoYQoQMargin
    Binding Authority
    Saw heightened competition in the quarter, yet still grew revenue year-over-year. Expects competitive trends to intensify in H2, particularly from new facilities aggressively competing for small commercial business.
    		—grew revenue year-over-year——

    Operational metrics

    16
    Total Revenue
    $917 millionup 7.2% YoY
    Q2 FY26

    primarily driven by organic revenue growth of 6.7%, as well as modest contributions from M&A.

    Organic Revenue Growth
    6.7%
    Q2 FY26

    primary driver of total revenue growth.

    Organic Revenue Growth
    8.9%
    H1 FY26
    Adjusted EBITDAC
    $327 millionup 6% YoY
    Q2 FY26
    Adjusted EBITDAC Margin
    35.7%down 40 bps YoY
    Q2 FY26

    compared to 36.1% in the prior year period.

    Adjusted Earnings Per Share
    $0.74up 12.1% YoY
    Q2 FY26
    Shares Repurchased
    8.1 million
    Q2 FY26

    for $260 million.

    Share Repurchase Authorization
    $300 millionadditional authorization
    Q2 FY26

    increased the authorization of the program by an additional $300 million to deploy opportunistically within our capital allocation framework.

    Shares Repurchased
    $42 million
    July 2026

    repurchased $42 million of shares thus far in July.

    Adjusted Effective Tax Rate
    26%
    Q2 FY26

    approximately 26%.

    Total Net Leverage
    3.3x
    Q2 FY26

    well within our 3x to 4x comfort corridor.

    E&S Market Share
    20%up from 9% in 2012
    2025

    Delegated underwriting authorities continue to take share of the commercial market from 9% in 2012 to 20% in 2025.

    Premium Insights
    $32 billion
    annual

    Our innovation engine, aided by insights across $32 billion of premium, constantly identifies niches that require unique solutions.

    Property Pricing Decline
    25% to 35%
    Q2 FY26

    while the prices on the CAT book were down as much as 25% or 35%.

    Quotes per Head
    11%more than prior year
    last 12 months

    the average RSUM on property employees, and this is property employees, not just the underwriters, achieved 11% more quotes per head in the last 12 months than the prior year.

    Audited Files
    5xas many as last year
    current vs prior year

    we're auditing 5x as many files as we did last year, and we're increasing the probability of getting to the right files within that subset.

    Industry KPIs

    5
    MetricValueDetails
    Capital returns$260 millionUSD
    Net investment income—
    Retention persistencyhigh
    Renewal rate change pricingdown 25% to 35%%
    Broker specific when present6.7%%

    Product announcements

    1
    ProductTypeDetails
    RSUM Lloyd's Consortium stamplaunch

    Risks & headwinds

    6
    Material property pricing declinesQ2 FY26, expected to continue

    as much as 25% or 35% in CAT-exposed and large accounts

    Mitigation: Brokers winning head-to-head, strong renewal retention, capturing new business, poised for re-firming with potential perils like wildfire season.

    Intensifying casualty competitionH2 FY26

    picking up in certain pockets beyond small commercial and middle markets

    Mitigation: Leveraging talent, product breadth, expertise, and industry-leading service; focusing on specific product lines where market remains firm.

    Continued headwinds in builder's risk businessesQ2 FY26, expected to continue

    consistent with macro pressures

    Mitigation: Bringing more products to market, competing for every account, winning market share.

    Heightened competition in binding authority specialtyQ2 FY26, expected to intensify in H2 FY26

    increase in new facilities competing aggressively for small commercial business

    Mitigation: Expanding services to improve client outcomes, leveraging independence, relying on talent, product breadth, expertise, and service.

    Social inflation and challenging litigation trendsongoing

    impacting most casualty lines

    Mitigation: Supports the need for adequate pricing; company's ability to innovate and provide unique solutions.

    Most difficult organic growth comparison of the yearQ3 FY26

    Q3 FY26

    Mitigation: Focusing on outworking and outexecuting competition, controlling what can be controlled, driving sentiment towards the higher end of the guidance range.

    What to watch in Q3 FY26

    5

    Organic Revenue Growth

    Next quarter (Q3 FY26)
    Current8.9% (H1 FY26)
    TargetHigher end of mid-single digits (FY26)

    Why it matters

    Verifying if the company can achieve its updated full-year organic growth target, especially given the difficult Q3 comparison and various headwinds.

    We continue to guide to organic revenue growth in the mid-single digits for 2026 and now expect to be towards the higher end of the range.

    Q&A highlights

    6

    What drove the Q2 margin beat (stronger organic growth, investment changes) and the change in full-year margin guidance?

    Q2 beat was due to stronger organic growth, disciplined cost management, and early progress from the Empower Program. The full-year guide raise reflects continued organic growth and anticipated cost savings. Q3 will be a tough comp due to significant talent investments last year.

    “the stronger than expected organic growth is a significant driver of the margin beat for the quarter. On top of that, last quarter I mentioned that we were going to be focused on expense discipline and cost management, and that is another driver of the beat this quarter and part of what we're anticipating for the full year, which I'll come back to.”

    asked by Elyse Greenspan · answered by Janice Hamilton

    2 min read6 chapters

    Detailed Narrative

    01

    Innovation in Delegated Underwriting Authority

    Ryan Specialty has been a first mover in delegated underwriting authority, building a comprehensive platform with over 300 specialty insurance products over 16 years. This includes expanding into new areas like reinsurance underwriting (Ryan Re), alternative capital solutions, and broad-based benefit solutions. The platform's capabilities, speed to market, and track record attract high-quality capital, with over 25 carriers backing 10+ of their 40 MGUs.

    02

    Strategic Differentiators and Flywheel Effect

    The company highlights eight key differentiators, including industry leadership, operating in a market with secular tailwinds (E&S share growth from 9% in 2012 to 20% in 2025), attracting top talent, and a commitment to innovation. This creates a 'flywheel' effect where insights from $32 billion of premium identify niches, leading to new solutions and deeper client relationships, constantly expanding their addressable market.

    03

    Digital Transformation and AI Strategy

    Ryan Specialty's AI strategy is anchored in improving client outcomes, increasing employee productivity, and accelerating processes. Examples include a reinsurance FAC workbench that turns submissions into priced, decision-ready files in minutes and agentic AI for property inspection, sharpening underwriting accuracy and reducing cycle times. The company leverages its proprietary data and expertise as a competitive advantage in AI adoption.

    04

    Leadership Succession at RT Specialty

    Brendan Mulshine will assume the role of CEO of RT Specialty, with Ed McCormack transitioning to Vice Chairman. This planned succession aims to lead RT Specialty into its next phase of growth, acknowledging Ed McCormack's foundational contributions to the company.

    05

    Capital Allocation Framework

    The company prioritizes investing in talent, disciplined M&A, a modest and sustainable dividend, and opportunistic share repurchases. They repurchased 8.1 million shares for $260 million in Q2 and authorized an additional $300 million. Net leverage stands at 3.3x, within their 3x to 4x comfort corridor.

    06

    Market Dynamics and Competitive Landscape

    The property market faces significant pricing declines (25-35% in CAT-exposed accounts) due to increased capacity and competition, including from the admitted market. Casualty lines generally remain firm but are bifurcated, with some softening in small/medium-hazard risks and professional lines, while others like transportation and healthcare continue to firm. The binding authority segment experiences heightened competition from new facilities.

    AI-generated summary of the company’s earnings call. Not investment advice.