ryan-20260331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________

FORM 10-Q

____________

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT

OF 1934

For the quarterly period ended March 31, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT

OF 1934

For the transition period from _________to

Commission File Number: 001-40645

____________

RYAN SPECIALTY HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

____________


	Delaware		86-2526344
	(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

	155 N. Wacker Drive, Suite 4000
	Chicago, IL		60606
	(Address of principal executive offices)		(Zip Code)

(312) 784-6001

(Registrant’s telephone number, including area code)

____________

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol	Name of each exchange on which registered

Class A Common Stock, $0.001 par value per share	RYAN	The New York Stock Exchange (NYSE)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934

during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing

requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of

Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such

files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an

emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth

company” in Rule 12b-2 of the Exchange Act.

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of the Private Securities

Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of

historical fact included in this Quarterly Report on Form 10-Q, are forward-looking statements. Forward-looking

statements give our current expectations relating to our financial condition, results of operations, plans, objectives, future

performance, and business. You can identify forward-looking statements by the fact that they do not relate strictly to

historical or current facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,”

“plan,” “intend,” “believe,” “may,” “will,” “should,” “can have,” “likely,” and other words and terms of similar meaning in

connection with any discussion of the timing or nature of future operating or financial performance or other events. For

example, all statements we make relating to our estimated costs, expected benefits relating to our corporate restructuring

program, expenditures, cash flows, growth rates and financial results, any future dividends, our plans, and objectives for

future operations, growth or initiatives, strategies or the expected outcome or impact of pending or threatened litigation, are

forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual

results to differ materially from those that we expected, including:

•our failure to successfully recruit and retain our senior management team, revenue producers, or other key

employees, and to successfully plan and prepare for the succession of our senior management team;

•the potential loss of our relationships with insurance carriers or our clients, failure to maintain good

relationships with insurance carriers or clients, becoming dependent upon a limited number of insurance

carriers or clients, or the failure to develop new insurance carrier and client relationships;

•errors in, or ineffectiveness of, our underwriting models and the risks presented to our reputation and

relationships with insurance carriers, retail brokers, and agents;

•failure to maintain, protect, and enhance our brand or prevent damage to our reputation;

•the unsatisfactory evaluation of potential acquisitions or the failure to successfully integrate acquired

businesses and/or introduce new products, lines of business, and/or markets;

•our inability to successfully recover upon experiencing a disaster or other interruption in business

continuity;

•the impact of third parties that perform key functions of our business operations acting in ways that harm

our business;

•failure to maintain the valuable aspects of our Company’s culture;

•the cyclicality of, and the economic conditions in, the markets in which we operate and conditions that

result in reduced insurer capacity or a migration of business away from the E&S market and into the

Admitted market;

•a reduction in insurer capacity to adequately and appropriately underwrite risk and provide coverage;

•our international operations expose us to various international risks, including required compliance with

evolving legal and regulatory obligations, that are different, and at times more burdensome, than those set

forth in the United States;

•changes in interest rates and deterioration of credit quality could reduce the value of our cash balances or

interest income;

•significant competitive pressures in each of our businesses;

•decreases in premiums or commission rates set by insurers, or actions by insurers seeking repayment of

commissions;

•the impact if the contracts that govern our MGAs or MGUs are terminated or changed;

•a decrease in the amount of supplemental or contingent commissions we receive;

•our inability to collect our receivables;

•disintermediation within the insurance industry and shifts away from traditional insurance markets;

•impairment of goodwill and intangibles;

•the challenges with properly assessing, adapting to, and managing the adoption and use of artificial

intelligence and other evolving technologies;

•the inability to maintain strong growth and generate sufficient revenue to maintain profitability;

•the loss of clients or business as a result of consolidation within the retail insurance brokerage industry;

•the inability to achieve the intended results of our restructuring program;

•significant investment in our growth strategy and whether expectation of internal efficiencies are realized;

•the unavailability or inaccuracy of our clients’ and third parties’ data for pricing and underwriting insurance

policies;

•the competitiveness and cyclicality of the reinsurance industry;

•the occurrence of natural or man-made disasters;

•the impact on our operations and financial condition from the effects of a pandemic or the outbreak of a

contagious disease and resulting governmental and societal responses;

•the economic and political conditions of the countries and regions in which we operate;

•the failure, or take-over by the FDIC, of one of the financial institutions that we use;

•our inability to respond quickly to operational or financial problems or promote the desired level of

cooperation and interaction among our offices;

•our international operations expose us to various international risks, including exchange rate fluctuations;

•changing expectations over corporate responsibility and stakeholder interests;

•the impact of breaches in security that cause significant system or network disruption or business

interruption;

•the impact of improper disclosure of confidential, personal, or proprietary data, misuse of information by

employees or counterparties, or as a result of cyber incidents and cyberattacks;

•our inability to gain internal efficiencies through the application of technology, effectively apply

technology in driving value for our clients, or the failure of technology and automated systems to function

or perform as expected;

•the impact of infringement, misappropriation, or dilution of our intellectual property;

•the impact of the failure to protect our intellectual property rights, or allegations that we have infringed on

the intellectual property rights of others;

•the impact of evolving governmental regulations, legal proceedings, and governmental inquiries related to

our business;

•being subject to E&O claims, as well as other contingencies and legal proceedings;

•our handling of client funds and surplus lines taxes that exposes us to complex fiduciary regulations;

•changes in tax laws or regulations;

•decreased commission revenues due to proposed tort reform legislation;

•the impact of regulations affecting insurance carriers;

•our outstanding debt potentially adversely affecting our financial flexibility and subjecting us to contractual

restrictions and limitations that could significantly affect our ability to operate and manage our business;

•not being able to generate sufficient cash flow to service all of our indebtedness and being forced to take

other actions to satisfy our obligations under such indebtedness;

•being affected by further changes in the U.S. based credit markets;

•changes in our credit ratings;

•risks related to the payments required by our Tax Receivable Agreement;

•risks relating to our organizational structure that could result in conflicts of interests between the LLC

Unitholders, the Ryan Parties, and the holders of our Class A common stock;

•risks relating to our share repurchase program; and

iii

•other factors disclosed in the section entitled “Risk Factors” in our Annual Report on Form 10-K and our

Quarterly Reports on Form 10-Q.

We derive many of our forward-looking statements from our operating budgets and forecasts that are based on many

detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict

the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results.

Important factors that could cause actual results to differ materially from our expectations, or cautionary statements, are

disclosed under the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition

and Results of Operations” in this Quarterly Report on Form 10-Q and under the Section entitled “Risk Factors” in the

Company’s Annual Report on Form 10-K for the year ended December 31, 2025. All written and oral forward-looking

statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by these cautionary

statements as well as other cautionary statements that are made from time to time in our filings with the SEC and other

public communications. You should evaluate all forward-looking statements made in this Quarterly Report on Form 10-Q

in the context of these risks and uncertainties.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject.

These statements are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and

while we believe such information forms a reasonable basis for such statements, such information may be limited or

incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review

of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not

to unduly rely upon these statements.

We caution you that the important factors referenced above may not contain all of the factors that are important to you. In

addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if

substantially realized, that they will result in the consequences or affect us or our operations in the way we expect. The

forward-looking statements included in this Quarterly Report on Form 10-Q are made only as of the date hereof. We

undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or

otherwise, except as otherwise required by law.

Commonly Used Defined Terms

As used in this Quarterly Report on Form 10-Q, unless the context indicates or otherwise requires, the following terms

have the following meanings:

•“we”, “us”, “our”, the “Company”, “Ryan Specialty”, and similar references refer to Ryan Specialty Holdings,

Inc., and, unless otherwise stated, all of its subsidiaries, including the LLC.

•“2030 Senior Secured Notes”: The 4.375% senior secured notes due 2030 issued under an Indenture dated

February 3, 2022.

•“2032 Senior Secured Notes”: The 5.875% senior secured notes due 2032 issued under an Indenture dated

September 19, 2024, as supplemented on December 9, 2024.

•“Adjusted Term SOFR”: The interest rate per annum based on SOFR, without any credit spread adjustment,

subject to a 0 basis point floor.

•“Admitted”: The insurance market comprising insurance carriers licensed to write business on an “admitted”

basis by the insurance commissioner of the state in which the risk is located. Insurance rates and forms in this

market are highly regulated by each state and coverages are largely uniform.

•“Binding Authority”: Our Binding Authority Specialty receives submissions for insurance directly from retail

brokers, evaluates price and makes underwriting decisions regarding these submissions based on narrowly

prescribed guidelines provided by carriers, and binds and issues policies on behalf of insurance carriers who

retain the insurance underwriting risk.

•“Board” or “Board of Directors”: The board of directors of Ryan Specialty.

•“Class C Incentive Units”: Class C common incentive units, initially of the LLC on and prior to September

30, 2021, and then subsequently of New LLC, that are exchangeable into LLC Common Units.

•“Credit Agreement”: The credit agreement dated September 1, 2020, as amended, among Ryan Specialty,

LLC and JPMorgan Chase Bank, N.A., as administrative agent, and the other lenders party thereto.

•“Credit Facility”: The Term Loan and the Revolving Credit Facility.

•“E&O”: Errors and omissions.

•“E&S”: Excess and surplus lines. In this insurance market, insurance carriers are licensed on a “non-

admitted” basis. The excess and surplus lines market often offers carriers more flexibility in terms,

conditions, and rates relative to the Admitted market.

•“Exchange Act”: Securities Exchange Act of 1934, as amended.

•“IPO”: Initial public offering.

•“LLC”: Ryan Specialty, LLC, together with its parent New LLC, and their subsidiaries.

•“LLC Common Units”: Non-voting common interest units initially of the LLC on and prior to September 30,

2021, and then subsequently of New LLC or LLC, as the context requires.

•“LLC Operating Agreement”: The Eighth Amended and Restated Limited Liability Company Agreement of

the LLC, as amended.

•“LLC Units”: Class A common units and Class B common units of the LLC prior to the Organizational

Transactions.

•“LLC Unitholders”: Holders of the LLC Units or the LLC Common Units, as the context requires.

•“MGA”: Managing general agent.

•“MGU”: Managing general underwriter.

•“New LLC”: New Ryan Specialty, LLC is a Delaware limited liability company and a direct subsidiary of

Ryan Specialty Holdings, Inc.

•“New LLC Operating Agreement”: The Third Amended and Restated Limited Liability Company Agreement

of New LLC, as amended.

•“Organizational Transactions”: The series of organizational transactions completed by the Company in

connection with the IPO, as described in Note 1 to the consolidated audited financial statements contained in

the Form 10-K filed with the SEC on March 16, 2022.

•“Revolving Credit Facility”: The $1,400 million revolving credit facility under the Credit Agreement.

•“Ryan Parties”: Patrick G. Ryan and certain members of his family and various entities and trusts over which

Patrick G. Ryan and his family exercise control.

•“SEC”: The Securities and Exchange Commission.

•“Senior Secured Notes”: The 2030 Senior Secured Notes and the 2032 Senior Secured Notes.

•“Specialty”: One of the three Ryan Specialty primary distribution channels, which include Wholesale

Brokerage, Binding Authority, and Underwriting Management.

•“Stock Option”: A non-qualified stock option award that gives the grantee the option to buy a specified

number of shares of Class A common stock at the grant date price.

•“Tax Receivable Agreement” or “TRA”: The tax receivable agreement entered into in connection with the

IPO.

•“Term Loan”: The $1,700 million in aggregate principal amount senior secured Term Loan B under the Credit

Agreement.

•“U.S. GAAP”: Accounting principles generally accepted in the United States of America.

•“Underwriting Management”: Our Underwriting Management Specialty administers a number of MGUs,

MGAs, and programs that offer commercial and personal insurance for specific product lines or industry

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Ryan Specialty Holdings, Inc.

Consolidated Statements of Income (Loss) (Unaudited)

(In thousands, except share and per share data)


	Three Months Ended March 31,
	2026	2025
REVENUE
Net commissions and fees	$782,903	$676,128
Fiduciary investment income	12,326	14,038
Total revenue	$795,229	$690,166
EXPENSES
Compensation and benefits	495,176	430,289
General and administrative	108,761	106,060
Amortization	65,340	64,985
Depreciation	4,062	2,639
Change in contingent consideration	27,294	(14,042)
Total operating expenses	$700,633	$589,931
OPERATING INCOME	$94,596	$100,235
Interest expense, net	53,733	54,508
Income from equity method investments	(5,531)	(4,937)
Other non-operating income	(711)	(377)
INCOME BEFORE INCOME TAXES	$47,105	$51,041
Income tax expense	6,508	55,430
NET INCOME (LOSS)	$40,597	$(4,389)
Net income attributable to non-controlling interests, net of tax	22,951	23,253
NET INCOME (LOSS) ATTRIBUTABLE TO RYAN SPECIALTY HOLDINGS, INC.	$17,646	$(27,642)
NET INCOME (LOSS) PER SHARE OF CLASS A COMMON STOCK:
Basic	$0.14	$(0.22)
Diluted	$0.13	$(0.22)
WEIGHTED-AVERAGE SHARES OF CLASS A COMMON STOCK OUTSTANDING:
Basic	129,375,841	125,419,656
Diluted	137,341,222	125,419,656

See accompanying Notes to the Consolidated Financial Statements (Unaudited)

Ryan Specialty Holdings, Inc.

Consolidated Balance Sheets (Unaudited)

(In thousands, except share and per share data)


	March 31, 2026	December 31, 2025
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$154,650	$158,322
Commissions and fees receivable – net	565,259	488,951
Fiduciary cash and receivables	4,764,338	4,298,920
Prepaid incentives – net	15,326	13,550
Other current assets	79,255	100,437
Total current assets	$5,578,828	$5,060,180
NON-CURRENT ASSETS
Goodwill	3,217,450	3,225,021
Customer relationships	1,433,397	1,496,885
Other intangible assets	127,052	119,621
Prepaid incentives – net	29,718	27,849
Equity method investments	116,431	109,982
Property and equipment – net	66,138	69,461
Lease right-of-use assets	125,802	130,480
Deferred tax assets	305,565	310,138
Other non-current assets	11,257	14,554
Total non-current assets	$5,432,810	$5,503,991
TOTAL ASSETS	$11,011,638	$10,564,171
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities	$341,742	$284,403
Accrued compensation	257,275	519,251
Operating lease liabilities	27,189	25,987
Tax Receivable Agreement liabilities	30,047	—
Short-term debt and current portion of long-term debt	35,364	60,187
Fiduciary liabilities	4,764,338	4,298,920
Total current liabilities	$5,455,955	$5,188,748
NON-CURRENT LIABILITIES
Accrued compensation	81,362	70,096
Operating lease liabilities	146,200	153,089
Long-term debt	3,533,913	3,291,462
Tax Receivable Agreement liabilities	430,797	458,997
Deferred tax liabilities	47,354	49,834
Other non-current liabilities	97,003	97,894
Total non-current liabilities	$4,336,629	$4,121,372
TOTAL LIABILITIES	$9,792,584	$9,310,120
STOCKHOLDERS’ EQUITY
Class A common stock ($0.001 par value; 1,000,000,000 shares authorized, 128,867,457 and 129,603,426 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively)	129	130
Class B common stock ($0.001 par value; 984,748,069 shares authorized and 134,351,649 shares issued and outstanding at March 31, 2026; 1,000,000,000 shares authorized and 134,508,885 shares issued and outstanding at December 31, 2025)	134	135
Preferred stock ($0.001 par value; 500,000,000 shares authorized, 0 shares issued and outstanding at March 31, 2026 and December 31, 2025)	—	—
Additional paid-in capital	506,021	513,610
Retained earnings	120,528	120,353
Accumulated other comprehensive income	9,390	13,845
Total stockholders’ equity attributable to Ryan Specialty Holdings, Inc.	$636,202	$648,073
Non-controlling interests	582,852	605,978
Total stockholders’ equity	$1,219,054	$1,254,051
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$11,011,638	$10,564,171

See accompanying Notes to the Consolidated Financial Statements (Unaudited)

Ryan Specialty Holdings, Inc.

Consolidated Statements of Cash Flows (Unaudited)

(In thousands)


	Three Months Ended March 31,
	2026	2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$40,597	$(4,389)
Adjustments to reconcile net income (loss) to cash flows provided by operating activities:
Income from equity method investments	(5,531)	(4,937)
Amortization	65,340	64,985
Depreciation	4,062	2,639
Prepaid and deferred compensation expense	13,700	10,799
Non-cash equity-based compensation	17,351	19,873
Amortization of deferred debt issuance costs	2,422	2,374
Amortization of interest rate cap premium	—	1,739
Deferred income tax expense	3,142	2,720
Deferred income tax expense from common control reorganization	—	48,115
Changes in operating assets and liabilities, net of acquisitions:
Commissions and fees receivable – net	(77,800)	(17,088)
Accrued interest liability	(21,470)	(11,801)
Other current and non-current assets	18,524	41,130
Other current and non-current liabilities	(227,748)	(298,984)
Total cash flows used in operating activities	$(167,411)	$(142,825)
CASH FLOWS FROM INVESTING ACTIVITIES
Business combinations – net of cash acquired and cash held in a fiduciary capacity	—	(555,641)
Capital expenditures	(13,265)	(16,730)
Asset acquisitions	—	(664)
Total cash flows used in investing activities	$(13,265)	$(573,035)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings on Revolving Credit Facility	524,942	574,056
Repayments on Revolving Credit Facility	(279,375)	(150,000)
Debt issuance costs paid	—	(1,548)
Repayment of term debt	(4,250)	(4,250)
Receipt of contingently returnable consideration	3,140	1,927
Payment of contingent consideration	(17)	(25,150)
Tax distributions to non-controlling LLC Unitholders	(1,294)	—
Receipt of taxes related to net share settlement of equity awards	1,714	1,569
Taxes paid related to net share settlement of equity awards	(1,496)	(1,700)
Class A common stock dividends and Dividend Equivalents paid	(16,795)	(15,074)
Distributions and Declared Distributions paid to non-controlling LLC Unitholders	(8,071)	(6,796)
Repurchases of Class A common stock	(40,019)	—
Payments related to Ryan Re preferred units	—	(85)
Net change in fiduciary liabilities	(92,194)	(36,109)
Total cash flows provided by financing activities	$86,285	$336,840
Effect of changes in foreign exchange rates on cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity	(5,191)	10,081
NET CHANGE IN CASH, CASH EQUIVALENTS, AND CASH AND CASH EQUIVALENTS HELD IN A FIDUCIARY CAPACITY	$(99,582)	$(368,939)
CASH, CASH EQUIVALENTS, AND CASH AND CASH EQUIVALENTS HELD IN A FIDUCIARY CAPACITY —Beginning balance	1,584,470	1,680,805
CASH, CASH EQUIVALENTS, AND CASH AND CASH EQUIVALENTS HELD IN A FIDUCIARY CAPACITY —Ending balance	$1,484,888	$1,311,866
Reconciliation of cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity
Cash and cash equivalents	$154,650	$203,549
Cash and cash equivalents held in a fiduciary capacity	1,330,238	1,108,317
Total cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity	$1,484,888	$1,311,866

See accompanying Notes to the Consolidated Financial Statements (Unaudited)

Ryan Specialty Holdings, Inc.

Consolidated Statements of Stockholders’ Equity (Unaudited)

(In thousands, except share data)


	Class A Common Stock		Class B Common Stock		Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income	Non- controlling Interests	Total Stockholders’ Equity
	Shares	Amount	Shares	Amount	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income	Non- controlling Interests	Total Stockholders’ Equity
Balance at December 31, 2025	129,603,426	$130	134,508,885	$135	$513,610	$120,353	$13,845	$605,978	$1,254,051
Net income	—	—	—	—	—	17,646	—	22,951	40,597
Issuance of common stock	103,661	—	—	—	—	—	—	—	—
Exchange of LLC equity for common stock	176,484	—	(157,236)	(1)	296	—	—	(295)	—
Cash and common stock clawbacks related to vested equity awards	(34,041)	—	—	—	(341)	—	—	187	(154)
Repurchase and retirement of common stock	(982,073)	(1)	—	—	(20,870)	—	—	(19,434)	(40,305)
Class A common stock dividends and Dividend Equivalents	—	—	—	—	—	(17,471)	—	—	(17,471)
Distributions and Declared Distributions to non-controlling LLC Unitholders	—	—	—	—	—	—	—	(8,177)	(8,177)
Tax Receivable Agreement liability and deferred taxes arising from LLC interest ownership changes	—	—	—	—	(4,115)	—	—	(933)	(5,048)
Distributions declared for non-controlling interest holders’ tax	—	—	—	—	—	—	—	(11,046)	(11,046)
Change in share of equity method investments’ other comprehensive income	—	—	—	—	—	—	215	303	518
Foreign currency translation adjustments	—	—	—	—	—	—	(4,670)	(6,592)	(11,262)
Equity-based compensation	—	—	—	—	17,441	—	—	(90)	17,351
Balance at March 31, 2026	128,867,457	$129	134,351,649	$134	$506,021	$120,528	$9,390	$582,852	$1,219,054


	Class A Common Stock		Class B Common Stock		Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Non- controlling Interests	Total Stockholders’ Equity
	Shares	Amount	Shares	Amount	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Non- controlling Interests	Total Stockholders’ Equity
Balance at December 31, 2024	125,411,089	$125	136,456,313	$136	$506,258	$122,939	$(1,796)	$470,623	$1,098,285
Net income (loss)	—	—	—	—	—	(27,642)	—	23,253	(4,389)
Issuance of common stock	81,137	—	—	—	—	—	—	—	—
Exchange of LLC equity for common stock	540,663	1	(498,664)	—	803	—	—	(804)	—
Class A common stock dividends and Dividend Equivalents	—	—	—	—	—	(15,959)	—	—	(15,959)
Distributions and Declared Distributions to non-controlling LLC Unitholders	—	—	—	—	—	—	—	(6,925)	(6,925)
Tax Receivable Agreement liability and deferred taxes arising from LLC interest ownership changes	—	—	—	—	(68,593)	—	—	29,746	(38,847)
Distributions declared for non-controlling interest holders’ tax	—	—	—	—	—	—	—	(8,443)	(8,443)
Change in share of equity method investment’s other comprehensive loss	—	—	—	—	—	—	(1,315)	(1,594)	(2,909)
Loss on interest rate cap, net	—	—	—	—	—	—	(898)	(1,107)	(2,005)
Foreign currency translation adjustments	—	—	—	—	—	—	8,481	10,151	18,632
Equity-based compensation	—	—	—	—	19,978	—	—	(105)	19,873
Balance at March 31, 2025	126,032,889	$126	135,957,649	$136	$458,446	$79,338	$4,472	$514,795	$1,057,313

See accompanying Notes to the Consolidated Financial Statements (Unaudited)

Ryan Specialty Holdings, Inc.

Notes to the Consolidated Financial Statements (Unaudited)

(Tabular amounts presented in thousands, except share and per share data)

1. Basis of Presentation

Nature of Operations

Ryan Specialty Holdings, Inc. (the “Company”) is a service provider of specialty products and solutions for insurance

brokers, agents, and carriers. These services encompass distribution, underwriting, product development, administration,

and risk management by acting as a wholesale broker and a managing underwriter or a program administrator with

delegated authority from insurance carriers. The Company’s offerings cover a wide variety of sectors including

commercial, industrial, institutional, governmental, and personal through one operating segment, Ryan Specialty. With the

exception of the Company’s equity method investments, the Company does not take on any underwriting risk.

The Company is headquartered in Chicago, Illinois, and has operations in the United States, the United Kingdom, Europe,

Canada, India, and Singapore. The Company’s Class A common stock is traded on the New York Stock Exchange under

the ticker symbol “RYAN”.

Organization

Ryan Specialty Holdings, Inc. was formed as a Delaware corporation on March 5, 2021, for the purpose of completing an

IPO and to carry on the business of the LLC. New Ryan Specialty, LLC, or New LLC, was formed as a Delaware limited

liability company on April 20, 2021, for the purpose of becoming, subsequent to our IPO, an intermediate holding

company between Ryan Specialty Holdings, Inc. and the LLC. The Company is the sole managing member of New LLC.

New LLC is a holding company with its sole material asset being a controlling equity interest in the LLC. The Company

operates and controls the business and affairs of the LLC through New LLC and, through the LLC, conducts its business.

Accordingly, the Company consolidates the financial results of New LLC, and therefore the LLC, and reports the non-

controlling interests of New LLC’s Common Units on its consolidated financial statements. As the LLC is substantively

the same as New LLC, for the purpose of this document, we will refer to both New LLC and the LLC as the “LLC”. As of

March 31, 2026, the Company owned 49.0% of the outstanding LLC Common Units.

Basis of Presentation

The accompanying unaudited consolidated interim financial statements and notes thereto have been prepared in accordance

with U.S. GAAP. Certain information and disclosures normally included in the financial statements prepared in accordance

with U.S. GAAP have been omitted pursuant to the rules and regulations of the SEC for interim financial information.

These consolidated interim financial statements should be read in conjunction with the audited consolidated financial

statements and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on February 13,

2026. Interim results are not necessarily indicative of results for the full fiscal year due to seasonality and other factors.

In the opinion of management, the unaudited consolidated interim financial statements include all normal recurring

adjustments necessary to present fairly the Company’s consolidated financial position, results of operations, and cash flows

for all periods presented.

Principles of Consolidation

The unaudited consolidated interim financial statements include the accounts of the Company and its subsidiaries that it

controls due to ownership of a majority voting interest or pursuant to variable interest entity (“VIE”) accounting. All

intercompany transactions and balances have been eliminated in consolidation.

The Company, through its intermediate holding company New LLC, owns a minority economic interest in, and operates

and controls the businesses and affairs of, the LLC. The LLC is a VIE of the Company and the Company is the primary

beneficiary of the LLC as the Company has both the power to direct the activities that most significantly impact the LLC’s

economic performance and has the obligation to absorb losses of, and receive benefits from, the LLC, which could be

significant to the Company. Accordingly, the Company has prepared these consolidated financial statements in accordance

with Accounting Standards Codification (“ASC”) 810, Consolidation (“ASC 810”). ASC 810 requires that if an entity is

the primary beneficiary of a VIE, the assets, liabilities, and results of operations of the VIE should be included in the

consolidated financial statements of such entity. The Company’s relationship with the LLC results in no recourse to the

general credit of the Company and the Company has no contractual requirement to provide financial support to the LLC.

The Company shares in the income and losses of the LLC in direct proportion to the Company’s ownership percentage.

Use of Estimates

The preparation of the unaudited consolidated interim financial statements and notes thereto requires management to make

estimates, judgments, and assumptions that affect the amounts reported in the unaudited consolidated interim financial

statements and the notes thereto. Such estimates and assumptions could change in the future as circumstances change or

more information becomes available, which could affect the amounts reported and disclosed herein.

Significant Accounting Policies

There have been no material changes, except as noted below, in the Company’s significant accounting policies from those

that were disclosed for the year ended December 31, 2025, in the Company’s Annual Report on Form 10-K filed with the

SEC on February 13, 2026.

Share Repurchases and Retirements

Class A common shares repurchased pursuant to the Company’s share repurchase program are recognized at cost, which

includes broker commissions and excise taxes. Repurchased shares are subsequently retired and the cost of the repurchased

shares in excess of par value is recognized as a reduction of additional paid-in capital.

Recently Issued Accounting Pronouncements

New Accounting Pronouncement Recently Adopted

In December 2025, the FASB issued ASU 2025-11 Interim Reporting (Topic 270) — Narrow-Scope Improvements, which

includes amendments that clarify when the interim reporting guidance is applicable, outlines the interim disclosures

required under this guidance and all other ASC topics, and establishes a disclosure principle that requires an entity to

disclose material events that have occurred since the last annual reporting period. This ASU is effective for interim

reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The

Company early adopted this ASU prospectively on January 1, 2026, with no material impact to its consolidated financial

statements or disclosures.

In December 2025, the FASB issued ASU 2025-12 Codification Improvements, which includes amendments that provide

clarification, correct technical errors, and make minor improvements with the intent to make the Accounting Standard

Codification easier to understand and apply. This ASU is effective for annual reporting periods beginning after December

15, 2026, and interim periods within those annual reporting periods, with early adoption permitted. The Company early

adopted this ASU prospectively on January 1, 2026, with no material impact to its consolidated financial statements or

disclosures.

Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2024, the FASB issued ASU 2024-03 Income Statement — Reporting Comprehensive Income — Expense

Disaggregation Disclosures (Subtopic 220-40) — Disaggregation of Income Statement Expenses, which requires the

disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial

statements. This ASU is effective for annual reporting periods beginning after December 15, 2026, and interim periods

within fiscal years beginning after December 15, 2027, with early adoption permitted. The amendments in this ASU may

be applied either prospectively or retrospectively. The Company is currently evaluating the impact of adopting this ASU on

its disclosures.

In September 2025, the FASB issued ASU 2025-06 Intangibles — Goodwill and Other — Internal-Use Software (Subtopic

350-40) — Targeted Improvements to the Accounting for Internal-Use Software, which removes all references to

prescriptive and sequential software development stages and instead requires entities to begin capitalizing costs once

management has authorized and committed to funding the software, and it is probable that the project will be completed

and used to perform its intended functions. Significant uncertainty regarding development activities must be assessed when

evaluating if a project is probable to be completed. Additionally, the ASU clarifies certain disclosure requirements for

capitalized internal-use software costs. This ASU is effective for annual reporting periods beginning after December 15,

2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. The amendments

in this ASU may be applied prospectively, using a modified transition approach, or retrospectively. The Company is

currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.

2. Revenue from Contracts with Customers

Disaggregation of Revenue

The following table summarizes revenue from contracts with customers by Specialty:


	Three Months Ended March 31,
	2026	2025
Wholesale Brokerage	$377,796	$360,788
Binding Authority	110,000	101,950
Underwriting Management	295,107	213,390
Total Net commissions and fees	$782,903	$676,128

Contract Balances

Contract assets, which arise primarily from the Company’s supplemental and contingent commission arrangements,

medical stop loss business, and multi-year structured solutions business, are included within Commissions and fees

receivable – net on the Consolidated Balance Sheets. The contract assets balance was $83.1 million and $65.4 million as of

March 31, 2026 and December 31, 2025, respectively. The contract liability balance related to deferred revenue, which is

included within Accounts payable and accrued liabilities on the Consolidated Balance Sheets, was $10.5 million and $10.0

million as of March 31, 2026 and December 31, 2025, respectively. During the three months ended March 31, 2026, $4.1

million of the contract liabilities outstanding as of December 31, 2025, were recognized as revenue.

3. Mergers and Acquisitions

There were no acquisitions completed during the three months ended March 31, 2026.

2025 Acquisitions

On February 3, 2025, the Company completed the acquisition of Velocity Risk Underwriters, LLC (“Velocity”), an MGU

specializing in first-party insurance coverage for catastrophe exposed properties, headquartered in Nashville, Tennessee,

for cash consideration of $549.6 million and contingent consideration of $19.6 million. Measurement period adjustments

related to the initial valuation of contingent consideration of $1.5 million, Other current assets of $1.5 million, and net

working capital of $0.9 million were recognized as a net $0.9 million increase in Goodwill on the Consolidated Balance

Sheets as of December 31, 2025.

On May 1, 2025, the Company completed the acquisition of certain assets of USQRisk Holdings, LLC, a company based in

New York, New York, and London, England, that underwrites, structures, prices, and places specialty insurance for

corporate clients seeking bespoke, multi-year risk solutions, for cash consideration of $28.9 million and contingent

consideration of $23.8 million. A measurement period adjustment related to net working capital of $0.2 million was

recognized as an increase in Goodwill on the Consolidated Balance Sheets as of December 31, 2025.

On May 16, 2025, the Company completed the acquisition of 360° Underwriting, an MGU specializing in commercial

construction, based in Dublin and Galway, Ireland, for cash consideration of $28.2 million and contingent consideration of

$0.6 million.

On July 1, 2025, the Company completed the acquisition of certain assets of J.M. Wilson Corporation, a binding authority

and surplus lines broker specializing in transportation insurance, headquartered in Portage, Michigan, for $67.2 million of

cash consideration and $20.4 million of LLC Common Units. Measurement period adjustments related to Commissions and

fees receivable – net of $0.8 million, the initial valuation of Customer relationships of $0.4 million, and net working capital

of $0.6 million were recognized as a net $0.6 million increase in Goodwill on the Consolidated Balance Sheets as of

December 31, 2025.

On December 1, 2025, the Company completed the acquisition of Stewart Specialty Risk Underwriting Ltd., an MGU

specializing in underwriting large-account, high-hazard property and casualty solutions, based in Toronto, Canada, for

$124.3 million of cash consideration and $8.1 million of the Company’s Class A common stock. During the three months

ended March 31, 2026, a measurement period adjustment related to net working capital of $1.3 million was recognized as

an increase in Goodwill on the Consolidated Balance Sheets.

The Company recognized acquisition-related expenses, which include advisory, legal, accounting, valuation, and diligence-

related costs, for the Velocity acquisition of $3.9 million during the three months ended March 31, 2025, in General and

administrative expense on the Consolidated Statements of Income (Loss).

Estimates and assumptions used in the acquisition valuations are subject to change within the measurement period up to

one year from each acquisition date.

Unaudited Pro Forma Financial Information

The following unaudited pro forma financial information presents the combined results of operations of the Company as if

the acquisitions completed during the three months ended March 31, 2025, occurred on January 1, 2024. The unaudited pro

forma financial information is presented for informational purposes only and is not indicative of the results of operations

that would have been achieved if the acquisitions had taken place on the date indicated or of results that may occur in the

future.


	Three Months Ended March 31, 2025
Total revenue	$696,242
Net income	42,215

The unaudited pro forma financial information includes adjustments related to incremental amortization expense on

acquired intangible assets, transaction costs, incremental income tax expense related to the CCR (as defined in Note 16,

Income Taxes), and the consequential tax effects of the pro forma adjustments.

Contingent Consideration

Total consideration for certain acquisitions includes contingent consideration or contingently returnable consideration,

which is generally based on the EBITDA or revenue of the acquired business following a defined period after purchase.

Further information regarding the fair value measurements of contingent consideration and contingently returnable

consideration is detailed in Note 13, Fair Value Measurements. The Company recognizes income or loss for the changes in

fair value of estimated contingent consideration and contingently returnable consideration within Change in contingent

consideration, and recognizes accretion of the discount on these assets or liabilities within Interest expense, net, on the

Consolidated Statements of Income (Loss). The table below summarizes the amounts recognized:


	Three Months Ended March 31,
	2026	2025
Change in contingent consideration	$27,294	$(14,042)
Interest expense, net	2,316	2,332
Total	$29,610	$(11,710)

As of March 31, 2026, the aggregate amount of maximum consideration related to acquisitions was $597.3 million of

contingent consideration and $6.6 million of contingently returnable consideration.

4. Restructuring

During the three months ended March 31, 2026, the Company initiated the Empower program to streamline the Company’s

brokerage, binding, and underwriting operations, optimize scale, accelerate data and technology strategies, and enhance

efficiencies across all of the Company’s Specialties. The restructuring plan is expected to incur total restructuring costs of

$160.0 million, including $115.0 million related to business platform optimization and $45.0 million related to

compensation and benefits, through December 31, 2028, and to generate annual savings of approximately $80.0 million in

2029. The following table presents the restructuring expense incurred:


	Three Months Ended March 31, 2026
Business platform optimization	$3,911
Compensation and benefits	666
Total	$4,577

For the three months ended March 31, 2026, the Company recognized restructuring expenses of $2.0 million, including

contractor costs, in Compensation and benefits, and $2.6 million in General and administrative expense on the

Consolidated Statements of Income (Loss).

The following table presents a summary of changes in the restructuring liability:


	Business Platform Optimization	Compensation and Benefits	Total
Balance at January 1, 2026	$—	$—	$—
Accrued costs	9,065	666	9,731
Payments	(1,239)	(183)	(1,422)
Balance at March 31, 2026	$7,826	$483	$8,309

Accrued costs in the table above include both costs expensed and capitalized during the period. As of March 31, 2026, $5.6

million of the restructuring liability was included in Accounts payable and accrued liabilities and $2.7 million was included

in Current Accrued compensation on the Consolidated Balance Sheets.

5. Receivables and Other Current Assets

Receivables

The Company had receivables of $565.3 million and $489.0 million outstanding as of March 31, 2026 and December 31,

2025, respectively, which were recognized within Commissions and fees receivable – net on the Consolidated Balance

Sheets. Commission and fees receivable is net of an allowance for expected credit losses. The Company’s allowance for

expected credit losses is based on a combination of factors, including evaluation of historical write-offs, current economic

conditions, aging of balances, and other qualitative and quantitative analyses.

The following table provides a summary of changes in the Company’s allowance for expected credit losses:


	Three Months Ended March 31,
	2026	2025
Balance at beginning of period	$4,095	$3,018
Write-offs	(1,583)	(1,135)
Increase in provision	1,901	1,511
Balance at end of period	$4,413	$3,394

Other Current Assets

Major classes of other current assets consisted of the following:


	March 31, 2026	December 31, 2025
Prepaid expenses	$50,475	$62,995
Other current receivables	28,780	37,442
Total Other current assets	$79,255	$100,437

Other current receivables contain service receivables from Geneva Re, Ltd (“Geneva Re”) and Velocity Specialty

Insurance Company (“VSIC”). See Note 15, Related Parties, for further information regarding related parties.

6. Leases

The Company has operating leases with various terms through September 2038, primarily for office space and office

equipment. The following table provides additional information about the Company’s leases:


	Three Months Ended March 31,
	2026	2025
Lease costs
Operating lease costs	$8,703	$8,305
Short-term lease costs
Operating lease costs	201	506
Sublease income	(138)	(108)
Lease costs – net	$8,766	$8,703

Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$9,287	$9,689
Non-cash related activities
Right-of-use assets obtained in exchange for new operating lease liabilities	2,262	4,135
Amortization of right-of-use assets for operating leases	6,305	5,903
Weighted-average discount rate (percent)
Operating leases	5.4 %	5.4 %
Weighted-average remaining lease term (years)
Operating leases	6.6	7.4

7. Debt

Substantially all of the Company’s debt is carried at outstanding principal balance, less debt issuance costs and any

unamortized discount. The following table is a summary of the Company’s outstanding debt:


	March 31, 2026	December 31, 2025
Term debt
7-year term loan facility, periodic interest and quarterly principal payments, Adjusted Term SOFR + 2.00%, matures September 13, 2031	$1,656,411	$1,659,629
Senior secured notes
8-year senior secured notes, semi-annual interest payments, 4.38%, mature February 1, 2030	398,560	402,677
8-year senior secured notes, semi-annual interest payments, 5.88%, mature August 1, 2032	1,192,887	1,209,908
Revolving debt
5-year revolving loan facility, periodic interest payments, Adjusted Term SOFR + up to 2.50%, plus commitment fees of 0.25%-0.50%, matures July 30, 2029	319,399	74,062
Premium financing notes
Commercial notes, periodic interest and principal payments, 5.25%, expire May 1, 2026	634	2,519
Commercial notes, periodic interest and principal payments, 5.25%, expire June 1, 2026	201	499
Commercial notes, periodic interest and principal payments, 5.25%, expire June 21, 2026	1,185	2,355
Total debt	$3,569,277	$3,351,649
Less: Short-term debt and current portion of long-term debt	(35,364)	(60,187)
Long-term debt	$3,533,913	$3,291,462

Term Loan

As of March 31, 2026, $1,678.8 million of the Term Loan principal was outstanding, $0.3 million of interest was accrued,

and the related unamortized deferred issuance costs were $22.6 million. As of December 31, 2025, $1,683.0 million of the

principal was outstanding, $0.3 million of interest was accrued, and the related unamortized deferred issuance costs were

$23.6 million.

Revolving Credit Facility

The Revolving Credit Facility had a borrowing capacity of $1,400.0 million as of March 31, 2026 and December 31, 2025.

Due to the nature of the instrument, the deferred issuance costs related to the facility of $7.0 million and $7.5 million as of

March 31, 2026 and December 31, 2025, respectively, were included in Other non-current assets on the Consolidated

Balance Sheets. The commitments available to be borrowed under the Revolving Credit Facility were $1,082.0 million as

of March 31, 2026, as the facility was drawn on by $318.0 million. The commitments available to be borrowed under the

Revolving Credit Facility were $1,326.8 million as of December 31, 2025, as the facility was drawn on by $73.2 million.

The Company pays a commitment fee on undrawn amounts under the facility of 0.25%-0.50%. As of March 31, 2026 and

December 31, 2025, the Company accrued $0.7 million and $0.8 million, respectively, of unpaid commitment fees related

to the Revolving Credit Facility in Short-term debt and current portion of long-term debt on the Consolidated Balance

Sheets. As of March 31, 2026 and December 31, 2025, accrued interest on the facility was $0.7 million and $0.1 million,

respectively.

Senior Secured Notes due 2030

In February 2022, the LLC issued $400.0 million of Senior Secured Notes. As of March 31, 2026 and December 31, 2025,

accrued interest on the notes was $2.9 million and $7.3 million, respectively, and the related unamortized deferred issuance

costs were $4.4 million and $4.6 million, respectively.

Senior Secured Notes due 2032

In September 2024, the LLC issued $600.0 million of Senior Secured Notes at par. In December 2024, the LLC issued an

additional $600.0 million of Senior Secured Notes at a price of 99.5% of their face value plus accrued interest from

September 19, 2024. The notes issued in December 2024 were issued as additional notes under the same indenture as the

notes that were issued in September 2024 and, as such, form a single series and trade interchangeably with the previously

issued senior secured notes due 2032. As of March 31, 2026 and December 31, 2025, accrued interest on the notes was

$11.8 million and $29.4 million, respectively, and the related unamortized deferred issuance costs, including discount, were

$18.9 million and $19.5 million, respectively.

8. Stockholders’ Equity

Ryan Specialty’s amended and restated certificate of incorporation authorizes the issuance of up to 1,000,000,000 shares of

Class A common stock, 1,000,000,000 shares of Class B common stock, and 500,000,000 shares of preferred stock, each

having a par value of $0.001 per share.

The New LLC Operating Agreement requires that the Company and the LLC at all times maintain a one-to-one ratio

between the number of shares of Class A common stock issued by the Company and the number of LLC Common Units

owned by the Company, except as otherwise determined by the Company.

Class A and Class B Common Stock

Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to 10

votes per share but, upon the occurrence of certain events as set forth in the Company’s amended and restated certificate of

incorporation, or as of September 30, 2029, at the latest, each share will be entitled to one vote per share in the future. All

holders of Class A common stock and Class B common stock vote together as a single class except as otherwise required

by applicable law or our amended and restated certificate of incorporation. Holders of Class B common stock do not have

any right to receive dividends or distributions upon the liquidation or winding up of the Company.

In accordance with the New LLC Operating Agreement, the LLC Unitholders are entitled to exchange LLC Common Units

for shares of Class A common stock, or, at the Company’s election, for cash from a substantially concurrent public offering

or private sale (based on the price of our Class A common stock in such public offering or private sale). The LLC

Unitholders are also required to deliver to the Company an equivalent number of shares of Class B common stock to

effectuate such an exchange. Any shares of Class B common stock so delivered will be canceled. Shares of Class B

common stock are not issued for Class C Incentive Units that are exchanged for LLC Common Units as these LLC

Common Units are immediately exchanged for Class A common stock as discussed in Note 9, Equity-Based

Compensation.

Preferred Stock

There were no shares of preferred stock outstanding as of March 31, 2026 or December 31, 2025. Under the terms of the

amended and restated certificate of incorporation, the Board is authorized to direct the Company to issue shares of

preferred stock in one or more series without stockholder approval. The Board has the discretion to determine the rights,

preferences, privileges, and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges,

and liquidation preferences, of each series of preferred stock.

Share Repurchase Program

On February 10, 2026, the Company’s Board of Directors approved a share repurchase program that authorizes the

Company to repurchase up to $300.0 million of its outstanding Class A common stock. Share repurchases may be made

from time to time on the open market, in privately negotiated transactions, using Rule 10b5-1 trading plans, as accelerated

share repurchases, or in any other manner that complies with the applicable securities law. The timing of purchases and

number of shares repurchased under the program will depend upon a variety of factors including the Company’s stock

price, trading volume, working capital or other liquidity requirements, and market conditions. The Company is not

obligated to purchase any shares under the program and the program may be suspended or discontinued at any time without

notice.

During the three months ended March 31, 2026, the Company repurchased and subsequently retired 982,073 shares of its

Class A common stock in open market transactions for an aggregate purchase price of $40.0 million, exclusive of excise

taxes. As of March 31, 2026, $260.0 million remained available for repurchases under the program.

Dividends

During the three months ended March 31, 2026, the Company’s Board of Directors declared a regular quarterly cash

dividend of $0.13 per share on the Company’s outstanding Class A common stock. During the three months ended

March 31, 2026, $16.7 million of dividends were paid on Class A common stock.

Non-controlling Interests

The Company is the sole managing member of the LLC. As a result, the Company consolidates the LLC in its consolidated

financial statements, resulting in non-controlling interests related to the LLC Common Units not held by the Company. As

of March 31, 2026 and December 31, 2025, the Company owned 49.0% and 49.1%, respectively, of the economic interests

in the LLC, while the non-controlling interest holders owned the remaining 51.0% and 50.9%, respectively, of the

economic interests in the LLC.

Weighted-average ownership percentages for the applicable reporting periods are used to attribute net income (loss) and

other comprehensive income (loss) (“OCI”) to the Company and the non-controlling interest holders. The non-controlling

interest holders’ weighted-average ownership percentage was 50.6% and 51.4% for the three months ended March 31,

2026 and 2025, respectively.

During the three months ended March 31, 2026, the Company declared a regular quarterly cash distribution of $0.06 per

unit on the LLC’s outstanding LLC Common Units. During the three months ended March 31, 2026, $8.1 million in

distributions were paid to the non-controlling interest holders of the LLC Common Units.

9. Equity-Based Compensation

The Ryan Specialty Holdings, Inc. 2021 Omnibus Incentive Plan (the “Omnibus Plan”) governs, among other things, the

types of awards the Company can grant to employees as equity-based compensation awards. The Omnibus Plan provides

for potential grants of the following awards: (i) stock options, (ii) stock appreciation rights, (iii) restricted stock awards,

(iv) performance awards, (v) other stock-based awards, (vi) other cash-based awards, and (vii) analogous equity awards

made in equity of the LLC.

IPO-Related Awards

As a result of the Organizational Transactions, pre-IPO holders of LLC Units that were granted as incentive awards, which

had historically been classified as equity and vested pro rata over five years, were required to exchange their LLC Units for

either Restricted Stock or Restricted Common Units. Additionally, Reload Options or Reload Class C Incentive Units were

issued to employees in order to protect against the dilution of their existing awards upon exchange to the new awards.

Separately, certain employees were granted one or more of the following new awards: (i) Restricted Stock Units (“RSUs”),

(ii) Staking Options, (iii) Restricted LLC Units (“RLUs”), or (iv) Staking Class C Incentive Units. The terms of these

awards are described below. All awards granted as part of the Organizational Transactions and the IPO are subject to non-

linear transfer restrictions for at least the five-year period following the IPO.

Incentive Awards

As part of the Company’s annual compensation process, the Company issues certain employees and directors equity-based

compensation awards (“Incentive Awards”). Additionally, the Company offers Incentive Awards to certain new hires.

These Incentive Awards typically take the form of (i) RSUs, (ii) RLUs, (iii) Stock Options, (iv) Class C Incentive Units,

(v) Performance Stock Units (“PSUs”), and (vi) Performance LLC Units (“PLUs”). The terms of these awards are

described below.

Restricted Stock Units (RSUs)

IPO RSUs

Related to the IPO, the Company granted RSUs to certain employees. The IPO RSUs vest either pro rata over 5 years from

the grant date or over 10 years from the grant date, with 10% vesting in each of years 3 through 9 and 30% vesting in year

10.

Incentive RSUs

Incentive RSUs vest either 100% 3 or 5 years from the grant date, pro rata over 3 or 5 years from the grant date, over 5

years from the grant date, with one-third of the grant vesting in each of years 3, 4 and 5, or over 7 years from the grant

date, with 20% vesting in each of years 3 through 7.

Upon vesting, RSUs automatically convert on a one-for-one basis into Class A common stock.


	Three Months Ended March 31, 2026
	IPO RSUs		Incentive RSUs
	Restricted Stock Units	Weighted Average Grant Date Fair Value	Restricted Stock Units	Weighted Average Grant Date Fair Value
Unvested at beginning of period	2,046,961	$23.22	2,553,441	$49.49
Granted	—	—	2,375,933	40.21
Vested	(1,927)	22.42	(51,139)	37.36
Forfeited	(7,642)	22.88	(29,326)	46.86
Unvested at end of period	2,037,392	$23.23	4,848,909	$45.09

Stock Options

Reload and Staking Options

As part of the Organizational Transactions and IPO, certain employees were granted Reload Options or Staking Options

that entitle the award holder to future purchases of Class A common stock, on a one-for-one basis, at the IPO price of

$23.50. The Reload Options either vested 100% 3 years from the grant date or vest over 5 years from the grant date, with

one-third of the grant vesting in each of years 3, 4 and 5. In general, vested Reload Options are exercisable up to the tenth

anniversary of the grant date. The Staking Options vest over 10 years from the grant date, with 10% vesting in each of

years 3 through 9 and 30% vesting in year 10. Staking Options are exercisable up to one year after their vest date.

Incentive Options

Incentive Options entitle the award holder to future purchases of Class A common stock, on a one-for-one basis, at the

respective exercise prices. The Incentive Options vest either over 5 years from the grant date, with one-third of the grant

vesting in each of years 3, 4 and 5 or pro rata over 7 years from the grant date. In general, vested Incentive Options are

exercisable up to the tenth anniversary of the grant date.


	Three Months Ended March 31, 2026
	Reload Options1	Staking Options1	Incentive Options	Incentive Options Weighted Average Exercise Price
Outstanding at beginning of period	3,393,326	66,667	271,247	$44.34
Granted	—	—	—	—
Exercised	(120,188)	—	(122)	34.39
Forfeited or expired	(29,785)	—	—	—
Outstanding at end of period	3,243,353	66,667	271,125	$44.34

1 As the Reload and Staking Options were one-time grants at the IPO, the weighted-average exercise price for any

movements in these awards will perpetually be $23.50. As such, the values are not presented in the table above.

As of March 31, 2026, there were 2,137,212, 13,332, and 56,793 exercisable Reload, Staking, and Incentive Options,

respectively. The aggregate intrinsic values and weighted-average remaining contractual terms of Stock Options

outstanding and exercisable as of March 31, 2026, were as follows:


Aggregate intrinsic value ($ in thousands):
Reload Options outstanding		$33,212
Reload Options exercisable		21,885
Staking Options outstanding		683
Staking Options exercisable		137
Incentive Options outstanding		—
Incentive Options exercisable		—
Weighted-average remaining contractual term (in years):
Reload Options outstanding		5.1
Reload Options exercisable		5.2
Staking Options outstanding		3.6
Staking Options exercisable		0.3
Incentive Options outstanding		4.3
Incentive Options exercisable		3.7

Restricted LLC Units (RLUs)

IPO RLUs

Related to the IPO, the Company granted RLUs to certain employees that vest either pro rata over 5 years from the grant

date or over 10 years from the grant date, with 10% vesting in each of years 3 through 9 and 30% vesting in year 10.

Incentive RLUs

Incentive RLUs vest either 100% 3 years from the grant date, pro rata over 3 or 5 years from the grant date, or over 7 years

from the grant date, with 20% vesting in each of years 3 through 7.

Upon vesting, RLUs convert on a one-for-one basis into either LLC Common Units or Class A common stock at the

election of the Company.


	Three Months Ended March 31, 2026
	IPO RLUs		Incentive RLUs
	Restricted LLC Units	Weighted Average Grant Date Fair Value	Restricted LLC Units	Weighted Average Grant Date Fair Value
Unvested at beginning of period	1,138,946	$25.10	638,648	$44.89
Granted	—	—	—	—
Vested	—	—	—	—
Forfeited	—	—	—	—
Unvested at end of period	1,138,946	$25.10	638,648	$44.89

Class C Incentive Units

Reload and Staking Class C Incentive Units

As part of the Organizational Transactions and IPO, certain employees were granted Reload Class C Incentive Units or

Staking Class C Incentive Units, which are profits interests. When the value of Class A common stock exceeds the

participation threshold, vested profits interests may be exchanged for LLC Common Units of equal value. On exchange,

the LLC Common Units are immediately redeemed on a one-for-one basis for Class A common stock. The Reload Class C

Incentive Units either vested 100% 3 years from the grant date or vest over 5 years from the grant date, with one-third of

the grant vesting in each of years 3, 4 and 5. The Staking Class C Incentive Units vest either pro rata over 5 years from the

grant date or over 10 years from the grant date, with 10% vesting in each of years 3 through 9 and 30% vesting in year 10.

Class C Incentive Units

Class C Incentive Units are profits interests. When the value of Class A common stock exceeds the participation threshold,

vested profits interests may be exchanged for LLC Common Units of equal value. On exchange, the LLC Common Units

are immediately redeemed on a one-for-one basis for Class A common stock. The Class C Incentive Units vest over 8 years

from the grant date, with 15% vesting in each of years 3 through 7 and 25% vesting in year 8, or over 7 years from the

grant date, with 20% vesting in each of years 3 through 7.


	Three Months Ended March 31, 2026
	Reload Class C Incentive Units	Staking Class C Incentive Units	Class C Incentive Units	Class C Incentive Units Weighted Average Participation Threshold
Unvested at beginning of period	457,832	1,333,336	450,822	$36.86
Granted	—	—	—	—
Vested	—	—	—	—
Forfeited	—	—	—	—
Unvested at end of period	457,832	1,333,336	450,822	$36.80

As the Reload and Staking Class C Incentive Units were one-time grants at the IPO, the weighted-average participation

threshold for these awards will be consistent across any type of movement. The weighted-average participation threshold

for Reload and Staking Class C Incentive Units was $23.08 and $23.14 as of March 31, 2026 and December 31, 2025,

respectively. The decrease in the participation thresholds for the various types of Class C Incentive Units was due to the

distributions declared with respect to these awards during the three months ended March 31, 2026.

Performance Based Awards

Performance Stock Units (PSUs) and Performance LLC Units (PLUs)

Performance-based equity awards, PSUs and PLUs, are subject to the achievement of several defined performance and

market metrics. All performance awards are subject to a total shareholder return (“TSR”) compound annual growth rate

(“CAGR”) target and one or more of the following metrics: (i) an Adjusted EBITDAC margin target, (ii) an Organic

revenue CAGR target, or (iii) an individual revenue target. The TSR CAGR is calculated from the base price, as outlined in

the respective grant agreements, to the volume weighted-average price (“VWAP”) of Class A common stock for the period

specified by the grant agreement plus dividends paid to Class A common shareholders. A minimum threshold for the TSR

CAGR, as well as the targets for the other metrics, as applicable, must all be met in order for the awards to vest.

In general, the PSUs and PLUs vest 5 years from the grant date. PSUs represent the right to receive Class A common

shares and PLUs represent the right to receive LLC Common Units upon vesting. If the minimum threshold of the TSR

CAGR is achieved, and the other required targets are achieved, the TSR CAGR target and, if applicable, the individual

revenue target, will determine how many Class A common shares or LLC Common Units, as applicable, the awards vest

into. Assuming at least the minimum thresholds are met, the awards will vest into between 75% and 150% of the applicable

target stock or units, which will be calculated on a graduated basis. Confirmation of the targets will not occur until after

earnings are reported for the final fiscal year in the award’s performance period. The probability of achieving the

performance metrics is assessed each reporting period for expense purposes. During the year ended December 31, 2025, it

was determined that the Adjusted EBITDAC margin target for the executive PSUs and PLUs granted in fiscal year 2024

was not probable of being achieved and, as a result, the expense previously recognized for these awards was reversed.


	Three Months Ended March 31, 2026
	PSUs		PLUs
	Performance Stock Units	Weighted Average Grant Date Fair Value	Performance LLC Units	Weighted Average Grant Date Fair Value
Unvested at beginning of period	1,612,920	$27.73	487,218	$24.40
Granted	—	—	—	—
Vested	—	—	—	—
Forfeited	(6,513)	27.53	—	—
Unvested at end of period	1,606,407	$27.73	487,218	$24.40

Non-Employee Director Stock Grants

The Company grants RSUs to non-employee directors serving as members of the Company’s Board of Directors (“Director

Stock Grants”). The Director Stock Grants are fully vested upon grant. The next grant is anticipated to occur in the second

quarter of 2026 concurrent with the annual shareholders’ meeting.

Dividend Equivalents and Declared Distributions

A majority of the Company’s unvested equity-based compensation awards, with the exception of Options and Class C

Incentive Units, are entitled to accrue dividend equivalents if the award vests into Class A common stock (“Dividend

Equivalents”) or declared distributions if the award vests into LLC Common Units (“Declared Distributions”) over the

period the underlying award vests. The Dividend Equivalents and Declared Distributions will be paid in cash to award

holders at the time the underlying award vests. If an award holder forfeits their underlying award, the accrued Dividend

Equivalents or Declared Distributions will also be forfeit. Class C Incentive Units do not accrue cash distributions but

instead have their participation thresholds lowered by each Declared Distribution. Options do not participate in dividends.

As of March 31, 2026, the Company accrued $1.2 million and $0.1 million related to Dividend Equivalents and Declared

Distributions, respectively, in Accounts payable and accrued liabilities, and $4.8 million and $0.6 million related to

Dividend Equivalents and Declared Distributions, respectively, in Other non-current liabilities on the Consolidated Balance

Sheets. As of December 31, 2025, the Company accrued $1.1 million and $0.1 million related to Dividend Equivalents and

Declared Distributions, respectively, in Accounts payable and accrued liabilities, and $4.3 million and $0.6 million related

to Dividend Equivalents and Declared Distributions, respectively, in Other non-current liabilities on the Consolidated

Balance Sheets.

Equity-Based Compensation Expense

The following table includes the equity-based compensation the Company recognized by award type:


	Three Months Ended March 31,
	2026	2025
IPO awards
IPO RSUs and Staking Options	$1,618	$2,666
IPO RLUs and Staking Class C Incentive Units	1,289	1,964
Incremental Restricted Stock and Reload Options	69	402
Incremental Restricted Common Units and Reload Class C Incentive Units	66	271
Pre-IPO incentive awards
Restricted Stock	—	164
Restricted Common Units	—	48
Post-IPO incentive awards
Incentive RSUs	9,613	8,834
Incentive RLUs	1,843	2,013
Incentive Options	55	813
Class C Incentive Units	440	509
PSUs	1,756	1,083
PLUs	—	606
Other expense
Director Stock Grants	602	500
Total equity-based compensation expense	$17,351	$19,873

As of March 31, 2026, the unrecognized equity-based compensation expense and the related weighted-average remaining

expense period, as applicable, related to the types of equity-based compensation awards described above were as follows:


	Amount	Weighted Average Remaining Expense Period (Years)
IPO RSUs	$16,180	4.1
Incentive RSUs	150,673	3.5
Reload Options	119	0.3
Incentive Options	99	1.0
PSUs	28,824	4.0
IPO RLUs	11,411	4.2
Incentive RLUs	9,792	2.2
Reload Class C Incentive Units	83	0.3
Staking Class C Incentive Units	3,303	4.1
Class C Incentive Units	3,069	2.9
Total unrecognized equity-based compensation expense	$223,553

10. Earnings (Loss) Per Share

Basic earnings (loss) per share is computed by dividing net income (loss) attributable to Ryan Specialty Holdings, Inc. by

the weighted-average number of shares of Class A common stock outstanding during the period. Diluted earnings (loss) per

share is computed giving effect to potentially dilutive shares, including LLC equity awards and the non-controlling

interests’ LLC Common Units that are exchangeable into Class A common stock. As shares of Class B common stock do

not share in earnings and are not participating securities, they are not included in the Company’s calculation. A

reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings (loss) per share of

Class A common stock is as follows:


	Three Months Ended March 31,
	2026	2025
Net income (loss)	$40,597	$(4,389)
Less: Net income attributable to non-controlling interests	22,951	23,253
Net income (loss) attributable to Ryan Specialty Holdings, Inc.	$17,646	$(27,642)
Numerator:
Net income (loss) attributable to Class A common shareholders – basic	$17,646	$(27,642)
Less: Loss attributed to dilutive shares	(150)	—
Net income (loss) attributable to Class A common shareholders – diluted	$17,496	$(27,642)
Denominator:
Weighted-average shares of Class A common stock outstanding – basic	129,375,841	125,419,656
Add: Dilutive shares	7,965,381	—
Weighted-average shares of Class A common stock outstanding – diluted	137,341,222	125,419,656
Earnings (loss) per share
Earnings (loss) per share of Class A common stock – basic	$0.14	$(0.22)
Earnings (loss) per share of Class A common stock – diluted	$0.13	$(0.22)

The following numbers of shares were excluded from the calculation of diluted earnings (loss) per share because the effect

of including such potentially dilutive shares would have been antidilutive:


	Three Months Ended March 31,
	2026	2025
Conversion of non-controlling interest LLC Common Units1	134,475,691	136,063,929
Restricted Stock	—	413,820
IPO RSUs	678,572	2,597,398
Incentive RSUs	—	2,791,698
PSUs	—	1,658,251
Reload Options	—	3,799,629
Staking Options	—	66,667
Incentive Options	150,000	281,652
Restricted Common Units	—	135,991
IPO RLUs	—	1,293,538
Incentive RLUs	—	686,712
PLUs	—	487,218
Reload Class C Incentive Units	—	3,573,527
Staking Class C Incentive Units	—	2,078,334
Class C Incentive Units	195,822	495,822

1 Weighted-average units outstanding during the period.

11. Derivatives

Interest Rate Cap

In 2022, the Company entered into an interest rate cap agreement to manage its exposure to interest rate fluctuations related

to the Company’s Term Loan in the amount of $25.5 million. The interest rate cap had a $1,000.0 million notional amount,

2.75% strike, and terminated on December 31, 2025. At inception, the Company formally designated the interest rate cap

as a cash flow hedge, which remained effective through the instrument’s termination date.

For the three months ended March 31, 2025, the decrease of $4.1 million in the fair value of the interest rate cap was

recognized in OCI. See Note 16, Income Taxes, for further information on the tax effects on OCI related to the interest rate

cap. The location and gains (losses) related to the interest rate cap were recognized on the Consolidated Statements of

Income (Loss) as follows:


	Income Statement Caption	Three Months Ended March 31, 2025
Interest rate cap premium amortization	Interest expense, net	$(1,739)
Amounts reclassified out of other comprehensive income related to the interest rate cap	Interest expense, net	3,953
Total impact of derivatives designated as hedging instruments		$2,214

See Note 13, Fair Value Measurements, for information on the fair value of the interest rate cap.

12. Variable Interest Entities

As discussed in Note 1, Basis of Presentation, the Company consolidates the LLC as a VIE under ASC 810. The

Company’s financial position, financial performance, and cash flows effectively represent those of the LLC as of and for

the three months ended March 31, 2026, with the exception of Cash and cash equivalents of $13.7 million, Other current

assets of $18.2 million, Deferred tax assets of $304.4 million, Accounts payable and accrued liabilities of $1.2 million,

Other non-current liabilities of $5.1 million, and the entire balance of the Tax Receivable Agreement liabilities of $460.8

million on the Consolidated Balance Sheets, which are attributable solely to Ryan Specialty Holdings, Inc. As of

December 31, 2025, Cash and cash equivalents of $22.5 million, Other current assets of $18.3 million, Deferred tax assets

of $309.1 million, Accounts payable and accrued liabilities of $1.1 million, Other non-current liabilities of $4.3 million,

and the entire balance of the Tax Receivable Agreement liabilities of $459.0 million on the Consolidated Balance Sheets

were attributable solely to Ryan Specialty Holdings, Inc.

13. Fair Value Measurements

Accounting standards establish a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair values as

follows:

Level 1: Observable inputs such as quoted prices for identical assets in active markets;

Level 2: Inputs other than quoted prices for identical assets in active markets, that are observable either directly or

indirectly; and

Level 3: Unobservable inputs in which there is little or no market data which requires the use of valuation techniques and

the development of assumptions.

The level in the fair value hierarchy within which the fair value measurement is classified is determined based on the

lowest level of input that is significant to the fair value measurement in its entirety.

The carrying amount of financial assets and liabilities reported on the Consolidated Balance Sheets for commissions and

fees receivable – net, other current assets, accounts payable, short-term debt, and other accrued liabilities as of March 31,

2026 and December 31, 2025, approximate fair value because of the short-term duration of these instruments. The fair

value of long-term debt, including the Term Loan, Senior Secured Notes, and any current portion of such debt, was

$3,256.9 million and $3,308.4 million as of March 31, 2026 and December 31, 2025, respectively. The fair value of the

Term Loan and Senior Secured Notes would be classified as Level 2 in the fair value hierarchy. See Note 7, Debt, for the

carrying values of the Company’s debt.

Interest Rate Cap

The Company used an interest rate cap to manage its exposure to interest rate fluctuations related to the Company’s Term

Loan. The fair value of the interest rate cap was determined using the market standard methodology of discounting the

future expected cash receipts that would occur if variable interest rates rose above the strike rate of the cap. The variable

interest rates used in the calculation of projected receipts on the cap were based on an expectation of future interest rates

derived from observable market interest rate curves and volatilities. The inputs used in determining the fair value of the

interest rate cap were considered Level 2 inputs. See Note 11, Derivatives, for further information on the interest rate cap.

Contingent Consideration

The fair values of contingent consideration and contingently returnable consideration are based on the present value of the

future expected payments to be made to the sellers and to be received from the sellers, respectively, of certain acquired

businesses in accordance with the provisions outlined in the respective purchase agreements, which are Level 3 fair value

measurements. In determining fair value, the Company estimates cash payments and receipts based on management’s

financial projections of the performance of each acquired business relative to the formula specified by each purchase

agreement. The Company utilizes Monte Carlo simulations to evaluate financial projections of each acquired business. The

Monte Carlo models consider forecasted revenue and EBITDA and market risk-adjusted revenue and EBITDA, which are

run through a series of simulations. As of March 31, 2026, the models used risk-free rates, expected volatility, and a credit

spread that ranged from 2.0% to 3.7%, 6.6% to 28.1%, and 0.6% to 3.3%, respectively. As of December 31, 2025, the

models used risk-free rates, expected volatility, and a credit spread that ranged from 1.9% to 3.7%, 6.2% to 21.5%, and

0.8% to 2.7%, respectively. The Company discounts the expected payments created by the Monte Carlo model to present

value using a risk-adjusted rate that takes into consideration the market-based rates of return that reflect the ability of the

acquired entity to achieve its targets. The discount rate ranges used to present value the cash payments were 4.1% to 6.9%

and 4.2% to 6.4% as of March 31, 2026 and December 31, 2025, respectively.

Each period, the Company revalues the contingent consideration and contingently returnable consideration associated with

certain prior acquisitions to their fair value and records the related changes of the fair value in Change in contingent

consideration on the Consolidated Statements of Income (Loss). Changes in contingent consideration result from changes

in the assumptions regarding probabilities of successful achievement of related EBITDA and revenue milestones, the

estimated timing in which milestones are achieved, and the discount rate used to estimate the fair value. Contingent

consideration may change significantly as the Company’s revenue growth rate and EBITDA estimates evolve and

additional data is obtained, impacting the Company’s assumptions. The use of different assumptions and judgments could

result in a materially different estimate of fair value which may have a material impact on the results from operations and

financial position. See Note 3, Mergers and Acquisitions, for further information on contingent consideration.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring

basis by fair value hierarchy input level:


	March 31, 2026			December 31, 2025
	Level 1	Level 2	Level 3	Level 1	Level 2	Level 3
Assets
Contingently returnable consideration	$—	$—	$3,197	$—	$—	$6,550
Liabilities
Contingent consideration	—	—	177,838	—	—	148,388
Total assets and liabilities measured at fair value	$—	$—	$181,035	$—	$—	$154,938

Contingently returnable consideration of $3.2 million and $3.3 million was recorded in Other current assets on the

Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025, respectively. Contingently returnable

consideration of $3.3 million was recorded in Other non-current assets on the Consolidated Balance Sheets as of

December 31, 2025. Contingent consideration of $86.6 million and $55.9 million was recorded in Accounts payable and

accrued liabilities on the Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025, respectively.

Contingent consideration of $91.2 million and $92.5 million was recorded in Other non-current liabilities on the

Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025, respectively.

Level 3 Assets and Liabilities Measured at Fair Value

The following is a reconciliation of the beginning and ending balances of the Level 3 assets and liabilities measured at fair

value:


	Three Months Ended March 31,
	2026	2025
Assets
Balance at beginning of period	$6,550	$5,483
Total gains included in earnings	178	1,354
Foreign currency translation adjustments included in OCI	(119)	200
Settlements	(3,412)	(1,927)
Balance at end of period	$3,197	$5,110
Liabilities
Balance at beginning of period	$148,388	$129,059
Newly established liabilities due to acquisitions	—	21,130
Total (gains) losses included in earnings	29,788	(10,356)
Foreign currency translation adjustments included in OCI	(30)	—
Settlements	(308)	(43,500)
Balance at end of period	$177,838	$96,333

For the three months ended March 31, 2026, $0.3 million and $3.1 million of contingently returnable consideration

settlements are presented in the operating and financing sections, respectively, of the Consolidated Statements of Cash

Flows. For the three months ended March 31, 2025, the $1.9 million settlement of contingently returnable consideration is

presented in the financing section of the Consolidated Statements of Cash Flows. For the three months ended March 31,

2026, contingent consideration settlements of $0.3 million and a de minimis amount are presented in the operating and

financing sections, respectively, of the Consolidated Statements of Cash Flows. For the three months ended March 31,

2025, $18.3 million and $25.2 million of contingent consideration settlements are presented in the operating and financing

sections, respectively, of the Consolidated Statements of Cash Flows.

14. Commitments and Contingencies

As an E&S and Admitted markets intermediary, the Company faces ordinary course of business E&O exposure. The

Company also has potential E&O risk if an insurance carrier with which Ryan Specialty placed coverage denies coverage

for a claim or pays less than the insured believes is the full amount owed. The Company seeks to resolve, through

commercial accommodations, certain matters to limit the economic exposure, including potential legal fees, and

reputational risk created by E&O matters or disagreements between a carrier and the insured.

The Company utilizes insurance to provide protection from E&O liabilities that may arise during the ordinary course of

business. Ryan Specialty’s E&O insurance provides aggregate coverage for E&O losses up to $150.0 million in excess of a

per claim retention amount of $5.0 million. The Company periodically determines a range of possible outcomes using the

best available information that relies, in part, on projecting historical claim data into the future. Loss contingencies of $4.3

million and $3.2 million were recorded for outstanding matters as of March 31, 2026 and December 31, 2025, respectively.

Loss contingencies exclude the impact of any loss recoveries and are recognized within Accounts payable and accrued

liabilities on the Consolidated Balance Sheets. The Company recognized the net impact of loss contingencies and any loss

recoveries of $1.4 million and $1.6 million of E&O expense for the three months ended March 31, 2026 and 2025,

respectively, in General and administrative expense on the Consolidated Statements of Income (Loss). The historical claim

and commercial accommodation data used to project the current estimates may not be indicative of future claim activity.

Thus, the estimates could change in the future as more information becomes known, which could materially impact the

amounts reported and disclosed herein.

15. Related Parties

Equity Method Investments

Ryan Investment Holdings

Ryan Investment Holdings, LLC (“RIH”) was formed as an investment holding company designed to aggregate the funds

of Ryan Specialty and Geneva Ryan Holdings, LLC (“GRH”) for investment in Geneva Re Partners, LLC (“GRP”). GRH

was formed as an investment holding company designed to aggregate investment funds of Patrick G. Ryan and other

affiliated investors. Two affiliated investors are LLC Unitholders and directors of the Company, and another is an LLC

Unitholder and employee of the Company. Ryan Specialty does not consolidate GRH as the Company does not have a

direct investment in or variable interest in this entity.

The Company holds a 47% interest in RIH and GRH holds the remaining 53% interest. RIH has a 50% non-controlling

interest in GRP and the other 50% is owned by Nationwide Mutual Insurance Company. GRP wholly owns Geneva Re, a

Bermuda-regulated reinsurance company, and GR Bermuda SAC Ltd (the “Segregated Account Company”). The

Segregated Account Company has one segregated account, which is beneficially owned by a third-party insurance

company (the “Third-party Insurer”). RIH is considered a related party variable interest entity under common control with

the Company. The Company is not most closely associated with the variable interest entity and therefore does not

consolidate RIH. The assets of RIH are restricted to settling obligations of RIH, pursuant to Delaware limited liability

company statutes.

The Company is not required to contribute any additional capital to RIH, and its maximum exposure to loss on the equity

method investment is the total invested capital of $47.0 million. The Company may be exposed to losses arising from the

equity method investment as a result of underwriting losses recognized at Geneva Re or losses on Geneva Re’s investment

portfolio. The carrying value of the Company’s equity method investment in RIH was $98.1 million and $92.7 million as

of March 31, 2026 and December 31, 2025, respectively. RIH has committed to contribute additional capital to GRP over

the next several years. Patrick G. Ryan, through a trust of which he is the beneficiary and co-trustee, has committed to

personally fund any such additional capital contributions. Any such additional capital contributions under this commitment

will not affect the relative ownership of RIH’s common equity.

Velocity Specialty Insurance Company

On May 1, 2025, the Company acquired a 9.9% interest in VSIC, an insurance carrier writing middle market and small to

medium business risks in catastrophe exposed areas, for $16.6 million. As of March 31, 2026, the Company’s ownership of

VSIC decreased to 5.2% as a result of a capital contribution made by another investor in exchange for equity issued by

VSIC. A gain on ownership dilution of $0.7 million was recognized within Income from equity method investments on the

Consolidated Statements of Income (Loss) during the three months ended March 31, 2026. The Company will continue to

account for its investment in VSIC under the equity method of accounting as the Company has the ability to exercise

significant influence over VSIC primarily through board representation. The carrying value of the Company’s equity

method investment in VSIC was $18.3 million and $17.3 million as of March 31, 2026 and December 31, 2025,

respectively.

Other Related Parties

Geneva Re

The Company has a service agreement with Geneva Re to provide both administrative services to, as well as disburse

payments for costs directly incurred by, Geneva Re. These direct costs include compensation expenses incurred by

employees of Geneva Re. The Company had $0.1 million and $0.3 million due from Geneva Re under this agreement as of

March 31, 2026 and December 31, 2025, respectively.

Ryan Re Services Agreements with Geneva Re

Ryan Re, a wholly owned subsidiary of the Company, is party to a services agreement with Geneva Re to provide, among

other services, certain underwriting and administrative services to Geneva Re. Ryan Re receives a service fee equal to

115% of the administrative costs incurred by Ryan Re in providing these services to Geneva Re. Revenue earned from

Geneva Re was $0.4 million for the three months ended March 31, 2026 and 2025. Receivables due from Geneva Re under

this agreement were $0.4 million and $0.8 million as of March 31, 2026 and December 31, 2025, respectively.

Ryan Re is party to a services agreement with Geneva Re under which Ryan Re subcontracts certain services to Geneva Re

that are required for the segregated account of the Segregated Account Company on behalf of the Third-party Insurer. The

Company incurred expense of $2.9 million and $2.7 million during the three months ended March 31, 2026 and 2025,

respectively. As of March 31, 2026 and December 31, 2025, the Company had prepaid expenses of $3.5 million and $6.4

million, respectively, related to this services agreement. The prepaid expenses are included in Other currents assets on the

Consolidated Balance Sheets.

Claims Management Agreement with VSIC

Velocity Claims, LLC (“Velocity Claims”) and Velocity, wholly owned subsidiaries of the Company, are party to a claims

management agreement with VSIC under which Velocity Claims receives compensation equal to 1% of indemnity and

expenses paid, net of subrogation, for each claim on which Velocity participates. Revenue recognized from this agreement

was $0.1 million for the three months ended March 31, 2026. Receivables due from VSIC under this agreement were $0.1

million as of March 31, 2026 and December 31, 2025.

Company Leasing of Corporate Jets

In the ordinary course of its business, the Company charters executive jets for business purposes from Executive Jet

Management (“EJM”), a third-party service provider. Mr. Ryan indirectly owns aircraft that he leases to EJM for EJM’s

charter operations for which he receives remuneration from EJM. The Company pays market rates for chartering aircraft

through EJM, unless the particular aircraft chartered is one that Mr. Ryan indirectly owns, in which case the Company

receives a discount and pays below market rates. Generally, the Company has been able to charter aircraft indirectly owned

by Mr. Ryan and make use of this discount. The Company recognized expense related to business usage of the aircraft of

$0.2 million and $0.1 million for the three months ended March 31, 2026 and 2025, respectively.

16. Income Taxes

The Company is taxed as a corporation for income tax purposes and is subject to federal, state, and local taxes with respect

to its allocable share of any net taxable income from the LLC. The LLC is a limited liability company taxed as a

partnership for income tax purposes, and its taxable income or loss is passed through to its members, including the

Company. The LLC is subject to income taxes on its taxable income in certain foreign countries, in certain state and local

jurisdictions that impose income taxes on partnerships, and on the taxable income of its U.S. corporate subsidiaries.

Effective Tax Rate

The Company’s effective tax rate from continuing operations was 13.80% and 108.60% for the three months ended

March 31, 2026 and 2025, respectively. The effective tax rate for the three months ended March 31, 2026, was lower than

the 21% statutory rate primarily as result of the income attributable to the non-controlling interests. The effective tax rate

for the three months ended March 31, 2025, was higher than the 21% statutory rate primarily as a result of the non-cash

deferred income tax expense from the CCR related to the acquisition of Velocity, which is described below, offset by a

decrease related to the income attributable to the non-controlling interests.

The Company does not believe it has any significant uncertain tax positions and therefore has no unrecognized tax benefits

as of March 31, 2026, that, if recognized, would affect the annual effective tax rate. The Company does not anticipate

material changes in unrecognized tax benefits within the next twelve-month period.

Deferred Taxes

The Company reported Deferred tax assets, net of deferred tax liabilities where appropriate, of $305.6 million and $310.1

million as of March 31, 2026 and December 31, 2025, respectively, on the Consolidated Balance Sheets. As of March 31,

2026, the Company concluded that, based on the weight of all available positive and negative evidence, the deferred tax

assets with respect to the Company’s basis difference in its investment in the LLC are more likely than not to be realized.

As such, no valuation allowance has been recognized against that basis difference.

Common Control Reorganization (CCR)

Subsequent to the acquisition of Velocity, which was acquired by a wholly owned subsidiary of Ryan Specialty Holdings,

Inc., the Company converted Velocity into an LLC (“Velocity LLC”) and transferred Velocity LLC to the LLC. This legal

entity reorganization was considered a transaction between entities under common control. The CCR resulted in a

reduction of deferred tax assets in the Company’s basis difference in its investment in the LLC of $145.2 million and a

non-cash deferred income tax expense of $48.1 million for the three months ended March 31, 2025. Additionally, the

difference between the carrying value and the fair value of the investment transferred under common control resulted in an

increase of $29.8 million to Non-controlling interests on the Consolidated Statements of Stockholders’ Equity during the

three months ended March 31, 2025.

Tax Receivable Agreement (TRA)

The Company is party to a TRA with current and certain former LLC Unitholders. The TRA provides for the payment by

the Company to the current and certain former LLC Unitholders of 85% of the net cash savings, if any, in U.S. federal,

state, and local income taxes that the Company actually realizes (or under certain circumstances is deemed to realize) from

(i) certain increases in the tax basis of the assets of the LLC resulting from purchases or exchanges of LLC Common Units

(“Exchange Tax Attributes”), (ii) certain tax attributes of the LLC that existed prior to the IPO (“Pre-IPO M&A Tax

Attributes”), (iii) certain favorable “remedial” partnership tax allocations to which the Company becomes entitled (if any),

and (iv) certain other tax benefits related to the Company entering into the TRA, including certain tax benefits attributable

to payments that the Company makes under the TRA (“TRA Payment Tax Attributes”). The Company recognizes a

liability on the Consolidated Balance Sheets based on the undiscounted estimated future payments under the TRA. The

amounts payable under the TRA will vary depending upon a number of factors, including the amount, character, and timing

of the taxable income of the Company in the future.

Based on current projections, the Company anticipates having sufficient taxable income to be able to realize the benefits

and has recorded Tax Receivable Agreement liabilities of $460.8 million related to these benefits on the Consolidated

Balance Sheets as of March 31, 2026. The following summarizes activity related to the Tax Receivable Agreement

liabilities:


	Exchange Tax Attributes	Pre-IPO M&A Tax Attributes	TRA Payment Tax Attributes	TRA Liabilities
Balance at December 31, 2025	$271,979	$77,349	$109,669	$458,997
Exchange of LLC Common Units	1,146	116	585	1,847
Balance at March 31, 2026	$273,125	$77,465	$110,254	$460,844

During the three months ended March 31, 2026 and 2025, increases to the TRA liabilities of $1.8 million and $11.1

million, respectively, due to exchanges of LLC Common Units for Class A common stock were recognized in Additional

paid-in capital on the Consolidated Statements of Stockholders’ Equity.

Other Comprehensive Income

The following table summarizes the tax effects on the components of OCI:


	Three Months Ended March 31,
	2026	2025
Gain on interest rate cap	$—	$(220)
Gain on interest rate cap reclassified to earnings	—	534
Foreign currency translation adjustments	1,641	(2,984)
Change in share of equity method investments’ other comprehensive income (loss)	(76)	462

17. Accumulated Other Comprehensive Income (Loss)

Changes in the balance of Accumulated other comprehensive income (loss), net of tax, were as follows:


	Foreign Currency Translation Adjustments	Change in EMI Other Comprehensive Income (Loss)1	Total
Balance at December 31, 2025	$13,778	$67	$13,845
Other comprehensive income (loss) before reclassifications	(11,262)	518	(10,744)
Amounts reclassified to earnings	—	—	—
Other comprehensive income (loss)	$(11,262)	$518	$(10,744)
Less: Non-controlling interests	(6,592)	303	(6,289)
Balance at March 31, 2026	$9,108	$282	$9,390


	Gain on Interest Rate Cap		Foreign Currency Translation Adjustments	Change in EMI Other Comprehensive Income (Loss)1	Total
Balance at December 31, 2024	$1,435		$(3,010)	$(221)	$(1,796)
Other comprehensive income (loss) before reclassifications	1,414	(3,419)	18,632	(2,909)	17,137
Amounts reclassified to earnings	(3,419)		—	—	(3,419)
Other comprehensive income (loss)	$(2,005)		$18,632	$(2,909)	$13,718
Less: Non-controlling interests	(1,107)		10,151	(1,594)	7,450
Balance at March 31, 2025	$537		$5,471	$(1,536)	$4,472

1 Change in share of equity method investments’ other comprehensive income (loss) on the Consolidated Statements of

Comprehensive Income (Loss).

18. Segment Reporting

Segment Information

Ryan Specialty is organized as a single operating and reporting segment. The Company’s chief operating decision maker

(“CODM”) is its Chief Executive Officer. The Company has identified its single operating segment utilizing a management

approach that aligns with the manner in which the CODM utilizes the Company’s consolidated financial information for

resource allocation and performance evaluation. Refer to Note 1, Basis of Presentation, for a description of the Company’s

products and services and to Note 2, Revenue from Contracts with Customers, for the disaggregation of revenue by

Specialty.

The CODM utilizes consolidated net income (loss) as the primary metric to monitor budget versus actual results, assess the

performance of the business, and make decisions regarding resource allocation. The following table provides information

about the Company’s revenue and includes a reconciliation to net income (loss):


	Three Months Ended March 31,
	2026	2025
Net commissions and fees	$782,903	$676,128
Fiduciary investment income	12,326	14,038
Total revenue	$795,229	$690,166

Compensation-related expense1	461,832	397,428
General and administrative expense2	101,365	92,237
Other segment items3	40,740	46,684

Depreciation and amortization	69,402	67,624
Change in contingent consideration	27,294	(14,042)
Interest income	(1,146)	(3,103)
Interest expense	54,879	57,611
Income from equity method investments	(5,531)	(4,937)
Other non-operating income	(711)	(377)
Income tax expense	6,508	55,430
Net income (loss)	$40,597	$(4,389)

1 Compensation-related expense includes salaries, commissions, bonus compensation, benefits, payroll taxes, and

contractor costs, and excludes acquisition and restructuring related expenses and equity-based compensation.

2 General and administrative expense includes travel and entertainment, professional services, occupancy, IT related costs,

and other operating costs, and excludes acquisition and restructuring related expenses.

3 Other segment items include acquisition and restructuring related expenses and equity-based compensation.

Geographic Information

Revenue is primarily recognized based on the country in which the services are performed. The following table illustrates

the geographic regions for the Company’s revenue:


	Three Months Ended March 31,
	2026	2025
United States	$742,598	$649,097
Foreign	52,631	41,069
Total revenue	$795,229	$690,166

The Company did not have material revenue from operations in any individual foreign country for the three months ended

March 31, 2026 or 2025. Asset information is not presented to the CODM. Substantially all of the Company’s tangible

long-lived assets are located in the United States; therefore, geographic information for long-lived assets is not presented.

19. Supplemental Financial Information

Interest Income

The Company earned interest income of $1.1 million and $3.1 million during the three months ended March 31, 2026 and

2025, respectively, on its operating Cash and cash equivalents. Interest income is recognized in Interest expense, net on the

Consolidated Statements of Income (Loss).

Supplemental Cash Flow Information

The following represents the supplemental cash flow information of the Company:


	Three Months Ended March 31,
	2026	2025
Cash paid (received) for:
Interest, net1	$71,609	$62,946
Income taxes, net of refunds	(2,063)	530
Non-cash investing and financing activities:
Non-controlling interest holders’ tax distributions declared but unpaid	$10,230	$8,443
Tax Receivable Agreement liabilities	1,847	11,090
Excise tax payable on net share repurchases	286	—
Dividend Equivalents and Declared Distributions liabilities	787	1,014
Contingent consideration liabilities	—	21,130

1 Interest paid is presented net of $4.0 million of cash received in connection with the Company’s interest rate cap for the

three months ended March 31, 2025. See Note 11, Derivatives, for further information on the interest rate cap.

20. Subsequent Events

The Company has evaluated subsequent events through May 1, 2026, and has concluded that no events have occurred that

require disclosure other than the events listed below.

On April 30, 2026, the Company’s Board of Directors approved a quarterly cash dividend of $0.13 per share of outstanding

Class A common stock. The quarterly dividend will be payable on May 26, 2026, to shareholders of record of Class A

common stock as of the close of business on May 12, 2026. Any future dividends will be subject to the approval of the

Company’s Board of Directors.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS

The following discussion and analysis summarizes the significant factors affecting the consolidated operating results,

financial condition, liquidity, and cash flows of the Company as of and for the periods presented below. The following

discussion and analysis should be read in conjunction with our Consolidated Financial Statements and the related notes

included elsewhere in this Quarterly Report on Form 10-Q and in the Annual Report on Form 10-K for the year ended

December 31, 2025, which was filed with the SEC on February 13, 2026. The discussion contains forward-looking

statements that are based on the beliefs of management, as well as assumptions made by, and information currently

available to, our management. Actual results could differ materially from those discussed in or implied by forward-looking

statements as a result of various factors, including those discussed below and in our Annual Report on Form 10-K,

particularly in the sections entitled “Risk Factors” and “Information Concerning Forward-Looking Statements.”

The following discussion provides commentary on the financial results derived from our unaudited financial statements for

the three months ended March 31, 2026 and 2025, prepared in accordance with U.S. GAAP. In addition, we regularly

review the following Non-GAAP measures when assessing performance: Organic revenue growth rate, Adjusted

compensation and benefits expense, Adjusted compensation and benefits expense ratio, Adjusted general and

administrative expense, Adjusted general and administrative expense ratio, Adjusted EBITDAC, Adjusted EBITDAC

margin, Adjusted net income, Adjusted net income margin, and Adjusted diluted earnings per share. See “Non-GAAP

Financial Measures and Key Performance Indicators” for further information.

Overview

Founded by Patrick G. Ryan in 2010, we are a service provider of specialty products and solutions for insurance brokers,

agents, and carriers. We provide distribution, underwriting, product development, administration, and risk management

services by acting predominantly as a wholesale broker and a managing underwriter or a program administrator with

delegated authority from insurance carriers. Our mission is to provide industry-leading innovative specialty insurance

solutions for insurance brokers, agents, and carriers.

For retail insurance agents and brokers, we assist in the placement of complex or otherwise hard-to-place risks. For

insurance and reinsurance carriers, we predominantly work with retail and wholesale insurance brokers to source, onboard,

underwrite, and service these same types of risks. A significant majority of the premiums we place are bound in the E&S

market, which includes Lloyd’s of London. There is often significantly more flexibility in terms, conditions, and rates in

the E&S market relative to the Admitted or “standard” insurance market. We believe that the additional freedom to craft

bespoke terms and conditions in the E&S market allows us to best meet the needs of our trading partners, provide unique

solutions, and drive innovation. We believe our success has been achieved by providing best-in-class intellectual capital,

leveraging our trusted and long-standing relationships, and developing differentiated solutions at a scale unmatched by

many of our competitors.

Significant Events and Transactions

Corporate Structure

We are a holding company and our sole material asset is a controlling equity interest in New LLC, which is also a holding

company and its sole material asset is a controlling equity interest in the LLC. The Company operates and controls the

business and affairs of, and consolidates the financial results of, the LLC through New LLC. We conduct our business

through the LLC. As the LLC is substantively the same as New LLC, for the purpose of this discussion we will refer to

both New LLC and the LLC as the “LLC”.

The LLC is a limited liability company taxed as a partnership for income tax purposes, and its taxable income or loss is

passed through to its members, including the Company. The LLC is subject to income taxes on its taxable income in certain

foreign countries, in certain state and local jurisdictions that impose income taxes on partnerships, and on the taxable

income of its U.S. corporate subsidiaries. As a result of our ownership of LLC Common Units, we are subject to U.S.

federal, state, and local income taxes with respect to our allocable share of any taxable income of the LLC and are taxed at

the prevailing corporate tax rates. We intend to cause the LLC to make distributions in an amount that is at least sufficient

to allow us to pay our tax obligations and operating expenses, including distributions to fund any ordinary course payments

due under the Tax Receivable Agreement. See “Liquidity and Capital Resources - Tax Receivable Agreement” for

additional information about the TRA.

Empower Program

In the first quarter of 2026, we initiated a three-year restructuring program (the “Empower Program”) that will streamline

our brokerage, binding, and underwriting operations, optimize our scale, accelerate our data and technology strategies, and

enhance efficiencies across all of our Specialties. The program is estimated to result in approximately $160 million of

cumulative one-time charges through 2028, funded through operating cash flow, and is expected to generate annual savings

of approximately $80 million in 2029. Actions taken under the Empower Program are expected to be completed by the end

of 2028. Restructuring costs will primarily be included in General and administrative expense, relating to third-party

professional services, technology and data initiatives, and other expenses. The remaining costs will be incurred through

Compensation and benefits expense, predominately relating to third-party contractor and other workforce-related costs.

We began recognizing costs associated with the restructuring plan in the first quarter of 2026. For the three months ended

March 31, 2026, we incurred restructuring and related costs of $5.9 million, which represent cumulative costs since the

inception of the program. Of the cumulative $5.9 million expense, $3.4 million was incurred in general and administrative

expense with the remaining being workforce-related costs. While the current results of the Empower Program are in line

with expectations, changes to the total savings estimate and timing of the Empower Program may evolve as we continue to

progress through the program and evaluate other potential opportunities. The actual amounts and timing may vary

significantly based on various factors.

Key Factors Affecting Our Performance

Our historical financial performance has been, and we expect our financial performance in the future to be, driven by our

ability to:

Pursue Strategic Acquisitions

We have successfully integrated businesses complementary to our own to increase both our distribution reach and our

product and service capabilities. We continuously evaluate acquisitions and intend to further pursue targeted acquisitions

that complement our product and service capabilities or provide us access to new markets. We have previously made, and

intend to continue to make, acquisitions with the objective of enhancing our human capital and product and service

capabilities, entering natural adjacencies, and expanding our geographic presence. Our ability to successfully pursue

strategic acquisitions is dependent upon a number of factors, including sustained execution of a disciplined and selective

acquisition strategy which requires acquisition targets to have a cultural and strategic fit, competition for these assets,

purchase price multiples that we deem appropriate and our ability to effectively integrate targeted companies or assets and

grow our business. We do not have agreements or commitments for any material acquisitions at this time.

Deepen and Broaden our Relationships with Retail Broker Trading Partners

We have deep engagement with our retail broker trading partners, and we believe we have the ability to transact in even

greater volume with nearly all of them. For example, in 2025, our revenue derived from the Top 100 firms (as ranked by

Business Insurance) expanded faster than our Organic revenue growth rate of 10.1%. Our ability to deepen and broaden

relationships with our retail broker trading partners and increase sales is dependent upon a number of factors, including

client satisfaction with our distribution reach and our product capabilities, retail brokers continuing to require or desire our

services, competition, pricing, economic conditions, and spending on our product offerings.

Build Our Delegated Authority Business

We believe there is substantial opportunity to continue to grow our Delegated Authority business, which includes both our

Binding Authority Specialty and Underwriting Management Specialty. We believe that both M&A consolidation and panel

consolidation have a long runway. We believe that both M&A consolidation and the use and reliance on scaled delegated

Underwriting Management will continue to grow. Our ability to grow this business is dependent upon a number of factors,

including a continuing ability to secure sufficient capital support from insurers, the quality of our services and product

offerings, marketing and sales efforts to drive new business prospects and execution, new product offerings, the pricing and

quality of our competitors’ offerings, and the growth in demand for the insurance products.

Invest in Operations and Growth

We have invested heavily in building a durable business that is able to adapt to the continuously evolving specialty and

E&S markets and intend to continue to do so. We are focused on enhancing the breadth of our product and service

offerings as well as developing and launching new solutions to address the evolving needs of the specialty insurance

industry and markets. Our future success is dependent upon a number of factors, including our ability to successfully

develop, market, and sell existing and new products and services to both new and existing trading partners. We will

continue to prioritize strategic investments that support revenue growth such as investments in talent, de novo formations,

product innovation and solutions, M&A, and technology in order to maximize long-term value creation, which could have

a short-term margin impact.

The Empower Program initiated in the first quarter of 2026 is designed to enhance efficiencies across all of our Specialties.

The efficiencies we gain through the Empower Program are expected to allow us to continue making strategic investments

in growth, top-tier talent, and de novo formations, and address the rapidly evolving needs of our clients.

Generate Commission Regardless of the State of the Specialty and E&S Markets

We earn commissions, which are calculated as a percentage of the total insurance policy premium, and fees. Changes in the

insurance market or specialty lines that are our focus, characterized by a period of increasing (or declining) premium rates,

could positively (or negatively) impact our profitability.

Managing Changing Macroeconomic Conditions

Growth in certain lines of business, such as project-based construction and M&A transactional liability insurance, is

partially dependent on a variety of macroeconomic factors inasmuch as binding the underlying insurance coverage is

subject to the underlying activity occurring. In periods of economic growth, liquid credit markets, and favorable interest

rates, this underlying activity can accelerate and provide tailwinds to our growth. In periods of economic decline, tight

credit markets, and unfavorable interest rates, this underlying activity can slow or be delayed and provide headwinds to our

growth. We believe over the long term these lines of business will continue to grow.

Leverage the Growth of the Specialty and E&S Markets

The growing relevance of the specialty and E&S markets has been driven by the rapid emergence and sustained prevalence

of large, complex, high-hazard, and otherwise hard-to-place risks across many lines of insurance. This trend continued in

2025, with $125 billion of insured catastrophe losses, driven by $52 billion of insured losses related to severe convective

storms (“SCS”) with 19 SCS events that caused losses in excess of $1 billion, which together accounted for the third-

highest annual total for insured losses on record for SCS events, and over $41 billion in losses generated from California

wildfires. The year also included floods in central Texas and the Mississippi valley, causing over 135 fatalities and over $3

billion in insured losses. Additionally, these risks include the potential for more severe hurricanes that occur with greater

frequency, more devastating wildfires, more frequent flooding, escalating jury verdicts and social inflation, geographic

shifts in population density, a proliferation of cyber threats, novel health risks, risks associated with large sports and

entertainment venues, building and labor cost inflation relative to insured value, and the transformation of the economy to a

“digital first” mode of doing business. We believe that as the complexity of the specialty and E&S markets continues to

escalate, wholesale brokers and managing underwriters that do not have sufficient scale, or the financial and intellectual

capital to invest in the required specialty capabilities, will struggle to compete effectively. This will further the trend of

market share consolidation among the wholesale firms that do have these capabilities. We will continue to invest in our

intellectual capital to innovate and offer custom solutions and products to better address these evolving market

fundamentals.

Although we believe this growth will continue, we recognize that the growth of the specialty and E&S markets might not

be linear as risks can and do shift between the E&S, including the specialty market, and non-E&S markets as market

factors change and evolve. For example, we benefited from a rapid increase in both the flow of property risks into the

wholesale channel and the premium rate charged for those risks in 2023 and the first half of 2024 as the frequency and

severity of catastrophe losses, attritional losses and secondary perils such as severe convective storms, economic inflation,

concentration of exposures, higher retentions of risk, and higher reinsurance costs applied pressure to insurers and capacity

tightened. Beginning in the second half of 2024 and through the first quarter of 2026, the specialty and E&S markets

experienced a shift in these trends as insurance capacity for these property risks increased, which resulted in a decline in

property premium rates. We believe these factors have created additional opportunities for retailers to place property

coverage directly, and we believe the market dynamics exist for these factors to potentially continue throughout 2026.

Components of Results of Operations

Revenue

Net Commissions and Fees

Net commissions and fees are derived primarily from our three Specialties and are paid for our role as an intermediary in

facilitating the placement of coverage in the insurance distribution chain. Net commissions and policy fees are generally

calculated as a percentage of the total insurance policy premium placed, although fees can often be a fixed amount

irrespective of the premium, and we also receive supplemental commissions based on the volume placed or profitability of

a book of business. We share a portion of these net commissions and policy fees with the retail insurance broker and

recognize revenue on a net basis. Additionally, carriers may also pay us a contingent commission or volume-based

commission, both of which represent forms of contingent or supplemental consideration associated with the placement of

coverage and are based primarily on underwriting results, but may also contain considerations for only volume, growth,

and/or retention. Although we have compensation arrangements called contingent commissions in all three Specialties that

are based in whole or in part on the underwriting performance, we do not take any direct insurance risk other than through

our equity method investments in Geneva Re, Ltd through Ryan Investment Holdings, LLC and VSIC. We also receive

loss mitigation and other fees, some of which are not dependent on the placement of a risk.

In our Wholesale Brokerage and Binding Authority Specialties, we generally work with retail insurance brokers to secure

insurance coverage for their clients, who are the ultimate insured party. Our Wholesale Brokerage and Binding Authority

Specialties generate revenues through commissions and fees from clients, as well as through supplemental commissions,

which may be contingent commissions or volume-based commissions from carriers. Commission rates and fees vary

depending upon several factors, which may include the amount of premium, the type of insurance coverage provided, the

particular services provided to a client or carrier, and the capacity in which we act. Payment terms are consistent with

current industry practice.

In our Underwriting Management Specialty, we utilize delegated authority granted to us by carriers and we work with retail

insurance brokers or wholesale brokers to secure insurance coverage for the ultimate insured party. Our Underwriting

Management Specialty generates revenues through insurance and reinsurance commissions and fees from clients and

through contingent commissions from carriers. Commission rates and fees vary depending upon several factors including

the premium, the type of coverage, and additional services provided to the client. Payment terms are consistent with current

industry practice.

Fiduciary Investment Income

Fiduciary investment income consists of interest earned on insurance premiums and surplus lines taxes that are held in a

fiduciary capacity, in cash and cash equivalents, until disbursed.

Expenses

Compensation and Benefits

Compensation and benefits is our largest expense. It consists of (i) salary, incentives and benefits to employees, and

commissions to our producers and (ii) equity-based compensation associated with the grants of awards to employees,

executive officers, and directors. We operate in competitive markets for human capital and we need to maintain

competitive compensation levels in order to maintain and grow our talent base.

General and Administrative

General and administrative expense includes travel and entertainment expenses, information technology, occupancy-related

expenses, foreign exchange, legal, insurance and other professional fees, and other costs associated with our operations. In

particular, our travel and entertainment expenses, information technology expenses, occupancy-related expenses, and

professional services expenses generally increase or decrease in relative proportion to the number of our employees and the

overall size and scale of our business operations.

Amortization

Amortization expense consists primarily of amortization related to intangible assets we acquired in connection with our

acquisitions. Intangible assets consist of customer relationships, trade names, assembled workforce, and internally

developed software.

Interest Expense, Net

Interest expense, net consists of interest payable on indebtedness, amortization of the Company’s interest rate cap in 2025,

imputed interest on contingent consideration, and amortization of deferred debt issuance costs, offset by interest income on

the Company’s Cash and cash equivalents balances and payments received in relation to the interest rate cap, which

expired at the end of 2025.

Other Non-Operating Income

For the three months ended March 31, 2026, Other non-operating income consisted of seller reimbursement of acquisition-

related retention incentives, sublease income, and forfeitures of vested equity awards. For the three months ended

March 31, 2025, Other non-operating income consisted of seller reimbursement of acquisition-related retention incentives

and sublease income.

Income Tax Expense

Income tax expense includes tax on the Company’s allocable share of any net taxable income from the LLC, from certain

state and local jurisdictions that impose taxes on partnerships, as well as earnings from our foreign subsidiaries and C-

Corporations subject to entity level taxation, and income tax expense recognized as a result of the Common Control

Reorganization (“CCR”) subsequent to the Velocity acquisition in the first quarter of 2025.

Non-Controlling Interests

Net income (loss) and Other comprehensive income (loss) are attributed to the non-controlling interests based on the

weighted-average LLC Common Units outstanding during the period and is presented on the Consolidated Statements of

Income (Loss). Refer to “Note 8, Stockholders’ Equity” of the unaudited quarterly consolidated financial statements for

more information.

Results of Operations

Below is a summary table of the financial results and Non-GAAP measures that we find relevant to our business

operations:


	Three Months Ended March 31,		Change
(in thousands, except percentages and per share data)	2026	2025	$	%
Revenue
Net commissions and fees	$782,903	$676,128	$106,775	15.8 %
Fiduciary investment income	12,326	14,038	(1,712)	(12.2)
Total revenue	$795,229	$690,166	$105,063	15.2 %
Expenses
Compensation and benefits	495,176	430,289	64,887	15.1
General and administrative	108,761	106,060	2,701	2.5
Amortization	65,340	64,985	355	0.5
Depreciation	4,062	2,639	1,423	53.9
Change in contingent consideration	27,294	(14,042)	41,336	NM
Total operating expenses	$700,633	$589,931	$110,702	18.8 %
Operating income	$94,596	$100,235	$(5,639)	(5.6 %)
Interest expense, net	53,733	54,508	(775)	(1.4)
Income from equity method investments	(5,531)	(4,937)	(594)	12.0
Other non-operating income	(711)	(377)	(334)	88.6
Income before income taxes	$47,105	$51,041	$(3,936)	(7.7 %)
Income tax expense	6,508	55,430	(48,922)	(88.3)
Net income (loss)	$40,597	$(4,389)	$44,986	NM
GAAP financial measures
Total revenue	$795,229	$690,166	$105,063	15.2 %
Net commissions and fees	782,903	676,128	106,775	15.8
Compensation and benefits	495,176	430,289	64,887	15.1
General and administrative	108,761	106,060	2,701	2.5
Net income (loss)	40,597	(4,389)	44,986	NM
Compensation and benefits expense ratio (1)	62.3 %	62.3 %
General and administrative expense ratio (2)	13.7 %	15.4 %
Net income (loss) margin (3)	5.1 %	(0.6 %)
Earnings (loss) per share (4)	$0.14	$(0.22)
Diluted earnings (loss) per share (4)	$0.13	$(0.22)
Non-GAAP financial measures*
Organic revenue growth rate	11.8 %	12.9 %
Adjusted compensation and benefits expense	$461,832	$397,428	$64,404	16.2%
Adjusted compensation and benefits expense ratio	58.1 %	57.6 %
Adjusted general and administrative expense	$101,365	$92,237	$9,128	9.9%
Adjusted general and administrative expense ratio	12.7 %	13.4 %
Adjusted EBITDAC	$232,033	$200,501	$31,532	15.7%
Adjusted EBITDAC margin	29.2 %	29.1 %
Adjusted net income	$130,728	$107,839	$22,889	21.2%
Adjusted net income margin	16.4 %	15.6 %
Adjusted diluted earnings per share	$0.47	$0.39	$0.08	20.5%

NM represents “Not Meaningful.”

(1)Compensation and benefits expense ratio is defined as Compensation and benefits expense divided by Total revenue.

(2)General and administrative expense ratio is defined as General and administrative expense divided by Total revenue.

(3)Net income (loss) margin is defined as Net income (loss) divided by Total revenue.

(4)See “Note 10, Earnings (Loss) Per Share” of the unaudited quarterly consolidated financial statements for further

discussion of how these metrics are calculated.

*These measures are Non-GAAP. Please refer to the section entitled “Non-GAAP Financial Measures and Key

Performance Indicators” below for definitions and reconciliations to the most directly comparable GAAP measure.

Comparison of the Three Months Ended March 31, 2026 and 2025

Revenue

Total Revenue

Total revenue increased by $105.1 million, or 15.2%, from $690.2 million to $795.2 million for the three months ended

March 31, 2026, as compared to the same period in the prior year. The following were the principal drivers of the increase:

•$76.4 million, or 11.0%, of the period-over-period change in Total revenue was due to organic revenue growth

in Net commissions and fees. Organic revenue growth represents the change in Net commissions and fees

revenue, as compared to the same period for the year prior, adjusted for Net commissions and fees attributable

to recent acquisitions during the first twelve months of Ryan Specialty’s ownership, and other adjustments

such as the removal of the impact of contingent commissions and the impact of changes in foreign exchange

rates. In aggregate, our net commission rates were consistent period-over-period. Also, we grew our client

relationships, in aggregate, within each of our three Specialties. The growth of these relationships is due to the

combination of the growing specialty and E&S markets and winning new business from competitors. We

experienced moderate growth across the majority of our casualty lines driven by some rate moderation, offset

by a moderate pullback across our property portfolio driven by a continued decline in rates and retailers

realizing additional opportunities to place coverage directly. This decline was partially offset by strong new

business generation. Growth in the quarter was strongest in our Underwriting Management Specialty, with

growth across our three Specialties driven by an increase in the flow of risks into the specialty and E&S

markets;

•$15.8 million, or 2.3%, of the period-over-period change in Total revenue was due to contingent commissions

and the impact of foreign exchange rates on the Company’s Net commissions and fees;

•$14.6 million, or 2.1%, of the period-over-period change in Total revenue was due to acquisitions during their

first twelve months of ownership by the Company. Within acquisition revenue is a $0.6 million offset in

revenue period-over-period relating to the sale of a small non-subscription workers compensation book of

business at the end of 2024 and a small MGU in 2025; and

•A decline of $1.7 million, or 0.2%, of the period-over-period change in Total revenue was due to a decrease in

Fiduciary investment income, caused by a decline in interest rates compared to the prior year period.


	Three Months Ended March 31,
(in thousands, except percentages)	2026	% of total	2025	% of total	Change
Wholesale Brokerage	$377,796	48.3 %	$360,788	53.4 %	$17,008	4.7 %
Binding Authority	110,000	14.0	101,950	15.1	8,050	7.9
Underwriting Management	295,107	37.7	213,390	31.5	81,717	38.3
Total Net commissions and fees	$782,903		$676,128		$106,775	15.8 %

Wholesale Brokerage Net commissions and fees increased by $17.0 million, or 4.7%, period-over-period, primarily due to

organic growth within the Specialty for the quarter and contributions from the JM Wilson acquisition.

Binding Authority Net commissions and fees increased by $8.1 million, or 7.9%, period-over-period, primarily due to

organic growth within the Specialty for the quarter as well as an increase in contingent commissions and contributions

from the JM Wilson acquisition.

Underwriting Management Net commissions and fees increased by $81.7 million, or 38.3%, period-over-period, primarily

due to strong organic growth within the Specialty for the quarter, contributions from recent acquisitions, and an increase in

contingent commissions.

The following table sets forth our revenue by type of commission and fees:


	Three Months Ended March 31,
(in thousands, except percentages)	2026	% of total	2025	% of total	Change
Net commissions and policy fees	$717,553	91.7 %	$623,966	92.3 %	$93,587	15.0 %
Supplemental and contingent commissions	49,117	6.3	37,773	5.6	11,344	30.0
Loss mitigation and other fees	16,233	2.0	14,389	2.1	1,844	12.8
Total Net commissions and fees	$782,903		$676,128		$106,775	15.8 %

Net commissions and policy fees grew 15.0%, in line with the overall net commissions and fee revenue growth of 15.8%,

for the three months ended March 31, 2026, as compared to the same period in the prior year. The main drivers of this

growth continue to be new business wins and expansion of ongoing client relationships in response to the increasing

demand for new, complex specialty and E&S products as well as the inflow of risks from the Admitted market into the

specialty and E&S markets, as well as contributions from recent acquisitions. In aggregate, we experienced stable

commission rates period-over-period.

Supplemental and contingent commissions increased 30.0% period-over-period driven by the performance of risks placed

on eligible business earning profit-based or volume-based commissions as well as contributions from recent acquisitions.

Loss mitigation and other fees increased 12.8% period-over-period primarily due to increased capital markets activity,

captive management and other risk management service fees from the placement of alternative risk insurance solutions as

well as contributions from recent acquisitions.

Expenses

Compensation and Benefits

Compensation and benefits expense increased by $64.9 million, or 15.1%, from $430.3 million to $495.2 million for the

three months ended March 31, 2026, compared to the same period in 2025. The following were the principal drivers of this

increase:

•$50.0 million of the increase was driven by (i) the addition of 588 employees compared to the same period in

the prior year, inclusive of acquired employees, and (ii) growth in the business. Overall headcount increased

to 6,144 full-time employees as of March 31, 2026, from 5,556 as of March 31, 2025;

•Commissions increased $14.7 million, or 8.1%, period-over-period, driven by the 4.7% increase in Wholesale

Brokerage and 7.9% increase in Binding Authority Net commissions and fees; and

•A $2.5 million increase in Restructuring and related expense due to the Empower Program initiated in the

first quarter of 2026.

•The increases were partially offset by a $2.3 million decrease in Initial public offering related expense

associated with the natural runoff of equity-based compensation expense as awards continue to vest.

The net impact of revenue growth and the factors above resulted in a consistent Compensation and benefits expense ratio of

62.3% in both periods.

In general, we expect to continue experiencing a rise in commissions, salaries, incentives, and benefits expense

commensurate with our expected growth in business volume, revenue, and headcount.

General and Administrative

General and administrative expense increased by $2.7 million, or 2.5%, from $106.1 million to $108.8 million for the three

months ended March 31, 2026, as compared to the same period in the prior year. The following were the principal drivers

of this increase:

•$8.0 million of increased IT charges;

•A $1.1 million increase was driven by growth in the business. Such expenses incurred to accommodate both

organic and inorganic revenue growth include travel and entertainment, occupancy, insurance, and foreign

exchange; and

•A $3.4 million increase in Restructuring and related expense due to the Empower Program initiated in the first

quarter of 2026.

•The increase was partially offset by a $9.8 million decline in Acquisition-related expense associated with lower

diligence, transaction-related, and integration activity in the period.

The net impact of revenue growth and the factors listed above resulted in a General and administrative expense ratio

decrease of 1.7% from 15.4% to 13.7% period-over-period.

Amortization

Amortization expense increased by $0.3 million from $65.0 million to $65.3 million for the three months ended March 31,

2026, compared to the same period in the prior year. The main driver of the increase was the amortization of intangible

assets from recent acquisitions. Our intangible assets decreased by $91.8 million period-over-period.

Interest Expense, Net

Interest expense, net decreased $0.8 million, or 1.4%, from $54.5 million to $53.7 million for the three months ended

March 31, 2026, compared to the same period in the prior year. The main driver of the decrease in Interest expense, net for

the three months ended March 31, 2026, was a decrease in interest rates.

Other Non-Operating Income

Other non-operating income increased by $0.3 million from $0.4 million to $0.7 million for the three months ended

March 31, 2026. For the three months ended March 31, 2026, Other non-operating income consisted of $0.5 million of

forfeitures of vested equity awards, $0.1 million of seller reimbursement of acquisition-related retention incentives, and

$0.1 million of sublease income. For the three months ended March 31, 2025, Other non-operating income consisted of

$0.3 million of seller reimbursement of acquisition-related retention incentives and $0.1 million of sublease income.

Income Before Income Taxes

Income before income taxes decreased $3.9 million from $51.0 million to $47.1 million for the three months ended

March 31, 2026, compared to the same period in the prior year as a result of the factors described above.

Income Tax Expense

Income tax expense decreased $48.9 million from $55.4 million to $6.5 million for the three months ended March 31,

2026, compared to the same period in the prior year. The decrease was primarily a result of $48.1 million of deferred

income tax expense recognized as a result of the CCR subsequent to the Velocity acquisition in the first quarter of 2025.

The CCR was a one-time, non-cash income tax expense incurred at Ryan Specialty Holdings, Inc., and our federal and state

tax rate, net of federal benefit, is unaffected.

Net Income (loss)

Net income (loss) increased $45.0 million from a loss of $4.4 million to income of $40.6 million for the three months

ended March 31, 2026, compared to the same period in the prior year as a result of the factors described above.

Non-GAAP Financial Measures and Key Performance Indicators

In assessing the performance of our business, we use non-GAAP financial measures that are derived from our consolidated

financial information, but which are not presented in our consolidated financial statements prepared in accordance with

GAAP. We consider these non-GAAP financial measures to be useful metrics for management and investors to facilitate

operating performance comparisons from period to period by excluding potential differences caused by variations in capital

structures, tax positions, depreciation, amortization, and certain other items that we believe are not representative of our

core business. We use the following non-GAAP measures for business planning purposes, in measuring our performance

relative to that of our competitors, to help investors to understand the nature of our growth, and to enable investors to

evaluate the run-rate performance of the Company. Non-GAAP financial measures should be viewed as supplementing,

and not as an alternative or substitute for, the consolidated financial statements prepared and presented in accordance with

GAAP. The footnotes to the reconciliation tables below should be read in conjunction with the unaudited consolidated

quarterly financial statements. Industry peers may provide similar supplemental information but may not define similarly

named metrics in the same way we do and may not make identical adjustments.

Organic Revenue Growth Rate

Organic revenue growth rate is defined as the percentage change in Net commissions and fees, as compared to the same

period for the prior year, adjusted to eliminate revenue attributable to acquisitions for the first twelve months of ownership,

revenue attributable to sold businesses for the subsequent twelve months after the sale, and other items such as contingent

commissions and the impact of changes in foreign exchange rates.

For the avoidance of doubt, prior period references in the tables below represent the same period in the prior year. A

reconciliation of Organic revenue growth rate to Net commissions and fees growth rate, the most directly comparable

GAAP measure, for each of the periods indicated is as follows (in percentages):


	Three Months Ended March 31,
(in thousands, except percentages)	2026	2025
Current period Net commissions and fees revenue	$782,903	$676,128
Less: Current period contingent commissions	(42,373)	(30,463)
Less: Revenue attributable to sold businesses	(13)	(146)
Net commissions and fees revenue excluding contingent commissions	$740,517	$645,519

Prior period Net commissions and fees revenue	$676,128	$537,887
Less: Prior year contingent commissions	(30,463)	(24,503)
Less: Revenue attributable to sold businesses	(657)	(539)
Prior period Net commissions and fees revenue excluding contingent commissions	$645,008	$512,845

Change in Net commissions and fees revenue excluding contingent commissions	$95,509	$132,674
Less: Mergers and acquisitions Net commissions and fees revenue excluding contingent commissions	(15,246)	(67,155)
Impact of change in foreign exchange rates	(3,863)	430
Organic revenue growth (Non-GAAP)	$76,400	$65,949

Net commissions and fees revenue growth rate (GAAP)	15.8 %	25.7 %
Less: Impact of contingent commissions (1)	(1.0)	0.2
Net commissions and fees revenue excluding contingent commissions growth rate (2)	14.8 %	25.9 %
Less: Mergers and acquisitions Net commissions and fees revenue excluding contingent commissions (3)	(2.4)	(13.1)
Impact of change in foreign exchange rates (4)	(0.6)	0.1
Organic Revenue Growth Rate (Non-GAAP)	11.8 %	12.9 %

(1)Calculated by subtracting Net commissions and fees revenue growth rate from net commissions and fees revenue

excluding contingent commissions growth rate and revenue from sold businesses.

(2)Calculated by dividing the change in Total net commissions & fees revenue excluding contingent commissions by prior

year net commissions and fees excluding contingent commissions and revenue from sold businesses.

(3)Calculated by taking the mergers and acquisitions net commissions and fees revenue excluding contingent

commissions, representing the first 12 months of net commissions and fees revenue generated from acquisitions,

divided by prior period net commissions and fees revenue excluding contingent commissions and revenue from sold

businesses.

(4)Calculated by taking the change in foreign exchange rates divided by prior period net commissions and fees revenue

excluding contingent commissions and revenue from sold businesses.

Adjusted Compensation and Benefits Expense and Adjusted Compensation and Benefits Expense Ratio

We define Adjusted compensation and benefits expense as Compensation and benefits expense adjusted to reflect items

such as (i) equity-based compensation, (ii) acquisition and restructuring related compensation expense, and (iii) other

exceptional or non-recurring items, as applicable. The most comparable GAAP financial metric is Compensation and

benefits expense. Adjusted compensation and benefits expense ratio is defined as Adjusted compensation and benefits

expense as a percentage of Total revenue. The most comparable GAAP financial metric is Compensation and benefits

expense ratio.

A reconciliation of Adjusted compensation and benefits expense and Adjusted compensation and benefits expense ratio to

Compensation and benefits expense and Compensation and benefits expense ratio, the most directly comparable GAAP

measures, for each of the periods indicated, is as follows:


	Three Months Ended March 31,
(in thousands, except percentages)	2026	2025
Total revenue	$795,229	$690,166
Compensation and benefits expense	$495,176	$430,289
Acquisition-related expense	(3,411)	(3,479)
Acquisition related long-term incentive compensation	(9,287)	(8,331)
Restructuring and related expense	(2,465)	—
Amortization and expense related to discontinued prepaid incentives	(830)	(1,178)
Equity-based compensation	(14,309)	(14,569)
Initial public offering related expense	(3,042)	(5,304)
Adjusted compensation and benefits expense (1)	$461,832	$397,428
Compensation and benefits expense ratio	62.3 %	62.3 %
Adjusted compensation and benefits expense ratio	58.1 %	57.6 %

(1)Adjustments to Compensation and benefits expense are described in the definition of Adjusted EBITDAC to Net

income (loss) in “Adjusted EBITDAC and Adjusted EBITDAC Margin.”

Adjusted General and Administrative Expense and Adjusted General and Administrative Expense Ratio

We define Adjusted general and administrative expense as General and administrative expense adjusted to reflect items

such as (i) acquisition and restructuring general and administrative related expense and (ii) other exceptional or non-

recurring items, as applicable. The most comparable GAAP financial metric is General and administrative expense.

Adjusted general and administrative expense ratio is defined as Adjusted general and administrative expense as a

percentage of Total revenue. The most comparable GAAP financial metric is General and administrative expense ratio.

A reconciliation of Adjusted general and administrative expense and Adjusted general and administrative expense ratio to

General and administrative expense and General and administrative expense ratio, the most directly comparable GAAP

measures, for each of the periods indicated is as follows:


	Three Months Ended March 31,
(in thousands, except percentages)	2026	2025
Total revenue	$795,229	$690,166
General and administrative expense	$108,761	$106,060
Acquisition-related expense	(3,990)	(13,823)
Restructuring and related expense	(3,406)	—
Adjusted general and administrative expense (1)	$101,365	$92,237
General and administrative expense ratio	13.7 %	15.4 %
Adjusted general and administrative expense ratio	12.7 %	13.4 %

(1)Adjustments to General and administrative expense are described in the definition of Adjusted EBITDAC to Net

income (loss) in “Adjusted EBITDAC and Adjusted EBITDAC Margin.”

Adjusted EBITDAC and Adjusted EBITDAC Margin

We define Adjusted EBITDAC as Net income (loss) before Interest expense, net, Income tax expense, Depreciation,

Amortization, and Change in contingent consideration, adjusted to reflect items such as (i) equity-based compensation, (ii)

acquisition and restructuring related expenses, and (iii) other exceptional or non-recurring items, as applicable.

Acquisition-related expense includes one-time diligence, transaction-related, and integration costs. Acquisition related

long-term incentive compensation arises from long-term incentive plans associated with acquisitions. These plans require

service requirements, and in some cases performance targets, to be met in order to be earned. Restructuring and related

expense consists of compensation and benefits, contractors, professional services, and license fees related to the Empower

Program, which was initiated at the beginning of 2026. The compensation and benefits expense includes severance as well

as employment costs related to services rendered between the notification and termination dates and other termination

payments. Amortization and expense is composed of charges related to discontinued prepaid incentive programs. For the

three months ended March 31, 2026, Other non-operating income consisted of $0.5 million of forfeitures of vested equity

awards, $0.1 million of seller reimbursement of acquisition-related retention incentives, and $0.1 million of sublease

income. For the three months ended March 31, 2025, Other non-operating income consisted of $0.3 million of seller

reimbursement of acquisition-related retention incentives and $0.1 million of sublease income. Equity-based compensation

reflects non-cash equity-based expense. IPO related expenses consist of compensation-related expense primarily related to

the expense for new awards issued at IPO as well as expense related to the revaluation of existing equity awards at IPO.

Total revenue less Adjusted compensation and benefits expense and Adjusted general and administrative expense is

equivalent to Adjusted EBITDAC. For a breakout of compensation and general and administrative costs for each addback,

refer to the Adjusted compensation and benefits expense and Adjusted general and administrative expense tables above.

The most directly comparable GAAP financial metric to Adjusted EBITDAC is Net income (loss). Adjusted EBITDAC

margin is defined as Adjusted EBITDAC as a percentage of Total revenue. The most comparable GAAP financial metric is

Net income (loss) margin.

A reconciliation of Adjusted EBITDAC and Adjusted EBITDAC margin to Net income (loss) and Net income (loss)

margin, the most directly comparable GAAP measures, for each of the periods indicated is as follows:


	Three Months Ended March 31,
(in thousands, except percentages)	2026	2025
Total revenue	$795,229	$690,166
Net income (loss)	$40,597	$(4,389)
Interest expense, net	53,733	54,508
Income tax expense	6,508	55,430
Depreciation	4,062	2,639
Amortization	65,340	64,985
Change in contingent consideration (1)	27,294	(14,042)
EBITDAC	$197,534	$159,131
Acquisition-related expense	7,402	17,302
Acquisition related long-term incentive compensation	9,287	8,331
Restructuring and related expense	5,871	—
Amortization and expense related to discontinued prepaid incentives	830	1,178
Other non-operating income	(711)	(377)
Equity-based compensation	14,309	14,569
IPO related expenses	3,042	5,304
Income from equity method investments	(5,531)	(4,937)
Adjusted EBITDAC	$232,033	$200,501
Net income (loss) margin	5.1 %	(0.6 %)
Adjusted EBITDAC margin	29.2 %	29.1 %

(1)For the three months ended March 31, 2025, Change in contingent consideration included a $12.4 million decrease in

valuation of the US Assure contingent consideration as a result of increased loss ratios impacting projected profit

commissions.

Adjusted Net Income and Adjusted Net Income Margin

We define Adjusted net income as tax-effected earnings before amortization and certain items of income and expense,

gains and losses, equity-based compensation, acquisition related long-term incentive compensation, acquisition-related

expenses, costs associated with the IPO, and certain exceptional or non-recurring items. The most comparable GAAP

financial metric is Net income (loss). Adjusted net income margin is calculated as Adjusted net income as a percentage of

Total revenue. The most comparable GAAP financial metric is Net income (loss) margin.

Following the IPO, the Company is subject to United States federal income taxes, in addition to state, local, and foreign

taxes, with respect to our allocable share of any net taxable income of the LLC. For comparability purposes, this

calculation incorporates the impact of federal and state statutory tax rates on 100% of our adjusted pre-tax income as if the

Company owned 100% of the LLC.

A reconciliation of Adjusted net income and Adjusted net income margin to Net income (loss) and Net income (loss)

margin, the most directly comparable GAAP measures, for each of the periods indicated is as follows:


	Three Months Ended March 31,
(in thousands, except percentages)	2026	2025
Total revenue	$795,229	$690,166
Net income (loss)	$40,597	$(4,389)
Income tax expense	6,508	55,430
Amortization	65,340	64,985
Amortization of deferred debt issuance costs (1)	2,422	2,374
Change in contingent consideration	27,294	(14,042)
Acquisition-related expense	7,402	17,302
Acquisition related long-term incentive compensation	9,287	8,331
Restructuring and related expense	5,871	—
Amortization and expense related to discontinued prepaid incentives	830	1,178
Other non-operating income	(711)	(377)
Equity-based compensation	14,309	14,569
IPO related expenses	3,042	5,304
Income from equity method investments	(5,531)	(4,937)
Adjusted income before income taxes (2)	$176,660	$145,728
Adjusted income tax expense (3)	(45,932)	(37,889)
Adjusted net income	$130,728	$107,839
Net income (loss) margin	5.1 %	(0.6 %)
Adjusted net income margin	16.4 %	15.6 %

(1)Interest expense, net includes amortization of deferred debt issuance costs.

(2)Adjustments to Net income (loss) are described in the definition of Adjusted EBITDAC to Net income (loss) in

“Adjusted EBITDAC and Adjusted EBITDAC Margin.”

(3)The Company is subject to United States federal income taxes, in addition to state, local, and foreign taxes, with respect

to our allocable share of any net taxable income of the LLC. For the three months ended March 31, 2026 and 2025, this

calculation of adjusted income tax expense is based on a federal statutory rate of 21% and a combined state income tax

rate net of federal benefits of 5.00% on 100% of our adjusted income before income taxes as if the Company owned

100% of the LLC.

Adjusted Diluted Earnings Per Share

We define Adjusted diluted earnings per share as Adjusted net income divided by diluted shares outstanding after adjusting

for the effect if 100% of the outstanding LLC Common Units (together with the shares of Class B common stock), vested

Class C Incentive Units, vested but unexercised Options, and unvested equity awards were exchanged into shares of Class

A common stock as if 100% of unvested equity awards were vested. The most directly comparable GAAP financial metric

is Diluted earnings per share.

A reconciliation of Adjusted diluted earnings per share to Diluted earnings per share, the most directly comparable GAAP

measure, for each of the periods indicated is as follows:


	Three Months Ended March 31,
	2026	2025
Earnings (loss) per share of Class A common stock – diluted	$0.13	$(0.22)
Less: Net income attributed to dilutive shares (1)	—	—
Plus: Impact of all LLC Common Units exchanged for Class A shares (2)	0.02	0.20
Plus: Adjustments to Adjusted net income (3)	0.33	0.43
Plus: Dilutive impact of unvested equity awards (4)	(0.01)	(0.02)
Adjusted diluted earnings per share	$0.47	$0.39

(Share count in ’000)
Weighted-average shares of Class A common stock outstanding – diluted	137,341	125,420
Plus: Impact of all LLC Common Units exchanged for Class A shares (2)	134,476	136,064
Plus: Dilutive impact of unvested equity awards (4)	6,824	17,783
Adjusted diluted earnings per share diluted share count	278,641	279,267

(1)Adjustment removes the impact of Net income attributed to dilutive awards to arrive at Net income (loss) attributable to

Ryan Specialty Holdings, Inc. For the three months ended March 31, 2026, this removes $0.2 million of Net income on

137.3 million Weighted-average shares of Class A common stock outstanding - diluted, respectively. See “Note 10,

Earnings (Loss) Per Share” of the unaudited quarterly consolidated financial statements.

(2)For comparability purposes, this calculation incorporates the Net income that would be distributable if all LLC

Common Units (together with shares of Class B common stock) were exchanged for shares of Class A common stock.

For the three months ended March 31, 2026 and 2025, this includes $23.0 million and $23.3 million of Net income,

respectively, on 271.8 million and 261.5 million Weighted-average shares of Class A common stock outstanding -

diluted, respectively. See “Note 10, Earnings (Loss) Per Share” of the unaudited quarterly consolidated financial

statements.

(3)Adjustments to Adjusted net income are described in the footnotes of the reconciliation of Adjusted net income to Net

income (loss) in “Adjusted Net Income and Adjusted Net Income Margin” on 271.8 million and 261.5 million

Weighted-average shares of Class A common stock outstanding - diluted for the three months ended March 31, 2026

and 2025, respectively.

(4)For comparability purposes and to be consistent with the treatment of the adjustments to arrive at Adjusted net income,

the dilutive effect of unvested equity awards as well as outstanding vested options and vested Class C Incentive Units is

calculated using the treasury stock method as if the weighted-average unrecognized cost associated with the awards was

$0 over the period, less any unvested equity awards determined to be dilutive within the Diluted EPS calculation

disclosed in “Note 10, Earnings (Loss) Per Share” of the unaudited quarterly consolidated financial statements. For the

three months ended March 31, 2026 and 2025, 6.8 million and 17.8 million shares were added to the calculation,

respectively.

Liquidity and Capital Resources

Liquidity describes the ability of a company to generate sufficient cash flows to meet the cash requirements of its business

operations. We believe that the balance sheet and strong cash flow profile of our business provides adequate liquidity. The

primary sources of liquidity are Cash and cash equivalents on the Consolidated Balance Sheets, cash flows provided by

operations, and debt capacity available under our Revolving Credit Facility, Term Loan, and Senior Secured Notes. The

primary uses of liquidity are operating expenses, seasonal working capital needs, business combinations, capital

expenditures, obligations under the TRA, taxes, distributions to LLC Unitholders, share repurchases, and dividends to

Class A common stockholders. We believe that Cash and cash equivalents, cash flows from operations, and amounts

available under our Revolving Credit Facility will be sufficient to meet liquidity needs, including principal and interest

payments on debt obligations, capital expenditures, and anticipated working capital requirements, for the next 12 months

and beyond. Our future capital requirements will depend on many factors including continuance of historical working

capital levels and capital expenditure needs, investment in de novo offerings, and the flow of deals in our merger and

acquisition program.

On February 12, 2026, our Board declared a regular quarterly dividend of $0.13 per share on our outstanding Class A

common stock. $0.07 of the regular quarterly dividend was funded by current and prior tax distributions from the LLC that

are in excess of both the corporate income taxes payable by the Company as well as the Company’s obligations pursuant to

the Tax Receivable Agreement. The remaining $0.06 of the regular quarterly dividend was funded by free cash flow from

the LLC and paid to all holders of the Class A common stock and LLC Common Units.

On February 12, 2026, our Board approved a share repurchase program that authorizes the Company to repurchase up to

$300 million of its outstanding Class A common stock. Share repurchases may be made from time to time on the open

market, in privately negotiated transactions, using Rule 10b5-1 trading plans, as accelerated share repurchases, or in any

other manner that complies with the applicable securities law. The timing of repurchases and the number of shares

repurchased under the program will depend upon a variety of factors including the Company’s stock price, trading volume,

working capital or other liquidity requirements, and market conditions. The Company is not obligated to repurchase any

shares under the program and the program may be suspended or discontinued at any time without notice.

We may be required to seek additional equity or debt financing. In the event that additional financing is required from

outside sources, we may not be able to raise it on terms acceptable to us or at all. If we are unable to raise additional capital

or generate cash flows necessary to expand our operations, this could reduce our ability to compete successfully and harm

the results of our operations.

Cash and cash equivalents on the Consolidated Balance Sheets include funds available for general corporate purposes.

Fiduciary cash and receivables cannot be used for general corporate purposes. Insurance premiums, claims funds, and

surplus lines taxes are held in a fiduciary capacity and the obligation to remit these funds are recorded as Fiduciary

liabilities on the Consolidated Balance Sheets. We recognize fiduciary amounts due to others as Fiduciary liabilities and

fiduciary amounts collectible and held on behalf of others, including insurance carriers, other insurance intermediaries,

surplus lines taxing authorities, clients, and insurance policy holders, as Fiduciary cash and receivables on the Consolidated

Balance Sheets.

In our capacity as an insurance broker or agent, we collect premiums from insureds and, after deducting our commission,

remit the premiums to the respective insurance markets and carriers. We also collect claims prefunding or refunds from

carriers on behalf of insureds, which are then returned to the insureds, and surplus lines taxes, which are then remitted to

surplus lines taxing authorities. Insurance premiums, claims funds, and surplus lines taxes are held in a fiduciary capacity.

The levels of Fiduciary cash and receivables and Fiduciary liabilities can fluctuate significantly depending on when we

collect the premiums, claims prefunding, and refunds, make payments to markets, carriers, surplus lines taxing authorities,

and insureds, and collect funds from clients and make payments on their behalf, and upon the impact of foreign currency

movements. Fiduciary cash, because of its nature, is held in very liquid securities with a focus on preservation of principal.

To minimize counterparty investment risk, we maintain cash holdings pursuant to a fiduciary holdings policy which

contemplates all relevant rules established by states with regard to fiduciary cash and is approved by our Board of

Directors. The policy requires broad diversification of holdings across a variety of counterparties utilizing limits set by our

Board of Directors, primarily based on credit rating and type of investment. Fiduciary cash and receivables included cash

of $1,330.2 million and $1,108.3 million as of March 31, 2026 and 2025, respectively, and fiduciary receivables of

$3,434.1 million and $2,780.4 million as of March 31, 2026 and 2025, respectively. While we may earn interest income on

fiduciary cash held in cash and investments, the fiduciary cash may not be used for general corporate purposes. Of the

$154.7 million of Cash and cash equivalents on the Consolidated Balance Sheet as of March 31, 2026, $104.5 million was

held in fiduciary accounts representing collected revenue and was available to be transferred to operating accounts and

used for general corporate purposes.

Credit Facilities

We expect to have sufficient financial resources to meet our business requirements for the next 12 months. Although cash

from operations is expected to be sufficient to service our activities, including servicing our debt and contractual

obligations, and financing capital expenditures, we have the ability to borrow under our Revolving Credit Facility to

accommodate any timing differences in cash flows. Additionally, under current market conditions, we believe that we

could access capital markets to obtain debt financing for longer-term funding, if needed.

On February 3, 2022, the LLC issued $400.0 million of 8-year Senior Secured Notes. The notes have a 4.375% interest rate

and will mature on February 1, 2030.

On January 19, 2024, we entered into the Fifth Amendment to the Credit Agreement, which reduced the applicable interest

rate of the Term Loan from Adjusted Term SOFR + 3.00% to Adjusted Term SOFR + 2.75% and no longer contains a

credit spread adjustment. All other material provisions remain unchanged.

On July 30, 2024, the Company entered into the Sixth Amendment to the Credit Agreement, which provided for an

increase in borrowing capacity under the Revolving Credit Facility from $600.0 million to $1,400.0 million. The

amendment also extended the maturity date of the Revolving Credit Facility to July 30, 2029, and reduced the applicable

interest rate from Adjusted Term SOFR plus a margin of 2.50% to 3.00% to Adjusted Term SOFR plus a margin of 2.00%

to 2.50%, based on the first lien net leverage ratio defined in the Credit Agreement.

On September 13, 2024, the Company entered into the Seventh Amendment to the Credit Agreement, which refinanced the

existing Term Loan in the aggregate principal amount of $1,588.1 million outstanding as of June 30, 2024, and increased

the size of the Term Loan by $111.9 million to $1,700.0 million as of September 30, 2024. In addition to increasing the

size of the Term Loan, the Seventh Amendment reduced the applicable interest rate of the Term Loan from Adjusted Term

SOFR plus a margin of 2.75% to Adjusted Term SOFR plus a margin of 2.25% and lowered the 75 basis point floor on

Adjusted Term SOFR to a 0 basis point floor. In August 2025, Moody's Ratings upgraded the Company's credit rating from

B1 to Ba3. As a result, the applicable interest rate on the Company's Term Loan decreased from Adjusted Term SOFR +

2.25% to Adjusted Term SOFR + 2.00%.

On September 19, 2024, the LLC issued $600.0 million of 8-year Senior Secured Notes. On December 9, 2024, the LLC

issued an additional $600.0 million of its 2032 Senior Secured Notes as “additional notes” under a supplement to the

indenture dated as of September 2024. All of the 2032 Senior Secured Notes carry a 5.875% interest rate and will mature

on August 1, 2032.

As of March 31, 2026, the interest rate on the Term Loan was 2.00% plus Adjusted Term SOFR.

As of March 31, 2026, the Company was in compliance with all of the covenants under the Credit Agreement and there

were no events of default for the three months ended March 31, 2026.

Tax Receivable Agreement

The Company is party to a TRA with current and certain former LLC Unitholders. The TRA provides for the payment by

the Company, to current and certain former LLC Unitholders, of 85% of the net cash savings, if any, in U.S. federal, state,

and local income taxes that the Company realizes (or is deemed to realize in certain circumstances) as a result of (i) certain

increases in the tax basis of the assets of the LLC resulting from purchases or exchanges of LLC Common Units

(“Exchange Tax Attributes”), (ii) certain tax attributes of the LLC that existed prior to the IPO (“Pre-IPO M&A Tax

Attributes”), (iii) certain favorable “remedial” partnership tax allocations to which the Company becomes entitled to (if

any), and (iv) certain other tax benefits related to the Company entering into the TRA, including tax benefits attributable to

payments that the Company makes under the TRA (“TRA Payment Tax Attributes”). The Company recognizes a liability

on the Consolidated Balance Sheets based on the undiscounted estimated future payments under the TRA.

Due to the uncertainty of various factors, we cannot precisely quantify the likely tax benefits we will realize as a result of

the LLC Common Unit exchanges and the resulting amounts we are likely to pay out to current and certain former LLC

Unitholders pursuant to the TRA; however, we estimate that such tax benefits and the related TRA payments may be

substantial. As set forth in the table below, and assuming no changes in the relevant tax law and that we earn sufficient

taxable income to realize all cash tax savings that are subject to the TRA, we expect future payments under the TRA as a

result of transactions as of March 31, 2026, will be $460.8 million in aggregate. Future payments in respect to subsequent

exchanges would be in addition to these amounts and are expected to be substantial. The foregoing amounts are merely

estimates and the actual payments could differ materially. In the highly unlikely event of an early termination of the TRA

(e.g., a default by the Company or a Change of Control) the Company is required to pay to each holder of the TRA an early

termination payment equal to the discounted present value of all unpaid TRA payments. The Company has not made, and

is not likely to make, an election for an early termination. We expect to fund future TRA payments with tax distributions

from the LLC that come from cash on hand and cash generated from operations.


(in thousands)	Exchange Tax Attributes	Pre-IPO M&A Tax Attributes	TRA Payment Tax Attributes	TRA Liabilities
Balance at December 31, 2025	$271,979	$77,349	$109,669	$458,997
Exchange of LLC Common Units	1,146	116	585	1,847
Accrued interest	—	—	—	—
Balance at March 31, 2026	$273,125	$77,465	$110,254	$460,844

Total expected estimated tax savings from each of the tax attributes associated with the TRA as of March 31, 2026, were

$542.2 million consisting of (i) Exchange Tax Attributes of $321.3 million, (ii) Pre-IPO M&A Tax Attributes of $91.1

million, and (iii) TRA Payment Tax Attributes of $129.7 million. The Company will retain the benefit of 15% of these cash

savings.

Comparison of Cash Flows for the Three Months Ended March 31, 2026 and 2025

Cash and cash equivalents decreased $48.9 million from $203.5 million at March 31, 2025, to $154.7 million at March 31,

2026. A summary of the Company’s cash flows provided by and used for continuing operations from operating, investing,

and financing activities is as follows:

Cash Flows From Operating Activities

Cash flows used in operating activities for the three months ended March 31, 2026, were $167.4 million, an increase of

$24.6 million compared to the three months ended March 31, 2025. The primary drivers behind the increase in cash flows

used in operating activities were an increase in Commissions and fees receivable - net of $60.7 million, a decrease in

Deferred income tax expense from common control reorganizations of $48.1 million related to the Velocity acquisition in

the first quarter of 2025, and an increase of $9.7 million in Accrued interest liability. These uses of operating cash flow

were offset by an increase in Other current and non-current assets and liabilities of $48.6 million and an increase of $45.0

million in Net income (loss).

Cash Flows From Investing Activities

Cash flows used for investing activities during the three months ended March 31, 2026, were $13.3 million, a decrease of

$559.8 million compared to the $573.0 million of cash flows used for investing activities during the three months ended

March 31, 2025. The main driver of the cash flows used for investing activities during the three months ended March 31,

2026, was $13.3 million of Capital expenditures, compared to $555.6 million for Business combinations - net of cash

acquired and cash held in a fiduciary capacity and $16.7 million of Capital expenditures for the three months ended

March 31, 2025.

Cash Flows From Financing Activities

Cash flows provided by financing activities during the three months ended March 31, 2026, were $86.3 million, a decrease

of $250.6 million compared to cash flows provided by financing activities of $336.8 million during the three months ended

March 31, 2025. The main driver of cash flows provided by financing activities during the three months ended March 31,

2026, were Borrowings on Revolving Credit Facility (net of repayments) of $245.6 million. The increase was offset by a

Net change in fiduciary liabilities of $92.2 million, Repurchases of Class A common stock of $40.0 million, Class A

common stock dividends and Dividend Equivalents paid of $16.8 million, Distributions and Declared Distributions paid to

non-controlling LLC Unitholders of $8.1 million, and $4.3 million of Repayment of term debt. The main drivers of cash

flows provided by financing activities during the three months ended March 31, 2025, were Borrowings on Revolving

Credit Facility (net of repayments) of $424.1 million offset by a Net change in fiduciary liabilities of $36.1 million,

Payment of contingent consideration of $25.2 million, Class A common stock dividends and Dividend Equivalents paid of

$15.1 million, Distributions and Declared Distributions paid to non-controlling LLC Unitholders of $6.8 million,

Repayment of term debt of $4.3 million, and Debt issuance costs paid of $1.5 million.

Contractual Obligations and Commitments

Our principal commitments consist of contractual obligations in connection with investing and operating activities. These

obligations are described within “Note 7, Debt” in the notes to our unaudited consolidated financial statements, where we

provide further description on provisions that create, increase, or accelerate obligations, or other pertinent data to the extent

necessary for an understanding of the timing and amount of the specified contractual obligations.

The Company recognized a liability for employee deferrals, inclusive of changes in the value of deferred amounts held, of

$8.6 million and $57.9 million in Current accrued compensation and Non-current accrued compensation, respectively, on

the Consolidated Balance Sheets as of March 31, 2026, and $5.5 million and $40.5 million in Current accrued

compensation and Non-current accrued compensation, respectively, on the Consolidated Balance Sheets as of March 31,

2025. The timing of when employees elect to make withdrawals from the deferred compensation plan is uncertain.

However, employees are not allowed to make a withdrawal for three years from the deferral date and must withdraw all

deferred compensation balances within ten years of the deferral date.

Within Current accrued compensation and Non-current accrued compensation we have various long-term incentive

compensation agreements accrued for. These agreements are typically associated with an acquisition. Below we have

outlined the liabilities accrued as of March 31, 2026, the projected future expense, and the projected timing of future cash

outflows associated with these arrangements.


Long-term Incentive Compensation Agreements
(in thousands)	March 31, 2026
Current accrued compensation	$8,054
Non-current accrued compensation	23,252
Total liability	$31,306
Projected future expense	39,580
Total projected future cash outflows	$70,886


Projected Future Cash Outflows
(in thousands)
2026	$10,794
2027	8,983
2028	32,616
2029	10,884
Thereafter	$7,609

Within “Note 3, Mergers and Acquisitions” in the notes to our unaudited consolidated financial statements we discuss

various contingent consideration arrangements and their impact. Below we have outlined the liabilities accrued as of

March 31, 2026, the projected future expense, and the projected timing of future cash outflows associated with these

contingent consideration agreements.


Contingent Consideration
(in thousands)	March 31, 2026
Current accounts payable and accrued liabilities	$86,625
Other non-current liabilities	91,213
Total liability	$177,838
Projected future expense	8,477
Total projected future cash outflows	$186,315


Projected Future Cash Outflows
(in thousands)
2026	$87,235
2027	91,091
2028	4,926
2029	2,896
Thereafter	$167

Critical Accounting Policies and Estimates

The methods, assumptions, and estimates that we use in applying the accounting policies may require us to apply

judgments regarding matters that are inherently uncertain. We consider an accounting policy to be a critical estimate if (i)

the Company must make assumptions that were uncertain when the judgment was made and (ii) changes in the estimate

assumptions, or selection of a different estimate methodology, could have a significant impact on our financial position and

the results that we will report in the consolidated financial statements. While we believe that the estimates, assumptions,

and judgments are reasonable, they are based on information available when the estimate was made. The accounting

policies that we believe reflect our more significant estimates, judgments, and assumptions that are most critical to

understanding and evaluating our reported financial results are: revenue recognition, business combinations, goodwill and

intangibles, income taxes, and tax receivable agreement liabilities.

Our critical accounting policies are described under the heading “Management’s Discussion and Analysis of Financial

Condition and Results of Operations—Critical Accounting Policies” in the Annual Report on Form 10-K for the year

ended December 31, 2025, filed with the SEC on February 13, 2026. Additionally, the changes, if any, to our critical

accounting policies and estimates disclosed in the Annual Report on Form 10-K for the year ended December 31, 2025, are

included in “Note 1, Basis of Presentation,” to our unaudited consolidated financial statements.

Recent Accounting Pronouncements

For a description of recently adopted accounting pronouncements and recently issued accounting standards not yet adopted

(if any), see “Note 1, Basis of Presentation” in the notes to our unaudited consolidated financial statements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

We are exposed to various market risks in our day-to-day operations. Market risk is the potential loss arising from adverse

changes in market rates and prices, such as interest and foreign currency exchange rates.

Foreign Currency Risk

For the three months ended March 31, 2026, approximately 7% of revenues were generated from activities in the United

Kingdom, Europe, Canada, and Singapore. We are exposed to currency risk from the potential changes between the

exchange rates of the US Dollar, British Pound, Euro, Swedish Krona, Canadian Dollar, Indian Rupee, Singapore Dollar,

and other currencies. The exposure to foreign currency risk from the potential changes between the exchange of USD and

other currencies is immaterial.

Interest Rate Risk and Credit Risk

Certain of the Company’s revenues, expenses, assets, and liabilities are exposed to the impact of interest rate changes.

Interest rate risk and credit risk to counterparties generated from the Company’s Cash and cash equivalents, and Cash and

cash equivalents held in a fiduciary capacity, will fluctuate with the general level of interest rates.

As of March 31, 2026, we had $1,678.8 million of outstanding principal on our Term Loan borrowings, which bears

interest on a floating rate, subject to a 0.0% floor. We are subject to Adjusted Term SOFR interest rate changes and

exposure in excess of the floor. The fair value of the Term Loan approximates the carrying amount as of March 31, 2026

and December 31, 2025, as determined based upon information available.

Based on the below balances as of March 31, 2026, the impact of a hypothetical 100 basis point (BPS) increase or decrease

in quarter-end prevailing short-term interest rates for one year would be:


(in thousands)	Balance at March 31, 2026	100 BPS Increase	100 BPS Decrease
Cash and cash equivalents	$154,650	$(1,547)	$1,547
Term Loan principal outstanding (1)	1,678,800	16,788	(16,788)
Net exposure to Interest expense, net		$15,242	$(15,242)

Cash and cash equivalents held in a fiduciary capacity	$1,330,238	$13,302	$(13,302)
Net exposure to Fiduciary investment income		$13,302	$(13,302)

Impact to Net income (loss)		$(1,939)	$1,939

(1)To the extent SOFR falls below 0.0%, the impact of the change in interest rates is zero.

In addition to interest rate risk, our cash investments and fiduciary cash holdings are subject to potential loss of value due

to counterparty credit risk. To minimize this risk, the Company and its subsidiaries hold funds pursuant to an investment

policy approved by our Board. The policy mandates the preservation of principal and liquidity and requires broad

diversification with counter-party limits assigned based primarily on credit rating and type of investment. The Company

carefully monitors its cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity, and plans to

further restrict the portfolio as appropriate with respect to market conditions. The majority of Cash and cash equivalents

and Cash and cash equivalents held in a fiduciary capacity are held in demand deposit accounts and short-term investments,

consisting principally of AAA-rated money market funds and treasury bills, having original maturities of 90 days or less.

Other financial instruments consist of Cash and cash equivalents, Commissions and fees receivable – net, Other current

assets, and Accounts payable and accrued liabilities. The carrying amounts of Cash and cash equivalents, Commissions and

fees receivable – net, and Accounts payable and accrued liabilities approximate fair value because of the short-term nature

of the instruments.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain “disclosure controls and procedures,” as defined in Rule 13a–15(e) and Rule 15d–15(e) under the Securities

Exchange Act of 1934, as amended (the “Exchange Act”), that are designed to provide reasonable assurance that

information required to be disclosed by the Company in the reports that we file or submit under the Exchange Act is

recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. Disclosure

controls and procedures include, without limitation, controls and procedures designed to provide reasonable assurance that

information required to be disclosed by the Company in the reports that we file or submit under the Exchange Act is

accumulated and communicated to our management, including our principal executive and principal financial officers, as

appropriate, to allow timely decisions regarding required disclosure. Based on such evaluation, our principal executive

officer and principal financial officer have concluded that as of March 31, 2026, our disclosure controls and procedures

were effective at the reasonable assurance level.

Changes in Internal Control

There have been no changes in internal control over financial reporting during the quarter ended March 31, 2026, that have

materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations of Internal Control Over Financial Reporting

Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives as

specified above. Management does not expect, however, that our disclosure controls and procedures will prevent or detect

all errors and fraud. Any control system, no matter how well designed and operated, is based upon certain assumptions and

can provide only reasonable, not absolute, assurance that its objectives will be met. Further, no evaluation of controls can

provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of

fraud, if any, within the Company have been detected.

PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we may be involved in various legal proceedings and subject to claims that arise in the ordinary course

of business. Although the results of litigation and claims are inherently unpredictable and uncertain, we are not presently a

party to any litigation the outcome of which, we believe, if determined adversely to us, would individually or taken

together have a material adverse effect on our business, operating results, cash flows or financial condition.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors disclosed under the heading “Risk Factors” in our annual report on

Form 10-K for the year ended December 31, 2025, which was filed with the SEC on February 13, 2026.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Unregistered Sales of Equity Securities.

None

Purchases of Equity Securities by the Issuer.

The following table summarizes purchases of shares of our Class A Common Stock during the three months ended March

31, 2026, by the Company.


Period	Total Number of Shares Purchased	Average Price Paid per Share 1		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs 2
1/1/26 - 1/31/26	—	$—		—	$—
2/1/26 - 2/28/26	982,073	40.7301		982,073	260,000,036
3/1/26 - 3/31/26	—	—		—	260,000,036
TOTAL	982,073	$40.7301	$40.7301	982,073

1 Does not include commissions paid to repurchase shares.

2 On February 10, 2026, the Board of Directors approved an open-ended $300 million share repurchase program, which

was publicly announced on February 12, 2026.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

During the quarter ended March 31, 2026, Mark S. Katz, Executive Vice President, General Counsel and Corporate

Secretary, adopted on March 05, 2026, a “Rule 10b5-1 trading arrangement” (as such term is defined in Item 408(a) of

Regulation S-K) intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act (a

“10b5-1 Plan”) to sell (i) up to 5,500 shares of the Company’s Class A common stock that are issuable upon conversion of

LLC Common Units and (ii) a number of shares of Class A common stock issuable upon conversion of up to 70,000 Class

C Incentive Units of New LLC (the “Class C Units”), between the first potential sale date of June 4, 2026, and the

expiration of his 10b5-1 Plan on June 1, 2027. The Class C Units are profits interests with a participation threshold, as of

March 31, 2026, of $23.08. Pursuant to the terms of the award agreement for the Class C Units, the participation threshold

is adjusted downward for distributions that the LLC makes to the Company. When the value of the Class A common stock

exceeds the participation threshold of the Class C Units, the vested profits interests may be exchanged for LLC Common

Units of equal value where the value of each Class C Unit is equal to the difference between the 20-day volume weighted

average price of the Class A common stock immediately preceding the date of exchange and the participation threshold. On

exchange, the LLC Common Units are immediately redeemed on a one-for-one basis for Class A common stock of the


PART I. FINANCIAL INFORMATION		1

Item 1.	Financial Statements	1

	Consolidated Statements of Income (Loss) (Unaudited)	1

	Consolidated Statements of Comprehensive Income (Loss) (Unaudited)	2

	Consolidated Balance Sheets (Unaudited)	3

	Consolidated Statements of Cash Flows (Unaudited)	4

	Consolidated Statements of Stockholders’ Equity (Unaudited)	5

	Notes to the Consolidated Financial Statements (Unaudited)	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28

Item 3.	Quantitative and Qualitative Disclosure About Market Risk	47

Item 4.	Controls and Procedures	48

PART II. OTHER INFORMATION		48

Item 1.	Legal Proceedings	49

Item 1A.	Risk Factors	49

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	49

Item 3.	Defaults Upon Senior Securities	49

Item 4.	Mine Safety Disclosures	49

Item 5.	Other Information	49

Item 6.	Exhibits	51


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐


Exhibit Number		Description

3.1		Amended and Restated Certificate of Incorporation of Ryan Specialty Holdings, Inc., dated May 30, 2025 (incorporated by reference to Exhibit 3.1 to the Registrant’s Form 8-K filed on June 4, 2025).

3.2		Amended and Restated Bylaws of Ryan Specialty Holdings, Inc., dated May 30, 2025 (incorporated by reference to Exhibit 3.2 to the Registrant’s Form 8-K filed on June 4, 2025).

4.1		Registration Rights Agreement, dated July 26, 2021, by and among Ryan Specialty Holdings, Inc. and the other signatories party thereto (incorporated by reference to Exhibit 4.1 to the Registrant’s Form 8-K filed on July 27, 2021).

4.2		Indenture, dated as of February 3, 2022, by and among Ryan Specialty, LLC, the guarantors party thereto and U.S. Bank National Association as trustee and as notes collateral agent (incorporated by reference to Exhibit 4.1 to the Registrant’s Form 8-K filed on February 7, 2022).

4.3		Form of 4.375% Senior Secured Notes due 2030 (incorporated by reference to Exhibit A to Exhibit 4.1 to the Registrant’s Form 8-K filed on February 7, 2022).

4.4		Indenture, dated as of September 19, 2024, by and among Ryan Specialty, LLC, the guarantors party thereto and U.S. Bank National Association as trustee and as notes collateral agent (incorporated by reference to Exhibit 4.1 to the Registrant’s Form 8-K filed on September 19, 2024).

4.5		Form of 5.875% Senior Secured Notes due 2032 (incorporated by reference to Exhibit A to Exhibit 4.1 to the Registrant’s Form 8-K filed on September 19, 2024).

4.6		First Supplemental Indenture to that certain Indenture, dated as of September 19, 2024, by and among Ryan Specialty, LLC, the guarantors party thereto and U.S. Bank National Association as trustee and as notes collateral agent (incorporated by reference to Exhibit 4.2 to the Registrant’s Form 8-K filed on December 9, 2024)

10.1		Amended and Restated Tax Receivable Agreement, dated as of August 9, 2022, by and among Ryan Specialty Holdings, Inc. and the other signatories party thereto (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed on August 12, 2022).

10.2		Eighth Amended and Restated Limited Liability Company Agreement of Ryan Specialty, LLC, dated as of July 5, 2023, by and among Ryan Specialty, LLC and the other signatories party thereto, (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q filed on November 03, 2023).

10.3		Form of Director and Officer Indemnification Agreement, by and among Ryan Specialty Holdings, Inc. and the other signatories party thereto (incorporated by reference to Exhibit 10.4 to the Registrant’s Registration Statement on Form S-1 filed with the Securities and Exchange Commission on June 21, 2021).

10.4		Indemnification Agreement, by and among Ryan Specialty Holdings, Inc. and Patrick G. Ryan, dated as of July 26, 2021 (incorporated by reference to Exhibit 10.4 to the Registrant’s Form 8-K filed on July 27, 2021).

10.5		Director Nomination Agreement, dated as of July 26, 2021, by and among Ryan Specialty Holdings, Inc. and the other signatories party thereto (incorporated by reference to Exhibit 10.5 to the Registrant’s Form 8- K filed on July 27, 2021).

10.6		Ryan Specialty Holdings, Inc. 2021 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.7 to the Registrant’s Quarterly Report on Form 10-Q filed on August 12, 2022).

10.7		First Amendment to the Ryan Specialty Holdings, Inc. 2021 Omnibus Incentive Plan, (incorporated by reference to Exhibit 10.8 to the Registrant’s Form 10-K filed on March 1, 2023).

10.8		Ryan Specialty Holdings, Inc. Form of Class C Common Incentive Unit Grant Agreement (Staking Unit) (incorporated by reference to Exhibit 10.6 to the Registrant’s Registration Statement on Form S-8 filed on July 23, 2021).

10.9		Ryan Specialty Holdings, Inc. Form of Class C Common Incentive Unit Grant Agreement (Reload Unit) (incorporated by reference to Exhibit 10.7 to the Registrant’s Registration Statement on Form S-8 filed on July 23, 2021).



10.10		Ryan Specialty Holdings, Inc. Form of Common Unit Grant Agreement (incorporated by reference to Exhibit 10.8 to the Registrant’s Registration Statement on Form S-8 filed on July 23, 2021).

10.11		Ryan Specialty Holdings, Inc. Form of Restricted Stock Unit Agreement (Non-Employee Directors) (incorporated by reference to Exhibit 10.15 to the Registrant’s Form 10-K filed on March 16, 2022).

10.12		Ryan Specialty Holdings, Inc. Form of Restricted LLC Unit Agreement (2022), (incorporated by reference to Exhibit 10.11 to the Registrant’s Form 10-K filed on February 28, 2024).

10.13		Ryan Specialty Holdings, Inc. Form of Class C Common Incentive Unit Grant Agreement (PSI Units), (incorporated by reference to Exhibit 10.12 to the Registrant’s Form 10-K filed on February 28, 2024).

10.14		Ryan Specialty Holdings, Inc. Form of Performance-Based Restricted Stock Unit Agreement (DELTA PSUs), (incorporated by reference to Exhibit 10.14 to the Registrant’s Form 10-Q filed on May 30, 2024).

10.15		Ryan Specialty Holdings, Inc. Form of Performance-Based Restricted LLC Unit Agreement (DELTA PLUs), (incorporated by reference to Exhibit 10.15 to the Registrant’s Form 10-K filed on February 28, 2024).

10.17		Seventh Amendment to the Credit Agreement, dated September 13, 2024, including Exhibit A, a conformed copy of the Credit Agreement, dated as of September 1, 2020, among Ryan Specialty, LLC and JPMorgan Chase Bank, N.A., as administrative agent and the other lenders party thereto, as amended March 30, 2021, July 26, 2021, August 13, 2021, April 29, 2022, January 19, 2024, July 30, 2024 and September 13, 2024, (incorporated by reference to Exhibit 10.16 to the Registrant’s Form 10-Q filed on October 31, 2024).

10.18		Third Amended and Restated Limited Liability Company Operating Agreement of New Ryan Specialty, LLC, dated as of July 5, 2023, by and among New Ryan Specialty, LLC and the other signatories party thereto, (incorporated by reference to Exhibit 10.20 to the Registrant’s Quarterly Report on Form 10-Q filed on November 03, 2023).

10.19		First Amendment to the Third Amended and Restated Limited Liability Company Operating Agreement of New Ryan Specialty, LLC, dated as of April 30, 2024, by and among New Ryan Specialty, LLC and the other signatories party thereto, (incorporated by reference to Exhibit 10.18 to the Registrant’s Quarterly Report on Form 10-Q filed on August 02, 2024).

10.20		Ryan Specialty Group Services, LLC Executive Severance Plan, (incorporated by reference to Exhibit 10.15 to the Registrant’s Form 10-K filed on February 28, 2024).

19.1		Ryan Specialty Holdings, Inc. Insider Trading Policy dated May 1, 2023, (incorporated by reference to Exhibit 19.1 to the Registrant’s Form 10-K filed on February 21, 2025).

31.1		Certification of the Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.

31.2		Certification of the Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.

32.1*		Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, filed herewith.

32.2*		Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, filed herewith.

97.1		Clawback Policy Pursuant to Rule 10D-1 under the Exchange Act, (incorporated by reference to Exhibit 97.1 to the Registrant’s Form 10-K filed on February 28, 2024).

101.INS		Inline XBRL (Extensible Business Reporting Language) Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH		Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents

104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)


	RYAN SPECIALTY HOLDINGS, INC. (Registrant)

Date: May 1, 2026	By:	/s/ Janice M. Hamilton

		Janice M. Hamilton
		Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)