Annual report [Section 13 and 15(d), not S-K Item 405]

Consolidated Statements of Cash Flows

v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES      
Net income $ 214,157 $ 229,913 $ 194,480
Adjustments to reconcile net income to cash flows provided by operating activities:      
Income from equity method investments (21,236) (18,231) (8,731)
Amortization 274,426 157,845 106,799
Depreciation 13,089 9,785 9,038
Prepaid and deferred compensation expense 38,779 30,834 12,192
Non-cash equity-based compensation 69,451 78,995 69,743
Amortization of debt issuance costs 9,567 23,930 12,172
Amortization of interest rate cap premium 6,955 6,955 6,955
Deferred income tax expense 26,047 16,798 7,134
Deferred income tax expense from common control reorganizations 48,597 9,519 18,356
Loss (gain) on Tax Receivable Agreement 1,112 (2,099) 11,170
Changes in operating assets and liabilities, net of acquisitions:      
Commissions and fees receivable – net (57,559) (22,007) (44,185)
Accrued interest liability 9,362 20,337 934
Other current and non-current assets 1,255 (20,668) 5,773
Other current and non-current liabilities 9,665 (7,038) 75,373
Total cash flows provided by operating activities 643,667 514,868 477,203
CASH FLOWS FROM INVESTING ACTIVITIES      
Business combinations – net of cash acquired and cash held in a fiduciary capacity (746,485) (1,708,737) (446,682)
Capital expenditures (67,953) (47,001) (29,776)
Equity method investment in VSIC (16,561) 0 0
Asset acquisitions (3,014) 0 0
Repayments of prepaid incentives 0 0 228
Total cash flows used in investing activities (834,013) (1,755,738) (476,230)
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from Senior Secured Notes 0 1,187,400 0
Borrowings on Revolving Credit Facility 1,333,328 1,250,000 0
Repayments on Revolving Credit Facility (1,261,928) (1,250,000) 0
Debt issuance costs paid (2,889) (25,536) 0
Proceeds from term debt 0 107,625 0
Repayment of term debt (17,000) (8,250) (16,500)
Receipt of contingently returnable consideration 1,927 0 0
Payment of contingent consideration (29,252) 0 (4,477)
Tax distributions to non-controlling LLC Unitholders (64,126) (82,702) (71,674)
Receipt of taxes related to net share settlement of equity awards 35,900 27,930 7,811
Taxes paid related to net share settlement of equity awards (37,045) (27,460) (8,785)
Payment of Tax Receivable Agreement liabilities (25,169) (21,578) (16,206)
Class A common stock dividends and Dividend Equivalents paid (62,339) (80,236) 0
Distributions and Declared Distributions paid to non-controlling LLC Unitholders (27,174) (22,209) 0
Payments related to Ryan Re preferred units (3,733) (2,130) 0
Net change in fiduciary liabilities 237,616 114,003 97,221
Total cash flows provided by (used in) financing activities 78,116 1,166,857 (12,610)
Effect of changes in foreign exchange rates on cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity 15,895 (1,514) 584
NET CHANGE IN CASH, CASH EQUIVALENTS, AND CASH AND CASH EQUIVALENTS HELD IN A FIDUCIARY CAPACITY (96,335) (75,527) (11,053)
CASH, CASH EQUIVALENTS, AND CASH AND CASH EQUIVALENTS HELD IN A FIDUCIARY CAPACITY—Beginning balance 1,680,805 1,756,332 1,767,385
CASH, CASH EQUIVALENTS, AND CASH AND CASH EQUIVALENTS HELD IN A FIDUCIARY CAPACITY—Ending balance 1,584,470 1,680,805 1,756,332
Reconciliation of cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity      
Cash and cash equivalents 158,322 540,203 838,790
Cash and cash equivalents held in a fiduciary capacity 1,426,148 1,140,602 917,542
Total cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity $ 1,584,470 $ 1,680,805 $ 1,756,332