BROWN & BROWN, INC.BRO

BROWN & BROWN, INC. Revenue Disclosure

10-KFiled Feb 12, 20265 min read

NOTE 2 Revenues

The following tables present the revenues disaggregated by revenue source:

 

 

For the year
ended December 31, 2025

 

(in millions)

 

Retail

 

 

Specialty Distribution

 

 

Other(8)

 

 

Total

 

Base commissions(1)

 

$

2,334

 

 

$

1,607

 

 

$

—

 

 

$

3,941

 

Fees(2)

 

 

795

 

 

 

485

 

 

 

(2

)

 

 

1,278

 

Other supplemental commissions(3)

 

 

185

 

 

 

21

 

 

 

—

 

 

 

206

 

Profit-sharing contingent commissions(4)

 

 

72

 

 

 

183

 

 

 

—

 

 

 

255

 

Earned premium(5)

 

 

—

 

 

 

83

 

 

 

—

 

 

 

83

 

Investment income(6)

 

 

17

 

 

 

26

 

 

 

89

 

 

 

132

 

Other income, net(7)

 

 

3

 

 

 

4

 

 

 

—

 

 

 

7

 

Total Revenues

 

$

3,406

 

 

$

2,409

 

 

$

87

 

 

$

5,902

 

 

 

 

 

For the year
ended December 31, 2024

 

(in millions)

 

Retail

 

 

Specialty Distribution

 

 

Other(8)

 

 

Total

 

Base commissions(1)

 

$

1,874

 

 

$

1,407

 

 

$

1

 

 

$

3,282

 

Fees(2)

 

 

631

 

 

 

362

 

 

 

(1

)

 

 

992

 

Other supplemental commissions(3)

 

 

171

 

 

 

17

 

 

 

—

 

 

 

188

 

Profit-sharing contingent commissions(4)

 

 

44

 

 

 

122

 

 

 

—

 

 

 

166

 

Earned premium(5)

 

 

—

 

 

 

77

 

 

 

—

 

 

 

77

 

Investment income(6)

 

 

6

 

 

 

29

 

 

 

58

 

 

 

93

 

Other income, net(7)

 

 

3

 

 

 

2

 

 

 

2

 

 

 

7

 

Total Revenues

 

$

2,729

 

 

$

2,016

 

 

$

60

 

 

$

4,805

 

 

 

 

 

 

 

For the year
ended December 31, 2023

 

(in millions)

 

Retail

 

 

Specialty Distribution

 

 

Other(8)

 

 

Total

 

Base commissions(1)

 

$

1,692

 

 

$

1,176

 

 

$

—

 

 

$

2,868

 

Fees(2)

 

 

597

 

 

 

400

 

 

 

(2

)

 

 

995

 

Other supplemental commissions(3)

 

 

164

 

 

 

15

 

 

 

(1

)

 

 

178

 

Profit-sharing contingent commissions(4)

 

 

50

 

 

 

80

 

 

 

—

 

 

 

130

 

Earned premium(5)

 

 

—

 

 

 

28

 

 

 

—

 

 

 

28

 

Investment income(6)

 

 

1

 

 

 

14

 

 

 

37

 

 

 

52

 

Other income, net(7)

 

 

4

 

 

 

1

 

 

 

1

 

 

 

6

 

Total Revenues

 

$

2,508

 

 

$

1,714

 

 

$

35

 

 

$

4,257

 

 

 

 

(1)
Base commissions generally represent a percentage of the premium paid by an insured and are affected by fluctuations in both premium rate levels charged by insurance companies and the insureds’ underlying “insurable exposure units,” which are units that insurance companies use to measure or express insurance exposed to risk (such as property values, or sales and payroll levels) to determine what premium to charge the insured. Insurance companies establish these premium rates based upon many factors, including loss experience, risk profile and reinsurance rates paid by such insurance companies, none of which we control.
(2)
Fee revenues relate to fees for services other than securing coverage for our customers, fees negotiated in lieu of commissions, and F&I products and services.
(3)
Other supplemental commissions include additional commissions over base commissions received from insurance carriers based on predetermined growth or production measures. This includes incentive commissions and guaranteed supplemental commissions.
(4)
Profit-sharing contingent commissions are based primarily on underwriting results, but may also reflect considerations for volume, growth and/or retention.
(5)
Earned premium relates to the premiums earned in the Captives.
(6)
Investment income consists primarily of interest on cash and investments.
(7)
Other income consists primarily of other miscellaneous income.
(8)
Fees within Other reflects the elimination of intercompany revenues.

Revenues Disaggregated by Geography

The following table presents the revenues disaggregated by geographic area where our services are being performed:

 

 

For the year ended December 31,

 

(in millions)

 

2025

 

 

2024

 

 

2023

 

U.S.

 

$

5,059

 

 

$

4,140

 

 

$

3,730

 

U.K.

 

 

599

 

 

 

545

 

 

 

433

 

Other

 

 

244

 

 

 

120

 

 

 

94

 

Total Revenues

 

$

5,902

 

 

$

4,805

 

 

$

4,257

 

Contract Assets and Liabilities

The balances of contract assets and contract liabilities arising from contracts with customers as of December 31, 2025 and 2024 were as follows:

 

(in millions)

 

December 31, 2025

 

 

December 31, 2024

 

Contract assets

 

$

908

 

 

$

575

 

Contract liabilities

 

$

168

 

 

$

119

 

Unbilled receivables (contract assets) arise when the Company recognizes revenue for amounts which have not yet been billed in our systems and are reflected in commissions, fees and other receivables in the Company's Consolidated Balance Sheets. The increase in contract assets over the balance as of December 31, 2024 is due to growth in our business and from businesses acquired in the current year.

Deferred revenue (contract liabilities) relates to payments received in advance of performance under the contract before the transfer of a good or service to the customer. Deferred revenue is reflected within accrued expenses and other liabilities for those to be recognized in less than 12 months and in other liabilities for those to be recognized more than 12 months from the date presented in the Company's Consolidated Balance Sheets.

As of December 31, 2025, deferred revenue consisted of $127 million as the current portion to be recognized within one year and $41 million to be recognized beyond one year. As of December 31, 2024, deferred revenue consisted of $80 million as the current portion to be recognized within one year and $39 million in long-term deferred revenue to be recognized beyond one year.

During the 12 months ended December 31, 2025, 2024, and 2023, the amount of revenue recognized related to performance obligations satisfied in a previous period, inclusive of changes due to estimates, was approximately $59 million, $39 million, and $28 million, respectively. This consists of additional variable consideration received on our incentive and profit-sharing contingent commissions that required refinements in our estimates and variable consideration true-ups.

Other Assets and Deferred Cost

Incremental cost to obtain – The Company defers certain costs to obtain customer contracts primarily as they relate to commission-based compensation plans in the Retail segment, whereby the Company pays an incremental amount of compensation on new business. These incremental costs are deferred and amortized over a 15-year period. The cost to obtain balance within the other assets caption in the Company’s Consolidated Balance Sheets was $143 million and $119 million as of December 31, 2025 and 2024, respectively. For the 12 months ended December 31, 2025 and December 31, 2024, the Company deferred $35 million and $33 million of incremental cost to obtain customer contracts, respectively and recorded an expense of $11 million and $10 million, respectively.

Cost to fulfill - The Company defers certain costs to fulfill contracts and recognizes these costs as the associated performance obligations are fulfilled. The cost to fulfill balance within the other current assets caption in the Company's Consolidated Balance Sheets was $208 million and $145 million as of December 31, 2025 and 2024, respectively. For the 12 months ended December 31, 2025 and December 31, 2024, the Company had net deferrals of $8 million and $13 million related to current year deferrals for costs incurred that relate to performance obligations yet to be fulfilled, net of the expense of previously deferred contract fulfillment costs associated with performance obligations that were satisfied in the period, respectively.

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 13, 2025
2023Feb 22, 2024
2022Feb 27, 2023
2021Feb 23, 2022
2020Feb 23, 2021
2019Feb 24, 2020
2018Feb 26, 2019

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

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