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1. Company Snapshot

1.a. Company Description

Ryan Specialty Group Holdings, Inc.operates as a service provider of specialty products and solutions for insurance brokers, agents, and carriers.It offers distribution, underwriting, product development, administration, and risk management services by acting as a wholesale broker and a managing underwriter.


The company was founded in 2010 and is headquartered in Chicago, Illinois.

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1.b. Last Insights on RYAN

Ryan Specialty Holdings, Inc.'s recent performance was negatively impacted by its Q4 2025 earnings miss, with quarterly earnings of $0.45 per share, falling short of the Zacks Consensus Estimate of $0.5 per share. Additionally, California Public Employees Retirement System decreased its stake in the company by 14.8% in Q2, selling 69,011 shares. The company's financials sector backdrop remains challenging, with sticky inflation, elevated asset valuations, and regulatory uncertainty. Despite a CEO appointment in its Canadian business, these factors likely affected the company's short-term performance.

1.c. Company Highlights

2. Ryan Specialty Holdings Delivers Strong FY 2025 Results

Ryan Specialty Holdings reported a robust financial performance for the full year 2025, with total revenue growing 21% to over $3 billion, driven by organic revenue growth of 10.1% and significant contributions from M&A, which added 10 percentage points to the top line. Adjusted EBITDAC grew 19.2% to $967 million, and adjusted EPS grew 9.5% to $1.96 per share. The actual EPS came in at $0.45 relative to estimates at $0.5, slightly below expectations. Analysts estimate next year's revenue growth at 13.6%, indicating a continued upward trajectory.

Publication Date: Feb -17

📋 Highlights
  • Revenue Growth:: Total revenue surged 21% to $3 billion in 2025, driven by 10.1% organic growth and M&A contributions adding 10 percentage points.
  • Adjusted EBITDAC Expansion:: Adjusted EBITDAC rose 19.2% to $967 million, reflecting operational efficiency and strong performance across specialties.
  • M&A Activity:: Completed 5 acquisitions with $125M+ trailing revenue and invested $2.7 billion in 12 acquisitions over 2 years, bolstering product offerings (50% growth to 300+ products).
  • Delegated Authority Growth:: Doubled delegated authority revenue to $1.4 billion (47% of total revenue), enhancing consultative solutions for brokers and carriers.
  • Empower Restructuring:: Launched a $160M cost-restructuring program expected to deliver $80M annual savings by 2029, boosting long-term profitability and M&A flexibility.

Segment Performance

The wholesale brokerage specialty demonstrated remarkable resilience in 2025, led by exceptional talent and secular trends like panel consolidation. The Property business declined modestly for the full year despite a challenging pricing environment, while the casualty practice had a very strong year. The delegated authority specialties, including binding authority and underwriting management, continued to perform well, driven by top-tier talent and an expanding product set.

Operational Highlights and Outlook

The company has made significant investments in M&A, completing 12 acquisitions over the last two years, and has grown its product offerings by 50% to over 300. The diversification achieved is significant, and the company is launching Project Empower, a 3-year restructuring program designed to improve efficiency and create headroom for additional investment. The company guides to organic revenue growth in the high single digits for 2026, reflecting its current view of market conditions.

Valuation and Metrics

With a P/E Ratio of 57.89, P/B Ratio of 7.74, and P/S Ratio of 1.63, the market is pricing in high expectations for Ryan Specialty Holdings. The EV/EBITDA ratio stands at 10.57, indicating a reasonable valuation relative to its earnings. The ROE of 14.26% and ROIC of 3.31% suggest a strong return on equity but a relatively lower return on invested capital. The company's Net Debt / EBITDA ratio is 4.38, indicating a manageable debt position.

Management's Insights

As Janice Hamilton noted, the company is guiding for high single-digit organic growth in 2026, driven by diversification of its offerings, including reinsurance underwriting and alternative risk solutions. This growth is expected to be industry-leading, and the company remains confident in its ability to adapt and grow in a changing market landscape.

3. NewsRoom

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THOR INDUSTRIES ELEVATES RYAN BIREN TO CHIEF INFORMATION OFFICER, SIGNALING ACCELERATED ENTERPRISE DATA AND AI STRATEGY

Mar -02

Source: prnewswire.com

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Artisan Partners Limited Partnership Buys 184,390 Shares of Ryan Specialty Holdings Inc. $RYAN

Feb -28

Source: defenseworld.net

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Pinterest, DraftKings, And Flutter Are Among Top 10 Large Cap Losers Last Week (Feb. 9-Feb. 13): Are the Others in Your Portfolio?

Feb -15

Source: feeds.benzinga.com

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Ryan Specialty Holdings, Inc. (RYAN) Q4 2025 Earnings Call Transcript

Feb -13

Source: seekingalpha.com

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Here's What Key Metrics Tell Us About Ryan Specialty (RYAN) Q4 Earnings

Feb -13

Source: zacks.com

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Ryan Specialty Group (RYAN) Misses Q4 Earnings and Revenue Estimates

Feb -13

Source: zacks.com

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Ryan Specialty Appoints Stephen Stewart CEO of Ryan Specialty Canada Limited

Feb -05

Source: businesswire.com

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Worst Financials Sector Stocks As Earnings Ramp Up

Jan -14

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.23%)

6. Segments

Ryan Specialty

Expected Growth: 8.23%

Ryan Specialty's 8.23% growth is driven by increasing demand for specialty insurance products, expansion into new markets, and strategic acquisitions. The company's expertise in niche areas, such as transportation and construction, also contributes to its growth. Additionally, its technology-enabled platform and data analytics capabilities enhance operational efficiency and attract new clients.

7. Detailed Products

Wholesale Brokerage

Ryan Specialty Holdings, Inc. offers wholesale brokerage services, connecting retail brokers with specialty insurance markets, providing access to a wide range of insurance products and services.

Binding Authority

Ryan Specialty Holdings, Inc. provides binding authority, enabling agents and brokers to quote and bind specialty insurance policies on behalf of their clients.

Program Management

Ryan Specialty Holdings, Inc. offers program management services, designing and managing specialty insurance programs for agents, brokers, and carriers.

MGA/MGU Services

Ryan Specialty Holdings, Inc. provides managing general agency (MGA) and managing general underwriter (MGU) services, supporting the development and distribution of specialty insurance products.

Reinsurance Brokerage

Ryan Specialty Holdings, Inc. offers reinsurance brokerage services, connecting cedents with reinsurers and providing access to global reinsurance markets.

8. Ryan Specialty Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Ryan Specialty Holdings, Inc. operates in a niche market, providing specialty insurance products and services. While there are substitutes available, they are not easily accessible, and the company's strong relationships with its clients and brokers provide a competitive advantage.

Bargaining Power Of Customers

Ryan Specialty Holdings, Inc.'s customers are largely comprised of small to medium-sized businesses and individuals, which limits their bargaining power. The company's strong brand reputation and specialized products also reduce the customers' ability to negotiate prices.

Bargaining Power Of Suppliers

Ryan Specialty Holdings, Inc. relies on a network of suppliers, including insurance carriers and reinsurers. While the company has some bargaining power due to its size and reputation, the suppliers also have some leverage due to the specialized nature of the products and services.

Threat Of New Entrants

The specialty insurance market has high barriers to entry, including regulatory hurdles, capital requirements, and the need for specialized expertise. This limits the threat of new entrants and provides Ryan Specialty Holdings, Inc. with a competitive advantage.

Intensity Of Rivalry

The specialty insurance market is highly competitive, with several established players competing for market share. Ryan Specialty Holdings, Inc. must continually innovate and differentiate its products and services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 78.14%
Debt Cost 6.81%
Equity Weight 21.86%
Equity Cost 6.81%
WACC 6.81%
Leverage 357.40%

11. Quality Control: Ryan Specialty Holdings, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
MGIC

A-Score: 6.9/10

Value: 6.7

Growth: 6.4

Quality: 8.2

Yield: 4.0

Momentum: 7.0

Volatility: 9.3

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Radian Group

A-Score: 6.3/10

Value: 6.0

Growth: 2.9

Quality: 8.1

Yield: 6.0

Momentum: 5.5

Volatility: 9.0

1-Year Total Return ->

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NMI Holdings

A-Score: 6.2/10

Value: 6.9

Growth: 7.6

Quality: 9.0

Yield: 0.0

Momentum: 4.5

Volatility: 9.0

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Assurant

A-Score: 6.1/10

Value: 6.1

Growth: 6.1

Quality: 6.3

Yield: 4.0

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

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First American

A-Score: 6.1/10

Value: 7.6

Growth: 3.1

Quality: 4.6

Yield: 8.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

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Ryan Specialty Holdings

A-Score: 4.2/10

Value: 3.4

Growth: 7.0

Quality: 4.5

Yield: 1.0

Momentum: 2.0

Volatility: 7.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

36.45$

Current Price

36.45$

Potential

-0.00%

Expected Cash-Flows