• Total Revenue Growth: 20.5% increase to $605 million.

• Organic Revenue Growth: 11.8% for the quarter.

• Adjusted EBITDA Growth: 29.4% increase to $190 million.

• Adjusted EBITDA Margin: Expanded by 220 basis points to 31.5%.

• Adjusted Diluted EPS: Grew 28% to $0.41 per share.

• Effective Tax Rate: 26.1% for the quarter.

• Dividend: Regular quarterly dividend of $0.11 declared.

• Credit Facility and Term Loan: Refinanced with an upsized revolver and $1.7 billion term loan.

• Senior Secured Notes: Issued $600 million at a fixed rate of 5.875%.

• Guidance for Organic Revenue Growth: Full year 2024 guidance maintained at 13.0% to 14.8%.

• Guidance for Adjusted EBITDA Margin: Full year 2024 guidance maintained at 32.0% to 32.5%.

• Warning! GuruFocus has detected 3 Warning Signs with RELY.

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ryan Specialty Holdings Inc (NYSE:RYAN) reported a strong third quarter with total revenue growth of 20.5%, including 11.8% organic growth.

• The company achieved a 29.4% increase in adjusted EBITDA to $190 million, with an expanded adjusted EBITDA margin of 31.5%.

• Ryan Specialty Holdings Inc (NYSE:RYAN) executed several acquisitions, aligning with its long-term M&A strategy, which is expected to contribute to future growth.

• The company successfully implemented a leadership succession plan, ensuring continuity in executing its strategic vision.

• Ryan Specialty Holdings Inc (NYSE:RYAN) maintained a strong balance sheet, with ample capacity for future M&A opportunities, supported by a recent refinancing of its credit facility.

Negative Points

• The company faced short-term headwinds due to property rate deterioration, which accelerated in September.

• There is heightened uncertainty in the loss environment, particularly in casualty classes, driven by social inflation and litigation finance.

• The property market experienced a decline in pricing, which could impact future revenue if the trend continues.

• Ryan Specialty Holdings Inc (NYSE:RYAN) is exposed to risks from severe weather events, such as hurricanes, which could affect contingent commissions.

• The company is navigating a competitive landscape, particularly in the E&S market, which requires continuous adaptation and strategic positioning.

Q & A Highlights

Q: Can you provide insights on the organic growth rate for Q4, considering the impact of the property market and recent storms? A: Janice M Hamilton, CFO, explained that despite challenging property rates in Q3, Ryan Specialty managed healthy growth due to new risks entering the channel and market share gains. The company is optimistic about Q4, noting better results so far compared to September, with December being a crucial month due to its seasonal significance.