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Business Combinations (Notes) | 6 Months Ended
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Jun. 30, 2026
Business Combination [Abstract] |
Business Combinations | Business Combinations The Company completed three business combinations for an aggregate purchase price of $1.6 billion during the six months ended June 30, 2026. In accordance with ASC Topic 805, Business Combinations (“Topic 805”), total consideration was first allocated to the fair value of assets acquired, including liabilities assumed, with the excess being recorded as goodwill. For financial statement purposes, goodwill is not amortized but rather is evaluated for impairment at least annually or more frequently if an event or change in circumstances occurs that indicates goodwill may be impaired. Approximately 31% of goodwill recorded from business combinations during the six months ended June 30, 2026 is deductible for income tax purposes. The deductible goodwill is amortized over a period of 15 years for tax reporting purposes. The Company completed the following business combinations during the six months ended June 30, 2026: •The Company acquired the outstanding equity interests of the business of Cobbs Allen Capital Holdings, LLC (“CAC Group”), an Insurance Advisory Solutions partner effective January 1, 2026, to significantly expand Baldwin’s specialty capabilities and strengthen its specialty product lines and data and analytics platform. •The Company acquired the outstanding equity interests of Creisoft, Inc. (“Obie”), an Underwriting, Capacity & Technology Solutions partner effective January 2, 2026, to expand access to embedded insurance distribution capabilities for MSI within the UCTS operating group and strengthen its offerings in the rapidly growing real estate investor market. •The Company acquired substantially all the assets of Foley Insurance Agency, Inc., doing business as Capstone Group (“Capstone”), an Insurance Advisory Solutions partner effective January 2, 2026, to expand Baldwin’s regional presence and enhance its ability to deliver comprehensive risk management solutions to a wider client base. The recorded purchase price for business combinations includes an estimation of the fair value of contingent earnout obligations associated with contractual earnout provisions providing for post-closing contingent consideration payments, which are based on revenue, revenue growth and net income (loss) before interest, taxes, depreciation, amortization, change in fair value of contingent consideration and certain items of income and expense, including share-based compensation expense, transaction-related partnership and integration expenses, transformation costs, severance, and certain non-recurring items, including those related to raising capital (“adjusted EBITDA”) growth. The contingent earnout consideration amounts identified in the table below are measured at fair value within Level 3 of the fair value hierarchy as discussed further in Note 16. Any subsequent changes in the fair value of contingent earnout liabilities will be recorded in the condensed consolidated statements of comprehensive income (loss) when incurred. The recorded purchase price allocations for the CAC Group, Obie, and Capstone partnerships also include an estimation of the fair value of equity interests, which is calculated based on the value of the Company’s Class A common stock on the closing date taking into account a discount for lack of marketability. The operating results of these business combinations have been included in the condensed consolidated statements of comprehensive income (loss) from their respective acquisition dates. The Company recognized total revenues and net loss from its business combinations of $99.9 million and $32.4 million, respectively, for the three months ended June 30, 2026, and $202.1 million and $42.3 million, respectively, for the six months ended June 30, 2026. Acquisition-related costs incurred in connection with the CAC Group, Obie, and Capstone partnerships are recorded in other operating expenses in the condensed consolidated statements of comprehensive income (loss). The Company incurred acquisition-related costs from these business combinations of $17.7 million during the six months ended June 30, 2026. Due to the complexity of valuing the consideration paid and the purchase price allocation and the timing of these activities, certain amounts included in the consolidated financial statements may be provisional and subject to additional adjustments within the measurement period as permitted by Topic 805. Specifically, the Company’s valuations of the fair value of contingent earnout consideration and intangible assets are estimates based on assumptions of factors such as discount rates and growth rates and tax related balances for CAC Group and Obie are estimates based on the preliminary determination of the tax basis of assets acquired and liabilities assumed. Accordingly, these assets and liabilities are subject to measurement period adjustments as determined after the passage of time. Any measurement period adjustments related to prior period business combinations are reflected as current period adjustments in accordance with Topic 805. The table below provides a summary of the total consideration and the estimated purchase price allocations made for each of the business acquisitions that became effective during the six months ended June 30, 2026.
(in thousands) | CAC Group |  | Obie |  | Capstone |  | Totals
Cash consideration paid | $ | 445,535 |  |  | $ | 86,958 |  |  | $ | 35,396 |  |  | $ | 567,889 |
Fair value of contingent earnout consideration | 225,000 |  |  | 81,755 |  |  | 9,243 |  |  | 315,998 |
Fair value of equity interest | 494,778 |  |  | 8,393 |  |  | 7,390 |  |  | 510,561 |
Deferred payments(1) | 54,900 |  |  | 110,264 |  |  | — |  |  | 165,164 |
Total consideration | $ | 1,220,213 |  |  | $ | 287,370 |  |  | $ | 52,029 |  |  | $ | 1,559,612 |
Recognized amounts of identifiable assets acquired and liabilities assumed: |  |  |  |  |  |  |
Cash | $ | 13,692 |  |  | $ | 1,962 |  |  | $ | 739 |  |  | 16,393 |
Fiduciary cash | 88,804 |  |  | 15,189 |  |  | — |  |  | 103,993 |
Assumed premiums, commissions and fees receivable | 43,869 |  |  | 607 |  |  | 698 |  |  | 45,174 |
Fiduciary receivables | 188,515 |  |  | 2,667 |  |  | — |  |  | 191,182 |
Prepaid expenses and other current assets | 2,044 |  |  | 272 |  |  | 39 |  |  | 2,355 |
Property and equipment | 8,778 |  |  | — |  |  | — |  |  | 8,778 |
Right-of-use assets | 26,494 |  |  | 808 |  |  | — |  |  | 27,302 |
Other assets | 5,728 |  |  | — |  |  | — |  |  | 5,728 |
Intangible assets | 410,245 |  |  | 121,688 |  |  | 19,050 |  |  | 550,983 |
Fiduciary liabilities | (277,319) |  |  | (17,856) |  |  | — |  |  | (295,175) |
Commissions payable | (45,172) |  |  | — |  |  | (168) |  |  | (45,340) |
Accrued expenses and other current liabilities | (15,507) |  |  | (5,553) |  |  | (530) |  |  | (21,590) |
Operating lease liabilities, less current portion | (22,050) |  |  | (808) |  |  | — |  |  | (22,858) |
Deferred tax liabilities | (115,997) |  |  | (26,211) |  |  | — |  |  | (142,208) |
Total identifiable net assets acquired | 312,124 |  |  | 92,765 |  |  | 19,828 |  |  | 424,717 |
Goodwill | 908,089 |  |  | 194,605 |  |  | 32,201 |  |  | 1,134,895 |
Net assets acquired | $ | 1,220,213 |  |  | $ | 287,370 |  |  | $ | 52,029 |  |  | $ | 1,559,612 |
Maximum potential contingent earnout consideration | $ | 250,000 |  |  | $ | 275,000 |  |  | $ | 19,855 |  |  | $ | 544,855 |
__________ (1) The non-current portion of deferred payment obligations totaling $129.4 million is reflected in other liabilities on the condensed consolidated balance sheet as of June 30, 2026 while the current portion is reflected in accrued expenses and other current liabilities as disclosed in Note 9. The factors contributing to the recognition of goodwill include the expansion of our specialty risk and advisory capabilities, enhanced embedded insurance distribution and vertical integration within the reinsurance and insurance brokerage industry, and the strengthening of our regional presence and comprehensive risk management offerings. The intangible assets acquired in connection with the partnerships have the following values and estimated weighted-average lives:
(in thousands, except weighted-average lives) | Amount |  | Weighted- Average Life
Acquired relationships | $ | 474,070 |  |  | 15.0 years
Trade names | 48,250 |  |  | 5.3 years
Software | 28,663 |  |  | 4.7 years
Future annual estimated amortization expense for the next five years is as follows for intangible assets acquired in connection with the partnerships:
(in thousands) |  | Amount
For the remainder of 2026 |  | $ | 45,515 |
2027 |  | 79,025 |
2028 |  | 69,099 |
2029 |  | 61,040 |
2030 |  | 55,531 |
2031 |  | 36,063 |
The following pro forma consolidated results of operations are provided for illustrative purposes only and have been presented as if the CAC Group, Obie, and Capstone partnerships occurred on January 1, 2025. This pro forma information should not be relied upon as being indicative of the historical results that would have been obtained if the acquisition had occurred on that date, nor of the results that may be obtained in the future.
|  | For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
(in thousands) |  | 2026 |  | 2025 |  | 2026 |  | 2025
Pro forma results: |  |  |  |  |  |  |  |
Revenues |  | $ | 492,939 |  |  | $ | 468,120 |  |  | $ | 1,025,174 |  |  | $ | 956,381 |
Net loss(1) |  | (55,981) |  |  | (31,136) |  |  | (40,209) |  |  | (45,824) |
__________ (1) A pproximately $17.7 million of non-recurring acquisition-related costs attributable to the CAC Group, Obie and Capstone partnerships incurred during the six months ended June 30, 2026 were recognized as a pro forma adjustment to net loss for the six months ended June 30, 2025, and correspondingly removed from pro forma net loss for the six months ended June 30, 2026.

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