The Baldwin Group, the brand name for The Baldwin Insurance Group, Inc. ("Baldwin" or the "Company") (NASDAQ:BWIN), an independent insurance distribution firm delivering tailored insurance solutions to a wide range of personal and commercial clients, today announced its preliminary results for the third quarter ended September 30, 2026.
THIRD QUARTER 2026 HIGHLIGHTS
Total revenue of $480.3 million, a 31% increase from $365.4 million in the prior-year period
Organic revenue growth(3) of 6% year-over-year
GAAP net loss of $81.6 million and net loss margin of 17%
Adjusted EBITDA grew 47% to $106.9 million
Adjusted EBITDA margin of 22.2%, a 240 basis point expansion compared to 19.8% in the prior-year period
Net cash provided by operating activities of $54.2 million
Adjusted free cash flow increased 33% year-over-year to $55.6 million
The financial results for the third quarter ended September 30, 2026 included in this release are preliminary, have not been reviewed or audited, are based on Baldwin's estimates, and were prepared prior to the completion of the Company's financial statement close process. Accordingly, there can be no assurance that actual results will not differ from the preliminary financial information presented herein, and any such differences could be material. Our actual results for the third quarter ended September 30, 2026 will be subsequently released and also filed in connection with the Company’s Form 10-Q for the quarter ended September 30, 2026 within the requisite time prescribed by the SEC.
LIQUIDITY AND CAPITAL RESOURCES
As of September 30, 2026, cash and cash equivalents were $188.6 million and the Company had $289.1 million of borrowing capacity under its revolving credit facility. Total debt was $2.465 billion as of September 30, 2026.
PROPOSED MERGER
On September 14, 2026, the Company entered into a definitive merger agreement ("Merger Agreement") pursuant to which an investor group led by Sequence Holdings and DFO Management, LLC has agreed to acquire the Company in an all-cash take-private transaction. Under the terms of the Merger Agreement, the Company's stockholders will receive $32.50 per share in cash, subject to the terms and conditions of the Merger Agreement. The transaction is expected to close during the first quarter of 2027, subject to shareholder approval, regulatory approvals and other customary closing conditions. Upon completion of the transaction, the Company's common stock will cease trading on Nasdaq and the Company will become privately held.