AJGMEDIUM SIGNALFINANCIAL10-K

AJG completed significant acquisitions including AssuredPartners while experiencing substantially higher interest expenses and reduced operating cash flow generation.

The acquisition activity drove revenue growth but came at considerable financial cost, with interest expenses rising substantially due to increased borrowing to fund deals. The meaningful decline in operating cash flow despite revenue growth suggests integration challenges or one-time costs that investors should monitor closely.

Comparing 2026-02-17 vs 2025-02-18View on EDGAR →
FINANCIAL ANALYSIS

AJG's financial profile reflects an acquisition-heavy period, with revenue growing 10.1% to $6.2B while interest expenses rose substantially to $639M, indicating significant debt financing. Operating cash flow declined meaningfully to $1.9B despite higher revenues, suggesting elevated integration costs or working capital pressures. The balance sheet shows mixed signals with stockholders' equity growing 15.7% but current assets declining 22.1%, while accounts receivable increased 32.8% reflecting the expanded business scale.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
+67.6%
$381.3M→$639.0M

Interest expense surged 67.6% — significant debt increase or rising rates materially impacting earnings.

Share Buybacks
Cash Flow
-35.8%
$17.6M→$11.3M

Buyback activity reduced 35.8% — capital being redeployed elsewhere or cash conservation underway.

Accounts Receivable
Balance Sheet
+32.8%
$3.9B→$5.2B

Receivables surged 32.8% — revenue recognized but not yet collected; watch for collection issues or channel stuffing.

Operating Cash Flow
Cash Flow
-25.3%
$2.6B→$1.9B

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Current Assets
Balance Sheet
-22.1%
$44.1B→$34.4B

Current assets declined 22.1% — monitor working capital adequacy and short-term liquidity.

Stockholders Equity
Balance Sheet
+15.7%
$20.2B→$23.3B

Equity base grew 15.7% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Cash & Equivalents
Balance Sheet
-15%
$402.6M→$342.3M

Cash decreased 15% — monitor burn rate and upcoming capital needs.

Current Liabilities
Balance Sheet
+11.1%
$29.3B→$32.5B

Current liabilities rose 11.1% — increased short-term obligations, watch current ratio.

Revenue
P&L
+10.1%
$5.6B→$6.2B

Revenue growing 10.1% — solid top-line momentum, watch margins for quality of growth.

LANGUAGE CHANGES
NEW — 2026-02-17
PRIOR — 2025-02-18
ADDED
726(b)) by the registered public accounting firm that prepared or issued its audit report Yes x No o .
The number of outstanding shares of the registrant s Common Stock, $1.00 par value, as of January 31, 2026 was 257.1 million.
(which we refer to as Woodruff Sawyer) and Dolphin TopCo, Inc., the holding company of AssuredPartners, Inc.
or foreign tax rate change, such as those resulting from the One Big Beautiful Bill Act (which we refer to as OBBBA), changes to the U.S.
Inflation Reduction Act, the Organisation for Economic Co-operation and Development s (which we refer to as the OECD) global minimum corporate tax regime, and other local policy changes; Competitive pressures, including as a result of innovation, in each of our businesses; Volatility or declines in premiums or other adverse trends in the insurance industry; The higher level of variability inherent in contingent and supplemental revenues versus standard commission revenues; Risks particular to our benefit consulting operations, including risks related to the acquisition of BCHR Holdings, L.P.
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REMOVED
The number of outstanding shares of the registrant s Common Stock, $1.00 par value, as of January 31, 2025 was 254.7 million .
Information Concerning Forward-Looking Statements This report contains certain statements related to future results, or states our intentions, beliefs and expectations or predictions for the future of Arthur J.
(which we refer to as Cadence Insurance), Eastern Insurance Group, LLC (which we refer to as Eastern Insurance), My Plan Manager Group Pty Ltd (which we refer to as My Plan Manager), and the acquisition of all the issued and outstanding stock of Dolphin TopCo, Inc., the holding company of AssuredPartners, Inc.
or foreign tax rate change, potential changes in guidance related to the U.S.
Inflation Reduction Act, the Organisation for Economic Co-operation and Development s (OECD) global minimum corporate tax regime, and other local policy changes; Competitive pressures, including as a result of innovation, in each of our businesses; Volatility or declines in premiums or other adverse trends in the insurance industry; The higher level of variability inherent in contingent and supplemental revenues versus standard commission revenues; Risks particular to our benefit consulting operations, including risks related to the acquisition of Buck and Redington Ltd.
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