The Baldwin Group reported second-quarter 2026 results showing revenue growth and margin expansion despite a slower organic growth rate. Total revenue reached $493 million, and adjusted EBITDA rose to $117 million, translating to a 24% adjusted EBITDA margin. Adjusted diluted earnings per share were $0.48.
Organic revenue growth for the quarter was 2%. The company said this figure would have been 8% had the three partnerships acquired on January 3 been owned in the prior-year period and after normalizing for idiosyncratic headwinds. Those partnerships grew 25% in the quarter and 34% through the first six months of the year.
Adjusted EBITDA margin for Q2 2026.
Insurance advisory solutions reported a 2% decline in organic revenue growth for the quarter. Legacy IS sales velocity (a measure of new business growth) accelerated to 19% in Q2, bringing year-to-date sales velocity to 16%. Combined sales velocity, including CAC and Capstone, was 30% in Q2 and 27% year to date.
The company faced several headwinds in the quarter. Rate and exposure was a 240-basis-point headwind, while a procedural accounting change was a 150-basis-point headwind. The accounting change was fully lapped on June 30. Client retention in the legacy IS business experienced a 240-basis-point headwind due to structural changes as part of the CAC integration work. These changes resulted in approximately $8 million of annualized revenue attrition tied to a small group of individuals no longer with the firm.
CEO Trevor Lowry Baldwin said the company anticipates the structural changes will impact legacy IS revenue and organic growth in the back half of 2026 by approximately $4 million to $5 million.
CEO Trevor Lowry Baldwin said of the 3 partnerships' growth: 'A truly remarkable performance.'
CAC generated total revenue of $94 million in Q2 2026, a 23% increase over the prior year. CAC delivered over $80 million in booked new business year to date, up 43% compared to the same period last year, and closed new business of over $100 million including future effective dates. CAC sales velocity was 59% across all product lines and 19% for recurring lines, with retention above 92%.
In the insurance solutions (IS) business, organic revenue growth would have been 8% in Q2 when including new partnerships and excluding idiosyncratic noise. MGA/TPA organic revenue growth was 56% in Q2, or 7% when including OVI as if owned in the prior-year period. Main Street Insurance Solutions organic revenue growth improved to 4% from a decline of roughly 5% in Q1; normalizing for QBE and Medicare underperformance, it was approximately 10%.
Brev, the company's inaugural reciprocal insurance exchange, is licensed in 13 states and has begun migrating business in several states outside Texas. CEO Baldwin said the company expects its second proprietary builder program with Hippo and Spinnaker to launch in select states by the end of 2026. Fairway Independent Mortgage, the most recent top-10 independent mortgage originator embedded partner, is tracking ahead of plan in its first three months on the platform.
Execution of the 3D30 Catalyst program remains on track, with flow-through from Phase I actions taken in Q1 2026. Baldwin said AI is expected to be a meaningful driver of reaching the 3D30 goal.
