Andersen Group (ANDG) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue rose 15.7% year-over-year to $240.7 million, driven by broad-based client demand, service line expansion, and higher engagement volume, with no large one-time items.

• Adjusted EBITDA increased 26.4% to $72.3 million, with a 30% margin; adjusted net income was $62.9 million, up from $55.2 million.

• Net income was $17.7 million (7.4% margin), down from $50.6 million due to $41.2 million in non-cash equity-based compensation tied to the IPO.

• Strategic investments in talent, technology, automation, and AI are ongoing to enhance client service and operational efficiency.

• Completed IPO and major equity reorganization in Q4 2025, transitioning to a public company structure.

Financial highlights

• Revenue per professional increased 12.7% year-over-year, and revenue per hour rose 8%.

• Adjusted EBITDA margin improved to 30% from 27.5% last year.

• Operating expenses rose sharply, mainly due to non-cash equity-based compensation.

• Cash and cash equivalents at March 31, 2026 were $206.8 million, with $5.1 million in treasury securities.

• Headcount grew 2.8% in Q1 to 2,271; attrition rate increased to 15.7%.

Outlook and guidance

• Q2 2026 revenue expected between $190 million and $205 million (~13% growth), with projected net loss and negative EPS due to seasonality and equity-based compensation.

• Full-year 2026 revenue guidance raised to $980 million–$1 billion (~18% growth), including $55 million inorganic revenue.

• Adjusted EBITDA for 2026 projected at $225–$250 million, with margins of 23–25%.

• Continued investment in acquisitions, technology, and talent expected to drive positive net income and EPS for the year.

• Seasonality impacts financial performance, with peak periods around U.S. tax deadlines.