Public Policy Holding Company (PPHC) Investor presentation summary

Business model and market position

• Serves ~1,700 clients, including nearly half of Fortune 100 companies; ~90% of revenue is retainer-based and annual client retention is 80–85%.

• Three complementary segments span Government Relations, Corporate Communications & Public Affairs, and Compliance & Insights; estimated strategic communications TAM exceeds $20B.

• Platform combines distinct, accountable firms with shared back-office functions, supporting conflict management, cross-referrals and operating scale while preserving firm autonomy.

• 2025 revenue was $186.5M: Government Relations 58.2%, Corporate Communications & Public Affairs 34.9%, and Compliance & Insights 7.0%.

Q3 and 9M 2026 performance

• Q3 revenue was $55.2M, up 13.2% YoY, with 5.1% organic growth; 9M revenue reached $157.5M, up 15.2%, with 4.7% organic growth.

• Q3 adjusted EBITDA was $12.8M, up 11.1%, at a 23.2% margin; 9M adjusted EBITDA was $36.2M, up 9.9%, at a 23.0% margin.

• 9M organic growth by segment: Government Relations 6.7%, Corporate Communications & Public Affairs (0.9)%, and Compliance & Insights 14.0%.

• 9M adjusted diluted EPS was $0.92 versus $0.97 YoY; GAAP net loss was $15.0M versus $23.8M, and net debt was $21.4M at quarter-end.

Growth strategy and acquisitions

• Long-term targets include ~5% average annual organic revenue growth, supplemented by strategic acquisitions; management cites 10 consecutive years of positive organic growth.

• Acquisition model uses upfront consideration and multi-year earnouts tied to post-acquisition profit growth, with payments in cash and shares and a typical 7–9-year transaction structure.

• 2026 acquisitions included WPI, The Advocacy Partners, Tancredi and Reevemark, adding UK, Florida and New York capabilities across policy, corporate, crisis and litigation communications.

• Expected earnout payments for Q4 2026–2031 total $80.2M: $43.8M in cash and $36.4M in shares; a new Bank of America facility supports potential leverage of 1.5–2.0x EBITDA for accretive deals.