Public Policy Holding Company (PPHC) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 27.5% year-over-year to $50.1 million, with 5.1% organic growth and strong M&A contributions, notably from TrailRunner and Pine Cove.

• Adjusted EBITDA reached a record $11.2 million (22.3% margin), up 29.7% year-over-year, though still below the 25% target due to public company costs and business mix.

• Adjusted Net Income doubled to $7.4 million, with Adjusted EPS (fully diluted) rising 74.5% to $0.25.

• GAAP net loss was $11.5 million, primarily due to non-cash share-based compensation and contingent consideration remeasurement.

• Net debt reduced to $1.8 million from $44.6 million a year ago, aided by U.S. IPO proceeds and debt repayments.

Financial highlights

• Revenue: $50.1 million, up 27.5% year-over-year, with 5.1% organic growth and M&A-driven gains.

• Adjusted EBITDA: $11.2 million (22.3% margin), up from $8.6 million (21.9%).

• Adjusted Net Income: $7.4 million (14.7% margin), up 100.5% year-over-year.

• Adjusted Free Cash Flow: $(10.3) million, reflecting seasonal Q1 dip, higher bonuses, and increased accounts receivable.

• Cash and equivalents at $42.9 million at quarter end.

Outlook and guidance

• 2026 revenue expected between $205 million and $209 million, with ~5% organic growth plus M&A.

• Adjusted EBITDA guidance for 2026: $46–$48 million (22–23% margin), reflecting public company costs and tech investments.

• Strong free cash flow conversion anticipated in the second half of the year.

• Capital allocation prioritizes M&A, with a reduced dividend policy to preserve cash for acquisitions.