Public Policy Holding Company (PPHC) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 13.2% YoY to $55.2M, including 5.1% organic growth; Adjusted EBITDA increased 11.1% to $12.8M at a 23.2% margin.

• 9M revenue rose 15.2% to $157.5M, with 4.7% organic growth; Adjusted EBITDA increased 9.9% to $36.2M at a 23.0% margin.

• FY26 guidance was reaffirmed; acquisitions expanded policy, geographic, crisis, litigation and financial communications capabilities.

Financial highlights

• Q3 GAAP net income was $0.2M versus a $7.4M loss a year earlier; 9M GAAP net loss narrowed to $15.0M from $23.8M.

• Q3 Adjusted Net Income increased 8.7% to $10.7M; 9M rose 12.8% to $28.6M.

• Adjusted diluted EPS was $0.33 in Q3 and $0.92 for 9M, versus $0.36 and $0.97; IPO-related share dilution offset adjusted earnings growth.

• 9M Adjusted Free Cash Flow was $14.6M versus $21.1M; operating cash flow was negative $16.5M versus positive $10.0M, reflecting working-capital use and acquisition-related cash outflows.

Outlook and guidance

• FY26 guidance remains revenue of $213M-$216M and Adjusted EBITDA of $48.5M-$50.5M, at a 22.5%-23.5% margin; it excludes future acquisitions.

• Long-term organic revenue growth expectation is ~5% annually; management aims to rebuild Adjusted EBITDA margin toward 25% as acquired businesses scale and public-company costs are absorbed.

• Retainers provide revenue visibility; Q4 project work following the elections is a key variable, with strong Q4 free cash flow conversion expected.

• M&A targets remain two to four transactions annually, focusing on integration, cross-selling, geographic gaps and firms typically generating $10M-$30M in revenue.