Andersen Group Q2 Earnings Call Highlights

Strong organic growth drove the quarter: Second-quarter revenue rose 23.7% year over year to $217.7 million, exceeding guidance, while organic growth reached 20.6%. Business tax services led performance with 36.9% growth, and adjusted EBITDA increased 55% to $45.9 million as margins expanded. Acquisition-related revenue is being delayed: Although Andersen has signed 16 transactions representing more than $130 million in annualized revenue, regulatory and structuring delays reduced expected 2026 inorganic revenue to approximately $25 million–$30 million from $55 million. Management said the opportunity pipeline remains strong, with some contribution shifting into 2027. Full-year guidance was reaffirmed: Andersen maintained 2026 revenue guidance of $980 million–$1 billion and adjusted EBITDA guidance of $225 million–$250 million. The company ended the quarter with $175.6 million in cash and no third-party debt, while continuing to invest in employee AI training and adoption.

Andersen Group NYSE: ANDG reported second-quarter revenue that exceeded its prior outlook, driven by broad-based organic growth across service lines and U.S. regions, while management reaffirmed its full-year revenue and adjusted EBITDA guidance. Revenue for the second quarter totaled $217.7 million, up 23.7% from the prior-year period and above the company’s prior guidance range of $190 million to $205 million. Acquisitions completed during the quarter contributed $5.5 million of revenue, leaving organic revenue growth of 20.6%, according to Chief Financial Officer Neal Livingston.

Chairman and CEO Mark Vorsatz said the company’s approximately 20.5% organic growth rate represented its strongest second-quarter percentage growth rate in the firm’s 24-year history. First-half revenue rose 19.4% to about $458 million, while organic first-half revenue growth was 17.9%.

Business tax services led the quarter’s growth, with revenue rising 36.9% year over year and accounting for 39.2% of total revenue. Andersen’s largest service line, private client services, grew approximately 17%. Livingston said consulting and global mobility revenue also increased year over year as the company continued to invest in those areas. Management attributed growth to a combination of pricing, productivity and higher client activity. Chargeable hours increased 5% in the first half, while revenue per professional increased 16.4%, Vorsatz said. The company’s rate per hour rose 10.1% year over year, and it implemented a rate adjustment in July. Andersen also introduced a 3% tax surcharge for certain client contracts signed beginning in the second quarter.

Andersen added more than 1,300 clients on a gross basis during the first half, a 10.6% increase. However, Vorsatz said net client growth was more modest because certain assignments were completed and the company ended relationships with clients it did not view as sufficiently productive.

The company reported a GAAP net loss of $10.1 million, or $0.08 per basic share and $0.09 per diluted share, in the second quarter. That compared with a $96 million net loss a year earlier. For the first half, Andersen recorded GAAP net income of $7.6 million, compared with a $45.4 million loss in the first half of 2025. On an adjusted basis, second-quarter net income was $39 million, with a 17.9% margin, compared with $28 million and a 16% margin a year earlier. Adjusted EBITDA rose about 55% to $45.9 million, and the adjusted EBITDA margin expanded to 21.1% from 16.9%. Livingston said the margin improvement reflected favorable operating leverage, as revenue growth outpaced operating-cost growth.