Andersen Group Q2 2026 Earnings: Revenue Rises 23.7% as Adjusted Margins Expand

Andersen Group (NYSE: ANDG) reported Q2 2026 revenue of $217.7 million, up 23.7% from $176.0 million a year earlier, while its GAAP diluted loss per share was $0.09. The net loss narrowed to $10.1 million from $96.0 million as equity-based compensation declined, while adjusted net income and adjusted EBITDA grew faster than revenue. Every service line contributed to growth, with Business Tax Services gaining the most revenue mix share.

Core earnings data

Andersen’s adjusted profitability improved alongside revenue growth. Adjusted net income rose 38.8%, adjusted EBITDA increased approximately 54.9%, and both corresponding margins expanded.

GAAP results remained negative, but the loss narrowed by $85.9 million. Most of that improvement reflected the decline in non-cash equity-based compensation to $48.3 million from $129.6 million.

Andersen revised its definitions of adjusted net income and adjusted EBITDA during the quarter to exclude all non-cash equity-based compensation. Comparative periods were conformed to the revised presentation, and the company said the effect on previously disclosed figures was not material.

Business and service-line performance

All four service lines generated year-over-year revenue growth, although their contributions to total revenue shifted. Business Tax Services increased its share by 3.7 percentage points, while Private Client Services remained the largest business despite representing a smaller portion of the total.

The lower mix shares for three service lines do not indicate revenue declines, as Andersen stated that each business grew during the quarter. Instead, the figures show that Business Tax Services expanded faster relative to the other operations.

International operations contributed 2.5% of quarterly revenue, compared with no contribution a year earlier, following acquisitions outside the United States. For the first six months of 2026, client groups increased to 13,500 from 11,300, while client engagements rose to 23,800 from 20,600.

Lower stock compensation narrowed the GAAP loss while adjusted margins expanded

The main difference between Andersen’s GAAP and adjusted results was equity-based compensation. Approximately $48.3 million of equity compensation and $0.9 million of transaction costs were excluded from adjusted net income, turning the reported $10.1 million loss into adjusted net income of $39.0 million.

The $81.3 million year-over-year decline in equity compensation accounted for most of the $85.9 million improvement in GAAP net income. At the same time, adjusted EBITDA margin rose to 21.1% from 16.9%, indicating improved underlying profitability after the company’s specified adjustments.

Equity compensation nevertheless remained larger than adjusted net income, making its future level important to the company’s anticipated return to full-year GAAP profitability. Interest expense was another pressure, rising to $5.9 million from $0.1 million in the prior-year quarter.

Full-year 2026 guidance

Andersen reaffirmed its full-year outlook rather than changing its revenue or adjusted profitability targets. Management also continues to anticipate a return to full-year net income and positive EPS, although it did not provide quantified GAAP earnings guidance.

After first-half revenue of $458.4 million, the full-year range implies approximately $521.6 million to $541.6 million of second-half revenue. First-half adjusted EBITDA was $122.8 million, leaving approximately $102.2 million to $127.2 million needed in the second half to reach the guidance range.

Management priorities and acquisition pipeline

Management attributed revenue growth to new clients, higher volumes, and service-line expansion. Andersen plans to continue investing in talent, technology, automation, and artificial intelligence while integrating recently acquired firms.

During Q2, the company completed acquisitions involving firms in Ireland, New Zealand, Nigeria, and Uruguay. It subsequently closed transactions in Switzerland and Canada and signed agreements to acquire firms in Mexico and the United Kingdom, along with six U.S. consulting firms. Those eight signed acquisitions are expected to close in Q4 2026, subject to closing conditions.

The company did not quantify how much of quarterly revenue growth came from acquisitions rather than existing operations. That distinction will become increasingly relevant as the international and consulting businesses expand.

Recent insider transactions

The supplied six-month insider data shows one purchase and one sale, resulting in net sales of 334,369 shares. The transactions are presented objectively and do not by themselves establish insiders’ views about Andersen’s prospects.

Risks investors should monitor

• GAAP profitability remains sensitive to equity compensation. The expense fell sharply but still totaled $48.3 million, leaving Andersen with a quarterly GAAP net loss despite positive adjusted earnings.
• Higher interest expense could weigh on reported earnings. Quarterly interest expense increased to $5.9 million from $0.1 million, and the company did not provide a reason for the change in the supplied results.
• The acquisition pipeline increases execution demands. Andersen must integrate firms across several countries and service categories, while the contribution of acquisitions to current revenue growth has not been quantified.
• Personnel costs and retention remain important. Compensation is the company’s largest operating expense, total employees rose to 2,690 from 2,220 a year earlier, and annualized U.S. attrition increased to 15.7% from 14.2% at the end of 2025.
• Revenue is seasonal. Andersen said its busiest periods generally align with U.S. tax deadlines, particularly in the first and third quarters, which can create fluctuations in revenue and workload between periods.

Summary

Andersen’s Q2 2026 results combined broad-based revenue growth with expanding adjusted margins, while substantially lower equity compensation narrowed the GAAP loss. Business Tax Services gained revenue mix share, international acquisitions began contributing, and the full-year outlook was reaffirmed. The main items to monitor are the path to GAAP profitability, acquisition integration, personnel costs, and the balance between organic and acquired growth.