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Earnings analysis · 10-Q

ANDG earnings analysis

Filed August 12, 2026 · Our reading of the company's report

The latest report

Andersen delivered strong Q2 revenue growth of 23.7% to $217.7 million and a substantial year-over-year improvement in operating results, although GAAP operating margin remained negative at 4.1% and diluted EPS was…

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Andersen delivered strong Q2 revenue growth of 23.7% to $217.7 million and a substantial year-over-year improvement in operating results, although GAAP operating margin remained negative at 4.1% and diluted EPS was negative $0.09. Six-month operating income turned positive and operating cash flow reached $65.8 million, but cash fell by $74.6 million during the period as the company paid $48.9 million of debt principal and $83.6 million of distributions. The outlook is operationally constructive, supported by broad service-line growth and acquisitions, but elevated debt, receivables growth, unresolved material weaknesses and ongoing acquisition activity warrant caution.

Read the original on SEC.gov

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $80 Operating expenses $24 Left as operating profit $-4

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

Where revenue came from

The business segments reported by the company.

Single reportable segment 50.0% Private Client Services 23.5% Business Tax Services 19.6% Alternative Investment Funds 4.1% Valuation Services 2.8%

Shares of the segments disclosed in this filing, largest first.

Reported figures

Earnings per share
$-0.09

What stood out

  • Revenue growth remained strong

    Second-quarter revenue increased 23.7% year over year to $217.658 million from $175.991 million, driven by client additions, higher volume, service-line expansion and $5.5 million of inorganic growth.

  • Operating profitability turned positive

    Six-month operating income improved to $15.158 million from an operating loss of $52.520 million, with operating margin rising to 3.3% from negative 13.7%.

  • Adjusted profitability expanded

    Q2 adjusted EBITDA increased to $45.960 million, and adjusted EBITDA margin expanded to 21.1% from 16.9%; adjusted net income was $39.002 million versus $28.105 million.

  • Growth was broad-based

    All four service lines grew year over year: Business Tax Services rose to $85.392 million from $62.397 million, while Private Client Services increased to $102.452 million from $87.630 million.

  • Operating cash flow exceeded capex

    Operating cash flow increased 6.4% to $65.815 million from $61.875 million. Capital spending totaled $12.764 million for property and equipment plus $0.395 million for internal-use software.

  • Liquidity remained substantial

    Working capital increased to $220.0 million from $216.2 million at December 31, 2025, and the company had $175.631 million of cash plus $2.070 million of current Treasury securities at June 30, 2026.

What to watch

  • GAAP loss and higher interest burden

    The company reported a Q2 net loss of $10.094 million and diluted loss per share of $0.09. Interest expense increased to $5.887 million from $0.104 million, primarily due to the Capital Account Notes and Holdover Note.

  • Cash declined against sizable debt

    Cash declined to $175.631 million from $250.280 million at December 31, 2025, while aggregate principal on the Capital Account Notes and Holdover Note was $301.234 million; six-month principal payments were $48.925 million.

  • Receivables and credit-loss exposure increased

    Accounts receivable increased to $189.371 million from $123.418 million, while the allowance for credit losses rose to $3.977 million from $1.676 million, creating working-capital and collection risk.

  • Material weaknesses remain unresolved

    Management stated that disclosure controls and procedures were not effective as of June 30, 2026 because the material weaknesses reported in the 2025 Form 10-K continued to exist.

  • Acquisition execution and integration risk

    The company completed acquisitions with aggregate purchase consideration of $12.193 million, including $6.421 million of deferred consideration, and expects eight additional acquisitions to close in the fourth quarter of 2026, subject to conditions.

Management's outlook

The 10-Q does not provide numeric revenue or EPS guidance. Management provides forward-looking acquisition commentary, including eight additional acquisitions expected to close in the fourth quarter of 2026, subject to closing conditions; prior outlook was addressed in the earnings release and call.

Earlier filings 1

10-Q · May 12, 2026

Andersen Group Inc. reported strong Q1 2026 results with revenue reaching $240.7 million, a 15.7% increase from the previous year, largely due to expanded client engagement and service line growth. However, EPS was just…

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.