Skip to content
Optionomics Free · No account needed

Earnings analysis · 10-Q

ITG earnings analysis

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

The latest report

ITG delivered strong second-quarter revenue growth of 38.4% to $404.6 million, supported by acquisitions, organic volume growth and geographic expansion, while NTM backlog increased to $1,516.970 million. However, gross…

Read full summary

ITG delivered strong second-quarter revenue growth of 38.4% to $404.6 million, supported by acquisitions, organic volume growth and geographic expansion, while NTM backlog increased to $1,516.970 million. However, gross margin declined to approximately 17.8%, operating margin to approximately 5.6%, and net income fell 84.6% to $1.788 million as operating costs and interest expense grew faster than revenue. Liquidity is a concern: six-month operating cash flow was negative $47.042 million, cash was $2.5 million, and borrowings totaled $651.8 million under the Credit Agreement plus $112.0 million on the revolver.

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 $82 Operating expenses $12 Left as operating profit $6

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

Reported figures

Earnings per share
$0.01

What stood out

  • Revenue grew 38.4% year over year

    Second-quarter revenue increased 38.4% year over year to $404.6 million from $292.4 million. Excluding $101.3 million of acquired revenue, organic revenue increased $14.5 million due to volume growth and geographic expansion across both service lines.

  • Adjusted EBITDA and FCF improved

    Adjusted EBITDA increased to $52.194 million from $43.348 million, while free cash flow rose to $44.754 million from $27.185 million. Free cash flow conversion improved to 85.7% from 62.7%.

  • Backlog increased approximately 14%

    NTM backlog reached $1,516.970 million as of June 30, 2026, compared with $1,330.664 million at December 31, 2025, an increase of approximately 14.0%.

  • Lower capex reduced investing cash use

    Capital expenditures declined to $15.969 million in the first six months from $28.627 million in the prior-year period. Six-month investing cash use consequently declined to $18.184 million from $35.836 million.

  • IPO proceeds targeted debt reduction

    The company completed its IPO on July 2, 2026, issuing 22,439,025 Class A shares at $16.00 per share and receiving $323.4 million net of underwriting discounts, commissions and offering expenses, primarily to repay debt.

What to watch

  • Margin compression despite strong growth

    Second-quarter gross margin declined to approximately 17.8% from 18.9% as cost of revenue rose to 82.2% of revenue from 81.1%. Operating margin also fell to approximately 5.6%, with total operating costs increasing 43.1% to $382.036 million.

  • Operating cash flow turned negative

    Six-month net cash used in operating activities was $47.042 million versus $11.745 million of cash provided in the prior-year period. Working-capital changes used $92.0 million, including an $87.7 million increase in contract assets.

  • Higher interest expense pressured earnings

    Interest expense increased 182.3% year over year to $19.534 million in the second quarter from $6.919 million, contributing to net income falling 84.6% to $1.788 million from $11.601 million.

  • High leverage and limited cash balance

    As of June 30, 2026, the company had $651.8 million of outstanding borrowings under its Credit Agreement and $112.0 million drawn on its revolver, against only $2.5 million of cash. Revolver availability was approximately $64.2 million, with $8.8 million of letters of credit outstanding.

  • Customer concentration remains elevated

    The two largest customers represented approximately 53% of second-quarter revenue, including Comcast at 33% and Charter at 20%. The company also states that many customer agreements may be terminated for convenience.

  • Backlog may not convert to revenue

    The $1,516.970 million NTM backlog is not a firm minimum commitment: the company states that many MSAs are cancelable on short or no advance notice and that customers are not required to purchase minimum service amounts.

Management's outlook

The 10-Q does not provide explicit numeric revenue or EPS guidance. It reports NTM backlog of $1,516.970 million as of June 30, 2026, up from $1,330.664 million at December 31, 2025; initial FY2026 guidance was disclosed separately in the August 12, 2026 earnings release.

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