ITG earnings analysis
What we found in ITG's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.01
- Gross margin
- 17.8%
- Operating margin
- 5.6%
What they said about what is next.
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.
The filing reads worse than the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing ITG makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever