Andersen Group Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third-quarter revenue increased 18.7% year-over-year to $337.3 million; nine-month revenue rose 19.1% to $795.7 million.
• Consolidated GAAP net income for the third quarter was $68.0 million, compared to $111.1 million in the prior-year period; GAAP net loss attributable to Andersen Group Inc. was $9.0 million ($0.55 per share).
• Nine-month GAAP net income was $75.6 million (9.5% margin), compared to $65.7 million (9.8% margin) in the prior-year period.
• Trailing twelve-month GAAP net loss was $120.3 million, compared to net income of $56.0 million in the prior-year period.
• Third-quarter Adjusted EBITDA increased 18.8% to $154.5 million with a margin of 45.8% (vs. 45.7% prior year); nine-month Adjusted EBITDA rose 27.8% to $277.3 million with a margin of 34.8% (vs. 32.5% prior year).
• Trailing twelve-month Adjusted EBITDA increased 37.5% to $287.4 million with a margin of 29.7%.
• Third-quarter Adjusted Net Income was $115.7 million (down 8.3% year-over-year); nine-month Adjusted Net Income increased 5.9% to $222.0 million.
• Equity-based compensation expense totaled $47.5 million in the third quarter and $141.4 million for the first nine months.
• Operating cash flow for the first nine months was $142.8 million; capital expenditures were $13.7 million.
• Cash and cash equivalents ended the quarter at $193.6 million; net working capital was $301.5 million.
• No borrowings were outstanding under the $50 million revolving credit facility; $287.7 million in subordinated Capital Account Notes and Holdover Notes were outstanding.

Guidance and Future Outlook:

• Introduced full-year 2027 revenue guidance of $1.275 billion to $1.325 billion, representing approximately 30% growth at the midpoint over updated 2026 guidance.
• Provided full-year 2027 Adjusted EBITDA guidance of $320 million to $340 million.
• Management expects integration, cross-selling, and increased operating scale to be key components of the long-term acquisition strategy.

Business Segments and Product Lines:

• Revenue growth occurred across all four service lines: Private Client Services, Business Services, Alternative Investment Funds, and Valuation Services.
• Private Client Services revenue was $177.6 million (52.6% of total) for the quarter and $403.3 million (50.6%) for nine months.
• Business Services revenue was $120.1 million (35.6% of total) for the quarter and $286.2 million (36.0%) for nine months.
• Alternative Investment Funds revenue was $27.9 million (8.3% of total) for the quarter and $70.8 million (8.9%) for nine months.
• Valuation Services revenue was $11.7 million (3.5% of total) for the quarter and $35.5 million (4.5%) for nine months.
• International revenue contribution was $10.7 million (3.2%) for the quarter and $16.2 million (2.0%) for nine months, up from zero in the prior year.
• Client groups served increased to 14,700 (25,400 engagements) in the first nine months, up from 11,900 (21,000 engagements) in the prior year.
• Total employees grew to 2,930 as of September 30, 2026, including 366 Managing Directors; U.S. annualized attrition rate was 15.8%.

Market and Competitive Landscape:

• Revenue growth driven by strong organic expansion, client growth, higher volume, service line expansion, and inorganic growth from acquisitions.
• Eight acquisitions and business combinations completed through September 30, 2026, added approximately $37.2 million in annual acquired revenue at a purchase multiple of 0.67 times annual acquired revenue.
• Acquisitions completed in the third quarter included firms in Canada and Switzerland; prior quarters included firms in Ireland, New Zealand, Nigeria, and Uruguay.
• Definitive agreements signed in the third quarter for acquisitions in Mexico, the United Kingdom, the Netherlands, South Africa, and six U.S. consulting firms; agreements signed in the fourth quarter for an Italian firm.
• November 2026 agreements signed for acquisitions in the U.S., India, Spain, and Poland.
• Andersen maintains relationships with over 400 Andersen Global and Andersen Consulting member and collaborating firms for future expansion opportunities.

Risks and Challenges:

• Forward-looking statements are subject to risks including volatile economic and geopolitical conditions, inability to respond to technological changes, and potential harm from AI development.
• Risks include inability to maintain historical growth, manage future growth, or generate client demand.
• Dependence on the continued services of the CEO, executive team, and key personnel.
• Risks related to recruiting, training, and retaining qualified professionals, cybersecurity incidents, and liability for alleged errors.
• Challenges in identifying, integrating, or managing acquisitions and business combinations.
• GAAP net income fluctuations are influenced by changes in ownership structure, income tax treatment, and equity-based compensation charges associated with post-IPO arrangements.

Management Commentary and Tone:

• Mark L. Vorsatz, Global Chairman and CEO, stated results demonstrate strength in two complementary growth engines: strong organic expansion and disciplined acquisitions.
• Management emphasized building a more valuable global platform by combining specialized expertise and expanding client relationships rather than simply adding revenue.
• The tone reflects confidence in delivering sustained revenue and earnings growth and long-term shareholder value.

Other Key Points:

• Eight completed acquisitions added approximately 388 full-time equivalent employees.
• The company revised its definition of Adjusted Net Income and Adjusted EBITDA in the second quarter of 2026 to exclude all non-cash equity-based compensation, including LTIP Units and restricted stock units.
• No large one-time revenue items contributed to third-quarter performance.
• Andersen operates with 28 offices in the United States as of September 30, 2026.
• The company will host a conference call on November 12, 2026, at 5:00 PM Eastern to review results.