Teamshares — Q2 2026 Earnings Summary

Financial Performance

• Q2 2026 revenue was $148.7 million, a 20% year-over-year increase ($25.1 million).
• Net income for Q2 2026 was $9.5 million, a $22.4 million increase year-over-year.
• Adjusted EBITDA for Q2 2026 was $9.6 million, a 166% year-over-year increase ($6.0 million).
• Pro Forma Adjusted EBITDA for Q2 2026 was $9.8 million, a 171% year-over-year increase ($6.2 million).
• LTM Pro Forma Adjusted EBITDA as of June 30, 2026, was $21.2 million.
• LTM Pro Forma Revenue as of June 30, 2026, was $560.0 million.
• Six-month revenue (ended June 30, 2026) was $269.7 million, a 19% year-over-year increase.
• Six-month Net Loss was $13.3 million, compared to a Net Loss of $34.2 million in the prior year period.
• Cash and cash equivalents were $113.4 million as of June 30, 2026, up from $40.2 million as of December 31, 2025.
• Total debt (Short-Term and Long-Term) was $277.9 million as of June 30, 2026, down from $291.5 million as of December 31, 2025.
• Free Cash Flow for the six months ended June 30, 2026, was $(8.7) million.

Guidance and Future Outlook

• Teamshares reaffirmed its 2026 full-year guidance for Pro Forma Adjusted EBITDA of $60 million.
• The 2026 guidance includes $40 million in annual Adjusted EBITDA from business acquisitions.
• As of August 14, 2026, the company has approximately $30 million of annual SME EBITDA under LOI, in addition to acquisitions closed to date, against a $40 million acquired EBITDA target for 2026.
• Management expects the acquisition funnel to provide a comfortable pathway to the 2026 outlook.

Business Segments and Product Lines

• SME Segment Revenue increased 20% in Q2 2026, driven by acquisitions and 3.4% organic growth from existing operating subsidiaries.
• SME Segment Revenue increased 19% in the six months ended June 30, 2026, driven by acquisitions and 4.2% organic growth.
• SME Segment EBITDA increased 47% in Q2 2026, driven by acquisitions; organic growth from existing subsidiaries was 0.4%.
• SME Segment EBITDA increased 54% in the six months ended June 30, 2026, driven by acquisitions and 4.6% organic growth.
• Teamshares closed two acquisitions year-to-date, generating approximately $2.5 million in net income and $2.6 million in Adjusted EBITDA (LTM) prior to closing.
• As of August 14, 2026, Teamshares has executed non-binding LOIs to acquire 10 businesses expected to generate approximately $30 million in annual EBITDA.

Market and Competitive Landscape

• Teamshares operates as a tech-enabled acquiror of high-quality SMEs with $0.5 to $5 million of EBITDA from retiring owners.
• The company operates subsidiaries across over 40 industries and 30 states.
• Management views the Nasdaq listing and equity raise as strengthening the ability to execute a programmatic acquisition strategy with improved access to capital.

Risks and Challenges

• Forward-looking statements involve risks including the ability to realize benefits from the Business Combination, maintain Nasdaq listing, consummate financing transactions, and manage growth effectively.
• Risks include the ability to successfully acquire, integrate, and grow SMEs, and the ability to continue as a going concern.
• Potential risks include unfavorable analyst research, costs of operating as a public company, and the ability to refinance or extend existing credit facilities.

Management Commentary and Tone

• CEO Michael Brown stated the company is building on momentum from the Nasdaq listing and equity raise with a strong pipeline of acquisition opportunities.
• Brown noted that early expansion in financing opportunities since listing has been encouraging and described the current phase as the "first inning" in becoming a permanent home for thousands of companies.
• President Alex Eu stated the acquisition funnel provides a comfortable pathway to the 2026 outlook and that the programmatic acquirer model is working as it scales.
• Management highlighted that corporate expenses decreased by $0.5 million year-over-year despite a 47% increase in SME Segment EBITDA, demonstrating operating leverage.

Other Key Points

• Teamshares began trading on Nasdaq on June 23, 2026, concurrent with a significant equity raise.
• The Business Combination with Live Oak Acquisition Corp. V provided $132.4 million in gross proceeds (excluding forward purchase agreement net impact).
• Teamshares repaid $33.9 million in debt during Q2 2026 and an additional $20.6 million subsequent to the quarter close.
• On August 4, 2026, Teamshares entered a non-binding term sheet for a proposed senior secured warehouse facility to fund acquisition closings.
• The company is evaluating multiple non-binding term sheets from lenders to refinance a significant portion of existing indebtedness.
• Deferred revenue increased to $13.2 million as of June 30, 2026, from $10.1 million as of December 31, 2025.
• Goodwill, net, was $246.8 million as of June 30, 2026.