A tax, valuation, and financial advisory firm serving wealthy individuals, businesses, and investment funds through private client, business tax, and valuation services — deliberately avoiding audit work to stay independent. It was founded in 2002 by former partners of the collapsed accounting giant Arthur Andersen, first as a unit of HSBC, then bought out by its own leaders in 2007. In 2014 it bought back the rights to the "Andersen" name, reclaiming the legacy of the firm that once employed its founders.
GAAP operating loss narrowed to $8.9M from $105.2M as a $104.5M one-time equity charge did not recur, while revenue rose 23.7%.
The one-time equity charge that drove last year's loss is gone, and the underlying business grew. rose 23.7% to $217.7 million and swung from negative 28.0% to positive 20.3% as cost of services fell 22.9% without the $104.5 million pre-IPO profits . The company is now generating cash, with $60.6 million in for the quarter, but interest costs are a new fixed burden at $5.9 million.
Key takeaways
rose 23.7% to $217.7 million, with growth across all service lines and $5.5 million from newly closed acquisitions.
Cost of services fell 22.9% to $173.6 million because Q2 2025 included a $104.5 million one-time expense for pre-IPO profits interest units; without that charge, the underlying cost structure is visible.
was 20.3%, compared to negative 28.0% a year ago, as the non-cash equity compensation that inflated costs last year did not repeat.
What changed
The trajectory of , flagged after FY2025, improved sharply: the $114.7 million in IPO-related non-cash equity compensation in cost of services did not recur, and gross margin swung to 20.3% in Q2 2026 from negative 28.0% a year ago.
The four acquisitions in Africa, Latin America, and Canada flagged for Q2 2026 closing: the filing confirms closings in Nigeria and Uruguay, with $5.5 million in inorganic contribution; Canada and other locations are not explicitly noted as closed.
What to watch
Whether the $5.9 million quarterly on promissory notes remains a fixed drag on , and whether principal payments continue to draw down cash.
The pace of integration and contribution from the newly closed acquisitions in Ireland, New Zealand, Nigeria, and Uruguay.
Whether stabilizes around the 20% level or expands further as acquisition-related costs normalize.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue grew 23.7% to $217.7M driven by broad-based client and service line expansion, while operating loss narrowed sharply as prior-year equity compensation costs did not recur.
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increased 23.7% to $217.7M in Q2 2026, with growth across all service lines and $5.5M from inorganic contributions.
Cost of services fell 22.9% to $173.6M, primarily because Q2 2025 included a $104.5M one-time expense for pre-IPO profits interest units.
Operating loss narrowed to $8.9 million from $105.2 million, and the improved to negative 4.1% from negative 59.8%.
rose to $5.9 million from $0.1 million, reflecting promissory notes issued in the IPO and Reorganization Transactions — a new recurring cost.
was $60.6 million, up from $49.0 million a year ago, as the business generated cash despite a net loss of $1.0 million.
The $41.1 million quarterly run-rate of IPO-related non-cash equity compensation flagged in Q1 2026 declined: cost of services fell 22.9% as the one-time profits interest charge did not repeat, though some equity-based compensation continues in .
The collection flagged in Q1 2026 reversed: swung to $69.7 million in Q2 2026 from negative $3.9 million in Q1 2026, restoring cash generation.
Progress on remediating material weaknesses in IT general controls and period-end review controls was not addressed in this filing; the risk factors section refers readers to the 2025 10-K with no update.
Any update on the material weaknesses in IT general controls and period-end review controls, which remain unresolved with no disclosed remediation progress.
SG&A decreased 6.3% to $50.5M, as a $9.5M legal accrual reversal in the prior year was partially offset by lower equity-based compensation in 2026.
surged to $5.9M from $0.1M due to Capital Account Notes and the Holdover Note issued in connection with the IPO and Reorganization Transactions.
was $65.8M for H1 2026, while financing outflows of $133.7M included $48.9M in principal payments on the promissory notes.
The company entered a new $50M and closed acquisitions in Ireland, New Zealand, Nigeria, and Uruguay during the quarter.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes during the period covered by this Quarterly Report on Form 10-Q to the information disclosed in the Quantitative and Qualitative Disclosures About Market Risk section in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condi…
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There have been no material changes during the period covered by this Quarterly Report on Form 10-Q to the information disclosed in the Quantitative and Qualitative Disclosures About Market Risk section in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the Securities and Exchange Commission on March 27, 2026.
We are currently involved in, and may in the future be involved in, actual and threatened legal proceedings, claims, investigations and government inquiries arising in the ordinary course of our business that cover a wide range of matters, including errors and omissions, intelle…
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We are currently involved in, and may in the future be involved in, actual and threatened legal proceedings, claims, investigations and government inquiries arising in the ordinary course of our business that cover a wide range of matters, including errors and omissions, intellectual property, data privacy and data protection, torts, securities, labor and employment and contractual rights.
Although the results of the actual and threatened legal proceedings, claims, investigations and government inquiries in which we currently are involved cannot be predicted with certainty, we do not believe that there is a reasonable possibility that the final outcome of these matters will have a material adverse effect on our business or financial results. Regardless of the outcome, however, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, harm to our reputation and brand and other factors. For additional information on risks relating to litigation, reference Part I, Item 1A "Risk Factors—Risks Related to Our Business, Operations and Industry"—If we were to be held liable for alleged errors, omissions, illegal practices or other misconduct in providing our services to clients, our brand and reputation could be harmed and we could incur significant costs, which may exceed available insurance, if any, and which could harm our business” and "Risk Factors—Risks Related to Our Business, Operations and Industry"—Adverse judgments or settlements in legal disputes could result in monetary damages or injunctive relief that could damage our reputation and materially affect our results of operations” in the 2025 Annual Report on Form 10-K.