Andersen Raises Third-Quarter Revenue 18.7% to $337.3 Million
Key Facts
Andersen Group raised revenue in the third quarter ended September 30, 2026, by 18.7% year over year to $337.3 million, compared with $284.3 million in the same period of 2025, according to its official results statement. Chief Executive Mark Vorsatz said the results show the strength of the company's two growth engines: “strong organic expansion and disciplined acquisitions.” Revenue growth came alongside an increase in adjusted earnings before interest, taxes, depreciation and amortization. Net income measures, however, declined, presenting a mixed picture of financial performance for the quarter. The company had scheduled the results announcement for after the market close on November 12, 2026.
Adjusted earnings before interest, taxes, depreciation and amortization rose 18.8% to $154.5 million, with a margin of 45.8%, compared with 45.7% in the year-earlier period. By contrast, consolidated net income under U.S. generally accepted accounting principles fell to $68.0 million from $111.1 million a year earlier. Adjusted net income also declined 8.3% to $115.7 million from $126.2 million. The company attributed the decrease in this adjusted measure to higher income tax and interest expenses following the reorganization. The measures show expanding activity and revenue alongside pressure on net earnings during the period.
Net loss attributable to Andersen Group was $9.0 million, or $0.55 per Class A common share, according to the company statement. It said this reflected the allocation of earnings to noncontrolling interests, as well as the financial effects of the initial public offering and reorganization in December 2025. Stock-based compensation expense rose to $47.5 million in the quarter from $6.9 million a year earlier; the company excludes these noncash expenses from its adjusted measures. Interest expense was also about $5.7 million, compared with $20,000 in the year-earlier quarter. The report linked the increase to capital account bonds and a rollover note arising from the IPO and reorganization.
Andersen said revenue growth during 2026 came from continued demand in its core markets, an increase in the number of clients and the volume of work, expansion of its service lines, and contributions from acquisitions completed in the second and third quarters. It added that all service lines posted annual growth and that there was no significant one-time revenue during 2026. In the nine months ended September, the number of client groups rose to about 14,700 from 11,900 a year earlier, while engagements increased to 25,400 from 21,000. Nine-month revenue reached $795.7 million, up 19.1% from $668.3 million in the corresponding period of 2025. These figures provide broader context for quarterly growth, with the client base and number of engagements expanding during the year.
The company ended the third quarter on September 30 with $193.6 million in unrestricted cash and recorded $142.8 million in operating cash flow during the first nine months of 2026. Andersen issued 2027 revenue guidance of between $1.275 billion and $1.325 billion, and adjusted earnings before interest, taxes, depreciation and amortization of between $320 million and $340 million. On November 10, 2026, the company signed definitive agreements for five acquisitions in the United States, India, Spain and Poland, which it expects to complete in the first quarter of 2027, subject to closing conditions. The five deals represent estimated annual revenue of about $38.1 million and bring the company's 2026 signed acquisition program to 24 deals with combined annual revenue of about $228 million. Chairman and Chief Executive Mark Vorsatz and Chief Financial Officer Neil Livingston are scheduled to discuss the results on an investor call on November 12 at 5:00 p.m. Eastern time.