ANDG · Andersen

Andersen’s Q1 2026 results reflect robust organic growth across all four service lines—Private Client Services (51.2% of revenue), Business Tax Services (33.5%), Alternative Investment Funds (10.4%), and Valuation Services (4.9%)—with stable revenue mix and a 2% increase in client engagements to 18,970. The 15.7% revenue growth was driven by client expansion, higher volume, and service line diversification—not one-time items. However, GAAP net income declined sharply to $17.7 million from $50.6 million YoY due to $41.1 million in non-cash equity-based compensation tied to Class X Aggregator Units vesting—a planned, non-recurring cost associated with the IPO reorganization. Adjusted metrics tell a stronger story: Adjusted Net Income rose 13.8% to $62.9 million, and Adjusted EBITDA grew 26.5% to $72.3 million, lifting Adjusted EBITDA margin to 30.0% from 27.5%, signaling improved operating efficiency amid continued investment. Management explicitly attributes momentum to its integrated global platform and cross-border delivery capability. The updated full-year guidance—$980–$1,000 million revenue (≈18% growth) and $225–$250 million Adjusted EBITDA—incorporates $55 million of inorganic revenue, validating an active acquisition strategy. Recent closings in Ireland, New Zealand, Nigeria, and Uruguay—and pending deals in Switzerland and Canada—expand geographic reach and service depth across high-growth markets. CEO Mark Vorsatz emphasized consistent organic growth and scalable execution, reinforcing confidence in the firm’s multi-dimensional advisory model and long-term margin expansion trajectory.