Andersen's Second-Quarter Revenue Growth Accelerates
Second-quarter revenue reached a record $217.7 million, up 23.7% from a year earlier, as adjusted net income rose 38.8% to $39.0 million.
Andersen Group Inc. (ANDG), the independent tax and financial advisory firm, reported second-quarter revenue of $217.7 million, up 23.7% from $176.0 million a year earlier, a faster pace than the 15.7% year-over-year increase in the first quarter.
The San Francisco-based company said the acceleration continued a multi-year run of double-digit growth and was fueled by client additions, higher volumes and service-line expansion, with every service line posting revenue growth in the quarter and no reliance on one-time items. For the six months ended June 30, 2026, revenue reached $458.4 million, up 19.4% from $384.1 million a year earlier.
Adjusted net income rose to $39.0 million in the second quarter, up 38.8% from $28.1 million a year earlier, faster than the revenue increase. Adjusted net income margin expanded to 17.9% from 16.0%. Adjusted EBITDA was $46.0 million, with an adjusted EBITDA margin of 21.1%. Management said the adjusted figures are the clearer signal of underlying momentum and that equity-based compensation is expected to continue moderating as a percentage of revenue.
Reported results still showed a net loss of $10.1 million, or $0.08 basic and $0.09 diluted per share, versus a $96.0 million net loss a year earlier. Equity-based compensation expense fell to $48.3 million in the second quarter from $129.6 million a year earlier. The company revised its definitions of Adjusted Net Income and Adjusted EBITDA in the second quarter to include all non-cash equity-based compensation and said the impact on previously disclosed figures was not material.
Business Tax Services rose to 39.2% of second-quarter revenue from 35.5% a year earlier. Private Client Services declined to 47.1% from 49.8%. Alternative Investment Funds were 8.1% of sales and Valuation Services 5.6%. The company said the mix has largely remained stable over the past five years.
International sales appeared for the first time at 2.5% of second-quarter revenue after the company closed tax and consulting acquisitions in Ireland, New Zealand, Nigeria and Uruguay. U.S. West contributed 41.1% of sales, East 39.1% and Central 17.3%. In the third quarter of 2026, Andersen closed a Swiss tax-firm acquisition and a Canadian business combination and signed definitive agreements for a Mexican tax-and-legal firm, a U.K. tax firm and six U.S. consulting firms, expected to close in the fourth quarter.
Total employees increased to 2,690 as of June 30, 2026 from 2,220 a year earlier, including 349 managing directors. U.S. attrition rose to 15.7% from 14.2% as of December 31, 2025. For the six months ended June 30, 2026, client groups stood at 13,500 and client engagements at 23,800.
The company reaffirmed full-year 2026 revenue guidance of approximately $980 million to $1 billion, equating to about 18% growth, and Adjusted EBITDA of $225 million to $250 million with margins of 23% to 25%. That May range had already been raised from the March 2026 guide of $955 million to $970 million. Andersen said 2026 will reflect continued investment in talent, technology, automation and AI and the integration of newly acquired firms, positioning the company for an anticipated return to full-year net income and positive EPS.
Cash and cash equivalents were $175.6 million as of June 30, 2026, with $2.1 million in treasury securities. Global Chairman and CEO Mark Vorsatz said revenue grew 23.7% in the quarter, every service line contributed, and adjusted net income grew faster than revenue.