Latest quarter
Andersen reported Q2 FY2026 revenue of $217.7 million, above the consensus estimate of $203.0 million and up 23.7% from $176.0 million a year earlier. The company reported diluted EPS of −$0.09.
Andersen’s filing said revenue grew across all service lines, supported by client additions, higher volume and service line expansion. Acquisitions contributed $5.5 million to the quarterly revenue increase. The filing also said cost of services fell partly because the year-earlier quarter included a $104.5 million one-time expense related to pre-IPO profits interest units; the latest quarter included $41.2 million in non-cash equity-based compensation.
Andersen reported gross margin of 20.3%, compared with −28.0% a year earlier, and operating margin of −4.10%, compared with −59.8%. The company reported quarterly free cash flow of $60.4 million, compared with $48.8 million a year earlier.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $217.7 million | $176.0 million | 23.7% |
| Diluted EPS | −$0.09 | — | — |
| Gross margin | 20.3% | −28.0% | 48.2 percentage points |
| Operating margin | −4.10% | −59.8% | 55.7 percentage points |
| Free cash flow | $60.4 million | $48.8 million | 23.7% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Revenue | $217.7 million | $203.0 million | Beat by 7.21% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
Andersen’s filing said its busiest periods typically align with U.S. tax filing deadlines, which have historically increased billable hours and revenue in the first and third quarters.
Guidance
Andersen expects FY2026 revenue of approximately $980.0 million to $1.0 billion and adjusted EBITDA of approximately $225.0 million to $250.0 million. The company also anticipates a return to full-year net income and positive EPS.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Net income | FY2026 | Andersen Group anticipates a return to net income in FY2026. | — | — |
| EBITDA, non-GAAP | FY2026 | $225.0 million–$250.0 million | — | New |
| Revenue | FY2026 | $980.0 million–$1.0 billion | — | New |