Andersen Group Inc (ANDG)

Andersen Reports Strong First-Quarter of 2026 Financial Results and Updates Full-Year GuidanceMay 12, 2026 4:15 PM
Business Wire Andersen Group Inc. (NYSE: ANDG) today released financial results for the first quarter ended March 31, 2026. Andersen continued to deliver strong top-line growth with first-quarter revenue of $240.7 million up 15.7%, compared with $208.1 million in the prior year quarter. Higher revenue in the first quarter of 2026 was supported by client growth, higher volume and service line expansion. There were no large one-time first-quarter 2026 revenue items, and all of our service lines grew revenue in the first quarter of 2026. Higher equity-based compensation expenses of $41.1 million led to net income of $17.7 million in the first-quarter of 2026 compared with $50.6 million in the prior year quarter. Adjusted net income for the first-quarter of 2026 was $62.9 million as compared with $55.2 million in the prior year quarter. First Quarter 2026: Andersen delivered a strong first quarter, driven by demand across core services, with consistent revenue growth in the Tax practice and accelerating momentum in Andersen Consulting. First-Quarter 2026 Revenue: $240.7 million, up 15.7% compared with $208.1 million in first-quarter 2025. First-Quarter 2026 Earnings per share (EPS) basic were $0.04 and EPS diluted were $0.03. Second-Quarter 2026 Guidance: Revenue expected to be in the range of approximately $190 million to $205 million, equating to a growth rate of approximately 13%, with a projected net loss and negative EPS due to seasonality. Updated 2026 Full-Year Guidance: Revenue expected to be in the range of approximately $980 million to $1 billion, equating to a growth rate of approximately 18%, including inorganic revenue of approximately $55 million; Adjusted EBITDA projected in the range of approximately $225 million to $250 million with Adjusted EBITDA margins in the range of approximately 23% to 25%. Strategic Investment Focus: 2026 will reflect continued investment in talent, technology, automation, AI, and integration of firms to be acquired during the year, resulting in an anticipated positive net income and EPS for the full year. Long-Term Growth: Positioned for sustained revenue growth and expanding margins, supported by a large addressable market, strong competitive positioning, scalable operating model, and selective inorganic expansion. Commitment to Shareholder Value: Maintaining flexibility to deploy capital strategically to strengthen and expand the multi-dimensional platform, and enhance long-term shareholder value. Mark L. Vorsatz, Global Chairman and CEO of Andersen, said: “Our first-quarter results reflect the strength of our platform and the momentum across the business,” said Mark Vorsatz, Global Chairman and CEO of Andersen. “We are generating consistent, organic growth throughout all service lines, supported by our integrated global platform and our ability to deliver coordinated, cross-border solutions.” Recent Developments—Inorganic Growth Opportunities Andersen’s relationships with over 400 Andersen Global and Andersen Consulting member and collaborating firms provide opportunities for domestic and international expansion through closer partnerships and, future acquisitions and business combinations. In May 2026, the Company announced it closed the acquisition of tax firms in Ireland and New Zealand, a tax firm and a consulting firm in Nigeria, and a tax firm and a law firm in Uruguay, expanding its presence across key developed and high-growth markets as it continues to scale its global platform. In addition, Andersen signed agreements for the acquisition of a tax firm in Switzerland and a business combination in Canada, both expected to close in the third quarter of 2026. Key Financial and Operational Metrics We monitor the following key financial and business metrics to evaluate our business, measure our performance and make strategic decisions:   Three Months Ended March 31, 2026   2025 Revenue:       Revenue (in thousands) $ 240,746   $ 208,067 Clients:       Client groups   10,870     10,500 Client engagements   18,970     18,600 People Metrics:       Employees   2,271     2,209 Components of Revenue We generate our revenue from providing tax and financial advisory services to our clients. During the three months ended March 31, 2026 and 2025, the substantial majority of our revenue was generated on a time and materials basis and, to a lesser extent, on a fixed fee basis and contingent fee basis. In the future, our revenue and profitability could vary materially depending on changes in the nature of services provided, as well as the stage of performance at which the right to receive fees is finally determined. We provide services in four primary areas: Private Client Services. We provide comprehensive tax and financial services for individuals and families, addressing complex client matters such as multigenerational wealth, charitable giving and trust and estate planning. Business Tax Services. We offer a broad range of scalable, integrated tax-related consulting and compliance services for businesses, helping organizations with managing their tax planning, compliance and reporting needs. Alternative Investment Funds. We deliver comprehensive tax and financial-related services for alternative investment funds, including family offices, funds of funds, hedge funds, private equity funds, venture capital funds and real estate investment trusts. Valuation Services. We provide clients with independent valuation expertise that helps clients navigate tax laws and regulations and comply with regulatory requirements. During the three months ended March 31, 2026, our revenue increased by 15.7% to $240.7 million from $208.1 million during the three months ended March 31, 2025. Revenue consists of professional services revenue and reimbursable expenses, which primarily include travel and out-of-pocket costs that are billable to clients. Our busiest periods typically align with U.S. tax filing deadlines, particularly the months leading up to April 15th for individual and corporate tax filings and the extension deadlines in October. During these peak times, we typically experience a substantial increase in client engagements and workload, which has historically driven an increase in billable hours and revenue in the first and third quarters of the year. Revenue by Service Line We have built a multidimensional independent advisory firm with the ability to provide differentiated services across tax and financial services to address our clients’ most complex challenges. This is reflected in the revenue contribution of our services lines:   Three Months Ended March 31,   2026   2025 Private Client Services 51.2 %   50.1 % Business Tax Services 33.5 %   34.4 % Alternative Investment Funds 10.4 %   10.7 % Valuation Services 4.9 %   4.8 % The percentage of revenue by service line has largely remained stable over the past five years. Revenue by Geographic Region Since our founding, we have expanded our geographic reach across the United States, serving clients from 27 offices as of March 31, 2026. While our offices are primarily situated in major metropolitan areas, our expansive presence across the United States allows us to adapt to regional market fluctuations and capitalize on localized opportunities. Geographic revenue contribution is derived from the assigned office of each employee working on an engagement. This regional allocation typically aligns with the region in which the client is located, but in some cases, the client may be in a region different from the location of the office or employees. Revenue by U.S. region was:   Three Months Ended March 31,   2026   2025 East 42.1 %   39.8 % Central 16.4 %   17.0 % West 41.5 %   43.2 % Clients Client groups will often comprise multiple client engagements with different entities or individuals, such as multiple subsidiaries of an entity, multiple principals within a single private equity fund or multiple individuals or trusts within a single wealthy family. Across our client groups, we had over 18,970 client engagements during the three months ended March 31, 2026, representing an increase of approximately 2% from the over 18,600 client engagements we served during the three months ended March 31, 2025. Our clients are distributed across a substantial number of individuals, wealthy families and trusts and business enterprises within a wide range of industries, including financial services, consumer products, healthcare, hospitality, manufacturing, pharmaceutical and biotech, private equity, real estate, technology and venture capital. By serving a diverse range of clients across a diverse range of industries, we believe we can capitalize on growth opportunities in expanding sectors while offsetting potential slowdowns in others. People Metrics Compensation represents the largest portion of our operating expenses. As a result, we monitor our total number of employees and growth in employees:   Three Months Ended March 31,   2026   2025 Managing Directors 323   312 Non-Managing Directors 1,948   1,897 Total Employees 2,271   2,209 Our workforce, which excludes temporary staff, consists of predominantly client serving professionals, and grew to 2,271 total employees as of March 31, 2026. During the three months ended March 31, 2026, attrition, excluding involuntary terminations, increased by 1.5% to 15.7% from 14.2% during the three months ended March 31, 2025. As of March 31, 2026, our workforce had a balanced distribution of tenure, reflecting a blend of experienced professionals and newer talent. Our 2,271 total employees included 323 Managing Directors as of March 31, 2026. Non-GAAP Financial Measures The following table summarizes the Non-GAAP Financial Measures (along with the most directly comparable GAAP measures) for the periods indicated:   Three Months Ended March 31,     2026       2025     ($ in thousands) Net Income $ 17,738     $ 50,576   Adjusted Net Income(1)   62,858       55,228   EBITDA(1)   27,180       55,744   Adjusted EBITDA(1)   72,300       57,177   Revenue   240,746       208,067   Net Income Margin   7.4 %     24.3 % Adjusted Net Income Margin(1)   26.1 %     26.5 % Adjusted EBITDA Margin(1)   30.0 %     27.5 % (1) These are non-GAAP financial measures. See below for a reconciliation to the most directly comparable GAAP financial measure. Adjusted Net Income and Adjusted Net Income Margin We define Adjusted Net Income as net income plus expenses related to transaction activities, including costs related to planned mergers, acquisitions, and business combinations, non-recurring equity and non-cash equity-based compensation expense associated with equity interests that were issued in anticipation of, and in connection with, the initial public offering (IPO). We define Adjusted Net Income Margin as Adjusted Net Income divided by revenue. We believe Adjusted Net Income and Adjusted Net Income Margin enhance an investor’s understanding of our financial and operating performance because they exclude transaction-related costs allowing for greater transparency into what measures we use in operating our business and measuring our performance. In addition, these measures enable comparison of financial trends and results between periods. The following table reflects the reconciliation of net income to Adjusted Net Income and Adjusted Net Income Margin for each of the periods indicated:   Three Months Ended March 31,     2026       2025     ($ in thousands) Net Income $ 17,738     $ 50,576   Transaction costs(1)   4,049       1,433   Equity-based compensation associated with vesting of Class X Aggregator Units(2)   41,071       —   Income tax effect of adjustments   —       3,219   Adjusted Net Income $ 62,858     $ 55,228   Revenue $ 240,746     $ 208,067   Net Income Margin   7.4 %     24.3 % Adjusted Net Income Margin   26.1 %     26.5 % (1) Transaction costs include certain legal, accounting and consulting costs incurred related to planned mergers, acquisitions, and business combinations during the three months ended March 31, 2026 and certain legal, accounting and consulting costs incurred for public company readiness not eligible for capitalization and related to the planned restructuring during the three months ended March 31, 2025. (2) Equity-based compensation expense associated with the vesting of Class X Aggregator Units consists of non-cash expenses associated with the vesting of Class X Aggregator Units, which were part of the Reorganization Transactions. We recognized $37.5 million of non-cash equity-based compensation expense associated with Class X Aggregator Units in cost of services and $3.6 million in sales, general and administrative expense during the three months ended March 31, 2026. EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin We define EBITDA as net income plus income tax expense, interest expense, and depreciation and amortization less interest income. We define Adjusted EBITDA as EBITDA with adjustments to exclude results from expenses related to transaction activities, including costs related to planned mergers, acquisitions, and business combinations, non-recurring equity restructuring costs and non-cash equity-based compensation expense associated with equity interests that were issued in anticipation of, and in connection with, the IPO. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue. The following table is a reconciliation of net income to EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin for each of the periods indicated:   Three Months Ended March 31,     2026       2025     ($ in thousands) Net Income $ 17,738     $ 50,576   Interest income   (1,879 )     (1,200 ) Interest expense   6,234       143   Depreciation and amortization   2,274       2,095   Income tax expense   2,813       4,130   EBITDA   27,180       55,744   Transaction costs(1)   4,049       1,433   Equity-based compensation associated with vesting of Class X Aggregator Units(2)   41,071       —   Adjusted EBITDA $ 72,300     $ 57,177   Revenue $ 240,746     $ 208,067   Net Income Margin   7.4 %     24.3 % Adjusted EBITDA Margin   30.0 %     27.5 % (1) Transaction costs include certain legal, accounting and consulting costs incurred related to planned mergers, acquisitions and business combinations during the three months ended March 31, 2026 and certain legal, accounting and consulting costs incurred for public company readiness not eligible for capitalization and related to the planned restructuring during the three months ended March 31, 2025. (2) Equity-based compensation expense associated with the vesting of Class X Aggregator Units consists of non-cash expenses associated with the vesting of Class X Aggregator Units, which were part of the Reorganization Transactions. We recognized $37.5 million of non-cash equity-based compensation expense associated with Class X Aggregator Units in cost of services and $3.6 million in sales, general and administrative expense during the three months ended March 31, 2026. Non-GAAP Financial Measures We use certain non-GAAP financial measures to supplement our financial measures prepared in accordance with accounting principles generally accepted in the United States (GAAP), which include EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Net Income Margin (collectively, "Non-GAAP Financial Measures"). We believe that the Non-GAAP Financial Measures, when taken collectively, may be helpful to investors because they provide consistency and comparability with past financial performance. We also believe that the Non-GAAP Financial Measures can enhance an investor’s understanding of our financial and operating performance from period to period, because they exclude certain items relating to income tax expense, interest, depreciation and amortization, equity-based compensation, restructuring costs and transaction costs which are not necessarily reflective of our ongoing operations and performance. However, the Non-GAAP Financial Measures are presented for supplemental informational purposes only, have limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of the limitations of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin include that they exclude certain tax payments that may reduce cash available to us, do not reflect any cash capital expenditure requirements for the assets being depreciated and amortized that may have to be replaced in the future, and do not reflect changes in, or cash requirements for, our working capital needs. Some of the limitations of Adjusted Net Income and Adjusted Net Income Margin include that they exclude the impact of expenses related to transaction activities, certain equity restructuring expenses and certain components of equity-based compensation. Other companies, including companies in the professional services industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, any of which could reduce the usefulness of our Non-GAAP Financial Measures as tools for comparison. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these Non-GAAP Financial Measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business. Additionally, we have relied upon the exception in Item 10(e)(1)(i)(B) of Regulation S-K and have not reconciled forward-looking Adjusted EBITDA or forward-looking Adjusted EBITDA Margin to its most directly comparable U.S. GAAP measure, net income or loss and net income or loss margin, respectively, because we cannot predict with reasonable certainty the ultimate outcome of certain components of such reconciliations, including market-related assumptions and interest rate changes that are not within our control, or others that may arise, without unreasonable effort. For these reasons, we are unable to assess the probable significance of the unavailable information, which could materially impact the amount of future net income or loss. Liquidity and Capital Resources Historically, we have generated sufficient cash to fund our operations, capital expenditures and discretionary funding needs through cash generated from our operating activities. As of March 31, 2026, cash and cash equivalents were $206.8 million and investments in treasury securities were $5.1 million. First Quarter 2026 Conference Call Andersen Group Inc. will host a conference call for analysts and investors to review financial results for the first quarter of 2026 on Tuesday, May 12, 2026 at 5:00 PM Eastern. The call can be accessed live at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=W1rCDWjj and will be available for replay over the internet for six months by logging onto the Company’s investor relations website at https://investor.andersen.com. About Andersen Andersen is a leading provider of independent tax, valuation and financial advisory services to individuals, family offices, businesses and alternative investment funds in the United States. Andersen’s differentiated approach to client service is rooted in core values that emphasize stewardship, transparency and the seamless delivery of independent, high-quality service. Worldwide, Andersen’s presence spans more than 180 countries through its global platform of member and collaborating firms delivering tax, legal, valuation and consulting services across more than 1,000 locations with over 3,000 partners and 50,000 professionals. Special Note Regarding Forward-Looking Statements This Press Release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Press Release, including statements regarding our future operating results and financial position; the nature and timing of future acquisitions and business combinations and related integration plans; our planned investments in talent, technology, automation, and AI; our business strategy and plans; and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “design,” “intend,” “expect,” “could,” “plan,” “potential,” “predict,” “seek,” “should,” “would,” or the negative version of these words and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, strategy, short- and long-term business operations and objectives, and financial needs. We caution you that the foregoing list may not contain all of the forward-looking statements made in this Press Release. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including the risk that: our future results, and the business activities of our clients, may be adversely affected by volatile, negative or uncertain economic and geopolitical conditions; an inability to respond to the evolving technological environment could materially affect our results of operations; the development and use of AI could harm our business, damage our reputation or give rise to legal or regulatory action; we may be not able to maintain or increase our historical growth, or effectively manage future growth; we may not be able to generate or maintain client demand for our services; we may be unable to expand our service offerings; our success depends substantially on the continued services of our CEO, executive team, Managing Directors and other key personnel; we may be unable to maintain our reputation, brand and firm culture; we may be unable to recruit, train and retain qualified professionals, and to staff client engagements; we may be subject to cybersecurity incidents or attacks; we may be held liable for alleged errors in providing our services; we may be unable to identify potential acquisitions or business combinations or successfully integrate or manage completed acquisitions and business combinations, and those risks, uncertainties, and assumptions described in Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, and in other filings we make with the SEC from time to time. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, the forward-looking events and circumstances discussed in this Press Release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, performance or achievements. You should read this Press Release with the understanding that our actual future results, performance, and events and circumstances may be materially different from what we expect. The forward-looking statements made in this Press Release are given only as of the date on which the statements are made. We undertake no obligation to update any of these forward-looking statements for any reason after the date of this Press Release or to conform these statements to actual results or to changes in our expectations, except as required by law. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Press Release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into or review of all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.   ANDERSEN GROUP INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts)     Three Months Ended March 31,     2026       2025   Revenue $ 240,746     $ 208,067   Operating expenses:       Cost of services (excluding depreciation and amortization)   166,381       117,963   Sales, general and administrative   48,011       35,362   Depreciation and amortization   2,274       2,095   Total operating expenses   216,666       155,420   Operating income   24,080       52,647   Interest income   1,879       1,200   Interest expense   (6,234 )     (143 ) Other income, net   826       1,002   Income before income tax expense   20,551       54,706   Income tax expense   2,813       4,130   Net income $ 17,738     $ 50,576   Less: net income attributable to noncontrolling interest $ 17,244       Net income attributable to Andersen Group Inc. $ 494       Net income per share of Class A common stock, basic $ 0.04       Weighted-average shares of Class A common stock outstanding, basic   12,650,000       Net income per share of Class A common stock, diluted $ 0.03       Weighted-average shares of Class A common stock outstanding, diluted   14,814,721        View source version on businesswire.com: https://www.businesswire.com/news/home/20260512024326/en/ Gregory Vistica, Managing Director, Investor Relations
greg.vistica@andersen.com Original: Andersen Reports Strong First-Quarter of 2026 Financial Results and Updates Full-Year Guidance

Andersen Reports Record Fourth-Quarter and Full-Year 2025 Financial Results and Initiates 2026 GuidanceMarch 17, 2026 4:15 PM
Business Wire
Andersen Group Inc. (NYSE: ANDG) today released financial results for the fourth quarter and full year ended December 31, 2025.


Andersen delivered strong top-line growth in 2025, with full-year revenue of $838.7 million, up 14.6% from $731.6 million in 2024. Fourth-quarter revenue of $170.3 million grew 19.6% year-over-year, compared with $142.4 million in the prior year period. Revenue growth was broad-based across all service lines, driven by customer additions, higher volume, and service line expansion. No large one-time items contributed to 2025 revenue. Total inorganic revenue for full-year 2025 amounted to approximately $1.0 million. Expenses related to the initial public offering, including equity restructuring costs and certain components of equity-based compensation led to a (net loss) for full-year 2025 of ($130.2) compared with net income of $134.8 million in 2024. Adjusted net income for the full-year 2025 was $217.0 million as compared with $136.4 million in 2024.



Record Fourth Quarter: Andersen delivered a robust fourth quarter, driven by strong demand across core services, with consistent growth in the Tax practice and accelerating momentum in Consulting and Global Mobility.



Fourth-Quarter 2025 Revenue: $170.3 million, up 19.6% compared with $142.4 million in fourth-quarter 2024.



Full-Year 2025 Revenue: $838.7 million, up 14.6% compared with $731.6 million in prior year.



2026 Guidance: Revenue expected to be approximately $955 million to $970 million, a growth rate of approximately 14% to 15%, including inorganic revenue of approximately $33 million; Adjusted EBITDA projected at $213 million to $220 million with margins of approximately 22% to 23%.



Strategic Investment Focus: 2026 will reflect continued investment in talent, technology, automation, AI, and integration of firms to be acquired during the year, resulting in an anticipated net loss and negative EPS for the full year.



Long-Term Growth: Positioned for sustained revenue growth and expanding margins, supported by a large addressable market, strong competitive positioning, scalable operating model, and selective inorganic expansion.



Commitment to Shareholder Value: Maintaining flexibility to deploy capital strategically to strengthen and expand the multi-dimensional platform, and enhance long-term shareholder value.



Mark L. Vorsatz, Global Chairman and CEO of Andersen, said:


“Our fourth quarter capped a record year for the firm, and underscores the strength of our global, multi-dimensional platform and the continued demand for high-value advisory services. We are entering 2026 with strong momentum, and a clear focus on disciplined growth – investing in the expansion of our platform, integrating high-quality firms across key markets, and deploying technology, automation and AI to enhance efficiency and scale our services. These investments position us to further strengthen our market leadership while driving sustained revenue growth and increased profitability over time.”


Initial Public Offering


On December 18, 2025, we completed our initial public offering (IPO) of 12,650,000 shares of Class A common stock at an offering price of $16.00 per share, including 1,650,000 shares of Class A common stock issued pursuant to the underwriters' over-allotment option. We received net proceeds of $188.2 million, net of underwriting discounts and commissions of $14.2 million, but before deducting offering costs of $9.9 million.


Key Financial and Operational Metrics


We monitor the following key financial and business metrics to evaluate our business, measure our performance and make strategic decisions:






Year Ended December 31,









2025

(Unaudited)






 






2024






 






2023








Revenue:







 






 






 






 






 








Revenue (in thousands)







$






838,692






 






 






$






731,593






 






 






$






639,111






 








Clients:







 






 






 






 






 








Client groups







 






12,350






 






 






 






11,700






 






 






 






10,700






 








Client engagements







 






22,450






 






 






 






20,300






 






 






 






17,900






 








Client groups with minimum annual revenue over $250,000







 






687






 






 






 






629






 






 






 






524






 








Percentage of revenue from top 10 client groups







 






5.5






%






 






 






5.0






%






 






 






5.3






%








People Metrics:







 






 






 






 






 








Employees







 






2,296






 






 






 






2,187






 






 






 






2,082






 








Attrition rate







 






14.2






%






 






 






14.1






%






 






 






11.0






%







Revenue Components


We generate our revenue from providing tax and financial advisory services to our clients. During 2025, 2024, and 2023, the substantial majority of our revenue was generated on a time and materials basis and, to a lesser extent, on a fixed fee basis and contingent fee basis. In the future, our revenue and profitability could vary materially depending on changes in the nature of services provided, as well as the stage of performance at which the right to receive fees is finally determined. We provide services in four primary areas:



Private Client Services. We provide comprehensive tax and financial services for individuals and families, addressing complex client matters such as multigenerational wealth, charitable giving and trust and estate planning.



Business Tax Services. We offer a broad range of scalable, integrated tax-related consulting and compliance services for businesses, helping organizations with managing their tax planning, compliance and reporting needs.



Alternative Investment Funds. We deliver comprehensive tax and financial-related services for alternative investment funds, including family offices, funds of funds, hedge funds, private equity funds, venture capital funds and real estate investment trusts.



Valuation Services. We provide clients with independent valuation expertise that helps clients navigate tax laws and regulations and comply with regulatory requirements.



During 2025, our revenue increased by 14.6% to $838.7 million from $731.6 million during 2024. During 2024, our revenue increased by 14.5% to $731.6 million from $639.1 million during 2023. Revenue consists of professional services revenue and reimbursable expenses, which primarily include travel and out-of-pocket costs that are billable to clients.


Revenue by Service Line


The following table shows the revenue contribution of our services lines:




 







Year Ended December 31,








 







2025

(Unaudited)






 






2024






 






2023








Private Client Services







51.5






%






 






49.8






%






 






50.2






%








Business Tax Services







34.8






 






 






35.7






 






 






35.4






 








Alternative Investment Funds







8.7






 






 






9.5






 






 






9.3






 








Valuation Services







5.0






 






 






5.0






 






 






5.1






 







Revenue by Geographic Region


Since our founding, we have expanded our geographic reach across the United States, serving clients from 26 offices as of December 31, 2025. While our offices are primarily situated in major metropolitan areas, our expansive presence across the United States allows us to adapt to regional market fluctuations and capitalize on localized opportunities. Geographic revenue contribution is derived from the assigned office of each employee working on an engagement. This regional allocation typically aligns with the region in which the client is located, but in some cases, the client may be in a region different from the location of the office or employees.


Revenue by U.S. region was:




 







Year Ended December 31,








 







2025

(Unaudited)






 






2024






 






2023








East







38.9






%






 






37.2






%






 






36.9






%








Central







19






 






 






18.5






 






 






18






 








West







42.1






 






 






44.3






 






 






45.1






 







Clients


During the year ended December 31, 2025, we performed services for over 12,350 client groups across the United States, representing an increase of approximately 5.6% from over 11,700 client groups during 2024. Client groups will often comprise multiple client engagements with different entities or individuals, such as multiple subsidiaries of an entity, multiple principals within a single private equity fund or multiple individuals or trusts within a single wealthy family. Across our client groups, we had over 22,450 client engagements in 2025, representing an increase of 10.6% from the over 20,300 client engagements we served in 2024.


During the year ended December 31, 2025, we had 687 client groups that generated over $250,000 in revenue, as compared to 629 such client groups in 2024. We attribute this growth to strong performance in service delivery, cross-selling services, leveraging our relationships with Andersen Global firms, and client satisfaction initiatives.


Our revenue is also dispersed across a broad range of client groups with no single client group accounting for more than 1% of revenue in 2025 and 2024. Our top 10 client groups accounted for approximately 5% of revenue in each of 2025 and 2024.


People Metrics


Compensation represents the largest portion of our operating expenses. As a result, we monitor our total number of employees, growth in employees and attrition rates:




 







Total Employees






 






Growth Rate






 






Attrition Rate








Year Ended December 31, 2025 (Unaudited)







2,296






 






5.0






%






 






14.2






%








Year Ended December 31, 2024







2,187






 






5.0






 






 






14.1






 








Year Ended December 31, 2023







2,082






 






20.2






 






 






11.0






 







Our workforce, which excludes temporary staff, consists of predominantly client serving professionals, and grew to 2,296 total employees as of December 31, 2025, compared to 2,187 as of December 31, 2024. Attrition, excluding involuntary terminations, was 14.2% in 2025, a slight decrease from our 5-year average of approximately 15%.


As of December 31, 2025, our workforce had a balanced distribution of tenure, reflecting a blend of experienced professionals and newer talent. Our 2,296 total employees included 319 Managing Directors as of December 31, 2025.


Non-GAAP Financial Measures


The following table summarizes the Non-GAAP Financial Measures (along with the most directly comparable GAAP measures) for the periods indicated:




 







Year Ended December 31,








 







2025

(Unaudited)






 






2024






 






2023








 







($ in thousands)








Net (Loss) Income







$






(130,169






)






 






$






134,801






 






 






$






118,683






 








Adjusted Net Income (unaudited)(1)







 






217,000






 






 






 






136,382






 






 






 






118,683






 








EBITDA (unaudited)(1)







 






(120,897






)






 






 






141,061






 






 






 






126,109






 








Adjusted EBITDA (unaudited) (1)







 






226,332






 






 






 






142,654






 






 






 






126,109






 








Revenue







 






838,692






 






 






 






731,593






 






 






 






639,111






 








Net (Loss) Income Margin (unaudited)







 






(15.5






)%






 






 






18.4






%






 






 






18.6






%








Adjusted Net Income Margin (unaudited) (1)







 






25.9






%






 






 






18.6






%






 






 






18.6






%








Adjusted EBITDA Margin (unaudited)(1)







 






27.0






%






 






 






19.5






%






 






 






19.7






%









(1)







These are non-GAAP financial measures. See below for a reconciliation to the most directly comparable GAAP financial measure.







Adjusted Net Income and Adjusted Net Income Margin


We define Adjusted Net Income as net income plus expenses related to transaction activities, including non-recurring equity restructuring costs and non-cash equity-based compensation expense associated with equity interests that were issued in anticipation of, and in connection with, the IPO. We define Adjusted Net Income Margin as Adjusted Net Income divided by revenue. We believe Adjusted Net Income and Adjusted Net Income Margin enhance an investor’s understanding of our financial and operating performance because they exclude transaction-related costs allowing for greater transparency into what measures we use in operating our business and measuring our performance. In addition, these measures enable comparison of financial trends and results between periods. The following table reflects the reconciliation of net (loss)/income to Adjusted Net Income and Adjusted Net Income Margin for each of the periods indicated:




 







Year Ended December 31,








 







2025

(Unaudited)






 






2024






 






2023








 







($ in thousands)








Net (Loss) Income







$






(130,169






)






 






$






134,801






 






 






$






118,683






 








Transaction costs(1)







 






7,378






 






 






 






1,593






 






 






 






—






 








Equity-based compensation expense associated with pre-IPO profits interest unit grants(2)







 






136,460






 






 






 






—






 






 






 






—






 








Equity-based compensation expense associated with vesting of Class X Aggregator Units(3)







 






10,228






 






 






 






—






 






 






 






—






 








Equity restructuring costs(4)







 






193,163






 






 






 






—






 






 






 






—






 








Income tax effect of adjustments







 






(60






)






 






 






(12






)






 






 






—






 








Adjusted Net Income







$






217,000






 






 






$






136,382






 






 






$






118,683






 








Revenue







 






838,692






 






 






 






731,593






 






 






 






639,111






 








Net (Loss) Income Margin







 






(15.5






%)






 






 






18.4






%






 






 






18.6






%








Adjusted Net Income Margin







 






25.9






%






 






 






18.6






%






 






 






18.6






%









 







Three Months Ended December 31,








 







2025

(Unaudited)






 






2024






 






Change








 







($ in thousands)








Net Loss







$






(195,873






)






 






$






(9,705






)






 






$






(186,168






)








Transaction costs(1)







 






1,605






 






 






 






1,377






 






 






 






228






 








Equity-based compensation expense associated with pre-IPO profits interest unit grants(2)







 






—






 






 






 






—






 






 






 






—






 








Equity-based compensation expense associated with vesting of Class X Aggregator Units(3)







 






10,228






 






 






 






—






 






 






 






10,228






 








Equity restructuring costs(4)







 






193,163






 






 






 






—






 






 






 






193,163






 








Income tax effect of adjustments







 






(1,643






)






 






(25






) 






 






 






(1,618






)








Adjusted Net Income (Loss)







$






7,480






 






 






$






(8,353






)






 






$






15,833






 








Revenue







$






170,346






 






 






$






142,410






 






 






$






27,936






 








Net Loss Margin







 






(115.0






%)






 






 






(6.8






)%






 






 








Adjusted Net Income (Loss) Margin







 






4.4






%






 






 






(5.9






)%






 






 









(1)







Transaction costs include certain legal, accounting and consulting costs incurred for public company readiness not eligible for capitalization and related to the restructuring and amounts incurred in advance of planned mergers and acquisitions.








(2)







Equity-based compensation expense associated with pre-IPO profits interest unit grants consists of non-cash compensation costs associated with the grants of profits interest units. These units were fully vested upon issuance and therefore a one-time expense was recognized in 2025. We recognized $104.5 million of non-cash equity-based compensation expense associated with pre-IPO profits interest units in cost of services and $32.0 million in sales, general and administrative expense during the year ended December 31, 2025.








(3)







Equity-based compensation expense associated with the vesting of Class X Aggregator Units consists of non-cash expenses associated with the vesting of Class X Aggregator Units, which were part of the Reorganization Transactions. We recognized $9.7 million of non-cash equity-based compensation expense associated with Class X Aggregator Units in cost of services and $0.5 million in sales, general and administrative expense during the year ended December 31, 2025.








(4)







In connection with the Reorganization Transactions, we incurred certain equity restructuring expenses as a result of the exchange of historical equity interests of the Management Holdcos for new Class H Aggregator Units and/or the combination of Class X Aggregator Units and Member Notes.







EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin


We define EBITDA as net income plus income tax expense, interest expense, and depreciation and amortization less interest income. We define Adjusted EBITDA as EBITDA with adjustments to exclude results from expenses related to transaction activities, including non-recurring equity restructuring costs and non-cash equity-based compensation expense associated with equity interests that were issued in anticipation of, and in connection with, the IPO. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue. The following table is a reconciliation of net (loss) / income to EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin for each of the periods indicated:




 







Year Ended December 31,








 







2025

(Unaudited)






 






2024






 






2023








 







($ in thousands)








Net (Loss) Income







$






(130,169






)






 






$






134,801






 






 






$






118,683






 








Interest income







 






(4,166






)






 






 






(4,524






)






 






 






(2,660






)








Interest expense







 






1,436






 






 






 






64






 






 






 






138






 








Depreciation and amortization







 






9,005






 






 






 






8,325






 






 






 






7,691






 








Income tax expense







 






2,997






 






 






 






2,395






 






 






 






2,257






 








EBITDA







 






(120,897






)






 






 






141,061






 






 






 






126,109






 








Transaction costs(1)







 






7,378






 






 






 






1,593






 






 






 






—






 








Equity-based compensation expense associated with pre-IPO profits interest unit grants(2)







 






136,460






 






 






 






—






 






 






 






—






 








Equity-based compensation expense associated with vesting of Class X Aggregator Units(3)







 






10,228






 






 






 






—






 






 






 






—






 








Equity restructuring costs(4)







 






193,163






 






 






 






—






 






 






 






—






 








Adjusted EBITDA







 






226,332






 






 






 






142,654






 






 






 






126,109






 








Revenue







 






838,692






 






 






 






731,593






 






 






 






639,111






 








Net (Loss) Income Margin







 






(15.5






)%






 






 






18.4






%






 






 






18.6






%








Adjusted EBITDA Margin







 






27.0






%






 






 






19.5






%






 






 






19.7






%









 







Three Months Ended December 31,








 







2025

(Unaudited)






 






2024

(Unaudited)






 






Change








 







($ in thousands)








Net Loss







$






(195,873






)






 






$






(9,705






)






 






$






(186,168






)








Interest income







 






(1,055






)






 






 






(1,568






)






 






 






513






 








Interest expense







 






1,169






 






 






 






16






 






 






 






1,153






 








Depreciation and amortization







 






2,237






 






 






 






2,170






 






 






 






67






 








Income tax benefit







 






(2,036






)






 






 






(172






)






 






 






(1,864






)








EBITDA







 






(195,558






)






 






 






(9,259






)






 






 






(186,299






)








Transaction costs(1)







 






1,605






 






 






 






1,377






 






 






 






228






 








Equity-based compensation expense associated with pre-IPO profits interest unit grants







 






—






 






 






 






—






 






 






 






—






 








Equity-based compensation expense associated with vesting of Class X Aggregator Units(3)







 






10,228






 






 






 






—






 






 






 






10,228






 








Equity restructuring costs(4)







 






193,163






 






 






 






—






 






 






 






193,163






 








Adjusted EBITDA







$






9,438






 






 






$






(7,882






)






 






$






17,320






 








Revenue







$






170,346






 






 






$






142,410






 






 






$






27,936






 








Net Loss Margin







 






(115.0






)%






 






 






(6.8






)%






 






 








Adjusted EBITDA Margin







 






5.5






%






 






 






(5.5






)%






 






 









(1)







Transaction costs include certain legal, accounting and consulting costs incurred for public company readiness not eligible for capitalization and related to the restructuring and amounts incurred in advance of planned mergers and acquisitions.








(2)







Equity-based compensation expense associated with pre-IPO profits interest unit grants consists of non-cash compensation costs associated with the grants of profits interest units. These units were fully vested upon issuance and therefore a one-time expense was recognized in 2025. We recognized $104.5 million of non-cash equity-based compensation expense associated with pre-IPO profits interest units in cost of services and $32.0 million in sales, general and administrative expense during the year ended December 31, 2025.








(3)







Equity-based compensation expense associated with the vesting of Class X Aggregator Units consists of non-cash expenses associated with the vesting of Class X Aggregator Units. We recognized $9.7 million of non-cash equity-based compensation expense associated with Class X Aggregator Units in cost of services and $0.5 million in sales, general and administrative expense during the year ended December 31, 2025.








(4)







In connection with the Reorganization Transactions, we incurred certain equity restructuring expenses as a result of the exchange of historical equity interests of the Management Holdcos for new Class H Aggregator Units and/or the combination of Class X Aggregator Units and Member Notes.







Non-GAAP Financial Measures


We use certain non-GAAP financial measures to supplement our financial measures prepared in accordance with accounting principles generally accepted in the United States (GAAP), which include EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Net Income Margin (collectively, "Non-GAAP Financial Measures"). We believe that the Non-GAAP Financial Measures, when taken collectively, may be helpful to investors because they provide consistency and comparability with past financial performance. We also believe that the Non-GAAP Financial Measures can enhance an investor’s understanding of our financial and operating performance from period to period, because they exclude certain items relating to income tax expense, interest, depreciation and amortization, equity-based compensation, restructuring costs and transaction costs which are not necessarily reflective of our ongoing operations and performance. However, the Non-GAAP Financial Measures are presented for supplemental informational purposes only, have limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of the limitations of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin include that they exclude certain tax payments that may reduce cash available to us, do not reflect any cash capital expenditure requirements for the assets being depreciated and amortized that may have to be replaced in the future, and do not reflect changes in, or cash requirements for, our working capital needs. Some of the limitations of Adjusted Net Income and Adjusted Net Income Margin include that they exclude the impact of expenses related to transaction activities, certain equity restructuring expenses and certain components of equity-based compensation.


Other companies, including companies in the professional services industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, any of which could reduce the usefulness of our Non-GAAP Financial Measures as tools for comparison. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these Non-GAAP Financial Measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business.


Additionally, we have relied upon the exception in Item 10(e)(1)(i)(B) of Regulation S-K and have not reconciled forward-looking Adjusted EBITDA to its most directly comparable U.S. GAAP measure, net income or loss, because we cannot predict with reasonable certainty the ultimate outcome of certain components of such reconciliations, including market-related assumptions and interest rate changes that are not within our control, or others that may arise, without unreasonable effort. For these reasons, we are unable to assess the probable significance of the unavailable information, which could materially impact the amount of future net income or loss.


Liquidity and Capital Resources


As of December 31, 2025, cash and cash equivalents and investments in treasury securities were $258.5 million.


Distributions


During the year ended December 31, 2025 and prior to the IPO, Andersen Tax Holdings LLC declared and/or paid distributions to the Management Holdcos in an aggregate total of $264.9 million related to members' tax obligations, members’ undistributed capital and allocated income. As of December 31, 2025, $52.7 million of these distributions remain payable relating to pre-IPO activity. As of the date of this press release, we have paid $18.1 million of these pre-IPO distributions in 2026.


Full Year and Fourth Quarter 2025 Conference Call


Andersen Group Inc. will host a conference call for analysts and investors to review financial results for the full year and fourth quarter 2025 on Tuesday, March 17, 2026 at 5:00 PM Eastern. The call can be accessed live at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=J3Hvslre and will be available for replay over the internet for six months by logging onto the Company’s investor relations website at https://investor.andersen.com.


About Andersen


Andersen is a leading provider of independent tax, valuation and financial advisory services to individuals, family offices, businesses and alternative investment funds in the United States. Andersen’s differentiated approach to client service is rooted in core values that emphasize stewardship, transparency and the seamless delivery of independent, high-quality service. Worldwide, Andersen’s presence spans more than 180 countries through its global platform of member and collaborating firms delivering tax, legal, valuation and consulting services across more than 1,000 locations with over 3,000 partners and 50,000 professionals. More information can be found at www.andersen.com.


Special Note Regarding Forward-Looking Statements


This Press Release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Press Release, including statements regarding our future operating results and financial position; the nature and timing of future acquisitions and related integration plans; our planned investments in talent, technology, automation, and AI; our business strategy and plans; and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “design,” “intend,” “expect,” “could,” “plan,” “potential,” “predict,” “seek,” “should,” “would,” or the negative version of these words and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, strategy, short- and long-term business operations and objectives, and financial needs. We caution you that the foregoing list may not contain all of the forward-looking statements made in this Press Release. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including the risk that: our future results, and the business activities of our clients, may be adversely affected by volatile, negative or uncertain economic and geopolitical conditions; an inability to respond to the evolving technological environment could materially affect our results of operations; the development and use of AI could harm our business, damage our reputation or give rise to legal or regulatory action; we may be not able to maintain or increase our historical growth, or effectively manage future growth; we may not be able to generate or maintain client demand for our services; we may be unable to expand our service offerings; our success depends substantially on the continued services of our CEO, executive team, Managing Directors and other key personnel; we may be unable to maintain our reputation, brand and firm culture; we may be unable to recruit, train and retain qualified professionals, and to staff client engagements; we may be subject to cybersecurity incidents or attacks; we may be held liable for alleged errors in providing our services; we may be unable to identify potential acquisitions or successfully integrate or manage completed acquisitions, and those risks, uncertainties, and assumptions described in the section titled “Risk Factors” in our prospectus filed with the SEC on December 17, 2025, in Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, which will be filed with the SEC on or before March 31, 2026, and in other filings we make with the SEC from time to time. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, the forward-looking events and circumstances discussed in this Press Release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.


You should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, performance or achievements. You should read this Press Release with the understanding that our actual future results, performance, and events and circumstances may be materially different from what we expect. The forward-looking statements made in this Press Release are given only as of the date on which the statements are made. We undertake no obligation to update any of these forward-looking statements for any reason after the date of this Press Release or to conform these statements to actual results or to changes in our expectations, except as required by law.


In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Press Release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into or review of all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.





 



Andersen Group Inc. and Subsidiaries








Consolidated Statements of Operations








(in thousands, except share and per share amounts)








(UNAUDITED)








 






 






 








 






 






Year Ended December 31,








 






2025






 






2024






 






2023








Revenue







$






838,692






 






 






$






731,593






 






 






$






639,111






 








Operating expenses:







 






 






 






 






 








Cost of services (excluding depreciation and amortization)







 






595,085






 






 






 






461,777






 






 






 






399,900






 








Sales, general and administrative







 






176,732






 






 






 






131,947






 






 






 






114,661






 








Equity restructuring costs







 






193,163






 






 






 






—






 






 






 






—






 








Depreciation and amortization







 






9,005






 






 






 






8,325






 






 






 






7,691






 








Total operating expenses







 






973,985






 






 






 






602,049






 






 






 






522,252






 








Operating (loss) income







 






(135,293






)






 






 






129,544






 






 






 






116,859






 








Interest income







 






4,166






 






 






 






4,524






 






 






 






2,660






 








Interest expense







 






(1,436






)






 






 






(64






)






 






 






(138






)








Other income, net







 






5,391






 






 






 






3,192






 






 






 






1,559






 








(Loss) income before income tax expense







 






(127,172






)






 






 






137,196






 






 






 






120,940






 








Income tax expense







 






2,997






 






 






 






2,395






 






 






 






2,257






 








Net (loss) income







$






(130,169






)






 






$






134,801






 






 






$






118,683






 








Less: net loss attributable to redeemable noncontrolling interest







$






(127,845






)






 






 






 






 








Net loss attributable to Andersen Group Inc.(1)







$






(2,324






)






 






 






 






 








Net loss per share of Class A common stock, basic(2)







$






(0.18






)






 






 






 






 








Weighted-average shares of Class A common stock outstanding, basic(2)







 






12,650,000






 






 






 






 






 








Net loss per share of Class A common stock, diluted(2)







$






(0.22






)






 






 






 






 








Weighted-average shares of Class A common stock outstanding, diluted(2)







 






110,944,464






 






 






 






 






 









____________________








(1)







Represents net loss attributable to Andersen Group Inc. for the period following the IPO and Reorganization Transactions.








(2)







Represents net loss per share of Class A common stock and weighted-average shares of Class A common stock outstanding for the period following the IPO and Reorganization Transactions.









 




Andersen Group Inc. and Subsidiaries








Consolidated Statements of Operations








(in thousands, except share and per share amounts)








(UNAUDITED)








 






 






 








 






 






Three Months Ended December 31,








 






2025






 






2024






 






Change








Revenue







$






170,346






 






 






$






142,410






 






 






$






27,936






 








Operating expenses:







 






 






 






 






 








Cost of services (excluding depreciation and amortization)







 






128,047






 






 






 






118,092






 






 






 






9,955






 








Sales, general and administrative







 






47,006






 






 






 






35,014






 






 






 






11,992






 








Equity restructuring costs







 






193,163






 






 






 






—






 






 






 






193,163






 








Depreciation and amortization







 






2,237






 






 






 






2,170






 






 






 






67






 








Total operating expenses







 






370,453






 






 






 






155,276






 






 






 






215,177






 








Operating loss







 






(200,107






)






 






 






(12,866






)






 






 






(187,241






)








Interest income







 






1,055






 






 






 






1,568






 






 






 






(513






)








Interest expense







 






(1,169






)






 






 






(16






)






 






 






(1,153






)








Other income, net







 






2,312






 






 






 






1,437






 






 






 






875






 








Loss before income tax benefit







 






(197,909






)






 






 






(9,877






)






 






 






(188,032






)








Income tax benefit







 






(2,036






)






 






 






(172






)






 






 






(1,864






)








Net loss







$






(195,873






)






 






$






(9,705






)






 






$






(186,168






)








Less: net loss attributable to redeemable noncontrolling interest







$






(193,549






)






 






 






 






 








Net loss attributable to Andersen Group Inc.(1)







$






(2,324






)






 






 






 






 








Net loss per share of Class A common stock, basic(2)







$






(0.18






)






 






 






 






 








Weighted-average shares of Class A common stock outstanding, basic(2)







 






12,650,000






 






 






 






 






 








Net loss per share of Class A common stock, diluted(2)







$






(0.22






)






 






 






 






 








Weighted-average shares of Class A common stock outstanding, diluted(2)







 






110,944,464






 






 






 






 






 









____________________








(1)







Represents net loss attributable to Andersen Group Inc. for the period following the IPO and Reorganization Transactions.








(2)







Represents net loss per share of Class A common stock and weighted-average shares of Class A common stock outstanding for the period following the IPO and Reorganization Transactions.









 




ANDERSEN GROUP INC. AND SUBSIDIARIES








CONSOLIDATED BALANCE SHEETS








(in thousands, except par value and share amounts)








(UNAUDITED)








 






 






 








 






 






December 31,








 






2025






 






2024








Assets







 






 






 








Current assets:







 






 






 








Cash and cash equivalents







$






250,280






 






 






$






87,993






 








Accounts receivable, net of allowance for credit losses of $1,676 and $3,071, respectively







 






123,418






 






 






 






117,848






 








Loans and notes receivable from related parties, net of allowance for credit losses of $2,513 and $1,480, respectively







 






473






 






 






 






436






 








Investments in held-to-maturity debt securities, current







 






8,179






 






 






 






22,485






 








Prepaid expenses and other current assets







 






29,688






 






 






 






17,615






 








Total current assets







 






412,038






 






 






 






246,377






 








Loans and notes receivable from related parties, net of allowance for credit losses of $8,222 and $7,131, respectively







 






440






 






 






 






2,184






 








Property and equipment, net







 






35,695






 






 






 






32,743






 








Operating lease right-of-use assets







 






82,104






 






 






 






76,908






 








Intangible assets, net







 






2,543






 






 






 






2,331






 








Investments in held-to-maturity debt securities







 






—






 






 






 






8,066






 








Goodwill







 






30,078






 






 






 






30,078






 








Other assets







 






2,242






 






 






 






—






 








Total assets







$






565,140






 






 






$






398,687






 








Liabilities, redeemable noncontrolling interest and stockholders' deficit/members' equity







 






 






 








Current liabilities:







 






 






 








Accounts payable and other accrued expenses







$






11,998






 






 






$






16,869






 








Accrued payroll and benefits







 






46,332






 






 






 






37,690






 








Deferred revenue







 






12,522






 






 






 






15,581






 








Distributions payable to related parties







 






52,745






 






 






 






—






 








Operating lease liabilities, current







 






3,958






 






 






 






17,074






 








Notes payable to related parties, current portion







 






62,340






 






 






 






—






 








Other current liabilities







 






5,912






 






 






 






7,227






 








Total current liabilities







 






195,807






 






 






 






94,441






 








Operating lease liabilities, noncurrent







 






106,448






 






 






 






90,881






 








Notes payable to related parties, less current portion







 






287,745






 






 






 






—






 








Other liabilities







 






3,517






 






 






 






17,116






 








Total liabilities







 






593,517






 






 






 






202,438






 








Commitments and contingencies







 






 






 








Redeemable noncontrolling interest







 






106,354






 






 






 






—






 








Stockholders' deficit/ members' equity:







 






 






 








Members' equity







 






—






 






 






 






196,249






 








Preferred stock, par value $0.0001 per share: 100,000,000 shares authorized, no shares issued and outstanding as of December 31, 2025







 






—






 






 






 






—






 








Class A common stock, par value $0.0001 per share: 1,000,000,000 shares authorized, 12,650,000 shares issued and outstanding as of December 31, 2025







 






1






 






 






 






—






 








Class B common stock, par value $0.0001 per share: 300,000,000 shares authorized, 99,166,563 shares issued and outstanding as of December 31, 2025







 






10






 






 






 






—






 








Additional paid-in-capital







 






—






 






 






 






—






 








Accumulated deficit







 






(134,742






)






 






 






—






 








Total stockholders' deficit/ members' equity







 






(134,731






)






 






 






196,249






 








Total liabilities, redeemable noncontrolling interest and stockholders' deficit/members' equity







$






565,140






 






 






$






398,687






 















 




ANDERSEN GROUP INC. AND SUBSIDIARIES








CONSOLIDATED STATEMENTS OF CASH FLOWS








(in thousands)








 






 






 








(UNAUDITED)








 






 






 








 






 






Year Ended December 31,








 






 






2025






 






2024






 






2023








Cash flows from operating activities:







 






 






 






 






 








Net (loss) income







$






(130,169






)






 






$






134,801






 






 






$






118,683






 








Adjustments to reconcile net (loss) income to net cash provided by operating activities:







 






 






 






 






 








Gain on reversal of legal accrual







 






(9,455






)






 






 






—






 






 






 






—






 








Equity-based compensation







 






147,372






 






 






 






—






 






 






 






—






 








Depreciation and amortization







 






9,005






 






 






 






8,325






 






 






 






7,691






 








Non-cash lease expense







 






12,613






 






 






 






12,914






 






 






 






11,405






 








Provision for credit losses on accounts receivable







 






(1,198






)






 






 






(870






)






 






 






(328






)








Amortization of discount on held-to-maturity debt securities







 






(412






)






 






 






(1,064






)






 






 






(696






)








Deferred income tax







 






(511






)






 






 






(102






)






 






 






171






 








Reserves on loans and notes receivable from related parties







 






2,664






 






 






 






3,671






 






 






 






500






 








Equity restructuring costs







 






193,163






 






 






 






—






 






 






 






—






 








Other, net







 






145






 






 






 






(30






)






 






 






651






 








Changes in operating assets and liabilities:







 






 






 






 






 








Accounts receivable







 






(4,372






)






 






 






(7,876






)






 






 






(14,519






)








Prepaid expenses and other current assets







 






(12,688






)






 






 






348






 






 






 






(2,348






)








Other assets







 






(1,598






)






 






 






—






 






 






 






—






 








Accounts payable and other accrued expenses







 






2,189






 






 






 






6,376






 






 






 






4,400






 








Accrued payroll and benefits







 






12,036






 






 






 






9,797






 






 






 






(1,863






)








Deferred revenue







 






(3,059






)






 






 






1,281






 






 






 






(1,083






)








Other current liabilities







 






(16,921






)






 






 






173






 






 






 






2,521






 








Operating lease liabilities







 






(15,358






)






 






 






(12,297






)






 






 






(13,491






)








Other liabilities







 






1,173






 






 






 






(3,136






)






 






 






6,372






 








Net cash provided by operating activities







 






184,619






 






 






 






152,311






 






 






 






118,066






 








Cash flows from investing activities:







 






 






 






 






 








Purchases of held-to-maturity debt securities







 






—






 






 






 






(28,198






)






 






 






(36,964






)








Proceeds from maturity of held-to-maturity debt securities







 






22,783






 






 






 






23,132






 






 






 






30,288






 








Issuance of loans and notes receivable from related parties







 






(2,873






)






 






 






(6,286






)






 






 






(4,133






)








Proceeds from loans and notes receivable from related parties







 






1,762






 






 






 






2,114






 






 






 






3,690






 








Payments for purchases of property and equipment







 






(10,345






)






 






 






(8,596






)






 






 






(4,899






)








Payments for capitalized internal-use software costs







 






(717






)






 






 






(622






)






 






 






(606






)








Net cash provided by (used in) investing activities







 






10,610






 






 






 






(18,456






)






 






 






(12,624






)








Cash flows from financing activities:







 






 






 






 






 








Proceeds from IPO, net of underwriting discounts and commissions







 






188,232






 






 






 






—






 






 






 






—






 








Payments of deferred offering costs







 






(8,114






)






 






 






(615






)






 






 






—






 








Proceeds from issuance of Class B common stock







 






10






 






 






 






—






 






 






 






—






 








Deferred consideration payments for business combination







 






(800






)






 






 






(800






)






 






 






(800






)








Principal payments under finance lease obligations







 






(117






)






 






 






(105






)






 






 






(139






)








Distributions







 






(212,153






)






 






 






(116,050






)






 






 






(90,300






)








Net cash used in financing activities







 






(32,942






)






 






 






(117,570






)






 






 






(91,239






)








Net change in cash and cash equivalents







 






162,287






 






 






 






16,285






 






 






 






14,203






 








Cash and cash equivalents at beginning of period







 






87,993






 






 






 






71,708






 






 






 






57,505






 








Cash and cash equivalents at end of period







$






250,280






 






 






$






87,993






 






 






$






71,708






 








Supplemental disclosures







 






 






 






 






 








Interest paid







$






217






 






 






$






12






 






 






$






18






 








Income taxes paid







 






3,222






 






 






 






2,380






 






 






 






1,557






 








Non-cash investing and financing transactions







 






 






 






 






 








Property and equipment acquired through finance leases







 






32






 






 






 






—






 






 






 






331






 








Right-of-use assets obtained in exchange for lease liabilities







 






19,560






 






 






 






9,429






 






 






 






8,061






 








Right-of-use asset and lease liability adjustments due to remeasurement







 






(1,751






)






 






 






—






 






 






 






—






 








Purchases of property and equipment included in accounts payable and other accrued expenses







 






1,185






 






 






 






—






 






 






 






—






 








Unpaid deferred offering costs included in accounts payable and other accrued expenses







 






1,209






 






 






 






—






 






 






 






—






 








Reclassification of deferred offering costs paid in prior year to additional paid-in-capital upon IPO







 






615






 






 






 






—






 






 






 






—






 








Distributions payable







 






52,745






 






 






 






—






 






 






 






—






 








Issuance of notes payable to related parties







 






156,922






 






 






 






—






 






 






 






—






 








Settlement of deferred compensation liability with LTIP Unit issuance







 






1,477






 






 






 






—






 






 






 






—






 







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260317869929/en/
Investor Relations Contact:

Gregory Vistica, Managing Director

+1.415.764.2700

greg.vistica@andersen.com


Original: Andersen Reports Record Fourth-Quarter and Full-Year 2025 Financial Results and Initiates 2026 Guidance