Aug 12, 2026 earnings call — Strong organic growth and deal update
Andersen beat Q2 guidance with revenue of $217.7 million and organic growth of about 20.5%.
Revenue $0.2B (est $0.2B) · EPS $0.34 (est $0.09) · Next-quarter revenue outlook $1.0B–$1.0B
Key quotes
"So if you take those out, excluding acquisitions, organic revenue increased 20.6% year-over-year for the quarter."
"So we now have signed 16 transactions. 8 of those have closed that represent over $130 million of revenue."
"We launched our internal program on May 8. We've now trained, I think, over 500 of our people."
Analyst Q&A 6
Why tax business was strong and recent deals
Q (Gregory Parrish · Morgan Stanley): Analyst asked what drove the strong business tax results. He also asked how Andersen judges capabilities of the recent acquisitions and why they will grow as technology evolves.
A: Management said the tax strength comes from careful client selection and selling non-commoditized services where they can add value and command pricing. They said they know the acquired firms well (examples: Zenger Folkman, Amy Daniels, Alonso Montes) and use RSUs to retain managers while focusing deals in the U.S., Canada, Mexico and other markets.
"The reason I think we drive so well on the pricing side is because we try to build relationships with clients." — Mark Vorsatz (CEO·CHAIR)
EBITDA guide and deal impact
Q (Andrew Nicholas · William Blair): Analyst asked if the EBITDA guide is conservative and whether announced deals will affect EBITDA. He noted guidance implies a step down in back half despite organic growth.
A: Management said much of the gap is timing and that they intentionally stayed conservative on adjusted EBITDA guidance. They noted $100 million of annualized revenue from deals already joined that will not hit 2026 numbers and said they expect additional deal activity before year end.
"I will volunteer that for some of the projections that we looked at multiyear that we probably have $100 million of revenue that has joined us that will not hit in the 2026 numbers at all, $100 million of annualized revenue." — Mark Vorsatz (CEO·CHAIR)
Why Andersen keeps adding clients
Q (Kevin McVeigh · UBS): Analyst asked why Andersen continues to add clients at a high rate and whether there is a perpetual incubation process.
A: Management said growth comes from an orientation toward business development, building platform and content, and not selling commodities. They said they focus on value-based work they can quantify for clients (gave a recent example of a family office savings estimate) and noted planned break-even timing for some business lines.
"What we're trying to do is build relationships with clients, establish value, sell value and get paid something fair for it." — Mark Vorsatz (CEO·CHAIR)
Profile and impact of new hires
Q (Tobey Sommer · Truist): Analyst asked where senior and organic hires come from and how their revenue generation compares to existing staff at that level.
A: Management said about 70% of new hires previously interned with Andersen through its InternConnect program, and those interns have about a 50% better retention rate than non-intern hires. On laterals they hire for specific needs (example: tax controversy) and are prioritizing markets like Silicon Valley and Florida to add resources and improve margins.
"I found that our retention rate for people who had interned with us was about 50% better than the retention rate of people that did not intern with us." — Mark Vorsatz (CEO·CHAIR)
Acquisition terms and growth rates
Q (Mark Marcon · Baird): Analyst asked recent acquisitions' growth rates and the deal terms mix (cash upfront, SBC, earn-outs).
A: Management said most deals follow the same basic construct with RSUs for managers and that deal economics depend on partner compensation caps as a percentage of revenue. They said most deals are around 10x earnings (the U.K. deal was at 12x) and that tax and legal together grew a little over 13% last year.
"As far as the margins go, what I can speak more authoritatively with is what we're doing in tax and legal globally the growth rates last year were a little over 13% collectively in revenue." — Mark Vorsatz (CEO·CHAIR)
How Andersen uses AI and tech
Q (Jason Haas · Wells Fargo): Analyst asked how Andersen is integrating technology and AI into its processes.
A: Management described an agreement with University of San Francisco (which has an agreement with Anthropic) and use of Accordance, four pilot programs, and an internal program launched May 8 that has trained over 500 people. They said AI is used to identify opportunities, source solutions and implement work, enabling more fixed-fee projects and big time savings on technical work.
"We've now trained, I think, over 500 of our people." — Mark Vorsatz (CEO·CHAIR)