Andersen Group (NYSE:ANDG) executives used the company’s first earnings call as a public company to highlight stronger-than-expected fourth-quarter revenue growth, expanding non-GAAP margins, and an acquisition strategy centered on rolling up long-standing network affiliates. Management also outlined 2026 priorities around productivity, profitability, integration, and technology investment, while providing guidance that includes incremental inorganic revenue and a planned 3% technology surcharge.
Fourth-quarter results boosted by broad-based demand
For the fourth quarter of 2025, Andersen reported revenue of $170.3 million, up 19.6% year over year. CFO Neal Livingston said results exceeded internal expectations and were driven by higher client fees and higher volume, particularly in December, with growth balanced across service lines and no large one-time or project-related items.
On a non-GAAP basis, Andersen reported adjusted net income of $7.5 million (versus an $8.4 million loss a year earlier) and adjusted EBITDA of $9.4 million (versus a $7.9 million loss). Livingston said margins expanded by more than 100 basis points on both metrics.
Full-year 2025: revenue up 14.6%, client base and pricing expand
For full-year 2025, revenue rose to $838.7 million, a 14.6% year-over-year increase. Livingston emphasized that growth was diversified across regions and service lines, again with no large one-time items. Private Client Services remained the largest service line at 51.5% of total revenue, with no substantive change in service-line mix.
Livingston pointed to multiple operational drivers, including growth in large client relationships and broader engagement activity. Andersen ended 2025 with 687 client groups generating over $250,000 in revenue, up from 629 in 2024. The company also increased the number of active client groups by 650 (a net increase of 5.6%) and grew engagements with those client groups by 10.6%. Pricing also moved higher, with the average hourly rate up about 11% year over year.
The company highlighted client diversification, noting no single client represented more than 1% of revenue in 2025 or 2024, and the top 10 client groups accounted for about 5% of revenue in both years. Headcount increased 5% in 2025, and voluntary attrition held at 14%, in line with 2024.
On the bottom line, Andersen reported a GAAP net loss of $130.2 million for the year, driven by a $183 million one-off equity restructuring charge and stock-based compensation expense related to the IPO. Effective tax rate on a GAAP basis was -2.4%, and EPS was negative.
On a non-GAAP basis, Andersen posted adjusted net income of $217 million with a 25.9% margin (up 72 basis points year over year), and adjusted EBITDA of $226.3 million, up 59%, with a 27% margin (up 75 basis points). Livingston said the margin expansion reflected operating leverage and disciplined cost management.
Balance sheet and cash flow: no third-party debt
As of Dec. 31, 2025, Andersen had $258.5 million of cash and equivalents and no third-party debt. Net cash flow from operations totaled $184.6 million, up 21% from 2024, which Livingston attributed to strong underlying earnings and working-capital discipline. Capital expenditures were $10.6 million, primarily for non-strategic technology investments aligned with long-term growth, according to Livingston.
2026 priorities: productivity, profitability, integration, acquisitions, and technology
CEO Mark Vorsatz said the firm’s 2026 focus areas include:
- Productivity: Vorsatz said improving productivity by one hour per week across client service would add an estimated $42 million to net income. Partner Dan DePaoli will lead the initiative.
- Profitability and cost control: Vorsatz said G&A rose to about 18% (from “the high 14s”) and he expects economies of scale to reduce that figure by roughly 1% per year over the next couple of years. Partner Peter Coscia will focus on profitability, cost control, and client retention.
- Integration: Vorsatz said the platform’s cross-selling potential is a “huge competitive advantage,” and described integration as a major opportunity. James Frost will lead integration efforts.
- Technology: Vorsatz described technology as a competitive advantage and said the firm is taking a measured approach, citing regulatory issues at other firms that introduced AI too quickly. Andersen has run pilot programs through a joint venture with the University of San Francisco, with licensing provided by Anthropic, and plans additional pilots in May and June. Vorsatz also said the firm is already applying technology to improve efficiency in tax compliance and expects leverage to shift over time, including hiring more lateral employees than entry-level associates.
Acquisitions pipeline and guidance: $33 million of inorganic revenue included
Management said acquisitions will prioritize rolling up long-standing affiliates in Andersen’s network rather than buying large practices with limited familiarity. Vorsatz said the company signed four deals recently—Canada (Vancouver-based practice focused largely on Private Client Services), a tax practice in Nigeria, and legal and tax practices in Uruguay—totaling about 270 people and $21 million in revenue. Vorsatz said the deals would be effective April 1.
For 2026 guidance, Livingston forecast revenue of $955 million to $970 million (14% to 15% growth), including approximately $33 million of inorganic revenue. Adjusted EBITDA is expected to be $213 million to $220 million, implying an adjusted EBITDA margin of 22% to 23%.
Livingston said the company expects a GAAP net loss in 2026 due primarily to non-cash equity-based compensation expense tied to vesting of Class X aggregator units issued prior to the IPO, with negative EPS expected as a result. He also emphasized seasonality in the business, with client activity peaking in Q1 and Q3, and noted that Q3 has historically generated more than half—and sometimes up to two-thirds—of annual net income.
For Q1 2026, Andersen guided to revenue of $230 million to $235 million and adjusted EBITDA of $55 million to $60 million, with adjusted EBITDA margin of 25% to 26%. Key assumptions include net customer acquisition, productivity initiatives, integration of acquired firms, compensation and operating expense discipline, continued investment in technology and automation, and execution of pricing actions including a 3% technology surcharge. Livingston said the firm was tracking adoption of the surcharge across about two-thirds of clients, noting some clients were given a year before implementation.
In the Q&A, Vorsatz described the company’s guidance approach as conservative and said he anticipated raising revenue and adjusted EBITDA objectives when the company reports first-quarter results. He also said the company expects to “substantially outperform” the $33 million inorganic revenue assumption, though he did not provide a specific updated figure.
About Andersen Group (NYSE:ANDG)
Our mission is to deliver exceptional client service grounded in integrity, transparency, and excellence. Since our founding in 2002, we have experienced rapid and sustained growth, powered by our people, our values and our relentless commitment to innovative, client-focused solutions. Building on the rich traditions and culture of the former Arthur Andersen, we are driven by a bold vision to lead in a complex global marketplace, creating lasting value for our clients, our people and our investors.
