Andersen fuels global expansion with strong first-quarter financial results.
Independent advisory firm saw top-line gains driven by service line expansion and a flurry of international acquisitions in key growth markets. Despite a dip in GAAP net income due to equity-based compensation, the firm reported adjusted net income growth and expanded its footprint in Europe and Africa.
Professional services firm Andersen Group Inc. (NYSE: ANDG) reported first-quarter 2026 revenue of $240.7 million, a 15.7% increase compared to the $208.1 million generated in the prior year quarter. The San Francisco-based firm attributed the strong top-line performance to a combination of client growth, increased project volume, and the continued expansion of its core service lines.
While top-line growth remained robust, the firm reported a decrease in GAAP net income to $17.7 million, down from $50.6 million in Q1 2025. This decline was primarily driven by $41.1 million in non-cash equity-based compensation expenses associated with the vesting of units from previous reorganization transactions. However, on an adjusted basis, net income rose to $62.9 million, reflecting what Global Chairman and CEO Mark L. Vorsatz described as "consistent, organic growth" across the firm's integrated global platform.
The firm's revenue remains anchored by its Private Client Services, which accounted for 51.2% of total revenue during the quarter. Business Tax Services contributed 33.5%, while Alternative Investment Funds and Valuation Services made up 10.4% and 4.9%, respectively. Geographically, the U.S. business showed a balanced distribution, with the East region leading at 42.1% of revenue, followed closely by the West at 41.5% and the Central region at 16.4%.
Inorganic growth continues to be a central pillar of Andersen's strategy to scale its global platform. In May 2026, the company finalized acquisitions of tax and consulting firms in Ireland, New Zealand, Nigeria, and Uruguay. The firm also announced signed agreements for a tax firm in Switzerland and a business combination in Canada, both of which are expected to close in the third quarter of this year. These moves align with the firm's goal of scaling its presence in both developed and high-growth international markets.
To support this growth, Andersen has increased its professional headcount to 2,271 employees, including 323 Managing Directors. Although the firm noted a slight uptick in attrition—rising to 15.7% from 14.2% a year prior—the workforce remains predominantly comprised of client-serving professionals. The firm's business model continues to rely heavily on time and materials engagements, with peak workloads typically aligning with U.S. tax filing deadlines in the first and third quarters.
Looking ahead, Vorsatz emphasized the strength of the firm's cross-border capabilities and its ability to deliver coordinated solutions. "Our first-quarter results reflect the strength of our platform and the momentum across the business," he stated. He noted that the firm's relationships with over 400 member and collaborating firms provide a significant pipeline for future domestic and international expansion through closer partnerships and future business combinations.
SOURCE: Andersen Group Inc.
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