Strong Revenue Growth and Guidance
Q1 revenue of $240.7M, up 15.7% year-over-year; exceeded prior guidance midpoint by ~$8.2M. Updated full-year revenue guidance raised to $980M–$1.0B (~18% growth).
Robust Adjusted EBITDA Performance
Adjusted EBITDA of $72.3M in Q1, up ~26% YoY with a 30% adjusted EBITDA margin (would have been ~33% excluding $7.4M loss in Global Mobility & Consulting); full-year adjusted EBITDA guidance $225M–$250M (23%–25% margin).
Improving Productivity and Pricing
Revenue per professional increased ~12.7%–13% YoY and revenue per hour rose 8%, reflecting pricing power and early productivity gains.
Healthy Balance Sheet and Liquidity
Cash and cash equivalents of ~$207M and accounts receivable (billed + unbilled) of ~$214M as of March 31, 2026; no third-party debt and conservative leverage posture.
Organic Broad-Based Growth
All four major tax service lines grew double-digits (each at least 12% YoY); Private Client Services up 18.2% and represented ~51.2% of revenues; all three regions reported revenue increases, East region up 22.4%.
Inorganic Growth Momentum
Accelerated M&A activity: several acquisitions closed in Q2 (one quarter ahead), inorganic revenue guide raised from $33M to $55M for 2026; modest inorganic revenue (~<$7M) included in Q2 plans with majority expected in H2.
AI and Technology Initiatives Launched
AI/tech rollout initiated with internal training in 500-person increments and ongoing pilots with University of San Francisco; management expects technology to improve efficiency and lift revenue per professional over time.
Client Base and Capacity Growth
Headcount up 2.8% (62 colleagues) in Q1; active client groups increased 3.5% and client engagements increased 2%, indicating expanding client activity and capacity utilization.