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Q2 2026 Financial Highlights
Public Policy Holding Company, Inc. reported a GAAP net loss of - $3.7 million, an improvement of 34.8% compared to - $5.7 million in Q2 2025. Adjusted EBITDA was $12.3 million, a decrease of 4.4% over Q2 2025, achieved at a 23.5% margin. Adjusted Net Income was $10.6 million, down 11.0% over Q2 2025. Revenue increased to $52.1 million, marking a 7.3% year-over-year (YoY) increase, with organic revenue growth at 3.9%. The Adjusted EBITDA margin was 23.5% in 2026, down 2.9 percentage points from 26.4% in 2025. The Adjusted Net Income margin decreased to 20.3% in 2026 from 24.5% in 2025, a -4.2 percentage point change.
H1 2026 Financial Highlights
Revenue increased 16.3% over H1 2025 to $102.3 million. Organic Revenue growth was 4.4% over H1 2025. GAAP Net Loss was - $15.2 million, an improvement compared to - $16.3 million in H1 2025. Adjusted EBITDA was $23.4 million, up 9.3% over H1 2025, achieved at a 22.9% margin. Adjusted Net Income was $17.9 million, up 15.3% over H1 2025. The Adjusted EBITDA margin was 22.9% in 2026, down 1.5 percentage points from 24.4% in 2025. The Adjusted Net Income margin was 17.5% in 2026, a -0.2 percentage point change from 17.7% in 2025.
Segment Performance (H1 2026 vs H1 2025)
Government Relations Consulting
Revenue grew 9.8% to $58.7 million, with organic growth of 6.3%. Segment Adjusted pre-bonus EBITDA was $27.4 million, up 13.1%, with a margin of 46.7%, a 1.3 percentage point increase.
Corporate Communications & Public Affairs Consulting
Revenue increased 29.5% to $36.5 million, with organic growth down 0.9%. Segment Adjusted pre-bonus EBITDA was $9.1 million, up 25.1%, with a margin of 24.8%, a 0.9 percentage point decrease.
Compliance and Insights Services
Revenue grew 12.8% to $7.1 million (reported and organic). Segment Adjusted pre-bonus EBITDA was $3.6 million, up 4.5%, with a margin of 50.2%, a 4.0 percentage point decrease.
Geographic Revenue (H1 2026 vs H1 2025)
United States revenue was $95.5 million, up 13.7%. International revenue was $6.8 million, up 73.8%.
Cash Flow (H1 2026 vs H1 2025)
Net cash used in operating activities was - $9.1 million, compared to - $0.3 million in H1 2025. Adjusted Free Cash Flow was $4.1 million, a decrease of 64.5% from $11.7 million in H1 2025. Cash and cash equivalents at the end of the period were $36.9 million, compared to $9.8 million in H1 2025.
Other Key Metrics
Net Debt was - $5.2 million in Q2 2026, compared to - $1.8 million in Q1 2026 and - $42.2 million on June 30, 2025. The Group ended H1 2026 with 476 employees, an increase from 447 in H1 2025, primarily due to acquisitions. The client base grew to approximately 1,500, including representations of about half of the Fortune 100. Revenue diversification improved, with the top 10 Group clients representing 7.5% of revenue in H1 2026, down from 9.4% in H1 2025. The Corporate Communications & Public Affairs segment grew to represent 35.7% of total revenue in H1 2026, up from 32.0% in H1 2025. Expected earnout payments for 2026-2031 total $64.9 million, with $35.3 million payable in cash and $29.6 million in Public Policy Holding Company, Inc. stock. The maximum earnout liability over the same period could reach $123.3 million, with $70.7 million payable in cash and $52.6 million in stock.
Financial Outlook
For the full year 2026, Public Policy Holding Company, Inc. has raised its guidance, projecting revenue in the range of $213 million to $216 million, up from previous guidance of $205 million to $209 million. Adjusted EBITDA is expected to be between $48.5 million and $50.5 million, reflecting an adjusted margin of 22.5% to 23.5%, both higher than prior guidance. Organic Revenue Growth is anticipated to be approximately 5%, remaining unchanged.