Second Quarter 2026
Filed Aug 12, 2026ITG, Inc. Reports Second Quarter 2026 Results
Revenue increased 38% year-over-year to $404.6 million, Adjusted EBITDA increased 21% year-over-year to $52.2 million, Free Cash Flow increased 66% year-over-year to $44.8 million, and NTM Backlog reached $1,517 million. The quarter also reported Net Income of $1.8 million and $19,534 thousand of interest expense.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $ 404,633 | – | 38% |
| Cost of revenue, excluding depreciation and amortizationGAAP | 332,581 | – | – |
| Selling, general and administrativeGAAP | 28,141 | – | – |
| Depreciation and amortizationGAAP | 21,014 | – | – |
| Change in fair value of contingent liabilitiesGAAP | 300 | – | – |
| TotalGAAP | 382,036 | – | – |
| Interest expenseGAAP | (19,534) | – | – |
| Other expense, netGAAP | (1,008) | – | – |
| Income (loss) before provision for income taxesGAAP | 2,055 | – | – |
| Net IncomeGAAP | $1.8 million | – | – |
| Adjusted EBITDAnon-GAAP | $52.2 million | – | 21% |
| Free Cash Flownon-GAAP | $44.8 million | – | 66% |
| NTM Backlogother | $1,517 million | – | – |
Q3 2026 and FY 2026 outlook
- Revenue$440 Q3 2026; $1,556 FY 2026
- Tax rate~19%
- NoteQ3 2026 Revenue YoY Growth: +42%
- NoteFY 2026 Revenue YoY Growth: +35%
- NoteQ3 2026 Adjusted Net Income: $31
- NoteQ3 2026 Adjusted Net Income YoY Growth: +239%
- NoteFY 2026 Adjusted Net Income: $74
- NoteFY 2026 Adjusted Net Income YoY Growth: +80%
- NoteQ3 2026 Adjusted EBITDA: $63
- NoteQ3 2026 Adjusted EBITDA YoY Growth: +61%
- NoteFY 2026 Adjusted EBITDA: $202
- NoteFY 2026 Adjusted EBITDA YoY Growth: +36%
- NoteQ3 2026 Adjusted EBITDA Margin: 14.4%
- NoteQ3 2026 Adjusted EBITDA Margin change: +170 bps
- NoteFY 2026 Adjusted EBITDA Margin: 13.0%
- NoteFY 2026 Adjusted EBITDA Margin change: +20 bps
- NoteCapEx (% of Revenue): ~2.6%
- NoteNet Interest Expense: ~$62
- NoteDepreciation Expense: ~$52
- NoteAmortization Expense: ~$32
- NoteDiluted Shares Outstanding: ~124.4
What drove it
- Contributions from recent acquisitions.
- Expansion of existing and new customer programs.
- Increased activity under recently awarded contracts.
- Broadly favorable demand trends.
- Strong order activity, including significant broadband fiber deployment awards with Ziply Fiber and Intrepid Fiber Networks.
- Growth was generated from both the Engineering & Maintenance and Infrastructure Deployment service lines.
Concerns
- Net Income was $1.8 million despite record revenue, Adjusted EBITDA and NTM Backlog.
- Interest expense was (19,534), compared to (6,919) in the prior-year quarter.
- Timing for revenue from projects included in NTM Backlog is subject to change.
- Forward-looking results may differ materially from the initial 2026 financial outlook.
What to watch
- Execution against Q3 2026 revenue outlook of $440 and FY 2026 revenue outlook of $1,556.
- Progress toward Q3 2026 Adjusted EBITDA of $63 and FY 2026 Adjusted EBITDA of $202.
- Conversion and timing of $1,517 million of NTM Backlog.
- The impact of IPO net proceeds primarily applied to debt repayment.
- Broadband, wireless, data center, utility, and civil infrastructure activity.
Balance sheet and cash flow
- Free Cash Flow increased 66% year-over-year to $44.8 million.
- Completed initial public offering subsequent to quarter end; net proceeds primarily applied to debt repayment.
Analysis
ITG reported second-quarter revenue of $404.6 million, up 38% year-over-year, alongside Adjusted EBITDA of $52.2 million, up 21% year-over-year. The company described revenue, Adjusted EBITDA and NTM Backlog as record levels for the quarter. Demand commentary cited recent acquisitions, existing and new customer-program expansion, activity under recently awarded contracts, and broadly favorable demand trends.
The company said both Engineering & Maintenance and Infrastructure Deployment contributed to growth. Order activity included significant broadband fiber deployment awards with Ziply Fiber and Intrepid Fiber Networks. NTM Backlog was $1,517 million as of June 30, 2026, versus $1,259 million as of June 30, 2025 and $1,430 million as of March 31, 2026. ITG said this backlog supports strong revenue visibility, while noting that project timing is subject to change.
Reported profitability and cash generation diverged materially between the GAAP and non-GAAP measures disclosed in the release. Net Income was $1.8 million, while Adjusted EBITDA was $52.2 million and Free Cash Flow was $44.8 million. The condensed statement showed interest expense of (19,534), compared with (6,919) in the prior-year quarter. Subsequent to quarter end, ITG completed its initial public offering and said net proceeds were primarily applied to debt repayment.
ITG introduced initial 2026 outlook for Q3 revenue of $440, Adjusted Net Income of $31, Adjusted EBITDA of $63, and Adjusted EBITDA Margin of 14.4%. Full-year outlook calls for revenue of $1,556, Adjusted Net Income of $74, Adjusted EBITDA of $202, and Adjusted EBITDA Margin of 13.0%. Forecast assumptions include an effective tax rate of ~19%, CapEx of ~2.6% of revenue, net interest expense of ~$62, depreciation expense of ~$52, amortization expense of ~$32, and diluted shares outstanding of ~124.4.
Management, verbatim
Our second quarter results reflect continued momentum across the business and strong execution of our growth strategy.
Andy Parrott, Chief Executive Officer of ITG
Performance was driven by contributions from recent acquisitions, expansion of existing and new customer programs, increased activity under recently awarded contracts, and supported by broadly favorable demand trends.
Andy Parrott, Chief Executive Officer of ITG
We remain focused on executing for our customers, investing in our workforce and fleet, and pursuing strategic opportunities that enhance our capabilities and market presence.
Andy Parrott, Chief Executive Officer of ITG
Not in the filing
stated, not guessed- Full CFO commentary document, which the release says was posted separately, was not included in the filing text provided.
- GAAP gross profit and gross margin.
- GAAP operating income or loss and operating margin.
- GAAP net income attributable to ITG Parent, LLC from the complete financial-statement row, prior-year net income, and income-tax provision.
- GAAP and non-GAAP EPS, including diluted share count for the reported quarter.
- Adjusted Net Income and Adjusted EPS for the reported quarter.
- Reconciliation tables for Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, and Free Cash Flow.
- Segment revenue, segment year-over-year change, segment sequential change, and segment profitability.
- Operating cash flow.
- Capital expenditures for the reported quarter.
- Cash, cash equivalents, total debt, and net debt balances.
- Share repurchases and dividends.
- Reported prior-quarter figures for the listed financial metrics.
- Prior-quarter outlook, so no comparison with prior guidance is available.
- Guidance for gross margin and operating expenses.
- Full six-month financial statement figures beyond the truncated filing text.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.