Q3 FY2026
Filed Nov 11, 2026ITG reports record Q3 2026 revenue of $461.5 million and Adjusted EBITDA of $64.5 million, and updates its FY 2026 outlook; GAAP net loss attributable to ITG of $6.1 million
Revenue grew 49% year-over-year and Adjusted EBITDA grew 64%, both reported as records, and Q3 free cash flow of $62.8 million compared with $26.2 million in Q3 2025. Offsetting this, Q3 GAAP net loss attributable to ITG was $(6,149) thousand, nine-month operating cash flow was negative at $(89,398) thousand, and contract assets rose to $369,791 thousand from $222,094 thousand at December 31, 2025.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, Q3 2026GAAP | $461.5M | – | 49% |
| Revenue, nine months 2026GAAP | $1.20B | – | – |
| Cost of revenue, excluding depreciation and amortization, Q3 2026GAAP | $375.6M | – | – |
| Cost of revenue, excluding depreciation and amortization, nine months 2026GAAP | $989.3M | – | – |
| Selling, general and administrative, Q3 2026GAAP | $39.70M | – | – |
| Selling, general and administrative, nine months 2026GAAP | $93.41M | – | – |
| Depreciation and amortization, Q3 2026GAAP | $21.88M | – | – |
| Depreciation and amortization, nine months 2026GAAP | $63.32M | – | – |
| Change in fair value of contingent liabilities, Q3 2026GAAP | $200K | – | – |
| Change in fair value of contingent liabilities, nine months 2026GAAP | $2.39M | – | – |
| Total costs and expenses (unlabeled subtotal as printed), Q3 2026GAAP | $437.4M | – | – |
| Total costs and expenses (unlabeled subtotal as printed), nine months 2026GAAP | $1.15B | – | – |
| Interest expense, Q3 2026GAAP | −$19.88M | – | – |
| Interest expense, nine months 2026GAAP | −$57.64M | – | – |
| Other expense, net, Q3 2026GAAP | −$1.48M | – | – |
| Other expense, net, nine months 2026GAAP | −$3.41M | – | – |
| Income (loss) before provision for income taxes, Q3 2026GAAP | $2.77M | – | – |
| Income (loss) before provision for income taxes, nine months 2026GAAP | −$9.35M | – | – |
| Provision for income taxes, Q3 2026GAAP | $2.24M | – | – |
| Provision for income taxes, nine months 2026GAAP | $1.49M | – | – |
| Net income (loss), Q3 2026GAAP | $528K | – | – |
| Net income (loss), nine months 2026GAAP | −$10.84M | – | – |
| Net income (loss) attributable to ITG, Inc., Q3 2026GAAP | −$6.15M | – | – |
| Net income (loss) attributable to ITG, Inc., nine months 2026GAAP | −$17.52M | – | – |
| Less: net income attributable to non-controlling interests, Q3 2026GAAP | $6.68M | – | – |
| Less: net income attributable to non-controlling interests, nine months 2026GAAP | $6.68M | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | $64.54M | – | 64% |
| Adjusted EBITDA, nine months 2026non-GAAP | $153.1M | – | – |
| Adjusted EBITDA Margin, Q3 2026non-GAAP | 14.0% | – | – |
| Adjusted EBITDA Margin, nine months 2026non-GAAP | 12.8% | – | – |
| Free Cash Flow, Q3 2026non-GAAP | $62.75M | – | – |
| Free Cash Flow, nine months 2026non-GAAP | $135.3M | – | – |
| Free Cash Flow Conversion, Q3 2026non-GAAP | 97.2% | – | – |
| Free Cash Flow Conversion, nine months 2026non-GAAP | 88.4% | – | – |
| Purchase of property and equipment (capital expenditures), Q3 2026GAAP | $1.79M | – | – |
| Purchase of property and equipment (capital expenditures), nine months 2026GAAP | $17.76M | – | – |
| Net cash (used in) provided by operating activities, nine months 2026GAAP | −$89.40M | – | – |
| NTM Backlog as of September 30, 2026other | $1.54B | – | – |
Q4 2026 and FY 2026 outlook
- RevenueQ4 2026: $378 million, +15% YoY; FY 2026: $1,578 million, +37% YoY
- Tax rateEffective Tax Rate: NM
- NoteAdjusted Net Income: NM for Q4 2026 and FY 2026 (non-GAAP)
- NoteAdjusted EBITDA: Q4 2026 $51 million, +31% YoY; FY 2026 $203 million, +37% YoY (non-GAAP)
- NoteAdjusted EBITDA Margin: Q4 2026 13.4%, +170 bps YoY; FY 2026 12.9%, +10 bps YoY (non-GAAP)
- NoteCapEx (% of Revenue): ~3.9% (forecast assumption)
- NoteNet Interest Expense: ~$72 million (forecast assumption)
- NoteDepreciation Expense: ~$53 million (forecast assumption)
- NoteAmortization Expense: ~$33 million (forecast assumption)
- NoteDiluted Shares Outstanding: ~48.5 million (forecast assumption)
- NoteCompany states it is not providing reconciliations of forward-looking non-GAAP measures because reconciliations are not available without unreasonable effort
Capital returns
- Repurchase of units: shown as a dash for nine months 2026 and $(7,065) thousand for nine months 2025 in the cash flow statement
- Distributions to members: $(338) thousand for nine months 2026 versus $(226,000) thousand for nine months 2025
- No dividend or share repurchase program amount is stated in the release
- Proceeds from issuance of Class A common stock sold in an IPO, net of underwriting discounts and commissions: $339,309 thousand for nine months 2026; payments of offering costs: $(14,211) thousand
- Deemed contribution related to tax receivable agreement: $5,883 thousand (noncash, nine months 2026); recording of amounts payable pursuant to tax receivable agreement: $50,163 thousand (noncash, nine months 2026)
What drove it
- The company states that Adjusted EBITDA margin improved both year-over-year and sequentially, reflecting higher activity levels, improved asset utilization and solid execution by its operating teams
- The company describes demand as broadly healthy across communications and digital infrastructure markets, with particular strength in broadband wireline infrastructure deployment
- The company states that strong new order activity included broadband fiber deployment awards with multiple new customers
- The company states that several new customer wins were confirmed in September
- Q3 2026 Adjusted EBITDA reconciliation includes restructuring, integration and business optimization costs of $6,744 thousand (versus $437 thousand in Q3 2025), which the company describes as non-recurring
- Q3 2026 Adjusted EBITDA reconciliation includes equity-based compensation of $10,300 thousand (versus $1,480 thousand in Q3 2025)
- Q3 2026 Adjusted EBITDA reconciliation includes transaction costs of $1,292 thousand (versus $1,818 thousand in Q3 2025)
Concerns
- Q3 2026 net income (loss) attributable to ITG, Inc. was $(6,149) thousand, compared with $827 thousand in Q3 2025, while Adjusted EBITDA was $64,542 thousand
- Nine-month 2026 net cash used in operating activities was $(89,398) thousand, compared with net cash provided of $26,893 thousand in nine months 2025
- Contract assets rose to $369,791 thousand as of September 30, 2026 from $222,094 thousand as of December 31, 2025, and accounts receivable rose to $183,110 thousand from $141,314 thousand
- Interest expense was $(57,639) thousand for nine months 2026 compared with $(29,665) thousand for nine months 2025
- Nine-month Adjusted EBITDA Margin was 12.8%, compared with 13.3% for nine months 2025 as printed
- Payables pursuant to the tax receivable agreement of $50,163 thousand were recorded in 2026
- Cash and cash equivalents were $160 thousand as of September 30, 2026
What to watch
- Delivery of the Q4 2026 guide of $378 million revenue and $51 million Adjusted EBITDA, against the Q3 2026 results of $461,528 thousand revenue and $64,542 thousand Adjusted EBITDA
- Conversion of the NTM Backlog of $1,539 million into revenue, given the company's statement that timing of revenue from backlog projects is subject to change
- Cash conversion: nine-month operating cash flow of $(89,398) thousand and the rise in contract assets
- Interest expense run rate against the guided net interest expense of ~$72 million, and the debt structure including the revolving line of credit of $77,000 thousand
- Effect of the tax receivable agreement payable of $50,163 thousand and the non-controlling interests of $234,614 thousand on future reported earnings
- Company disclosures on the Q3 2026 Commentary on the Investors section of the website and the earnings call on November 11, 2026 at 8:00 a.m. ET
Balance sheet and cash flow
- Cash and cash equivalents: $160 thousand as of September 30, 2026 versus $3,719 thousand as of December 31, 2025
- Accounts receivable, net: $183,110 thousand as of September 30, 2026 versus $141,314 thousand as of December 31, 2025
- Contract assets: $369,791 thousand as of September 30, 2026 versus $222,094 thousand as of December 31, 2025
- Total current assets: $582,701 thousand versus $384,437 thousand (September 30, 2026 versus December 31, 2025)
- Intangible assets, net: $188,512 thousand versus $211,383 thousand; goodwill: $195,038 thousand versus $187,748 thousand
- Deferred tax assets: $45,633 thousand as of September 30, 2026 versus a dash as of December 31, 2025
- Total assets: $1,221,478 thousand as of September 30, 2026 versus $975,837 thousand as of December 31, 2025
- Accounts payable: $75,107 thousand versus $41,221 thousand; accrued expenses: $66,006 thousand versus $57,245 thousand
- Revolving line of credit: $77,000 thousand as of September 30, 2026 versus $30,000 thousand as of December 31, 2025
- Term loans, net (non-current): $411,885 thousand versus $623,463 thousand; current portion of term loans: a dash versus $16,500 thousand
- Equipment loans, net (non-current): $85,331 thousand versus $65,804 thousand; current portion of equipment loans: $24,902 thousand versus $22,493 thousand
- Payables pursuant to the tax receivable agreement: $50,163 thousand as of September 30, 2026 versus a dash as of December 31, 2025
- Total liabilities: $857,059 thousand versus $932,092 thousand
- Total equity attributable to ITG, Inc. / ITG Parent: $129,805 thousand versus $43,745 thousand (members' equity at December 31, 2025)
- Non-controlling interests: $234,614 thousand as of September 30, 2026; total equity: $364,419 thousand versus $43,745 thousand
- Class A common stock: 48,465,158 shares issued and outstanding as of September 30, 2026; Class B common stock: 75,712,686 shares issued and outstanding as of September 30, 2026
- Nine months 2026 investing: purchase of property and equipment $(17,761) thousand; acquisitions, net of cash acquired $(18,440) thousand (versus $(50,921) thousand)
- Nine months 2026 net cash provided by financing activities: $120,374 thousand versus $74,973 thousand; proceeds from line of credit $606,000 thousand; payments made on term loans $(237,251) thousand
- Cash paid for interest: $57,248 thousand for nine months 2026 versus $21,819 thousand for nine months 2025; cash paid for taxes, net of refunds: $1,602 thousand versus $6,407 thousand
- Net decrease in cash and cash equivalents: $(3,559) thousand for nine months 2026 versus net increase of $11,046 thousand for nine months 2025
- Equity-based compensation (cash flow add-back): $12,639 thousand for nine months 2026 versus $2,751 thousand for nine months 2025; the release does not state a separate cash impact
Analysis
ITG reported Q3 2026 revenue of $461,528 thousand, up 49% from $309,174 thousand in Q3 2025, and Adjusted EBITDA of $64,542 thousand, up 64% from $39,333 thousand. The company describes both as record levels. Adjusted EBITDA Margin was 14.0% in Q3 2026 against 12.7% in Q3 2025. The company attributes the margin improvement to higher activity levels, improved asset utilization and execution by its operating teams. Nine-month revenue was $1,200,083 thousand against $826,966 thousand, and nine-month Adjusted EBITDA Margin was 12.8% against 13.3% in the prior-year nine months, so the margin trend is not uniform across the year as printed.
The GAAP picture is weaker than the non-GAAP one. Q3 2026 net income attributable to ITG, Inc. was $(6,149) thousand against $827 thousand a year earlier, and nine-month net loss attributable to ITG was $(17,519) thousand against net income of $14,006 thousand. Interest expense rose to $(19,880) thousand in Q3 2026 from $(15,920) thousand, and $(57,639) thousand for nine months 2026 from $(29,665) thousand. Selling, general and administrative expense rose to $39,696 thousand from $20,626 thousand in the quarter, and equity-based compensation and restructuring, integration and business optimization costs are both larger in the Adjusted EBITDA reconciliation than a year earlier. Q3 2026 also carries a $6,677 thousand net income attributable to non-controlling interests, which the release does not explain further.
Cash generation is mixed. Q3 2026 free cash flow was $62,750 thousand against $26,187 thousand, and Q3 free cash flow conversion was 97.2% against 66.6%. Nine-month operating cash flow, however, was $(89,398) thousand against $26,893 thousand. The balance sheet shows contract assets of $369,791 thousand against $222,094 thousand at December 31, 2025, and accounts receivable of $183,110 thousand against $141,314 thousand, so working capital absorbed cash over the nine months. Cash and cash equivalents were $160 thousand at September 30, 2026. Total debt-related lines included a revolving line of credit of $77,000 thousand, non-current term loans of $411,885 thousand, and non-current equipment loans of $85,331 thousand. The company also recorded a $50,163 thousand payable under its tax receivable agreement and a $45,633 thousand deferred tax asset.
The company's NTM Backlog was $1,539 million at September 30, 2026, against $1,209 million a year earlier and $1,517 million at June 30, 2026. The release describes the backlog as supporting revenue visibility, and states that the timing of revenue from backlog projects is subject to change. The FY 2026 outlook now shows revenue of $1,578 million, +37% year-over-year, and Adjusted EBITDA of $203 million, +37%. The Q4 2026 outlook shows revenue of $378 million, +15%, and Adjusted EBITDA of $51 million, +31%. Adjusted EBITDA Margin is guided at 13.4% for Q4 2026 (+170 bps) and 12.9% for FY 2026 (+10 bps). The release does not give a prior outlook, so the company's statement that results exceeded the prior outlook cannot be checked against figures in this filing.
The release contains no segment or product line revenue breakdown, no gross margin figure, no EPS, and no prior-year comparison for several nine-month and balance sheet lines. Those gaps are listed in missing_items.
Management, verbatim
Revenue and Adjusted EBITDA reached record levels and exceeded the outlook we provided last quarter. Adjusted EBITDA margin also improved both year-over-year and sequentially, reflecting higher activity levels, improved asset utilization and solid execution by our operating teams.
Andy Parrott, Chief Executive Officer
We enter the fourth quarter with substantial revenue visibility and are actively exploring opportunities for partnerships with new customers, including several new wins confirmed in September. Our priorities remain focused on executing for our customers, converting awarded work into profitable revenue, improving cash conversion and focusing on disciplined capital allocation.
Andy Parrott, Chief Executive Officer
Not in the filing
stated, not guessed- Segment or business line revenue breakdown: the release contains no segment, product line or geographic revenue disclosure
- Gross margin: the release does not print a gross margin figure
- Operating income (loss): no operating income subtotal is printed in the statement of operations
- GAAP and diluted earnings per share: no EPS figure is printed in the release
- Year-over-year percentage change for Q3 2026 net income, net income attributable to ITG, operating cash flow, free cash flow, Adjusted EBITDA Margin and capital expenditures: not printed
- Year-over-year percentage change for nine-month revenue, Adjusted EBITDA, free cash flow and related lines: not printed
- Year-over-year and quarter-over-quarter change for NTM Backlog: the release prints the backlog levels but no percentage change
- Prior outlook for Q3 2026 and FY 2026: the previous release outlook was not provided, so vs_prior_guidance is empty and the claim that Q3 results exceeded the outlook provided last quarter cannot be verified from the document
- Gross, operating and quarterly comparisons for balance sheet lines: balance sheet comparisons are to December 31, 2025, not to a prior quarter, and the release prints no quarter-end balance sheet for June 30, 2026
- Explanation of the non-controlling interests net income of $6,677 thousand beyond its printed amount
- Share repurchase program or dividend amounts: none are printed
- Consensus estimates, analyst expectations, price targets and share price reaction: not in the document
- Adjusted Net Income figures for Q3 2026 and prior periods: the reconciliation printed does not include an Adjusted Net Income line, and the outlook shows NM
- Effective tax rate: the outlook shows NM and no effective tax rate is printed for the reported periods
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.