Q2 FY2026
Filed Aug 10, 2026Continued Revenue Growth and Disciplined M&A Execution in First Half of 2026; Raises Full Year 2026 Guidance to Reflect Recent Acquisitions
Q2 revenue and organic revenue grew and full-year guidance was raised following acquisitions, but Q2 Adjusted EBITDA, Adjusted Net Income and Adjusted EPS declined versus Q2 2025.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, Q2 2026other | $52.1 million | – | 7.3% |
| Organic revenue growth, Q2 2026non-GAAP | 3.9% | – | 3.9% |
| GAAP net loss, Q2 2026GAAP | $3.7 million | – | an improvement of 34.8% |
| Adjusted EBITDA, Q2 2026non-GAAP | $12.3 million | – | down 4.4% |
| Adjusted EBITDA margin, Q2 2026non-GAAP | 23.5% | margins improving sequentially from Q1 to Q2 | – |
| Adjusted Net Income, Q2 2026non-GAAP | $10.6 million | – | down 11.0% |
| GAAP basic and diluted loss per share, Q2 2026GAAP | $0.19 | – | an improvement |
| Adjusted EPS, fully diluted, Q2 2026non-GAAP | $0.34 | – | – |
| Revenue, H1 2026other | $102.3 million | – | 16.3% |
| Organic Revenue growth, H1 2026non-GAAP | 4.4% | – | 4.4% |
| GAAP Net Loss, H1 2026GAAP | $15.2 million | – | – |
| Adjusted EBITDA, H1 2026non-GAAP | $23.4 million | – | up 9.3% |
| Adjusted EBITDA margin, H1 2026non-GAAP | 22.9% | – | – |
| Adjusted Net Income, H1 2026non-GAAP | $17.9 million | – | up 15.3% |
| GAAP Basic and diluted loss per share, H1 2026GAAP | $0.68 | – | an improvement |
| Adjusted EPS, fully diluted, H1 2026non-GAAP | $0.59 | – | – |
| Net Debt, Q2 2026other | $5.2 million | – | – |
| Top 10 Group clients as a percentage of revenue, H1 2026other | 7.5% | – | – |
| Corporate Communications & Public Affairs segment share of total revenue, H1 2026other | 35.7% | – | – |
| Employees, H1 2026other | 476 employees | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Government Relations ConsultingGrowth reflected continued organic growth of 6.3% together with the acquisitions of Pine Cove Strategies, LLC and Westminster Policy Partners Limited. Segment Adjusted pre-bonus EBITDA margin marginally increased to 46.7%, reflecting consistent pricing of retainer contracts at U.S. Federal and State level. | Not reported | – | 9.8% |
| Corporate Communications & Public Affairs ConsultingGrowth was driven by the acquisitions of TrailRunner International, LLC and Westminster Policy Partners Limited, offset by organic growth that was down 0.9%. Segment Adjusted pre-bonus EBITDA margin decreased by 0.9pts to 24.8%, reflecting acquired revenues with operating margins lower than the Group's average. | Not reported | – | 29.5% |
| Compliance and Insights ServicesGrowth was reported and organic, driven by high renewal rates, price increases and new client wins. Segment Adjusted pre-bonus EBITDA margin was 50.2%, reflecting subscription-contract pricing and increased use of technology in servicing clients. | Not reported | – | 12.8% |
Full year 2026 outlook
- Revenue$213 million to $216 million
- NoteAdjusted EBITDA in the range of $48.5 million to $50.5 million
- Noteadjusted margin between 22.5% and 23.5%
- NoteOrganic Revenue Growth of approximately 5%
- NoteGuidance continues to exclude the impact of any future acquisitions.
Capital returns
- Dividend of $7.0 million paid in Q2 on 2025 results, one of two semi-annual payments.
What drove it
- Q2 revenue increased 7.3% over Q2 2025 and organic revenue growth was 3.9%.
- H1 revenue increased 16.3% over H1 2025 and organic Revenue growth was 4.4%.
- PPHC completed the acquisition of Westminster Policy Partners Limited on April 1, 2026.
- Post-period, PPHC completed the acquisition of Tancredi Intelligent Communication Ltd on July 1, 2026 and The Advocacy Partners on August 1, 2026.
- The client base grew to approximately 1,500, including representations of approximately half of the Fortune 100.
- The top 10 Group clients represented 7.5% of revenue in H1 2026, compared with 9.4% in H1 2025.
Concerns
- Q2 Adjusted EBITDA was down 4.4% over Q2 2025, reflecting a particularly strong prior-year comparable period, incremental public company costs following the January 2026 U.S. IPO and, to a lesser extent, a shift in business mix.
- Q2 Adjusted Net Income was down 11.0% over Q2 2025.
- Q2 Adjusted EPS, fully diluted was $0.34 compared to $0.45 in Q2 2025, reflecting the higher share count following the January 2026 U.S. IPO.
- Corporate Communications & Public Affairs Consulting organic growth was down 0.9%, and its Segment Adjusted pre-bonus EBITDA margin decreased by 0.9pts to 24.8%.
- Net Debt was $5.2 million in Q2 versus $1.8 million in Q1.
What to watch
- Execution against full-year revenue guidance of $213 million to $216 million and Adjusted EBITDA guidance of $48.5 million to $50.5 million.
- Whether Adjusted EBITDA margin progresses toward the stated 25% target as recently acquired businesses scale and the Company absorbs its first full year of U.S. public company costs.
- The contribution of the acquisitions completed and announced in 2026, which management stated drove the guidance increase.
- Organic Revenue Growth of approximately 5%, which is unchanged in the full-year outlook.
- The mix and margin development in Corporate Communications & Public Affairs Consulting following acquired revenue contribution.
Balance sheet and cash flow
- Net Debt remains low at $5.2 million in Q2 (Q1: $1.8 million).
- The proceeds from the U.S. IPO enhanced the Company's ability to execute on its acquisition strategy.
Analysis
PPHC reported Q2 revenue of $52.1 million, up 7.3% over Q2 2025, with organic revenue growth of 3.9%. H1 revenue reached $102.3 million, up 16.3%, while H1 organic Revenue growth was 4.4%. Management characterized the revenue base as highly diversified, with approximately 1,500 clients and the top 10 Group clients representing 7.5% of H1 revenue compared with 9.4% in H1 2025.
Profitability was mixed in the quarter. Q2 Adjusted EBITDA of $12.3 million was down 4.4% over Q2 2025 at a 23.5% margin, although management said margins improved sequentially from Q1 to Q2. The release attributed the year-over-year EBITDA decline to a particularly strong prior-year comparison, incremental public company costs following the January 2026 U.S. IPO, and to a lesser extent a shift in business mix. Q2 Adjusted Net Income fell 11.0% to $10.6 million and Adjusted EPS, fully diluted was $0.34 compared to $0.45 in Q2 2025. H1 Adjusted EBITDA nevertheless rose 9.3% to $23.4 million at a 22.9% margin.
Segment performance highlights both organic momentum and acquisition-led growth. Government Relations Consulting grew 9.8% in H1, including 6.3% organic growth, and its Segment Adjusted pre-bonus EBITDA margin marginally increased to 46.7%. Corporate Communications & Public Affairs Consulting increased 29.5%, but organic growth was down 0.9% and the margin declined by 0.9pts to 24.8% because acquired revenues carried lower operating margins than the Group average. Compliance and Insights Services grew 12.8% on a reported and organic basis, supported by renewals, pricing and new wins, with a 50.2% Segment Adjusted pre-bonus EBITDA margin.
Capital allocation remained centered on acquisitions and dividends. PPHC completed WPI on April 1, 2026, then completed Tancredi on July 1, 2026 and The Advocacy Partners on August 1, 2026. The Company paid a $7.0 million dividend in Q2 on 2025 results. Net Debt was $5.2 million in Q2, compared with $1.8 million in Q1.
The Company raised full-year 2026 revenue guidance to $213 million to $216 million from $205 million to $209 million and Adjusted EBITDA guidance to $48.5 million to $50.5 million from $46 million to $48 million. The Adjusted EBITDA margin outlook rose to between 22.5% and 23.5% from 22% to 23%, while Organic Revenue Growth guidance remained approximately 5%. Management said the increase is attributable to completed and announced acquisitions and that its underlying-business outlook is unchanged; the guidance excludes future acquisitions.
Management, verbatim
Our performance in the first half of 2026 demonstrates the strength of the platform we have built.
Stewart Hall, CEO of PPHC
We continue to manage the business back towards our 25% Adjusted EBITDA margin target as recently acquired businesses scale and as we absorb the first full year of U.S. public company costs.
Roel Smits, CFO of PPHC
Not in the filing
stated, not guessed- GAAP gross profit and GAAP gross margin
- GAAP operating income or loss and operating margin
- GAAP operating expenses
- GAAP income tax expense or benefit and tax rate
- GAAP and non-GAAP cash flow from operations
- Free cash flow or Adjusted Free Cash Flow
- Cash balance
- Total debt balance
- Share repurchases
- Q2 2026 segment revenue for Government Relations Consulting, Corporate Communications & Public Affairs Consulting, and Compliance and Insights Services
- Prior-year values for Q2 Adjusted EBITDA, Adjusted Net Income and Adjusted EBITDA margin
- Prior-year values for H1 Adjusted EBITDA, Adjusted Net Income and Adjusted EBITDA margin
- Q1 2026 values for revenue, GAAP net loss, Adjusted EBITDA, Adjusted Net Income and EPS
- Prior quarterly outlook section for a formal comparison of reported results with prior guidance
- Forward GAAP reconciliation for non-GAAP guidance
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.