Public Policy Holding Company, Inc.
For the period ended Sep 30, 2026. Filed Nov 10, 2026.
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Sep 30, 2026 · Filed Nov 10, 2026
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Consolidated Results of Operations
The table below presents the detailed components of our consolidated income statement:
| Income Statements | Three months ended September 30, | |||
|---|---|---|---|---|
| 2026 | 2025 | % Variance | $ Variance | |
| Revenue | $55.2 | $48.8 | 13.2% | $6.4 |
| Operating expenses: | ||||
| Staff cost - direct | 26.9 | 24.3 | 10.8% | 2.6 |
| Share-based accounting charge - direct | 6.5 | 6.7 | (2.2)% | (0.1) |
| Long term incentive program charges - direct | 1.7 | 1.6 | 4.3% | 0.1 |
| Post-combination compensation - direct | 6.7 | 4.0 | 69.0% | 2.7 |
| Bonus - direct | 5.3 | 5.4 | (3.2)% | (0.2) |
| Salaries and other personnel costs | 47.0 | 41.9 | 12.2% | 5.1 |
| Amortization expense – technology | 0.1 | 0.1 | (0.0)% | (0.0) |
| Office costs | 2.1 | 1.8 | 18.3% | 0.3 |
| Office and other direct costs | 2.2 | 1.9 | 17.0% | 0.3 |
| Cost of services | 49.3 | 43.9 | 12.4% | 5.4 |
| Staff cost - indirect | 2.3 | 1.7 | 41.3% | 0.7 |
| Share-based accounting charge - indirect | 0.7 | 0.7 | (1.1)% | (0.0) |
| Long term incentive program charges - indirect | 1.1 | 0.3 | 214.6% | 0.7 |
| Non-staff costs | 6.4 | 5.3 | 21.2% | 1.1 |
| Bonus - indirect | (0.7) | (1.1) | 40.5% | 0.5 |
| Salaries, general and administrative | 9.9 | 6.9 | 43.2% | 3.0 |
| Mergers and acquisitions expense | 0.9 | 0.1 | 611.6% | 0.8 |
| Amortization | 1.7 | 1.5 | 15.8% | 0.2 |
| Depreciation | 0.1 | 0.1 | 5.3% | 0.0 |
| Depreciation and amortization expense | 1.8 | 1.6 | 15.5% | 0.2 |
| Change in fair value of contingent consideration | 1.7 | 2.3 | (27.3)% | (0.6) |
| Total operating expenses | 63.5 | 54.7 | 16.1% | 8.8 |
| Loss from operations | (8.3) | (5.9) | (40.6)% | (2.4) |
| Gain on bargain purchase | 9.8 | — | — | 9.8 |
| Other income (expense), net | (0.1) | (0.0) | (1,460.8)% | (0.1) |
| Interest income | 0.0 | 0.0 | (52.1)% | (0.0) |
| Interest expense | (0.7) | (1.0) | 28.9% | 0.3 |
| Net income (loss) before income taxes | 0.7 | (6.9) | 110.2% | 7.6 |
| Income tax expense (benefit) | 0.5 | 0.6 | (19.5)% | (0.1) |
| Net income (loss) | $0.2 | $(7.4) | 103.2% | $7.7 |
| Income Statements | Nine months ended September 30, | |||
|---|---|---|---|---|
| 2026 | 2025 | % Variance | $ Variance | |
| Revenue | $157.5 | $136.7 | 15.2% | $20.8 |
| Operating expenses: | ||||
| Staff cost - direct | 77.9 | 67.9 | 14.7% | 10.0 |
| Share-based accounting charge - direct | 19.7 | 20.0 | (1.6)% | (0.3) |
| Long term incentive program charges - direct | 2.7 | 3.8 | (28.5)% | (1.1) |
| Post-combination compensation - direct | 13.7 | 12.7 | 7.8% | 1.0 |
| Bonus - direct | 11.0 | 10.1 | 8.6% | 0.9 |
| Salaries and other personnel costs | 125.0 | 114.6 | 9.1% | 10.4 |
| Amortization expense – technology | 0.4 | 0.4 | (0.0)% | (0.0) |
| Office costs | 5.6 | 4.8 | 16.9% | 0.8 |
| Office and other direct costs | 6.0 | 5.2 | 15.5% | 0.8 |
| Cost of services | 131.0 | 119.8 | 9.4% | 11.2 |
| Staff cost - indirect | 6.3 | 5.7 | 9.2% | 0.5 |
| Share-based accounting charge - indirect | 2.2 | 2.2 | (0.9)% | (0.0) |
| Long term incentive program charges - indirect | 2.1 | 0.8 | 159.0% | 1.3 |
| Non-staff costs | 19.2 | 14.1 | 36.0% | 5.1 |
| Bonus - indirect | 1.5 | 1.0 | 44.1% | 0.5 |
| Salaries, general and administrative | 31.2 | 23.9 | 30.6% | 7.3 |
| Mergers and acquisitions expense | 2.0 | 0.4 | 387.0% | 1.6 |
| Amortization | 4.6 | 4.2 | 10.4% | 0.4 |
| Depreciation | 0.2 | 0.1 | 5.3% | 0.0 |
| Depreciation and amortization expense | 4.8 | 4.3 | 10.3% | 0.4 |
| Change in fair value of contingent consideration | 8.8 | 4.9 | 78.8% | 3.9 |
| Total operating expenses | 177.8 | 153.4 | 15.9% | 24.5 |
| Loss from operations | (20.4) | (16.7) | (22.0)% | (3.7) |
| Gain on bargain purchase | 10.7 | — | — | 10.7 |
| Other income (expense), net | 0.2 | (0.0) | 696.5% | 0.2 |
| Interest income | 0.3 | 0.1 | 215.2% | 0.2 |
| Interest expense | (2.2) | (2.5) | 10.3% | 0.3 |
| Net income (loss) before income taxes | (11.4) | (19.1) | 40.2% | 7.7 |
| Income tax expense (benefit) | 3.6 | 4.7 | (23.8)% | (1.1) |
| Net income (loss) | $(15.0) | $(23.8) | 37.0% | $8.8 |
Revenue
Refer to Note 2 - Revenue in this Form 10-Q for our revenue recognition policy.
The components of fluctuations in revenue by reportable segment for the three and nine months ended September 30, 2026 and 2025 were as follows:
| Three months ended September 30, | ||||||
|---|---|---|---|---|---|---|
| 2026 · 2025 | ||||||
| Revenue from acquisitions | Organic revenue | Total revenue | Total revenue | Organic Revenue Growth(1) | Total Growth | |
| Government Relations Consulting | $2.4 | $29.5 | $31.9 | $27.5 | 7.5% | 16.1% |
| Corporate Communications & Public Affairs Consulting | 1.6 | 17.9 | 19.5 | 18.0 | (0.8)% | 8.1% |
| Compliance and Insights Services | — | 3.8 | 3.8 | 3.3 | 16.3% | 16.3% |
| Total | $4.0 | $51.3 | $55.2 | $48.8 | 5.1% | 13.2% |
| Nine months ended September 30, | ||||||
|---|---|---|---|---|---|---|
| 2026 · 2025 | ||||||
| Revenue from acquisitions | Organic revenue | Total revenue | Total revenue | Organic Revenue Growth(1) | Total Growth | |
| Government Relations Consulting | $4.3 | $86.4 | $90.6 | $80.9 | 6.7% | 12.0% |
| Corporate Communications & Public Affairs Consulting | 10.2 | 45.8 | 55.9 | 46.2 | (0.9)% | 21.1% |
| Compliance and Insights Services | — | 10.9 | 10.9 | 9.6 | 14.0% | 14.0% |
| Total | $14.4 | $143.1 | $157.5 | $136.7 | 4.7% | 15.2% |
(1) Refer to the Non-GAAP Financial Measures section below for the Company’s definition of Organic Revenue Growth.
Our total revenue increased 13.2%, to $55.2 million for the three months ended September 30, 2026 compared to $48.8 million for the three months ended September 30, 2025, including Organic Revenue Growth of 5.1%.
Our total revenue increased 15.2%, to $157.5 million for the nine months ended September 30, 2026 compared to $136.7 million for the nine months ended September 30, 2025, including Organic Revenue Growth of 4.7%.
This performance was supported by increased client demand, particularly within our Compliance and Insights Services segment and Government Relations Consulting segment as well as sustained demand for Corporate Communications & Public Affairs Consulting. These increases demonstrate the stability of the Company’s core business operations, the dedication of our management teams across our member companies, and the critical importance of our work to our clients, with the balance of growth driven by the successful integration of our acquisitions of TrailRunner (completed April 1, 2025) and Pine Cove (completed August 1, 2025), and the ongoing integration of WPI (Completed April 1, 2026), Tancredi (Completed July 1, 2026), and TAP (completed August 1, 2026).
Organic growth of 4.7% for the nine months ended September 30, 2026 was primarily attributable to the strong organic growth in Compliance and Insights Services at 14.0%, as a result of high renewal rates, price increases, and new client wins, in combination with strong organic growth in our Government Relations segment at 6.7%, while offset by negative organic growth of 0.9% in our Corporate Communications & Public Affairs Consulting segment.
During the three months ended September 30, 2026, 57.8% of the Group’s revenues stemmed from Government Relations as compared to 56.3% in the same period in 2025, 35.3% came from Corporate Communications & Public Affairs as compared to 36.9% in the same period in 2025, and 6.9% from Compliance and Insights Services as compared to 6.7% in the same period in 2025.
During the nine months ended September 30, 2026, 57.5% of the Company’s revenues were attributable to our Government Relations segment as compared to 59.2% during the nine months ended September 30, 2025. That decrease was primarily a result of the TrailRunner acquisition which also led to an increase in our Corporate Communications & Public Affairs segment, which increased to 35.5% during the nine months ended September 30, 2026 compared to 33.8% in the prior year; 6.9% of our total revenues were from our Compliance and Insights Services segment, a slight decrease as compared to the previous year's 7.0%.
Our Government Relations Consulting segment’s revenue increased by 16.1%, to $31.9 million for the three months ended September 30, 2026, compared to $27.5 million as reported for the three months ended September 30, 2025. This increase reflects Organic Revenue Growth of 7.5% in tandem with the acquisitions of Pine Cove, WPI, and TAP.
Our Government Relations Consulting segment’s revenue increased by 12.0%, to $90.6 million for the nine months ended September 30, 2026, compared to $80.9 million as reported for the nine months ended September 30, 2025. This increase reflects Organic Revenue Growth of 6.7% in tandem with the acquisitions of Pine Cove, WPI, and TAP.
Our Corporate Communications & Public Affairs Consulting segment’s revenue increased by 8.1% to $19.5 million for the three months ended September 30, 2026, with negative organic growth of 0.8%, being offset by the impact of the acquisitions of WPI and Tancredi. This segment is impacted by the bi-annual pre-election slowdown which reduces project volumes in this segment. The segment margin of 25.5% reflects that lower project volume.
Our Corporate Communications & Public Affairs Consulting segment’s revenue increased by 21.1% to $55.9 million for the nine months ended September 30, 2026, compared to $46.2 million for the nine months ended September 30, 2025 with negative organic growth of 0.9%, being offset by the impact of the acquisitions of TrailRunner, WPI, and Tancredi.
Our Compliance and Insights Services segment’s revenue grew by 16.3% and 14.0% to $3.8 million and $10.9 million for the three and nine months ended September 30, 2026, compared to $3.3 million and $9.6 million for the three and nine months ended September 30, 2025, respectively. This growth was entirely organic, driven by increasing demand for specialized services, including compliance, grant writing, and research-driven policy insights, and characterized by high renewal rates, favorable pricing and new client wins, all together reflective of a unique and high value-added offering.
The Group's revenue realized outside of the U.S. was $5.1 million and $11.8 million, or 9.2% and 7.5%, for the three and nine months ended September 30, 2026, respectively, as compared to $2.4 million and $6.3 million, or 5.0% and 4.6%, for the three and nine months ended September 30, 2025, respectively, being a result of our growing international presence resulting from our Pagefield, WPI, TrailRunner, and Tancredi acquisitions.
Cost of Services
The table below presents the components of cost of services:
| Three months ended September 30, | Nine months ended September 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | $ Change | % Change | 2026 | 2025 | $ Change | % Change | |
| Salaries and other personnel costs | ||||||||
| Staff cost - direct | $26.9 | $24.3 | $2.6 | 10.8% | $77.9 | $67.9 | $10.0 | 14.7% |
| Share-based accounting charge - direct | 6.5 | 6.7 | (0.1) | (2.2)% | 19.7 | 20.0 | (0.3) | (1.6)% |
| Long term incentive program charges - direct | 1.7 | 1.6 | 0.1 | 4.3% | 2.7 | 3.8 | (1.1) | (28.5)% |
| Post-combination compensation - direct | 6.7 | 4.0 | 2.7 | 69.0% | 13.7 | 12.7 | 1.0 | 7.8% |
| Bonus - direct | 5.3 | 5.4 | (0.2) | (3.2)% | 11.0 | 10.1 | 0.9 | 8.6% |
| Total salaries and other personnel costs | 47.0 | 41.9 | 5.1 | 12.2% | 125.0 | 114.6 | 10.4 | 9.1% |
| Office and other direct costs | ||||||||
| Amortization developed software | 0.1 | 0.1 | (0.0) | (0.0)% | 0.4 | 0.4 | (0.0) | (0.0)% |
| Office costs | 2.1 | 1.8 | 0.3 | 18.3% | 5.6 | 4.8 | 0.8 | 16.9% |
| Total office and other direct costs | 2.2 | 1.9 | 0.3 | 17.0% | 6.0 | 5.2 | 0.8 | 15.5% |
| Cost of services | $49.3 | $43.9 | $5.4 | 12.4% | $131.0 | $119.8 | $11.2 | 9.4% |
Salaries and other personnel costs represent our largest component of cost of services. Its principal components include employee salaries and benefits, share-based accounting charges, long term incentive program charges, post-combination compensation expense, and employee bonuses from operations that deliver services to our clients.
For the three months ended September 30, 2026, salaries and other personnel costs increased by 12.2% or $5.1 million to approximately $47.0 million. The increase was driven by an increase in post-combination compensation - direct of $2.7 million and staff costs - direct of $2.6 million. Of the increase of $2.6 million in staff costs - direct, $1.1 million resulted from the acquisitions of Tancredi (completed July 1, 2026) and TAP (completed August 1, 2026), with the remainder being driven by our organic increase in headcount. The increase of $2.7 million in post-combination compensation - direct was primarily due to the acquisitions of Pine Cove (completed August 1, 2025), WPI (completed April 1, 2026), Tancredi, and TAP at $1.8 million.
For the nine months ended September 30, 2026, salaries and other personnel costs increased by 9.1% to $125.0 million compared to $114.6 million for the nine months ended September 30, 2025. The overall increase of $10.4 million was driven by staff costs increasing in the amount of $10.0 million, of which $7.5 million was due to the acquisitions of TrailRunner (completed April 1, 2025), Pine Cove, WPI, Tancredi, and TAP with the remainder being driven by our organic increase in headcount.
Office and other direct costs also represent a component of cost of services. Its principal component includes operating lease expenses for office space leased by the Company’s members and holding companies. Office and other direct costs increased by 17.0% and 15.5% in the three and nine months ended September 30, 2026, respectively, to $2.2 million and $6.0 million, respectively, compared to $1.9 million and $5.2 million for the three and nine months ended September 30, 2025, respectively. This increase was primarily resulted from the additional office spaces associated with the acquisitions completed in 2026 and 2025.
Salaries, general and administrative expenses
The table below presents the components of general and administrative expenses:
| Three months ended September 30, | Nine months ended September 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | $ Change | % Change | 2026 | 2025 | $ Change | % Change | |
| Non-staff costs | $6.4 | $5.3 | $1.1 | 21.2% | $19.2 | $14.1 | $5.1 | 36.0% |
| Staff cost - indirect | 2.3 | 1.7 | 0.7 | 41.3% | 6.3 | 5.7 | 0.5 | 9.2% |
| Share-based accounting charge - indirect | 0.7 | 0.7 | (0.0) | (1.1)% | 2.2 | 2.2 | (0.0) | (0.9)% |
| Long term incentive program charges - indirect | 1.1 | 0.3 | 0.7 | 214.6% | 2.1 | 0.8 | 1.3 | 159.0% |
| Bonus - indirect | (0.7) | (1.1) | 0.5 | 40.5% | 1.5 | 1.0 | 0.5 | 44.1% |
| Salaries, general and administrative | $9.9 | $6.9 | $3.0 | 43.2% | $31.2 | $23.9 | $7.3 | 30.6% |
Salaries, general and administrative expenses comprise general and administrative expenses, employee salaries, share-based accounting charges, long term incentive program charges, post-combination compensation expense, U.S. and UK public company and related costs, advisory costs, benefits and bonuses of employees employed in our corporate function.
Salaries, general and administrative expenses increased 43.2% in the three months ended September 30, 2026, to $9.9 million, compared to $6.9 million for the three months ended September 30, 2025. The increase of $3.0 million is primarily attributable to an increase of $1.5 million in audit, indirect staffing, insurance, consulting, and legal fees incurred primarily in relation to additional work performed in support of the Company's public listing activities. Additionally, the non-cash charges associated with the Company's long-term incentive program increased by $0.7 million, driven by the issuances in 2026. Finally, software licensing and IT consulting expense increased $0.4 million to expand the Company's technology footprint for supporting business growth and acquired entities.
Salaries, general and administrative expenses increased 30.6% in the nine months ended September 30, 2026, to $31.2 million, compared to $23.9 million for the nine months ended September 30, 2025. Of the $7.3 million increase, $3.4 million relates to the additional work performed in support of the Company's public listing activities as discussed above and $1.1 million relates to the acquisitions completed in 2026 and 2025. Non-cash long term incentive program charges increased by $1.3 million, due to new issuances in 2026; software licensing & IT consulting expense increased by $0.7 million, while bonus expense increased by $0.5 million due to improved company performance and increased headcount.
Mergers and acquisitions expense
The principal components of mergers and acquisitions expense include legal, audit and other advisory expenses, transaction taxes, and debt origination costs. Mergers and acquisitions expense increased by 611.6% in the three months ended September 30, 2026, to $0.9 million, compared to $0.1 million in the three months ended September 30, 2025. In the nine months ended September 30, 2026, Mergers and acquisitions expense increased by 387.0% to $2.0 million, compared to $0.4 million in the nine months ended September 30, 2025. The increases in Mergers and acquisitions expense are a direct result of the increase in acquisition volume in 2026, as well as the non-US nature of some of these acquisitions.
Depreciation and amortization expense
The table below presents the components of depreciation and amortization expense:
| Three months ended September 30, | Nine months ended September 30, | |||
|---|---|---|---|---|
| 2026 | 2025 | 2026 | 2025 | |
| Cost of services | ||||
| Amortization – technology | $0.1 | $0.1 | $0.4 | $0.4 |
| Charged to cost of services | 0.1 | 0.1 | 0.4 | 0.4 |
| Depreciation and amortization expense | ||||
| Amortization – customer relations companies acquired | 1.5 | 1.3 | 4.0 | 3.7 |
| Amortization – non-compete companies acquired | 0.3 | 0.2 | 0.6 | 0.5 |
| Depreciation | 0.1 | 0.1 | 0.2 | 0.1 |
| Charged to depreciation and amortization expense | 1.8 | 1.6 | 4.8 | 4.3 |
| Total depreciation and amortization expense | $1.9 | $1.7 | $5.2 | $4.7 |
The principal components of depreciation and amortization expense include the amortization of intangible assets related to customer relationships, developed technology, and non-compete contracts.
Depreciation and amortization expense increased by 14.2% in the three months ended September 30, 2026, to $1.9 million, compared to $1.7 million in the three months ended September 30, 2025. In the nine months ended September 30,
2026, depreciation and amortization expense increased by 9.3% to $5.2 million, compared to $4.7 million in the nine months ended September 30, 2025 reflecting additional costs associated with the acquisitions of completed in 2026 and 2025.
Change in fair value of contingent consideration
Contingent consideration represents a liability that is settled through a combination of cash and shares of our common stock based on the respective purchase agreement. The amount ultimately paid is dependent on the achievement of certain operating results.
Change in fair value of contingent consideration represents changes in obligations relating to historical acquisitions, to the extent those obligations are not subject to vesting or claw-back provisions.
Change in fair value of contingent consideration decreased by 27.3% in the three months ended September 30, 2026, to $1.7 million, compared to $2.3 million in the three months ended September 30, 2025. The decrease of $0.6 million is the result of a non-cash remeasurement of the acquisition-related earn-out liabilities that were revised based on updated performance forecasts and valuation assumptions that occurred in the three months September 30, 2025.
Change in fair value of contingent consideration increased by $3.9 million or 78.8% in the nine months ended September 30, 2026, to $8.8 million, compared to $4.9 million in the nine months ended September 30, 2025. The increase of $3.9 million is primarily the result of a non-cash remeasurement of the acquisition-related earn-out liabilities that were revised based on updated performance forecasts and valuation assumptions that occurred in the thee months ended December 31, 2025.
Gain on bargain purchase
Gain on bargain purchase comprises the difference between the fair value of the net identifiable assets acquired and the purchase price paid, where the purchase price is lower than the fair value of the acquired assets. A significant part of the purchase price of our acquisitions is tied to continued employment; this part has been accounted for as post-combination compensation in the Company's Consolidated Statements of Operations. As a consequence, for certain acquisitions, the remaining book purchase price is lower than the tax purchase price. The reason for the bargain purchase gain is tied directly to the tax purchase price significantly exceeding the book purchase price and is not a reflection of a true bargain purchase of the actual intangible and tangible assets of these acquisitions.
There was a $9.8 million and $10.7 million gain on bargain purchase for the three and nine months ended September 30, 2026, respectively, resulting primarily from the Company's acquisition of TAP, compared to none recognized in the three and nine months ended September 30, 2025.
Interest income
Interest income represents the interest income accrued on interest bearing accounts and financial instruments.
Interest income was less than $0.1 million and $0.3 million in the three and nine months ended September 30, 2026 as compared to less than $0.1 million and $0.1 million three and nine months ended September 30, 2025, respectively. The increase in interest income is driven by the Company's increased cash balance in interest bearing accounts as a result of the Company's 2026 U.S. IPO.
Interest expense
Interest expense represents the interest expense incurred under our Bank Credit Facilities as defined in Note 6. Notes Payable. Interest expense includes cash interest and debt discount amortization amounts.
Interest expense decreased by 28.9% and 10.3% in the three and nine months ended September 30, 2026, to $0.7 million and $2.2 million, respectively, compared to $1.0 million and $2.5 million in the three and nine months ended September 30, 2025, respectively, reflecting interest on decreased debt balances in 2026.
Segment Results of Operations
As discussed in Note 7. Segment Reporting, we have three reportable segments as of September 30, 2026, Government Relations Consulting, Corporate Communications & Public Affairs Consulting and Compliance and Insights Services. The results of operations of our segments are as follows(1):
| Three months ended September 30, · Nine months ended September 30, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | $ Change | % Change | 2026 | 2025 | Change | % Change | |
| Government Relations Consulting | ||||||||
| Revenue | $31.9 | $27.5 | $4.4 | 16.1% | $90.6 | $80.9 | $9.7 | 12.0% |
| Staff costs | 13.7 | 12.6 | 1.1 | 8.6% | 39.7 | 37.5 | 2.2 | 6.0% |
| Non-staff costs | 2.8 | 3.4 | (0.5) | (15.7)% | 8.1 | 7.7 | 0.4 | 5.4% |
| Segment Adjusted Pre-Bonus EBITDA | 15.4 | 11.5 | 3.9 | 33.5% | 42.8 | 35.8 | 7.0 | 19.6% |
| Segment Adjusted Pre-Bonus EBITDA Margin | 48.3% | 42.0% | 6.3 | pts | 47.2% | 44.2% | 3.0 | pts |
| Corporate Communications & Public Affairs Consulting | ||||||||
| Revenue | 19.5 | 18.0 | 1.5 | 8.1% | 55.9 | 46.2 | 9.8 | 21.1% |
| Staff costs | 11.5 | 10.4 | 1.1 | 10.7% | 33.4 | 27.1 | 6.3 | 23.0% |
| Non-staff costs | 3.0 | 2.1 | 0.9 | 40.6% | 8.5 | 6.3 | 2.2 | 35.1% |
| Segment Adjusted Pre-Bonus EBITDA | 5.0 | 5.5 | (0.5) | (9.4)% | 14.0 | 12.7 | 1.3 | 10.2% |
| Segment Adjusted Pre-Bonus EBITDA Margin | 25.5% | 30.4% | (4.9) | pts | 25.1% | 27.5% | (2.5) | pts |
| Compliance and Insights Services | ||||||||
| Revenue | 3.8 | 3.3 | 0.5 | 16.3% | 10.9 | 9.6 | 1.3 | 14.0% |
| Staff costs | 1.7 | 1.3 | 0.4 | 33.1% | 4.7 | 3.8 | 0.8 | 21.7% |
| Non-staff costs | 0.4 | 0.2 | 0.1 | 55.7% | 0.9 | 0.5 | 0.4 | 69.5% |
| Segment Adjusted Pre-Bonus EBITDA | 1.8 | 1.8 | (0.0) | (0.8)% | 5.3 | 5.2 | 0.1 | 2.7% |
| Segment Adjusted Pre-Bonus EBITDA Margin | 46.3% | 54.3% | (8.0) | pts | 48.9% | 54.3% | (5.4) | pts |
| Total | ||||||||
| Revenue | 55.2 | 48.8 | 6.4 | 13.2% | 157.5 | 136.7 | 20.8 | 15.2% |
| Segment Adjusted Pre-Bonus EBITDA | 22.1 | 18.8 | 3.3 | 17.7% | 62.2 | 53.7 | 8.5 | 15.8% |
| Segment Adjusted Pre-Bonus EBITDA margin | 40.1% | 38.5% | 1.6 | pts | 39.5% | 39.3% | 0.2 | pts |
| Unallocated corporate costs | (4.8) | (3.0) | (1.8) | (59.3)% | (13.4) | (9.6) | (3.9) | (40.5)% |
| Unallocated corporate costs % of revenue | (8.6)% | (6.1)% | (2.5) | pts | (8.5)% | (7.0)% | (1.5) | pts |
| Unallocated bonus expense | (4.6) | (4.3) | (0.3) | (6.7)% | (12.5) | (11.2) | (1.3) | (11.9)% |
| Unallocated bonus expense % of revenue | (8.3)% | (8.8)% | 0.5 | pts | (7.9)% | (8.2)% | 0.2 | pts |
| Adjusted EBITDA | $12.8 | $11.5 | $1.3 | 11.1% | $36.2 | $33.0 | $3.3 | 9.9% |
| Adjusted EBITDA Margin | 23.2% | 23.6% | (0.4) | pts | 23.0% | 24.1% | (1.1) | pts |
(1)Table may not sum due to immaterial rounding differences.
The staff costs for the three months ended September 30, 2026 for the Government Relations Consulting segment increased by $1.1 million, primarily a result of the acquisitions of TAP (completed August 1, 2026), WPI (completed April 1, 2026), and Pine Cove (completed August 1, 2025). Furthermore, for the three months ended September 30, 2026, the staff costs for the Corporate Communications & Public Affairs Consulting segment increased $1.1 million, primarily a result of the WPI and Tancredi (completed July 1, 2026) acquisitions.
The staff costs for the nine months ended September 30, 2026 for the Government Relations Consulting segment increased by $2.2 million, primarily a result of the acquisitions of Pine Cove, WPI and TAP. Furthermore, for the nine months ended September 30, 2026, the staff costs for the Corporate Communications & Public Affairs Consulting segment increased $6.3 million, which reflects the acquisitions of TrailRunner (completed April 1, 2025), WPI, and Tancredi.
Government Relations Consulting segment Adjusted Pre-Bonus EBITDA increased by $3.9 million, or 33.5% for the three months ended September 30, 2026, driven by $4.4 million higher revenue for the segment and $0.5 million reduction in non-staff costs, offset by increases of $1.1 million of staff costs as a result of increased business and the acquisitions of Pine Cove, WPI and TAP.
Government Relations Consulting segment Adjusted Pre-Bonus EBITDA increased by $7.0 million, or 19.6% for the nine months ended September 30, 2026, driven by $9.7 million higher revenue for the segment, offset by increases of $2.2 million of staff costs and $0.4 million of non-staff costs as a result of increased business and the acquisitions of Pine Cove, WPI, and TAP.
Corporate Communications & Public Affairs Consulting segment Adjusted Pre-Bonus EBITDA decreased by $0.5 million, or 9.4% for the three months ended September 30, 2026, as the acquisition of Tancredi partially offset the pre-election slowdown of project work. The segment margin of 25.5% reflects that lower project volume.
Corporate Communications & Public Affairs Consulting segment Adjusted Pre-Bonus EBITDA increased by $1.3 million, or 10.2% for the nine months ended September 30, 2026, reflecting the acquisitions of TrailRunner, WPI, and Tancredi offsetting the election-cycle induced slowdown in project volumes from elevated 2025 levels.
Compliance and Insights Services segment Adjusted Pre-Bonus EBITDA remained relatively flat with a decrease of 0.8% and an increase of 2.7% for the three and nine months ended September 30, 2026, respectively.
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