Revenue growth of 27.5% with organic revenue growth of 5.1% compared to Q1 2025
Completed significant talent additions, and announced an acquisition which closed in Q2 2026
PPHC added to Russell 2000® and Russell 3000® Indices as of March 23, 2026
Net Debt reduced to $1.8 million following U.S. IPO
WASHINGTON, May 12, 2026 (GLOBE NEWSWIRE) -- Public Policy Holding Company, Inc. ("PPHC," "Company," "Group") (NASDAQ:PPHC), a leading global strategic communications provider offering a comprehensive range of advisory services in the areas of Government Relations, Corporate Communications, and Public Affairs, today reported unaudited financial results for the quarter ended March 31, 2026 ("Q1 2026").
Q1 2026 Financial Highlights
Revenue increased 27.5% over Q1 2025 to $50.1 million.
Organic Revenue growth 5.1%, driven by strong growth in each of our three segments.
GAAP Net Loss of $11.5 million compared to $10.6 million in Q1 2025.
Adjusted EBITDA of $11.2 million, up 29.7% over Q1 2025, achieved at a 22.3% margin.
Adjusted Net Income of $7.4 million, up 100.5% over Q1 2025.
GAAP Basic and diluted loss per share of $0.49 an improvement as compared to $0.63 in Q1 2025.
Adjusted EPS, fully diluted of $0.25 was up $0.11 or 74.5%.
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA Incl. M&A expense, Adjusted net income, Adjusted EPS, fully diluted, Organic Revenue Growth and Adjusted Free Cash Flow, are non-GAAP financial measures, as defined and reconciled to the nearest related GAAP measure below.
Stewart Hall, CEO of PPHC, commented:
"PPHC delivered its strongest quarter to date for both revenue and Adjusted EBITDA, reflecting continued organic growth and the accelerating contribution from recent acquisitions. Our strategy remains focused on building a differentiated group of companies with complementary capabilities, expanded geographic reach, and strong intercompany synergies, while maintaining the financial flexibility to pursue additional M&A and strategic hires.
The U.S. listing has further increased PPHC's visibility and strengthened our pipeline of opportunities, both for acquisitions and senior talent. In a complex political, regulatory, and reputational environment, clients are increasingly seeking integrated counsel across multiple spheres of influence, and we believe PPHC is uniquely positioned to meet that need. I want to thank our people across the Group for their continued commitment to our clients and to the long-term growth of PPHC."
Roel Smits, CFO of PPHC, Commentary and Financial Guidance:
"With the completion of our January capital raise and U.S. IPO, PPHC has entered the next phase of growth from a position of strength. Our balance sheet flexibility allows us to pursue earnings-accretive acquisitions while our strong cashflow allows us to continue investing in organic growth initiatives. Momentum in Q4 and now also Q1 has set us up well for a successful 2026.
In general, PPHC expects to continue growing revenue at an average organic rate of approximately 5%, and that this will be supplemented by acquisitions. For 2026, we anticipate reported revenue in the range between $205 million and $209 million. While we continue to target Adjusted EBITDA at a margin around 25%, based on our current business mix and ambitions, in 2026 we will experience the impact from assuming U.S. public company costs and certain technology investments and therefore we anticipate Adjusted EBITDA in a range between $46 million and $48 million, reflecting an adjusted margin between 22% and 23%. The guidance above excludes the impact of any future acquisitions.
Our focus continues to be on driving client retention rates, new business generation, and the continued cross-selling of services across the member companies to support organic growth prospects, with each of these factors impacting our organic growth result.
The market for Strategic Communications services in key geographies remains fragmented. Management continues to view the Group as a natural consolidator, and the pipeline of acquisition opportunities under development in the U.S., U.K., and mainland Europe remains robust. The Group is actively seeking to expand its portfolio of member companies with strategically and financially attractive opportunities while adding complementary specializations."
Conference Call Webcast Information
PPHC management will host a conference call to discuss the Company's financial results today at 4:30 p.m. Eastern Time. The call will be led by Stewart Hall, Chief Executive Officer, Roel Smits, Chief Financial Officer, and Thomas Gensemer, Chief Strategy Officer.
Date: Tuesday, May 12, 2026Time: 4:30 p.m. Eastern TimeWebcast: Participants may access the conference call via live webcast at https://edge.media-server.com/mmc/p/gokedwqh.Dial-in: To participate via telephone, please register in advance and receive a unique PIN at https://register-conf.media-server.com/register/BIf176e8d11b894d379f0e896523d8a879.
A replay of the webcast of the conference call will be available on the Investor Relations section of the Company's website at investors.pphcompany.com.
Operational Highlights
Significant progress in line with the Group's stated growth strategy, with earnings accretive acquisitions providing an enhanced complementary range of services to the Group's international client base:
Organically, the Group recorded 5.1% growth in revenue for Q1 2026 year-on-year which represents a step-up from the 4.7% growth in Q1 2025, attributable to increases across our three segments.
Announced the acquisition of WPI Strategy and made other significant hires across the group, expanding group-wide capabilities in Corporate Communications and providing cross-referral revenue opportunities.
Revenue remained diversified with the top 10 Group clients representing 8.0% of revenue in Q1 2026 versus 9.0% in Q1 2025; and revenue mix by segment was further diversified with the Corporate Communications & Public Affairs segment, our second largest reporting segment, growing to represent 36.5% of total revenue in Q1 2026 (Q1 2025: 25.5%).
The Group ended Q1 2026 with a client base of approximately 1,500, with representations of approximately a quarter of the Fortune 100 in addition to many more via trade associations, underlining that our retention rates remain high.
First Quarter 2026 Segment Results
Government Relations Consulting grew at 8.4% for Q1 2026, as compared to Q1 2025 as a consequence of continued organic growth of 5.2% in tandem with the acquisition of Pine Cove Strategies, LLC ("Pine Cove") (2025 Q3). The margin of Segment Adjusted pre-bonus EBITDA remained relatively stable at 45.5%, reflecting the stable pricing of retainer contracts both at U.S. Federal and State level.
Corporate Communications & Public Affairs Consulting increased by 82.7% for Q1 2026, as compared to Q1 2025 as a consequence of continued strong organic growth of 3.3%, in tandem with the acquisition of TrailRunner International, LLC ("TrailRunner") (2025 Q2). The margin of Segment Adjusted pre-bonus EBITDA increased significantly from 22.4% in Q1 2025 to 26.2% in Q1 2026, reflecting the operating leverage effects of realizing higher revenues, although still operating at margins that are lower than the Group's average.
Compliance and Insights Services continued its strong growth at 10.8% for Q1 2026, as compared to Q1 2025 (reported and organic) as a result of high renewal rates, price increases, and new client wins, all together reflective of a unique and high value-added offering. The margin of Segment Adjusted pre-bonus EBITDA further improved to 50.2%, reflecting the strong pricing of subscription contracts in this area, in combination with the increased use of technology in servicing our clients.
About PPHC
Incorporated in 2014, PPHC is a global strategic communications platform that supports clients in enhancing and defending their reputations, advancing policy objectives, managing regulatory risk, and engaging with federal and state-level policymakers, stakeholders, media, and the public.
Engaged by approximately 1,500 clients, including companies, trade associations and non-governmental organizations, PPHC is active in all major sectors of the economy, including healthcare and pharmaceuticals, financial services, energy, technology, telecoms and transportation.
With operations across 18 offices in the United States and internationally, PPHC's services include government relations, public affairs and corporate communications, research and analytics, digital advocacy campaigning, and compliance support. The Company's shares are admitted to trading on the Nasdaq Global Market and on AIM, a market operated by the London Stock Exchange, under the ticker symbol "PPHC".
For more information, visit www.pphcompany.com.
Financial Review
Certain monetary amounts, percentages and other figures included elsewhere in this earnings release have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables or charts may not be the arithmetic aggregation of the figures that precede them, and figures expressed as percentages in the text may not total 100% or, as applicable, when aggregated may not be the arithmetic aggregation of the percentages that precede them.
Adjusted Profit & Loss Statement
(Amounts in millions, except per share data)
Three months ended March 31,
2026
2025
$ Change
% Change
Revenue
$
50.1
$
39.3
$
10.8
27.5
%
GAAP Net loss
(11.5
)
(10.6
)
(0.9
)
(8.3
)%
Adjusted EBITDA
11.2
8.6
2.6
29.7
%
Adjusted EBITDA margin
22.3
%
21.9
%
0.4pts
M&A expense
(0.3
)
(0.2
)
(0.1
)
(29.3
)%
Adjusted EBITDA incl M&A expense
10.9
8.4
2.5
29.7
%
Depreciation
0.0
0.0
(0.0
)
(5.2
)%
Adjusted EBIT
10.9
8.4
2.5
29.8
%
Net interest
(0.8
)
(0.6
)
(0.2
)
(31.2
)%
Adjusted EBT
10.1
7.8
2.3
29.7
%
Taxes
(2.7
)
(4.1
)
1.4
33.4
%
Effective tax rate
27.1
%
52.9
%
(25.7)pts
Adjusted Net Income
$
7.4
$
3.7
$
3.7
100.5
%
Adjusted Net Income margin
14.7
%
9.3
%
5.3pts
GAAP basic and diluted loss per share
(0.49
)
(0.63
)
0.13
21.4
%
Adjusted EPS ($) (basic)
0.27
0.15
0.11
74.1
%
Adjusted EPS ($) (fully diluted)
0.25
0.14
0.11
74.5
%
Bridge from Adjusted to Reported Results
(Amounts in millions, except percentages)
Three months ended March 31,
2026
2025
$ Change
% Change
Adjusted Net Income
$
7.4
$
3.7
$
3.7
100.5
%
Share-based accounting charge
7.3
7.4
(0.2
)
(2.2
)%
M&A: Post-combination compensation
2.8
3.4
(0.6
)
(17.3
)%
M&A: bargain purchase charge
(0.1
)
—
(0.1
)
—
M&A: change in contingent consideration
6.3
1.0
5.3
541.0
%
Long Term Incentive Program charges
1.0
1.1
(0.2
)
(14.3
)%
Amortization intangibles
1.6
1.3
0.3
24.1
%
Other income, net
(0.1
)
—
(0.1
)
—
Net Income (Reported)
$
(11.5
)
$
(10.6
)
$
(0.9
)
(8.3
)%
Management reviews the progress and performance of its business on the basis of the Adjusted Net Income shown above. The items excluded from the Adjusted Net Income above, while included in our GAAP results, have been shown in the Bridge above. These excluded items do not have a cash impact, nor do they reflect ongoing performance of the underlying business. Please refer to the section ‘basis of preparation' for a discussion of each of the non-cash items excluded from Adjusted Net Income.
Revenue
($ in millions, except percentages)
Three months ended March 31,
2026
2025
Revenue from acquisitions
Organic revenue
Total revenue
Total revenue
Organic Revenue Growth(1)
Total Growth
Government Relations Consulting
$
0.8
$
27.5
$
28.4
$
26.2
5.2
%
8.4
%
Corporate Communications & Public Affairs Consulting
8.0
10.3
18.3
10.0
3.3
%
82.7
%
Compliance and Insights Services
—
3.5
3.5
3.1
10.8
%
10.8
%
Total
$
