Andersen generated roughly 30 cents of operating cash for every dollar of revenue in the six months ended June 30. That initially suggests strong cash generation, until the income statement enters the room: revenue fell 9.6% to $217.7 million, and operating income swung from $24.1 million to an $8.9 million loss.
The unusual part is not just the reversal in profit. It is the gap between cash generation and the operating business. Operating cash flow moved from negative $3.9 million to $65.8 million, lifting free cash flow margin to 11.6%, even as operating margin dropped from 10.0% to negative 4.1%.
That makes the latest 10-Q less a clean turnaround than a question about what kind of cash this was and what the income statement is measuring. Andersen’s cash balance still fell 15.1%, to $175.6 million, during the same period.
Management points to two uses of cash, not an unexplained decline. Capital expenditures rose from $3.7 million to $12.8 million, while fewer investments reached maturity.
“The decrease was primarily driven by increased capital expenditures during the six months ended June 30, 2026 and fewer proceeds from maturity of investments.”
10-Q 2026-08-12
In plain English, operating cash arrived, but capex and investment timing kept the cash balance moving in the other direction. The company does not say why revenue declined.
The profit line also carries an accounting wrinkle. Andersen recorded $48.3 million of stock compensation, equal to 22.2% of revenue, and the expense is non-cash. That does not make it irrelevant, but it means the income statement includes a cost that does not leave the bank account in the period.
The company also says the prior-year comparison was distorted by a large one-time equity expense. That helps explain why cost of services moved, but it does not explain the current six-month revenue decline or the operating loss.
“The decrease in cost of services was primarily attributable to the decrease in non-cash equity-based compensation in the second quarter of 2026 compared to the six months ended June 30, 2025, which had a large one-time expense incurred of $104.5 million related to pre-IPO profits interest units.”
10-Q 2026-08-12
The result is a business with better reported cash conversion than a year ago, alongside weaker reported operating economics. Accounts receivable fell 11.3% to $189.4 million, roughly in line with the sales decline, so the latest balance sheet does not show receivables expanding against falling revenue. But the cash balance still reflected increased capital spending and fewer proceeds from maturing investments.
The annual record adds some history without resolving the split. Revenue grew 14.6% in 2025 to $838.7 million, while operating margin fell to negative 16.1%. Growth and profitability have not moved as a matched pair in the recent record.
Andersen’s next quarterly report will have one especially useful comparison to make: whether revenue and operating margin move together after this six-month cash-flow surge. The latest 10-Q leaves that question unanswered.
Andersen’s latest 10-Q reports lower revenue and operating income alongside higher operating cash flow for the six months ended June 30, 2026.