ITG, Inc. Reports Second Quarter 2026 Results
Rhea-AI Summary
ITG (Nasdaq: ITG) reported second quarter 2026 revenue of $404.6 million, up 38% year-over-year, with net income of $1.8 million. Adjusted EBITDA rose 21% to $52.2 million and free cash flow increased 66% to $44.8 million.
Next twelve‑month backlog reached $1.517 billion, versus $1.259 billion a year earlier, supported by strong broadband fiber awards from customers including Ziply Fiber and Intrepid Fiber Networks. Following quarter-end, ITG completed an initial public offering, using net proceeds primarily to repay debt.
For full‑year 2026, ITG’s outlook calls for revenue of $1.556 billion (+35% YoY) and Adjusted EBITDA of $202 million (+36% YoY), implying a 13.0% Adjusted EBITDA margin and a forecast effective tax rate of about 19%.
Positive
- Q2 2026 revenue up 38% year-over-year to $404.6 million
- Adjusted EBITDA up 21% year-over-year to $52.2 million in Q2 2026
- Free cash flow up 66% year-over-year to $44.8 million in Q2 2026
- NTM backlog increased to $1.517 billion from $1.259 billion year-over-year
- IPO completed after quarter-end with net proceeds primarily used for debt repayment
- 2026 outlook targets $1.556 billion revenue (+35% YoY) and $202 million Adjusted EBITDA (+36% YoY)
Negative
- Q2 2026 net income declined to $1.8 million from $11.6 million year-over-year
- Operating cash flow for first half 2026 was an outflow of $47.0 million versus inflow of $11.7 million
- Adjusted EBITDA margin decreased to 13.0% in Q2 2026 from 14.8% a year earlier
- Interest expense rose to $19.5 million in Q2 2026 from $6.9 million year-over-year
- Total liabilities increased to $1.03 billion versus $932.1 million at December 31, 2025
News Explained
At
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 22 | earnings scheduling | Neutral | +10.0% | Company scheduled second-quarter results release and webcast dates for August. |
| Jul 02 | IPO closing | Negative | -5.0% | Company closed IPO and reported proceeds intended for debt repayment. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent reactions were mixed: the earnings scheduling announcement preceded a 10.01% gain, while the IPO closing announcement preceded a 4.98% decline.
Key Terms
ntm backlog financial
adjusted ebitda financial
free cash flow financial
basis points financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Strong performance reflects continued momentum across ITG's scaled national platform, driven by continued strong demand for digital infrastructure services coupled with successful execution; initial 2026 outlook1 reflects ~
SECOND QUARTER 2026 HIGHLIGHTS
- Revenue increased
38% year-over-year to$404.6 million - Net Income of
$1.8 million - Adjusted EBITDA2 increased
21% year-over-year to$52.2 million - Free Cash Flow2 increased
66% year-over-year to$44.8 million - NTM Backlog3 of
$1,517 million as of June 30, 2026, compared to$1,259 million as of June 30, 2025 and$1,430 million as of March 31, 2026, supporting strong revenue visibility - Strong order activity, including significant broadband fiber deployment awards with customers such as Ziply Fiber and Intrepid Fiber Networks
- Completed initial public offering subsequent to quarter end; net proceeds primarily applied to debt repayment
- Record levels in the quarter for revenue, Adjusted EBITDA and NTM Backlog
- Statements related to our initial full-year 2026 financial outlook are forward-looking, and actual results may differ materially. Refer to the “Forward Looking Statements” in the Appendix of this document for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
- Non-GAAP measure – Refer to the Appendix of this document for definitions of non-GAAP measures, reconciliations of these measures to the most directly comparable U.S. GAAP measure and a discussion of why management believes these non-GAAP measures are useful. As discussed below, ITG is not providing reconciliations of forward-looking non-GAAP measures because such reconciliations are not available without unreasonable effort.
- Next Twelve Month (NTM) Backlog represents total committed future revenue over the next twelve months supported by executed contracts, historical activity levels, customer guidance, and / or management estimates. Timing for revenue from projects included in NTM Backlog is subject to change based on a number of factors. Actual results may differ materially.
FORT LAUDERDALE, Fla., Aug. 12, 2026 (GLOBE NEWSWIRE) -- ITG, Inc. (Nasdaq: ITG) (“ITG” or "the Company”), a leading provider of end-to-end services to the digital infrastructure industry, today announced financial results for its second quarter ended June 30, 2026.
ITG supports the planning, design, construction, operation, maintenance, and expansion of broadband, wireless, data center, utility, and civil infrastructure. ITG’s operating model spans both recurring maintenance and fulfillment activity and larger infrastructure deployment projects, enabling it to support customers across the lifecycle of network build, upgrade, and ongoing operations. With a workforce operating across 49 states, ITG is positioned to build and maintain the digital backbone powering the future.
"Our second quarter results reflect continued momentum across the business and strong execution of our growth strategy," said Andy Parrott, Chief Executive Officer of ITG. "Performance was driven by contributions from recent acquisitions, expansion of existing and new customer programs, increased activity under recently awarded contracts, and supported by broadly favorable demand trends. Growth was generated from both our Engineering & Maintenance and Infrastructure Deployment service lines, reflecting continued investment in network maintenance, upgrades, and deployment activity.”
"The completion of our initial public offering marked an important milestone for ITG. We entered the public markets with a scaled national platform and significant revenue visibility, supported by a strong backlog and long-standing customer relationships. This positions us well to capitalize on favorable digital infrastructure investment trends expected in coming years, including the national build-out of data center capacity,” Mr. Parrott noted. “We believe our differentiated operating model, national workforce and proprietary FUSE360 technology platform strengthen our competitive position and supports our ability to execute consistently at scale.”
Mr. Parrott concluded, "We remain focused on executing for our customers, investing in our workforce and fleet, and pursuing strategic opportunities that enhance our capabilities and market presence. We are pleased to introduce our initial 2026 financial outlook, reflecting our confidence in the opportunities ahead."
2026 FINANCIAL OUTLOOK1
(in millions, except margin, effective tax rate, CapEx, and shares outstanding)
| Q3 2026 | YoY Growth2 | FY 2026 | YoY Growth2 | |||||||
| Revenue | $440 | +42% | $1,556 | +35% | ||||||
| Adjusted Net Income3 | $31 | +239% | $74 | +80% | ||||||
| Adjusted EBITDA3 | $63 | +61% | $202 | +36% | ||||||
| Adjusted EBITDA Margin3 | 14.4% | +170 bps | 13.0% | +20 bps | ||||||
| Forecast Assumptions | ||||||||||
| Effective Tax Rate | ~ | |||||||||
| CapEx (% of Revenue) | ~ | |||||||||
| Net Interest Expense | ~ | |||||||||
| Depreciation Expense | ~ | |||||||||
| Amortization Expense | ~ | |||||||||
| Diluted Shares Outstanding | ~124.4 | |||||||||
- Statements related to our initial full-year 2026 financial outlook are forward-looking, and actual results may differ materially. Refer to the “Forward Looking Statements” in the Appendix of this document for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
- Represents year-over-year growth compared to the prior year period. “Bps” represents basis points of change on percentage data.
- Non-GAAP measures – Refer to the Appendix of this document for definitions of non-GAAP measures, reconciliations of these measures to the most directly comparable U.S. GAAP measure and a discussion of why management believes these non-GAAP measures are useful. As discussed below, ITG is not providing reconciliations of forward-looking non-GAAP measures because such reconciliations are not available without unreasonable effort.
SECOND QUARTER 2026 COMMENTARY
ITG has posted its Second Quarter 2026 Commentary on the Investors section of ITG’s website at ir.itgcomm.com. This document provides detailed commentary on ITG's second quarter 2026 financial and operating performance, business trends and outlook and should be reviewed in conjunction with the earnings release and conference call.
CONFERENCE CALL INFORMATION
ITG will host a webcast of its quarterly earnings call to discuss these results on Thursday, August 13, 2026, at 8:00 a.m. ET, which can be accessed through the Investors section of ITG’s website at ir.itgcomm.com. A replay of the webcast also will be available following the live event.
ABOUT ITG, INC.
ITG is a leading provider of end-to-end services to the communications and digital infrastructure industries throughout the United States. ITG supports the planning, design, construction, operation, maintenance, and expansion of broadband, wireless, data center, utility, and civil infrastructure. With a workforce operating across 49 states, ITG is positioned to build and maintain the digital backbone powering our future.
APPENDIX
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on our management’s beliefs and assumptions and on information currently available to our management. These statements include, but are not limited to, statements regarding our expectations of future performance, including guidance for our revenue, Adjusted Net Income, Adjusted EBITDA and Adjusted EBITDA Margin for the fiscal year ending December 31, 2026, and our NTM Backlog as of June 30, 2026. Forward-looking statements can be identified by terms such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “potential”, “predict”, “project”, “seek”, “should”, “will”, “would” or similar expressions and the negatives of those terms. Such statements are not historical facts but rather are based on the Company’s current expectations or beliefs concerning future events. Forward-looking statements involve known and unknown risks, uncertainties and other factors, that may cause our actual results to be materially different from any future results contemplated by the forward-looking statements, including those described in the registration statements and periodic reports the Company files with the Securities and Exchange Commission (the “SEC”), including the Company’s final prospectus dated June 30, 2026 and filed with the SEC on July 2, 2026. Given these uncertainties, you should not place undue reliance on forward-looking statements. Any forward-looking statement speaks only as of the date on which it was made, and the Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the Company’s registration statements and periodic reports.
Non-GAAP Financial Measures
This press release includes certain financial measures that are not calculated in accordance with generally accepted accounting principles in the United States (“GAAP”), including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted EPS and Free Cash Flow. Management uses these non-GAAP financial measures to evaluate the Company’s operating performance, cash generation, liquidity, leverage profile and ability to execute its strategic priorities. The Company believes these measures provide useful supplemental information to investors in evaluating period-to-period operating performance and financial position.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in accordance with GAAP. These measures may not be comparable to similarly titled measures used by other companies. Reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure are provided below.
The Company is providing guidance for certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow. The Company is not providing quantitative reconciliations of these forward-looking non-GAAP measures to the most directly comparable GAAP measures due to the uncertainty and inherent difficulty of predicting certain items that affect GAAP results, including, as applicable, acquisition-related costs, stock-based compensation, changes in working capital, interest expense, depreciation and amortization, tax impacts, and other items that may be material and difficult to forecast. Accordingly, a reconciliation is not available without unreasonable effort. The variability of these items could have a significant impact on the Company’s future GAAP financial results.
FINANCIAL STATEMENTS
| ITG Parent, LLC CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except per unit amount) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue | $ | 404,633 | $ | 292,405 | $ | 738,555 | $ | 517,792 | ||||||||
| Cost of revenue, excluding depreciation and amortization | 332,581 | 237,091 | 613,647 | 423,696 | ||||||||||||
| Selling, general and administrative | 28,141 | 15,765 | 53,713 | 30,546 | ||||||||||||
| Depreciation and amortization | 21,014 | 13,988 | 41,439 | 27,245 | ||||||||||||
| Change in fair value of contingent liabilities | 300 | 170 | 2,186 | 337 | ||||||||||||
| Total | 382,036 | 267,014 | 710,985 | 481,824 | ||||||||||||
| Interest expense | (19,534 | ) | (6,919 | ) | (37,759 | ) | (13,745 | ) | ||||||||
| Other expense, net | (1,008 | ) | (1,042 | ) | (1,927 | ) | (2,030 | ) | ||||||||
| Income (loss) before provision for income taxes | 2,055 | 17,430 | (12,116 | ) | 20,193 | |||||||||||
| Provision (benefit) for income taxes | 267 | 5,829 | (746 | ) | 7,013 | |||||||||||
| Net income (loss) | $ | 1,788 | $ | 11,601 | $ | (11,370 | ) | $ | 13,180 | |||||||
| Earnings (loss) per unit – Class A | ||||||||||||||||
| Basic and diluted | $ | 0.01 | $ | 0.07 | $ | (0.07 | ) | $ | 0.08 | |||||||
| Weighted average number of units – Class A | ||||||||||||||||
| Basic and Diluted | 160,000 | 160,000 | 160,000 | 160,000 | ||||||||||||
| ITG Parent, LLC CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands) | ||||||
| June 30, 2026 | December 31, 2025 | |||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 2,486 | $ | 3,719 | ||
| Accounts receivable, net | 148,855 | 141,314 | ||||
| Contract assets | 309,825 | 222,094 | ||||
| Prepaid expenses and other current assets | 23,855 | 17,310 | ||||
| Total current assets | 485,021 | 384,437 | ||||
| Property and equipment, net | 161,300 | 158,492 | ||||
| Operating lease right-of-use assets | 28,107 | 27,926 | ||||
| Finance lease right-of-use assets | 2,375 | 3,019 | ||||
| Goodwill | 189,193 | 187,748 | ||||
| Intangible assets, net | 194,888 | 211,383 | ||||
| Other long-term assets | 4,894 | — | ||||
| Due from related party | 2,832 | 2,832 | ||||
| Total assets | $ | 1,068,610 | $ | 975,837 | ||
| LIABILITIES AND MEMBERS’ EQUITY | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 65,136 | $ | 41,221 | ||
| Accrued expenses | 57,456 | 57,245 | ||||
| Current portion of operating lease obligations | 11,183 | 10,969 | ||||
| Current portion of finance lease obligations | 1,264 | 1,221 | ||||
| Current portion of equipment loans | 21,588 | 22,493 | ||||
| Current portion of term loans | 16,500 | 16,500 | ||||
| Total current liabilities | 173,127 | 149,649 | ||||
| Equipment loans, net | 76,746 | 65,804 | ||||
| Revolving line of credit | 112,000 | 30,000 | ||||
| Term loans, net | 617,167 | 623,463 | ||||
| Operating lease obligations, net | 17,581 | 17,608 | ||||
| Finance lease obligations, net | 1,250 | 1,905 | ||||
| Other long-term liabilities | 2,831 | 7,100 | ||||
| Contingent liabilities | 17,836 | 20,088 | ||||
| Deferred tax liability | 15,696 | 16,475 | ||||
| Total liabilities | 1,034,234 | 932,092 | ||||
| Commitments and contingencies | ||||||
| Members’ equity | 34,376 | 43,745 | ||||
| Total liabilities and members’ equity | $ | 1,068,610 | $ | 975,837 | ||
| ITG Parent, LLC CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) | ||||||||
| Six Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net (loss) income | (11,370 | ) | 13,180 | |||||
| Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||||||||
| Depreciation | 24,944 | 12,942 | ||||||
| Amortization of intangible assets | 16,495 | 14,303 | ||||||
| Amortization of debt issuance costs | 2,429 | 605 | ||||||
| Amortization of operating right of use assets | 8,672 | 3,955 | ||||||
| Deferred income taxes | (779 | ) | (2,823 | ) | ||||
| Loss (gain) on sale of assets | 85 | (66 | ) | |||||
| Change in fair value of contingent liabilities | 2,186 | 337 | ||||||
| Equity-based compensation | 2,339 | 1,270 | ||||||
| Changes in assets and liabilities, net of business acquisitions: | ||||||||
| Accounts receivable | (6,228 | ) | (12,940 | ) | ||||
| Contract assets | (87,731 | ) | (7,297 | ) | ||||
| Prepaid expenses and other current assets | (7,019 | ) | 428 | |||||
| Accounts payable and accrued expenses | 19,979 | (8,293 | ) | |||||
| Operating lease liabilities | (8,022 | ) | (3,856 | ) | ||||
| Payments of contingent liabilities | (3,022 | ) | — | |||||
| Net cash (used in) provided by operating activities | (47,042 | ) | 11,745 | |||||
| Cash flows from investing activities: | ||||||||
| Purchase of property and equipment | (15,969 | ) | (28,627 | ) | ||||
| Proceeds from sale of property and equipment | 1,225 | 1,239 | ||||||
| Acquisitions, net of cash acquired | (3,440 | ) | (8,448 | ) | ||||
| Net cash used in investing activities | (18,184 | ) | (35,836 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Payments of acquisition amounts due to sellers | (5,891 | ) | — | |||||
| Payments of contingent liabilities | (1,416 | ) | — | |||||
| Payments made on term loans | (8,251 | ) | (11,812 | ) | ||||
| Proceeds from line of credit | 373,000 | 67,000 | ||||||
| Payments made on line of credit | (291,000 | ) | (53,500 | ) | ||||
| Payments on finance leases | (612 | ) | — | |||||
| Distributions to members | (338 | ) | — | |||||
| Proceeds from equipment loans | 11,332 | 22,279 | ||||||
| Payments made on equipment loans | (12,831 | ) | (6,135 | ) | ||||
| Payments of debt costs | — | (262 | ) | |||||
| Net cash provided by financing activities | 63,993 | 17,570 | ||||||
| NET DECREASE IN CASH AND CASH EQUIVALENTS | (1,233 | ) | (6,521 | ) | ||||
| Cash and cash equivalents – beginning of period | 3,719 | 7,367 | ||||||
| Cash and cash equivalents – end of period | $ | 2,486 | $ | 846 | ||||
| Non-GAAP Financial Measures & Reconciliations | ||||||||||||||||
| Adjusted EBITDA and Free Cash Flow Reconciliation | ||||||||||||||||
| The following table reconciles net income, the most directly comparable financial measure presented in accordance with GAAP, to Adjusted EBITDA and Free Cash Flow, and calculations of Adjusted EBITDA Margin and Free Cash Flow Conversion for the three and six months ended June 30, 2026 and 2025: | ||||||||||||||||
| ITG Parent, LLC | ||||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (in thousands, except for percentages) | ||||||||||||||||
| Net income (loss) | $ | 1,788 | $ | 11,601 | $ | (11,370 | ) | $ | 13,180 | |||||||
| Interest expense | 19,534 | 6,919 | 37,759 | 13,745 | ||||||||||||
| Income tax expense (benefit) | 267 | 5,829 | (746 | ) | 7,013 | |||||||||||
| Depreciation expense | 12,766 | 6,787 | 24,944 | 12,942 | ||||||||||||
| Amortization of intangibles | 8,248 | 7,201 | 16,495 | 14,303 | ||||||||||||
| Other expense, net | 1,008 | 1,042 | 1,927 | 2,030 | ||||||||||||
| Equity-based compensation | 1,170 | 625 | 2,339 | 1,270 | ||||||||||||
| Transaction costs(1) | 1,907 | 714 | 3,365 | 1,620 | ||||||||||||
| Restructuring, integration, and business optimization costs(2) | 5,206 | 2,460 | 11,516 | 4,317 | ||||||||||||
| Change in fair value of contingent liabilities(3) | 300 | 170 | 2,186 | 337 | ||||||||||||
| Adjusted EBITDA | $ | 52,194 | $ | 43,348 | $ | 88,415 | $ | 70,757 | ||||||||
| Adjusted EBITDA Margin | 13.0 | % | 14.8 | % | 12.0 | % | 13.7 | % | ||||||||
| Purchase of property and equipment | $ | 7,440 | $ | 16,163 | $ | 15,969 | $ | 28,627 | ||||||||
| Free Cash Flow | $ | 44,754 | $ | 27,185 | $ | 72,446 | $ | 42,130 | ||||||||
| Free Cash Flow Conversion | 85.7 | % | 62.7 | % | 81.9 | % | 59.5 | % | ||||||||
- Represents professional, legal and advisory fees incurred in connection with acquisitions completed during the presented period.
- Represents non-recurring expenses associated with the restructuring of management positions, start-up costs for new markets and service offerings and exiting locations that we do not expect will impact the go forward operations of the business.
- Represents non-recurring earnout amounts accrued to certain sellers in connection with the acquisitions completed during the presented period.
INVESTOR CONTACT
629-282-9862
