Lincoln International (LCLN) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 and first half 2026 revenues of $225.7 million and $383.5 million, up 51% and 36% year-over-year, driven by strong M&A activity, demand for private market valuations, and the MarshBerry acquisition.

• Completed IPO in May 2026, raising $2.2 billion at $20.00 per share, reorganizing the corporate structure, and debuting as a public company.

• Proceeds from the IPO were used for debt repayment, partner redemptions, and general corporate purposes, strengthening the balance sheet.

• Investments in talent, technology, and strategic acquisitions, notably MarshBerry, contributed to platform diversification and performance.

• Declared a quarterly dividend of $0.07 per share for Q3 2026.

Financial highlights

• Q2 2026 revenue was $225.7 million, up 51% year-over-year; first half 2026 revenue was $383.5 million, up 36% year-over-year.

• Adjusted operating income for Q2 was $45.8 million, up 73% year-over-year; adjusted operating margin was 20.3%.

• Adjusted net income for Q2 was $28.7 million ($0.26 adjusted diluted EPS); GAAP net income was $0.5 million ($0.01 diluted EPS), impacted by IPO-related charges.

• Compensation and benefits expenses increased significantly post-IPO, with an adjusted compensation ratio of 61% in Q2.

• Cash and cash equivalents at June 30, 2026, were approximately $251 million; net cash position after debt repayment was $148.7 million.

Outlook and guidance

• Management expects continued growth in H2 2026, supported by record backlog, normal positive seasonality, and strong market fundamentals.

• Adjusted compensation ratio anticipated around 61% for full year 2026; adjusted effective tax rate expected at 31%.

• Non-compensation expense growth projected in high single digits for 2026, with ongoing investment in technology, especially AI.

• No material changes to risk factors or guidance since the IPO.