v3.26.1
Transactions with Related Parties
 6 Months Ended
Jun. 30, 2026
Related Party Transactions [Abstract]  
Transactions with Related Parties Transactions with Related Parties
Loans and Notes Receivable from Related Parties, Net of Allowance for Credit Losses
Loans and notes receivable due from related parties presented on the consolidated balance sheets include the following (in thousands):
June 30, December 31,
2026 2025
Loans and notes receivable from related parties
Member firm loans
 $ 7,036  $ 11,035 
Employee loans
 1,065  218 
Stewardship funds —  395 
Total loans and notes receivable from related parties $ 8,101  $ 11,648 
Allowance for credit loss
(6,809) (10,735)
Total loans and notes receivable from related parties, net of allowance for credit losses
$ 1,292  $ 913 
The following table summarizes changes in the allowance for credit losses for loans and notes receivable due from related parties (in thousands):
June 30, December 31,
2026 2025
Balance at beginning of period
 $ 10,735  $ 8,611 
Provision
74  2,664 
Write offs (4,000) (540)
Balance at end of period $ 6,809  $ 10,735 
Interest income includes interest earned on loans and notes receivable from related parties and is immaterial for the three and six months ended June 30, 2026 and 2025.
Member Firm Loans
Member firm loans consist of loans made to member firms of Andersen Global. As of June 30, 2026 and December 31, 2025, the Company had notes receivable from non-U.S. member firms of Andersen Global with stated principal values totaling $7.0 million ($0.3 million, net of allowance for credit losses), and stated principal values totaling $11.0 million ($0.3 million, net of allowance for credit losses), respectively. The notes bear interest based on variable rates including: the Applicable Federal Rate ("AFR"), the Prime rate, and the SOFR plus an applicable margin percentage. The notes have maturities up to eleven years.
Employee Loans
The Company has entered into various agreements with certain employees whereby these individuals receive loans which may be either wholly or in part repaid from the distribution of earnings that the individuals receive or may be forgiven over a period of time. The forgivable portion of these loans is recognized as compensation expense over the life of the loans. As of June 30, 2026, the Company had notes receivable from employees with stated principal values totaling $1.1 million, net of $0.1 million to be forgiven in 2027. As of December 31, 2025, the Company had notes receivable from
employees with stated principal values totaling $0.2 million, net of $0.2 million to be forgiven in 2026. The fixed rate loans are based on the AFR with maturity dates up to five years.
Stewardship Funds
During 2021, the Company provided a $2.0 million credit facility to funds formed for the benefit of certain Managing Directors maturing on December 31, 2029, permitting short-term advances up to 30 days with interest payable at the Prime rate. As of June 30, 2026, this credit facility was settled. As of December 31, 2025, $0.1 million was due to the Company under this credit facility.
During 2023, the Company provided a $2.0 million credit facility to another fund formed for the benefit of certain Managing Directors maturing on December 31, 2033, permitting short-term advances up to 60 days with interest payable at the Prime rate. As of June 30, 2026, no amounts were outstanding. As of December 31, 2025, $0.3 million was outstanding bearing interest at the prime rate.
Trademark License Fees
The Company earns trademark license fees from member firms of Andersen Global and contributing firms of Andersen Consulting. The Company recognized $1.6 million and $0.9 million in other income, net during the three months ended June 30, 2026 and 2025, respectively, and $2.3 million and $1.8 million in other income, net during the six months ended June 30, 2026 and 2025, respectively.
Historically, the Company was required to distribute a portion of trademark license fees collected to an entity controlled by an executive of the Company; however, this arrangement was terminated on March 29, 2025, effective immediately, for no consideration. For the three and six months ended June 30, 2025, the Company incurred zero and $0.1 million in cost of services in the consolidated statements of operations, respectively. The Company included $0.1 million in other current liabilities on the consolidated balance sheet as of December 31, 2025, with no comparable amount as of June 30, 2026.
Andersen Global Commitments
In the normal course of business, the Company funds certain global management costs on behalf of Andersen Global and allocates a portion of these costs to be reimbursed by non-U.S. member firms.
As of June 30, 2026 and December 31, 2025, net amounts due from member firms related to license fees and Andersen Global Commitments included in prepaid expenses and other current assets were $9.0 million and $1.3 million, respectively. Amounts due to member firms included in other current liabilities were $5.3 million and $0.6 million, respectively.
Other Transactions
The Company recorded expenses to member firms of Andersen Global and contributing firms of Andersen Consulting of $2.4 million and $0.4 million in the three months ended June 30, 2026 and 2025, respectively, and $4.3 million and $0.6 million in the six months ended June 30, 2026 and 2025, respectively. These related party expenses were incurred in exchange for services rendered by the payees in connection with the Company’s client engagements, and were recorded in cost of services on the unaudited condensed consolidated statement of operations.
State Tax Payments
The Company remits certain state tax payments on behalf of certain Managing Directors which are recorded as a receivable. The receivable is settled upon the next tax distribution through a withholding from the gross tax distribution otherwise payable to the members. As of June 30, 2026 and December 31, 2025, balances due from related parties included in prepaid expenses and other current assets were $3.0 million and $2.7 million, respectively.
Capital Account Notes and Holdover Note
In connection with the reorganization of the Management Holdcos, Aggregator issued Class X Aggregator Units to equity holders of the Management Holdcos who were current Managing Directors and related persons, and Class H Aggregator Units to certain retiring and retired managing director members of the Management Holdcos. Refer to Note 9 for further details.