The quarter cleared the market’s earnings bar. Adjusted diluted EPS was $0.28 versus published consensus of roughly $0.24, while revenue reached $73.0 million versus an external estimate near $66.8 million. That makes this a genuine operating beat, not merely a record quarter that matched expectations.
| Metric | 2Q26 | 2Q25 | Market comparison |
|---|---|---|---|
| Revenue | $73.0M | $56.2M | ~$66.8M consensus |
| Adjusted diluted EPS | $0.28 | $0.21 | ~$0.24 consensus |
| Adjusted EBITDA | $39.9M | $31.5M | — |
| GAAP net income | $6.6M | $17.6M | — |
| Adjusted EBITDA margin | 54.7% | 56.1% | — |
| FY26 adjusted net income guide | $100M–$106M | — | Reaffirmed range |
Underlying operating growth was solid, led by Life Solutions. Revenue increased 30% year over year, with Life Solutions revenue rising to $53.9 million from $31.1 million and adjusted EBITDA increasing 27% to $39.9 million. The company also raised $544.2 million of longevity-fund capital in the first half, already above its $500 million target.
The main weakness is the quality of reported earnings. GAAP net income dropped 63% to $6.6 million despite the revenue growth, as general and administrative expense rose to $33.0 million from $18.9 million and business-acquisition and special-project costs reached $7.6 million versus $0.1 million a year earlier. The company’s adjusted figures exclude much of that spending, so the beat reflects strong operating momentum but also a widening gap between adjusted and GAAP profitability.
Margins held up, but did not expand. Adjusted EBITDA margin was 54.7%, down from 56.1% a year ago, indicating that rapid growth is currently requiring heavier investment rather than producing immediate incremental margin leverage. Stock-based compensation also increased materially to $6.9 million from $3.5 million, another cost investors must account for when judging the adjusted result.
The outlook was maintained rather than improved. FY26 adjusted net income guidance remains $100 million to $106 million, with Q3 guidance of $26 million to $28 million adjusted net income and $0.26 to $0.28 adjusted EPS. That is supportive, but because the company did not raise its full-year range after the quarterly beat, the filing delivers a positive surprise in current results rather than a stronger forward reset. The net read is therefore a clear earnings beat, tempered by elevated acquisition-related costs, lower GAAP earnings and flat guidance.
Read the original 8-K on SEC EDGAR ↗