REG - Public Policy Hldg - 2025 Q3 Trading Update

Public Policy HoldingAnnouncement

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RNS Number : 3663E  Public Policy Holding Company, Inc.  22 October 2025

     22 October 2025

 

Public Policy Holding Company, Inc.

("PPHC", the "Group" or the "Company")

2025 Q3 Trading Update

23.8% revenue growth drives Group to record EBITDA

Public Policy Holding Company, Inc., a leading global strategic communications
provider offering a comprehensive range of advisory services in the areas of
Government Relations, Corporate Communications and Public Affairs, announces
an unaudited preliminary trading update for the three and nine months ended 30
September 2025 ("the Period" or "Q3").

The Group achieved strong growth across its core service lines amid sustained
client demand during the first nine months of 2025 in the US post-election
environment. The Period also marked further strategic progress in the
integration of TrailRunner International LLC ("TrailRunner International") and
the acquisition of Pine Cove Capital LLC, both headquartered in Texas.

Financial Highlights:

•      Q3 revenue increased by 23.8% to $48.8 million over the prior
period, with organic growth contributing 4.5% and the balance driven by the
Group's M&A activity.

•      In the first nine months of the financial year, the Group
delivered revenue of $136.7 million, up 23.6% over the prior period with
organic growth contributing 6.5%.

•      Organic growth continues to be supported by increased client
demand post-election in the US, particularly in our Compliance & Insights
Services as well as Corporate Communications & Public Affairs Consulting,
combined with sustained demand for Government Relations Consulting.

•      This performance, in conjunction with the Group's strategic
M&A execution, drove record Adjusted EBITDA, up 14.8% over the prior
period to $11.5 million in Q3 at an Adjusted EBITDA Margin of 23.6% and up
14.4% over the prior period to $33.0 million in the first nine months of the
financial year at an Adjusted EBITDA Margin of 24.1%.

•      Net Debt of $38.5 million at 30 September 2025 (H1 2025: $42.2
million) reflects the Group's cash generative nature and a prudent leverage
ratio, as well as the allocation of capital to fund strategic M&A.

 

Outlook:

•      The Group continues to see strong demand for government
relations, public affairs, and regulatory advisory services, with particular
strength in both US federal and state-level mandates.

•      In addition, there is strong and increasing demand for the
Group's corporate communications services following the addition of
TrailRunner International, as clients increasingly sought integrated support
to manage complex reputational, regulatory, and stakeholder challenges.

•      The Group's strategy will continue to be based on a combination
of organic growth and disciplined M&A, where the pipeline of opportunities
both domestically (i.e. the US) and internationally remains strong.

 

Stewart Hall, CEO of PPHC, commented:

"The Group's record performance is a testament to the platform we have built
at PPHC, the quality of our people, and the value of our expertise in today's
business environment. Throughout the year our M&A and organic growth
strategies have continued at-pace, making acquisitions and strategic hires
that broaden our service offering and extend our global reach. We continue to
invest in our Group-wide offerings to address today's fast-moving and complex
policy landscape, ensuring we remain well positioned to meet our clients'
evolving needs."

 

Enquiries

 

 Public Policy Holding Company, Inc.            +1 (202) 688 0020

 Stewart Hall, CEO

 Roel Smits, CFO

 Stifel (Nominated Adviser & Joint Broker)      +44 (0) 20 7710 7600

 Fred Walsh, Brough Ransom, Ben Good

 Canaccord Genuity (Joint Broker)               +44 (0) 20 7523 8000

 Simon Bridges, Andrew Potts

 Burson Buchanan (Media Enquiries)              +44 (0) 20 7466 5000

                                              pphc@buchanan.uk.com (mailto:pphc@buchanan.uk.com)
 Chris Lane, Toto Berger, Jesse McNab

 

About PPHC

 

Incorporated in 2014, PPHC is a global government relations, public affairs
and strategic communications group providing clients with a fully integrated
and comprehensive range of services including government and public relations,
research, and digital advocacy campaigns. Engaged by approximately 1,300
clients, including companies, trade associations and non-governmental
organisations, the Group is active in all major sectors of the economy,
including healthcare and pharmaceuticals, financial services, energy,
technology, telecoms and transportation. PPHC's services support clients to
enhance and defend their reputations, advance policy goals, manage regulatory
risk, and engage with federal and state-level policy makers, stakeholders,
media, and the public.

 

For more information, see www.pphcompany.com.

 

By segment, organic and reported growth for the three and nine months ended
September 30, 2025 and 2024 were as follows:

                                                           ($ in thousands)

                                                           (unaudited)
                                                           Three months ended September 30,
                                                           2025                                                                                 2024
                                                           Revenue from acquisitions         Organic revenue         Total revenue              Total revenue             Organic Revenue Growth      Total Growth
 Government Relations Consulting                           $463                              $27,015                 $27,478                    $26,286                         2.8%                        4.5%
 Corporate Communications & Public Affairs Consulting      7,116                             10,905                  18,022                     10,501                          3.9%                          71.6%
 Compliance and Insights Services                          -                                 3,287                   3,287                      2,628                            25.1%                        25.1%
 Total                                                     $7,579                            $41,207                 $48,787                    $39,415                         4.5%                         23.8%

 

                                                           ($ in thousands)

                                                           (unaudited)
                                                           Nine months ended September 30,
                                                           2025                                                                                                2024
                                                           Revenue from acquisitions         Organic revenue                  Total revenue                    Total revenue                 Organic Revenue Growth      Total Growth
 Government Relations Consulting                           $1,515                            $79,428                          $80,943                          $76,615                             3.7%                  5.6%
 Corporate Communications & Public Affairs Consulting      17,449                            28,730                           46,178                           26,038                               10.3%                77.3%
 Compliance and Insights Services                          -                                 9,565                            9,565                            7,895                                21.1%                21.1%
 Total                                                     $18,964                           $117,722                         $136,686                         $110,549                            6.5%                  23.6%

 

Adjusted EBITDA and Margin

 

Adjusted EBITDA for the three and nine months ended September 30, 2025
increased by 14.8% and 14.4% over the prior period to $11.5 million and $33.0
million, respectively. This represents an Adjusted EBITDA Margin of 23.6% and
24.1% for the three and nine months ended September 30, 2025, respectively,
primarily reflecting the weighted outcome of changes in our business mix.

                             ($ in thousands)

                             (unaudited)
                             Three months ended September 30,                      Nine months ended September 30,
                             2025             2024             % variance          2025               2024               % variance
 Revenue                     $48,787          $39,415          23.8%               $136,686           $110,549           23.6%
 Adjusted EBITDA             $11,510          $10,035          14.8%               $32,956            $28,834            14.4%
 Adjusted EBITDA Margin      23.6%            25.5%            (1.9)pts            24.1%              26.1%              (2.0)pts

 

Cash and Debt

 

As of September 30, 2025, the Group had cash of $11.1 million as compared to
$14.5 million at December 31, 2024 and gross debt of $49.6 million at
September 30, 2025 as compared to $32.0 million at December 31, 2024,
resulting in net debt of $38.5 million at September 30, 2025 as compared to
$17.5 million at December 31, 2024. The increase in cash during 2025 was
positively impacted by the reduced dividend policy that went into effect in
2025 in order to support funding M&A initiatives for growth. The increase
in debt was driven by the additional $24.0 million drawdown under our Bank
Credit Facilities in relation to the acquisition of TrailRunner International
on April 1, 2025, offset by ongoing repayments enabled by the Group's strong
cash generation.

 

                                                ($ in thousands)
                                                September 30, 2025 (Unaudited)        June 30, 2025 (Unaudited)        December 31, 2024

 Cash and cash equivalents as of end of period  $11,145                               $9,792                           $14,536

 Notes payable, long-term, net                  (41,462)                              (43,921)                         (26,014)
 Notes payable, current portion, net            (8,177)                               (8,098)                          (6,031)
 Total Debt                                     $(49,639)                             $(52,019)                        $(32,045)

 Net debt at period-end                         $(38,495)                             $(42,226)                        $(17,509)

 

Set forth above are certain preliminary unreviewed and unaudited estimates of
our operating results for the three and nine months ended September 30, 2025
compared to our actual operating results for the three and nine months ended
September 30, 2024. These preliminary estimates are based on currently
available information and are subject to completion of our financial closing
procedures. Such procedures are not yet complete and, as a result, our final
results upon completion of our closing procedures may differ from the
preliminary estimates. The preliminary financial data included above has been
prepared by, and is the responsibility of, our management. Our independent
auditors have not audited, reviewed, or performed any procedures with respect
to this preliminary financial data or the accounting treatment thereof.
Accordingly, our independent auditors express no opinion or any other form of
assurance with respect thereto. These preliminary operating results are not a
comprehensive statement of our financial results, and should not be viewed as
a substitute for consolidated financial statements prepared in accordance with
accounting principles generally accepted in the United States. Accordingly,
undue reliance should not be placed on these preliminary estimates.

 

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