Teamshares Inc.

What they do

Teamshares acquires small and medium-sized enterprises (SMEs), generally businesses being sold by retiring owners with roughly $0.5 million to $5.0 million of EBITDA, at purchase multiples typically of 4x to 6x EBITDA, partially funded with debt. It uses proprietary software to source and evaluate thousands of acquisition opportunities annually, and targets a diversified mix of industries and geographies. Revenue and cash flow come from the financial performance of its operating subsidiaries; excess cash flow is upstreamed to the platform and redeployed into new acquisitions and organic growth.

Revenue drivers

• SME Segment revenue — Revenue is generated by the consolidated operating subsidiaries that Teamshares acquires and operates. For the three months ended June 30, 2026, SME Segment Revenue rose $25.1 million (20%) year-over-year to total quarterly revenue of $148.7 million, driven by acquisitions plus 3.4% organic growth from existing subsidiaries.
• SME Segment EBITDA — Segment profitability comes from the same operating subsidiaries. SME Segment EBITDA increased $6.4 million (47%) in the second quarter of 2026, primarily from acquisitions, with 0.4% organic EBITDA growth; year-to-date segment EBITDA rose $10.2 million (54%), including 4.6% organic growth.
• Acquisition program — Newly closed businesses add revenue and EBITDA. Teamshares closed two acquisitions year-to-date 2026, which together generated approximately $2.5 million of net income and $2.6 million of Adjusted EBITDA over the LTM period preceding their respective closings. The 2026 target is $40 million of acquired EBITDA.

Recent performance

For the quarter ended June 30, 2026, revenue was $148.7 million, up $25.1 million or 20% year-over-year. Net income was $9.5 million, a $22.4 million increase year-over-year, including non-cash fair value changes on financial instruments and contributions from acquisitions. Adjusted EBITDA was $9.6 million, up $6.0 million or 166%, and Pro Forma Adjusted EBITDA was $9.8 million, up $6.2 million or 171%. LTM Pro Forma Adjusted EBITDA at quarter end was $21.2 million and LTM Pro Forma Revenue was $560.0 million. Corporate expenses not allocated to segments, excluding Business Combination transaction costs, fell $0.5 million year-over-year even as SME Segment EBITDA rose 47%.

Strategy

Teamshares is pursuing a programmatic acquisition strategy, buying SMEs from retiring owners at roughly 4x to 6x EBITDA, partially debt-funded, and deliberately diversifying across industries and geographies. It operates acquired companies through its tech-enabled infrastructure and expects platform overhead to scale as operating subsidiaries grow. The company began trading on Nasdaq on June 23, 2026, concurrent with a significant equity raise, which management says improves access to acquisition financing. Cash flow from operating subsidiaries is expected to increasingly self-fund acquisitions and organic reinvestment over time.

Risks

• Acquisition pipeline execution — The 2026 outlook depends on converting non-binding LOIs for 10 businesses representing roughly $30 million of annual EBITDA into closed acquisitions, subject to diligence, definitive agreements, financing and closing conditions.
• Negative consolidated free cash flow — The company states consolidated free cash flow has been negative due to investment in corporate platform capabilities, technology and growth initiatives, even though operating subsidiaries have historically generated positive cash flow.
• Acquisition and leverage risk — Acquisitions are partially funded with debt, and the June 30, 2026 balance sheet shows $70.7 million of long-term debt against $108.5 million of shareholder equity.
• Recent de-SPAC status and short operating history — Teamshares began trading on Nasdaq only on June 23, 2026, following the June 18, 2026 closing of the SPAC merger, so it has a brief history as a public company and its reported results include non-cash fair value changes on financial instruments.

Outlook

Management reaffirmed its 2026 outlook and said that, as of August 14, 2026, it has approximately $30 million of annual SME EBITDA under non-binding LOIs, plus acquisitions already closed, against a $40 million acquired EBITDA target for 2026. It describes the current acquisition funnel as a comfortable pathway to that target. Management also cited encouraging early expansion in financing opportunities since listing.