Teamshares has delivered strong growth in its first quarterly report as a Nasdaq-listed company, but the results also show why financing is the central variable in its acquisition model. The owner of more than 90 small and midsize businesses reported second-quarter revenue of $148.7 million, up 20% from a year earlier, and reaffirmed its 2026 outlook. The company began trading under the TMS ticker on June 23 after completing its business combination with Live Oak Acquisition Corp. V.
The operating improvement was real. Income from operations reached $3.0 million, compared with a $4.8 million loss a year earlier, while adjusted EBITDA rose 166% to $9.6 million. SME segment EBITDA, which measures the operating subsidiaries before corporate costs and other adjustments, increased 47% to $20.1 million. Yet the composition matters. Existing subsidiaries produced 3.4% organic revenue growth and just 0.4% organic EBITDA growth in the quarter, meaning acquisitions supplied much of the increase.
The $9.5 million quarterly net profit also needs careful reading. It included a $24.9 million noncash gain from changes in the fair value of earnout shares and deferred founder-share liabilities. Meanwhile, net interest expense rose 31% to $10.2 million, more than three times operating income. For the first half, Teamshares still recorded a $13.3 million net loss and used $5.1 million of cash in operating activities, although that cash outflow improved sharply from $27.6 million a year earlier.
That mix puts the balance sheet at the center of the investment case. Teamshares ended June with $113.4 million of cash and cash equivalents, but also $207.2 million of short-term debt and the current portion of long-term debt. Total current liabilities were $288.9 million against $211.0 million of current assets. The company separately carried $70.7 million of long-term debt. These figures do not erase the progress made in the listing transaction, but they make refinancing execution more important than the headline earnings swing.
The business combination and concurrent equity investment produced $132.4 million of gross proceeds, excluding the net impact of a forward purchase agreement. Teamshares repaid $33.9 million of debt during the second quarter and another $20.6 million afterward. It also signed a nonbinding term sheet on August 4 for a senior secured warehouse facility intended to finance acquisitions and is evaluating other nonbinding lender proposals to refinance a significant portion of existing debt. None of those proposed facilities is definitive yet.
That distinction is crucial because the outlook depends on fresh capital. Teamshares maintained guidance for $60 million of pro forma adjusted EBITDA in 2026, including $40 million of annual adjusted EBITDA from acquisitions. It has nonbinding letters of intent to buy 10 businesses representing about $30 million of annual EBITDA, based on seller information and initial due diligence. Those deals remain subject to further review, final agreements, financing and closing conditions. Only two acquisitions had closed this year by August 14, together producing $2.6 million of adjusted EBITDA in the 12 months before their respective closings.
Teamshares is trying to industrialize a fragmented succession problem. It buys companies generating roughly $500,000 to $5 million of EBITDA from retiring owners, integrates centralized financial and technology services, and gives employees a route to ownership. Its subsidiaries span more than 40 industries and 30 states, with trailing 12-month consolidated revenue above $500 million. Diversification can reduce dependence on any single business, while scale can spread corporate overhead across a larger earnings base.
The second quarter offers evidence that the model can create operating leverage, but not yet that it can finance growth on durable terms. Investors should watch the cost, maturity and covenant structure of any refinancing, as well as the gap between signed letters of intent and completed acquisitions. If Teamshares converts its pipeline without rebuilding near-term balance-sheet pressure, the public listing could become a useful engine for consolidation. If financing arrives slowly or expensively, the same acquisition machinery that drives growth will expose the company’s most important constraint.