This addendum updates the Client Concentration analysis in the Investment Memorandum (CY2025 and TTM May '25–Apr '26 bases) with first-half 2026 operating actuals. The de-concentration the Memorandum identifies as a post-close objective is already underway in the current-year book.
Same tier framework as the Memorandum's Client Concentration section. Top-of-book concentration has fallen materially while the mid-tier (clients #2–10) has strengthened.
| Tier | CY2025 (Memorandum) | TTM May '25–Apr '26 (Memorandum) | H1 2026 Actuals1 | Shift vs. TTM |
|---|---|---|---|---|
| Top 1 (Blue Acorn) | 39.0% | 34.6% | 25.7% | −8.9 pts |
| Top 3 (+ UMG / Magnit, May Mobility) | — | 47.5% | 38.1% | −9.4 pts |
| Top 5 | — | 53.0% | 48.6% | −4.4 pts |
| Top 10 | — | 64.6% | 64.6% | 0.0 pts |
| Top 20 | — | 76.7% | 82.5%3 | — |
Flat Top-10 share alongside a falling Top-1 share indicates revenue migrating from the anchor account into the #2–10 mid-tier (Torc Robotics: 6 placements; Baseten and May Mobility: 4 each in H1) — the distribution profile the Memorandum's post-close BD thesis targets.
The Memorandum notes Blue Acorn's share grew 33% → 39% from 2024 to 2025 and identifies continued expansion as the residual risk. The 2026 actuals show the opposite dynamic: a steady, orderly decline in monthly billing driven by engagement completions — with the relationship fully intact, primary-supplier status unchanged, and no logo loss. Critically, monthly gross margin on the account improved from 19.7% (Dec) to 26.3% (May) as the thinnest-margin engagements rolled off — declining volume at an improving rate is the signature of natural project run-off, not client-side rate pressure or a wind-down.
De-concentration has not come at the cost of scale. On an annualized run-rate basis, the permanent placement engine (+$1.68M vs. CY2025) has replaced the entire Blue Acorn contract decline (−$1.31M), holding total revenue flat-to-up against the CY2025 base.5
Perm fees are running at ~$5.92M annualized vs. $4.24M in CY2025 (+40%), spread across 41 clients at 100% gross margin — a higher-quality revenue dollar than the contract billing it replaces. On Blue Acorn's May exit run-rate (~$1.80M annualized) rather than the six-month average, the replacement dynamic is even more pronounced.
Blue Acorn share of H1 2026 gross profit — $329.6K of $3.49M (contract GP of $297.6K at a 23.9% blended margin, plus $32.0K of permanent placement fees).4
Presented as a gross-profit composition measure, consistent with the Memorandum's convention that permanent placement fees carry no direct cost of sale. This is complementary to — not a restatement of — the Memorandum's account-level EBITDA contribution analysis (~$824K at a 21.7% margin, FY2025), which nets servicing cost and overhead. Both views support the same conclusion: the account earns its footprint, and the book's downside exposure to it is substantially smaller than the headline revenue percentage implies.
1 H1 2026 basis: permanent placement deals booked January–June 2026 ($2,958,268 across 68 deals) plus contract staffing revenue December 2025–May 2026 ($2,023,466), per internal deals ledger; total $4,981,734. Contract data reflects invoiced months available at preparation date.
2 June 2026 contract invoicing was in progress at preparation date; figure is a management estimate for the total contract book (all clients) and is not reflected in the analysis above. Subject to reconciliation in QoE.
3 Top-20 share is not comparable to the TTM basis on this row: the shorter 6–7 month measurement window mechanically compresses the long tail of transactional perm clients relative to a 12-month view. Top-1 through Top-10 tiers are directly comparable.
4 Total H1 gross profit of $3,494,596 comprises permanent placement fees of $2,958,268 (GP = fee revenue) and contract staffing gross profit of $536,328 (bill rate less contractor labour cost).
5 Bridge methodology: permanent placement annualized as H1 booked fees × 2 ($5.92M); Blue Acorn and other contract lines annualized on the Dec '25–May '26 monthly average × 12. CY2025 component baselines per the Memorandum (~$3.8M Blue Acorn, ~$4.24M perm fees, ~$5.4M total contract); "Other / rounding" reconciles component splits to the $9.88M reported CY2025 total. Run-rate figures are illustrative, not a forecast.
Prepared by Adapt Talent management, July 2026. Unaudited; all figures subject to Quality of Earnings verification. Confidential — prepared in connection with Project Frontier.