Huron Announces Third Quarter 2026 Financial Results and Raises 2026 Adjusted Diluted EPS Guidance
THIRD QUARTER 2026 FINANCIAL HIGHLIGHTS
-
Revenues before reimbursable expenses (RBR) increased
$50.2 million , or 11.6%, to a record$482.5 million in Q3 2026 from$432.4 million in Q3 2025. -
Net income was
$28.4 million , or 5.8% of total revenues, in Q3 2026, compared to$30.4 million , or 6.9% of total revenues, in Q3 2025. Results for Q3 2026 include a non-cash credit loss of$5.9 million related to the company's convertible debt investment in a third-party. -
Adjusted EBITDA(8), a non-GAAP financial measure, increased
$9.9 million , or 14.7%, to$77.3 million , or 16.0% of RBR(8), in Q3 2026 from$67.4 million , or 15.6% of RBR(8), in Q3 2025. -
Diluted earnings per share increased
$0.04 , or 2.3%, to$1.75 in Q3 2026 from$1.71 in Q3 2025. Results for Q3 2026 include the non-cash credit loss related to the company's convertible debt investment, which had an unfavorable$0.36 impact on diluted EPS for the period. -
Adjusted diluted earnings per share(8), a non-GAAP financial measure, increased
$0.52 , or 24.8%, to$2.62 in Q3 2026 from$2.10 in Q3 2025. -
Huron returned
$26.3 million to shareholders in Q3 2026 by repurchasing 0.2 million shares of the company's common stock.
YEAR-TO-DATE 2026 FINANCIAL HIGHLIGHTS
-
Revenues before reimbursable expenses (RBR) increased
$161.3 million , or 13.1%, to$1.39 billion for the first nine months of 2026 from$1.23 billion for the same prior year period. -
Net income increased
$8.5 million , or 11.4%, to$82.9 million , or 5.8% of total revenues, for the first nine months of 2026, compared to$74.4 million , or 5.9% of total revenues, for the same prior year period. -
Adjusted EBITDA(8), a non-GAAP measure, increased
$31.1 million , or 18.3%, to$200.6 million , or 14.4% of RBR(8), for the first nine months of 2026 from$169.5 million , or 13.8% of RBR(8), for the same prior year period. -
Diluted earnings per share increased
$0.83 , or 20.1%, to$4.96 for the first nine months of 2026, compared to$4.13 for the same prior year period. -
Adjusted diluted earnings per share(8), a non-GAAP measure, increased
$1.09 , or 19.2%, to$6.76 for the first nine months of 2026 from$5.67 for the same prior year period. -
Huron returned
$234.9 million to shareholders by repurchasing 1.7 million shares of the company's common stock in the first nine months of 2026, representing 10.0% of the company's common stock outstanding as ofDecember 31, 2025 .
2026 GUIDANCE AND OTHER HIGHLIGHTS
-
Huron raises the midpoint of its previous guidance for full year 2026 adjusted diluted earnings per share(8) to
$9.30 , and affirms the midpoint and narrows its previous guidance for full year 2026 RBR expectations to a range of$1.855 billion to$1.885 billion . -
On
October 29, 2026 , Huron's board of directors authorized an increase to the company's share repurchase program from$900 million to$1.1 billion and an extension of the share repurchase program throughDecember 31, 2028 . -
Huron has been recognized by
Consulting Magazine as a Best Firm to Work For for the 16th consecutive year. - Huron was recognized by Fortune as one of its 2026 Best Workplaces in Consulting & Professional Services.
“We achieved record revenues before reimbursable expenses (RBR) in the third quarter of 2026, reflecting 12% growth over the third quarter of 2025. Our third quarter performance was driven by organic growth across all operating segments and double-digit percentage growth in our Consulting and Managed Services and Digital capabilities,” said
“Our third quarter results continue our strong multi-year performance, further demonstrating the consistent execution by our highly talented global team and the differentiation of our industry focused, proprietary offerings. Combined with our year-to-date performance, our strong backlog and pipeline give us confidence to narrow our full-year RBR guidance range and raise our earnings guidance, which, at the midpoint, reflect double-digit percentage RBR growth for full year 2026 and continued margin expansion, while establishing a solid base for continued growth in 2027,” added Hussey.
THIRD QUARTER 2026 RESULTS
Revenues before reimbursable expenses (RBR) increased
Net income was
Third quarter 2026 earnings before interest, taxes, depreciation and amortization (“EBITDA”)(8) increased
In addition to using EBITDA to evaluate the company’s financial performance, management uses other non-GAAP financial measures, which exclude the effect of the following items (in thousands).
|
|
Three Months Ended
|
||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
Amortization of intangible assets |
$ |
3,958 |
|
|
$ |
3,522 |
|
|
Restructuring charges |
$ |
1,228 |
|
|
$ |
3,521 |
|
|
Other losses(9) |
$ |
4,900 |
|
|
$ |
— |
|
|
Transaction-related expenses |
$ |
758 |
|
|
$ |
2,354 |
|
|
Unrealized loss on long-term investment |
$ |
5,928 |
|
|
$ |
— |
|
|
Tax effect of adjustments |
$ |
(2,533 |
) |
|
$ |
(2,443 |
) |
|
Foreign currency transaction gains, net |
$ |
(1,050 |
) |
|
$ |
(1,056 |
) |
Adjusted EBITDA(8) increased
The number of revenue-generating professionals(1), excluding Managed Services professionals, slightly increased 1.1% to 5,324 as of
Huron returned
YEAR-TO-DATE 2026 RESULTS
Revenues before reimbursable expenses (RBR) increased
Net income increased
EBITDA(8) increased
In addition to using EBITDA to evaluate the company’s financial performance, management uses other non-GAAP financial measures, which exclude the effect of the following items (in thousands).
|
|
Nine Months Ended
|
||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
Amortization of intangible assets |
$ |
11,798 |
|
|
$ |
7,860 |
|
|
Restructuring charges |
$ |
2,301 |
|
|
$ |
5,419 |
|
|
Other losses (gains)(9) |
$ |
12,590 |
|
|
$ |
(71 |
) |
|
Transaction-related expenses |
$ |
3,449 |
|
|
$ |
7,240 |
|
|
Unrealized losses on long-term investments, net |
$ |
7,100 |
|
|
$ |
16,139 |
|
|
Gain on sale of business |
$ |
(303 |
) |
|
$ |
— |
|
|
Tax effect of adjustments |
$ |
(6,899 |
) |
|
$ |
(8,827 |
) |
|
Foreign currency transaction gains, net |
$ |
(1,313 |
) |
|
$ |
(393 |
) |
Adjusted EBITDA(8), increased
The number of revenue-generating professionals(1), excluding Managed Services professionals, slightly increased 1.1% to 5,324 as of
Huron returned
OPERATING INDUSTRIES
The company’s year-to-date 2026 revenues before reimbursable expenses (RBR) by operating segment as a percentage of total company RBR are as follows: Healthcare (51%); Education (29%); and Commercial (20%). Financial results by operating industry are included in the attached schedules and in Huron's forthcoming Quarterly Report on Form 10-Q filing for the quarter ended
OUTLOOK FOR 2026
Based on currently available information, the company is affirming the midpoint and narrowing guidance for full year 2026 revenues before reimbursable expenses (RBR) to a range of
THIRD QUARTER 2026 WEBCAST
The company will host a webcast to discuss its financial results today,
USE OF NON-GAAP FINANCIAL MEASURES(8)
In evaluating the company’s financial performance and outlook, management uses EBITDA, adjusted EBITDA, adjusted EBITDA as a percentage of revenues before reimbursable expenses (RBR), adjusted net income, and adjusted diluted earnings per share, which are non-GAAP financial measures. Management uses these non-GAAP financial measures to gain an understanding of the company's comparative operating performance (when comparing such results with previous periods or forecasts). These non-GAAP financial measures are used by management in their financial and operating decision making because management believes they reflect the company's ongoing business in a manner that allows for meaningful period-to-period comparisons. Management also uses these non-GAAP financial measures when publicly providing the company's business outlook, for internal management purposes, and as a basis for evaluating potential acquisitions and dispositions. Management believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating Huron’s current operating performance and future prospects in the same manner as management does, if they so choose, and in comparing in a consistent manner Huron’s current financial results with Huron’s past financial results. Investors should recognize that these non-GAAP financial measures might not be comparable to similarly titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flows or liquidity prepared in accordance with accounting principles generally accepted in
Management has provided its outlook regarding adjusted EBITDA as a percentage of RBR and adjusted diluted earnings per share, both of which are non-GAAP financial measures and exclude certain charges. Management has not reconciled these non-GAAP financial measures to the corresponding GAAP financial measures because guidance for the various reconciling items is not provided. Management is unable to provide guidance for these reconciling items because they cannot determine their probable significance, as certain items are outside of the company's control and cannot be reasonably predicted since these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measures are not available without unreasonable effort.
ABOUT HURON
Huron is a global professional services firm that collaborates with organizations to help solve their most complex challenges and achieve their most ambitious goals. Working across the private and public sectors, we partner closely with clients to improve performance, accelerate transformation, and unlock new opportunities for growth.
Our clients choose us because of our deep industry and technical expertise and proven track record of turning sound strategies into action. By combining practical experience, innovative thinking, and advanced analytics and technology, Huron helps organizations translate today’s ideas into tangible results and long-term value. Learn more at www.huronconsultinggroup.com.
Statements in this press release that are not historical in nature, including those concerning the company’s current expectations about its future results, are “forward-looking” statements as defined in Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by words such as “may,” “should,” “expects,” “provides,” “anticipates,” “assumes,” “can,” “will,” “meets,” “could,” “likely,” “intends,” “might,” “predicts,” “seeks,” “would,” “believes,” “confidence,” “estimates,” “plans,” “positions,” “continues,” “goals,” “guidance,” or “outlook,” or similar expressions. These forward-looking statements reflect the company's current expectations about future requirements and needs, results, levels of activity, performance, or achievements. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: failure to achieve expected utilization rates, billing rates, and the necessary number of revenue-generating professionals; our ability to realize the expected benefits and potential opportunities of artificial intelligence (AI); inability to expand or adjust our service offerings in response to market demands; our dependence on renewal of client-based services; dependence on new business and retention of current clients and qualified personnel; failure to maintain third-party provider relationships and strategic alliances; inability to license technology to and from third parties; the impairment of goodwill; various factors related to income and other taxes; difficulties in successfully integrating the businesses we acquire and achieving expected benefits from such acquisitions; risks relating to privacy, information security, and related laws and standards; and a general downturn or volatility in market conditions, including as a result of current global trade tensions and/or tariffs. These forward-looking statements involve known and unknown risks, uncertainties, and other factors, including, among others, those described under “Item 1A. Risk Factors” in Huron's Annual Report on Form 10-K for the year ended December 31, 2025 that may cause actual results, levels of activity, performance or achievements to be materially different from any anticipated results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. The company disclaims any obligation to update or revise any forward-looking statements as a result of new information or future events, or for any other reason.
Please note that information contained in any referenced website is not incorporated by reference in this press release or considered to be part of this document. Such website references are intended to be inactive textual references only.
|
|
|||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
Revenues: |
|
|
|
|
|
|
|
||||||||
|
Revenues before reimbursable expenses |
$ |
482,518 |
|
|
$ |
432,361 |
|
|
$ |
1,391,866 |
|
|
$ |
1,230,556 |
|
|
Reimbursable expenses |
|
8,933 |
|
|
|
8,923 |
|
|
|
26,394 |
|
|
|
26,624 |
|
|
Total revenues |
|
491,451 |
|
|
|
441,284 |
|
|
|
1,418,260 |
|
|
|
1,257,180 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
|
Direct costs (exclusive of depreciation and amortization included below) |
|
324,080 |
|
|
|
288,803 |
|
|
|
943,461 |
|
|
|
835,874 |
|
|
Reimbursable expenses |
|
8,933 |
|
|
|
8,923 |
|
|
|
26,394 |
|
|
|
26,618 |
|
|
Selling, general and administrative expenses |
|
82,754 |
|
|
|
81,296 |
|
|
|
257,258 |
|
|
|
238,147 |
|
|
Other losses (gains) |
|
4,900 |
|
|
|
— |
|
|
|
12,590 |
|
|
|
(71 |
) |
|
Restructuring charges |
|
1,228 |
|
|
|
3,521 |
|
|
|
2,301 |
|
|
|
5,419 |
|
|
Depreciation and amortization |
|
10,726 |
|
|
|
8,741 |
|
|
|
30,595 |
|
|
|
22,807 |
|
|
Total operating expenses |
|
432,621 |
|
|
|
391,284 |
|
|
|
1,272,599 |
|
|
|
1,128,794 |
|
|
Operating income |
|
58,830 |
|
|
|
50,000 |
|
|
|
145,661 |
|
|
|
128,386 |
|
|
Other income (expense), net: |
|
|
|
|
|
|
|
||||||||
|
Interest expense, net of interest income |
|
(12,218 |
) |
|
|
(11,009 |
) |
|
|
(33,048 |
) |
|
|
(25,937 |
) |
|
Other income (expense), net |
|
(4,291 |
) |
|
|
3,655 |
|
|
|
(318 |
) |
|
|
(10,643 |
) |
|
Total other expense, net |
|
(16,509 |
) |
|
|
(7,354 |
) |
|
|
(33,366 |
) |
|
|
(36,580 |
) |
|
Income before taxes |
|
42,321 |
|
|
|
42,646 |
|
|
|
112,295 |
|
|
|
91,806 |
|
|
Income tax expense |
|
13,918 |
|
|
|
12,226 |
|
|
|
29,411 |
|
|
|
17,420 |
|
|
Net income |
$ |
28,403 |
|
|
$ |
30,420 |
|
|
$ |
82,884 |
|
|
$ |
74,386 |
|
|
Earnings per share: |
|
|
|
|
|
|
|
||||||||
|
Net income per basic share |
$ |
1.78 |
|
|
$ |
1.75 |
|
|
$ |
5.06 |
|
|
$ |
4.25 |
|
|
Net income per diluted share |
$ |
1.75 |
|
|
$ |
1.71 |
|
|
$ |
4.96 |
|
|
$ |
4.13 |
|
|
Weighted average shares used in calculating earnings per share: |
|
|
|
|
|
|
|
||||||||
|
Basic |
|
15,916 |
|
|
|
17,340 |
|
|
|
16,365 |
|
|
|
17,492 |
|
|
Diluted |
|
16,265 |
|
|
|
17,794 |
|
|
|
16,703 |
|
|
|
18,024 |
|
|
Comprehensive income (loss): |
|
|
|
|
|
|
|
||||||||
|
Net income |
$ |
28,403 |
|
|
$ |
30,420 |
|
|
$ |
82,884 |
|
|
$ |
74,386 |
|
|
Foreign currency translation adjustments, net of tax |
|
(575 |
) |
|
|
(2,042 |
) |
|
|
(4,313 |
) |
|
|
1,242 |
|
|
Unrealized loss on investment, net of tax |
|
(5,598 |
) |
|
|
— |
|
|
|
(6,928 |
) |
|
|
(15,766 |
) |
|
Unrealized gain (loss) on cash flow hedging instruments, net of tax |
|
2,891 |
|
|
|
(510 |
) |
|
|
5,818 |
|
|
|
(4,857 |
) |
|
Other comprehensive loss |
|
(3,282 |
) |
|
|
(2,552 |
) |
|
|
(5,423 |
) |
|
|
(19,381 |
) |
|
Comprehensive income |
$ |
25,121 |
|
|
$ |
27,868 |
|
|
$ |
77,461 |
|
|
$ |
55,005 |
|
|
|
|||||||
|
|
2026 |
|
2025 |
||||
|
Assets |
|
|
|
||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
25,618 |
|
|
$ |
24,508 |
|
|
Receivables from clients, net |
|
218,893 |
|
|
|
186,506 |
|
|
Unbilled services, net |
|
263,196 |
|
|
|
195,464 |
|
|
Income tax receivable |
|
15,394 |
|
|
|
8,430 |
|
|
Prepaid expenses and other current assets |
|
50,812 |
|
|
|
33,676 |
|
|
Total current assets |
|
573,913 |
|
|
|
448,584 |
|
|
Property and equipment, net |
|
27,853 |
|
|
|
23,472 |
|
|
Deferred income taxes, net |
|
3,557 |
|
|
|
3,563 |
|
|
Long-term investments, net |
|
22,405 |
|
|
|
36,433 |
|
|
Operating lease right-of-use assets |
|
23,754 |
|
|
|
20,027 |
|
|
Other non-current assets |
|
144,549 |
|
|
|
134,781 |
|
|
Intangible assets, net |
|
72,939 |
|
|
|
72,927 |
|
|
|
|
808,341 |
|
|
|
786,896 |
|
|
Total assets |
$ |
1,677,311 |
|
|
$ |
1,526,683 |
|
|
Liabilities and stockholders’ equity |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Accounts payable |
$ |
13,464 |
|
|
$ |
12,354 |
|
|
Accrued expenses and other current liabilities |
|
37,958 |
|
|
|
26,964 |
|
|
Accrued payroll and related benefits |
|
222,596 |
|
|
|
266,950 |
|
|
Accrued contingent consideration for business acquisitions |
|
18,551 |
|
|
|
11,153 |
|
|
Current maturities of long-term debt |
|
20,000 |
|
|
|
20,000 |
|
|
Current maturities of operating lease liabilities |
|
8,836 |
|
|
|
14,304 |
|
|
Deferred revenues |
|
38,314 |
|
|
|
31,708 |
|
|
Total current liabilities |
|
359,719 |
|
|
|
383,433 |
|
|
Non-current liabilities: |
|
|
|
||||
|
Deferred compensation and other liabilities |
|
62,676 |
|
|
|
63,316 |
|
|
Long-term debt, net of current portion |
|
793,886 |
|
|
|
489,665 |
|
|
Operating lease liabilities, net of current portion |
|
23,815 |
|
|
|
24,371 |
|
|
Deferred income taxes, net |
|
44,897 |
|
|
|
37,269 |
|
|
Total non-current liabilities |
|
925,274 |
|
|
|
614,621 |
|
|
Commitments and contingencies |
|
|
|
||||
|
Stockholders’ equity |
|
|
|
||||
|
Common stock; |
|
192 |
|
|
|
205 |
|
|
|
|
(210,600 |
) |
|
|
(189,989 |
) |
|
Additional paid-in capital |
|
8,898 |
|
|
|
87,885 |
|
|
Retained earnings |
|
605,416 |
|
|
|
636,693 |
|
|
Accumulated other comprehensive loss |
|
(11,588 |
) |
|
|
(6,165 |
) |
|
Total stockholders’ equity |
|
392,318 |
|
|
|
528,629 |
|
|
Total liabilities and stockholders’ equity |
$ |
1,677,311 |
|
|
$ |
1,526,683 |
|
|
|
|||||||
|
|
Nine Months Ended
|
||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
Cash flows from operating activities: |
|
|
|
||||
|
Net income |
$ |
82,884 |
|
|
$ |
74,386 |
|
|
Adjustments to reconcile net income to cash flows from operating activities: |
|
|
|
||||
|
Depreciation and amortization |
|
30,595 |
|
|
|
23,464 |
|
|
Non-cash lease expense |
|
4,970 |
|
|
|
4,483 |
|
|
Lease-related impairment charges |
|
— |
|
|
|
1,162 |
|
|
Gain on lease modification |
|
(4,063 |
) |
|
|
— |
|
|
Share-based compensation |
|
40,027 |
|
|
|
36,319 |
|
|
Amortization of debt discount and issuance costs |
|
865 |
|
|
|
858 |
|
|
Allowances for doubtful accounts |
|
122 |
|
|
|
390 |
|
|
Deferred income taxes |
|
4,104 |
|
|
|
9,104 |
|
|
Gain on sale of property and equipment |
|
(484 |
) |
|
|
— |
|
|
Gain on sale of business |
|
(303 |
) |
|
|
— |
|
|
Change in fair value of contingent consideration liabilities |
|
12,590 |
|
|
|
(71 |
) |
|
Change in fair value of equity investment |
|
2,239 |
|
|
|
5,014 |
|
|
Change in credit allowance on convertible debt investment |
|
4,861 |
|
|
|
11,125 |
|
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
||||
|
(Increase) decrease in receivables from clients, net |
|
(26,251 |
) |
|
|
1,369 |
|
|
(Increase) decrease in unbilled services, net |
|
(64,004 |
) |
|
|
(32,107 |
) |
|
(Increase) decrease in current income tax receivable / payable, net |
|
(7,175 |
) |
|
|
(17,462 |
) |
|
(Increase) decrease in other assets |
|
(16,797 |
) |
|
|
(17,689 |
) |
|
Increase (decrease) in accounts payable and other liabilities |
|
(13,194 |
) |
|
|
1,524 |
|
|
Increase (decrease) in accrued payroll and related benefits |
|
(42,128 |
) |
|
|
(36,769 |
) |
|
Increase (decrease) in deferred revenues |
|
6,471 |
|
|
|
1,887 |
|
|
Net cash provided by operating activities |
|
15,329 |
|
|
|
66,987 |
|
|
Cash flows from investing activities: |
|
|
|
||||
|
Purchases of property and equipment |
|
(14,673 |
) |
|
|
(7,859 |
) |
|
Investments in life insurance policies |
|
— |
|
|
|
(2,897 |
) |
|
Purchases of businesses, net of cash acquired |
|
(27,817 |
) |
|
|
(107,174 |
) |
|
Capitalization of internally developed software costs |
|
(14,246 |
) |
|
|
(15,406 |
) |
|
Origination of note receivable |
|
(2,000 |
) |
|
|
— |
|
|
Proceeds from note receivable |
|
2,250 |
|
|
|
154 |
|
|
Proceeds from sale of property and equipment |
|
502 |
|
|
|
— |
|
|
Proceeds from divestiture of business |
|
300 |
|
|
|
— |
|
|
Net cash used in investing activities |
|
(55,684 |
) |
|
|
(133,182 |
) |
|
Cash flows from financing activities: |
|
|
|
||||
|
Proceeds from exercises of stock options |
|
1,119 |
|
|
|
4,142 |
|
|
Shares redeemed for employee tax withholdings |
|
(21,083 |
) |
|
|
(32,974 |
) |
|
Share repurchases |
|
(233,651 |
) |
|
|
(153,097 |
) |
|
Proceeds from bank borrowings |
|
722,000 |
|
|
|
1,041,000 |
|
|
Repayments of bank borrowings |
|
(418,000 |
) |
|
|
(787,688 |
) |
|
Payments for debt issuance costs |
|
— |
|
|
|
(3,100 |
) |
|
Deferred payments for business acquisitions |
|
(8,700 |
) |
|
|
(36 |
) |
|
Net cash provided by financing activities |
|
41,685 |
|
|
|
68,247 |
|
|
Effect of exchange rate changes on cash |
|
(220 |
) |
|
|
(74 |
) |
|
Net increase in cash and cash equivalents |
|
1,110 |
|
|
|
1,978 |
|
|
Cash and cash equivalents at beginning of the period |
|
24,508 |
|
|
|
21,911 |
|
|
Cash and cash equivalents at end of the period |
$ |
25,618 |
|
|
$ |
23,889 |
|
|
|
||||||||||||||||||||
|
|
|
Three Months Ended
|
|
Percent Increase (Decrease) |
|
Nine Months Ended
|
|
Percent Increase (Decrease) |
||||||||||||
|
Segment and Consolidated Operating Results (in thousands): |
|
|
2026 |
|
|
|
2025 |
|
|
|
|
2026 |
|
|
|
2025 |
|
|
||
|
Healthcare: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Revenues before reimbursable expenses |
|
$ |
255,761 |
|
|
$ |
219,541 |
|
|
16.5% |
|
$ |
713,265 |
|
|
$ |
615,853 |
|
|
15.8% |
|
Operating income |
|
$ |
77,901 |
|
|
$ |
67,757 |
|
|
15.0% |
|
$ |
211,756 |
|
|
$ |
183,724 |
|
|
15.3% |
|
Segment operating margin |
|
|
30.5 |
% |
|
|
30.9 |
% |
|
|
|
|
29.7 |
% |
|
|
29.8 |
% |
|
|
|
Education: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Revenues before reimbursable expenses |
|
$ |
137,985 |
|
|
$ |
129,424 |
|
|
6.6% |
|
$ |
404,828 |
|
|
$ |
381,473 |
|
|
6.1% |
|
Operating income |
|
$ |
40,211 |
|
|
$ |
33,233 |
|
|
21.0% |
|
$ |
105,205 |
|
|
$ |
88,622 |
|
|
18.7% |
|
Segment operating margin |
|
|
29.1 |
% |
|
|
25.7 |
% |
|
|
|
|
26.0 |
% |
|
|
23.2 |
% |
|
|
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Revenues before reimbursable expenses |
|
$ |
88,772 |
|
|
$ |
83,396 |
|
|
6.4% |
|
$ |
273,773 |
|
|
$ |
233,230 |
|
|
17.4% |
|
Operating income |
|
$ |
12,310 |
|
|
$ |
13,659 |
|
|
(9.9)% |
|
$ |
46,958 |
|
|
$ |
37,462 |
|
|
25.3% |
|
Segment operating margin |
|
|
13.9 |
% |
|
|
16.4 |
% |
|
|
|
|
17.2 |
% |
|
|
16.1 |
% |
|
|
|
Total Huron: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Revenues before reimbursable expenses |
|
$ |
482,518 |
|
|
$ |
432,361 |
|
|
11.6% |
|
$ |
1,391,866 |
|
|
$ |
1,230,556 |
|
|
13.1% |
|
Reimbursable expenses |
|
|
8,933 |
|
|
|
8,923 |
|
|
0.1% |
|
|
26,394 |
|
|
|
26,624 |
|
|
(0.9)% |
|
Total revenues |
|
$ |
491,451 |
|
|
$ |
441,284 |
|
|
11.4% |
|
$ |
1,418,260 |
|
|
$ |
1,257,180 |
|
|
12.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Items not allocated at the segment level: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Unallocated corporate expenses |
|
|
58,722 |
|
|
|
56,549 |
|
|
3.8% |
|
|
184,122 |
|
|
|
163,201 |
|
|
12.8% |
|
Other losses (gains) |
|
|
4,900 |
|
|
|
— |
|
|
N/M |
|
|
12,590 |
|
|
|
(71 |
) |
|
N/M |
|
Restructuring charges |
|
|
595 |
|
|
|
2,432 |
|
|
(75.5)% |
|
|
625 |
|
|
|
4,279 |
|
|
(85.4)% |
|
Depreciation and amortization |
|
|
7,375 |
|
|
|
5,668 |
|
|
30.1% |
|
|
20,921 |
|
|
|
14,013 |
|
|
49.3% |
|
Operating income |
|
|
58,830 |
|
|
|
50,000 |
|
|
17.7% |
|
|
145,661 |
|
|
|
128,386 |
|
|
13.5% |
|
Other expense, net |
|
|
(16,509 |
) |
|
|
(7,354 |
) |
|
124.5% |
|
|
(33,366 |
) |
|
|
(36,580 |
) |
|
(8.8)% |
|
Income before taxes |
|
$ |
42,321 |
|
|
$ |
42,646 |
|
|
(0.8)% |
|
$ |
112,295 |
|
|
$ |
91,806 |
|
|
22.3% |
|
Other Operating Data: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Number of revenue-generating professionals by segment (at period end)(1): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Healthcare(3) |
|
|
1,712 |
|
|
|
1,582 |
|
|
8.2% |
|
|
1,712 |
|
|
|
1,582 |
|
|
8.2% |
|
Education(4) |
|
|
1,044 |
|
|
|
1,187 |
|
|
(12.0)% |
|
|
1,044 |
|
|
|
1,187 |
|
|
(12.0)% |
|
Commercial(2)(3) |
|
|
2,568 |
|
|
|
2,496 |
|
|
2.9% |
|
|
2,568 |
|
|
|
2,496 |
|
|
2.9% |
|
Total (excluding Managed Services) |
|
|
5,324 |
|
|
|
5,265 |
|
|
1.1% |
|
|
5,324 |
|
|
|
5,265 |
|
|
1.1% |
|
Managed Services(4)(5) |
|
|
4,216 |
|
|
|
2,070 |
|
|
103.7% |
|
|
4,216 |
|
|
|
2,070 |
|
|
103.7% |
|
Total |
|
|
9,540 |
|
|
|
7,335 |
|
|
30.1% |
|
|
9,540 |
|
|
|
7,335 |
|
|
30.1% |
|
Revenues before reimbursable expenses by capability: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Consulting and Managed Services(4)(6) |
|
$ |
287,549 |
|
|
$ |
256,319 |
|
|
12.2% |
|
$ |
835,087 |
|
|
$ |
709,362 |
|
|
17.7% |
|
Digital |
|
|
194,969 |
|
|
|
176,042 |
|
|
10.8% |
|
|
556,779 |
|
|
|
521,194 |
|
|
6.8% |
|
Total |
|
$ |
482,518 |
|
|
$ |
432,361 |
|
|
11.6% |
|
$ |
1,391,866 |
|
|
$ |
1,230,556 |
|
|
13.1% |
|
Number of revenue-generating professionals by capability (at period end)(1): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Consulting(4) |
|
|
2,131 |
|
|
|
2,160 |
|
|
(1.3)% |
|
|
2,131 |
|
|
|
2,160 |
|
|
(1.3)% |
|
Managed Services(4)(5) |
|
|
4,216 |
|
|
|
2,070 |
|
|
103.7% |
|
|
4,216 |
|
|
|
2,070 |
|
|
103.7% |
|
Digital |
|
|
3,193 |
|
|
|
3,105 |
|
|
2.8% |
|
|
3,193 |
|
|
|
3,105 |
|
|
2.8% |
|
Total |
|
|
9,540 |
|
|
|
7,335 |
|
|
30.1% |
|
|
9,540 |
|
|
|
7,335 |
|
|
30.1% |
|
Utilization rate by capability(7): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Consulting |
|
|
76.2 |
% |
|
|
73.7 |
% |
|
|
|
|
77.3 |
% |
|
|
74.9 |
% |
|
|
|
Digital |
|
|
81.2 |
% |
|
|
77.1 |
% |
|
|
|
|
79.3 |
% |
|
|
77.7 |
% |
|
|
|
|
|||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
Revenues before reimbursable expenses |
$ |
482,518 |
|
|
$ |
432,361 |
|
|
$ |
1,391,866 |
|
|
$ |
1,230,556 |
|
|
Reimbursable expenses |
|
8,933 |
|
|
|
8,923 |
|
|
|
26,394 |
|
|
|
26,624 |
|
|
Total revenues |
$ |
491,451 |
|
|
$ |
441,284 |
|
|
$ |
1,418,260 |
|
|
$ |
1,257,180 |
|
|
Net income |
$ |
28,403 |
|
|
$ |
30,420 |
|
|
$ |
82,884 |
|
|
$ |
74,386 |
|
|
Net income as a percentage of total revenues |
|
5.8 |
% |
|
|
6.9 |
% |
|
|
5.8 |
% |
|
|
5.9 |
% |
|
Add back: |
|
|
|
|
|
|
|
||||||||
|
Income tax expense |
|
13,918 |
|
|
|
12,226 |
|
|
|
29,411 |
|
|
|
17,420 |
|
|
Interest expense, net of interest income |
|
12,218 |
|
|
|
11,009 |
|
|
|
33,048 |
|
|
|
25,937 |
|
|
Depreciation and amortization |
|
11,033 |
|
|
|
8,961 |
|
|
|
31,399 |
|
|
|
23,428 |
|
|
Earnings before interest, taxes, depreciation and amortization (EBITDA)(8) |
|
65,572 |
|
|
|
62,616 |
|
|
|
176,742 |
|
|
|
141,171 |
|
|
Add back: |
|
|
|
|
|
|
|
||||||||
|
Restructuring charges |
|
1,228 |
|
|
|
3,521 |
|
|
|
2,301 |
|
|
|
5,419 |
|
|
Other losses (gains)(9) |
|
4,900 |
|
|
|
— |
|
|
|
12,590 |
|
|
|
(71 |
) |
|
Transaction-related expenses |
|
758 |
|
|
|
2,354 |
|
|
|
3,449 |
|
|
|
7,240 |
|
|
Unrealized losses on long-term investments, net |
|
5,928 |
|
|
|
— |
|
|
|
7,100 |
|
|
|
16,139 |
|
|
Gain on sale of business |
|
— |
|
|
|
— |
|
|
|
(303 |
) |
|
|
— |
|
|
Foreign currency transaction gains, net |
|
(1,050 |
) |
|
|
(1,056 |
) |
|
|
(1,313 |
) |
|
|
(393 |
) |
|
Adjusted EBITDA(8) |
$ |
77,336 |
|
|
$ |
67,435 |
|
|
$ |
200,566 |
|
|
$ |
169,505 |
|
|
Adjusted EBITDA as a percentage of revenues before reimbursable expenses(8) |
|
16.0 |
% |
|
|
15.6 |
% |
|
|
14.4 |
% |
|
|
13.8 |
% |
|
|
|||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
Net income |
$ |
28,403 |
|
|
$ |
30,420 |
|
|
$ |
82,884 |
|
|
$ |
74,386 |
|
|
Weighted average shares - diluted |
|
16,265 |
|
|
|
17,794 |
|
|
|
16,703 |
|
|
|
18,024 |
|
|
Diluted earnings per share |
$ |
1.75 |
|
|
$ |
1.71 |
|
|
$ |
4.96 |
|
|
$ |
4.13 |
|
|
Add back: |
|
|
|
|
|
|
|
||||||||
|
Amortization of intangible assets |
|
3,958 |
|
|
|
3,522 |
|
|
|
11,798 |
|
|
|
7,860 |
|
|
Restructuring charges |
|
1,228 |
|
|
|
3,521 |
|
|
|
2,301 |
|
|
|
5,419 |
|
|
Other losses (gains)(9) |
|
4,900 |
|
|
|
— |
|
|
|
12,590 |
|
|
|
(71 |
) |
|
Transaction-related expenses |
|
758 |
|
|
|
2,354 |
|
|
|
3,449 |
|
|
|
7,240 |
|
|
Unrealized losses on long-term investments, net |
|
5,928 |
|
|
|
— |
|
|
|
7,100 |
|
|
|
16,139 |
|
|
Gain on sale of business |
|
— |
|
|
|
— |
|
|
|
(303 |
) |
|
|
— |
|
|
Tax effect of adjustments |
|
(2,533 |
) |
|
|
(2,443 |
) |
|
|
(6,899 |
) |
|
|
(8,827 |
) |
|
Total adjustments, net of tax |
|
14,239 |
|
|
|
6,954 |
|
|
|
30,036 |
|
|
|
27,760 |
|
|
Adjusted net income(8) |
$ |
42,642 |
|
|
$ |
37,374 |
|
|
$ |
112,920 |
|
|
$ |
102,146 |
|
|
Adjusted weighted average shares - diluted |
|
16,265 |
|
|
|
17,794 |
|
|
|
16,703 |
|
|
|
18,024 |
|
|
Adjusted diluted earnings per share(8) |
$ |
2.62 |
|
|
$ |
2.10 |
|
|
$ |
6.76 |
|
|
$ |
5.67 |
|
|
(1) |
Consists of our full-time consultants who generate revenues based on the number of hours worked; full-time equivalents, which consists of coaches and their support staff within the culture and organizational excellence solution, consultants who work variable schedules as needed by clients, and full-time employees who provide software support and maintenance services to clients; and our Managed Services professionals who provide revenue cycle, clinical and patient access managed services, research administration managed services and outsourcing at our healthcare, education and research-focused clients. |
|
|
|
|
(2) |
The majority of our revenue-generating professionals within our Commercial segment can provide services across all of our industries, including healthcare and education, and the related costs of these professionals are allocated to each of the segments. |
|
|
|
|
(3) |
During the first quarter of 2026, we reclassified the revenue-generating professionals within one of Commercial's Digital offerings to the same Digital offering within Healthcare as these revenue-generating professionals primarily provide services to clients in the healthcare industry. This reclassification had no impact on the total Huron headcount or RBR reported for any period. |
|
|
|
|
|
The number of revenue-generating professionals within this offering as of |
|
|
|
|
(4) |
During the first quarter of 2026, we reclassified one of the offerings within Education's Managed Services capability to Education's Consulting capability. This reclassification had no impact on the total Huron headcount or RBR reported for any period. |
|
|
|
|
|
The number of revenue-generating professionals within this offering as of |
|
|
|
|
|
RBR generated by this offering during the quarters ended |
|
|
|
|
(5) |
We have separately presented the total number of revenue-generating professionals within our Managed Services capabilities of our Healthcare and Education segments. Our Healthcare Managed Services professionals provide revenue cycle, clinical and patient access services from patient scheduling and clinical triage through billing and collections. Our Education Managed Services professionals provide research administration managed services and outsourcing at our education and research-focused clients. |
|
|
|
|
|
The number of Managed Services professionals within our Healthcare segment was 4,091 and 1,977 as of |
|
|
|
|
|
The number of Managed Services professionals within our Education segment was 125 and 93 as of |
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(6) |
Managed Services capability RBR within our Healthcare segment was |
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Managed Services capability RBR within our Education segment was |
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(7) |
Utilization rate is calculated by dividing the number of hours our billable consultants worked on client assignments during a period by the total available working hours for these billable consultants during the same period. Available working hours are determined by the standard hours worked by each billable consultant, adjusted for part-time hours, and |
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(8) |
In evaluating the company’s financial performance and outlook, management uses earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA, adjusted EBITDA as a percentage of revenues before reimbursable expenses, adjusted net income, and adjusted diluted earnings per share, which are non-GAAP financial measures. Management uses these non-GAAP financial measures to gain an understanding of the company's comparative operating performance (when comparing such results with previous periods or forecasts). These non-GAAP financial measures are used by management in their financial and operating decision making because management believes they reflect the company's ongoing business in a manner that allows for meaningful period-to-period comparisons. Management also uses these non-GAAP financial measures when publicly providing the company's business outlook, for internal management purposes, and as a basis for evaluating potential acquisitions and dispositions. Management believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating Huron’s current operating performance and future prospects in the same manner as management does, if they so choose, and in comparing in a consistent manner Huron’s current financial results with Huron’s past financial results. Investors should recognize that these non-GAAP financial measures might not be comparable to similarly titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flows or liquidity prepared in accordance with accounting principles generally accepted in the United States. |
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(9) |
The non-GAAP financial measures for the three and nine months ended |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20261103893261/en/
MEDIA CONTACT
abovis@hcg.com
INVESTOR CONTACT
investor@hcg.com
Source: Huron