Huron Consulting | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 475.04 M

Revenue: As of FY2026 Q2, the actual value is USD 475.04 M, beating the estimate of USD 448.97 M.

EPS: As of FY2026 Q2, the actual value is USD 1.91, beating the estimate of USD 1.8425.

EBIT: As of FY2026 Q2, the actual value is USD 62.19 M.

Financial Highlights - Second Quarter 2026

Huron Consulting Group Inc. reported record revenues before reimbursable expenses (RBR) of $465.6 million in Q2 2026, marking a 15.7% increase from $402.5 million in Q2 2025. This growth included $19.5 million of incremental RBR from acquisitions, with organic RBR growth at 10.8%. Net income rose by 60.8% to $31.2 million in Q2 2026, up from $19.4 million in Q2 2025. Adjusted EBITDA, a non-GAAP measure, increased by 19.9% to $72.6 million in Q2 2026 from $60.6 million in Q2 2025, with adjusted EBITDA as a percentage of RBR at 15.6% compared to 15.1% in the prior year period. Operating income for Q2 2026 was $50.248 million, an increase of 10.1% from $45.654 million in Q2 2025. Cash flow from operating activities increased by 50.5% to $120.5 million in Q2 2026, compared to $80.0 million in Q2 2025. The company repurchased 0.4 million shares of common stock for $53.1 million in Q2 2026.

Financial Highlights - Year-to-Date 2026

For the first six months of 2026, RBR increased by 13.9% to $909.3 million, up from $798.2 million in the same prior year period. This includes $38.7 million of incremental RBR from acquisitions, with organic RBR growth at 9.1%. Net income for the first six months of 2026 increased by 23.9% to $54.5 million, compared to $44.0 million in the prior year period. Adjusted EBITDA for the first six months of 2026 increased by 20.7% to $123.2 million from $102.1 million in the prior year period, with adjusted EBITDA as a percentage of RBR at 13.6% compared to 12.8%. Operating income for the first six months of 2026 was $86.831 million, an increase of 10.8% from $78.386 million in the prior year period. Huron Consulting Group Inc. returned $208.6 million to shareholders by repurchasing 1.6 million shares of common stock in the first six months of 2026.

Segment Performance (Year-to-Date 2026 RBR)

• Healthcare: RBR was $457.504 million, an increase of 15.4% from $396.312 million in the prior year period, with an operating income of $133.855 million (up 15.4%) and a segment operating margin of 29.3%.
• Education: RBR was $266.843 million, an increase of 5.9% from $252.049 million in the prior year period, with an operating income of $64.994 million (up 17.3%) and a segment operating margin of 24.4%.
• Commercial: RBR was $185.001 million, an increase of 23.5% from $149.834 million in the prior year period, with an operating income of $34.648 million (up 45.6%) and a segment operating margin of 18.7%.

Operational Metrics (as of June 30, 2026)

The total number of revenue-generating professionals increased by 34.4% to 9,248 from 6,881 as of June 30, 2025. Revenue-generating professionals (excluding Managed Services) increased by 7.0% to 5,335, while Managed Services professionals increased to 3,913 from 1,895, partly due to the acquisition of RelateCare adding approximately 1,100 professionals. The utilization rate for the Consulting capability increased to 81.3% in Q2 2026 from 77.0% in Q2 2025, and for the Digital capability, it increased to 81.8% from 77.8%.

Cash Flows (Six Months Ended June 30, 2026)

Net cash used in operating activities was - $41.702 million, compared to - $26.780 million in the prior year period. Net cash used in investing activities was - $47.730 million, compared to - $70.080 million in the prior year period. Net cash provided by financing activities was $96.297 million, compared to $135.804 million in the prior year period. Cash and cash equivalents at the end of the period stood at $31.228 million, compared to $61.011 million at the end of the prior year period.

Outlook for 2026

Huron Consulting Group Inc. has increased its full-year 2026 guidance, expecting RBR in a range of $1.85 billion to $1.89 billion. The company anticipates adjusted EBITDA as a percentage of RBR to be between 14.5% and 15.0%. Adjusted diluted earnings per share guidance is set in a range of $9.00 to $9.40.