FTI Consulting Reveals Q2 2025 Financial Performance Insights
FTI Consulting Reports Robust Second Quarter Financial Results
FTI Consulting, Inc. (NYSE: FCN) recently announced its financial results for the second quarter, revealing revenues of $943.7 million. This figure represents a slight decline of $5.5 million or 0.6% from the previous year’s revenue of $949.2 million.
Key Financial Metrics for the Quarter
When considering foreign currency impact, the actual decrease in revenue equated to $17.6 million, or 1.8%. This reduction was largely attributed to diminished earnings from the Economic Consulting and Technology segments, although it was counterbalanced to an extent by increased revenues from other segments.
Profitability Overview
In net income terms, FTI Consulting recorded $71.7 million for Q2 2025, down from $83.9 million from the prior-year quarter. Factors contributing to this decline include reduced revenues, heightened direct costs, and an unfavorable foreign exchange impact- along with a higher tax rate. However, operational cost efficiencies helped offset some of these negatives, yielding adjusted EBITDA of $111.6 million (11.8% of revenues), compared to $115.9 million (12.2% of revenues) last year.
Segment Performance Highlights
The Corporate Finance & Restructuring division saw an impressive 9.0% growth, generating $379.2 million, fueled by demand for advisory services in restructuring and transactions. Conversely, Forensic and Litigation Consulting reported revenues of $186.5 million, marking a 10.0% increase from $169.5 million the previous year.
Economic Consulting and Technology Segment Trends
In stark contrast, the Economic Consulting sector faced challenges, with revenues dropping by 17.0% to $191.7 million due to reduced demand for specific antitrust services and a decline in consulting activity. The Technology segment experienced even steeper declines, with revenues falling 27.9% to $83.6 million, impacted primarily by a slowdown in merger-related requests.
Cash Flow and Stockholder Actions
Net cash from operating activities amounted to $55.7 million for the quarter, a significant drop compared to $135.2 million in the previous year, primarily due to increased forgivable loan issuances and tax payments. FTI Consulting actively repurchased shares, acquiring 2,192,333 at an average price of $161.88, totaling $354.9 million, leaving about $309.3 million for future repurchases.
2025 Revenue and EPS Guidance Update
FTI Consulting has revised its total revenue guidance for 2025, estimating revenues will range from $3.660 billion to $3.760 billion. Expect adjusted earnings per share (EPS) to range between $7.80 and $8.40, with such expectations reflecting a first quarter charge to align staffing levels with demand issues.
About FTI Consulting
FTI Consulting, Inc. is a global consulting firm specializing in helping organizations navigate significant challenges and transformations. The firm has grown significantly, with over 7,900 employees spread across 32 countries, generating approximately $3.70 billion in revenues for the 2024 fiscal year. They are committed to providing durable solutions, with a focus on fostering deep client relationships that yield impactful results.
Frequently Asked Questions
1. What are the primary business segments of FTI Consulting?
FTI Consulting operates primarily through Corporate Finance & Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology, and Strategic Communications segments.
2. How did FTI Consulting perform in Q2 compared to the previous year?
FTI Consulting's Q2 2025 revenues were $943.7 million, a minor decline from $949.2 million in Q2 2024, while net income dropped from $83.9 million to $71.7 million.
3. What factors contributed to the revenue decline in the Economic Consulting segment?
Reduced demand for M&A-related antitrust consulting and general decreased consulting activity were the primary drivers of the revenue decline in the Economic Consulting segment.
4. What is the adjusted EPS guidance for FTI Consulting in 2025?
The adjusted EPS guidance for FTI Consulting ranges from $7.80 to $8.40 for the year 2025.
5. How has FTI Consulting managed its capital allocation?
The company has implemented a robust stock repurchase program, committing approximately $354.9 million to buy back shares within the quarter, showcasing commitment to enhancing shareholder value.
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