FTI Consulting's Q2 2025 Insights: A Shift in Performance

FTI Consulting's Financial Performance Overview

FTI Consulting, Inc. (NYSE: FCN) has announced its financial results for the second quarter of 2025, highlighting key highlights such as revenues, earnings per share, and operational dynamics.

Understanding Revenue Changes in Q2 2025

The revenue for the second quarter of 2025 was reported at $943.7 million. This figure represents a decrease of $5.5 million, equating to a drop of 0.6% when compared to the $949.2 million generated in the same quarter of the previous year. When adjusting for currency fluctuations, the decline is noted as 1.8%, which translates to a reduction of $17.6 million.

Factors Contributing to Revenue Fluctuation

The decline in revenue can be attributed primarily to reduced earnings in the Economic Consulting and Technology segments. However, it was important to note that this reduction was somewhat counterbalanced by improved revenues from Corporate Finance & Restructuring, Forensic and Litigation Consulting, and Strategic Communications segments.

Notable Earnings Highlights

The net income for FTI Consulting in Q2 2025 stood at $71.7 million, down from $83.9 million in the same period last year. This decline was driven by the noted revenue reductions along with an uptick in direct costs, which included increased forgivable loan amortization and an unfavorable foreign exchange remeasurement loss.

Adjusted EBITDA and Earnings per Share (EPS)

Adjusted EBITDA for the quarter was $111.6 million, representing 11.8% of revenues. This figure showed a drop from 12.2% in the prior year, as associated with the reduction in overall revenue. Furthermore, the earnings per diluted share (EPS) for this quarter came in at $2.13, a decline from the $2.34 reported in Q2 2024.

Cash Flow and Position Overview

During the quarter ending June 30, 2025, net cash generated from operating activities totaled $55.7 million, significantly decreased from $135.2 million observed in the previous year's comparable period. This downward trend was primarily due to increased forgivable loan issuances along with rising compensation costs and income tax payments, though it was partially offset by stronger cash collections.

Stock Repurchases and Cash Reserves

In Q2 2025, FTI Consulting engaged in significant stock repurchases, acquiring 2,192,333 shares at an average cost of $161.88, totaling $354.9 million. By the quarter's end, the company's cash and cash equivalents were recorded at $152.8 million, decreasing from $226.4 million in Q2 2024.

Segment Performance Breakdown

Looking into segment performance, FTI Consulting experienced different growth patterns across its key segments.

Corporate Finance & Restructuring

This segment saw revenue growth of 9.0%, totalling $379.2 million, primarily driven by heightened demand for restructuring services and various transactions.

Forensic and Litigation Consulting

In this segment, the revenue increased by 10.0%, marking a total revenue of $186.5 million, attributed to rising realized bill rates in risk and investigations services.

Economic Consulting

Unfortunately, the Economic Consulting segment faced considerable challenges with a revenue drop of 17.0%, reflecting lower demand for merger and acquisition-related services.

Technology and Strategic Communications

The Technology segment observed a decrease of 27.9%, while Strategic Communications enjoyed a 20.8% increase in revenues, showcasing the varied market demands affecting performance.

FTI's Updated Guidance for 2025

Looking ahead, FTI Consulting has provided updated guidance for 2025, estimating full-year revenues between $3.660 billion and $3.760 billion, with earnings per share expected to range from $7.24 to $7.84.

Conclusion and Key Takeaways

FTI Consulting's second quarter results for 2025 have illustrated the complexities within the consulting landscape. While certain segments faced challenges, strategic areas showcased resilience. Looking forward, the Company prioritizes growth strategies while navigating the nuanced financial environment.

Frequently Asked Questions

What were FTI Consulting's revenues for Q2 2025?

FTI Consulting reported revenues of $943.7 million for the second quarter of 2025.

How did the adjusting EBITDA change?

Adjusted EBITDA for Q2 2025 was $111.6 million, indicating a decrease from the previous year.

What is FTI Consulting's EPS for this quarter?

The earnings per diluted share for Q2 2025 was $2.13, down from $2.34 in the prior year.

How many shares did FTI Consulting repurchase in Q2 2025?

FTI Consulting repurchased 2,192,333 shares of its common stock at an average price of $161.88.

What is the company’s revenue guidance for the full year 2025?

FTI Consulting estimates its full-year revenues for 2025 will range from $3.660 billion to $3.760 billion.

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