Huron (HURN) grows Q1 2026 revenue 12% and reaffirms full-year outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Huron Consulting Group reported strong first quarter 2026 growth and reaffirmed its full-year outlook. Revenues before reimbursable expenses rose 12.1% to $443.7 million, helped by acquisitions and solid demand in Healthcare, Education, and Commercial, with Healthcare delivering record performance.
Net income was $23.2 million versus $24.5 million a year earlier, as a higher tax expense offset operating gains, while diluted EPS edged up to $1.34. Adjusted EBITDA increased to $50.6 million, or 11.4% of RBR, and adjusted diluted EPS reached $1.73.
The company returned $155.5 million to shareholders through repurchases of about 1.1 million shares, approximately 6.5% of shares outstanding as of December 31, 2025. For 2026, Huron reaffirmed guidance for RBR of $1.78–$1.86 billion, adjusted EBITDA margin of 14.5–15.0%, and adjusted diluted EPS of $8.35–$9.15.
Positive
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Negative
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Insights
Huron posted solid Q1 revenue and margin gains while reaffirming strong 2026 guidance.
Huron delivered 12.1% revenue growth to $443.7M in Q1 2026, with all three segments contributing and Healthcare reaching record revenues. EBITDA rose more than revenue, lifting adjusted EBITDA to $50.6M and expanding margin to 11.4% of RBR.
GAAP net income dipped slightly to $23.2M, mainly due to a swing from a prior tax benefit to a current tax expense, while diluted EPS held essentially flat at $1.34. Adjusted diluted EPS increased modestly to $1.73, reflecting underlying operating improvement.
The company was active on capital allocation, repurchasing $155.5M of stock, or about 6.5% of shares outstanding as of December 31, 2025. Reaffirmed 2026 guidance for RBR of $1.78–$1.86B, adjusted EBITDA margin of 14.5–15.0%, and adjusted EPS of $8.35–$9.15 signals confidence in demand trends and cost discipline.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 revenues before reimbursable expenses: $443.7M
Q1 2026 net income: $23.2M
Q1 2026 adjusted EBITDA: $50.6M
+5 more
8 metrics
Q1 2026 revenues before reimbursable expenses
$443.7M
Up 12.1% from $395.7M in Q1 2025
Q1 2026 net income
$23.2M
Versus $24.5M in Q1 2025
Q1 2026 adjusted EBITDA
$50.6M
11.4% of RBR; up from $41.5M and 10.5% a year ago
Q1 2026 diluted EPS
$1.34/share
Slightly above $1.33 in Q1 2025
Q1 2026 adjusted diluted EPS
$1.73/share
Up from $1.68 in Q1 2025
2026 RBR guidance range
$1.78B–$1.86B
Full-year revenues before reimbursable expenses outlook
Share repurchases Q1 2026
$155.5M, 1.1M shares
6.5% of common stock outstanding as of Dec. 31, 2025
Total revenue Q1 2026
$451.8M
Includes $8.1M reimbursable expenses; up from $404.1M
Key Terms
Revenues before reimbursable expenses (RBR), Adjusted EBITDA, Managed Services professionals, Segment operating margin, +1 more
5 terms
Revenues before reimbursable expenses (RBR) financial
"Revenues before reimbursable expenses (RBR) increased $48.0 million, or 12.1%, to a record $443.7 million in Q1 2026"
Revenues before reimbursable expenses (RBR) is the amount a company reports from its sales or services after removing costs that are simply passed on to customers, such as travel, materials or third‑party fees that the customer pays back. Investors use RBR to see the company’s core sales performance — like looking at a restaurant’s menu prices before adding tax and a tip — because it gives a clearer view of margins, operational efficiency and trends in demand without noise from one‑off or pass‑through charges.
Adjusted EBITDA financial
"Adjusted EBITDA(9), a non-GAAP financial measure, increased $9.1 million, or 21.9%, to $50.6 million in Q1 2026"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Managed Services professionals financial
"The number of Managed Services professionals increased 59.5% to 2,643 as of March 31, 2026"
Segment operating margin financial
"Healthcare revenues before reimbursable expenses were $225,201 with a segment operating margin of 28.4 %"
Segment operating margin measures how much profit a specific part of a company keeps from its sales after paying the costs to run that part, expressed as a percentage. Investors use it like a slice-size indicator to compare which divisions are more efficient at turning revenue into operating profit, helping spot strengths, weaknesses, and where management might focus resources or improvements.
Contingent consideration remeasurement charges financial
"include an adjustment for $3.8 million of contingent consideration remeasurement charges to permit comparability"
Earnings Snapshot
Revenues before reimbursable expenses: $443.7M · Guidance included
Q1 2026
Revenues before reimbursable expenses
$443.7M
+12.1% YoY
Total revenues
$451.8M
+11.8% YoY
Net income
$23.2M
-$1.3M YoY
Adjusted EBITDA
$50.6M
+21.9% YoY
Diluted EPS
$1.34
+$0.01 YoY
Adjusted diluted EPS
$1.73
+$0.05 YoY
Guidance
For 2026, Huron guides RBR to $1.78–$1.86B, adjusted EBITDA as a percentage of RBR to 14.5–15.0%, and adjusted diluted EPS to $8.35–$9.15.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported)
_____________________
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction | (Commission | (IRS Employer | ||||||
| of incorporation) | File Number) | Identification Number) | ||||||
(Address of principal executive offices)
(Zip Code)
(Registrant’s telephone number, including area code)
_____________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | |||||
| Emerging growth company | |||||
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ | ||||
Item 2.02. Results of Operations and Financial Condition.
On May 5, 2026, Huron Consulting Group Inc. (the "Company") issued a press release announcing its financial results for the quarter and year ended March 31, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information furnished pursuant to Item 2.02 and the attached Exhibit 99.1 shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| Exhibit Number | Exhibit Description | |||||||
| 99.1 | Press release, dated May 5, 2026 | |||||||
| 101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Huron Consulting Group Inc. | |||||||||||
| (Registrant) | |||||||||||
| Date: | May 5, 2026 | /s/ JOHN D. KELLY | |||||||||
| John D. Kelly | |||||||||||
| Executive Vice President, Chief Financial Officer, and Treasurer | |||||||||||
Exhibit 99.1
| NEWS | MEDIA CONTACT | |||||||
| Allie Bovis | ||||||||
| FOR IMMEDIATE RELEASE | abovis@hcg.com | |||||||
| INVESTOR CONTACT | ||||||||
| John D. Kelly | ||||||||
| investor@hcg.com | ||||||||
Huron Announces First Quarter 2026 Financial Results and Affirms Full Year 2026 Guidance
FIRST QUARTER 2026 FINANCIAL HIGHLIGHTS
•Revenues before reimbursable expenses (RBR) increased $48.0 million, or 12.1%, to a record $443.7 million in Q1 2026 from $395.7 million in Q1 2025.
•Net income was $23.2 million in Q1 2026, compared to $24.5 million in Q1 2025.
•Adjusted EBITDA(9), a non-GAAP financial measure, increased $9.1 million, or 21.9%, to $50.6 million in Q1 2026 from $41.5 million in Q1 2025.
•Diluted earnings per share increased to $1.34 in Q1 2026 from $1.33 in Q1 2025.
•Adjusted diluted earnings per share(9), a non-GAAP financial measure, increased $0.05, or 3.0%, to $1.73 in Q1 2026 from $1.68 in Q1 2025.
•Huron returned $155.5 million to shareholders by repurchasing 1.1 million shares of the company's common stock in Q1 2026, representing 6.5% of the company's common stock outstanding as of December 31, 2025.
2026 GUIDANCE AND OTHER HIGHLIGHTS
•Huron affirms its previous guidance for full year 2026, including RBR expectations in a range of $1.78 billion to $1.86 billion.
•For the second consecutive year, Huron has been Certified™ by Great Place To Work® in the United States, Canada, India, Singapore, and the United Kingdom.
CHICAGO - May 5, 2026 - Global professional services firm Huron (Nasdaq: HURN) today announced financial results for the quarter ended March 31, 2026.
“Revenues before reimbursable expenses (RBR) increased 12% in the first quarter of 2026 compared to 2025, driven by growth across the Healthcare, Education, and Commercial segments, including record RBR performance in Healthcare,” said Mark Hussey, chief executive officer and president of Huron. “We also continued our trajectory of margin expansion during the quarter, reflecting disciplined execution by our highly talented team.”
“We are encouraged by the strong start to the year and strength of our pipeline and backlog as we affirm our annual RBR and margin guidance. We continue to believe we are well positioned to serve as our clients’ trusted advisor as they evolve their business models and organizations to succeed in challenged markets and in an increasingly AI-enabled world. We remain focused on executing against the market tailwinds driving demand for our business and further strengthening our competitive position to best serve our clients and achieve our financial goals,” added Hussey.
FIRST QUARTER 2026 RESULTS
Revenues before reimbursable expenses (RBR) increased $48.0 million, or 12.1%, to $443.7 million for the first quarter of 2026, compared to $395.7 million for the first quarter of 2025. This growth reflects continued strength in demand for the company's Consulting and Managed Services capabilities within the Healthcare and Commercial segments. The overall increase includes $19.3 million of incremental RBR from the company's acquisitions completed since December 31, 2024. Excluding the $19.3 million of incremental RBR from the company's acquisitions, RBR grew 7.3% organically.
Net income was $23.2 million, or 5.1% of total revenues, for the first quarter of 2026, compared to $24.5 million, or 6.1% of total revenues, for the same quarter last year. Net income for the first quarter of 2026 includes $3.8 million of income tax expense, compared to an income tax benefit of $3.1 million recorded in the first quarter of 2025. Diluted earnings per share increased to $1.34 for the first quarter of 2026, compared to $1.33 for the first quarter of 2025. The income tax expense in the first quarter of 2026 had an unfavorable $0.22 impact on diluted earnings per share, while the income tax benefit in the first quarter of 2025 had a favorable $0.17 impact on diluted earnings per share.
First quarter 2026 earnings before interest, taxes, depreciation and amortization (“EBITDA”)(9) increased $11.7 million, or 34.1%, to $45.9 million compared to $34.2 million in the same prior year period.
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 March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Amortization of intangible assets | $ | 3,902 | $ | 2,036 | |||||||
| Restructuring charges | $ | 663 | $ | 1,338 | |||||||
Other losses(10) | $ | 3,840 | $ | — | |||||||
| Gain on sale of business | $ | (303) | $ | — | |||||||
| Transaction-related expenses | $ | 823 | $ | 1,296 | |||||||
Unrealized loss on long-term investments | $ | — | $ | 4,210 | |||||||
| Tax effect of adjustments | $ | (2,135) | $ | (2,309) | |||||||
| Foreign currency transaction losses (gains), net | $ | (347) | $ | 399 | |||||||
Adjusted EBITDA(9) increased $9.1 million, or 21.9%, to $50.6 million, or 11.4% of RBR(9), in the first quarter of 2026, compared to $41.5 million, or 10.5% of RBR(9), in the same quarter last year. Adjusted net income(9) was $30.0 million, or $1.73 per diluted share, for the first quarter of 2026, compared to $31.1 million, or $1.68 per diluted share, for the same quarter in 2025.
The number of revenue-generating professionals(1), excluding Managed Services professionals, increased 12.6% to 5,346 as of March 31, 2026 from 4,748 as of March 31, 2025, as a result of the acquisitions completed since the first quarter of 2025 and hiring to support the overall increase in demand for the company's services. The utilization rate(8) of the company's Consulting capability increased to 74.6% during the first quarter of 2026, compared to 74.1% during the same period last year. The utilization rate(8) for the company's Digital capability was 74.8% during the first quarter of 2026, compared to 78.2% during the same period last year. The number of Managed Services professionals increased 59.5% to 2,643 as of March 31, 2026 from 1,657 as of March 31, 2025.
Additionally, Huron returned $155.5 million to shareholders in 2026 through repurchases of 1,114,806 shares of the company's common stock, representing 6.5% of the company's common stock outstanding as of December 31, 2025.
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 March 31, 2026.
OUTLOOK FOR 2026
Based on currently available information, the company is affirming guidance for full year 2026 revenues before reimbursable expenses (RBR) in a range of $1.78 billion to $1.86 billion. The company also anticipates adjusted EBITDA as a percentage of RBR(9) in a range of 14.5% to 15.0%, and adjusted diluted earnings per share(9) guidance in a range of $8.35 to $9.15.
FIRST QUARTER 2026 WEBCAST
The company will host a webcast to discuss its financial results today, May 5, 2026, at 5:00 p.m. Eastern Time, 4:00 p.m. Central Time. The conference call is being webcast by Notified and can be accessed from Huron's website at http://ir.huronconsultinggroup.com. A replay will be available approximately two hours after the conclusion of the webcast and for 90 days thereafter.
USE OF NON-GAAP FINANCIAL MEASURES(9)
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 the United States.
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,” “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.
HURON CONSULTING GROUP INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS)
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenues: | |||||||||||
| Revenues before reimbursable expenses | $ | 443,712 | $ | 395,690 | |||||||
| Reimbursable expenses | 8,055 | 8,451 | |||||||||
| Total revenues | 451,767 | 404,141 | |||||||||
| Operating expenses: | |||||||||||
| Direct costs (exclusive of depreciation and amortization included below) | 308,194 | 278,043 | |||||||||
| Reimbursable expenses | 8,055 | 8,445 | |||||||||
| Selling, general and administrative expenses | 84,711 | 76,634 | |||||||||
| Other losses | 3,840 | — | |||||||||
| Restructuring charges | 663 | 1,338 | |||||||||
| Depreciation and amortization | 9,721 | 6,949 | |||||||||
| Total operating expenses | 415,184 | 371,409 | |||||||||
| Operating income | 36,583 | 32,732 | |||||||||
| Other income (expense), net: | |||||||||||
| Interest expense, net of interest income | (8,891) | (5,647) | |||||||||
| Other expense, net | (626) | (5,633) | |||||||||
| Total other expense, net | (9,517) | (11,280) | |||||||||
| Income before taxes | 27,066 | 21,452 | |||||||||
| Income tax expense | 3,819 | (3,084) | |||||||||
| Net income | $ | 23,247 | $ | 24,536 | |||||||
| Earnings per share: | |||||||||||
| Net income per basic share | $ | 1.37 | $ | 1.38 | |||||||
| Net income per diluted share | $ | 1.34 | $ | 1.33 | |||||||
| Weighted average shares used in calculating earnings per share: | |||||||||||
| Basic | 16,984 | 17,821 | |||||||||
| Diluted | 17,406 | 18,475 | |||||||||
| Comprehensive income (loss): | |||||||||||
| Net income | $ | 23,247 | $ | 24,536 | |||||||
| Foreign currency translation adjustments, net of tax | (1,931) | 535 | |||||||||
| Unrealized loss on investment, net of tax | — | (10,517) | |||||||||
| Unrealized gain (loss) on cash flow hedging instruments, net of tax | 1,030 | (2,233) | |||||||||
| Other comprehensive loss | (901) | (12,215) | |||||||||
| Comprehensive income | $ | 22,346 | $ | 12,321 | |||||||
HURON CONSULTING GROUP INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)
| March 31, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 26,459 | $ | 24,508 | |||||||
| Receivables from clients, net | 209,060 | 186,506 | |||||||||
| Unbilled services, net | 235,383 | 195,464 | |||||||||
| Income tax receivable | 8,591 | 8,430 | |||||||||
| Prepaid expenses and other current assets | 35,249 | 33,676 | |||||||||
| Total current assets | 514,742 | 448,584 | |||||||||
| Property and equipment, net | 23,834 | 23,472 | |||||||||
| Deferred income taxes, net | 3,241 | 3,563 | |||||||||
| Long-term investments | 36,433 | 36,433 | |||||||||
| Operating lease right-of-use assets | 19,846 | 20,027 | |||||||||
| Other non-current assets | 135,105 | 134,781 | |||||||||
| Intangible assets, net | 68,975 | 72,927 | |||||||||
| Goodwill | 786,949 | 786,896 | |||||||||
| Total assets | $ | 1,589,125 | $ | 1,526,683 | |||||||
| Liabilities and stockholders’ equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 11,998 | $ | 12,354 | |||||||
| Accrued expenses and other current liabilities | 43,423 | 38,117 | |||||||||
| Accrued payroll and related benefits | 113,967 | 266,950 | |||||||||
| Current maturities of long-term debt | 20,000 | 20,000 | |||||||||
| Current maturities of operating lease liabilities | 11,217 | 14,304 | |||||||||
| Deferred revenues | 31,569 | 31,708 | |||||||||
| Total current liabilities | 232,174 | 383,433 | |||||||||
| Non-current liabilities: | |||||||||||
| Deferred compensation and other liabilities | 63,520 | 63,316 | |||||||||
| Long-term debt, net of current portion | 834,739 | 489,665 | |||||||||
| Operating lease liabilities, net of current portion | 21,477 | 24,371 | |||||||||
| Deferred income taxes, net | 39,775 | 37,269 | |||||||||
| Total non-current liabilities | 959,511 | 614,621 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders’ equity | |||||||||||
Common stock; $0.01 par value; 500,000,000 shares authorized; 19,798,449 and 20,465,234 shares issued, respectively | 198 | 205 | |||||||||
Treasury stock, at cost, 3,407,494 and 3,269,301 shares, respectively | (210,294) | (189,989) | |||||||||
| Additional paid-in capital | 6,322 | 87,885 | |||||||||
| Retained earnings | 608,280 | 636,693 | |||||||||
| Accumulated other comprehensive loss | (7,066) | (6,165) | |||||||||
| Total stockholders’ equity | 397,440 | 528,629 | |||||||||
| Total liabilities and stockholders’ equity | $ | 1,589,125 | $ | 1,526,683 | |||||||
HURON CONSULTING GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 23,247 | $ | 24,536 | |||||||
| Adjustments to reconcile net income to cash flows from operating activities: | |||||||||||
| Depreciation and amortization | 9,721 | 6,949 | |||||||||
| Non-cash lease expense | 1,641 | 1,437 | |||||||||
| Lease-related impairment charges | — | 738 | |||||||||
| Gain on lease modification | (3,814) | — | |||||||||
| Share-based compensation | 15,693 | 15,358 | |||||||||
| Amortization of debt discount and issuance costs | 288 | 286 | |||||||||
| Allowances for doubtful accounts | 133 | 272 | |||||||||
| Deferred income taxes | 2,339 | 259 | |||||||||
| Gain on sale of business | (303) | — | |||||||||
| Change in fair value of contingent consideration liabilities | 3,840 | — | |||||||||
Change in fair value of equity investment | — | 4,210 | |||||||||
| Changes in operating assets and liabilities, net of acquisitions: | |||||||||||
| (Increase) decrease in receivables from clients, net | (22,660) | (2,879) | |||||||||
| (Increase) decrease in unbilled services, net | (39,979) | (20,617) | |||||||||
| (Increase) decrease in current income tax receivable / payable, net | (57) | (5,668) | |||||||||
| (Increase) decrease in other assets | (4,354) | 170 | |||||||||
| Increase (decrease) in accounts payable and other liabilities | (5,005) | 1,017 | |||||||||
| Increase (decrease) in accrued payroll and related benefits | (142,770) | (132,731) | |||||||||
| Increase (decrease) in deferred revenues | (128) | (164) | |||||||||
| Net cash used in operating activities | (162,168) | (106,827) | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of property and equipment | (5,680) | (1,850) | |||||||||
| Investments in life insurance policies | — | (1,722) | |||||||||
| Purchases of businesses, net of cash acquired | 1,493 | (5,190) | |||||||||
| Capitalization of internally developed software costs | (6,177) | (6,679) | |||||||||
| Proceeds from note receivable | 2,250 | 154 | |||||||||
| Proceeds from divestiture of business | 300 | — | |||||||||
| Net cash used in investing activities | (7,814) | (15,287) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from exercises of stock options | 708 | 2,527 | |||||||||
| Shares redeemed for employee tax withholdings | (20,530) | (32,181) | |||||||||
| Share repurchases | (153,130) | (65,310) | |||||||||
| Proceeds from bank borrowings | 413,000 | 328,000 | |||||||||
| Repayments of bank borrowings | (68,000) | (109,438) | |||||||||
Deferred payments for business acquisitions | — | (36) | |||||||||
| Net cash provided by financing activities | 172,048 | 123,562 | |||||||||
| Effect of exchange rate changes on cash | (115) | 19 | |||||||||
| Net increase in cash and cash equivalents | 1,951 | 1,467 | |||||||||
| Cash and cash equivalents at beginning of the period | 24,508 | 21,911 | |||||||||
| Cash and cash equivalents at end of the period | $ | 26,459 | $ | 23,378 | |||||||
HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA
(Unaudited)
| Three Months Ended March 31, | Percent Increase (Decrease) | |||||||||||||||||||
| Segment and Consolidated Operating Results (in thousands): | 2026 | 2025 | ||||||||||||||||||
| Healthcare: | ||||||||||||||||||||
| Revenues before reimbursable expenses | $ | 225,201 | $ | 198,490 | 13.5% | |||||||||||||||
| Operating income | $ | 63,953 | $ | 56,316 | 13.6% | |||||||||||||||
| Segment operating margin | 28.4 | % | 28.4 | % | ||||||||||||||||
| Education: | ||||||||||||||||||||
| Revenues before reimbursable expenses | $ | 127,468 | $ | 122,748 | 3.8% | |||||||||||||||
| Operating income | $ | 27,578 | $ | 23,060 | 19.6% | |||||||||||||||
| Segment operating margin | 21.6 | % | 18.8 | % | ||||||||||||||||
| Commercial: | ||||||||||||||||||||
| Revenues before reimbursable expenses | $ | 91,043 | $ | 74,452 | 22.3% | |||||||||||||||
| Operating income | $ | 14,896 | $ | 11,296 | 31.9% | |||||||||||||||
| Segment operating margin | 16.4 | % | 15.2 | % | ||||||||||||||||
| Total Huron: | ||||||||||||||||||||
| Revenues before reimbursable expenses | $ | 443,712 | $ | 395,690 | 12.1% | |||||||||||||||
| Reimbursable expenses | 8,055 | 8,451 | (4.7)% | |||||||||||||||||
| Total revenues | $ | 451,767 | $ | 404,141 | 11.8% | |||||||||||||||
| Items not allocated at the segment level: | ||||||||||||||||||||
| Unallocated corporate expenses | 60,030 | 52,371 | 14.6% | |||||||||||||||||
Other losses | 3,840 | — | N/M | |||||||||||||||||
Restructuring charges | (532) | 1,392 | N/M | |||||||||||||||||
| Depreciation and amortization | 6,506 | 4,177 | 55.8% | |||||||||||||||||
| Operating income | 36,583 | 32,732 | 11.8% | |||||||||||||||||
| Other expense, net | (9,517) | (11,280) | (15.6)% | |||||||||||||||||
| Income before taxes | $ | 27,066 | $ | 21,452 | 26.2% | |||||||||||||||
| Other Operating Data: | ||||||||||||||||||||
Number of revenue-generating professionals by segment (at period end)(1): | ||||||||||||||||||||
Healthcare(4) | 1,700 | 1,367 | 24.4% | |||||||||||||||||
Education(5) | 1,117 | 1,189 | (6.1)% | |||||||||||||||||
Commercial(2)(3)(4) | 2,529 | 2,192 | 15.4% | |||||||||||||||||
Total (excluding Managed Services) | 5,346 | 4,748 | 12.6% | |||||||||||||||||
Managed Services(5)(6) | 2,643 | 1,657 | 59.5% | |||||||||||||||||
Total | 7,989 | 6,405 | 24.7% | |||||||||||||||||
| Revenues before reimbursable expenses by capability: | ||||||||||||||||||||
Consulting and Managed Services(5)(7) | $ | 271,617 | $ | 223,921 | 21.3% | |||||||||||||||
| Digital | 172,095 | 171,769 | 0.2% | |||||||||||||||||
| Total | $ | 443,712 | $ | 395,690 | 12.1% | |||||||||||||||
Number of revenue-generating professionals by capability (at period end)(1): | ||||||||||||||||||||
Consulting(5) | 2,218 | 1,748 | 26.9% | |||||||||||||||||
Managed Services(5)(6) | 2,643 | 1,657 | 59.5% | |||||||||||||||||
| Digital | 3,128 | 3,000 | 4.3% | |||||||||||||||||
| Total | 7,989 | 6,405 | 24.7% | |||||||||||||||||
Utilization rate by capability(8): | ||||||||||||||||||||
| Consulting | 74.6 | % | 74.1 | % | ||||||||||||||||
| Digital | 74.8 | % | 78.2 | % | ||||||||||||||||
(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 management and 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) The increase in the number of revenue-generating professionals within our Commercial segment includes the company's acquisition of Treliant in the third quarter of 2025. This acquisition added approximately 180 revenue-generating professionals, of which approximately 65 are consultants who work variable schedules as needed by clients.
(4) 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 December 31, 2024, March 31, 2025, June 30, 2025, September 30, 2025 and December 31, 2025 was 190, 158, 154, 154, and 145, respectively. The prior period headcount reported by segment in the table above has been revised for consistent presentation.
(5) 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 December 31, 2024, March 31, 2025, June 30, 2025, September 30, 2025 and December 31, 2025 was 23, 22, 23, 21 and 21, respectively. The prior period headcount reported by segment and by capability in the table above has been revised for consistent presentation. The prior period Education Managed Services capability headcount in footnote 6 below has been revised for consistent presentation.
RBR generated by this offering during the quarters ended March 31, 2025, June 30, 2025, September 30, 2025, and December 31, 2025 was $1.8 million, $1.4 million, $1.8 million, and $1.6 million, respectively, and during the years ended December 31, 2024 and 2025 was $7.3 million and $6.6 million, respectively. This reclassification did not impact the total Education Consulting and Managed Services RBR reported for any period, and the prior period Education Managed Services capability RBR in footnote 7 below has been revised for consistent presentation.
(6) 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 billing, collections, insurance verification and change integrity services to clients. 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 2,537 and 1,568 as of March 31, 2026 and 2025, respectively.
The number of Managed Services professionals within our Education segment was 106 and 89 as of March 31, 2026 and 2025, respectively.
(7) Managed Services capability revenues before reimbursable expenses within our Healthcare segment was $26.1 million and $18.3 million for the three months ended March 31, 2026 and 2025, respectively.
Managed Services capability revenues before reimbursable expenses within our Education segment was $5.8 million and $5.6 million for the three months ended March 31, 2026 and 2025, respectively.
(8) 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 U.S. standard work weeks. Available working hours exclude local country holidays and vacation days. Utilization rates are presented for our revenue-generating professionals who primarily bill on an hourly basis. We have not presented utilization rates for our Managed Services professionals as most of the revenues generated by these employees are not billed on an hourly basis.
HURON CONSULTING GROUP INC.
RECONCILIATION OF NET INCOME
TO ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION(9)
(In thousands)
(Unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenues before reimbursable expenses | $ | 443,712 | $ | 395,690 | |||||||
| Reimbursable expenses | 8,055 | 8,451 | |||||||||
| Total revenues | $ | 451,767 | $ | 404,141 | |||||||
| Net income | $ | 23,247 | $ | 24,536 | |||||||
| Net income as a percentage of total revenues | 5.1 | % | 6.1 | % | |||||||
| Add back: | |||||||||||
| Income tax expense | 3,819 | (3,084) | |||||||||
| Interest expense, net of interest income | 8,891 | 5,647 | |||||||||
| Depreciation and amortization | 9,958 | 7,149 | |||||||||
Earnings before interest, taxes, depreciation and amortization (EBITDA)(9) | 45,915 | 34,248 | |||||||||
| Add back: | |||||||||||
| Restructuring charges | 663 | 1,338 | |||||||||
Other losses(10) | 3,840 | — | |||||||||
| Gain on sale of business | (303) | — | |||||||||
| Transaction-related expenses | 823 | 1,296 | |||||||||
| Unrealized loss on long-term investments | — | 4,210 | |||||||||
| Foreign currency transaction losses (gains), net | (347) | 399 | |||||||||
Adjusted EBITDA(9) | $ | 50,591 | $ | 41,491 | |||||||
Adjusted EBITDA as a percentage of revenues before reimbursable expenses(9) | 11.4 | % | 10.5 | % | |||||||
HURON CONSULTING GROUP INC.
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME(9)
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net income | $ | 23,247 | $ | 24,536 | |||||||
| Weighted average shares - diluted | 17,406 | 18,475 | |||||||||
| Diluted earnings per share | $ | 1.34 | $ | 1.33 | |||||||
| Add back: | |||||||||||
| Amortization of intangible assets | 3,902 | 2,036 | |||||||||
| Restructuring charges | 663 | 1,338 | |||||||||
Other losses(10) | 3,840 | — | |||||||||
| Gain on sale of business | (303) | — | |||||||||
| Transaction-related expenses | 823 | 1,296 | |||||||||
| Unrealized loss on long-term investments | — | 4,210 | |||||||||
| Tax effect of adjustments | (2,135) | (2,309) | |||||||||
| Total adjustments, net of tax | 6,790 | 6,571 | |||||||||
Adjusted net income(9) | $ | 30,037 | $ | 31,107 | |||||||
| Adjusted weighted average shares - diluted | 17,406 | 18,475 | |||||||||
Adjusted diluted earnings per share(9) | $ | 1.73 | $ | 1.68 | |||||||
(9) 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.
(10) The non-GAAP financial measures for the three months ended March 31, 2026 include an adjustment for $3.8 million of contingent consideration remeasurement charges to permit comparability with periods that are not impacted by these items. These remeasurement charges were recorded as a component of other losses on the consolidated statement of operations.
FAQ
How did Huron (HURN) perform financially in Q1 2026?
Huron reported strong Q1 2026 growth, with revenues before reimbursable expenses rising 12.1% to $443.7 million. Net income was $23.2 million and diluted EPS was $1.34, while adjusted EBITDA grew to $50.6 million, indicating improved underlying profitability.
What earnings guidance did Huron (HURN) provide for full year 2026?
Huron reaffirmed its 2026 outlook, guiding revenues before reimbursable expenses to a range of $1.78 billion to $1.86 billion. It also expects adjusted EBITDA margin between 14.5% and 15.0% and adjusted diluted earnings per share in the range of $8.35 to $9.15.
How did Huron’s profitability metrics change in Q1 2026?
Huron’s adjusted EBITDA increased 21.9% to $50.6 million, improving to 11.4% of RBR. GAAP net income slightly decreased to $23.2 million, but diluted EPS nudged up to $1.34, and adjusted diluted EPS rose to $1.73, reflecting stronger operating performance.
How much stock did Huron (HURN) repurchase in Q1 2026?
Huron returned significant capital to shareholders, repurchasing 1.1 million shares of common stock in Q1 2026 for $155.5 million. These repurchases represented about 6.5% of the company’s common stock outstanding as of December 31, 2025.
Which segments drove Huron’s revenue growth in Q1 2026?
All segments contributed to growth, with Healthcare RBR up 13.5% to $225.2 million, Education up 3.8% to $127.5 million, and Commercial up 22.3% to $91.0 million. Healthcare also delivered a segment operating margin of 28.4%.
What were Huron’s key non-GAAP results for Q1 2026?
Key non-GAAP metrics included adjusted EBITDA of $50.6 million, up from $41.5 million, and adjusted net income of $30.0 million. Adjusted diluted EPS reached $1.73, compared with $1.68 a year earlier, highlighting improved operating leverage and margin expansion.