FTI Consulting (FCN 0.30%), a worldwide enterprise advisory agency with a give attention to disaster administration, monetary restructuring, and investigations, reported its second quarter 2025 earnings on July 25, 2025. A very powerful information was that Each GAAP income and earnings per share got here in above Wall Road expectations. whilst headline figures confirmed a light decline from final yr. The corporate reported $943.7 million in GAAP income, forward of predictions by $21.7 million (GAAP), and delivered GAAP earnings per share of $2.13, topping the $2.10 GAAP estimate. Nonetheless, each figures have been decrease than the earlier yr’s outcomes. The quarter highlighted vast variations throughout enterprise strains — some items delivered development and better income, whereas others struggled with macroeconomic and sector-specific pressures.
MetricQ2 2025Q2 2025 EstimateQ2 2024Y/Y ChangeEPS$2.13$2.10$2.34(9.0%)Income$943.7 million$921.97 million$949.2 million(0.6%)Adjusted EBITDA$111.6 million$115.9 million(3.7%)Internet Revenue$71.7 million$83.9 million(14.5%)Working Margin10.5percent11.0%(0.5 pp)
Supply: Analyst estimates offered by FactSet. Administration expectations based mostly on administration’s steering, as offered in Q1 2025 earnings report.
Enterprise Overview and Focus Areas
FTI Consulting is a worldwide chief in enterprise advisory, providing companies throughout 5 essential segments: Company Finance & Restructuring, Forensic and Litigation Consulting, Financial Consulting, Expertise, and Strategic Communications. Its companies vary from chapter recommendation to cybersecurity, forensics, and fame administration. Shoppers embody main companies, regulation companies, and authorities businesses, reflecting the corporate’s broad experience and worldwide attain.
Lately, FTI Consulting has targeted on leveraging its diversified service mannequin, international presence, and expertise funding to handle market swings. Important success components embody adapting to rising developments like synthetic intelligence, leveraging its respected group of specialists for greater invoice charges, and actively managing working prices. Its dimension and variety assist offset downturns in particular person items with power in different enterprise strains.
Quarter Highlights: Section Efficiency and Key Drivers
The quarter revealed sharp contrasts between enterprise items. Company Finance & Restructuring posted $379.2 million in GAAP income, up 9.0% yr over yr. Larger demand for restructuring and transaction companies, in addition to stronger realized pricing, powered the positive aspects within the Company Finance & Restructuring section. Adjusted EBITDA for the section rose to $81.7 million, with Adjusted EBITDA margin in Company Finance & Restructuring expanded from 19.1% within the prior yr quarter to 21.5% within the second quarter of 2025. Utilization ticked up barely, indicating each ongoing want for companies and environment friendly deployment of employees.
Forensic and Litigation Consulting, which tackles threat and regulatory investigations, delivered $186.5 million in GAAP income, up 10.0%. The section benefited from greater invoice charges, particularly in threat, knowledge analytics, and construction-focused companies. Adjusted EBITDA for Forensic and Litigation Consulting was $31.2 million within the second quarter of 2025, up from $15.0 million within the prior yr quarter, with Adjusted EBITDA margin for Forensic and Litigation Consulting elevated from 8.8% within the prior yr quarter to 16.7% within the second quarter of 2025. This acquire seems tied largely to elevated worth of specialised companies quite than a surge in challenge numbers. The unit’s billable headcount elevated modestly, reflecting ongoing funding in knowledgeable expertise.
Financial Consulting noticed GAAP revenues drop sharply to $191.7 million, down 17.0% from the prior yr interval. This group advises purchasers on mergers and antitrust issues however suffered as deal quantity and associated regulatory exercise slowed. The section’s adjusted EBITDA margin fell to 7.4% within the second quarter of 2025 from 19.2% within the prior yr quarter. The enterprise lowered billable headcount by 7.9% in comparison with the prior yr quarter, reflecting the affect of segment-specific challenges.
The Expertise unit, which provides digital threat and digital discovery companies, generated $83.6 million in GAAP income, a decline of 27.9%. Decrease demand for “second request” tasks — specialised opinions required in merger opinions — drove the weak point, tied to a broader lull in merger exercise. Adjusted EBITDA for Expertise was $5.3 million within the second quarter of 2025, down from $20.9 million within the prior yr quarter, highlighting the problem of protecting fastened prices as income falls. Headcount was trimmed barely, however the section can be persevering with to put money into rising areas equivalent to synthetic intelligence and digital belongings, aiming for development over the long term.
Strategic Communications, which helps purchasers with fame administration and regulatory communications, delivered sturdy development, with income up 20.8% to $102.7 million. Move-through income — cash billed to purchasers for third-party companies — elevated by $8.4 million, contributing a major share of this acquire. Adjusted EBITDA rose 59% to $18.5 million, and Adjusted EBITDA margin for Strategic Communications was 18.0% within the second quarter of 2025, up from 13.7% within the prior yr quarter. Nonetheless, billable headcount on this group decreased 8.2% sequentially, an indication of value controls or shifting useful resource wants. Administration famous that development on this section was pushed by rising demand for company fame and difficult market environments, however that pass-through income usually earns decrease revenue margins.
Steadiness Sheet, Money Stream, and Capital Actions
Notably, FTI Consulting generated far much less money from operations, with $55.7 million (GAAP) offered versus $135.2 million (GAAP) in Q2 2024. The drop in web money offered by working actions was primarily on account of greater forgivable mortgage issuances, that are monetary incentives to draw or retain key professionals, in addition to greater funds for compensation and revenue tax. This use of money, whereas aimed toward strengthening expertise and future capabilities, led to web debt climbing to $317.2 million at June 30, 2025 from a web money place of $166.4 million at June 30, 2024. The corporate additionally spent $354.9 million on share repurchases, shopping for again 2,192,333 shares at a mean value of $161.88 per share. Remaining share repurchase authorization totaled $309.3 million as of June 30, 2025.
Complete liabilities (GAAP) rose to $1.59 billion as of June 30, 2025, reflecting each elevated long-term debt and commitments tied to retaining specialists. Working margin for the corporate was 10.5% within the second quarter of 2025. Adjusted EBITDA margin narrowed to 11.8% from 12.2%, reflecting elevated prices in segments dealing with decrease demand, particularly Financial Consulting and Expertise.
Trying Forward: Steerage and What to Watch
Administration up to date its monetary steering for FY2025. Income (GAAP) is now anticipated to be between $3.66 billion and $3.76 billion, basically flat in comparison with final yr’s $3.70 billion in GAAP income for FY2024. The complete-year GAAP earnings per share vary is $7.24 to $7.84, with adjusted earnings per share, which excludes particular fees, forecast between $7.80 and $8.40 (non-GAAP). The corporate famous the hole between reported and adjusted EPS is due largely to $0.73 in particular fees, partly offset by a tax profit. The up to date vary stays broad, with administration mentioning that continued weak point in Financial Consulting and Expertise might imply total adjusted EPS declines for the primary time in a decade, based mostly on full-year 2025 steering.
Trying ahead, buyers might need to monitor a number of areas. The outlook for segments which have not too long ago struggled is unsure, notably given ongoing low exercise in M&A and regulatory-driven consulting work, as mentioned by administration in latest earnings commentary. Money move and leverage at the moment are larger areas of focus, following substantial share repurchases and forgivable mortgage spending.
Income and web revenue introduced utilizing U.S. typically accepted accounting rules (GAAP) until in any other case famous.
