FTI Consulting (FCN) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenues were $943.7M, down 0.6% year-over-year but up 5.1% sequentially; net income was $71.7M, down 14.6% year-over-year.

• EPS for the quarter was $2.13, down from $2.34 prior year but up 22.4% from Q1 2025.

• Adjusted EBITDA was $111.6M (11.8% margin), down from $115.9M (12.2%) prior year.

• Revenue declines in Economic Consulting and Technology were offset by growth in Corporate Finance, FLC, and Strategic Communications.

• Headcount reduced by 5.6% since year-end due to targeted workforce realignment.

Financial highlights

• Free cash flow for Q2 2025 was $38.3M, down from $125.2M prior year.

• Cash and cash equivalents at quarter-end were $152.8M, down from $226.4M a year ago.

• Total debt increased to $470M at June 30, 2025, from $160M a year earlier.

• SG&A expenses were $202.2M (21.4% of revenue), down from $206.2M (21.7%) prior year.

• DSO improved to 100 days from 105 days year-over-year.

Outlook and guidance

• Full-year 2025 revenue guidance is $3.66B–$3.76B; adjusted EPS guidance $7.80–$8.40.

• Adjusted EPS excludes a Q1 2025 special charge, now estimated at $0.55 per share.

• Technology and Economic Consulting segments expected to remain challenged, with gradual improvement in tech M&A demand.

• Q4 adjusted EPS expected to be seasonally lower than Q2 and Q3.

• Management expects cash flows and available credit to fund needs for at least the next 12 months.