Huron Consulting Group (HURN) Q1 2025 earnings summary

Executive summary

• Revenues before reimbursable expenses (RBR) reached a record $395.7M in Q1 2025, up 11.2% year-over-year, driven by strong growth across all segments and $11.9M from the AXIA Consulting acquisition.

• Net income increased 36.3% to $24.5M, with net income margin rising to 6.1% from 5% year-over-year; diluted EPS up 40% to $1.33, and adjusted diluted EPS rose 36.6% to $1.68.

• Adjusted EBITDA rose 22.7% to $41.5M (10.5% of RBR), up from $33.8M (9.5% of RBR) in the prior year.

• Returned $72.9M to shareholders via repurchase of about 0.5M shares (2.9% of shares outstanding).

• Full-year 2025 guidance for RBR, margin, and Adjusted EPS reaffirmed.

Financial highlights

• RBR for Q1 2025 was $395.7M, up 11.2% from $356M in Q1 2024; total revenues were $404.1M, up from $363.4M.

• Net income: $24.5M vs. $18.0M year-over-year; operating income rose 64.3% to $32.7M, with margin up to 8.3% from 5.6%.

• Adjusted net income was $31.1M ($1.68 per diluted share), up 36.6% from $23.3M ($1.23 per share) year-over-year.

• Cash and cash equivalents at quarter-end were $23.4M; cash flow used in operations was $106.8M, improved from $130.7M in Q1 2024.

• DSO improved to 79 days from 91 days year-over-year.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: RBR range of $1.58B–$1.66B, Adjusted EBITDA margin 14.0%–14.5%, Adjusted EPS $6.80–$7.60.

• Expect full-year free cash flow of $160M–$190M, net of cash taxes and interest.

• Commercial segment expected to maintain 21%–23% operating income margin for the year.

• Focus on margin expansion, organic reinvestment, and continued growth in Healthcare, Education, and Digital.

• Management expects strong free cash flow and a resilient balance sheet to support growth and capital returns.