Huron Consulting Group (HURN) Q1 2026 earnings summary

Executive summary

• Revenues before reimbursable expenses (RBR) rose 12.1% year-over-year to $443.7 million in Q1 2026, driven by strong demand in Healthcare and Commercial segments, recent acquisitions, and record Healthcare performance.

• Margin expansion continued, supported by disciplined execution and robust demand, especially in Healthcare and Commercial.

• Net income was $23.2 million (5.1% of total revenues), down from $24.5 million in Q1 2025, mainly due to a higher effective tax rate.

• Adjusted EBITDA rose 21.9% to $50.6 million (11.4% of RBR), and adjusted diluted EPS increased 3.0% to $1.73.

• $155.5 million was used to repurchase 1.1 million shares (6.5% of outstanding), reducing diluted shares outstanding.

Financial highlights

• Q1 2026 RBR was $443.7 million, up 12.1% from $395.7 million in Q1 2025.

• Total revenues reached $451.8 million, up from $404.1 million year-over-year.

• Adjusted net income was $30.0 million ($1.73/diluted share) vs. $31.1 million ($1.68/diluted share) in Q1 2025.

• Cash flow used in operations was $162.2 million, with negative free cash flow of $174 million due to annual incentive payments.

• Organic RBR growth was 7.3% excluding $19.3 million from acquisitions.

Outlook and guidance

• Affirmed 2026 guidance: RBR $1.78B–$1.86B, adjusted EBITDA margin 14.5%–15%, adjusted EPS $8.35–$9.15.

• Full-year free cash flow expected at $180M–$220M, net of cash taxes and interest.

• Targeting leverage ratio of 2x–2.5x by year-end 2026.

• Management expects continued growth in Healthcare and Education, expansion in Commercial, and further margin improvement.

• Capital deployment will focus on share repurchases, strategic acquisitions, and maintaining a strong balance sheet.