Huron Consulting Group (HURN) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues before reimbursable expenses rose 3.3% year-over-year to $370.0 million, with net income up 26.2% to $27.1 million and adjusted EBITDA up 14.3% to $54.9 million, driven by strong demand in Healthcare and Education Digital, and a rebound in commercial digital offerings.

• Adjusted EBITDA margins increased by 140 basis points to 14.8%, and adjusted EPS rose 20.9% to $1.68, reflecting successful margin enhancement initiatives.

• Record company-wide quarterly bookings and robust sales pipeline position the business well for Q4 and 2025.

• Total revenue-generating professionals grew 10.4% to 5,896, supporting increased demand.

• Net cash from operating activities increased 23.9% to $85.2 million, reflecting higher collections and a litigation settlement.

Financial highlights

• Q3 2024 revenue before reimbursable expenses was $370 million, up 3.3% from Q3 2023; total revenues were $378.1 million.

• Net income was $27.1 million ($1.47 per diluted share), up from $21.5 million ($1.10 per share) in Q3 2023.

• Adjusted EBITDA was $54.9 million (14.8% of RVR), up from $48 million (13.4% of RVR) in Q3 2023.

• Adjusted net income was $31.1 million ($1.68 per diluted share), a 21% increase year-over-year.

• Free cash flow in Q3 was $77.6 million; net debt decreased by $69.4 million sequentially.

Outlook and guidance

• Full-year 2024 RVR guidance narrowed to $1.47–$1.49 billion, maintaining a midpoint of $1.48 billion.

• Adjusted EBITDA margin expected at 13–13.5% of RVR.

• Adjusted diluted EPS guidance raised to $6.00–$6.20.

• Management expects continued margin expansion and strong annual adjusted diluted EPS growth, focusing on high-return business areas and operational efficiency.

• Strong Q3 sales conversion and project pipeline support confidence in Q4 acceleration and 2025 growth.