Huron Consulting Group (HURN) Q4 2025 earnings summary

Executive summary

• Achieved record RBR in 2025, up 11.9% year-over-year, with strong growth across healthcare, education, and commercial segments; adjusted diluted EPS grew 21% to $7.83.

• Adjusted EBITDA margin expanded to 14.3% for 2025, marking the fifth consecutive year of improvement.

• Entered 2026 with the strongest backlog coverage in five years and a near-record pipeline, supported by surging bookings and sales conversions in H2 2025.

• FY 2026 guidance projects strong revenue and earnings growth, with a focus on leveraging AI to drive client value and operational efficiency.

• AI strategy aims to expand offerings, enhance client outcomes, and optimize internal operations across all segments.

Financial highlights

• Q4 2025 RBR was $432.3M, up 11.3% from Q4 2024; full-year RBR reached $1.66B, up 11.9%.

• Adjusted EBITDA for 2025 was $237.5M (14.3% of RBR), up from $201.2M (13.5%) in 2024; Q4 adjusted EBITDA margin improved to 15.7%.

• Net income for 2025 was $105M ($5.84 per diluted share), down from $116.6M ($6.27) in 2024, impacted by non-cash impairment and absence of prior-year litigation gain.

• Adjusted diluted EPS was $2.17 in Q4 and $7.83 for the year.

• Repurchased $166M in shares (6.6% of outstanding) and spent $112M on acquisitions.

Outlook and guidance

• 2026 RBR guidance: $1.78B–$1.86B (9.5% growth at midpoint); adjusted EBITDA margin expected at 14.5%–15%; adjusted EPS $8.35–$9.15 (12% growth at midpoint).

• Operating cash flow projected at $220M–$260M; free cash flow $180M–$220M.

• Healthcare RBR to grow low double digits; education mid-single digits; commercial low teens, with margin expansion expected in all segments.

• Committed to 15%–17% adjusted EBITDA margin by 2029.

• Guidance reflects continued demand, margin expansion, and impact of technology including AI.