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Summary of Huron Consulting Group Conference Call Company Overview - Huron Consulting Group (Ticker: HURN) is a consultancy firm focused on strategy, operations, digital transformation, and financial advisory services [2][3] - The company serves clients primarily in healthcare, education, and commercial industries, with over 50% of revenue from healthcare and approximately 32% from education in 2024 [4][5] Financial Performance - In 2024, Huron achieved a 9% year-over-year revenue growth and a 120 basis points margin improvement, leading to a 32% growth in adjusted EPS [5][6] - The healthcare and education segments experienced strong double-digit growth, while the commercial segment faced challenges due to economic uncertainties [6][7] - The company anticipates the commercial segment to be the fastest-growing area in 2025, with a 7% overall digital growth reported [6][8] Industry Dynamics - Huron is witnessing a record pipeline in healthcare and education despite regulatory pressures and financial strains in these sectors [7][8] - The company positions itself as a trusted advisor, helping clients navigate financial pressures and improve performance [8][9] - The healthcare and education industries are undergoing significant regulatory changes, creating ongoing demand for consultancy services [20][21] Strategic Focus - Huron's strategy emphasizes leading positions in U.S. healthcare and higher education, with a focus on performance improvement and digital transformation [9][10] - The company aims to expand its capabilities in commercial industries such as financial services, industrials, and energy [12][14] - Huron plans to achieve low double-digit annual growth over the next five years, with expectations of organic growth in the mid to upper single-digit range [17][18] Margin and Cash Flow Management - Huron targets a margin increase to the 15% to 17% range over the next five years, with a current margin guidance of 14% to 14.5% [18][19] - The company has a strong free cash flow conversion rate, typically converting 75-80% of adjusted EBITDA to free cash flow [17][29] - Capital allocation strategy includes share buybacks and strategic tuck-in acquisitions, with a balanced approach expected over the next five years [29][30] Recent Acquisitions - Huron has made several acquisitions, including Eclipse Insights, Trilogy, and Wilson Perumal & Company, enhancing its capabilities in healthcare and financial services [32][34] - The acquisitions are aimed at strengthening Huron's performance improvement offerings and expanding its advisory services [33][34] Market Outlook - Huron is optimistic about its growth trajectory, citing increased demand for consultancy services in its core industries [41] - The company believes that the opportunities in healthcare and education are broad and will continue to grow, driven by ongoing market dynamics [21][30] Conclusion - Huron Consulting Group is well-positioned to capitalize on growth opportunities in its core industries, with a strong focus on performance improvement and digital transformation, supported by a robust financial strategy and recent acquisitions [30][41]

Core Insights - Huron has been recognized as a Best Firm to Work For by Consulting magazine for the fifteenth consecutive year, highlighting the company's commitment to employee satisfaction and empowerment [1] Company Summary - The recognition reflects Huron's dedication to creating a supportive work environment where employees feel valued and can make a significant impact [1]

Core Insights - A prediction by Huron Consulting Group indicates that up to 370 private colleges in the U.S. may close or merge in the next decade due to a continuous decline in student enrollment [1] - The projected closures are more than three times the number of nonprofit private colleges that closed in the previous decade, highlighting a significant trend in the higher education sector [1] - The decline in student numbers is attributed to a drop in birth rates starting in 2007, which has not reversed, with an estimated 13% decrease in graduates by 2041 compared to 2025 [1] Group 1: Current Trends and Predictions - Huron Consulting Group's analysis suggests that the impending closures and mergers will affect approximately 600,000 students and involve around $18 billion in endowment funds [1] - The report indicates that 430 institutions with over 1.2 million students and $134 billion in endowment funds are facing moderate survival threats [2] - The number of private nonprofit colleges that closed from 2010 to 2020 was 114, compared to only 59 in the previous decade, indicating a worsening trend [2] Group 2: Institutional Responses and Recommendations - Institutions are advised to develop plans to address enrollment challenges, such as diversifying student demographics through graduate programs, professional courses, and part-time offerings [2] - The urgency of planning is emphasized, with a warning that institutions with only three years of operational funding have less than a 50% chance of survival if they do not act early [2] - A recent study by the Philadelphia Federal Reserve suggests that a 15% sudden drop in college student enrollment could lead to an additional 80 college closures [2]

Core Insights - Huron Consulting Group reported adjusted diluted earnings per share (non-GAAP) of $1.89, exceeding analyst estimates by $0.10, while revenue (GAAP) was $402.5 million, aligning with expectations [1][2] - The company raised its full-year guidance, projecting improved revenue and adjusted profits [1][10] - Despite strong non-GAAP metrics, reported net income (GAAP) fell due to a one-time investment impairment [1][6] Financial Performance - Adjusted EBITDA increased by 8.8% to $60.6 million, while adjusted diluted EPS rose by 12.5% [2][6] - Reported net income (GAAP) dropped by 48.3% to $19.4 million compared to Q2 2024, and GAAP EPS fell by 46.3% to $1.09 [2][6] - Revenue growth was 8.3%, with Healthcare contributing $197.8 million (up 4.1%), Education at $129.3 million (up 5.3%), and Commercial segment revenue increasing by 28.2% to $75.4 million [5][6] Business Overview - Huron Consulting Group specializes in management consulting for healthcare, education, and commercial sectors, focusing on strategy, operations, technology, and digital transformation [3][4] - The company aims to expand its presence in healthcare and education while diversifying into commercial sectors like financial services and energy [4] Segment Performance - Digital revenue grew by 13.1% to $173.4 million, with utilization rates for Digital professionals reaching 77.8% [7] - The integration of AXIA Consulting contributed to revenue growth in the Commercial segment, although traditional consulting services faced volatility [8] Investment and Growth Strategy - Huron increased its revenue-generating headcount by 7.8% year over year and returned $133.9 million to shareholders through share repurchases [9] - The company extended its credit facility to $1.1 billion, enhancing its capacity for future investments [9] Future Outlook - Management raised full-year revenue guidance to between $1.64 billion and $1.68 billion and adjusted diluted EPS target to $7.30 to $7.70 [10] - Adjusted EBITDA margins are projected to be between 14.0% and 14.5% of revenue, reflecting confidence in core market execution and acquisition integration [10]

Core Insights - Huron Consulting (HURN) reported quarterly earnings of $1.89 per share, exceeding the Zacks Consensus Estimate of $1.79 per share, and up from $1.68 per share a year ago, representing an earnings surprise of +5.59% [1] - The company achieved revenues of $402.51 million for the quarter ended June 2025, matching the Zacks Consensus Estimate and increasing from $371.65 million year-over-year [2] - Huron Consulting has surpassed consensus EPS estimates in all four of the last quarters and has topped revenue estimates twice during the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.94, with expected revenues of $410.89 million, while the estimate for the current fiscal year is $7.39 on $1.62 billion in revenues [7] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Consulting Services industry, to which Huron Consulting belongs, is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Revenues before reimbursable expenses (RBR) grew 8% year-over-year, reaching a record high for the business [4][21] - Net income for Q2 2025 was $19.4 million, or $1.09 per diluted share, down from $37.5 million, or $2.23 per diluted share in Q2 2024 [23] - Adjusted EBITDA was $60.6 million, or 15.1% of RBR, compared to $55.7 million, or 15% of RBR in Q2 2024 [24] - Adjusted net income increased to $33.7 million, or $1.89 per diluted share, a 12.5% increase from Q2 2024 [25] Business Line Data and Key Metrics Changes - **Healthcare Segment**: RBR grew 4.1% to $197.8 million; excluding divested student education results, growth was 6% [25][26] - **Education Segment**: RBR reached a record $129.3 million, up 5.3% driven by strong demand for strategy and operations offerings [27][10] - **Commercial Segment**: RBR grew 28.2% to $75.4 million, driven by the acquisition of Akcea and strong demand for digital offerings [13][28] Market Data and Key Metrics Changes - The healthcare segment faces significant federal spending cuts projected to reduce Medicaid funding by over $1 trillion over the next decade, increasing the uninsured population by up to 10 million [6][7] - The education segment is experiencing heightened uncertainty due to potential declines in federal support for research grants and anticipated enrollment declines [10][11] Company Strategy and Development Direction - The company is focused on organic growth and strategic acquisitions to enhance its service offerings, particularly in healthcare and commercial segments [18][16] - Recent acquisitions, including Eclipse Insights and Trelliant, are aimed at strengthening performance improvement capabilities and expanding into risk management and compliance [9][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth due to strong client relationships and demand for consulting services, particularly in healthcare [5][18] - The company anticipates ongoing financial pressures for clients, which will drive demand for performance improvement and financial advisory services [42][43] Other Important Information - The company has increased its RBR guidance for 2025 to a range of $1.64 billion to $1.68 billion, reflecting a 12% increase at the midpoint compared to 2024 [17][33] - The effective tax rate for 2025 is expected to be in the range of 25% to 27% [24] Q&A Session Summary Question: Visibility in the current environment - Management noted that visibility has improved compared to earlier in the year, driven by stronger sales conversions and a clearer regulatory environment [40][42] Question: Temporary pause in digital transformation sales - Management believes the slower sales conversions in digital offerings are temporary, as clients focus on immediate financial stability [46][47] Question: Headcount growth and utilization rates - Headcount growth was primarily driven by managed services and recent acquisitions, with utilization rates at the top end of the expected range [55][62] Question: Impact of Medicaid funding cuts - Management highlighted their comprehensive performance improvement offerings that can help healthcare clients navigate the challenges posed by reduced Medicaid funding [72][74] Question: Details on the Trelliant acquisition - The acquisition is expected to enhance the company's capabilities in risk management and compliance, complementing existing services in financial services [75][76]

PART I – FINANCIAL INFORMATION This section presents the company's unaudited consolidated financial statements, management's discussion, market risk, and internal controls [ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section presents the unaudited consolidated financial statements, including balance sheets, statements of operations, stockholders' equity, and cash flows, along with detailed notes explaining the company's business, accounting policies, acquisitions, financial instruments, and segment information [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position at specific dates, detailing assets, liabilities, and stockholders' equity **Consolidated Balance Sheet Highlights (in thousands):** | Item | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :---------------- | | Total assets | $1,480,812 | $1,343,617 | | Total liabilities | $1,005,817 | $782,290 | | Total stockholders' equity | $474,995 | $561,327 | | Cash and cash equivalents | $61,011 | $21,911 | | Long-term debt, net of current portion | $643,165 | $342,857 | [Consolidated Statements of Operations and Other Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Other%20Comprehensive%20Income%20(Loss)) This section outlines the company's financial performance over specific periods, including revenues, operating income, net income, and diluted earnings per share **Consolidated Statements of Operations Highlights (in thousands, except per share amounts):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $411,755 | $381,017 | $815,896 | $744,402 | | Operating income | $45,654 | $59,403 | $78,386 | $79,324 | | Net income | $19,430 | $37,482 | $43,966 | $55,488 | | Diluted EPS | $1.09 | $2.03 | $2.42 | $2.96 | [Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) This section details changes in the company's equity over time, reflecting net income, share repurchases, and other comprehensive income - Total stockholders' equity decreased from **$561,327 thousand** at December 31, 2024, to **$474,995 thousand** at June 30, 2025[14](index=14&type=chunk) - Share repurchases for the six months ended June 30, 2025, totaled **$133,865 thousand** (**938,280 shares**)[14](index=14&type=chunk) - Comprehensive income for the six months ended June 30, 2025, was **$27,137 thousand**[14](index=14&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the cash inflows and outflows from operating, investing, and financing activities, indicating the company's liquidity and solvency **Consolidated Statements of Cash Flows Highlights (in thousands):** | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(26,780) | $(23,503) | | Net cash used in investing activities | $(70,080) | $(39,677) | | Net cash provided by financing activities | $135,804 | $68,726 | | Net increase in cash and cash equivalents | $39,100 | $5,497 | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the consolidated financial statements, covering accounting policies, acquisitions, and segment data [1. Description of Business](index=10&type=section&id=1.%20Description%20of%20Business) This note describes Huron's core business as a global professional services firm, its strategic focus, and its operating segments - Huron is a global professional services firm focused on creating strategies, optimizing operations, accelerating digital transformation, and empowering businesses[20](index=20&type=chunk) - The company operates under three segments: Healthcare, Education, and Commercial, and delivers services through Consulting and Managed Services and Digital capabilities[21](index=21&type=chunk) [2. Basis of Presentation and Significant Accounting Policies](index=10&type=section&id=2.%20Basis%20of%20Presentation%20and%20Significant%20Accounting%20Policies) This note outlines the accounting principles and policies used in preparing the unaudited consolidated financial statements, ensuring compliance with SEC rules and GAAP - The unaudited consolidated financial statements are prepared in accordance with SEC rules for Form 10-Q and GAAP, reflecting all necessary adjustments for fair statement[23](index=23&type=chunk) - Interim results are not necessarily indicative of results for a full year or any other interim period[23](index=23&type=chunk) [3. New Accounting Pronouncements](index=10&type=section&id=3.%20New%20Accounting%20Pronouncements) This note discusses recently issued accounting standards and their expected impact on the company's financial statements and disclosures - ASU 2023-09 (Improvements to Income Tax Disclosures) will be effective for annual reporting periods beginning December 31, 2025, and is expected to result in additional disclosures but no impact on financial position or results of operations[24](index=24&type=chunk) - ASU 2024-03 (Disaggregation of Income Statement Expenses) will be effective for annual reporting periods beginning December 31, 2027, and interim periods beginning fiscal year 2028, also expected to result in additional disclosures without financial impact[25](index=25&type=chunk) [4. Acquisitions](index=11&type=section&id=4.%20Acquisitions) This note details the company's recent business acquisitions, including the acquired entities, their segments, and preliminary valuations - Acquired Advancement Resources (March 1, 2025) and Halpin Partnership Limited (March 17, 2025), both included in the Education segment[27](index=27&type=chunk)[28](index=28&type=chunk) - Acquired Eclipse Insights LLC (June 24, 2025), included in the Healthcare segment, with preliminary valuations for assets and liabilities[29](index=29&type=chunk)[30](index=30&type=chunk) - Subsequent event: Acquired TVG-Treliant Holdings, LLC (July 11, 2025), an advisory firm for financial services, to be included in the Commercial segment[32](index=32&type=chunk) [5. Goodwill and Intangible Assets](index=12&type=section&id=5.%20Goodwill%20and%20Intangible%20Assets) This note provides information on the company's goodwill and intangible assets, including changes due to acquisitions and amortization expenses **Goodwill, net (in thousands):** | Segment | June 30, 2025 | December 31, 2024 | | :---------- | :------------ | :---------------- | | Healthcare | $507,360 | $453,528 | | Education | $151,059 | $144,564 | | Commercial | $80,651 | $80,651 | | Total | $739,070 | $678,743 | - Goodwill increased by **$60,044 thousand** in the first six months of 2025, primarily due to the acquisition of Eclipse Insights (**$53,832 thousand**) within the Healthcare segment[36](index=36&type=chunk) **Intangible Assets (Gross Carrying Amount, in thousands) as of June 30, 2025:** | Type | Amount | | :---------------------- | :----- | | Customer relationships | $58,558 | | Technology and software | $18,330 | | Trade names | $6,000 | | Customer contracts | $1,681 | | Non-competition agreements | $1,380 | | Total | $85,949 | - Acquired intangible assets of **$30.2 million** in the first six months of 2025, with **$26.9 million** related to Eclipse Insights (customer relationships and technology/software)[37](index=37&type=chunk) - Intangible asset amortization expense was **$4.3 million** for the six months ended June 30, 2025, up from **$3.3 million** in the prior year[38](index=38&type=chunk) [6. Revenues](index=13&type=section&id=6.%20Revenues) This note details the company's revenue recognition policies, disaggregated revenue data, and information on remaining performance obligations and contract balances **Total Revenues (in thousands):** | Period | 2025 | 2024 | | :----------------------------------- | :------- | :------- | | Three months ended June 30, | $411,755 | $381,017 | | Six months ended June 30, | $815,896 | $744,402 | - Recognized **$12.8 million** (Q2 2025) and **$

[Financial Highlights and Business Overview](index=1&type=section&id=Financial%20Highlights%20and%20Business%20Overview) This section summarizes Huron's Q2 and YTD 2025 financial performance, operational highlights, and guidance [Second Quarter 2025 Financial Highlights](index=1&type=section&id=SECOND%20QUARTER%202025%20FINANCIAL%20HIGHLIGHTS) Huron reported record Q2 2025 revenues (up **8.3%** YoY), net income down due to impairment, adjusted EBITDA and EPS increased | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (in millions) | % Change | | :------------------------------------ | :------ | :------ | :----- | :------- | | Revenues before reimbursable expenses | $402.5 | $371.7 | +$30.9 | +8.3% | | Net income | $19.4 | $37.5 | -$18.1 | -48.3% | | Adjusted EBITDA (non-GAAP) | $60.6 | $55.7 | +$4.9 | +8.8% | | Diluted earnings per share | $1.09 | $2.03 | -$0.94 | -46.3% | | Adjusted diluted earnings per share (non-GAAP) | $1.89 | $1.68 | +$0.21 | +12.5% | - Q2 2025 net income and diluted EPS were unfavorably impacted by an **$8.2 million** non-cash impairment charge (net of tax) related to a convertible debt investment, which had a **-$0.46** impact on diluted EPS[3](index=3&type=chunk) - Q2 2024 results included an **$11.1 million** litigation settlement gain (net of tax), which had a **+$0.60** favorable impact on diluted EPS[3](index=3&type=chunk) [Year-to-Date 2025 Financial Highlights](index=1&type=section&id=YEAR-TO-DATE%202025%20FINANCIAL%20HIGHLIGHTS) For YTD 2025, revenues increased **9.7%**, net income decreased, but Adjusted EBITDA and diluted EPS showed significant growth | Metric | YTD 2025 (in millions) | YTD 2024 (in millions) | Change (in millions) | % Change | | :------------------------------------ | :------- | :------- | :----- | :------- | | Revenues before reimbursable expenses | $798.2 | $727.6 | +$70.6 | +9.7% | | Net income | $44.0 | $55.5 | -$11.5 | -20.7% | | Adjusted EBITDA (non-GAAP) | $102.1 | $89.5 | +$12.6 | +14.0% | | Diluted earnings per share | $2.42 | $2.96 | -$0.54 | -18.2% | | Adjusted diluted earnings per share (non-GAAP) | $3.57 | $2.89 | +$0.68 | +23.5% | - YTD 2025 net income and diluted EPS were unfavorably impacted by an **$8.2 million** non-cash impairment charge (net of tax) related to a convertible debt investment, which had a **-$0.45** impact on diluted EPS[3](index=3&type=chunk) - YTD 2024 results included an **$11.1 million** litigation settlement gain (net of tax), which had a **+$0.59** favorable impact on diluted EPS[3](index=3&type=chunk) [Other Key Highlights](index=2&type=section&id=OTHER%20HIGHLIGHTS) Huron increased full-year 2025 guidance, amended its credit facility, returned **$133.9 million** to shareholders, and gained industry recognition - Huron increased its previous guidance for full year 2025, with revenues before reimbursable expenses expectations now in a range of **$1.64 billion to $1.68 billion** and adjusted diluted earnings per share expectations in a range of **$7.30 to $7.70**[9](index=9&type=chunk) - Huron returned **$133.9 million** to shareholders by repurchasing **0.9 million** shares of common stock for the first six months of 2025, representing **5.3%** of the company's common stock outstanding as of December 31, 2024[9](index=9&type=chunk) - Huron amended its credit facility on July 30, 2025, extending the maturity date to July 30, 2030, improving all-in pricing, and increasing total borrowing capacity to **$1.1 billion**[9](index=9&type=chunk) - Huron was named one of America's Best Mid-size Companies by Time magazine and a Best Firm to Work For in 2025 by Consulting Magazine[9](index=9&type=chunk) [Detailed Financial Performance](index=2&type=section&id=Detailed%20Financial%20Performance) This section details Huron's GAAP and non-GAAP financial results for Q2 and YTD 2025, including operational metrics [Second Quarter 2025 Results](index=2&type=section&id=SECOND%20QUARTER%202025%20RESULTS) Huron's Q2 2025 saw revenue growth, but GAAP net income and diluted EPS declined due to non-recurring items, while adjusted metrics improved [GAAP Financial Performance (Q2)](index=2&type=section&id=GAAP%20Financial%20Performance%20(Q2)) This subsection details Huron's Q2 2025 GAAP financial results, highlighting revenues, net income, diluted EPS, and EBITDA | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (in millions) | % Change | | :------------------------------------ | :-------------------- | :-------------------- | :----- | :------- | | Revenues before reimbursable expenses | $402.5 | $371.7 | +$30.9 | +8.3% | | Net income | $19.4 | $37.5 | -$18.1 | -48.3% | | Diluted earnings per share | $1.09 | $2.03 | -$0.94 | -46.3% | | EBITDA | $44.3 | $66.3 | -$22.0 | -33.2% | - Q2 2025 revenue growth includes **$13.1 million** of incremental revenues before reimbursable expenses from the acquisition of AXIA Consulting in December 2024[6](index=6&type=chunk) - Net income and diluted EPS were significantly impacted by an **$8.2 million** non-cash impairment charge (net of tax) in Q2 2025 and an **$11.1 million** litigation settlement gain (net of tax) in Q2 2024[7](index=7&type=chunk) [Non-GAAP Financial Performance and Operational Metrics (Q2)](index=3&type=section&id=Non-GAAP%20Financial%20Performance%20and%20Operational%20Metrics%20(Q2)) This subsection presents Huron's Q2 2025 non-GAAP financial metrics and operational data, including Adjusted EBITDA and utilization rates | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (in millions) | % Change | | :------------------------------------ | :------ | :------ | :----- | :------- | | Adjusted EBITDA | $60.6 | $55.7 | +$4.9 | +8.8% | | Adjusted EBITDA as % of RBR | 15.1% | 15.0% | +0.1% | - | | Adjusted net income | $33.7 | $30.9 | +$2.7 | +8.8% | | Adjusted diluted earnings per share | $1.89 | $1.68 | +$0.21 | +12.5% | | Operational Metric (as of June 30) | 2025 | 2024 | Change | % Change | | :--------------------------------- | :--- | :--- | :----- | :------- | | Revenue-generating professionals (excl. Managed Services) | 4,963 | 4,604 | +359 | +7.8% | | Managed Services professionals | 1,918 | 1,244 | +674 | +54.2% | | Consulting capability utilization rate | 77.0% | 73.7% | +3.3% | - | | Digital capability utilization rate | 77.8% | 75.0% | +2.8% | - | [Year-to-Date 2025 Results](index=3&type=section&id=YEAR-TO-DATE%202025%20RESULTS) For YTD 2025, Huron achieved solid revenue growth, GAAP net income and diluted EPS impacted by charges, but adjusted metrics showed strong performance [GAAP Financial Performance (YTD)](index=3&type=section&id=GAAP%20Financial%20Performance%20(YTD)) This subsection details Huron's YTD 2025 GAAP financial results, including revenues, net income, diluted EPS, and EBITDA | Metric | YTD 2025 (in millions) | YTD 2024 (in millions) | Change (in millions) | % Change | | :------------------------------------ | :-------------------- | :-------------------- | :----- | :------- | | Revenues before reimbursable expenses | $798.2 | $727.6 | +$70.6 | +9.7% | | Net income | $44.0 | $55.5 | -$11.5 | -20.7% | | Diluted earnings per share | $2.42 | $2.96 | -$0.54 | -18.2% | | EBITDA | $78.6 | $95.2 | -$16.6 | -17.4% | - YTD 2025 revenue growth includes **$24.9 million** of incremental revenues before reimbursable expenses from the acquisition of AXIA Consulting in December 2024[12](index=12&type=chunk) - Net income and diluted EPS were significantly impacted by an **$8.2 million** non-cash impairment charge (net of tax) in YTD 2025 and an **$11.1 million** litigation settlement gain (net of tax) in YTD 2024[13](index=13&type=chunk) [Non-GAAP Financial Performance and Operational Metrics (YTD)](index=4&type=section&id=Non-GAAP%20Financial%20Performance%20and%20Operational%20Metrics%20(YTD)) This subsection presents Huron's YTD 2025 non-GAAP financial metrics and operational data, including Adjusted EBITDA and utilization rates | Metric | YTD 2025 (in millions) | YTD 2024 (in millions) | Change (in millions) | % Change | | :------------------------------------ | :------- | :------- | :----- | :------- | | Adjusted EBITDA | $102.1 | $89.5 | +$12.6 | +14.0% | | Adjusted EBITDA as % of RBR | 12.8% | 12.3% | +0.5% | - | | Adjusted net income | $64.8 | $54.2 | +$10.6 | +19.5% | | Adjusted diluted earnings per share | $3.57 | $2.89 | +$0.68 | +23.5% | | Operational Metric (as of June 30) | 2025 | 2024 | Change | % Change | | :--------------------------------- | :--- | :--- | :----- | :------- | | Revenue-generating professionals (excl. Managed Services) | 4,963 | 4,604 | +359 | +7.8% | | Managed Services professionals | 1,918 | 1,244 | +674 | +54.2% | | Consulting capability utilization rate | 75.6% | 72.0% | +3.6% | - | | Digital capability utilization rate | 78.0% | 74.6% | +3.4% | - | - Huron returned **$133.9 million** to shareholders in 2025 through repurchases of **938,280** shares of common stock, representing **5.3%** of the company's common stock outstanding as of December 31, 2024[15](index=15&type=chunk) [Segment Performance and Outlook](index=4&type=section&id=Segment%20Performance%20and%20Outlook) This section analyzes Huron's segment performance and provides the updated financial outlook for full year 2025 [Operating Industries Performance](index=4&type=section&id=OPERATING%20INDUSTRIES) For YTD 2025, Healthcare remained the largest segment (**50%** of revenues), followed by Education (**32%**) and Commercial (**18%**) | Segment | YTD 2025 Revenue Contribution | | :---------- | :---------------------------- | | Healthcare | 50% | | Education | 32% | | Commercial | 18% | [Outlook for Full Year 2025](index=4&type=section&id=OUTLOOK%20FOR%202025) Huron increased its full-year 2025 guidance, projecting higher revenues and improved adjusted diluted earnings per share | Metric | Full Year 2025 Guidance | | :------------------------------------ | :---------------------- | | Revenues before reimbursable expenses | $1.64 billion to $1.68 billion | | Adjusted EBITDA as % of RBR | 14.0% to 14.5% | | Adjusted diluted earnings per share | $7.30 to $7.70 | [Supplementary Information](index=4&type=section&id=Supplementary%20Information) This section provides context on non-GAAP financial measures, an overview of Huron, and disclosures regarding forward-looking statements [Use of Non-GAAP Financial Measures](index=4&type=section&id=USE%20OF%20NON-GAAP%20FINANCIAL%20MEASURES) Management uses non-GAAP measures to evaluate performance and provide outlook, believing they offer a clearer view of ongoing business; future guidance reconciliations are not provided - Management uses non-GAAP financial measures (**EBITDA, adjusted EBITDA, adjusted net income, adjusted diluted EPS**) to understand comparative operating performance, for financial and operating decision-making, public business outlook, internal management, and evaluating potential acquisitions and dispositions[19](index=19&type=chunk)[37](index=37&type=chunk) - These non-GAAP measures are believed to reflect the company's ongoing business in a manner that allows for meaningful period-to-period comparisons[19](index=19&type=chunk)[37](index=37&type=chunk) - Reconciliations of non-GAAP guidance to corresponding GAAP measures are not provided due to the inability to determine the probable significance of certain reconciling items that are outside the company's control and cannot be reasonably predicted[20](index=20&type=chunk) - Specific adjustments include excluding the **$11.7 million** net litigation settlement gain from 2024 and unrealized losses on long-term investments (**$11.9 million** for Q2 2025, **$16.1 million** for YTD 2025) as these are not indicative of ongoing business performance[37](index=37&type=chunk) [About Huron](index=5&type=section&id=ABOUT%20HURON) Huron is a global professional services firm partnering with clients to implement strategies, optimize operations, accelerate digital transformation, and empower businesses - Huron is a global professional services firm that partners with clients to create sound strategies, optimize operations, accelerate digital transformation, and empower businesses to own their future[21](index=21&type=chunk) - The firm achieves sustainable results by embracing diverse perspectives, encouraging new ideas, and challenging the status quo[21](index=21&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements regarding future results, subject to risks and uncertainties, with no obligation to update - Statements concerning the company's current expectations about future results are 'forward-looking' statements, identified by words such as 'expects,' 'anticipates,' 'believes,' 'estimates,' 'plans,' and 'guidance'[22](index=22&type=chunk) - These statements involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially, including failure to achieve expected utilization rates, inability to expand service offerings, dependence on client renewals, difficulties in integrating acquisitions, and general market downturns[22](index=22&type=chunk) - The company disclaims any obligation to update or revise any forward-looking statements as a result of new information or future events[22](index=22&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section presents Huron's consolidated financial statements, including operations, balance sheets, cash flows, and detailed segment operating results [Consolidated Statements of Operations and Other Comprehensive Income (Loss)](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20OTHER%20COMPREHENSIVE%20INCOME%20(LOSS)) Consolidated statements show decreased net income for Q2 and YTD 2025 due to non-recurring items, while revenues increased | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues before reimbursable expenses | $402,505 | $371,654 | $798,195 | $727,615 | | Total revenues | $411,755 | $381,017 | $815,896 | $744,402 | | Operating income | $45,654 | $59,403 | $78,386 | $79,324 | | Income before taxes | $27,708 | $52,095 | $49,160 | $69,655 | | Net income | $19,430 | $37,482 | $43,966 | $55,488 | | Net income per diluted share | $1.09 | $2.03 | $2.42 | $2.96 | [Consolidated Balance Sheets](index=7&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, total assets increased to **$1.48 billion**, driven by cash and goodwill, while liabilities rose and stockholders' equity decreased | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Total current assets | $490,441 | $409,117 | | Total assets | $1,480,812 | $1,343,617 | | Total current liabilities | $246,891 | $338,820 | | Long-term debt, net of current portion | $643,165 | $342,857 | | Total non-current liabilities | $758,926 | $443,470 | | Total liabilities and stockholders' equity | $1,480,812 | $1,343,617 | | Total stockholders' equity | $474,995 | $561,327 | - Goodwill increased from **$678.7 million** at December 31, 2024, to **$739.1 million** at June 30, 2025[26](index=26&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For YTD 2025, net cash used in operating and investing activities increased, while financing activities provided more cash, leading to a net increase in cash | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(26,780) | $(23,503) | | Net cash used in investing activities | $(70,080) | $(39,677) | | Net cash provided by financing activities | $135,804 | $68,726 | | Net increase in cash and cash equivalents | $39,100 | $5,497 | | Cash and cash equivalents at end of period | $61,011 | $17,646 | - Purchases of businesses, net of cash acquired, accounted for **$53.1 million** of cash used in investing activities in YTD 2025, compared to **$20.8 million** in YTD 2024[28](index=28&type=chunk) - Proceeds from bank borrowings were **$552.0 million** in YTD 2025, while repayments were **$251.9 million**[28](index=28&type=chunk) [Segment Operating Results and Other Operating Data](index=9&type=section&id=SEGMENT%20OPERATING%20RESULTS%20AND%20OTHER%20OPERATING%20DATA) This section details Huron's financial and operational performance across its segments and capabilities, including revenues, operating income, headcount, and utilization Revenues before Reimbursable Expenses by Segment | Segment | Q2 2025 (in thousands) | Q2 2024 (in thousands) | % Increase | YTD 2025 (in thousands) | YTD 2024 (in thousands) | % Increase | | :-------- | :---------------------- | :---------------------- | :--------- | :---------------------- | :---------------------- | :--------- | | Healthcare | $197,822 | $190,098 | 4.1% | $396,312 | $370,840 | 6.9% | | Education | $129,301 | $122,753 | 5.3% | $252,049 | $234,336 | 7.6% | | Commercial | $75,382 | $58,803 | 28.2% | $149,834 | $122,439 | 22.4% | | Total | $402,505 | $371,654 | 8.3% | $798,195 | $727,615 | 9.7% | Operating Income by Segment | Segment | Q2 2025 (in thousands) | Q2 2024 (in thousands) | % Increase | YTD 2025 (in thousands) | YTD 2024 (in thousands) | % Increase | | :-------- | :---------------------- | :---------------------- | :--------- | :---------------------- | :---------------------- | :--------- | | Healthcare | $59,651 | $55,246 | 8.0% | $115,967 | $97,940 | 18.4% | | Education | $32,329 | $30,792 | 5.0% | $55,389 | $52,748 | 5.0% | | Commercial | $12,507 | $9,015 | 38.7% | $23,803 | $23,054 | 3.2% | Revenue-Generating Professionals by Segment and Capability (at period end) | Category | June 30, 2025 | June 30, 2024 | % Increase | | :------------------------------------ | :------------ | :------------ | :--------- | | Healthcare | 1,329 | 1,223 | 8.7% | | Education | 1,169 | 1,115 | 4.8% | | Commercial | 2,465 | 2,266 | 8.8% | | Total (excluding Managed Services) | 4,963 | 4,604 | 7.8% | | Managed Services | 1,918 | 1,244 | 54.2% | | Total Professionals | 6,881 | 5,848 | 17.7% | | **By Capability:** | | | | | Consulting | 1,866 | 1,691 | 10.3% | | Digital | 3,097 | 2,913 | 6.3% | Utilization Rate by Capability | Capability | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :----------- | :------ | :------ | :------- | :------- | | Consulting | 77.0% | 73.7% | 75.6% | 72.0% | | Digital | 77.8% | 75.0% | 78.0% | 74.6% | [Reconciliation of Net Income to Adjusted EBITDA](index=12&type=section&id=RECONCILIATION%20OF%20NET%20INCOME%20TO%20ADJUSTED%20EARNINGS%20BEFORE%20INTEREST,%20TAXES,%20DEPRECIATION%20AND%20AMORTIZATION) This section reconciles GAAP net income to non-GAAP Adjusted EBITDA for Q2 and YTD 2025/2024, detailing specific adjustments | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $19,430 | $37,482 | $43,966 | $55,488 | | EBITDA | $44,307 | $66,293 | $78,555 | $95,174 | | Adjusted EBITDA | $60,579 | $55,684 | $102,070 | $89,502 | | Adjusted EBITDA as a percentage of RBR | 15.1% | 15.0% | 12.8% | 12.3% | - Key adjustments for Q2 2025 include **$11.9 million** in unrealized losses on long-term investments and **$3.6 million** in transaction-related expenses[34](index=34&type=chunk) - For Q2 2024, a **$(11.7) million** litigation settlement gain was adjusted[34](index=34&type=chunk) - Key adjustments for YTD 2025 include **$16.1 million** in unrealized losses on long-term investments and **$4.9 million** in transaction-related expenses[34](index=34&type=chunk) - For YTD 2024, a **$(11.7) million** litigation settlement gain was adjusted[34](index=34&type=chunk) [Reconciliation of Net Income to Adjusted Net Income](index=12&type=section&id=RECONCILIATION%20OF%20NET%20INCOME%20TO%20ADJUSTED%20NET%20INCOME) This chapter reconciles GAAP net income to non-GAAP Adjusted Net Income and Adjusted Diluted EPS, outlining tax-effected adjustments | Metric (in thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $19,430 | $37,482 | $43,966 | $55,488 | | Diluted earnings per share | $1.09 | $2.03 | $2.42 | $2.96 | | Adjusted net income | $33,665 | $30,946 | $64,772 | $54,200 | | Adjusted diluted earnings per share | $1.89 | $1.68 | $3.57 | $2.89 | - Total adjustments, net of tax, for Q2 2025 were **$14.2 million**, primarily driven by unrealized losses on long-term investments and transaction-related expenses[36](index=36&type=chunk) - Total adjustments, net of tax, for YTD 2025 were **$20.8 million**, primarily driven by unrealized losses on long-term investments and transaction-related expenses[36](index=36&type=chunk)

Core Viewpoint - The article emphasizes the importance of timing and sustainability in stock trends for successful short-term investing, highlighting that sound fundamentals and positive earnings revisions are crucial for maintaining momentum in stock prices [1][2]. Group 1: Stock Performance - Huron Consulting (HURN) has shown a solid price increase of 0.7% over the past 12 weeks, indicating investor willingness to pay more for its potential upside [4]. - Over the last four weeks, HURN's price increased by 12.1%, suggesting that the upward trend is still intact [5]. - HURN is currently trading at 93.9% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - HURN holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are key factors influencing near-term price movements [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for investors seeking stocks with strong fundamentals and upward price trends, with HURN being a notable example [3][8]. - The article suggests that successful stock-picking strategies should be backed by historical profitability, which can be tested using the Zacks Research Wizard [9].